brian horner, voluntary norfolk
DESCRIPTION
TRANSCRIPT
From supply led to demand driven: responding to a
changing environment for infrastructure support services
FUNDING – where it comes from
• 2004/5 – income £1m• 2010/11 – income £3.2m• Predominantly public sector funding but not
over-reliant on one funder• Joys and challenges of working in a 2 – tier
local government system
FUNDING – the strategy to date
• Deliberate focus on securing funding for discrete projects not increasing core funding.
• Pitching ideas to the public sector not competing with other voluntary organisations through tenders – “you could better support volunteers and voluntary organisations if you funded us to…..”
• Leading local partnerships where appropriate – Local Area Agreement, BASIS 1, BASIS 2, LINks, Working Neighbourhoods Fund, Safer Communities.
• Not wasting resources for limited return – ChangeUp• Combining clear strategic approach with
opportunism.
SO WHY DID WE NEED TO DIVERSIFY?
• Massive change agenda been coming for the voluntary sector for number of years. Nothing we’re seeing should be surprise.
• Speed of change – public sector funding cuts, different models, increased focus on personalisation, localism without the resources, public service reform bringing added challenges, increased focus on payment by results.
• Big Lottery consultation “Building Capabilities” part of that changing landscape
• Shopping list – collaboration, sharing services or merger.• Recognition that we wouldn’t be immune from funding reductions.• In this scenario have had long-term strategy
to reduce own reliance on publicsector-funding.
DIVERSIFYING OUR FUNDING
• Historic ad hoc approach to providing CRB service and payroll.
• Willingness by trustees and SMT to accept the need to diversify our sources of income – understanding the risks of change but also the risks of not taking action.
• Appointment of first Business Development Manager (2006) – brief to explore range of income generation activities.
• Trading to be the focus of activity.
FIRST STEPS
• Purchased business (not company) of established local HR and training company.
• Set up separate company owned by Voluntary Norfolk.
• Took over staff and contracts – focus on business continuity, reducing costs and duplication and integrating within existing Voluntary Norfolk activities but essentially low key approach.
CHALLENGES AND DISTRACTIONS
• Implementing the income diversification programme took longer than planned
– Changes of staff– Development of Hub and spoke model for Voluntary
Norfolk meant consolidation of number of offices and move to new resource centre
– Failed merger/takeover of another local infrastructure organisation
– Managing growth (£3.2m income, 100 staff)
A FRESH START• Developing a distinctive “offer” to the sector which built upon
strengths of Voluntary Norfolk.
• Getting the right people in place – Enterprise and Funding Development team.
• Getting external support – brand development and marketing plan, support from Business Link, Knowledge Transfer Partnership with Anglia Ruskin University.
• Constructing partnerships with small number of private sector companies to develop WIN-WIN-WIN proposition – needs to be trust and shared values e.g. HR Support and Employment Law Service.
• Launch of Charity BackRoom in 2011 – single point of access for back office services
NEXT STEPS
• Ensuring the “offer” is relevant and affordable for voluntary groups – listening to what groups say they need but realistic about the challenges ahead.
• Personal service – one stop shop not a call centre, flexible services, providing value for money, focus on benefits not features, develop brand loyalty.
• Additional services e.g. new health & safety service.
• Champions within staff and trustees of Voluntary Norfolk and amongst the wider voluntary sector – developing snowball effect.
• Collaboration with voluntary sector groups and networks beyond Norfolk – looking for mutual benefit.
IMPLICATIONS FOR DEVELOPMENT WORK
• Funding cuts – funders want numbers helped. Need to make most effective use of limited resources.
• Changing focus for development work – Helpdesk (telephone & email support), surgeries, workshops, events, training NOT in depth support for limited number of groups.
• Charging for services – managing projects on behalf, consultancy, part of funding bids.
• Work in progress.
WHAT HAVE WE LEARNT? WHAT ADVICE WOULD WE GIVE?
• Do not underestimate the time, energy and resources required to invest in a new trading venture – it’s not just about start-up funding. New trading ventures often don’t make profit in early days. Managing growth.
• Be clear about the services/products that you are going to deliver. Can you develop a niche? Are you confident that the quality of these is/will be on a par with or better than your potential competitors? Do you know who your potential competition is?
• Do your homework – just because the sector like what you offered when it was free doesn’t mean they will or can pay for it now. Is there a market for yourservice(s)?
• Understanding different kinds of partnerships: partnerships which facilitate access to services and markets (e.g. agreement with Community Matters) & partnerships for delivery (e.g. Health & safety, employment law). They must offer WIN – WIN.
• Developing the right partnerships for you – don’t accept the offer if it isn’t one that adds value to what you do. Importance of trust and shared values.
• Don’t be afraid of change e.g. changed insurance supplier & jobs partner.
• What’s uncertain? – the potential size of the market & how quickly it might develop, how willing is the sector to change/changing attitudes, how much risk can we afford to take, impact of further funding cuts on group’s ability to pay.
• Before you start the journey be clear about why you’re wanting to do this before considering the what and the how.