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: [email protected]
www.walescooperative.org
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