Managing the Core Risks Identified

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Managing the Core Risks Identified
(An extract from the Age Concern England – Help the Aged Working Group Report that was presented to the Age Concern England Board
Meeting on 12 March 2008 and to the Help the Aged Board Meeting on 20 March 2008.)
Risk Risk and Consequence
Mitigation
No.
1
Governance and operational
 Clarity on charitable objectives, vision, and mission, and the effective
framework – the founding charities fail
development of new structures (or changes to existing structures), to
to plan for, and establish, a new
provide the legal and governance vehicles needed to deliver them.
organisation which can deliver the vision  Development and delivery of a corporate strategy and plan for the new
set out by the two founding charities.
organisation confirming priorities, outcomes and outputs, and timescales
for the charitable and commercial activities.
 Internal and external communication strategies agreed and implemented.
 Identification and allocation of resources needed to achieve the new
organisation’s vision/mission and to deliver the corporate strategy.
 Agreement of the processes/mechanisms needed to effect the merger,
including: agreeing a work plan; development of a people strategy;
partner and stakeholder consultation process; agreement of Terms of
Engagement; establishing the Transitional Committee, the Nominations
Committee and the Programme Management structure.
 Agreement of post-merger processes/mechanisms to ensure the new
charity achieves its purpose, including through developing an
organisational design to deliver on the functions required, including
business development, scrutiny, strategy, cross-functional working,
knowledge management and effective data management.
AmalgaMate – A toolkit of ideas and practice for mergers in the third sector
Based on the merger to form Age NI, developed by CO3, funded by Atlantic Philanthropies
2
Continuity and change – the new
organisation fails to achieve the right
balance between continuity with the
existing organisations and their work
programmes, and realisation of the new
vision.
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3
Partners – the new organisation fails to
achieve the balance between securing
buy-in from existing partners and having
the freedom to realise its vision, and in
particular the freedom to select,
evaluate and review the partners who
are most fit for purpose.
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Review carried out of all existing charitable and commercial activities of
the two organisations. The review will make firm recommendations about
continuing, phasing out or discontinuing current activities. The
recommendations will be driven by the requirements of the agreed
corporate strategy and associated corporate plan.
Assessment of new activities that will be needed to deliver corporate
strategy and associated corporate plan.
Creation of management teams to deliver current activities,
develop/deliver new activities, and implement the transition from the two
current organisations to the new charity.
Confirmation of human resources and skills required to deliver the
corporate strategy/plan and a transition programme agreed to ensure the
right people, with the right skills, are in the right roles in the new
organisation.
Communication of vision/mission is to all current partners and consultation
about the role of partnerships in the new organisation are carried out.
Review of contractual commitments with existing partners and
confirmation about future arrangements.
Confirmation of the operational model for each type of partnership and the
threshold number of partnerships needed to achieve a viable and
sustainable new organisation.
Establish partner specification for different types of partnership, in order to
create transparency about the organisation’s requirements and to enable
partner selection.
Proactive signing-up of partners to the most appropriate partnership
model.
Discussions with the three new sister organisations in Northern Ireland,
Scotland and Wales and confirmation of the relationship with the new
charity.
AmalgaMate – A toolkit of ideas and practice for mergers in the third sector
Based on the merger to form Age NI, developed by CO3, funded by Atlantic Philanthropies
4
5
Brands – failure to decide on an overall
brand strategy, including planning and
managing the future of the brands,
leading to a loss of confidence,
including among charitable and
commercial partners. In addition, failure
to develop/deliver a brand strategy
would lead to a loss of income from
fundraising, an increase in confusion
among our audiences about the brands,
reputational damage, and a failure to
capitalise on the opportunity to build
on/improve on the current position.
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Transition – failure to manage the
process of transition from the two
organisations to the new charity
effectively, leading to a failure to
transfer the value in the two existing
organisations.
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6
Due diligence – the due diligence
process reveals issues about one or
both organisations that present an
insuperable obstacle to the merger.
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Agreeing a brand strategy for the new organisation and a costed plan for
its phased implementation.
Ensuring control and management of the current brands both within and
outwith the context of new partnership agreements.
Communication strategy to raise awareness and understanding by
charitable and commercial partners and other audiences of the new
charity and its brand strategy.
Monitoring, review and evaluation process implemented to measure the
impact of the brand strategy for the charitable and commercial activities of
the new organisation.
Clarity of purpose, timely development and delivery of corporate strategy
and plan confirming priorities, outcomes and outputs, and timescales for
the charitable and commercial activities.
Internal and external communication strategies agreed and implemented.
Identification and allocation of resources needed to achieve the new
organisation’s vision/mission and to deliver the corporate strategy.
Effective management of the merger, as detailed under Risk 1 above.
Agreed terms of reference and brief for the due diligence process, the
brief to include agreement on the role of external consultants.
Ensure resources available to commission and fully support the process.
Agreed process for handling and evaluating the outcomes/outputs from
the due diligence exercise.
AmalgaMate – A toolkit of ideas and practice for mergers in the third sector
Based on the merger to form Age NI, developed by CO3, funded by Atlantic Philanthropies
7
Costs and resources – insufficient
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resources available to effect the merger,
including: a) the work done to develop
the planning for the management of the
brands concludes that a high level of
new investment is a prerequisite for
success whereas at the moment, this is
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not factored into the financials; b) the
costs of integrating IT systems to
provide the new organisation with the
data and the capability that are
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envisaged, are much higher than
currently anticipated; and c) the cost
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and benefit analysis of the operational
model required to deliver the new vision,
reveals that the assumptions made at
this point are over-optimistic.
8
Growth and resilience – the new
organisation fails to improve on the
growth in income and impact that could
have been achieved by the two
organisations separately, and fails to
improve on the levels of resilience of the
two existing organisations.
Comprehensive evaluation of both the costs and resources needed to:
 Deliver the current charitable and commercial activities that are to be
retained at the level/for the period it is intended to maintain them
 Merge the two organisations, including rationalisation of activities and
staffing
 Deliver the new organisation’s corporate plan/strategy.
Comprehensive evaluation of the resources available to the new
organisation, including through:
 Charitable activities and fundraising
 Commercial income generation.
Cost benefit analysis of the activities and their costs needed to deliver the
new organisation’s corporate strategy/plan.
Budget process to match the new organisation’s projected income with
the anticipated costs/resources needed to deliver its corporate
strategy/plan.
 Development of the corporate strategy and plan for the new organisation,
as detailed under Risk 1 above.
 The new organisation’s corporate strategy and plan must confirm how the
organisation will achieve growth and resilience, having taken account of
the shared knowledge and thinking of the existing organisations,
assessed the resources and capacity available to the new organisation,
and identified existing and new opportunities and risks.
 The plan should establish targets and KPIs to allow it to measure and
control progress, and should establish monitoring, evaluation and review
processes, as well as a robust governance process.
 Effective management of the merger as detailed under Risk 1 above.
 Development of an effective organisational design, as detailed under Risk
1 above, specifically a design that enables the organisation to achieve the
AmalgaMate – A toolkit of ideas and practice for mergers in the third sector
Based on the merger to form Age NI, developed by CO3, funded by Atlantic Philanthropies
planned levels of growth and resilience.
AmalgaMate – A toolkit of ideas and practice for mergers in the third sector
Based on the merger to form Age NI, developed by CO3, funded by Atlantic Philanthropies
AmalgaMate – A toolkit of ideas and practice for mergers in the third sector
Based on the merger to form Age NI, developed by CO3, funded by Atlantic Philanthropies
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