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BUSINESS STRATEGY

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					                     HALO LEISURE

                  BUSINESS STRATEGY

                  “Life, Living, Leisure”


                         CONTENTS




1.   Executive Summary


2.   Background


3.   Lease and Management Agreement




                            1
PART A – CONTEXT

1.     EXECUTIVE SUMMARY

Introduction

1.1    Contribution

Participation in sport, leisure and cultural activities in its widest sense can have a
major impact on the quality of life of the community and can generate significant
economic, commercial and social benefits, both locally and nationally. It allows
people to have fun, fulfil their potential, meet others and broaden their horizons.
Participation in cultural and sporting activities improves skills and confidence,
enhances social networks, strengthens social cohesion and has positive impacts on
health and wellbeing.

1.2    Structure

Halo is the major leisure provider and enabler within the county of Herefordshire,
and, as a company limited by guarantee and not for profit organisation, has the
potential to develop and broaden that influence. The importance of this role should
not be underestimated and as such Halo needs to adopt a strategic approach in its
organisation and planning to ensure that it achieves business success by
encouraging, enabling and increasing the number of people who experience the
benefits of sport and leisure participation on a regular basis.

1.3    Strategy

“Life, Living, Leisure” defines Halo’s business strategy. It provides the vision and
the framework as to how Halo can develop over the next five years.

The aim of this business strategy is to provide a long term vision for the organisation
that is supported by a framework of values, strategic aims and objectives that will
guide our work. It is a living document, which is based on constant stakeholder
consultation, business opportunities and analysis of market trends. As such the
strategy will be evaluated on an annual basis and revised and updated where
necessary.

1.4    Funding

In addition to providing employees with a reference point for development, the
strategy and/or supporting strategies will also underpin any applications for external
funding made to the bank or other institutional funders including Herefordshire
Council. As a consequence this strategy paints a portrait of Halo and its ability to
trade successfully in the vibrant but competitive leisure market.

1.5    Strategic Overview

Strategy can be defined as “planning to achieve long term business success by
setting objectives, analysing performance and making strategic choices.” It is
recognised that businesses with strategic management practices out perform those
who do not.



                                           2
1.6      Corporate/Cultural

This document focuses on two key elements:

Halo's strategic framework is built around three strategic themes – customers (and
community), our people and sustainability.

It must be recognised that Halo is a finance led but customer driven organisation. In
order to achieve high levels of customer satisfaction it is essential to ensure that we
have the right people doing the right things at the right time. For these reasons the
three key themes are translated into three strategic aims, each with a number of
strategic objectives and this section will broadly outline marketing strategies and
target markets.

Halo’s ability to deliver on related community plans remains a key strategic
imperative. “Life, Living, Leisure” will also therefore recognise and demonstrate
how Halo can improve the community fabric either directly, working in partnership or
as an enabling organisation for others. The main focus for this work across the
County is The Community Strategy for Herefordshire – “A Sustainable Future
for the County”. Halo’s major partner, The Herefordshire Council’s Corporate and
Operating Plans will also provide direction, as will the Local Area Agreement.

1.7      Measuring Strengths

The effectiveness of the business strategy is dependent on one final factor, the ability
to establish robust review and evaluation procedures that will act as a catalyst for
measuring success and driving service improvement. Our systems are shown later in
the strategy demonstrating Halo's approach to this key aspect of organisational
business management. A comprehensive programme of measurement and review
systems are in place including external audits and mystery visits and a programme of
internal review and evaluation measures.

1.8      Conclusion

Ultimately leisure is a people business and success or failure is determined by an
organisation’s ability to interact effectively with its internal and external target
audiences, together with potential customers and to provide a complete service
package that meets or exceeds their needs and expectations. This places pressure
on the provider as customer needs are becoming increasingly more sophisticated
and subject to change and we operate within a highly competitive commercial
environment.

As a social enterprise, Halo is in a unique position to compete in this market,
especially as our driving force is to improve the social and community fabric rather
than to deliver share holder benefit. It is important that Halo capitalises on this
position to establish itself as a sustainable entity into the medium and long term.

“Life, Living Leisure” will guide Halo towards this aspiration.



     Signed by JA and BW




                                           3
2.      BACKGROUND

2.1     The Journey to Trust Status

The Herefordshire Council gained unitary authority status in April 1998 and
subsequently Members responded to the Governments proposal for "modern local
government" adopting a more political structure with cabinet style decision making.

The Audit Commissions Best Value inspection of the old Leisure Contracts section
took place initially in July and August of 2000 with a re-inspection in 2001. The
outcome of the inspection process was that whilst there were examples of good
management practice, there was a clear need for joined up service delivery, long-
term planning and improvements in the quality of the services provided to the
community.

2.2     Advantage of Trust Status

Following a detailed option appraisal the decision was taken to transfer the Leisure
Contracts service into a not for profit charitable trust trading as a company limited by
guarantee. The advantages to the charitable trust option are as follows:

2.2.1   NNDR.

There is a mandatory business rate relief of 80% in respect of the rates on property
which is wholly or mainly used for charitable purposes and occupied by an institution
or organisation established for charitable purposes only. Local Authorities also have
discretion to grant additional relief to charities in respect of all or part of the remaining
20%, and the Herefordshire Council has made this additional grant available
although funds stay within the Council and are not passed directly to Halo .

2.2.2   Outside capital finance regulations.

Any capital or revenue expenditure is outside the capital finance rules that apply to
Local Authorities.

2.2.3   Single focused body.

The charitable trust is a single focused body with a unitary purpose. Experience as
shown that such a charitable entity can operate successfully and with greater
freedom being removed from the constraints of Local Government budgeting.

2.2.4   Community involvement.

There is an opportunity for community involvement in the management of the
charitable entity.

2.2.5   Other fiscal advantages.

Charities are in a privileged tax position both in respect of their own tax and their
relationship with those who support them. Charities are generally exempt from
income tax on their own income provided the income is used only for charitable
purposes or ploughed back into the business.




                                             4
2.2.6   Councils continued involvement.

The Herefordshire Council are an integral part of the charitable trust as a grant giving
body; as landlord and through Board membership

2.3     Halo Brand

The Herefordshire Community Leisure Trust, now re branded as Halo Leisure Limited
came into being on the 1st April 2002 and received charitable status shortly
thereafter. The Trust is a legal entity in its own right and delivers services through the
majority of the leisure centres within Herefordshire, operating under a 25 year lease
and separate Management Agreement. The organisation is registered as a Company
Limited by Guarantee (CLG) and not having a share capital under the Companies Act
1985. A Memorandum of Association and Articles of Association clearly identify the
objects, powers and membership of the company.


3.      LEASES AND THE MANAGEMENT AGREEMENT

3.1     Lease

Halo carries out its business and provides services through its leisure centres under
lease from the local authority. Within this relationship the council is landlord and Halo
is tenant. Leases have been granted for a period of twenty-five years from the 1st of
April 2002 against a rental sum of £1 per annum. The permitted use within the lease
particulars includes for the provision of facilities for recreational leisure activities in
accordance with Halo’s Memorandum and Articles of Association identified at the
date of transfer and such other activities as the trust may agree with the Council from
time to time.

Halo as tenant agrees to make rental payments to the landlord, to meet its outgoings
in relation to rates, taxes and other impositions and to promptly pay for utilities. Halo
also agrees to meet its obligations with regard to repair and decoration of the
facilities.

3.2     Plant and Equipment

In addition there are a series of annexes to the lease, which include plant and
equipment leases, joint use agreements and a schedule of condition at hand-over.

3.3     Management Agreement

The Management Agreement is an agreement between Halo and the Council for the
management of the leisure facilities by Halo. It is effectively a document which
identifies anticipated outcomes in terms of the service delivery, also specifying the
need for an annual business plan to which the service fee is linked. If the
management agreement is terminated or expires or ceases to operate in respect of
the premises the demise granted by the lease shall be determined. If a business plan
is not agreed by the beginning of the relevant financial year as referred to in the
Management Agreement then either party may terminate the lease by giving 6
months written notice to the other. The two documents therefore are clearly linked.




                                             5
3.4    Lion House Leominster

Halo has entered into a separate five-year lease with Leominster Properties Ltd. to
lease the Rope room, ground, first and second floor offices at Lion House in
Leominster. The Support Centre operates from these premises.

3.5    Racecourse

Halo has also been granted an access licence to the Hereford Racecourse to allow
Halo to have access to this property in connection with the performance of the
services at Hereford Leisure Centre.


4.     HALO – THE ORGANISATION

4.1    Board Structure

Halo Leisure Services Ltd was established on the 1st April 2002. It is managed by a
Board of Directors and Trustees who are drawn from across the county, representing
a broad balance of community focus, commercial and, business enterprise. Two
Councillors from the Local Authority are also appointed to the Board. Local Authority
representatives may not make up any more than 19% of voting rights.

4.2    Board Meetings

The full Board meets four times per annum. Their primary role is to define policy and
strategy for the organisation and this is achieved partly through the support of an
Executive Sub Committee and Finance Sub Committee.

4.3    Management

The Chairman liaises with the Chief Executive on a regular basis and meets with the
Senior Management Team as required. Trustees and/or Directors who have a
particular skill or area of expertise are encouraged to meet directly with members of
the management team who hold specialist roles in order to determine how best the
organisation might move forward.

As a company limited by Guarantee Halo is able to trade outside the boundaries of
Herefordshire and this presents Halo with the opportunity to submit contract tenders
and established partnerships allowing the business to grow and improve community
access to leisure opportunities. A consultancy service is also provided although this
is a small element of the overall business.


5.     THE PEOPLE

5.1    Executive Team

Halo currently employs approximately 380 staff with a full time equivalent of
approximately 105. The Chief Executive leads the staff team supported by 5 strategic
Heads of Department who provides specialist, strategic advice and management
across the whole organisation. These posts are:




                                          6
     The Head of Operations and Deputy Chief Executive
     Head of Technical Services
     Head of Human Resources
     Head of Finance.

Collectively this team is responsible for the strategic development and effective
management of Halo.

Centre Managers and their management teams are primarily responsible for the
delivery of the service through the efficient and effective management of the sites,
supported by specialists based at the Support Centre.


6.       THE BUSINESS UNITS

6.1      Presence on the Ground

Halo operates from 9 leisure facilities located throughout Herefordshire. These are:

     Bridge Street Sports Centre
     Bromyard Leisure Centre
     Hereford Leisure Centre
     Hereford Leisure Pool
     Ledbury Leisure Centre
     Ledbury Swimming Pool
     Leominster Leisure Centre
     Ross Sports Centre
     Ross Swimming Pool

In addition, Halo manages the Local Education Authority Pool in Hereford and
community leisure use at Kingstone and Wyebridge schools


7.       ORGANISATIONAL VALUES

Organisational values reflect the attitudes and values that are central to Halo’s ethos
and as such they become the building blocks for the organisational culture,
competency development and the stimulant or the catalyst for translating the
business strategy in action. It is of crucial importance therefore that staff individually
and collectively understand and deliver the values listed in the table 1 below.

The building blocks have been constructed following consultation with the staff and
the board and are based on the concept that whilst all are important factors, success
cannot be celebrated unless the four critical factors detailed in the base of the
pyramid are enacted.




                                            7
                                                               CELEBRATING S UCCESS
                                                               Real success is not easy to
                                                                 achieve, it requires hard
                                                                   work, dedication and
                                                                  creativity. As such all
Table 1:                                                            success should be
                                                                 recognised, valued and
                                                                 celebrated. A 'pat on the
                                                                back' should be instinctive
                                                                    for a job well done

                                                      COMMUNITY                     CONTINUOUS
                                                    ENGAGEMENT                     IMPROV EMENT
                                             Halo is a community-biased       Leisure is always changing
                                             organisation and must seek       and Halo must work hard to
                                                to influence community          maintain a competitive
                                              planning, primarily through      advantage. It will always
                                                       partnership                  seek continuous
                                                                                     improvement

                                        PRIDE &                EQUITY & DIV ERSITY               CLIMATE FOR ACTION
                                PROFESSIONALISM              Halo is a community-biased           Management demands
                             Halo has set high standards     leisure provider and this is        SMART decision making
                            and has high expectations of      reflected in programming              processes. Halo is
                                its staff. Central to the     and employment policies           committed to the creation of
                               provision of an excellent                                       an organisational culture that
                             service is the need for staff                                     encourages and supports its
                            to be professional and take a                                           staff to take action
                                   pride in their work

           ONE TEAM – ONE VISION            INVESTI NG IN PEOPLE            PUTTING THE CUSTOMER                      EXCELLENT
             Halo must operate as one        Competent, well-trained                    FIRST                     COMMUNICATION
              high performance team        motivated and happy staff        We operate in a competitive,         Excellent internal and
             focussed on and working         are the springboard for         commercial environment.           external communication is
                towards the vision of     excellent customer relations.      Customers will choose to         essential for organisations to
           excellence. A cohesive team       Halo is committed to the       participat e in activities. 80%   function effectively. Halo will
            is a strong and competitive    development and retention         of our income comes from           strive to be an excellent
                        team                       of its people                customers – excellent                 communicator
                                                                                 service provision is
                                                                                  business-critical.



                                                                       8
Community Planning

   The Community Strategy for Herefordshire – “A sustainable future for the
    County”

The Herefordshire Community Strategy was first produced in 1999 as the
Herefordshire Plan and was reviewed in 2000 and 2003. This current version sets out
the shared vision for Herefordshire and brings together a number of partners in its
delivery.

Whilst Halo is not one of the key partners, the Trust can and should contribute to the
delivery of the Strategy as the wide range of leisure opportunities and experiences
provided by Halo is essential in contributing to the health, enjoyment, economy and
development of the local communities in the County. Indeed, one of the key local
issues resulting from a comprehensive consultation process was better access to
sport and recreational facilities.

The Strategy has five guiding principles and four themes which define an Action
Plan. The key themes are:

       Economic development and enterprise
       Healthier communities and older people
       Children and young people
       Safer and stronger communities.

Halo is committed to playing an active part in community planning and delivery. We
will achieve this by capturing how we can assist in the delivery of the Action Plan,
either directly or as an enabling agent, in our own forward planning documents,
principally the Community Development Plan. This will be formally reviewed and
approved every year with Council Members and Officers through the Vision Group.


   Cultural Consortium

Whilst the Cultural Consortium is not specifically recognised as a lead group in
community planning terms is does have a key role in using cultural activities to
enhance the quality of life for local people. The term cultural covers a multitude of
areas including sport, heritage, libraries, lifelong learning, arts, tourism, and
recreational countryside, all of which are represented on the Cultural Consortium.

Halo’s Chief Executive is currently Vice-Chairman of this group.




                                           9
PART B – THE STRATEGY
Introduction
Purpose

Effective purpose is broad and inspirational, something that strikes a basic chord and
provides a clear sense of direction for the organisation and its members. It is not a
specific objective you accomplish and then say "we're done". In summary a purpose
is why we exist and includes vision and mission.

A compelling vision and mission can be translated into goals, which are realised
through strategies, implemented as initiatives to generate results.

 Halo's purpose: “To improve quality of life”.
 Vision: “An essential element within communities as a first class provider
  of leisure activities and services”.
 Mission: “To deliver quality, innovation and excellence in all that we do and
  be recognised as a model of best practice and an employer of choice”.

This section therefore sets out the framework in terms of translating purpose into:

    strategic themes,
    strategic aims,
    strategic objectives,
    corporate performance targets.

Timescale

This Business Strategy is set for a period of five years. It will be reviewed formally
after three years. The annual business planning process, undertaken in consultation
with the Council and other partners, provides the opportunity to re-evaluate priorities
and resources for the next appropriate year, currently two years hence. The resource
plan and management fee will be negotiated at this time.

Sitting below the strategy are corporate Supporting Strategies and Centre Business
Plans which effectively translate strategic objectives in to annual plans, providing a
greater level of detail and identifying annual objectives.


Process

The strategy is driven by a desire for Halo to realise its potential and a common
vision, prompted by consultation with staff, customers, non users and partners
together with a recognition of the importance of independent, objective external
audits and inspections. Crucially, it also demonstrates how Halo can help to deliver
community strategies, either as a provider or enabler of services.




                                          10
Internal Strategic Framework

MISSION:

To deliver quality, innovation and excellence in all that we do and be recognised as a
model of best practice and an employer of choice.




Key Themes

      1       Customers

To ensure Halo remains a trusted brand that attracts, retains and delights customers
and is recognised to be a valuable, key component throughout the County as a social
enterprise and registered charity.

      2       Our people

To ensure that Halo remains an employer of choice, whose employees are loyal to
and proud of the company.

      3       Sustainability

To secure Halo’s viability and reinvestment capability through the development of
ongoing and robust income streams together with effective cost management.


Strategic Aims


STRATEGIC AIM 1:

To ensure Halo remains a trusted brand that attracts, retains and delights customers
and is recognised to be a valuable, key component throughout the County as a social
enterprise and registered charity.



OBJECTIVES:

1.1 Work with community partners, particularly the Herefordshire Council and PCT,
to influence improvements in the social and community fabric within Herefordshire
1.2 Deliver effective communications between Halo and its existing, external or
potential new customers
1.3 Ensure that the Company is recognised to be and valued as a Social Enterprise
and Charity.
1.4 Maintain Halo's brand locally, regionally and nationally through the development
of a programme of public relations campaigns and a series of sub brands




                                         11
1.5 Continually develop Halo's information and communications technology to
facilitate improved customer access both internally and externally to Halo's services
and activities.
1.6 Develop and regularly test Halo's quality model as a means of improving the
standards of service provided for customers delivering improved satisfaction levels.
1.7 Ensure a well maintained, functional and safe environment for leisure
participation.
1.8 Establish performance networks to enable Halo to identify best practice and
learn from "best in class".
1.9 Develop and market an innovative programme of activities which meets
community needs, stimulates increased participation especially at Halo managed
venues and, where appropriate, facilitates talent development.




STRATEGIC AIM 2:

To ensure that Halo remains an employer of choice, whose employees are loyal to
and proud of the company.




OBJECTIVES:

The Trust has established this Human Resources Strategy to respond to the key
workforce challenges that the Trust faces during the next period of the organisation’s
development.

It is responding to these challenges with Six Key Workforce Interventions:




                                          12
               EMPLOYER OF CHOICE SUPPORTING EXCELLENT
                      QUALITY LEISURE FACILITIES
Excellent      Perform ance   Im proving       Supporting the    Effective        Support     the
Learning and   Management     organisational   management        Recruitment      health and well
Development    Involving      efficiency       of change and     Rew ard    and   being   of  the
               staff/                          flexibility  of   Recognition      workforce
                                               the workforce
               community in
               developing
               the
               organisation


                 HUMAN RESOURCES KEY STRATEGIC THEMES

Each intervention has a three year rolling action plan for improvement, which will be
reviewed and revised each year, to meet changing needs and priorities.

The strategy is seeking to deliver the following outcomes for the Workforce:

2.1 Recruit and retain the best staff with the right skills and behaviour ethos
2.2 Use innovative and best in class employment practice, which recognises and
rewards employee contribution
2.3 Develop succession planning at all levels
2.4 Develop and deliver programmes which recognise and prioritise the need for
customer service excellence
2.5 Managers, leaders and employees are committed to our common goals and
purpose – giving their best at all times
2.6 Staff hold relevant personal authority and responsibility and ensure the customer
experience is considered at all times
2.7 Provide learning and development opportunities that enable staff to deliver
excellent services
2.8 Operate the most lean and effective ways of working using ICT to its full potential
2.9 Secure Investor in People status.




                                               13
STRATEGIC AIM 3:

To secure Halo's viability and reinvestment capability through the development of
ongoing and robust income streams together with effective cost management.



OBJECTIVES:

3.1 Improve Halo's operational efficiency by creating improved revenue streams and
proactively targeting efficiency savings.
3.2 Develop and implement a programme of SMART working practices to ensure
resources are only placed where optimum results will be delivered
3.3 Develop and implement an energy conservation plan
3.4 Regularly review programmes across all sites to reflect customer demand,
commercial advantage and innovation
3.5 Define and implement a programme of capital investments to improve the
quality of the product and offer, increase capacity in core markets and refurbish
buildings and plant, as agreed within the Reserves Policy.
3.6 Review opportunities for business growth either organically or through
acquisition in order to improve business performance
3.7 Implement a comprehensive approach to performance measurement
3.8 Develop and regularly review the risk management strategy




                                         14
Community Planning and Partnership
Halo is committed to playing an active part in community planning and delivery. As
stated previously, we will achieve this by capturing how we can assist in the delivery
of the Community Strategy Action Plan, either directly or as an enabling agent, in our
own forward planning documents, principally the Community Development Plan. This
will be formally reviewed and approved every year with Council Members and
Officers through the Vision Group.

The Community Strategy Action Plan is a separate document.

Accountability for the delivery of the Plan will rest primarily with the Chief Executive.
Responsibility for the Plan’s delivery will rest with the Community Partnership
Manager.




                                            15
Facility Development and Organisational Diversification
   Introduction

Halo operates within a commercial environment; an environment which is likely to
become increasingly competitive. The challenge for the organisation is to deliver
improving public and community based facilities and services through comprehensive
and robust business management principles.

Halo has a responsibility to ensure that, working with key partners including the
Herefordshire Council, the portfolio of facilities are developed to reflect and deliver
key objectives.

In addition to developing the current portfolio Halo must position itself strategically to
capitalise on any opportunities that may arise in the future for developing the
business either through consultancy services, organic growth or contract acquisition.

   The need for development

Halo is currently managing an ageing portfolio on behalf of the Council and there is a
recognised requirement to re-invest into the facilities. One of the major reasons for
transferring the service into a not for profit organisation was to generate resources to
re-invest back into the service through improved business performance and tax
based savings, achieved partly through an ability to plan into the medium and long
term.

Halo, the Herefordshire Council (who both have defined responsibilities for asset
management within the Lease) and the community generally, recognise the need to
reflect community aspirations in relation to facilities and services in order to achieve
maximum benefit for residents. This requires a continual process of re-investment
and review.

Whilst it has been accepted and agreed that the tax based savings retained by the
Council from transferring the service into a Trust will be ring-fenced and made
available to the service to reinvest, Halo will need to continue to improve the bottom
line financial performance through optimising space within the facilities thereby
delivering funds for capital projects and reduced business risk.

The Reserves Policy, agreed with the Council, will set out policy in this regard. The
Asset Management Supporting Strategy will identify how and where Halo will meet its
responsibilities and make links to other supporting strategies, Finance, for example.

   Consultancy and Acquisition

Halo benefits from having a Senior Management Team which delivers specialist
technical competence across a range of business management practices inwardly
into the organisation allowing Centre Managers to focus primarily on service delivery.
It is recognised that this structure can deliver an attractive proposition to other
organisations in one of two ways.




                                            16
1. Smaller organisations that are not able to afford the specific competence levels or
   specialist advise could offer contracts to Halo for the management of their
   facilities and/or services.

2. There is evidence now that Trusts are being set up as legal entities in their own
   right but again, without the benefit of specialist advise. Halo is well positioned to
   offer high level support to such organisations on an ongoing consultancy basis.

Both options provide an opportunity to offset costs and generate an income to Halo.

Halo has set up a consulting arm to target the market place for both options and
capitalise on revenue opportunities where appropriate. It should be noted that if
turnover were to accede a threshold it may be necessary to set up a separate trading
subsidiary.

Finally, there may be prospects for organically growing the business in Herefordshire
by extending the range of services provided in partnership with the Council and this
is increasingly being recognised by key Politicians as a way to join up services and
achieve significant revenue services..

Risk Management
3.1 Risk Analysis, Business Continuity and Sensitivities

It is impossible for Halo to avoid completely all forms of corporate risk. A more
realistic objective is to ensure the survival of operations by establishing a culture that
identifies and manages those risks that could result in a failure to maintain customer
services, meet legal obligations or deliver financial performance targets.

Business continuity management provides the strategic framework to achieve this but
it is not just about disaster recovery, crisis management, risk management or IT. It is
a business issue and presents an opportunity to review the way an organisation
performs its processes, improves procedures and practices and increases resilience
to interruption and loss.

Risk management and internal controls should be aimed at ensuring that Halo can
achieve its objectives in the most efficient way. Halo has already established a
framework for identifying, categorising and evaluating the impact of risks. Current
preventative measures together with further proposed actions to reduce risk levels
further have also been determined.

This has been captured within a risk management/business continuity matrix, which
can be seen below. The matrix and approach is formally reviewed and approved by
the Board on a six-monthly basis. This will be completed next once the level of
management fee has been formally agreed.




                                           17
         Issue             Assessment (1-6)           Priority    Current Preventative            Proposed Actions               Who         When
                                                                       Measures
                           Impact   Likeli-   Total   L.M.H
                                    hood

The      Council    are      6          2        12       M      Improving                  Continued regular dialogue           SMT/       Ongoing
unwilling to extend the                                          performance.               with the Council at all levels.   Board
management agreement
after 2008/09                                                    Clear links     between    Examine opportunities       for
                                                                 strategies                 expansion.

Council and Halo are         5          2        10       M      Vision           Group     Develop officer relationships        SMT        Ongoing
unable     to    agree                                           established        and
proposed amendments                                              working well.              Confirm longer term funding
to            governing                                                                     from Council
documents.                                                       Halo assisting Council                                           JA        March
                                                                 to   deliver   service     Dovetail planning                               2008
                                                                 outcomes.

                                                                 Council reps on Halo                                             JA        Ongoing
                                                                 Cttees.

Level     of     funding     5          5        25       H      Regular meetings and       Continued    dialogue   with      JA/AT/Board
required      is     not                                         supply of information.     Council along with provision
forthcoming from the                                                                        of necessary information.                       Ongoing
Council for either the                                           Improving
management fee or to                                             understanding of both      Continuing       culture     of
fund     Council   lease                                         partners’ needs            identifying efficiency savings
requirements.

Amendments            to     5          3        15       M      Position still unknown –   Alert Council    to   potential       RD        Ongoing
application of    exempt                                         test case pending.         issue.
status for vat.
                                                                                            Support SpORTA in fighting
                                                                                            case.




                                                                     18
         Issue               Assessment (1-6)           Priority    Current Preventative              Proposed Actions          Who       When
                                                                         Measures
                             Impact   Likeli-   Total   L.M.H
                                      hood
Adverse          weather       2          5        10       M      Limited     preventative     Investigate ability/cost to     AT/      Ongoing
conditions,   particularly                                         action can be taken for      further protect HLP and Ross   Council
flood.                                                             abnormal        weather      Pool
                                                                   conditions.

                                                                   Insurance in place



Inability to meet income       5          3        15       M      Comprehensive                Reduce           expenditure   SMT/      Ongoing
and/or       performance                                           reporting        and         proactively.   Eliminate (if   Board
targets.                                                           monitoring                   possible) cause of problem.
                                                                   arrangements      at
                                                                   management and Board         Identify impact on services
                                                                   level.                       of   reduced   grant  with
                                                                                                Council.
                                                                   All facilities aware of
                                                                   need to work within          Continue to grow revenue
                                                                   budget.



Major policy    dispute        5          3        15       M      Vision             Group     Ensure forward planning is     SMT/      Ongoing
with Council (including                                            established                  shared                         Board
funding requirement)
                                                                   Regular           briefing   Further improve briefing for
                                                                   sessions   with   Council    Cllrs
                                                                   officers
                                                                                                Reduce reliance on Council
                                                                   Board       Members          funding
                                                                   meeting with senior
                                                                   Members                      Identify        service/cost
                                                                                                reductions
                                                                   Council reps on Board




                                                                       19
         Issue            Assessment (1-6)           Priority    Current Preventative            Proposed Actions               Who         When
                                                                      Measures
                          Impact   Likeli-   Total   L.M.H
                                   hood
Utility costs               4          3        12       M      Some forward planning      Continue  energy    saving            AT        Ongoing
                                                                possible through fixed     programme and plans
                                                                contract periods

                                                                Technical competence
                                                                on SMT
Bird Flu or other           5          2        10       M      Memberships paid in                                             SMT        Ongoing
pandemic                                                        advance

Departure of one or         4          2         8       L      Good       employment      Act-up someone if necessary        JA/Board     Ongoing.
more     of    senior                                           practices.                 or buy in expertise.
management team.
                                                                Challenging roles.         Further develop succession
                                                                                           planning
                                                                Ability   to   make    a
                                                                difference recognised.                                           SG
Ongoing            poor     4          2         8       L      Board           oversees   Further                improve        JA/       Ongoing
performance or critical                                         performance      of  the   performance              review    Executive
omission by member of                                           organisation, supported    processes
the SMT or other senior                                         through external audit
manager                                                         HR policies in place


                                                                                                                                 SG


Departure of one or         2          5        10       M      Induction and training.    Regular     dialogue      with    JA/Chairman   As and
more of the Trustees.                                                                      Trustees.                                       when.
                                                                Ensuring a reasonable
                                                                workload.                  Maintenance of register of
                                                                                           interest.

                                                                                           Provide a sense of worth




                                                                    20
         Issue              Assessment (1-6)           Priority    Current Preventative              Proposed Actions            Who        When
                                                                        Measures
                            Impact   Likeli-   Total   L.M.H
                                     hood
Board dominated by one        4          1         4       L      Roles                 and    Continue regular review            JA/      Ongoing
group or individuals –                                            responsibilities defined.                                    Comp. Sec
possible policy dispute
                                                                  Strength     of    Board
                                                                  members

                                                                  Guidance         from
                                                                  Company Secretary and
                                                                  CEO

Neglect by Trustees           4          2         8       L      Recruitment      and         Refresher Trustee training       JA/Exec    As and
                                                                  training of competent        programme to be delivered                    when
                                                                  trustees

                                                                  Guidance           from
                                                                  Company
                                                                  Secretary/CEO
Legal      prosecution        4          2         8       L      HR professional on SMT       Continue         constructive    JA/SG      Ongoing
related   to      staff                                                                        relationship   with   Trades
management or mis-                                                Legal advisors in place      Unions
management
                                                                  Board guidance
Serious accident to staff     4          2        10       M      Good HR and health           Maintain and develop the          SMT       Ongoing
member or member of                                               and safety procedures.       risk assessment process.
the public.
                                                                  Proactive         training
                                                                  programme.

                                                                  Good record keeping
                                                                  and        appropriate
                                                                  insurance.




                                                                      21
          Issue              Assessment (1-6)           Priority    Current Preventative             Proposed Actions             Who       When
                                                                         Measures
                             Impact   Likeli-   Total   L.M.H
                                      hood
Inadequate procedures          3          2         6       L      Good procedures and         Confirm annual     audit    of     SG/      Ongoing
to take account of new                                             briefing systems  in        legislation                       AT/RD
legislation (e.g. data                                             place
protection, DDA)
                                                                   SpoRTA network
Inappropriate      and/or      5          2        10       M      Technical competence        Close work with     McCabe,       JA/RD/    Ongoing
inadequate      financial                                          of SMT and Board.           Ford & Williams.                    FSC
management           and
financial systems.                                                 Direct control of FMS       Regular    reporting       and
                                                                                               review.
                                                                   Audit reports and action
                                                                   plans.

                                                                   Networking         within
                                                                   SpoRTA.
IT failure    /   Disaster     4          2         8       L      Direct control of ICT.      Reconfirm regular reviews of      JA/SR     Ongoing
Recovery                                                                                       disaster recovery plan
                                                                   Back ups in place

                                                                   Insurance cover

                                                                   Board specialist
Closure    or     partial      4          3        12       M      Statutory     inspection    Agree policy on Centre             AT
closure of buildings on                                            programme in place          refurbishment,  adequately
maintenance grounds.                                                                           funded with Council.             Council/
                                                                   Specialist      in-house                                      Board     Ongoing
                                                                   technical team.             Confirm Council    renewals
                                                                                               programme
                                                                   Deployment of PPM
                                                                                               Increase Technician Team
                                                                   Budget allocation.
Major fire.                    5          2        10       M      Fire alarm detection        Maintenance of hardware          Managers   Ongoing
                                                                   system.                     and regular training.              SMT




                                                                       22
         Issue             Assessment (1-6)           Priority    Current Preventative            Proposed Actions           Who         When
                                                                       Measures
                           Impact   Likeli-   Total   L.M.H
                                    hood
                                                                 Risk Assessment.           Maintenance of      adequate
                                                                                            insurance cover.
                                                                 Appropriate policies and
                                                                 work         schedules.
                                                                 Insurance cover.

Non-compliance      with     5          2        10       M      Key staff and trustees     Maintenance    of    regular   JA/Board     Ongoing
any funding, transfer or                                         awareness.                 dialogue.
lease agreements.
                                                                 Regular         review     Ensure any changes to
                                                                 meetings with partners.    operating procedures do not
                                                                                            conflict with agreements.

                                                                                            Re-appraise           when
                                                                                            negotiating any renewals.

Inadequate resources to      6          3        18       M      Two-year        funding    Work with Council to confirm      JA       Ongoing
meet liabilities.                                                agreement    with   the    and continue medium term
                                                                 Council.                   funding   and   policy    on
                                                                                            reserves
                                                                 Improving       balance
                                                                 sheet.                     Confirm strategy for service
                                                                                            reduction should this be
                                                                 Business has good cash     necessary
                                                                 flow    and     limited
                                                                 opportunities for bad      Examination   of     pension     SMT       April 2007
                                                                 debt.                      arrangements.

                                                                 Regular        financial
                                                                 reports ensures close
                                                                 monitoring and control
                                                                                                                           SG/RD/FSC   April 2007




                                                                     23
        Issue            Assessment (1-6)           Priority    Current Preventative               Proposed Actions             Who       When
                                                                     Measures
                         Impact   Likeli-   Total   L.M.H
                                  hood
Poor project               4          2         8       L      Skills of SMT/Board and       Continued clear tasking for
management for capital                                         advisors                      project mgt and review             SMT/     Ongoing
schemes                                                                                      systems                            Board
                                                               Reporting    to    and
                                                               guidance from Board

                                                               Prince 2 methodology
                                                               skills within team
Downturn in core           6          4        24       H      Proactive management          Improve facilities
markets or macro/micro                                         approach.
economy.                                                                                     Continue to review service         SMT      Ongoing
                                                               Recent              capital   levels
                                                               investments       improves
                                                               offer.                        Continue focus on sales and
                                                                                             retention
                                                               Current    user     trends
                                                               stable.                       Develop opportunities       for
                                                                                             expansion
New entrant in to core     4          4        16       M      Strong brand                  Develop opportunities       for
market                                                                                       expansion                          SMT     Ongoing
                                                               Comprehensive
                                                               portfolio of facilities and   Develop long-term       facility
                                                               activities.                   improvement plans

                                                               Good relationship with
                                                               Council        including
                                                               forward planning and
                                                               risk awareness

Pursuance of               4          2         8       L      HR specialist on SMT.         Monitoring  of personnel            SG      Ongoing
employment tribunal                                                                          policies and management
case.                                                          Good personnel policies       practices.
                                                               and        management
                                                               practices.                    Appropriate training.




                                                                   24
       Issue           Assessment (1-6)                 Priority      Current Preventative          Proposed Actions             Who          When
                                                                           Measures
                       Impact    Likeli-    Total       L.M.H
                                 hood
                                                                    Good relationship with
                                                                    Unions



Risk rating:
Low          1–8                (min level of 1x1 to max level of 4x2)

Medium          9 – 18                 (min level of 3x3 to max level of 6X3)

High            20 – 36         (min level of 4x5 to max level of 6x6)
Monitoring, Review and Evaluation

   Rationale

Halo aspires to sustainability, success and excellence and this strategic framework provides the guide for achieving that goal facilitated
incrementally through the annual business review and planning process.

The formal and informal processes involved in monitoring, measuring and reviewing performance is an essential element in moving the
organisation forward. “If you can’t monitor it, you can’t measure it” is a common saying. It is only by having clearly stated objectives, monitoring
performance and evaluating why variances to plans happened (and more importantly, what the organisation is going to do about variances),
that improvements can be made on a planned and sustainable basis.

   Performance Measurement Toolkit

The Integrated Management System named “i” – effectively a quality manual with procedures, work instructions and related forms that assist
staff to manage, audit and review all operations in a consistent manner, is a significant tool in managing operational performance.




                                                                         25
Additional internal measurement systems include:

       Customer comment systems
       Focus groups and forums
       Market research into both users and non-users
       Internal service audits
       Staff opinion surveys
       Inspections by the SMT
       Balanced scorecard approach which provides feedback on both internal business processes and external outcomes in order to
        continuously improve strategic performance and results; specifically financial performance, customer satisfaction, internal processes
        and learning and growth.

External audits provide an objective way of assessing performance against nationally recognised criteria. Halo recognises the importance and
benefit of this objective approach and will continue to expose the organisation to the following assessments:

     QUEST – the recognised industry-specific quality award
     Investors in People
     McCabe, Ford and Williams will be retained (subject to regular review) to audit financial management practices and produce final
      accounts
     Quality Leisure Management (QLM) will audit and advise on health and safety matters

The Vision Group is an essential element within the performance review system, in addition to be a key strategic and planning tool. Regular
updates will be presented to this group.

   Benchmarking

Benchmarking processes and outcomes/outputs against similar organisations provides one indicator of performance and allows Halo to learn
from “best in class” performers. Current benchmarking partners include:

     SpoRTA – the leisure Trust movement
     QUEST network of accredited sites




                                                                       26
   Performance Indicators

Halo will be required to supply the Council with information on performance against agreed criteria. There is also an expectation that a range of
local indicators will support this and these indicators will be included within the various plans as required.

Halo’s success will be measured through the setting, monitoring and achievement of a range of broad-based performance target including
“softer” customer and employee measurements and “harder” commercial and business-based criteria to provide a balanced picture of
performance.




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