What It Takes To Win

Paul Jansen - Director of Consulting

Win!

20th April 2015

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Stepping-Out: Turning good public services into great social businesses

› High-level feasibility

› Enterprise Readiness Assessment

› ‘Socialising’ the SE idea with staff and other stakeholders

› Strengthening management’s confidence

› Business Planning & financial modelling

› Project management

› Support during contract negotiations

› Powerful networks

› Partner selection

› Finding social investments

› Executive mentoring

› Planning for growth

› Investment readiness

› Leadership development

› Social Value analysis

› Interim management

Setting Out Stepping Out Staying Out

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Some of our clients

› Local Authorities

› NHS

› Probation

› Social Enterprises, charities

› Private Sector

› Health

› Social Care

› Environmental services

› School catering

› Probation

› Libraries

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› Why growth

› Looking ahead

› Winning at Leisure

› Conclusions

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› Why growth

› Looking ahead

› Winning at Leisure

› Conclusions

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The spin out market

› More and more spin outs emerging: 100+ so far

› Delivering over £1bn of public services

› Where health dominated first, now it’s LAs and Probation

› Many in adult social care

› MSP / Cabinet Office and ICRF now closed for business

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How current spin outs are doing: growth across the board

› Average annual increase in turn-over is 9%

Excludes achievements in year-1

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But, ‘turn-over is vanity’

* Net profit after tax / Turnover

* › Average net margin is 2.9%

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Origins of growth

› Substitution

› Direct provision (e.g. self-funders)

› New models of service:

› intrinsic innovation

› responsive innovation

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› Reducing reliance on the one main contract

› Making the most of market opportunities: personalised budgets, people with direct payments, self-funders

› Meeting customers’ expectations

› Finding solutions for the Commissioner

› As defensive strategy towards competition

Why plan for growth?

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How to plan for growth

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› Why growth

› Looking ahead

› Winning at Leisure

› Conclusions

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Looking ahead: the Economy is recovering

› Forecast GDP:

2015: +2.7%

2016: +2.4%

› Unemployment:

2015: 5.3%

2016: 5.0%

› Inflation (CPI):

2015: 0.8%

2016: 1.9%

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Are funding issues resolved then?

› ‘Graph of Doom’ scenario emerging: social care now represents 35% of LA spend compared to 30% in 2010/11

› Adult Social Care sees efficiency savings targets of 4.9% this year (on top of 12% fall since 2010, plus absorbing 14% demand increase)

› NHS will be approximately £30 billion short of funds by 2021

› 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

› 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).

› It costs over £400 million a year to continue to provide the same level of service.

› Younger people coming through Transition demand and expect personalised services tailored to their needs, 24/7.

› In areas of mental health, autism, dementia, these trends are also visible and on the increase.

› 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

› More competition and external provision in health and care: 20% of community health services provided by private sector (up by 34%) - HSJ

› Personalisation now entering Health, underpinned by legal requirements

› More public sector services are commissioned in more areas, ending up with more Third Sector providers

› 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

› Looking ahead

› Winning at Leisure

› Conclusions

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Greenwich Leisure Ltd.

› Established in 1993

› Focused on leisure, sports and culture services

› 2013: £133m turnover; 6,500 staff

› Recently introduced the ‘Better’ brand

› Clear vision, around Service, People, Communities and Business

› £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

› Solid operational delivery

› Stable executive team

› Stakeholder-led Board of Trustees

› Competitive terms & conditions for staff

› Above-average investment in staff training

› Dual income streams:

› From councils

› From individual customers

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Winning strategy

› Professional business development functions, aimed at:

› Winning contracts

› Persuading individual customers

› Solid data on performance AND social impact

› 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

› You CAN grow by winning contracts

› Growth takes time

› Decide on your key strengths and then: focus focus focus

› Be prepared to invest to grow

› Excellent execution is the essential basis for winning contracts

› Collect data routinely to evidence your performance and impact

› Be clear on what makes you different

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› Why growth

› Looking ahead

› Winning at Leisure

› Conclusions

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Conclusions

› You are well-positioned to take on more of society’s challenges

› Growth will come from a variety of sources, and your business model needs to be ready for that

› Winning contracts requires a good bid team…

› AS WELL AS an excellent business providing first-class services

› 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

paul.jansen@stepping-out.biz

07866 741601

www.stepping-out.biz

Twitter @PaulSteppingOut