GREENWICH LEISURE LTD THE GREENWICH EXPERIENCE GREENWICH LEISURE LTD OUR CENTRES Waterfront Leisure Centre Thamesmere Leisure Centre Plumstead Leisure Centre Eltham Millennium Coldharbour Leisure Centre The Valley Leisure Centre Charlton Lido Tramshed Theatre GREENWICH LEISURE LTD Arches Leisure Centre Eltham Pools Meadowside Leisure Centre All public leisure centres in the London Boroughs of: Waltham Forest (5) Merton (4) Newham (4) Epsom (1) THE PROBLEM in 1993 The Council had to make £35,000,000 of cuts to its base budget Total Council Budget £210,000,000 Education Element £100,000,000 Leisure Services Budget £20,000,000 GREENWICH LEISURE LTD THE TRADITIONAL RESPONSE Service Reductions Closures and Redundancies Leisure as a discretionary service hit hard GREENWICH LEISURE LTD THE IMMEDIATE EFFECT ON THE LEISURE CENTRES CONTRACT £400,000 contract reduction Closure of two or three centres The Loss of up to 30 Full Time Jobs Service Decimated No investment - No long term future Annual Cuts & Closures GREENWICH LEISURE LTD Greenwich chose an IPS Society for the Benefit of the Community Social Enterprise - staff led Loss of direct control to the Council BUT Can achieve Rate Relief savings Can save jobs & services Value of NNDR savings in 1993 was in excess of £400K, (the savings target). GREENWICH LEISURE LTD EPITHETS Society for the Benefit of the Community Cooperative Structure Not Profit Distributing Cannot be Bought Out Community Company Partner with the Council GREENWICH LEISURE LTD BENEFITS OF A ‘NOT FOR PROFIT’ ORGANISATION Single focused organisation Employee empowerment Fiscal benefits of Rates & VAT Eases Councils 5% VAT exemption threshold Free of Capital controls Free to diversify Demonstrates Best Value GREENWICH LEISURE LTD ALL STAKEHOLDERS NEED TO AGREE The Council Members The Client The Workforce The Managers The Customers The Trades Unions ..and Other Council Departments GREENWICH LEISURE LTD THE COUNCIL DOES NOT CONTROL THE ‘INPUTS’ GLL is an independent organisation GLL determine staff pay & conditions (but they are TUPE protected) GLL is free to determine how the service is structured GREENWICH LEISURE LTD THE COUNCIL STILL CONTROLS THE SERVICE (OUTPUTS) Via a Lease on the Buildings Via the Grant Via the Members on the Board (19%) The Effect is the Same as a Contract but Annually Variable GREENWICH LEISURE LTD GLL - ITS OWNERSHIP Owned by the Contracted Staff One Person, One Share, One Vote Shares £25 each 80 % Take up from Eligible Staff Other staff still work for GLL GREENWICH LEISURE LTD GLL - THE MANAGEMENT BOARD 11 Elected Employees 3 Members of the Council 2 Elected Customers 1 Trades Union Representative + the Managing Director GREENWICH LEISURE LTD EMPLOYEE BOARD MEMBERS Elections Allow Representation from: Across the leisure centres Gender & Ethnicity All Grades GREENWICH LEISURE LTD GLL - THE MANAGEMENT BOARD ROLE Meets Bi - Monthly Agrees and directs Policy Appoints Senior Managers Is the Legal Entity GREENWICH LEISURE LTD GLL - THE DEMOCRACY Board is Annually Elected Workforce can call Emergency General Meetings Site Based Consultative Mechanisms for the management Board: Buddy System Notice Boards Team Meetings GREENWICH LEISURE LTD GLL - MANAGEMENT Strong Professional Management Recommend Policy to Board Implement Board Decisions GREENWICH LEISURE LTD KEY CORPORATE STRATEGY ‘Customer Driven’ Service Principles Controlled and Sustainable Growth Reinvestment in Facilities and Service Underlying Social Objectives Staff Development and Training Local employment & career opportunities Award Winning Standards GREENWICH LEISURE LTD CREATING A ‘STAKEHOLDING’ ORGANISATION IS A NEW SKILL Staff Meetings Regular Newsletters Trades Union Consultation External Advice & Support Time, Commitment & Leadership Not an Overnight Job GREENWICH LEISURE LTD HOW LONG DID IT TAKE 1992 1993 agreement occurs - GLL Initial Vision Paper Paper agreed by Committee Budget cuts identified Tentative go ahead (2 options) Staff & TUs agree IPS proposal June Detailed Committee July Seamless Transfer is Born ! 2001 Still Going Strong ! GREENWICH LEISURE LTD July Oct Nov Jan May THE IPS HAD UNANIMOUS POLITICAL SUPPORT LABOUR Stakeholders Workers Control LIB/DEMS Social Ownership CONSERVATIVES Externalisation GREENWICH LEISURE LTD GREATER FUNDING OPPORTUNITIES EXIST Sports Lottery Charities Lottery SRB / Capital Challenge European Funding PFI Borrowing ? GREENWICH LEISURE LTD VALUE FOR MONEY INCOME AGAINST COST TO THE COUNCIL INCOME £10,000,000 COST TO COUNCIL £8,000,000 £6,000,000 £4,000,000 GREENWICH LEISURE LTD 99/ 00 98/ 99 97/ 98 96/ 97 95/ 96 94/ 95 93/ 94 92/ 93 91/ 92 £0 90/ 91 £2,000,000 VALUE FOR MONEY DIRECT REINVESTMENT BY GLL £1,000,000 £800,000 £600,000 £400,000 £200,000 GREENWICH LEISURE LTD REINVESTMENT 98/ 99 96/ 97 94/ 95 92/ 93 90/ 91 £0 GLL - THE SUCCESS Cost to Council Reduced Annually Income Increased Annually Effective Social Inclusion Policy More than 100,000 GreenwichCard Members 30,000 HigherSavers Quality Award Winners (Quest & ISO9002) GREENWICH LEISURE LTD National Award Winners Chartermark - TWICE 1995 &1998 Investors In people - TWICE (1997 &2001) Best Leisure Operator (LPF) - 2000 Best Fitness Centre (FIA) -2000 GREENWICH LEISURE LTD GLL our People Local Employer Good conditions Many new jobs created Staff Development Programme Low staff turnover Exemplary sickness levels Genuine stakeholders! GREENWICH LEISURE LTD GLL - THE RESULT Closures Avoided Services Expanded Jobs & Conditions Protected & Enhanced Democracy Introduced GREENWICH LEISURE LTD OVERVIEW THE BENEFITS Empowerment, Enthusiasm & Ownership Faster & More Flexible Decision Making Free of Local Government Bureaucracy Customer Involvement Positive Cash Flow Free of Capital Controls Partnership Opportunities & of course .. Reduced Costs GREENWICH LEISURE LTD THE CONCEPT - SOME WORDS TO SUM UP EXCITING IMAGINATIVE INNOVATIVE ENTREPRENEURIAL EMPOWERING & SUCCESSFUL ! GREENWICH LEISURE LTD