Taking tough decisions

(This is the text of my ‘Bottom Line’ column that appeared in the Brighton Argus on 16th August 2011).

In my working life I am involved in two very different organisations which share a common objective: the provision of specialist services for those in the greatest need. But in spite of the common objective, there are fundamental differences in expectations of my role in the two organisations

One is the charity, Brighton Housing Trust (BHT). The name itself is misleading. We don’t just operate in Brighton (and Hove), but also in Eastbourne, Hastings, St. Leonards and other districts in East Sussex. We do a lot more than housing, including legal advice and representation, mental health services, services for those with alcohol and other drug addiction, work and learning activities, etc.

The other organisation is BHT Enterprises Ltd., a profit making company, operated on a commercial basis. BHT IT Solutions and BHT Design are just two of the businesses within the company. The profits generated by BHT Enterprises are gift aided to the charity, BHT, to support its charitable work, for example, at First Base Day Centre.

First Base provides services to some of the most vulnerable men and women in Brighton and Hove. For example, we provide early morning sessions for those who have slept out. We ensure that the causes of their homelessness are addressed, and help them to secure and maintain accommodation.

The Centre operates at a loss of about £100,000 per annum, but because of the high “Mission-fit”, the charity chooses to support the work of First Base from our own funds and donations we receive from many very generous supporters.

Being a charity doesn’t stop us making difficult decisions, such as changing terms and conditions of employment for staff three or so years ago. And we have recently had to make a very difficult decision in BHT Enterprises.

It is not a charity and takes a commercial view on its activities. One of its business streams, the highly respected Blue Rocket PR, staffed by four very talented PR specialists, has in recent times struggled in the challenging economic environment in which it operates.

BHT Enterprises Ltd. has no room for sentiment, for considerations such as “Mission-fit”. With my fellow Directors we felt that the outlook for Blue Rocket PR was not positive, in spite of the expertise of its staff, and we have made the decision to shut the business.

Of course on a personal level I am sad to lose Blue Rocket PR from our wider ‘family’, but as a commercial enterprise we could not wait to see if its prospects would improve nor could we subsidise its business activities from charitable funds.

It takes different mindsets to run charitable and commercial organisations. But in each, tough decisions have to be made if we are to remain true to our purpose.

Why being ethical is good for business

I am contemplating the statement “Why being ethical is good for business”. My initial reaction was “Of course it is” but it is a more complex issue than that. At BHT we would like to think we operate throughout our work with uncompromised ethics. We have had a Code of Ethics for 22 years which is reviewed and updated. I introduce the Code to all new members of staff as part of their induction.

But the moment one becomes complacent, immediately the risk increases.  A corner cut here, an oversight there, a compromise or two.  It can be a slippery slope.  There are things I have done in my role as Chief Executive of BHT that I never thought I would have done.  I can justify my actions to myself, but do others see things in the same light.

The biggest ‘compromise’ I have made regarding my own personal ethical base was to review (the reality was cut) staff salaries a couple of years ago.  It was a compromise I never dreamed I would make, but I did.  Faced with unpalatable choices because of the worsening financial outlook - closing services, making staff redundant, or cutting salaries, I recommended that we should follow the least worst option – salary reductions.  I can justify it to myself (and others) saying that the loss of a service was the worst option.  Afterall, that is why we exist. The next worst option was making redundancies.  I appreciate the impact that redundancy causes to households, and the loss of staff does impact on our ability to deliver quality services.

Salary cuts, of course, hit morale, and resulted in understandable anger.  It was to the credit of BHT staff that they were able to separate out their professional commitment to their clients from their feelings towards the employer and, in particular, me.

Was what we did unethical? I think we let down our staff on one level.  On the other hand, while many charities are facing having to make redundancies and even closure, BHT can look towards the next three to five years with confidence. The decision was driven, I would argue the ethical base for the decision, was based on our ethical commitment to our clients.

Ethical standards must run throughout an organisation – conduct, respect, competence, confidentiality, standards of work practice, integrity. I expect, no demand, the highest ethical standards from BHT staff. We must model such standards if we expect others to be ethical in their dealings with us. 

Next Friday (18th March 12.30pm to 5.15pm) there is a conference being organised by the Business Community Partnership, funded by Social Enterprise South East and the Cabinet Office, on the theme Why being ethical is good for business.  I will speaking at this conference on BHT’s experience of Social Enterprise.  My hope is by being part of events such as this I will deepen my understanding and, best of all, be challenged in order to avoid complacency.

City Camp Brighton: the ‘winning’ idea was My Urban Angel

In 2010 there were 214 sexual offences and 1200 violent crimes, and 2,000 alcohol related A&E admissions in Brighton. For parents with teenage children, myself included, when our children go out at night, we have a common anxiety whether they will be ok. So, too, with the thousands of parents whose children come to Brighton to study at our two universities.

And of course, they will probably be more than fine. But we do hear stories of incidents, minor and more serious. I admit to having a serious case of Anxious Parent Syndrome since I don’t want my daughter to be one of the 214 or 1,200 victims.

At City Camp Brighton this weekend, there was a simple but amazing idea about developing a Smart Phone App that could act as a panic alarm. I joined the group that was developing the idea and it soon became obvious that this concept had so much practical potential, and even commercial potential.

From a straightforward panic alarm concept proposed by Sue, My Urban Angel emerged. My Urban Angel (Be Safe and Feel Safe) is an app for iPhones and androids that people can use to keep themselves safe while out and about in Brighton. It will keep young people connected to friends and family while out, linking them up with others who can help if the need arises. It will be focused on young people but with the potential in keeping all ages safe.

So, how will My Urban Angel work? You will be able to
• Set up your friends and family to contact before you leave on an evening out
• Find FRIENDS if you lose them on your night out
• ALERT a friend to unwanted activity at the bar
• Set a SAFE MEET point & agree check in times
• Set an area you SHOULD be within during your evening
• PANIC button with the potential for a pocket angel
• LINK your night out with facebook friends and share your night
• Automatically alert your friends and family when you leave your SAFE area
• Find safe areas within the city
find & ALERT safe PEOPLE (Street Pastor Scheme, SIA) on MAPS

…. and so much more …

In Brighhton and Hove there are 250,000 residents, 12,000 students, and 8 million visitors each year. The potential of this app is huge. I feel incredibly proud to have been part of the team that evolved the concept and successfully presented it to the judging panel. And I am really excited that the panel decided to invest £10,000 in developing this idea so that it becomes a reality.

City Camp Brighton was an amazing 3 days. Thanks to the organisers for an inspiring, exhausting yet energising event.

Working with the Rich and Famous … and Celebrities

At times of austerity, charities rely, more than ever, on the generosity of their supporters. At BHT we have an annual Christmas Appeal and, once again this year, have been delighted by the generosity of individuals, churches and other groups.

Many charities, particularly national ones, rely on the famous or celebrities. Fame is an enduring characteristic that lasts because the individual has done something of worth for which they will, rightly, be remembered. Celebrity on the other hand, is bestowed on someone who often appears out of nowhere and disappears again after their 15 minutes of fame.

Some charities offer large appearance fees to celebrities to show up at events. Celebrities are often in it for themselves and you work with them at your peril. Famous People are usually conscious of reputation and only endorse a cause or charity when they believe in its values and objectives.

Philanthropists, on the other hand, are rich by most people’s standards. They’re driven by a belief that through their financial support they can make society a better place and through their giving can relieve individual hardship. Many seek no publicity even though they more than deserve recognition.

Many charities, BHT included, rely on philanthropy as well as the generosity of ordinary people to sustain charitable activities that are not funded. But charities that want to survive, indeed thrive, in these challenging times need to look at all potential income streams. I have written previously on the need for charities to engage with social enterprise. Charities also need to look at the stewardship of their resources, diversify their activities, and also look at coming together with other, like-minded organisations in order to achieve efficiencies and ensure that there is no duplication, not least in back office costs.

Apparently, there is already a race to sign up Kate Middleton, soon-to-be Princess Katherine. My advice to her is to take time before hitching her wagon (if you pardon the expression) to any particular cause organisation. She should spend the next two or three years familiarising herself with good causes and only then decide who she is going to support.

The hopes and fears for the Comprehensive Spending Review

This week sees the announcement of the Comprehensive Spending Review, and I must admit that I await the detail with some trepidation.  BHT has long been aware that we, as a country, would be facing difficult times.  Indeed, at BHT we began preparing for this moment two years ago.  We examined our cost base, and made some very painful decisions regarding the salaries we pay.  We have made strenuous efforts to increase our income, and have made some bold steps in the direction of creating profitable social enterprises.

During this time, and in the months and years ahead, it is the ongoing support we receive from individuals, church and community groups that make the difference for many of our services.  As a result of your generosity and support, we are possibly better placed than many other charities to cope with even quite dramatic cuts.  We are determined to do what we can to safeguard the services we provide to vulnerable men and women. 

I take comfort from the pledge made by the Prime Minister in Downing Street shortly after the Coalition Government was formed.  David Cameron said: “I want to make sure that my government always looks after the elderly, the frail, the poorest in our country. We must take everyone through with us on some of the difficult decisions we have ahead.  Above all it will be a government that is built on some clear values. Values of freedom, values of fairness, and values of responsibility.”

BHT doesn’t provide any specific services to the elderly, but we do a lot with and for the frail and the poorest.  And the values of fairness and of responsibility run through our veins.

So, what do I hope and fear about Wednesday’s announcements?  I have three key issues I will be listening out for.

The first is housing benefit.  The changes in entitlement to housing benefit already announced remains a major cause for concern, but I hope that high rent areas like Brighton and Hove will receive some extra support to prevent the otherwise inevitable rise in homelessness.

Secondly, I hope that the value of fairness will ensure legal aid will still be there to prevent homelessness, tackle debt, and sort out welfare benefit problems.  This is specialist work and the social return on investment is enormous.  If these specialist services provided by the CAB, BHT and others are cut, we will see the consequences for many years to come.

Finally, I hope to see that the elderly, the frail and the poorest in our country will still be able to receive support through the very excellent services funded through the Supporting People programme.  This budget has already been significantly reduced in recent years.  There is little, if any more, to give.  I feel so strongly that the most vulnerable men and women in our society must continue to be supported to remain in their homes, to move to greater independence, and are supported into training, education and employment.

By Wednesday evening we will no longer have to speculate.

Social Enterprises are an essential component for the survival of charities

If charities must are to survive this period of austerity, they must control their costs and find ways of generating new income.

At BHT we have controlled our costs by, controversially, reducing salaries and changing terms and conditions of employment. We have also increased turnover by acquiring new services (such as work and learning schemes) and the organic growth of existing activities.  But most excitingly, we have developed a number of social enterprises which are designed to generate new income that is not dependent on local and national government or charitable giving.

Developing profitable social enterprises is not ‘an optional extra’ for charities but an essential part of surviving cuts in public spending and the reduction in charitable giving, while at the same time they benefit clients, the community and charities alike.

Clients benefit from learning and training opportunities.  Social enterprises provide meaningful routes from training, through work experience, and into employment or further training.

The community benefits because of increased employment, reduced homelessness and rough sleeping because those in training and employment have increasing access to accommodation.  There is a reduction in social exclusion, dependency on benefits, substance misuse, anti-social behaviour and crime.

And organisations, particularly charities, are able to generate additional income, compete for completely new contacts and business, and it raises profile.

By delivering social enterprises we send out a strong message that we are taking a positive stand regarding our future funding, it shows we are prepared to innovate, and it reaffirms that we are an interesting organisation and one worth doing business with.

Brighton Housing Trust has established a trading subsidiary, BHT Enterprises Ltd.  Together BHT and BHTE Ltd operate a number of social enterprises, including:

• BHT IT Solutions which provides a comprehensive IT infrastructure to other charities through the creative and cost effective use of Cloud and thin-client technology;
• BHT Training provides 40 different training courses to people and organisations throughout Sussex working in the social care and related sector;
• Blue Rocket PR delivers a diverse range of national PR and helps our clients develop and grow. Specialist areas of PR include charity, social enterprise, health, property, finance and environmental campaigns. Third sector experience includes RNIB, Help the Aged, Social Firms UK, SignHealth, Social Enterprise London, and Enterprise UK.
• Dine! A catering company that caters for public and private events including weddings, banquets, meetings and conferences;
• Flavour: A jam and marmalade production company selling its produce at farmers markets and other specialist outlets.

Our social enterprises are good news for Brighton’s economy.  Every pound that is spent in our social enterprises is a pound that remains in the local economy, creating local jobs which, in turn, pay salaries that are in turn spent in the local economy. On every level, and from every view point, social enterprise makes sense.

(This article was first published in the Brighton Argus Business Section’s ‘The Bottom Line’ on 5th October 2010)

Wild animals at London Zoo, concreting over the south east, and being homeless with the rich and famous

It’s turning out to be one of those weeks.  Yesterday was the quarterly meeting of the BHT Board.  I am extremely fortunate to have a Board that gets it right almost all of the time – the right balance between holding me accountable, scrutiny of performance, and consideration of strategic priorities.  I didn’t quite get everything agreed that I had hoped for. One issue was referred back, quite rightly, for further consideration, while some changes were made on other matters that added value to the decisions being made.

Today we had a challenging debate in my management team about BHT’s response to the changing economic and social policy environment within which we work.  Passions can run high, not because we are falling out, but because we care about getting it right.  The debate was the beginning of the next cycle that will conclude with a Board meeting at the end of November.

This afternoon I should have been writing my part of a tender document, but have been disturbed by two media enquiries, one wanting to do a ‘fly-on-the-wall’ type documentry.  I’m thinking about that one.  The other was  the quickest of interviews for BBC South East news regarding a planning enquiry into the possible building of homes in Eastbourne.  Inspite it being on a greenfield site, I hope the Inspector will give the go-ahead.  There is an acute shortage of housing along the coastal south east, and Eastbourne itself there are over 4,000 people of the housing needs register.  That’s one in ten households in the Borough.

Tomorrow I am in Eastbourne for most of the day.  (I hope I won’t be lynched!).  Meetings with BHT managers, then a planning meeting regarding work and learning services in East Sussex, followed by a meeting with other colleagues.  Thursday, and this is where it gets strange, I am speaking at an event on Community Investment at London Zoo of all places.  The title of my talk is ’Wild and dangerous animals at the zoo’ to reflect that community investment and social enterprise is not always fully understood and valued.

Thursday is also the 25th anniversary of me starting at BHT.  Feeling my age and several stone heavier than when I started, I still feel so much enthusiasm for BHT and the difference it makes to people’s lives and the communities within which we work. 

Friday is relatively free.  Hopefully it will allow me to catch up with the work I should have been doing had I not been advocating concreting over Eastbourne, feeding animals in the zoo, and other things I do in this varied, sometimes bewildering but always fulfilling job.

I hardly notice our IT – surely the sign of a great service, and the costs are right down

About to go into a meeting with BHT’s own IT company, BHT IT Solutions, that provides IT services not only to BHT itself but to other organisations.  Amongst the issues being reported today is the savings in electricity being made by the technology used.  For BHT alone, the savings are £4,700 per annum because of the ‘thin client’ technology used.  Also, there are further savings because of the ‘virtualisation’ of servers.  Apparently, rather that running 10 servers, we now run just one ‘virtual server’ (if I have understood the technology properly!). 

The cost to BHT of our IT provision have been driven down by our two IT guys, Matt Andrews and James Clark.  This is not just the savings in electricity, but in setting up and supporting workstations.  Reliability is up and what was, in 2003 before the arrival of Matt and James, a very poor service, is now one that I hardly notice, surely the sign of great IT!

For more information, see the IT section on the BHT Enterprises website.

Social enterprises send out strong messages about the health and ambitions of charities

Tomorrow I am speaking at a conference at the University of Warwick on the role social enterprises have in tackling homelessness, creating opportunities and promoting change.  One of my key messages will be that for charities, developing profitable social enterprises is “not an optional extra” but an essential way of surviving cuts in public spending and the reduction in charitable giving.

Successful social enterprises benefit clients, the community and charities alike. Clients benefit from learning and training opportunities, social enterprises provide meaningful routes from training, through work experience, and into employment or further training. 

The community benefits because of increased employment, reduced homelessness and rough sleeping because those in training and employment have increasing access to accommodation.  There is a reduction in social exclusion, dependency on benefits, substance misuse, anti-social behaviour and crime. And organisations, particularly charities, are able to generate additional income, compete for completely new contacts and business, and it raises profile.

We cannot underestimate the importance of social enterprises.  I believe that by delivering social enterprises we send out a strong message that says we are taking a positive stand regarding our future funding, it shows we are prepared to innovate, and it reaffirms that we are an interesting organisation and one worth doing business with.

Reflecting on successes and the need to keep moving forward

Last night was the regular meeting of the BHT Board of Management.  A regular item that I report on is developments.  Last night it was particularly easy to report given that in the three months since I last reported, various initiatives that my colleagues and I have been working on for up to three years have come to fruition. We have:

• developed new services, for example, in the private rented sector, in work and learning, and in profitable social enterprise, thereby attracting income from new sources;
• secured new contracts and expanded our service base;
• strengthened user involvement at all levels of the organisation;
• established a strong base in Hastings having set up a training project, Finding Futures, delivered housing advice outreach, and acquired Hastings Community Housing Association; and
• established BHT Enterprises Ltd., and acquired PR company Blue Rocket and its sister company Green Rocket.

Very often we can’t see the wood for the trees because we are so involved in the day to day management of the organisation.  We may put out a press release or post something on our website, but before you know it, we have moved on to the next thing.

But having to report on a quarterly basis to the Board allows us to take stock of what has been achieved knowing that every service development will help us to tackle homelessness, create opportunities and promote change.

But we are not complacent.  We need to look, as always, at what is next.  What next for the organisation, for projects, for service users? Any achievement is a milestone, not a destination.