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Beyond partnership - beyond profit

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presentation by Dai Powell, Chief Executive, HCT Group

presentation by Dai Powell, Chief Executive, HCT Group

Published in: Technology, Business

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  • 1. Beyond partnership – beyond profit Dai Powell Chief executive, HCT Group 9 December 2011
  • 2. HCT Group: Origins
    • Founded in 1982 as Hackney Community Transport
    • “ To deliver social change through enterprise, empowerment and partnership”
    • In 1993 we won our first commercial transport contract
    • “ To be a sustainable social enterprise, we must also be an effective enterprise”
    • A business model for hundredfold growth
      • from a turnover of £202k in 1993
      • to a turnover of £28.1m in 2010/11
      • 700 employees and a fleet of 370 vehicles
    • Surpluses reinvested to support the core mission
  • 3. Our enterprise model
  • 4. Our social model
  • 5. A new model: Breaking barriers Barrier 1: Between teams
    • Change what success looks like
    • Sharing savings across boundaries
    Barrier 2: Between you & the community
    • Change the direction of information
    • Community designed services will surprise you
    Barrier 3: Between Statutory & non-statutory
    • What is the statute?
    • Who says it has to be delivered the same way?
    Barrier 4: Between assets & services
    • Change our expectations of what we use to deliver services
    • It’s a box with wheels and an engine
    • How can it do different things at different times
    Barrier 5: Between you & different stakeholders
    • If the community values it, can they deliver it?
    • Who pays?
    • What’s the role of the private sector?
  • 6. Contracting – the ideal
    • Working with a contractor should provide:
      • improved outcomes for communities
      • value for money
      • innovation in service design and delivery
      • accountability
      • trust
    • How easy has this been to achieve in reality?
  • 7. Beyond partnership
    • Too often, partnership is about managing competing objectives
    • Social enterprises share your values
    • They go to work for the same reasons you do
    • No competing requirement to create shareholder value
  • 8. The social enterprise advantage
    • Social enterprises:
      • compete in markets – value for money
      • are close to their communities – innovation
      • prize transparency - accountability
    • Relationships based on shared values mean:
      • real co-creation and co-design of services
      • more workable options for open book, profit share
      • opportunities to improve communities though reinvestment
    • “ Each of the 19 authorities we have ever worked with is still working with us today”
  • 9. Example A: contract flexibility
    • Local Authority A implements personalisation
    • Long-range block contract for transport
    • We believe in personalisation
    • Chose to ignore contract terms
    • Worked together with Authority A
    • Joint approach agreed to the benefit of the community
  • 10. Example B: Joint venture
    • Local Authority B seeks massive saving in transport costs
    • We have invited them to go into business with us
    • Profit and cost-saving shared
    • Business risk managed by us
    • Shared governance
    • Asset locked
    • Enables us to propose integrated solution
  • 11. Example C: Profit share
    • Authority C lets the whole network
    • Fierce price based competition at tender stage
    • The social enterprise advantage in action:
      • we split any profit from services 50/50
      • our portion is reinvested back into the community
      • their portion reinvested into service development
      • full open book to assure accountability
  • 12.
    • “ Social enterprises trade for a social purpose – which means they share your values”
    • Social enterprises:
      • compete on price
      • deliver at a high quality
      • innovate
      • are transparent and accountable
    • [email_address]
    • @dai_HCT