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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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In The Beginning; The Rochdale Pioneers

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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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CASA Organisational Structure

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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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People!

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Money!

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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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Raising Social Venture Investment;Normal Rules Still Apply

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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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Employee Engagement;How Can We All Act Like Owners

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Employee Engagement &The Great Game Of Business

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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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Where Does Profit Come From?

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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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The Bigger CASA Game

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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

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Further Information

0191 298 216007958 356 990guy@casaltd.comwww.casaltd.com