Transcript Local Authoruty Spin Outs - Small Charities Coalition

NO PLAN B
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© Red Ochre
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What is Plan ‘A’?
What form does planning take?
Strategy
Business planning
Funding applications
Budgets
Risk analysis
Other?
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Categorise of risk
People
Information
Operational
Property
Financial
Reputation
Funding
Regulatory
Social
Technological
Competition
Political
Management
Governance
Strategic
Natural
Identifying risk
Failure to….
Inability to…
Loss of…..
Inappropriate…
Concentration of...
Reliance on…
Non-compliance with…
Disruption to….
Lack of…
Inadequate…
Reduction of…
Increase in…
Conflict between...
Delay in….
Depth of Planning?
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Risk analysis – produced for TAR?
Budgets – How realistic?
Usual to take Best/Likely/Worst case scenario
Strategy exercise – how realistic?
How much is remembered after the exercise?
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General statements
If things go wrong we will….
Cut costs
Fund raise harder
Diversify income
Take advice
Recruit new trustees
Increase insurance cover
Take on new activities/diversify
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What does this mean?
• We will act after the event
• Do you have the flexibility to do so?
• BP – Texas explosion – risk strategy was to change safety
procedures after an incident
• Result – Deepwater Horizon
• But BP big enough to absorb catastrophe
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Recent example
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Board with 3 accountants
Strategy
Risk analysis signed off
Reserves planning undertaken
Cash flow crisis in mid-August –Unexpected crisis
None of the trustees available
Panic calls to bank/ funders etc.
Loss of confidence
No Plan B
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Guidance
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Long distance
Approach to funders
Approach to bank (no OD facility)
Communications
Staff
Stakeholders
Confidence! Confidence! Confidence!
Now working trough worst case scenario
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Donald Rumsfeld
• Known Knowns – those things that we know about and so prepare for
• Known Unknowns – where there are things that we know that we don’t
know about
• Unknown Unknowns – Those things that we don’t know about and have
never considered
• The latter is the famous “Black Swan” event
• Prepare for Doomsday scenario
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Tool
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Have a toolkit to deal with problems
Have to know what the problem might be
Think of consequences
How to react
Responsibilities
Who to approach
What to say
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Think the unthinkable
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Sudden loss of funding
Fire/flood/earthquake
Loss of chief executive
Major legal dispute
Media exposure
What else?
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Review Operations
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What do you do?
Why do you do it?
Is it necessary?
Can you discontinue it?
Do you need to be where you are?
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Create Time/Space
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Cash flow forecast!!!
When will current funding run out
How safe is current funding – particularly statutory funding
Extent of reserves
Knowing ongoing commitments and liabilities
What can be cut immediately
Timelines known
Communication channels with funders
Start dialogue with collaborators/potential partners
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Instructions
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Accountants
Solicitors
Advisors
Charity Commission?
Support organisations – NCVO/ACEVO etc.
Politicians
Media
Stakeholders
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Next Steps
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Document
Circulate
Amend
Disseminate
Estimate resources
This may lead to fundamental rethink on a number of issues
Feed this back into Plan A
Re-review Plan A
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Responsibilities
Agree responsibilities
Sub-committees?
Agree how communications will work
Regularly review and update plan – reflect external and
internal changes
• Check skills set of trustees and SMT
• Can you improve this?
• Establish safety nets
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Other steps
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Check skills set of trustees and SMT
Have they the breadth of skills?
Have they the networks?
Can they fundraise?
Can you improve this?
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