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.

Acknowledging the vision and imagination of Nigel Kershaw and Big Issue Invest

Over the last week I have been asked on several occasions how BHT first got in touch with Blue Rocket, the PR company that we bought a couple of weeks ago.  The introduction was made by Nigel Kershaw, CEO of Big Issue Invest.   Big Issue Invest is a specialised provider of finance to social enterprises or trading arms of charities that are finding business solutions that create social and environmental transformation.   Nigel has worked with colleagfues in BHT for a couple of years, having agreed to offer mentoring relating to Dine!, BHT’s external catering project.

One of the most refreshing aspects of working in social enterprise is the level of co-operation and positive regard that one enterprise has towards another.  This positive regard, sense of common purpose and generosity of spirit is personified by Nigel. 

Without the initial introduction, and without Nigel’s vision that there was a ‘fit’ between BHT, Blue Rocket and its sister company, Green Rocket, BHT might never have thought about this innovation, and we would have been the poorer for it.  That fit wasn’t immediately obvious to most.  The acquisition of Blue and Green Rocket gives, I believe, a positive statement regarding BHT’s commitment to social enterprise and is evidence of our ambition to diversify and expand into new areas of work.  Thank you, Nigel.

Reaction to BHT’s purchase of Blue Rocket and Green Rocket

I have been delighted with the response we have received following our announcement that BHT Enterprises Ltd, the social enterprise arm of BHT, has bought the PR company, Blue Rocket, and its sister company, Green Rocket.

The media reaction, too, has been positive (although one outlet presented the story as BHT being criticised).  Most people have said it is an interesting thing to have done, some have said it is slightly odd (!), but almost everyone has passed on congratulations and best wishes.

Having worked very closely with staff at Blue Rocket this week in responding to a friendly barrage of press enquiries, I have been so impressed by the calm professionalism, the competence, and the integrity that they have shown.  It doesn’t come as a surprise, but doing due diligence on a company is one thing.  Working alongside them is another, especially when it is the reputation of your organisation at stake. 

Earlier this evening I was speaking to a journalist at 3rd Sector magazine about the purchase of Blue and Green Rocket, and the acquisition of Hastings Community Housing Association.  I heard myself reflecting that having worked for BHT for almost 25 years, I have rarely been more excited about the future.  While I am aware that colleagues in other organisations are feeling ‘under the cosh’, there is so much positive activity within BHT.  It isn’t just Blue and Green Rocket, or HCHA, although they are special, it is the day to day work going on by dedicated and skilled staff.

Sitting here in my office at 6 o’clock in the evening, I can reflect on what BHT is and where we have come from.  There are so many people who have, over the past 41 years, made such important contributions to the work of BHT.  But what is almost impossible to put into words is the difference BHT, its services, staff and volunteers have made to the lives of tens of thousands of people.  I feel truly humbled by what we do and the difference BHT makes.

So ends a blog post that feels a bit self-indulgent, even congratulatory.  Forgive me!

Why I am proud that BHT Enterprises Ltd has bought a PR company

Today BHT, or at least its social enterprise subsidiary, BHT Enterprises Ltd., has bought local PR agency Blue Rocket and its sister agency, Green Rocket.  The purpose of the setting up BHT Enterprises Ltd. (it was incorporated just before Christmas) was to allow us to undertake activities not permitted under our charitable objects, but designed to make some money.  The profits of BHT Enterprises Ltd. are to be gift aided to BHT to support our charitable work, such as running First Base Day Centre that runs at a loss of over £100k each year.

I am proud that BHT has had the vision to set up BHT Enterprises Ltd. given how BHT and our services users will benefit from all profits generated.

Reaction to the announcement has been mixed.  Some have said that it is an imaginative and bold step to take.  Others have questioned why we have done this, given that over the last year we have reduced salaries within BHT.

For example, the Brighton Argus carried the headline “Charity under fire after PR buyout” and reported that “Unions (sic) hit out at purchase following job cuts”.

There have been no “job cuts” at BHT. Not a single job was lost, nor was there any service reduction when we took action to reduce our costs last year. Nor are pensions being cut. There was a temporary reduction in the employer’s contribution last year, but as a result of the savings achieved the full pension contribution has been reinstated from April.

As The Argus itself reported, on the very same day, the delayed impact of the recession on charities presents difficult financial challenges and many are being forced to cut jobs. BHT is one of the few organisations avoiding redundancies by making reasonable pay cuts and taking positive action to increase revenue for years to come.

Charities across the UK recognise that we cannot solely rely on government contracts at a time when public spending is decreasing. The acquisitions of Hastings Community Housing Association (HCHA), Blue Rocket and Green Rocket are part of BHT’s drive to diversify our revenue and become more self-sufficient.

These purchases have been made after 6 months of consultation and due diligence. Blue Rocket and Green Rocket are much-respected profitable businesses while HCHA is a well established provider of housing and specialist support services for young people in Hastings.

Blue Rocket has been successfully trading for more than six years and unlike most companies its committed team has won more lucrative contracts in the recession due to competitive pricing and good value services. The purchase price for the two companies was well below 1% of BHT’s £9.5 million annual turnover and the charity’s cash is protected by creating the new legal entity, BHT Enterprises Ltd. 

The acquisition of HCHA gives BHT £4 million of new assets and additional expertise through its work with young people.

These purchases will pay for themselves over and over again.

These developments strengthen our ability to deliver our Mission of combating homelessness, creating opportunities and promoting change amongst the most marginalised and disadvantaged members of society.  I am proud of what we have done.