Transcript What it Takes to WIN!

What It Takes To Win
Paul Jansen - Director of Consulting
Win!
20th April 2015
Stepping-Out: Turning good public
services into great social businesses
Setting Out
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Executive mentoring
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Planning for growth
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Project management
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Investment readiness
‘Socialising’ the SE idea
with staff and other
stakeholders
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Support during contract
negotiations
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Leadership
development
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Powerful networks
Strengthening
management’s
confidence
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Social Value analysis
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Partner selection
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Interim management
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Finding social
investments
High-level feasibility
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Enterprise Readiness
Assessment
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Staying Out
Business Planning &
financial modelling
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Stepping Out
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Some of our clients
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Local Authorities
NHS
Probation
Social Enterprises, charities
Private Sector
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Health
Social Care
Environmental services
School catering
Probation
Libraries
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Why growth
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Looking ahead
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Winning at Leisure
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Conclusions
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Why growth
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Looking ahead
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Winning at Leisure
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Conclusions
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The spin out market
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More and more spin outs emerging: 100+ so far
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Delivering over £1bn of public services
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Where health dominated first,
now it’s LAs and Probation
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Many in adult social care
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MSP / Cabinet Office and ICRF
now closed for business
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How current spin outs are doing:
growth across the board
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Average annual
increase in turnover is 9%
Excludes achievements in year-1
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But, ‘turn-over is vanity’
*
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Average net
margin is 2.9%
* Net profit after tax / Turnover
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Origins of growth
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Substitution
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Direct provision (e.g. self-funders)
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New models of service:
› intrinsic innovation
› responsive innovation
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Why plan for growth?
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Reducing reliance on the one
main contract
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Making the most of market
opportunities: personalised
budgets, people with direct
payments, self-funders
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Meeting customers’ expectations
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Finding solutions for the
Commissioner
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As defensive strategy towards
competition
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How to plan for growth
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Why growth
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Looking ahead
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Winning at Leisure
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Conclusions
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Looking ahead: the Economy is
recovering
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Forecast GDP:
2015: +2.7%
2016: +2.4%
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Unemployment:
2015: 5.3%
2016: 5.0%
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Inflation (CPI):
2015: 0.8%
2016: 1.9%
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Are funding issues resolved then?
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‘Graph of Doom’ scenario emerging: social care now represents 35% of LA
spend compared to 30% in 2010/11
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Adult Social Care sees efficiency savings targets of 4.9% this year (on top
of 12% fall since 2010, plus absorbing 14% demand increase)
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NHS will be approximately £30 billion short of funds by 2021
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Better Care Fund (£3.8bn by 15/16) will only partly compensate for LA
shortfalls
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Impact of the elections
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Demographic pressures won’t go away
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The greatest demographic pressure in ASC comes from adults with a
learning disability (44 per cent of total demography pressure), followed by
older people (40 per cent).
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It costs over £400 million a year to continue to provide the same level of
service.
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Younger people coming through Transition demand and expect
personalised services tailored to their needs, 24/7.
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In areas of mental health, autism, dementia, these trends are also visible
and on the increase.
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People with long term conditions account for 50% of GP appointments, 70%
of inpatient hospital days and over 90% of social care spend, and they’ll be
a fifth more in the next decade.
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Market trends
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More competition and external provision in health and care: 20% of
community health services provided by private sector (up by 34%) - HSJ
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Personalisation now entering Health, underpinned by legal requirements
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More public sector services are commissioned in more areas, ending up
with more Third Sector providers
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A trend towards outcome-based contracts, including use of Payment by
Results elements
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Trends in contracting
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Why growth
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Looking ahead
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Winning at Leisure
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Conclusions
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Greenwich Leisure Ltd.
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Established in 1993
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Focused on leisure, sports and culture services
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2013: £133m turnover; 6,500 staff
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Recently introduced the ‘Better’ brand
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Clear vision, around Service, People,
Communities and Business
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£5m Social Impact Bond in
co-operation with Triodos
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GLL’s growth trajectory
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GLL’s growth trajectory (2)
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This is no soft and fluffy operation
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Solid operational delivery
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Stable executive team
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Stakeholder-led Board of Trustees
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Competitive terms & conditions for staff
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Above-average investment in staff training
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Dual income streams:
› From councils
› From individual customers
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Winning strategy
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Professional business development functions, aimed at:
› Winning contracts
› Persuading individual customers
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Solid data on performance AND social impact
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Compelling offer, which includes:
› Competitive price
› Investment in local facilities
› Improved local uptake of sports activities
› Social impact
› Offer to staff to join the membership
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Key lessons
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You CAN grow by winning contracts
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Growth takes time
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Decide on your key strengths and then: focus focus focus
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Be prepared to invest to grow
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Excellent execution is the essential basis for winning contracts
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Collect data routinely to evidence your performance and impact
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Be clear on what makes you different
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Why growth
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Looking ahead
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Winning at Leisure
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Conclusions
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Conclusions
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You are well-positioned to take on more of society’s challenges
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Growth will come from a variety of sources, and your business
model needs to be ready for that
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Winning contracts requires a good bid team…
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AS WELL AS an excellent business providing first-class services
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With the right focus, preparation, tools and training yours can be
a winning team too
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Thank you for listening
Contact me anytime
[email protected]
07866 741601
www.stepping-out.biz
Twitter @PaulSteppingOut
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