THE GREENWICH EXPERIENCE

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THE GREENWICH EXPERIENCE
GREENWICH LEISURE LTD
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OUR CENTRES

• Waterfront Leisure Centre
• Thamesmere Leisure Centre
• Plumstead Leisure Centre
• Eltham Millennium
• Coldharbour Leisure Centre
• The Valley Leisure Centre
• Charlton Lido
• Tramshed Theatre

• Arches Leisure Centre
• Eltham Pools
• Meadowside Leisure Centre
• All public leisure centres in the London Boroughs
  of Waltham Forest (5)
• Merton (4)
• Newham (4)
• Epsom (1)

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THE PROBLEM in 1993

• The Council had to make 35,000,000 of cuts to
  its base budget
• Total Council Budget 210,000,000
• Education Element 100,000,000
• Leisure Services Budget 20,000,000

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THE TRADITIONAL RESPONSE

• Service Reductions
• Closures and Redundancies
• Leisure as a discretionary service hit hard

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THE IMMEDIATE EFFECT ON THE LEISURE
CENTRES CONTRACT

• 400,000 contract reduction
• Closure of two or three centres
• The Loss of up to 30 Full Time Jobs
• Service Decimated
• No investment - No long term future
• Annual Cuts Closures

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Greenwich chose an IPS

• Society for the Benefit of the Community
• Social Enterprise - staff led
• Loss of direct control to the Council
• BUT
• Can achieve Rate Relief savings
• Can save jobs services
• Value of NNDR savings in 1993 was in excess of
  400K, (the savings target).

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EPITHETS

• Society for the Benefit of the Community
• Cooperative Structure
• Not Profit Distributing
• Cannot be Bought Out
• Community Company
• Partner with the Council

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BENEFITS OF A NOT FOR PROFIT ORGANISATION

• Single focused organisation
• Employee empowerment
• Fiscal benefits of Rates VAT
• Eases Councils 5 VAT exemption threshold
• Free of Capital controls
• Free to diversify
• Demonstrates Best Value

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ALL STAKEHOLDERS NEED TO AGREE

• The Council Members
• The Client
• The Workforce
• The Managers
• The Customers
• The Trades Unions
• ..and Other Council Departments

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THE COUNCIL DOES NOT CONTROL THE INPUTS

• GLL is an independent organisation
• GLL determine staff pay conditions (but they
  are TUPE protected)
• GLL is free to determine how the service is
  structured

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THE COUNCIL STILL CONTROLS THE SERVICE
(OUTPUTS)

• Via a Lease on the Buildings
• Via the Grant
• Via the Members on the Board (19)
• The Effect is the Same as a Contract but Annually
  Variable

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GLL - ITS OWNERSHIP

• Owned by the Contracted Staff
• One Person, One Share, One Vote
• Shares 25 each
• 80 Take up from Eligible Staff
• Other staff still work for GLL

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GLL - THE MANAGEMENT BOARD

• 11 Elected Employees
• 3 Members of the Council
• 2 Elected Customers
• 1 Trades Union Representative
• the Managing Director

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EMPLOYEE BOARD MEMBERS

• Elections Allow Representation from
• Across the leisure centres
• Gender Ethnicity
• All Grades

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GLL - THE MANAGEMENT BOARD ROLE

• Meets Bi - Monthly
• Agrees and directs Policy
• Appoints Senior Managers
• Is the Legal Entity

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GLL - THE DEMOCRACY

• Board is Annually Elected
• Workforce can call Emergency General Meetings
• Site Based Consultative Mechanisms for the
  management Board
• Buddy System
• Notice Boards
• Team Meetings

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GLL - MANAGEMENT

• Strong Professional Management
• Recommend Policy to Board
• Implement Board Decisions

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KEY CORPORATE STRATEGY

• Customer Driven Service Principles
• Controlled and Sustainable Growth
• Reinvestment in Facilities and Service
• Underlying Social Objectives
• Staff Development and Training
• Local employment career opportunities
• Award Winning Standards

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CREATING A STAKEHOLDING ORGANISATION
IS A NEW SKILL

• Staff Meetings
• Regular Newsletters
• Trades Union Consultation
• External Advice Support
• Time, Commitment Leadership
• Not an Overnight Job

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HOW LONG DID IT TAKE

• 1992 July Initial Vision Paper Oct Paper
  agreed by Committee Nov Budget cuts
  identified
• 1993 Jan Tentative go ahead (2 options)
• May Staff TUs agree IPS proposal June
  Detailed Committee agreement July
  Seamless Transfer occurs - GLL is Born !
• 2001 Still Going Strong !

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THE IPS HAD UNANIMOUS POLITICAL SUPPORT

• LABOUR Stakeholders Workers Control
• LIB/DEMS Social Ownership
• CONSERVATIVES Externalisation

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GREATER FUNDING OPPORTUNITIES EXIST

• Sports Lottery
• Charities Lottery
• SRB / Capital Challenge
• European Funding
• PFI
• Borrowing ?

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VALUE FOR MONEY
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VALUE FOR MONEY
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GLL - THE SUCCESS

• Cost to Council Reduced Annually
• Income Increased Annually
• Effective Social Inclusion Policy
• More than 100,000 GreenwichCard Members
• 30,000 HigherSavers
• Quality Award Winners (Quest ISO9002)

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National Award Winners

• Chartermark - TWICE 1995 1998
• Investors In people - TWICE (1997 2001)
• Best Leisure Operator (LPF) - 2000
• Best Fitness Centre (FIA) -2000

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GLL our People

• Local Employer
• Good conditions
• Many new jobs created
• Staff Development Programme
• Low staff turnover
• Exemplary sickness levels
• Genuine stakeholders!

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GLL - THE RESULT

• Closures Avoided
• Services Expanded
• Jobs Conditions Protected Enhanced
• Democracy Introduced

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OVERVIEW THE BENEFITS

• Empowerment, Enthusiasm Ownership
• Faster More Flexible Decision Making
• Free of Local Government Bureaucracy
• Customer Involvement
• Positive Cash Flow
• Free of Capital Controls
• Partnership Opportunities
• of course .. Reduced Costs

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THE CONCEPT - SOME WORDS TO SUM UP

• EXCITING
• IMAGINATIVE
• INNOVATIVE
• ENTREPRENEURIAL
• EMPOWERING
• SUCCESSFUL !