Two big stories: ECT takeover + Tory Green paper

BREAKING NEWS. Oh yes. Two big stories, both with a ‘green’ slant.

The first is that the Tories have just released their green paper on what they would do to/with/for the third sector if they were in government.Launched at Sunlight Development Trust, It’s the first salvo in what is intended to be a constructive and consultative dialogue between the party and the sector. I’ve only just downloaded it and am yet to digest (95 pages over lunch was beyond me), but our friends at Third Sector online have helpfully done so and come up with the 20 headline pledges.

Of particular relevance to this world:

"•    Creating a network of social enterprise zones to provide incentives for social investment in deprived communities

•    Setting up a Social Investment Bank as a wholesaler of ‘patient capital’ to a wide range of social investment institutions

•    Creating a powerful ‘Office for Civil Society’ at the heart of government to fight for the interests of charities, social enterprises, co-operatives and community groups"

Looks interesting, pretty well-thought through and pretty sector-friendly, even if a fair bit of it has been announced one way or another in the past. The OCS replacing the OTS would seem to indicate that NCVO’s advocacy of ‘civil society’ as a concept has fallen on receptive ears. More soon after several tube commute reads.

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Second big story is that ECT Group, widely viewed and lauded as one of the leading social enterprises in the movement (and certainly one of the largest) has had the recycling part of its business taken over by May Gurney, a private firm. Their press release includes the following:

"ECT Recycling – part of the ECT Group with 1,100 employees – has been
acquired by May Gurney, one of the UK’s most successful maintenance and
support services companies and listed on the London stock market (AIM).


First and foremost, it’s ‘business as usual’ at ECT Recycling – the
current strong management team will remain in place, led by Stephen
Sears, and the focus will remain on delivering service quality for its
customers and its customers’ customers – members of the public.

For some time, ECT Recycling had been exploring ways to secure its
future and to build upon its successful business formula in delivering
municipal waste services to local authorities.

Stephen Sears, who has led the development of ECT since 1980 said: “ECT
has been looking for a partner for our recycling and waste management
business with a good reputation in the local authority market place and
with the commercial muscle to help us to secure bigger contracts. This
will allow us to deliver our social and environmental objectives as
well as the financial results that are essential to continued success."
 

Which leaves the ECT Group back to its original core business: the CT of community transport, having sold its various other businesses (railways, health care etc.). A few questions fall out of this, of course. Not least that ECT Recycling was a CIC, so is this the first CIC to be taken over? (and how does that work re. asset lock etc.?) Is this a strategic move separating out the two businesses, or in response to more fundamental problems? And if ECT generally needed to find a bigger partner (with "more commercial muscle") to secure bigger contracts, what does that mean for procurement/commissioning for all the other third sector / social enterprises out there? (many of whom are significantly smaller).

New Start magazine rang me this morning to comment, and I kept it largely generic (because I don’t know enough about ECT’s business / governance etc; see q’s above) but did say that we shouldn’t overreact as a sector or movement. More of this will happen over the coming years, hopefully in both directions, as mainstream business is influenced as well as threatened by ethical and mission-led competitors.

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Research engine

Increasingly in my role here at SSE I am tracking bits of research and policy that are flowing from different outfits and areas (and countries). And, while I haven’t had much time to pore over them of late, here are a couple that I thought were of particular interest:

The Social Intrapreneur: A Field Guide for Corporate Changemakers (pdf at end of article); It’s from Sustainability, whose stuff is usually leaning towards the corporate / US / big business version of social entrepreneurship, and I guess this report is a logical extension of this. Their stuff is always very good and thought-provoking though, so this makes it worth a read. We’ve often played round with the idea of social intrapreneurship here, although as much in a ‘large non-profit’ as a multinational….but, either way, entrepreneurial individuals within organisations setting up new initiatives and projects for social benefit. Different challenges to starting from scratch, different benefits….but also much that is shared. An area to revisit, I think.

Hitting the Target, Missing the Point: How government regeneration targets fail deprived areas is from the New Economics Foundation, and seems incredibly timely to me. Indeed, no sooner had I written something like "DCLG should aim to learn from previous / current regeneration initiatives such as LEGI" in a policy document than this lands in my inbox. Looks very interesting, particularly as it is rooted in practical work in the St Helens area (which has LEGI money: the Local Enterprise Growth Initiative).

I’ve yet to read it in full, but the general message seems to be that concentrating on outputs like job nos., enterprises started etc doesn’t capture the full benefits of such initiatives. It’s not a surprise to hear NEF calling for more sophisticated, thought-through measurement…but this one could have a big influence at at time when DCLG is looking at its regeneration objectives and infrastructure closely. Certainly, SSE has found that its outcomes and impact range far and wide: yes, jobs created, organisations established…but also increased political engagement, decreased isolation, greater community cohesion, improved relationships (!) etc…..

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Blair to be Third Sector envoy

Third Sector have reported that Tony Blair is to take on a more troublesome and problematic conflict than the Middle East: that between ACEVO, NCVO and DSC. Acting primarily as an intermediary between disputing factions, Blair will use his substantial experience…

…oh, ok, April Fool etc. Good effort from Third Sector, though. Up till "I feel the hand of Stuart Etherington on my shoulder", they almost had me… :0)

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Kids Company: Sex Pistols or the Clash?

Last summer, maverick Kids Company founder Camilla Batmanghelidjh launched a media campaign to achieve further government funding for her organisation. My post at the time ended with the words "Ultimately, we’ll see how it turns out; I’d imagine they will get
another 3-year government funding package, particularly given their
work hits one of the key priorities….But I wonder if
the long-term effects of this move might not be wholly positive".

Sure enough, last week it was announced that Kids Company was going to receive £12m over the next three years; one organisation amongst five sharing £27m (44% to Kids Co.). Which is no doubt good news for Kids Co and the other four organisations (if not the other 85 who submitted an expression of interest), and signals a real investment in delivering appropriate services to young people across the board. (It also means that Camilla’s threat to strip in Parliament won’t happen).The reason I’d written that "the long-term effects might not be positive" was because I felt that this was not a sustainable way of working for the sector: as someone put it at the time, should we all enlist Max Clifford, rather than fill out applications?

Interestingly, Craig Dearden-Phillips of Speaking Up (one of the other funded organisations) has written a blog post which reflects what I imagine to be a wider view from the youth sector: it’s titled "Why Kids Company Excite Me….But Scare Me Too", and gives a real insight into those views, so I’m going to quote a couple of chunks of it:

"While part of me rejoices at an exceptional character like Camilla
facing down Government, part of me is a bit unsettled by it too. Should
a talent for PR and platinum inside-connections get you this quite this
much money? A lot of people are privately spitting feathers. Yeah,
sure, some are jealous but others just feel this kind of largesse to a
small organisation serving a few hundred kids across a few postcodes to
be grossly unfair. And they do have a point: How, I wonder, does a
community group on a council estate in Hull closing its doors in April
feel when they see Camilla playing the government (and, indeed, the HM
Opposition) like a salmon?"

Craig goes on to tackle their approach to impact measurement, replication, funding and, of course (and related to all of these), founder syndrome:

"My final point is about how KC needs to redefine the role of Camilla.
KC is the creation of its brilliant founder who has unbounded
commitment and energy. To get out of the starting-blocks, the drive and
hands-on approach of someone like her is absolutely necessary. Beyond a
particular point, however, it is damaging. Once out of the baby phase,
leadership needs to be shared-out, the entrepreneur needs to step into
an outward-facing role and the `grown ups’ need to be allowed to get on
with the serious business of running an operationally and financially
sound organisation. Believe me on this point because I have got form!
As a Recovering Founder, I know the pitfalls of `Founderism’. From the
bits I have heard from people who have been at KC in the past, the
organisation shows all the signs of Chronic Founderism. If KC is to
grow and help more kids in more places, Camilla needs to start a Twelve
Step Programme for Founders – now. I can recommend a good one…"

I won’t add much to that, as I think it speaks strongly enough. We will see what happens in three years’ time and whether, as Craig puts it in his conclusion, Kids Company "do a Sex Pistols – and crash and burn in a self-indulgent heap. Or, like
the Clash, evolve into something incredibly special and lasting".

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Superheroes and celebritisation

Have wanted to respond a bit more fully to the article in the Guardian about Social entrepreneurs are not superheroes, written by Rob Greenland….who’s been doing some really great posts of late.Essentially, Rob’s take is that using case studies to explain the effect of social entrepreneurs has a potential downside, namely that they can become almost comic-strip like in their portrayal of an ‘ideal’, rather than a reality. This is reinforced by the consistent use of a few big hitters by politicians, which often bear little resemblance to the vast majority of the movement. To quote the concluding paragraph from the piece:

"Away from the glamour at the top end of the market, there are loads of
organisations that are working hard at changing internal cultures,
working with customers to encourage them to pay for services, and
battling with the public sector to get it to match its new-found
enthusiasm for social enterprise with an acceptance that someone
somewhere still has to pay for social benefits to be delivered. And
many of these hardworking organisations, like me, are starting to get a
bit distracted by some of the more exuberant cheerleading on the
touchline."

You can read Rob’s original post on his blog here, which also attracted a great number of comments. One expands on Rob’s theme to talk about the ‘celebritisation’ of the sector, and its increasing corporatisation.

I find myself agreeing with large swathes of this. I don’t want to repeat myself too much, so will refer to some previous posts that intersect with this subject as I go:

The myth and truth of the heroic individual; see also here. Basically, our take is that successful social entrepreneurs create networks, build movements, inspire communities (and involve and engage them), establish teams and so forth: there are no superheroes who do it alone, and most social entrepreneurs you speak to will always emphasise their team and the many people who help(ed) make it happen.

But (and this is one thing I’m taking from Andrew Mawson’s book, review to follow), individuals do drive and lead change. Someone brings the group together, someone has the casting vote at the meeting, someone keeps things ticking over, and someone initiates things. There are risks in promoting individuals as the solution, but there are equally risks in endless committees, muddled partnerships, well-meaning talking shops and so forth.

The celebritisation point is an interesting one. I did a post a while back about recognition and celebrating success where I said that

"Recognition and celebration are key for raising social entrepreneurs’
confidence, their credibility as a leader of an effective organisation,
and an understanding of their own value (and the value of their work).
When this is recognised at our Fellowship events by politicians and
stakeholders, by the praise of funders or investors, or by their own
peers, the effects are substantial."

I think this is true, and I also think there is a need for aspiration (the Tim Smit big vision stuff). But there are some risks associated, it is true, with the VIP / celebrity social entrepreneur approach; namely, that a small, elite group of people get profile, support, resources, networks access and so on, but the vast majority don’t. This is something I’ve explicitly criticised Ashoka for in the past, for example, in that their "everyone a changemaker" rhetoric is not always mirrored in their selection of a few hand-picked already-successful social entrepreneurs creating huge change that many cannot even think of attempting. Core to the SSE methodology, for example, are relevant role models who provide inspiration and information, not unattainable vision. Often in our recruitment, we have to puncture myths about what a social entrepreneur is (people will often say "that couldn’t be me" until an example that hits home is put in front of them) to reach and engage those at the grassroots.

So why are we involved in things like the Social Enterprise Ambassadors programme, and the interviews for the first UK Ashoka Fellows? (to be announced end of March). It comes back to the long tail of social entrepreneurship argument: that we need to support and multiply the opportunities for social entrepreneurship at a local level to multiply the impact across a wide range of communities. But if we want those people to enter into the movement / sector, we need what are called ‘familiar points of entry’. In social entrepreneurship terms, this is your Tim Smit or your Muhammad Yunus: people know the thing exists because of the big examples. It gives them a context and an initial understanding. The head needs the tail and the tail needs the head.

The second thing is that, through our involvement, we can widen the pool of people getting access to these opportunities. Gill Coupland, Ken Orchard, Saeeda Ahmed, Jean Jarvis, Trisha Lee, Kresse Wesling, Sam Conniff and so on: the Ambassadors group includes familiar names, but also many like these whom were little (or less well) known and run smaller, more local/regional enterprises. (Indeed, Rob  works with Gill in Leeds). Similarly, though the Ashoka Fellows will include at least one very familiar name, I would guess that people would be hard pushed to pick the other three (and none of the four are ambassadors, either). And that must be healthy: more examples reflecting the diversity of the movement, and how it delivers social change at all levels, and in manifold different ways.

Finally, the corporate side of things does carry risks. I worry when politicians talk of the ‘independent sector’ (which groups the third and private sectors) for public service delivery, and worry about the emphasis on scale of organisations, rather than movements and ideas (see the long tail piece again). But again we shouldn’t dismiss all corporate involvement; this is a spectrum that runs from unconstituted voluntary groups through to for-profit businesses with strong social/environmental objectives. Should we be intoxicated by business and see it as the answer to the inefficiencies and lack of impact of this sector? No. Should we close off and learn nothing from them (and vice versa)? Also no, in my opinion. And people should judge organisations by their transparency, the quality of what they do, their stated governance and so forth.

As I wrote in a recent response to an article, "Social entrepreneurship should not be construed as something
"exclusive", or something imposed. Indeed, it should provide an
opportunity for people from all backgrounds in all areas to contribute
to a wider change.
" This continues to underpin our work, our approach to franchising (to avoid London-centricity, amongst other reasons) and, most importantly, the programmes we deliver to social entrepreneurs. It’s important to be reminded by Rob and others about this, to be challenged, and to keep it real, because we don’t always get the balance right.

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