1. 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

2. 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)

3. 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

4. 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.

5. 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.

6. 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

7. 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.

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

9. 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