What drives effective partnerships: a third sector view A commercial brain with a charitable heart Introduction Context of comments based on CDG’s 4 year journey An approach we have call “A commercial brain with a charitable heart” Allowing is to keep to our core values while being successful in a commercial environment

Current and future role Charities and all organisations must decide their role within employment and skills and not have it decided for them Is the contract itself meeting your charitable objectives or is part of a wider strategy (funding, expansion, etc.) Take control of the situation, don’t be controlled by it Start thinking next year about next round prepare trustees Give example of how we started planning three years ago – we took control (not withstanding WP results)

Be commercial In this new world A reality check - No one owes charities, private or public sector a living. The best performers will survive from any sector. Run a charity / volunteer Sector organisation like a business, Drive better performance than commercial competitors be more efficient so you can provide value for money Re-investable surplus that doesn't’t go to shareholders. Partnerships have to be commercial and contracted not helping the people you serve if you cut bad deals You know what is expected of you and what you can expect in return If it’s does look good walk away

Be charitable Stick to your core objectives and values avoid overstretch – does it matter if you operate in a few locations remember the people you serve at all times CDG through being commercial with our contractual delivery has Won a WP Prime Contract with reserves and financing in place Supported a supply chain with a broad range of Third Sector organisation in it (70% of our east London contract is delivered by the Third sector) Capacity building for Supply Chain members Investment in facilities within local communities Volunteer initiative Commitments to community reinvestment Doing more, going the extra mile.

Deciding on partnerships Third sector can therefore only know whether it can be engaged in an effective partnership when it has worked out how to combine a commercial brain with its charitable heart. Effective partnerships will not work for a charity if not reached that point (first base) Be commercial Agree a strategy Go for the win – win Don’t just look at the market share offer, look at the whole partnership package.

Effective partnerships “The third sector is not a free lunch” (Milton Freidman) While correctly expecting third sector providers to perform, then prime contractors (commercial or not) must: realise charities (third sector) need to have commercial viable operations. while reputationally good to have third sector at tier 2 or 3, don't expect them to necessary do more than a commercial partner – they are not necessarily a free service remember why you want to create a partnership with them - not window dressing must be delivery Talk about Maximus Alliance

CDG partnership framework Stage one Expression of interest Assessment against CDG minimum requirements Acceptance onto framework Stage two Contract-specific applications Review against requirements for contract Stage three Formal partnership negotiations CDG Partnership framework Stage One: Completion of CDG’s Standard Expression of Interest (EOI) Form. Partners who pass CDG’s minimum requirements will be entered onto CDG’s Partnership Framework. Stage Two: Completion of a Contract Specific Application Form. Partners will need to complete a specific application form for each new tender opportunity. Stage Three: If a partner’s Contract Specific Application Form is successful, Progress to partnership negotiations with CDG. You don’t have to partner with everyone – it weakens your position and you may hand the prime contract to someone you don’t want to work with. Look for the best deal.

Current delivery partners Other Work Programme prime contractors Work Programme supply chain partners Employers Skills and training providers Support organisations Volunteers

Conclusions and challenges Third sector - know thyself, decide for your self and be commercial and charitable Commercial sector - third sector are not a free lunch Partnerships take time and should not be rushed. Start now, don’t wait until the next bidding round comes out. Act maturely to create win: wins If you are a charity - Act with a commercial brain with a charitable heart - best of both worlds 9