What It Takes To Win Paul Jansen - Director of Consulting Win! 20 th April 2015

2 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

3 Some of our clients ›Local Authorities ›NHS ›Probation ›Social Enterprises, charities ›Private Sector ›Health ›Social Care ›Environmental services ›School catering ›Probation ›Libraries

4 ›Why growth ›Looking ahead ›Winning at Leisure ›Conclusions

5 ›Why growth ›Looking ahead ›Winning at Leisure ›Conclusions

6 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

7 How current spin outs are doing: growth across the board ›Average annual increase in turn- over is 9% Excludes achievements in year-1

8 But, ‘turn-over is vanity’ * Net profit after tax / Turnover * ›Average net margin is 2.9%

9 Origins of growth ›Substitution ›Direct provision (e.g. self-funders) ›New models of service: ›intrinsic innovation ›responsive innovation

10 ›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?

11 How to plan for growth

12 ›Why growth ›Looking ahead ›Winning at Leisure ›Conclusions

13 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%

14 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

15 Impact of the elections

16 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.

17 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

18 Trends in contracting

19 ›Why growth ›Looking ahead ›Winning at Leisure ›Conclusions

20 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

21 GLL’s growth trajectory

22 GLL’s growth trajectory (2)

23 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

24 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

25 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

26 ›Why growth ›Looking ahead ›Winning at Leisure ›Conclusions

27 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

28 Thank you for listening Contact me anytime