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CASA; Employee OwnershipScaleability, & Social Investment In The Social Care Sector
Dr Guy Turnbull,
Managing Director,
Care & Share Associates Limited
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Roundtable Purpose
• Understand The CASA Model of Employee Owned Social Care Provider
• Understand The Challenges Of Scaleability – How Do You Scale Social Enterprise Models?
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Key Performance Indicators
• Established 5 CASA Franchise Companies
• Delivery of 13,500 Hours Of Support Per Week
• Operates Across 5 Territories
• Developed innovative ‘social care products’
• Employ over 650 people
• Current run rate; £9m business/circa 600k PBT
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From Geographer To CASA’s Managing Director! The penny drops in 1988 – the power of mutualism
Public sector co-operative development worker (1991-95)
Founder & Director of Co-op consultancy, Economic Partnerships Limited (1995 – 2014)
Founder & Director of RED Initiatives & The Social Work Co-operative – both Co-operative CICs
Vice-Chair of Co-operative and Community Finance
Founder & (Managing) Director of Care & Share Associates Limited (CASA) – 2004 - present
Helped develop some of the most successful UK social enterprises around
Ghost writer of the first North East SE Regional Action Plan
Founder & Vice President of the European Social Franchising Network (ESFN)
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Co-operatives & Mutual Benefit
• Definition:
• A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.
• Values:
• Cooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.
• Principles:
• The cooperative principles are guidelines by which cooperatives put their values into practice.
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Why The Franchising Route?
Internal• Ideological – We want to change the world• Fun – we wanted new challenges• Innovative Response To Increased Cost Base/ Downward Pressure
On Price - No choice – grow or die! • We had an ‘offer’ - We had something good, tried and tested
External• Ideological Drive - Clear Growth Opportunities, But
Nothing Happening• Market Opportunity – Scary Demographics/Work force
challenges/Public Finance ‘chaos’
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CASA
Executive Team Dr Guy Turnbull Managing Director Karen Nutter Operations Director Shaun Jackson Compliance/Quality Director Margaret Elliott Chair Victoria Christie Finance Director
CASA Franchise Company
Shareholding
Licence Agreement
Support
Relationship
Governance
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Phases Of Development• 1976 – Little Woman
• Fun, Ideological, & Values Based
• Small loan/Sweat Equity
• 1993 – Sunderland HCA
• Fun, Ideological, & Values Based
• Small grant/Sweat Equity
• Contract – straight-forward/guaranteed
• 2004 – Care & Share Associates
• Fun, Ideological, & Values Based
• Sweat equity & Complex mix of grants and loans – Key Fund & CCF
• Contracts – Complex procurement process
• 2010 – CASA One
• Fun, Ideological, & Values Based meets quasi commercial investment
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Why CASA Is ‘Good To Scale’
• Strong track record & proven replication model, franchise manual & licence agreement
• An attractive ‘worked through’ social franchise ‘offer’
• Skilled, experienced, and ‘values-driven’ central management team
• Significant Market & Policy Opportunities
• A Unique Social Enterprise Proposition
• A Plan
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What we do
4 main groups of stakeholders:
• Service Users
• Staff
• Commissioners
• The wider community
CASA: Our Social Impact
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CASA Impact; Internal
Service Users• Continuity of support• Well trained & motivated staff• The ‘extra mile’
– ICOE Service
Staff• Share ownership• Investment in staff development• Transparency in terms & conditions
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CASA Impact; External
Commissioners• Transparency & Value For Money• Co-production & ‘Market Shaping’• Product Research & Development
Community• Job creation• Social Return On Investment – Evidence base for
wealth retention• ‘One off’ gifts
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Vision For The Future• Become a national provider through developing
new franchise companies and territories
• Consolidate and develop existing companies into CASA ONE
• Further diversification, including: • LIFE/self-directed support
• Extra Care
• End of Life
• Hospital admission avoidance through rapid response ‘domi care’
• Build the private/personalised market
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Facilitated Discussion
Key Success Factors:
• Entrepreneurship
• Finance
• Business Systems
• Employee Engagement
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Phases Of Development• 1976 – Little Woman
• Fun, Ideological, & Values Based
• Small loan/Sweat Equity
• 1993 – Sunderland HCA
• Fun, Ideological, & Values Based
• Small grant/Sweat Equity
• Contract – straight-forward/guaranteed
• 2004 – Care & Share Associates
• Fun, Ideological, & Values Based
• Sweat equity & Complex mix of grants and loans – Key Fund & CCF
• Contracts – Complex procurement process
• 2010 – CASA One
• Fun, Ideological, & Values Based meets quasi commercial investment
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Investment Requirement
• Objective – change up a gear
• £1m target
• A partner/fellow traveller
• Additional expertise/Fresh perspective
• Flexibility
• Shared Risk
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Campari & Soda
• Character
• Ability
• Market
• Purpose
• Amount
• Repayment
• Interest
• Security
• Organisation
• Debt/Equity
• Attitude
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Growth Challenges
• Identifying leaders & entrepreneurs
• Giving up control
• Act like owners!
• Wearing a suit/Getting a hair cut/Dog stays at home
• Is fast knee jerk?
• And what about social impact?
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Business Systems
• Care Free care mgt software
• Weekly dashboards
• Single brand
• ‘Live Files’
• Business Manual
• Manager forum
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The CASA Manchester Profit Bucket
• Pay tax
• Pay off debt
• Build a buffer
• Re-invest for the future
• Improve terms & conditions
• Pay A Bonus
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Back To The Levers
LEVER ROLES/Actions
Price Knowsley Council ContractCCGPrivateNew markets – Bank staff, prisons
Volume Say ‘YES’!Have the management capacity to deliver moreDevelop new products/marketsRecruit & retain staff
Overhead/Office Costs Keep tight control
Carer wages/costs Low staff turnoverStay competitive
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CASA Newcastle Mini Game
Improving You Private Parts
• Objective: Increase private client base
• Method: Carer distribution of POS material
• Rules: £25 bonus for every 10 hours of private work secured – triggered after first 4 weeks
• Communication: Scoreboard based in office
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What We Know Now
Social Enterprise Is A Movement Not A Legal Definition
Social Enterprises Are Run By Fellow Travellers
Mutuality Is More That Nice People Doing Nice Things
A Better Business Model
Needs To Realise Social Value
Social Enterprise Needs To Colonise Expanding Markets
Has Different Business Development Needs