“The best continuing professional development that you are likely to encounter; it focuses the mind on what your business is really about.” - Sally Butcher, Director
Introduction to Realise Futures
Realise Futures provides products and services that create opportunities for people to succeed in work, learning and life. Realise Futures is one of the largest Social Enterprises in the East of England, with a £12.5 million turnover and employing over 440 people, 40% of whom have a disability. Realise Futures was previously part of the Suffolk County Council’s Adult and Community Services and is the result of long journey that started by bringing together a number of key services for adults in Suffolk. Cabinet approval for the externalisation of Realise Futures under the Right to Provide Initiative was given in March 2012 and became wholly independent as a Community Interest Company (CIC) and public service mutual in November 2012.
There are four main divisions within Realise Futures: Learning and Development, Careers Solutions (delivering National Careers Service), Employment Services and Social Business (covering retail, manufacturing, fulfilment, catering and horticulture). All of our social businesses offer employment and opportunities to adults with disabilities or those that are disadvantaged. The services and social businesses combine to offer a holistic approach to individuals seeking support to return to work, maintain their employment, re-engage with training or seek to develop their employability skills. Our particular expertise is in helping those furthest from the labour market to re-engage with employment, learning and skills.
REALISE stands for: Real Employment And Learning Information Skills Enterprise
Reasons for spinning out as a public service mutual
The services and social businesses that comprise Realise Futures had been keen to pursue independence for some time and when Suffolk County Council articulated it’s agenda to become a commissioner, rather than a provider of services, a programme of divestment began. A key driver was the desire to free ourselves from the bureaucracy of a large organisation to develop an entrepreneurial and responsive culture. Cost benefits, including competitively priced HR, IT, legal and accounting services as well as the ability to earn income through trade and funding opportunities were also major incentives. A CIC model was selected as it reflected the values of the senior leadership i.e. a sense of social responsibility to the community but with a commercial mind-set. Active membership of and support from SEUK, confirmed the decision for this particular legal constitution.
Challenges and opportunities of the spin out journey
The process was extremely ‘time-resource heavy’. Senior leaders found themselves with, in effect, two full time jobs during the 15 month period. This was exacerbated by some gaps in knowledge from both parties.
Acquisition of knowledge you didn’t know you needed e.g. TUPE, Employment Law, VAT rules, Admitted Body Status for Pensions, cash-flow forecasting etc! This was both a challenge and an opportunity.
Staff engagement – this was the smoothest part of the divestment journey. The majority of staff understood the precariousness of providing services that were not statutory within a regime of sweeping budget cuts. At the same time, the opportunity to be relieved of the burden of local government remaining within an authority and to develop asset-sweating ideas.
How employee ownership works within Realise Futures
The membership of REALISE is drawn from its employees and our “limited by guarantee status” limits all members’ liabilities. An annual staff event, frequent staff-led newsletters and regular information events such as team briefings and social events form part of the ongoing membership involvement strategy. A staff council is in the process of being formed to ensure that all our members understand and have the opportunity to participate in the life of Realise Futures and understand decision making processes. This is particularly important as approximately 40% of company employees have some form of barrier to participation. Governance is comprised of a Board which includes the Chief Executive, a Director of Corporate Resources, four Operational Directors and three non-executive Directors. We are currently seeking further non-execs to provide additional scrutiny and support.
Benefits of the mutual model….
Employees
Our employees are involved in many of the decisions going forward. We believe communication should be two-way and that employees have the right to challenge the decisions made. Being transparent to our employees has been essential in the growth and innovation of Realise Futures. We believe it has made staff more motivated therefore productivity is greater. Staff live our mission, vision and aim – we work hard to make sure new staff are aware and are inducted to the service and its values.
Award winning service
Being able to enter awards as an independent company has supported our brand awareness across the country. Winners of the Trailblazing Social Enterprise award in 2014 – RBS 100 Index plus finalists at the British Chamber of Commerce awards in Sustainability and many other award recognitions has helped Realise Futures become a known name in the third sector. All levels of staff are involved in the award entries, attending the celebration evenings and taking part in filming.
Innovation and creativity unleashed
Staff at all levels are encouraged to submit ‘new ideas’ to the Senior Operational meetings; one idea, from a front-line member of staff at our Growing Places horticulture site has been to grow our Veg box service across a wider geographical area. This has resulted in increased orders and employment opportunities.
Proven social return on investment
A full independent SROI report was undertaken by Anglia Ruskin University earlier this year, focussing on the social businesses within the company. It found that the social return for every £1 invested in the company = £2.63.
Extra funding
We reached and exceed our government funded services targets in our first year. At a time when staff had gone through a lot of change and the company finding its feet in a new sector of trading, this was an achievement that surpassed our expectation but was down to teamwork and clarity of purpose. Our first Annual report comments on:
Our Employment team achieving 117% of their job outcome targets.
The Learning and Development team went from Notice to Improve to an Ofsted Grade 2 – Good within 16 months.
95,000 people across the Eastern Region supported by the Careers Solutions team
128 new jobs created in the first 18 months, predominantly within the social businesses.
We are able to set stretching, but realistic, targets that benefit each service and provide an excellent supportive environment to enable staff to achieve.
There have been many challenges along the way including a prime contract not being retained but also new opportunities and new contracts won.
Top tips when spinning out
- Persevere – it is a long and, at times, frustrating journey. Focus on the end goal;
- Be aspirational but realistic about what you will achieve and continually communicate that to all stakeholders and especially your staff teams;
- Undertake a rigorous due diligence process; the exercise of consideration of the variables involved is a healthy one even if you cannot or do not actually divest; and,
- Do your research, be clear about the market you are entering and determine your USP in that market.
Contact information
Realise Futures or email info@realisefutures.org