So you’re thinking about working with the competition...?

1. So you’re thinking about working with the competition...? www.adrianashton.co.uk

2. Activity Why bother working with others organisations? or... Anyone had experience of working as/under a lead partner, in a formal partnership, or an incorporated consortium? Adrian Ashton

3. Benefits of consortia • Better meet community needs through increased access to other resources and specialisms • Cut costs through shared overheads/buying • Stronger bids • Stronger campaigning/credibility • Reduce isolation and duplication Adrian Ashton

4. Different types of consortia (not just about service delivery) temporary campaigning Sharing good practice Joint projects (training, purchasing,...) Local networking informal formal Shared premises National association Shared 'back office' functions permanent Adrian Ashton

5. TRADING COLLABORATIONS • Different forms:- • Lead partner as accountable body with other partners • Partnership • Formal consortium • Organisations retain their independence – their own boards, own staff, own culture • But they bid, purchase or share together • Voluntarily agree to work together in the same ways – in order to survive • Savings may be less than in merging Adrian Ashton

6. WHEN TO COLLABORATE • Consider collaboration when:- • There is a real need for different organisations • But you do complementary work • You contract (some) services from the same commissioners • You can reduce costs for jointly buying, sharing or co-locating • You may be members of two or more collaborations for different things Adrian Ashton

7. Activity What makes a partnership work well? Adrian Ashton

8. Common barriers to collaboration Lack of trust Different approaches and methods Lack of shared vision and values Each partner unable to retain independence Frustration over time – how much is needed and how long it takes to generate results Adrian Ashton

9. Framework to develop a collaboration Understand what's in it for the other guys Be clear as to why you're the best people for them to partner with Think about impacts on staff/volunteers/beneficiaries (theirs and yours) Budget finance and time needed to develop and maintain the partnership Adrian Ashton

10. Structures for collaboration: Lead partner Prime contractor Merger Partnerships Special Purpose Vehicles SLAs Ongoing vs. time limited ... But we’ve very little time, so will focus on the ‘big 3’ Adrian Ashton

11. Lead (Prime) Contractor One organisation is responsible for performance, often referred to as the Accountable Body Responsible for overall project management and quality assurance Can be one or several sub-contractors Adrian Ashton

12. Lead partnerone member acts as contract holder on behalf of all Clear leadership Little administrative burden for overall partnership to establish and administer Easier to quality assure delivery Less transparency between members Potential ‘shutting out’ of members Higher risk and cost to lead partner Adrian Ashton

13. Partnerships A partnership can be structured as a General Partnership or a Limited Liability Partnership (LLP) and are often long term arrangements. Partnerships are formed when two or more people/organisations come together to partake in business activities with the aim of making a profit. Adrian Ashton

14. Formal partnershipdocumented agreements, processes, full participation of all in governance Transparent Shared responsibility = higher engagement (in theory...) More in keeping with sector values of inclusivity and mutual support Resource implications for members to participate Likely no consistent approach to contracts pursued re: financing, ITT, etc so varying quality Adrian Ashton

15. Incorporated consortium (SPV)a shared ‘philosophy’ but different legal forms All consortia are forms of co-operative • several bodies coming together to achieve what they could not alone, and for mutual benefit IPS (now Co-op Society) Charitable Company CIC LLP Adrian Ashton

16. Incorporated consortium (SPV)legal entity partners are members/owners of Protection of members’ risk Likely more credible with commissioning bodies Clearer lines of responsibility Easier to created shared ‘brand’ Cost to establish and administer Will need working capital to operate and cash-flow contracts in its own right Adrian Ashton

17. Which model is the best? • Risk • Control • Credibility with stakeholders • Capacity • Each organisations’ own governing documents Adrian Ashton

18. But whatever option is pursued... Need to clearly identify own interests, expectations and commitment able to make (aka ‘due diligence’) Should document agreements (MoU, Articles, SLA, contracts, etc) Accept that the ‘end destination’ may not be what you start out to create... Adrian Ashton

19. The Key Issues - Purpose of the collaboration Who will be members/partners Clarification of roles and responsibilities How will the collaboration be managed Finance - who pays the costs, shares the profits? Who owns Intellectual Property Rights? How will quality be assured? Dealing with disagreements and conflicts Adrian Ashton

20. For further guidance: • http://www.ncvo-vol.org.uk/advice-support/collaborative-working • http://www.charitycommission.gov.uk/detailed-guidance/working-with-other-organisations/choosing-to-collaborate-how-to-succeed/ Adrian Ashton