Business plan for 2007 to 2012 (Microsoft Word format, 1.2mb)
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Business plan for 2007 to 2012 (Microsoft Word format, 1.2mb) Business plan for 2007 to 2012 (Microsoft Word format, 1.2mb) Document Transcript

  • Salford Community Leisure Business Plan 2007 to 2012 Our mission To enable the community of Salford to promote the well being of its people through healthy recreation and physical activity 1
  • Contents Page 1. Preface 3 2. Foreword 4 3. Executive summary 5 4. Aims of the business plan 6 5. Setting the context/business description and purpose 6 6. PEST & SWOT analysis 7 7. Business vision, objectives and targets 8 8. Performance Management 10 9. Current market situation 10 10. Competitor analysis 11 11. Marketing strategy & Marketing plan 12 12. Key Operational requirements 13 13. Current financial requirements and financial forecasts 14 14. Management processes 15 15. Business risks 17 16. Further information 18 2
  • Preface Responsibility for managing the city’s leisure facilities, sports development programmes and sports events transferred from the City Council to Salford Community Leisure Limited (SCL) on the 1st October 2003. SCL was established as a community benefit society from this date. This is the second business plan for SCL and has several improvements from the first plan. Firstly the development of this plan has involved more people and there has been more extensive consultation and stakeholder involvement. Secondly the plan has clear and SMART (specific, measurable, achievable, realistic, time- bound) targets. Thirdly the plan includes the marketing plan, which was omitted from the first business plan. Finally the plan has been written in such a way that it is a “live” document that can be updated over the five-year period. 3
  • Foreword In the three years from the original business plan there has been a real momentum behind the organisation. There has been a huge capital investment programme in the facilities, including the new Salford Sports Village. This investment programme has delivered significant improvements to the quality of leisure facilities within the city. The Sport, Health & Community Leisure team have delivered a range of sports development programmes and activities, providing opportunities for pre school children to older people. These services have been at the heart of our communities. SCL has continued to deliver high quality sports events and although the City was unsuccessful in its bid to host the Triathlon World Championships in 2010, sports events remain a high priority for raising the City’s profile. The last three years have provided a strong platform for the organisation. We believe that this plan will promote healthier lifestyles, stronger, safer and more active communities, and will help to contribute to many of the city’s aims. The first business plan mentioned the need to ensure the partnership with the City Council was a strong one and based on achieving mutual aims and objectives. The strength of this partnership and understanding has contributed to the success of the first three years for SCL and remains an important priority for the future. 2012 will see this country host the Olympic and Para Olympic Games. The build up to these games and the legacy provides SCL with many opportunities. Not only do we hope that current Salford athletes will be competing but also that people of all ages will be excited and enthused, and get involved in sport. We know that we still have a lot to do to achieve our long-term ambitions. But we are delighted to welcome this Business Plan as an important step forward in creating a more active and healthy city with sport / physical activity at the heart of our communities. Stephen Hassall Mark Dutton Chief Executive Chair 4
  • Executive summary This business plan for the period 2007 to 2012 has been developed with a new approach. Whilst the plan is structured in the traditional format for business plans the information contained in its electronic format enables the plan to be a flexible and responsive document. The use of hyperlinks to other documents, strategies, plans etc enables readers to have access to a greater range of information and to be in a better position to understand in detail the future direction for SCL. In addition the links to documents, plans etc that are annual and/or able to be updated means that this business plan will remain a “live” document throughout its 5-year lifespan. However, the format also allows for a much simpler structure where everyone can clearly see the key elements of the plan, namely the aspirations/aims and financial information. This electronic document is supported by a short paper copy summary of the plan. This business plan for SCL covers the establishment of aims and a framework for action for the 5 years 2007 to 2012. The “swimming pool” diagram on page 10 explains in a simple and clear fashion the aims for SCL and its 5-year priorities. It also details the operational and financial requirements for the organisation. 5
  • Aims of the business plan The business plan identifies and describes: • The political, economic, social and technological environment in which SCL is operating. • The internal and external factors that might affect what SCL wants to achieve in the near future • The priorities that SCL is going to focus on to deliver its long-term strategic aims and goals. • The resources SCL will require to do these things • What income and grants SCL will require to be able to afford to meet its plans. Setting the context/business description and purpose Salford Community Leisure Limited was established as a community benefit society on the 1st October 2003 to manage and deliver sports and leisure services in Salford. The original statement of purpose for SCL was “to enable the community to promote the well being of its people through healthy recreation & physical activity”, and this was underpinned by a series of seven strategic aims. The organisation has made considerable progress since its inception and has exceeded the expectations contained in the first business plan. There has been a significant capital programme that has included the development of a new leisure facility, Salford Sports Village. The programmes of activities across the City have increased and consequently the level of sports participation, particularly for young people has risen. There have been several key infrastructure developments that have aided the service delivery. These include the introduction of a new management information system, the investment in marketing and the emphasis in performance management and monitoring. Five leisure facilities have Quest1 accreditation, as has the Sport, Health & Community Leisure team. The organisation performed well financially and after the first two and half years the following financial position shows how expectations have been exceeded: 2003/4 2004/5 2005/6 Cumulative (6 months) surplus Projected surplus £5170 £15,706 £8,321 £29,197 Actual surplus2 £71,000 £306,000 £179,000 £556,000 The reasons for this positive variance are largely due to improved performance by the services, particularly in controlling staffing costs through improvements to the management of casual staff, attendance management, and also increasing income (mainly through the fitness suites). The improved income position also 1 Quest is a leisure industry accreditation scheme 2 Does not include pension deficit 6
  • led to cash flow benefits, which resulted in larger investment interest than was originally predicted. The organisation is structured into three service delivery teams:  leisure management,  sport, health & community leisure  sports events, with a range of “head office/central” services supporting this delivery. Support services One of the key aims of the original business plan was to build the infrastructure to ensure that there were solid foundations established for the future. The support services are now more able to respond and provide the necessary support for front line services. The services provided include marketing, performance management and information, administration, finance and senior management. These support services and supplemented by services purchased through service level agreements. Services purchased through service level agreements: • Grounds maintenance • External & internal audit • Human resources & occupational health • Financial services • IT services • Health & safety • Legal services Not all these services are provided by the City Council. PEST3 & SWOT4 analysis A comprehensive PEST and SWOT analysis was carried out across the leisure management and sport, health & community leisure teams, which included staff from central/support services. Running through these were a number of key themes that can be categorised into three areas: • Employees were absolutely key to the business and were seen as both a strength and a weakness. There were also a number of external factors relating to employees that highlighted the need to concentrate attention on ensuring that the workforce is supported, nurtured and invested in. • Partnerships and communication were a key theme. The partnerships and effective communication with City Council directorates, schools and Urban Vision were all seen as critical factors for varying reasons (e.g. funding, building maintenance etc). Also the partnerships with governing bodies, sports clubs and the community, particularly through neighbourhood management, were highlighted as essential to the development of services. Crucially the communication and relationship between leisure management and the sport, health & community leisure teams was also raised as an area of concern that required future attention. • Funding and financial pressures were highlighted in many forms. The financial plan in this Business Plan aims to provide a longer-term financial picture that deals with many of the issues raised. 3 Political, Economic, Social & Technological 4 Strengths, Weaknesses, Opportunities & Threats 7
  • Business vision, objectives and targets There are a plethora of national, regional and local plans and strategies relating to sport and leisure. The list would be endless and also out of date during the lifetime of this plan. In order to simply these links we have kept this section short and highlighted just a small number of national, regional and local links. The main current national documents are Sport England’s “Game Plan” and the Department for Health’s “Choosing Health”. Regionally, Sport England’s North West Plan for Sport & Physical Activity “North West on the Move”. Locally the City’s Community Plan provides the framework and vision for Salford, centred on seven themes. The golden thread through these documents primarily relates to increasing participation and reducing inequality, with sport making a difference across many areas; crime/community safety, education, health/well being, economic impact/benefit. SCL has developed a new simpler framework that shows the vision, aims, outcomes and priorities. The “swimming pool” below highlights this 5-year vision for the organisation. The annual delivery plan is developed within this framework following an extensive consultation exercise with all stakeholders. Each annual delivery plan is therefore structured in this format and clearly identified the priorities for each year and how they contribute to the 5-year priorities. 8
  • Everyone active! To increase participation in To widen access and reduce sport and physical activity inequality in participation amongst priority groups 1 2 3 4 5 6 7 8 Communitiessafer and stronger Improving education and skills Developing sporting talent Organising sports events Improving the business Enhancing the sporting Ensuring Sports for All Improving health infrastructure Creating Developing Embed our Support the Working Ensure Improve the Controlling costs, Building the services within Salford School with the pathways are maintenance particularly staffing equity programme of the City’s Partnerships City Council in place for regime for costs and targets for health related neighbourhood and all Salford to develop people of all facilities. maximising income the priority courses/ management schools in the existing ages to reach potential of groups 5 into activities and community provision of sports their full Maximise facilities/services. our facility across the action plan curriculum and events and potential, capital and service City. approach. out of school to attract particularly investment Focus on measures. PE/sporting new events focusing on opportunities increasing the Develop To develop a opportunities. into the swimming & to replace Society Achieving 5 year physical comprehensive City. gymnastics. and/or membership and the Equality priorities activity learn to swim refurbish utilising this Standard for opportunities programme Maximise facilities. resource in the Sport. for children following the opportunities governance and older ASA’s National from the 2012 Provide arrangements for people. Plan for Olympics. support and SCL. Teaching resources to Swimming. assist the City’s voluntary sports clubs. Monitoring of Numbers of Participation Economic Numbers Different types Financial Participation specific children levels through impact of entering and of information. levels of projects, achieving KS2 the PESSCL major progressing accreditation priority including case standard on the survey & other sporting through the (including Society groups. studies. learn to swim surveys e.g. events. swimming and sports clubs) membership programme. Year 7 & Year gymnastics e.g. Quest, information. IFI6 usage. Participation 9. Event squads. Clubmark. levels. Monitoring of participation Staff absentee Racial and specific projects, Training for and Numbers of Satisfaction rates. Equality What we including case school staff. spectator athletes levels and Standard will studies. numbers. achieving customer measures. measure Participation county, feedback e.g. Monitoring of levels at after regional and Points of Community school clubs. national View, Mystery Action Plans. qualification. Guest visits, Non-user surveys. Backlog maintenance costs. Accident rates. 1 2 3 4 5 6 7 8 5 Priority groups are people with disabilities, women & girls, older people, black and minority ethnic communities, and people living in the most disadvantaged super output areas. 6 Inclusive fitness initiative. 9
  • Performance Management SCL has developed a comprehensive performance management culture that is based around the development of web actions7, the management information system8 within facilities and the introduction of a suite of performance indicators and targets. These PI’s are based on three key themes: o Participation o Equity o Corporate values Current market situation SCL carries out a large research programme to ascertain information on both users and non-users. This research programme highlights a number of key issues that drive business and marketing activity. Key issues for SCL to address in the forthcoming years are: o Addressing low participation rates and sports club membership in the Inner City. o Taking steps to reduce the drop off rates in schools, particularly for girls. o Increasing volunteering opportunities and developing the sports club structure, primarily in the inner City. o Embracing “sport for all” and ensuring that all the different communities in the City use the facilities. o Whilst membership retention levels are above the national average they do vary from site to site, and improvements to retention at the weaker sites will be important. The new management information system provides detailed information on usage at the facilities. Quarterly summaries and trend analysis of usage at facilities and customer breakdown is available. 7 “Web actions” is SCL’s work programme and action planning software developed in partnership with Eccles College. 8 Gladstone MRM Plus 2 10
  • Competitor analysis The competitor analysis is complicated by the proximity of Salford to Manchester and the fact that the prime national operators such as JJB, David Lloyd, Esporta etc have positioned themselves to access volumes of potential high-income earners moving in and out of the city. Salford does not have the extent of competition from these main players as neighbouring areas. This is partly due to the demographics and social characteristics of Salford, but also is due to the early investment and growth in SCL’s own fitness facilities. The inner city and east of the city currently do not have significant levels of competition for SCL from the private sector, although clearly the regeneration of central Salford will change the make up of that area and may well alter the market place for leisure providers. A more comprehensive competitor analysis is contained in the Marketing Plan. The development of new sports facilities in the Building Schools for the Future programme offers both an opportunity for SCL, but also may well provide competition if SCL does not manage these facilities for community use. At this stage it is hoped that SCL will be involved with the operation of these facilities and therefore these facilities will improve SCL’s range of community facilities and strengthen the position in this market. 11
  • Marketing strategy & Marketing plan In assessing the main business aims for SCL there is a clear marketing strategy to support these business aims. • Reach out and bring in new customers, particularly those people/groups under represented e.g. ethnic minorities, older people etc. • Focus on retaining existing customers and users. • Develop the “Leisure IN Salford” brand and SCL’s community profile. SCL produces an annual Marketing Plan that sets the direction each year and defines the priorities for the Senior Marketing Officer. A Marketing Group that has staff drawn from all operational parts of the organisation supports the Senior Marketing Officer in achieving the aims in the plan. 12
  • Key Operational requirements Facilities The new framework for the strategic development of leisure facilities outlines the key priorities for maintenance issues and for capital investment. This framework is supported by the Service Property Strategy for leisure facilities that is developed by the City Council, which provides more detailed information on current facilities and particularly on going maintenance issues. In addition SCL are working with Urban Vision and the City Council to produce a more detailed master plan for the future development of facilities. There are opportunities for SCL to expand the portfolio of facilities that is manages. This would provide potential economies of scale and also enable SCL’s services to reach out further into the communities of Salford. SCL will remain pro active in seeking out opportunities to extend the facilities that it manages. Staff Within Sport, Health & Community Leisure there remains a cohort of staff on fixed term contracts delivering innovative and important programmes of work across the city. These are particularly focused on disadvantaged communities and work around healthy lifestyles. In addition the extensive summer activity programme remains without core funding. SCL and its partners must strive to ensure this work continues and that funding resources are utilised to deliver these various initiatives and programmes. Partnerships As mentioned earlier the partnership with the City Council is crucial for SCL. This partnership, particularly through the links with the Community Health & Social Care Directorate is key to developing an effective commissioning framework and also in joint work on capital programme/projects. In addition partnerships within the broader cultural sector offer opportunities for joint work and possible co-location of services. There are a number of other key partnerships for SCL (this is not an exhaustive list). It is important that SCL works closely with partners to develop new and improved services that meet the demands of Salford’s communities. Partnership working has always been the main approach for sport, and particularly sports development. It is important that the maintenance and development of key partnerships remain a priority for SCL. These key partnerships include: • Salford Primary Care Trust • Salford District Sports Council • Community Committees through Neighbourhood Management Salford Sport & Physical Activity Alliance (SPAA) SCL will manage the Salford SPAA within the framework of its overall governance arrangements i.e. the Board. SPAA’s aim to link with local authorities, local strategic partnerships and other local providers of sports opportunities and channel investment into actions and initiatives to increase participation in sport and physical activity (Salford SPAA Action Plan). This investment will be based on an understanding of local needs and requirements and what will work best in 13
  • each community setting. Clearly this new “single system” for sport within the City will be an important area for SCL. Current financial requirements and financial forecasts The 5-year financial plan provides financial forecasts for the organisation. There are a number of assumptions behind the projections that are detailed within the financial plan. The plan once again is a cautious one and reflects the pressures SCL faces, particularly around increasing employee costs and rising utility bills. The headline figures are: FINANCIAL PLAN Summary of Income & Expenditure Type of Income / Expenditure 2007/08 2008/09 2009/10 2010/11 2011/12 Total Income 8,149,129 8,381,007 8,621,980 8,872,402 9,132,638 Total Expenditure 8,299,219 8,528,136 8,763,750 9,006,260 9,255,869 Cash Surplus (Deficit) - 150,090 -147,129 -141,770 -133,858 -123,231 Financing Interest on Balances 61,800 63,654 65,564 67,531 69,556 Trading Surplus (Deficit) -88,290 -83,475 -76,206 -66,327 -53,675 The plan is based on a number of key assumptions, and by their very nature have the possibility to change. The key assumptions are: • The financial plan is based on the business having a surplus of £250,000 by 2011/12 in line with the financial risk assessment plus £189,000 Salford Sports Village pitch provision after utilising part of the current £807,000 estimated cumulated surplus over this period. • Staffing costs increased by £100,000 for 2007/8 for the impact of job evaluation, with a 2.5% per annum for pay award and further 0.6% for employers pension contributions (equates to 1% as not all staff in local government pension scheme). • Gas costs have been increased by 100% from the 1st June 2006 in line with new contract. Electricity costs have been increased by 20% from the 1st April 2007 when contract was renewed. • General running costs, and energy costs above after initial increases, have been increased by 2.5% per annum. • Provisions for replacement of Salford Sports Village astroturf pitch replacement £27,000 per annum and repairs & renewals fund £30,000 per annum provided for. Assume Repair & Renewal fund will be utilised during the 5-year period. 14
  • • Sporting income has been inflated by 3% per annum and by a further 1.1% per annum due to increased participation and return on investment on the facilities. • Contributions and grants have been inflated by 2.5% per annum to fall in line with costs and assumption that current funding levels will be maintained. • Income from City Council purchase of service is increased by 2.5% per annum with further increases to cover additional employers pension contributions and increased energy costs. • Maintain current level of interest on investments with 3% increase per annum based on growth. Income There are a number of key factors to consider relating to projected income: • 1.25% increase in participation, as highlighted in Salford’s Local Public Service Agreement • growth in the fitness market and people paying direct debits (currently 5,500 people per month), and the need to focus attention on retention programmes • decline in income from traditional “dry” sport activities e.g. badminton, squash and five-a-side football • growth in the family market and the need to be able to respond with appropriate programmes and facilities • the City Council may further reduce its purchase of services as financial pressures mount on their budget. Expenditure There are a number of key expenditure pressures that provide significant challenges to the organisation. All of them are either variable or have elements of uncertainty. These issues are: • Implementation of the pay & grading review and the associated costs. Whilst SCL will have to meet the 2007/8 costs in full the City Council have intimated that they will assist from 2008/9 onwards. Potential future annual costs could reach £200, 000. • The short and medium term picture for utility costs remains uncertain. The recent large rises appear to have reached a plateau although there are still concerns regarding future rises. • Insurance costs have recently reduced as the markets have softened. Trends however point to a future hardening of markets and a subsequent significant rise in premiums in the medium to longer term. • SCL has successfully managed to invest in additional refurbishment and equipment. This investment has clearly made a difference in the quality of service provided. Customer expectations have risen and therefore levels of investment need to be maintained, particularly to protect retention of existing customers. Priorities This financial plan clearly shows the pressures SCL will be under in 2010/11 and beyond, with the organisation potentially running a deficit in future years. The further development of the organisation and the achievement of the key priorities will ensure that this plan changes over time to present a more favourable position. 15
  • Once again the key priorities for the future will be to: • Control staffing costs. However there are known additional pressures through increasing superannuation costs and costs from the implementation of the pay & grading review. The contribution from the City Council to these costs is a critical factor. • Reduce/control premises costs through energy efficiency measures, improved housekeeping and better maintenance regimes. This may include SCL taking more responsibility and control for maintenance. • Maximise income through retention programmes and new initiatives to attract new customers • Maintain the level of external grant funding, particularly to support community sport and health programmes Financial risk and reserves Following a comprehensive risk assessment carried out with support from the City Council, SCL maintain a minimum financial reserve of £250,000. This is maintained to ensure the society’s risks are covered. These risks include inflation exceeding targets, unforeseen expenditure or income shortfall and additional tax liabilities. 16
  • Management processes Board SCL’s Board consists of sixteen Board Members with two further co-opted members. The board’s composition reflects the community it services and includes community members, users, partners and staff. Management SCL has a well-established and experienced management team that have delivered improved services, sound financial management and effective change management. The Senior Management Team consists of the Chief Executive, Assistant Chief Executive, Head of Leisure Management, Head of Sport, Health & Community Leisure, Head of Finance & Support Services and support from a senior Human Resources Advisor (currently from the City Council). Staffing The organisation has nearly 450 employees9 operating from numerous sites throughout the city. This workforce is frequently praised in inspections and external assessment, and customers often highlight the friendliness of staff in their customer feedback. The opportunities for training and development have been strengthened by the appointment of a dedicated training manager and the formation of a cross service-training group to oversee the annual training plan. Health & Safety Health & safety is of paramount importance to SCL and this is reflected in the additional resources that will be going into this area. From the 1st April 2007 SCL will employ its own Safety Manager and Health & Safety Officer. The main focus of their work will be to ensure that the Health & Safety Plan is delivered and complied with. Infrastructure Since inception SCL has managed to build the support infrastructure to ensure that front line services have the necessary levels of support to enable them to effectively deliver quality services. The Human Resources support purchased from the City Council has improved and continuing this improvement remains a priority. The Finance team of SCL and the systems and processes that support this function are now well established. There will be further developments in this area to improve efficiency. Business risks The annual risk register for SCL highlights a number of key risks for the organisation. This register is updated on an annual basis. These risks have changed over the last three years and reflect the development of procedures and systems that mitigate some of these risks. The main risk SCL faces (highlighted red in the register) is centred on rising costs, and particularly increased utility costs. In addition SCL has a detailed Business Continuity Plan that has been developed in close partnership with the City Council. 9 This increases in the summer holiday period with additional staff taken on to deliver the Summer Activity programme. 17
  • Further information For further information please contact Salford Community Leisure Limited Tel: 0161 778 0380 / 0381 Email Address: scl.admin@salford.gov.uk 18