From supply led to demand driven: responding to a

changing environment for infrastructure support services

FUNDING – where it comes from

• 2004/5 – income £1m• 2010/11 – income £3.2m• Predominantly public sector funding but not

over-reliant on one funder• Joys and challenges of working in a 2 – tier

local government system

FUNDING – the strategy to date

• Deliberate focus on securing funding for discrete projects not increasing core funding.

• Pitching ideas to the public sector not competing with other voluntary organisations through tenders – “you could better support volunteers and voluntary organisations if you funded us to…..”

• Leading local partnerships where appropriate – Local Area Agreement, BASIS 1, BASIS 2, LINks, Working Neighbourhoods Fund, Safer Communities.

• Not wasting resources for limited return – ChangeUp• Combining clear strategic approach with

opportunism.

SO WHY DID WE NEED TO DIVERSIFY?

• Massive change agenda been coming for the voluntary sector for number of years. Nothing we’re seeing should be surprise.

• Speed of change – public sector funding cuts, different models, increased focus on personalisation, localism without the resources, public service reform bringing added challenges, increased focus on payment by results.

• Big Lottery consultation “Building Capabilities” part of that changing landscape

• Shopping list – collaboration, sharing services or merger.• Recognition that we wouldn’t be immune from funding reductions.• In this scenario have had long-term strategy

to reduce own reliance on publicsector-funding.

DIVERSIFYING OUR FUNDING

• Historic ad hoc approach to providing CRB service and payroll.

• Willingness by trustees and SMT to accept the need to diversify our sources of income – understanding the risks of change but also the risks of not taking action.

• Appointment of first Business Development Manager (2006) – brief to explore range of income generation activities.

• Trading to be the focus of activity.

FIRST STEPS

• Purchased business (not company) of established local HR and training company.

• Set up separate company owned by Voluntary Norfolk.

• Took over staff and contracts – focus on business continuity, reducing costs and duplication and integrating within existing Voluntary Norfolk activities but essentially low key approach.

CHALLENGES AND DISTRACTIONS

• Implementing the income diversification programme took longer than planned

– Changes of staff– Development of Hub and spoke model for Voluntary

Norfolk meant consolidation of number of offices and move to new resource centre

– Failed merger/takeover of another local infrastructure organisation

– Managing growth (£3.2m income, 100 staff)

A FRESH START• Developing a distinctive “offer” to the sector which built upon

strengths of Voluntary Norfolk.

• Getting the right people in place – Enterprise and Funding Development team.

• Getting external support – brand development and marketing plan, support from Business Link, Knowledge Transfer Partnership with Anglia Ruskin University.

• Constructing partnerships with small number of private sector companies to develop WIN-WIN-WIN proposition – needs to be trust and shared values e.g. HR Support and Employment Law Service.

• Launch of Charity BackRoom in 2011 – single point of access for back office services

NEXT STEPS

• Ensuring the “offer” is relevant and affordable for voluntary groups – listening to what groups say they need but realistic about the challenges ahead.

• Personal service – one stop shop not a call centre, flexible services, providing value for money, focus on benefits not features, develop brand loyalty.

• Additional services e.g. new health & safety service.

• Champions within staff and trustees of Voluntary Norfolk and amongst the wider voluntary sector – developing snowball effect.

• Collaboration with voluntary sector groups and networks beyond Norfolk – looking for mutual benefit.

IMPLICATIONS FOR DEVELOPMENT WORK

• Funding cuts – funders want numbers helped. Need to make most effective use of limited resources.

• Changing focus for development work – Helpdesk (telephone & email support), surgeries, workshops, events, training NOT in depth support for limited number of groups.

• Charging for services – managing projects on behalf, consultancy, part of funding bids.

• Work in progress.

WHAT HAVE WE LEARNT? WHAT ADVICE WOULD WE GIVE?

• Do not underestimate the time, energy and resources required to invest in a new trading venture – it’s not just about start-up funding. New trading ventures often don’t make profit in early days. Managing growth.

• Be clear about the services/products that you are going to deliver. Can you develop a niche? Are you confident that the quality of these is/will be on a par with or better than your potential competitors? Do you know who your potential competition is?

• Do your homework – just because the sector like what you offered when it was free doesn’t mean they will or can pay for it now. Is there a market for yourservice(s)?

• Understanding different kinds of partnerships: partnerships which facilitate access to services and markets (e.g. agreement with Community Matters) & partnerships for delivery (e.g. Health & safety, employment law). They must offer WIN – WIN.

• Developing the right partnerships for you – don’t accept the offer if it isn’t one that adds value to what you do. Importance of trust and shared values.

• Don’t be afraid of change e.g. changed insurance supplier & jobs partner.

• What’s uncertain? – the potential size of the market & how quickly it might develop, how willing is the sector to change/changing attitudes, how much risk can we afford to take, impact of further funding cuts on group’s ability to pay.

• Before you start the journey be clear about why you’re wanting to do this before considering the what and the how.