Who We AreWho We Are

• Set-up in 1982.

• Now the largest co-operative development agency in UK.

• Support and train co-operatives and social enterprises throughout Wales.

• Funded by: Welsh Government, European Union, Local Authorities & Consultancy fees.

Co-operative Consortia - Co-operative Consortia - The The OpportunitiesOpportunities

• Shared costs / pooling funding to buy services• Shared resources – staff / premises• Bulk purchasing• Increased brand recognition• Enhanced business efficiency & professionalism• Continuity and volume of supply• Shared skills and knowledge• Opportunities to share good practice and ideas• Greater presence in the market place & access to new markets • Ability to tender for large contracts – required scale• Peer support and creative exchange – mutually supportive

culture • Shared responsibilities and risks• Inter-trading • Add value to a procurement bid and help increase the chances

of winning a bid• Provides an infrastructure to explore other areas of joint activity

The Consortia Development Stages The Consortia Development Stages

Stage 1 Strategic Rationale

Stage 2 Identify Partners

Stage 3 Early Stage Planning – Joint Vision

Stage 4 Developing the Business Model

Stage 8 Review and Evaluation

Stage 5 Agree on the Structure of the Consortium

Stage 6 Legal Framework and Governance

Stage 7 Start Delivering

Joint Bidding GuideJoint Bidding Guide

• Developed by Welsh Government, Wales Co-operative Centre and WCVA.

• Aimed at both private sector businesses and social enterprises.

• Practical toolkit to aid the success of consortia bids.

• Guidance for both the supply and the buy side.

• Online resource: www.wales.gov.uk/jointbidding

Strategic PlanningStrategic Planning

• New money/opportunities?

• Diversification?

• Sustain existing revenue streams?

• Reduce expenditure?

• Consolidation?

• Survive?

Why Form a Co-operative Why Form a Co-operative ConsortiaConsortia

• Necessity – that is partnerships are mandated by law or regulation.

• Asymmetry – one party wishes to exercise control over another.

• Reciprocity – partners seek mutual benefit through cooperation.

• Efficiency – partners may gain more efficiency through cooperation.

• Stability – organisations can encounter less uncertainty through interaction.

• Legitimacy – organisations may obtain or enhance their public image through cooperation.

(Oliver, 1990)

Case Study – N. Wales Textile Recycling Consortium

• 6 social enterprises in North Wales looking recycling textiles collectively.

• Textile recycling has become a highly lucrative market.

• Better bargaining power with textile merchants if work together – can command a higher price fore textiles.

• Can also have more control of end use of clothing e.g. ethical markets.

• Aim to set up a textile recycling depot – creates jobs and training opportunities for people in N. Wales.

• Collectively bid for local authority recycling contracts.

Collaborative Working– Collaborative Working– When it When it goes Wronggoes Wrong

• Collaboration is often better described as “putting mutual loathing aside in order to get your hands on the money”

Alex Scott-Samuel

• Partnership working involves “the undefinable in pursuit of the unachievable”!

Powell and Dowling, 2006

• “Collaboration is like cottage cheese. It occasionally smells bad and separates easily.”

Thompson and Perry, 1998

Who Should You Work With?Who Should You Work With?

• No hard a fast rules

• Links to your strategy – what do you want to achieve?

• Geographic coverage v breadth of experience and service offering – or both?

• Size – do you need to partner with larger organisations to give you access to new markets?

• Just social enterprises??

Developing the VisionDeveloping the Vision• Recognition of the need to collaborate

• Clear understanding of everyone’s starting point

• Clear understanding of each partner’s respective goals – what are the common areas on which to hook a collective vision

• Clear understanding of each partner’s respective competencies.

• Be clear on people’s breaking points – no go areas

• Recognition of the need to compromise

• Clear on the culture you want to create

• Terms of reference – set out the framework for engagement and objectives

• Devise a work plan with timescales to meet expressed outcomes

• Be clear on how to resource early stage development

• Need to have the approval of the respective boards / trustees

Cilydd• Independent tea houses and

cafes in North Wales.• Share a common commitment

to an independent ethos. • Improve their approaches to

marketing, buying, training and quality standards whist retaining their own individual identities.

• Aim to create a unique tea and coffee culture for North Wales.

• Future aim – establish a co-operative roaster for members.

Task You are setting up a new Social

Enterprise consortium. What are the three most important matters to address in establishing your rules for the group?

Boundaries for EngagementBoundaries for Engagement• Purpose of the consortium• Principles• Decision making processes• Administration• Finance• Dispute resolution• Membership termination / changes• IP• Duration of agreement• Confidentiality / data protection• Trust

Procurement StrategiesProcurement Strategies• Understand the public sector’s potential requirements• Where do they operate from?• How do they procure? How often do they procure?• What is their procurement policy?• Do they work with other public bodies to aggregate

their buying into larger contracts or regional frameworks?

• Who are their current suppliers?• When do the current contracts run out?• Raise buyer awareness of your consortium• Update your marketing materials• Think through and explain your systems• Case studies and references• Upgrade your registrations.

The Consortia SpectrumThe Consortia Spectrum

Case Study – Three C’s Partners Services

• This is a consortium offering services such as cleaning services, catering services and local resources to the people in the Graig-Y-Rhacca and wider Caerphilly area.

• The consortium consists of one business – a cleaning business – and the resource centres of White Rose and Graig-Y-Rhacca.

• The members have come together to form a company which will employ a joint business development manager funded through the Social Enterprise Fund.

• The company is a company limited by Guarantee with the 3 members as legal Members.

Things That Can go Wrong Rushed planning and decisions at

start-up Non-compliance with legal

requirements Poor decision making Lack of financial control Lack of transparency Conflict and misunderstandings Member apathy Wasted time, money and other

resources People are not protected

Governance Issues to Consider

• One member one vote• Delegated powers• Consistent representation• Mediation of the different interests within the

consortium • Membership• Decision making• Document control• Quality management procedures & project

management

Legal ConsiderationsLegal ConsiderationsIssue Potential SolutionClear Understanding of the Relationship Between Consortia Members

Joint Working Agreement

Disclosing sensitive information

Non-disclosure Agreement

Collective Ownership of Assets

Creation of a TrustDeclaration of Trust Document

Ownership of Products / Services

Be clear on any potential Intellectual Property issues

Role of the Lead Body Managing Agent Contract

Legal ConsiderationsLegal ConsiderationsIssue Potential Solution

Delivery within a Lead Body Model

Sub-contract Agreement

Engaging with New Members

Accession AgreementMembership Prospectus

Ensure the Consortium is Recognised as Social Enterprise in its own Right

Socially Structured Memorandum and Articles of Association

Clarity on Role of Steering Group in Lead Body Model

Terms of Reference

Legal ConsiderationsLegal ConsiderationsIssue Potential Solution

Employing People Contracts of EmploymentHR Policies

Taking on Assets Lease / Freehold Agreements

Payment of Partners Internal Payment Schedule

Costs Open book information

Revenues and profits Joint working agreement

Our RoleOur Role• Advice on suitable business models, organisational

and legal structures• Advice and support with governance issues• Business and financial planning advice and support• Finding finance and helping to access grant funding

where appropriate• Support with HR issues • Support with developing important equalities

strategies and environmental management systems • Training and mentoring

Contact DetailsContact Details

Paul CantrillTel: 02920 556159

Mobile: 07917 844856Email: paul.cantrill@walescooperative.org

www.walescooperative.org