1. The Skylark Merger Framework 1 Charity Support Network Skylark The Skylark Merger Framework A four stage approach to mergers within the charity sector Guided by the Business Strategy determine a short-list of target merger candidates. Merger StrategyFeasibility Integration Planning Integration/ Execution Exploring the potential benefits and risks of merging. What opportunity would the merger deliver both parties? Are the charities’ cultures compatible? Detailed Integration planning: How will the charities come together? How will the transition be handled? Formal due diligence. Implement the agreed plan, review and measure associated short and long term benefits. Transition NewCharity to be fully up and running as ‘business- as-usual’. Joint agreement to pursue Agreement in principle of ‘Can’ they will come together GO/ NO-GO joint decision NewCharity fully up and running IIIIIIIV END OF STAGE MILESTONES Introduction A clear and agreed process, with outcomes and decision points defined at the end of each stage, provides an invaluable “route map” to help Boards of Trustees, Chairs, CEOs and senior staff navigate their way through a merger effectively and efficiently. The four main phases of The Skylark Merger Framework provide the key generic steps which can then be tailored to the specific circumstances of your merger. Stage

2. The Skylark Merger Framework 2 Charity Support Network Skylark Key Process StepsOutputs & Outcomes Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Implement the agreed plan, review and measure associated short and long term benefits. Transition NewCharity to be established and BAU at steady state. Establish the foundation for transformation and realising benefits of the merger. Stage The Skylark Merger Framework Stage IV: Integration/ Execution This stages undertakes TUPE consultation, establishes interim leadership positions and governance, delivers changes to governance, organisation, ways of working, technology, infrastructure and estates Leadership, Governance, Organisation, People & Culture and HR Service & Beneficiaries, Communications & Branding Financial & Commercial Facilities IT & Systems Project management & Service Continuity  Agreed Go/No Go decision  Transitioned organisation  Decommissioned Estate/Infrastructure  New financial/commercial mechanisms in place

3. The Skylark Merger Framework 3 Charity Support Network Skylark Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Stage The Skylark Merger Framework Stage IV: Integration/ Execution Project Management & Service Continuity Topics to Consider 1.Ensure the right people are recruited/aligned to the roles in the project and that people understand what they need to deliver and by when – be mindful of interdependencies between workstreams as delay in a deliverable could have drastic consequences elsewhere 2.Develop a “Go / No-Go” checklist (or set of checklists) to ensure a step in the process of integration does not happen without the appropriate components/conditions in place. It is helpful to develop a critical path, based on a set of these checklists along the project. 3.Maintain the regular drum beat for the project, keeping a frequent check on progress against plans, constraints, risks and issues; 4.Mitigate risks and resolve issues as they arise, ensuring there is appropriate action plan with owners and dates for completion; Tips – including supporting tools Effective project management requires investment in a good project manager, sufficient resources and management time Manage milestone, dependencies and risks. There is little value in managing progress and ongoing activities Outputs/Outcomes 1.Delivered Project against time, cost, quality & cost constraints 2.Managed risks, issues, assumptions and dependencies Integration workstream:

4. The Skylark Merger Framework 4 Charity Support Network Skylark Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Stage The Skylark Merger Framework Stage IV: Integration/ Execution Service & Beneficiaries Topics to Consider 1.Develop the new service model, aligned the NewCharitys vision and values – It would be ideal if this has already been completed in earlier stages of the process, in which case this is a good opportunity to check-in with service users, external stakeholders and staff to ensure it is still valid; 2.Develop single (new) brand for NewCharity – It would be ideal if this has already been completed in earlier stages of the process, in which case this is a good opportunity to check-in with service users, external stakeholders and staff to ensure it is still valid; 3.Develop physical and electronic communication about NewCharity. If existing flyers/websites/etc is to be used then ensure it has correct contact/address/etc details. Tips – including supporting tools Service continuity is the foundation of a successful integration Effective project management requires investment in a good project manager, sufficient resources and management time Outputs/Outcomes 1.New service model for NewCharity 2.Brand and associated templates/guidelines 3.Electronic and physical comms describing the new service Integration workstream:

5. The Skylark Merger Framework 5 Charity Support Network Skylark Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Stage The Skylark Merger Framework Stage IV: Integration/ Execution Leadership, Governance, Organisation, People & Culture and HR Topics to Consider 1.Ensure key stakeholders (Boards, Unions, Staff, Suppliers, Service users, etc.) understand the change, impact and benefits 2.TUPE Consultation will require HR specialist support and significant communication, especially if there is a potential for redundancies – note it is not advisable to implement a redundancy programme in parallel with TUPE; 3.Communicate new organisation structure and line reporting. Ensure line managers have adequate time to engage with people where there are significant changes in organisation 4.Develop new vision and strategy for NewCharity and ensure objectives are cascaded and set/aligned to this 5.Ensure new KPIs and reporting mechanism are established – perhaps consider a 1-2 month “shadow reporting” period to iron out any anomalies Tips – including supporting tools Establishing a shared vision, strategy and aligning objectives is the best foundation for success of NewCharity Ensure you plan communication early, ideally aligned to key milestone in the transition project Engage with staff and unions early, but ensure you have a consistent and coherent message Outputs/Outcomes 1.Completed TUPE consultation 2.Communication artifacts 3.New vision, strategy and aligned performance measures Integration workstream:

6. The Skylark Merger Framework 6 Charity Support Network Skylark Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Stage The Skylark Merger Framework Stage IV: Integration/ Execution Finance and Commercial Topics to Consider 1.Ensure contracts are novated to NewCharity or terminated with appropriate notice 2.Ensure new financial structure, budgets and financial processes are established and agreed with new organisation 3.Ensure there is a full register of assets with associated up to date HSE and compliance certification 4.Ensure any new premises and equipment have been purchased/leased and commissioned Tips – including supporting tools Outputs/Outcomes 1.New Budget structures and financial mechanisms in place 2.Sub-Contracts novated/started/terminated as required 3.Updated asset register Integration workstream:

7. The Skylark Merger Framework 7 Charity Support Network Skylark Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Stage The Skylark Merger Framework Stage IV: Integration/ Execution ICT & Infrastructure Topics to Consider 1.Remove access to systems (emails, etc.) not in use by NewCharity – consider continuing old email addresses, phone numbers and web pages for an interim period 2.Archive or destroy both physical and electronic records – be mindful of retention, archiving and data protection legislation. Establish processes for responding to reasonable requests for archived information. 3.Ensure everyone in NewCharity has appropriate access to NewCharity’s IT systems, telephony and technology (ie: phones, computers, etc) 4.Consolidate the networking and technology landscape to realise benefits from the merger Tips – including supporting tools Be mindful of archive and retention policies, which must align to Daat Protection legislation Outputs/Outcomes 1.All staff in NewCharity has appropriate technology, infrastructure and systems to deliver service Integration workstream:

8. The Skylark Merger Framework 8 Charity Support Network Skylark Merger StrategyFeasibility Integration Planning Integration/ Execution IIIIIIIV Stage The Skylark Merger Framework Stage IV: Integration/ Execution Facilities Topics to Consider 1.Develop a plan for adequate desks, meeting rooms, open spaces for informal meetings for the people in NewCharity. 2.Develop and implement a “physical move” plan – ensure it takes account of HSE and compliance regulation for physical moves and moving equipment. Ensure it is presents the least amount of disruption to operations 3.Develop a plan for exiting and decommissioning estate- note that some leases require the tenant to refurbish the occupied estate to the condition it was agreed in the lease. Hence there may be refurbishment costs post exit from the property. 4.Ensure any equipment that is no longer required is disposed of appropriately and within EU/Environmental Agency guidelines on waste disposal Tips – including supporting tools Delivering an estates refresh, where appropriate and financially viable, can be a useful way of visually marking the NewCharity and the new vision for the future. This is especially helpful if existing location is used. Outputs/Outcomes 1.NewCharity has occupied new estate 2.All assets have appropriate HSE and compliance certificates 3.Appropriate training delivered for new Estate 4.Old assets and property is decommissioned Integration workstream: