Nacro
Paul McDowell, Chief Executive
30 November 2011
Who we are…
We are Nacro…
The
Crime Reduction
Charity
Nacro, the crime reduction charity
•
We are a team of more than 1,500 people, a
network of staff, volunteers and partners who
dedicate their lives to reducing crime and
changing lives in hundreds of communities
across England and Wales.
What we believe…
Our belief
•
We exist because of the devastating affect
crime has on individuals & communities. It
creates victims, shortens lives, divides
communities, builds fear & hostility, & stifles
opportunity.
•
Once you’re involved in crime, it can be difficult
to get out. Once you’ve been a victim of
crime, it can stay with you forever. But people
do have the capacity to change, and
communities can be brought closer together.
Our mission…
….reduce crime
change lives….
By reducing crime we change lives
By changing lives we reduce crime
When we succeed, everyone benefits:
•
victims and potential victims
•
the wider community
•
the economy
•
the person in trouble
-
their family
-
their children
-
people around them
Our values…
Our values
courage
• we take action
challenge
• we make people
think
care
• the impact we have
on individuals and
communities
matters
equality & excellence
• in everything we deliver
accountability
• we stand by the actions
we take and keep our
promises
inclusion
• we reach even the hardest
to reach
How we want to be
perceived…
How we want to be perceived
•
A charity with a compelling call to action to
reduce crime and change lives in communities.
So money follows mission.
•
The thought leaders in our field. We shape and
influence the agenda.
•
The ‘go to’ charity for commissioners who need
to reduce crime and change lives in local
communities.
How we want to be perceived
•
The charity where the brightest thinkers and the
most skilled practitioners want to work
•
A modern charity, ahead of its time, down to
earth and practical, growing and enterprising,
achieving the best outcomes with like minded
delivery partners
What we do…
What we do
•
We get involved and take action on the ground
wherever people and communities are in
trouble.
What we do
‘People in trouble’
•
young people who live in a high-crime
neighbourhood, have come to the attention of
the police, have poor academic attainment and
are excluded from school
•
adults who have entered the criminal justice
system, having been arrested for or convicted of
an offence/s
What we do
‘Communities in trouble’
•
high rates of: antisocial behaviour;
neighbourhood crime; drug and/or alcohol
misuse; or violence (including gangs, guns and
knives)
•
high proportions of arrest; conviction;
imprisonment; or prolific and other priority
offenders
What we do
•
We change attitudes & behaviours
•
We create opportunities for people in trouble to give
something back, make a positive contribution &
move on.
•
And by doing more of what we do, with more of the
people who need us, we show how we reduce
crime and change lives in more and more
communities
We intervene before, during and
after people are in trouble
Before
•
young people get into trouble, we get in early; steering
them away from drugs and crime, and creating new
opportunities.
During
•
prison and community sentences, with young people and
adults, we challenge them to stop, helping them cope
without turning to crime, and creating chances to give
something back and move on.
After
•
serving the sentence, with prisoners, we help them settle
back in the community, find a place to live and have the
chance of education, training and a job.
The focus of our work
Our strategic
priorities…
Our strategic priorities
We want:
•
to grow: working with more people in more places
•
more impact: demonstrating our success in
reducing crime and changing lives
•
more influence: the thought leaders in our field
•
to deliver: a reputation for best practice
Our strategic priorities
We need to be:
•
financially sustainable as defined by an operating
surplus that funds growth and sustainability
•
growing faster than our closest competitors
•
developing a strong supporter/donor base
•
delivering innovative, quality services that reduce
crime
Our strategic priorities
We need:
•
a strong brand: which clearly articulates who we
are, what we do and what we stand for
•
the right structure: fit for purpose with the right
people in the right places
•
positioning: with Government; in the media; in the
market & with donors
•
A strategic culture: analysing, planning and
intervening
Our strategic priorities
We need to improve capacity to:
•
plan and programme manage
•
communicate and engage externally and
internally
•
deliver local services on the ground
•
win big ticket as well as local contracts
•
balance small and local with large and national
Our strategic priorities
We need to develop:
•
expertise to intervene before, during and after
people are in trouble
•
new services in offender management and
resettlement as well as prevention and early
intervention
Our strategic priorities
•
Growth: winning new business & generating
voluntary income
•
Innovation: developing new products and services
•
Excellence: contract management performance
•
Voice and influence: challenging the status quo for
the benefit of the people we work with
•
Organisational competence : One Nacro
•
Diversity & Inclusion
•
Financial Management: sustainability
The changing landscape
•
Commissioning environment shifting
•
Public Spending Cuts/Recession
•
Mergers, acquisitions and market place
shrinkage
The changing landscape
•
We saw the same happen in the Housing
market place.
•
It is highly likely to be repeated in the criminal
justice market place
The changing landscape
•
But there are also significant opportunities
•
For instance payment by results (PBR)
•
What could PBR mean to voluntary sector?
Payment by results
•
What are the advantages of payment by results?
•
What are the implications for us all?
•
What are the complexities and difficulties?
•
Ironically, one of the biggest advantages of
Payment by Results is also the thing that makes us
cringe.
•
That it brings simplicity into an inherently complex
world.
Payment by results
•
Historically we put a great deal of energy into
reassuring our clients that our methodology
was sound
•
But found they were not overly concerned
about this
•
What they were interested in was whether or
not we delivered what we said we would deliver
- inputs
Payment by results
•
Under PBR those commissioning services, the
investors, will focus purely and simply on
outcomes.
•
The preoccupation with what is being delivered
and how it is delivered is left to the provider.
•
To win work and get paid down the line, the
provider will have to have programmes in place
which they believe, based on evidence, will bring
about the right outcomes.
Payment by results
•
Focus on outcomes – reducing crime, reducing
reoffending, securing jobs, securing safe
accommodation – puts partnership working on a
very different footing.
•
Those investing in the service and those providing
have to work together to define the outcomes,
making certain they are both realistic and
measurable and that they match risks and needs.
Payment by results
•
•
•
•
•
As in the business world, investors intervene.
They get involved to turn a situation around.
They ensure the focus stays on the outcomes.
They provide help and support, without getting
bogged down in managing the service
themselves.
Providers have to develop strong, coherent,
strategic and delivery partnerships which stand up
to rigorous scrutiny.
Payment by results
•
•
•
Under payment by results, providers have the
freedom to develop new and innovative
partnerships.
Partnerships where the constituent organisations
have worked out what’s in it for them in being
involved and what unique contribution they will
make to the programme overall.
They will have to choose strong partners who will
strengthen their delivery, enhance their reach and
build their credibility, while complementing each
other’s brand.
Payment by results
•
And yet, there are very few charities, national,
local, large or small, who could immediately take
on the business and financial risks of Payment by
Results on their own.
•
Joining up with organisations that are bigger and
stronger than ourselves via joint ventures, special
purpose vehicles, social franchise and consortium
arrangements has to be on the agenda.
Payment by results
•
So the challenge for the voluntary sector is to gear
up for this
• And to shift its emphasis away from “can we find
someone to continue funding what we are already
doing” to:
o Will anyone want to buy and make use of our
products and services?
o Are there enough people out there who will
want to buy what we do?
o Can we provide our services within prescribed
costs and quality guidelines?
Payment by results
•
And so the advantages of payment by results
include:
o
o
o
o
A shift of emphasis from commissioning to
investing
New terms of engagement between
commissioners and providers
A different level of partnership working and
Outsourcing on a scale we haven’t known
before
Payment by results
•
Some implications I haven’t yet touched on:
•
One: Payment by Results lends itself to locality
based thinking. In order to define and deliver
measurable outcomes, you have to be able to
confine your targets within clear and measurable
boundaries. This is what they’ve done in
Peterborough with the Social Impact Bond
Payment by results
•
Two: We should not underestimate the level of
difficulty in applying payment by results to
something as complex as reducing offending.
•
We know prevention and early interventions are
difficult to measure, short term
Payment by results
•
Three: the problem of creaming – where Payment
by Results tempts providers to target people they
find easier to work with at the expense of harder
to reach and harder to help individuals.
•
Undoubtedly this is something we should guard
against but in the Social Impact Bond example,
the investors have taken control of this and are
incentivising work with more difficult offenders.
Payment by results
•
Four: And this is important. At a time of recession,
there may not be enough money to make it work.
•
When we put a stake in the ground and project
that our programmes will reduce reoffending by x
per cent, the type and combination of services
we’re going to need to achieve those results will
inevitably be expensive. If the funding isn’t
available to fund all of it, compromises will have to
be made. By definition, this will impact on the
final outcome.
Payment by results
•
We must not discount payment by results on the
grounds that it makes us instantly cringe
•
We should see it as a journey, along which we are
already travelling, from activity based funding
through market testing, to notions of transferring
risk to suppliers, and on to payment in exchange
for outcomes
Payment by results
•
Tackling reoffending will always require a
patchwork of interventions from, preventative to
rehabilitative, big and small, national and local,
intensive and generic, covering different levels of
risk and different types of need. Some of these
will lend themselves to payment by results more
than others.
Payment by results
•
We should celebrate the opportunity to bring
some simplicity into our complex reality and to
bring in new people with fresh ideas, and it may
do no harm to embrace the language of
investment because if we get this right we are
indeed investing in our future.
Payment by results
•
And we should get involved in the debate.
•
The devil really is in the detail
•
This is such a complex area that Government has
yet to work through it all.
•
So there really is an opportunity to shape the
future
Nacro – The Crime
Reduction Charity
Paul McDowell, Chief Executive
30 November 2011