Who We AreWho We Are

• Set-up in 1982.

• Now the largest co-operative development agency in UK.

• Support and train co-operatives and social enterprises throughout Wales.

• Funded by: Welsh Government, European Union, Local Authorities & Consultancy fees.

Collaborative DriversCollaborative Drivers

• ‘All Wales’ contracts and frameworks• Scale – capacity to deliver• Skills set to deliver on large contracts• Collaboration on the buy-side – efficiency• New local supply chains – fill supplier voids• Local benefits e.g. employment opportunities

Co-operative Consor tia - Co-operative Consor tia - The The Oppor tunitiesOppor tunities

• Ability to tender for large contracts• Shared costs / pooling funding to buy services• Shared resources – staff / premises• Bulk purchasing• Continuity and volume of supply• Shared skills and knowledge• Opportunities to share good practice and ideas• Greater presence in the market place & access to

new markets • Shared responsibilities and risks• Inter-trading

The Consortia SpectrumThe Consortia Spectrum

The Consor tia Development Stages The Consor tia Development Stages

Stage 1 Strategic Rationale

Stage 2 Identify Partners

Stage 3 Early Stage Planning – Joint Vision

Stage 4 Developing the Business Model

Stage 8 Review and Evaluation

Stage 5 Agree on the Structure of the Consortium

Stage 6 Legal Framework and Governance

Stage 7 Start Delivering

Self-Analysis - Your OrganisationSelf-Analysis - Your Organisation• Strategy

- Is this clearly understood internally and externally?

- Is joint working part of your strategy already? • Competency

- Do you know your strengths and weaknesses?

- Are you prepared to review these with potential partners?

- Where can partners add value?• Culture

- Are you open, trusting and respectful of others?

- Do you know how to share – people, knowledge, costs etc..

Collaborative Working– Collaborative Working– When it goes When it goes WrongWrong

• Collaboration is often better described as “putting mutual loathing aside in order to get your hands on the money”

Alex Scott-Samuel

• Partnership working involves “the undefinable in pursuit of the unachievable”!

Powell and Dowling, 2006

• “Collaboration is like cottage cheese. It occasionally smells bad and separates easily.”

Thompson and Perry, 1998

Early Success• Caerphilly WHQS External Works

framework.• Work has been offered in two

lots, one lot for works packages below £750,000 and one lot for works packages above £750,000.

• All works packages will be tendered from the framework via mini competition tender processes from the relevant lots.

• Allied Construction Consortium – 4 members. • The consortium will be legally constituted as part of the conditions of

tender/contract.

Special Purpose VehicleSpecial Purpose Vehicle

The Special Purpose Vehicle

The Membership Usually the core consortia partners

Hold assets

The Board of Directors Drawn from the

members

Employ Staff

Draw down grant funding Bid for contracts

Special Purpose VehicleSpecial Purpose VehiclePros ConsPromotes more of an equal partnership amongst the members.

Can be difficult to attract funding as no track record of delivery at start-up phase.

Once established can be used over and over again to deliver new initiatives, bid for contracts.

Lack of understanding of the model by commissioners.

The model can be flexible, so if agreed, not all members need be involved in delivery, for example.

Could create additional costs for the founding members – need to balance this against the proposed return.

Membership can be expanded if additional skills / coverage is required.

As no one partner has direct control, this could put off those who like operate in this manner.

Can be established using a non-for profit legal structure or can be more commercial.

Can be time consuming to establish, hence can be obstructive if working to a tight timescale.

Lead Body ModelLead Body Model

Lead Body This organisation would draw down the required

start-up funding, lease any premises, employ staff.

Lead Body Board of Directors / Membership The lead body is accountable to its own Board of Directors

and membership.

Steering Group Made up of all delivery

partners

Delivery Partners

Delivery Partners

Lead Body ModelLead Body ModelPros ConsIt is a model that public sector bodies are used to working with and their procurement processes and management systems are geared up to work around this model.

The financial responsibilities fall with the lead body, hence you need to identify an organisation willing to take that risk.

Gives the commissioner a single point of access for services to be delivered.

The sub-contracted members of the consortia could feel disenfranchised as it is not an equal partnership.

Can be pulled together relatively easily if working within a tight timescale.

Small organisations still at a disadvantage, as due to their size, they would never be in a position to tender as lead body so would always have to act as a sub-contractor body.

Smaller organisations can benefit from scale of working with larger partners who can act as lead body.

Boundaries for EngagementBoundaries for Engagement• Purpose of the consortium• Principles• Decision making processes• Administration• Finance• Dispute resolution• Membership termination / changes• IP• Duration of agreement• Confidentiality / data protection• Trust

Sensitivit ies that Need to be ConsideredSensitivit ies that Need to be Considered

• Organisations simply don’t think about collaborating.• Limited evidence of successful consortia. • Perceived increased workload in creating a coherent and

comprehensive consortia bid. • Concern about the resource implications for working in partnership.• Imbalanced collaborative partnerships – potential inequality in bid

effort.• Difference in the interpretation of collaboration between members. • Loss of control – perception of giving part of the business to others. • Lose or dilute identity. • Lose client contact.

Contact DetailsContact Details

Rhian Edwards – Project ManagerRhian.edwards@walescooperative.org02920 556958 / 07867 788510

Prof. Paul Cantrill – AdviserPaul.cantrill@walescooperative.org02920 556159 / 07917 844856

Sarah Owens – AdviserSarah.owens@walescooperative.org07760 885634