Advisory services
Consultancy process example
Below is a generic process we have followed for many projects,
and corresponding examples of actual situations:
1. The client approaches us facing a
challenge: perhaps they need to generate an alternative source of revenue
because the local authority will not renew their main grant; or they
wish to have a more diverse income base to minimise risk; or they are
simply at a crossroads in their development and want to know how to extend
their offering.
- One client was offered a new funding stream by a local authority
who had a particular service in mind: to develop a new project that
would provide on-the-job training for long-term unemployed people.
The local authority funder was keen to see a social enterprise model
utilised and would contract with the new enterprise for the delivery
of public services.
- The management team of another social enterprise had identified a
gap in the market for high quality advisory services; the opportunity
to develop into this area could generate a surplus to fund their charitable
activities.
2. We discuss with the client how SEL
might best help them; at this point it is key for us to develop a fully
customised approach to the work to ensure that we respond to the specific
challenges and opportunities facing them. The work will often include
market research and business planning stages; although customers may
have particular topics for us to address.
- One client approached us to write a funding proposal on their behalf
to the local authority, to ensure start-up funding for a new venture
was secured.
- We have been asked to recruit a post holder to run a new enterprise.
3. We proceed with the work, confirming
progress with the client as appropriate. During a research phase, which
can be desk based, in the company, and out in the field, we will ascertain
potential market demand, stakeholder views and barriers. Subsequently
we often conduct a commercial and operational feasibility analysis of
new service ideas to form a recommendation, and finally develop an implementation
plan to include organisational, operational, financial and quality assurance
processes.
- One client asked us to undertake a full review of their existing
processes, contracts and pricing policy with a view to identifying
additional revenue. We looked in particular at how local authorities
could be encouraged to pay a fee that would allow full-cost recovery.
4. SEL will provide analysis and recommendation
to the client, accompanied by a business plan or process toolkit. We
aim to ensure that the organisation is positioned to act on these recommendations,
has the capability to take on new challenges and opportunities as they
arise, and we will provide assistance with implementation if required.
Furthermore, we can help to audit an organisation to measure social impact
and ensure that it is achieving its social aims.
- After analysing market demand, SEL concluded for one client that
there was a viable opportunity for a particular service, and we made
a series of recommendations about how the vehicle should be set-up.
The Board was positively engaged in the development planning and backed
appropriate investment in the new venture. A particular risk that we
identified for close management was the reluctance in parts of the
organisation regarding the change in culture towards a new, more commercial
approach.
- For another client we advised against the development of new ventures,
recommending instead that the client approach grant-making trusts that
focused on deprivation and exclusion. Two stumbling blocks were encountered
which led us to this conclusion: the organisation did not have the
skills to set up new micro-businesses and the local residents did not
have the income to afford the services.
- Elsewhere, the concerns were more fundamental in that internal systems
and processes were weak in the organisation in question. A detailed
review was recommended to understand basic costs and the extent to
which donation funding was cross-subsidising local authority contracts.
In addition, impact data about the social achievements of the charity
was required. Based on this data, a new internal process could be designed
and a revised pricing policy developed and discussed with local authorities.
