Due Diligence of Social Enterprises Our Journey working with the SE Sector. Andy Hobart, MD Wates Living Space

Transcription

1 Due Diligence of Social Enterprises Our Journey working with the SE Sector Andy Hobart, MD Wates Living Space

2 Who are Wates Living Space One of largest family owned construction & services company Key Service provider in the Affordable Housing Market o More Homes; Better Homes; Energy Turnover of around 400m National Footprint Reshaping Tomorrows Communities at heart of our strategy

3 Wates Journey working with SEs Our Vision Every Wates project to employ one SE November 2011 March 2012 January 2013 June 2013 September 2013 November 2013 March 2014 Initiative presented by Young Talent SE Strategy developed and launched 3m traded with SEs Partnership with SEUK Launch of Social Enterprise Brokerage Winner of Buy Social Award 4.4m traded with SE s

4 Benefits of working with SEs COMMERCIAL Supports our work winning and demonstrates commitment to the Social Value Act Creates differentiation and an ability to sell the difference Boosts reputation and brand Reinforces the Wates CR Commitments Allows Wates to align its community activities with key clients SOCIAL Fits with Wates values Provides staff to transfer skills and expertise Clear social value to the local communities through employment & training opportunities Demonstrates commitment to SMEs & also local procurement

5 Our Engagement EMPLOY SEs AS SUPPLIERS Using the Social Enterprise Brokerage INFLUENCE, OR PARTNER WITH CLIENTS TO USE SEs Housing clients in particular are keen on involving SEs CAPACITY BUILDING SEs THROUGH WATES GIVING PRO BONO & SUPPORT Support to SEs through Wates leadership programmes

6 Our Success Over 4m Traded with social enterprises since 2012 Predominantly in service provision 30 plus Repeat Social Enterprises we use in our business Over 200 Part Time Jobs Created through our trading. SEUK estimate for every 25,000 traded 1 part time position is created Over 250,000 Given by Wates Giving to Social Enterprises for capacity building

7 Our Success

8 Improving our success further Simple one stop shop for sourcing Social Enterprise suppliers The Benefits Social Enterprise Brokerage Developed in partnership with SEUK Simple & Easy to Use Database All the SEs listed are approved to work with us National coverage Finder service provided by SEUK

9 What we have learnt COMPETITIVENESS Social Enterprises must be competitive LOCAL V NATIONAL Flexible offers which suit different needs / businesses MARKETING Sourcing SEs should be really simple. It s a big challenge for us! PROCUREMENT REQUIREMENTS SEs must still deliver against our validation systems OPPORTUNITIES EXIST The private sector is open for business and more companies recognise the value of trading with SEs. PARTNERSHIPS Key to success! Without SEUK we would not have achieved our aspirations

10 Our Vision One SE Supplier on every project Wates identify Community mini-projects and involve SEs Some SEs with scale support Wates nationally, or regionally on multiple sites An SE of our own in partnership or consortium with others? T I M E

11

12 Working with

13 Social Enterprise and Housing Conference and Exhibition 26 th March 2014

14 David Leeves Assistant Director Employment & Partnerships Tel: Mob:

15 S5. Due Diligence and Social Enterprise Do they deliver how can we tell?

16 Scope of the session Brief overview of due diligence process basic checklist Application to this work area proportionality and practicality Lessons learned Experience to date

17 Who we are - context One Housing Group Established in 2007 following 3-way merger Nearly homes across 26 London Boroughs and surrounding counties 7000 homes in development programme (2019) Own and manage Arlington in Camden as a mixed use facility with 6 social enterprises, training & conference centre

18 Where we work

19 Arlington 220 Arlington Road, Camden Opened in a long and rich history as a homeless hostel Transformed by OHG into mixed use facility bed spaces for homeless 34 rented apartments Training facilities & offices Conference centre for social enterprise partners offering catering, construction, media, cleaning and arts programmes

20 Due diligence: Q. Is it appropriate? Use of corporate sector process and language with the purpose of understanding Full picture = no surprises Understanding commercial activities financial legal Why do these principles apply to working with Social Enterprises? Structure to the process Risk management Cost control Performance management Customer service Reputation

21 A. yes

22 Basic SE DD checklist How is it set up? Who is behind it? How is it funded? Who else do they work with? What is their social mission? Community Interest Company (CIC), Charity, Limited Company? What experience do they have? Board members / Directors? Charitable funds, donations, contracts, proportions, published accounts, AGM minutes Check your networks, known history, ask for / get references. Do they deliver? Does it have one? Synergy, what s their track record, sector knowledge? Ask obvious questions

23 Follow up checklist Identify Verify What is their business? Specific business with you? Watch out Know who you are dealing with Where risks are high verify identities Appropriate activities and outcomes Can they deliver exactly what you want? What is their capacity? Take a cautious approach, don t get carried away, beware of suspicious activities or requests

24 Keep a sense of proportion Assess the risk values how much would you lose? What would the impact be? Service delivery, customer exposure organisational / personal reputation Accountability Customers, Boss, Board, Banks Partnership approach Offering reasonable support, making allowances depending on scale Think long term & making it succeed.

25 Putting safeguards in place Business footing how can we tell? Service Level Agreement, Partnership, Contract signed documentation, own pro-forma Key deliverables and timescales Outcomes, targets, milestones, payment dates - cash flow is king. Performance management KPI s, regular reporting and monitoring, agreeing changes, communication, clear termination process Social Value / SROI Agree methodology and values, useful dynamic, added value

26 Lessons learnt Start with a clear understanding from all parties Write it down but be flexible and patient. Don t imagine it s going to be easy Long term relationship ups / downs parting of the ways Use your business nous and experience Mostly well meaning people but be strong If it looks like a duck make sure it quacks like a duck.

27 Thank you any questions? David Leeves Assistant Director Employment & Partnerships One Housing Group Tel: Mob: