Business plan for 2007 to 2012 (Microsoft Word format, 1.2mb)Document Transcript
Salford Community Leisure
2007 to 2012
To enable the community of
Salford to promote the well
being of its people through
healthy recreation and
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
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.
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
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
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
Stephen Hassall Mark Dutton
Chief Executive Chair
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
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
Aims of the business plan
The business plan identifies and describes:
• The political, economic, social and technological environment in which SCL is
• 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
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
surplus £5170 £15,706 £8,321 £29,197
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
Quest is a leisure industry accreditation scheme
Does not include pension deficit
led to cash flow benefits, which resulted in larger investment interest than was
The organisation is structured into three service delivery teams:
sport, health & community leisure
with a range of “head office/central” services supporting this delivery.
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.
Political, Economic, Social & Technological
Strengths, Weaknesses, Opportunities & Threats
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
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.
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
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
physical comprehensive City. gymnastics. and/or membership and the Equality
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
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,
1 2 3 4 5 6 7 8
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.
Inclusive fitness initiative.
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 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
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
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.
“Web actions” is SCL’s work programme and action planning software developed in partnership
with Eccles College.
Gladstone MRM Plus 2
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.
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.
Key Operational requirements
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
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.
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
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:
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
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.
• 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
• 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.
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
• 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.
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
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
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
• 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
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.
SCL has a well-established and experienced management team that have
delivered improved services, sound financial management and effective change
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).
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
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.
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
In addition SCL has a detailed Business Continuity Plan that has been
developed in close partnership with the City Council.
This increases in the summer holiday period with additional staff taken on to deliver the
Summer Activity programme.
For further information please contact Salford Community Leisure Limited
Tel: 0161 778 0380 / 0381
Email Address: email@example.com