The Co-operative Commission – 10 years on Dame Pauline Green.

The Co-operative Commission – 10 years on

Dame Pauline Green

An auspicious launch?

What was happening in the world in 2000

• Tony Blair was Prime Minister

• Millennium Dome opens its doors – 1st Jan 2000

• Y2k – a damp squib!

• Microsoft releases Windows 2000

• Northern Ireland Peace Process sees new Assembly established

• Dot Com bubble bursts

• Russian submarine Kursk sinks with all hands in Barents Sea

• Sydney hosts the Olympic Games

• George Bush declared President by Courts a month after election

• Millennium Dome closes its doors – 31st December 2000!

The state of the Co-operative Movement in 2000

Key Statistics 2000

• Number of Retail Societies 46• Turnover of consumer co-operatives £9.6 bn• Return on capital employed 7.4%• Trading Profit (% sales) 2.6%

• Share of the retail market 6.8%

• Number of Members in Cuk 59

• Number of Federal Members in Cuk 4

Consumer Co-operatives 2000

And on to the Co-operative Commission

• Launched on the 24th February 2000

• 12 members from Labour Party, Trade Unions and Co-ops

• First meeting 29th February 2000

• Held public hearings across the country

• Took written evidence

• Published report in January 2001

• 60 recommendations directed to the Co-operative Group, Co-operatives UK and Government

And on to the Co-operative Commission

Focus:

1. What is the vision of the co-operative movement as we enter the new century – in terms of commercial objectives and social goals?

2. How close to delivering the vision are we?

3. What structures do we need to close the gap between the vision and the reality?

So where is the co-operative movement today

Key Statistics 2000 2011

• Number of Retail Societies 46 24• Turnover of consumer co-operatives £9.6 bn £16.1bn• Return on capital employed 7.4% 12.8%• Trading Profit (% sales) 2.6% 6.3%• Share of retail market food 2.5% 6.8%

• Number of Members in Cuk 59 671

• Number of Federal Members in Cuk 4 15

How have we fared against the recommendations?

The CRTG:

In 1993 when founded there were 4 members accounting for £2.2bn turnover, 30% of total Co-op volume through 740 stores

Today, 21 members, accounting for £7.5bn turnover, 100% Co-op volume through 4000 stores


New Ventures: the traditional consumer business – new business sectors:

The Co-operative Group’s public services mutual (launched last month)

schools


New Ventures: the growth of the Technology sector


New Ventures: the growth of the community sector

ViRSA


Societies now using the Group Membership card

• Midlands• Midcounties• Anglia• Southern• Chelmsford

= 85.6% of total membership


“The 1958 Commission report had been prescient in it its analysis and right in nearly everything it recommended and yet the movement had failed to implement it. That must not happen this time”

So what is the assessment of the impact of the Commission of 2000?


Progress Across the Board:-Recommendations were focused and largely the right ones.-Nearly all 60 recommendations have been adopted-Strong professional and lay leadership in the movement-Prevailing mood in the movement that change was crucial-Consolidation of the consumer movement -Unity of the wider movement in face of increasing challenge-Political and trading environment moved in movement’s direction-Impact of huge investment in public facing businesses -Power of advertising on values and principles-Massive growth of confidence of, and in the co-op model of business

So where now?

- the UK’s retail markets are some of the most sophisticated in the world and development potential is limited

- the movement has not been in such a strong position in the public, political and media consciousness for many decades

- the local, community renaissance of our model of business continues and in fact is boosted by the difficult economic circumstances.

- the changes in the UK movement are now being copied and adapted across the world eg brand, family unity, emphasis on principles etc

So where now?

- Continue to grow into new sectors of the domestic economyeg Group’s legal and advice serviceeg Midcounties energy business

- Public sector services?

- Current business sectors where public trust is low or has been lost?

- Seek business synergies or opportunities internationally?

- Explore opportunities to improve margins through C2C joint ventures or sourcing eg Group’s Chinese development.

So where now?

Co-operation in practice

Thank You

The Co-operative Commission – 10 years on Dame Pauline Green.

Documents

Transcript of The Co-operative Commission – 10 years on Dame Pauline Green.