Social Enterprise Balance Balance Step 1 of 8 12% Welcome to Balance! You’ll need to set aside a good hour or so to complete this diagnostic. Once you’ve started you’ll need to complete the assessment in one session – so you could look at what information we need on this first page so you have it to hand to start. We’ll collect some data about your organisation first, before you start the assessment. Please answer the questions as honestly as possible – from your own gut feel, or if answering as a team – from a majority position. Once you’ve completed Balance, we’ll be notified you’ve finished, and we’ll then build your snapshot and email it over. We’ll also send you an Action Plan that has tips and suggestions for developing your organisational capabilities, one stage at a time. We recommend you return to Balance as an annual exercise – as part of your strategic management of your organisation. Enjoy and good luck!Your Name(Required)Your email address(Required) Organisation Name(Required)Organisation Postcode(Required)What best describes your activities?(Required)ServiceManufacturingBothAge of Organisation (Years)(Required)Less than 11 – 56 – 1011 – 2021+Organisation Type (Select all that apply)(Required) Charity (including Charitable Trading Arm) Community Voluntary Organisation Social Enterprise Trust Co-operative Mutual Community Association B Corp Legal Status (Select one)(Required)BenCommCharitable Incorporated OrganisationCompany Limited by Guarantee (CLG)Company Limited by Shares (CLS)CLG + Community Interest CompanyCLS + Community Interest CompanyIndustrial and Provident Society (IPS) Co-operativeUnincorporated AssociationOtherSub Sector (Select all that apply)(Required) Arts Business Support Childcare Community Creative Industries (Web, Design, Print) Culture and Leisure Education Employment and Skills Environmental Health Care Housing Hospitality Retail Social Care Technology Other Annual Total Income (including grants, contracts, donations and other)(Required)£0-£5,000£5.001-£10,000£10,001-£25,000£25,001-£50,000£50,001-£100,000£100,001-£250,000£250,001-£500k£500,001-£1mOver £1m-£5mOver £5m-£10mOver £10m+Income change – average for the past 3 years(Required)-20% or more-10% or moreNo change+10% or more+20% or moreSources of funding (averaged over the past 3 years) [maximum 3](Required) Public Sector funding Private Sector funding Third Sector funding Trading income (Sales) Donations Bank Loan Bank Overdraft Please choose just 3 maximumNumber of paid members (staff) in your organisation(Required)0-34-910-1920-2930-3940-4950-7475-99100-149150-249250+Number of voluntary members (volunteers) in your organisation(Required)0-34-910-1920-2930-3940-4950-7475-99100-149150-249250+Where do you see yourself currently?(Required)Totally fund dependent.Partial support dependent with some earned income. In need of funding to be maintained.Cash flow self sufficient but not at market rates with low re-investment, may be supported by shared resources (non cash support)Operating self sufficient, having previously been supported in some capacity (ie financial or shared resources).Independently operating having never been supported in any capacity (financially or shared resources).An Enterprise with different projects and financial structures – some for creating surpluses other not. May be in collaboration or partnership with other organisations.Where do you want to be?(Required)Totally fund dependent.Partial support dependent with some earned income. In need of funding to be maintained.Cash flow self sufficient but not at market rates with low re-investment, may be supported by shared resources (non cash support)Operating self sufficient, having previously been supported in some capacity (ie financial or shared resources).Independently operating having never been supported in any capacity (financially or shared resources).An Enterprise with different projects and financial structures – some for creating surpluses other not. May be in collaboration or partnership with other organisations.What are your 3 biggest organisational challenges?(Required)1/3What are your 3 biggest organisational challenges?(Required)2/3What are your 3 biggest organisational challenges?(Required)3/3 Stakeholder Perspectives Stakeholder Focus Question 1: We are focused on stakeholder needs Stakeholders are groups of people and organisations that are involved in, affected by and whom effect your organisation. They may be clients, customers, competitors, funders, employees/members, communities, service users, local authorities, government, other organisations from public, private and third sectors, etc. How well do you know them? How do they influence your organisation? What mechanisms are in place to collect data and prove your engagement?Question 1: We are focused on stakeholder needs(Required) Stage 1 – No, we don’t have any idea, we do what we do. Stage 2 – It’s quite intuitive and we probably satisfy some stakeholders more than others. Stage 3 – We only have a vague notion of stakeholders opinions and our success. Stage 4 – We periodically review stakeholders needs and have a good idea about who they are – and how we are doing. Stage 5 – We are sophisticated in our methods. We are constantly knowledge sharing and innovating in consultation with stakeholders, capturing value and using this data across the organisation. Market Awareness Question 2: We keep abreast of sector knowledge Organisations have to constantly adapt in the light of changing needs, service provision, PESTLE (political, economic, social, technological, legal and environmental) factors. Be informed, keep abreast of policy, identify threats, new opportunities and watch the competitiveness of your market. In this question you should reflect on your research and knowledge of the sector and the services you provide.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we do what we do; we don’t have time to keep up with what others do – or the latest policy and political ideas. Stage 2 – Our knowledge is only through hearsay. Stage 3 – Our knowledge is gathered informally and we react accordingly. Stage 4 – We keep abreast of PESTLE factors. Stage 5 – We are sophisticated in our methods, pro-active in understanding, analysing and adapting to PESTLE issues. Market awareness is embedded in our strategic plans. Identity Question 3: Our organisational identity portrays our desired image Logos, colour schemes and a visual ‘look’ creates an image of your organisation in the minds of your stakeholders. The words you use in literature and websites instills and influences judgements about your organisation. In this question you should reflect on the types of medium you use and the image of your organisation both internally and externally.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we haven’t thought about how other people see us as an organisation – we don’t really have an identity. Stage 2 – Informally – we have an identity but it is quite intuitive. Stage 3 – We review our identity periodically. Stage 4 – We have guidelines for our publications and website material, making sure we don’t put out mixed messages. Stage 5 – We are sophisticated in our methods, our identity is very important to us and we have a branding policy which is incorporated across the whole organisation. Promotion Question 4: We have methods for promoting our organisation Promotion is a way of advertising and publicising your organisation and the services/products you provide. Methods differ, but it is about taking advantage of situations to raise the profile of your organisation – be it through face-to-face meetings, technology (twitter, facebook, websites, etc) networking, advertising or rallying. Without good communication techniques you may fail to engage with stakeholders or attract enough support to survive. You should reflect on the methods you have used for promoting your organisation.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t promote ourselves in any organised way. Stage 2 – We rely on one method of promotion. Stage 3 – We promote ourselves in a variety of ways (printing, websites, directories, etc) in order to raise our profile – but not in any organised way. Stage 4 – We have a plan of action that was developed to raise our profile to key stakeholders. Stage 5 – We are sophisticated in our methods and we have a communications strategy based on informed knowledge of the markets we operate in and we promote ourselves using proven techniques that are continually monitored. Resources Question 5: Resources are allocated for marketing activities Allocating money, time and effort for marketing can be difficult. Yet, political, policy and market sector knowhow and research is essential. As is, promoting your organisation and creating the right image to stakeholders. This question assesses how you organise and resource marketing. You should be reflecting on the attitudes of the organisation to the marketing budget and whether you monitor and evaluate the return on investment.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t feel we have the resources. Stage 2 – It is not a priority and has little resources. Stage 3 – Only if and when there is enough time and money. Stage 4 – We have an annual budget allocated that is ringfenced in terms of both money and time. Stage 5 – We are sophisticated in our methods and have a marketing investment strategy that is evaluated and informs other parts of our organisation. Evaluation Question 6: Marketing activities are evaluated for their effectiveness Evaluating, reviewing and auditing are core management functions. Marketing evaluation should establish the past and current marketing efforts. Evaluating and analysing where time and money have been spent. What techniques – what worked and what didn’t? This should inform the planning of future activities. Reflect on the questions in this section and ask yourself if the current evaluation of these activities is effective.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – It’s not something that we have thought of. Stage 2 – It’s something that we have thought of, we make intuitive judgements about what works. Stage 3 – Only informally when time or when things are not going well. Stage 4 – We evaluate our marketing activities. Stage 5 – We are sophisticated in our methods and evaluate our marketing effectiveness against targets from the organisational strategy. Mulit-Bottom Line Cashflow Management Question 1: We have control of our income and expenditure This question assesses the control you have on income and expenditure – and the effect on organisational performance. These are key factors in maintaining financial and non-financial outputs and when negotiating external support (funding, loans, contracts for services, social investment, etc) and keep your organisation ‘fit for purpose’. Full cost recovery for forecasting and budgeting relies on clear accounting procedures and gathering information from an array of financial and non-financial sources. You should reflect on your depth of understanding and commitment to this issue.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we do what we do and that’s it – that’s the accountants job! Stage 2 – We act as and when in crisis situations. Stage 3 – We take an informal approach and periodically review our spend. Stage 4 – We review our income and expenditure so that we know our full cost recovery and can achieve our social aims. Stage 5 – We are sophisticated in our methods. Cashflow management is an integrated activity involving people and knowledge from across the organisation. Social Aims Question 2: We articulate social aims to maximise our impact Social purpose organisations not only seek financial returns but also social returns or impacts. This question seeks to assess if those aims are articulated for achieving maximum social impact. Evidence of achieving social aims not only reassures staff and board that the organisation is succeeding but also provides accountability and marketing opportunities to other key stakeholders.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t articulate specific social aims. Stage 2 – We have specific social aims but these are not articulated. Stage 3 – We are working towards articulating social aims to maximise our impact. Stage 4 – We have specific social aims that are formally communicated through our marketing literature (websites, publicity, etc). Stage 5 – We are sophisticated in our methods and spend time and resources on measuring, analysing, managing and articulating our social impacts in order to maximise our return. Environmental Aims Question 3: We articulate environmental aims to maximise our impact Social purpose organisations not only seek financial returns for their efforts but also, as a responsible organisation – environmental impacts. For some this issue may be core to their business, to others it just makes sense to minimise the negative effects of business on the environment. This question seeks to assess if environmental aims are articulated for maximising social impact. Evidence of achieving these aims not only reassures staff and board that the organisation is succeeding but also provides accountability and marketing opportunities to other stakeholders..Question 2: We keep abreast of sector knowledge(Required) Stage 1: No, we don’t have specific environmental aims. Stage 2: We have unspecified environmental aims. Stage 3 We are working towards articulating environmental aims to maximise our impacts and reduce the negative impacts of our business on the natural environment. Stage 4 We have specific environmental aims that are formally communicated through our marketing literature (website, publicity, etc). Stage 5 We are sophisticated in our methods and we have an environmental policy because measuring, analysing, managing and articulating our environmental impacts in order to maximise our return and reduce the negative effects of our organisation on the natural environment is important to us. Metrics Question 4: We use both financial and non-financial measures for reviewing organisational performance Performance measures are an integral part of managing any healthy business. Measures should relate to the needs of people with an invested interest in the success of the organisation and its ongoing viability. It is important to understand that this activity is not just for those interested in profit maximisation. Social purpose organisations need to review financial performance and other values which are relevant to the social aims of the business with a view to using this data to maximise social impact.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we do not review our organisational performance. Stage 2 – We probably use one or two measures to review organisational performance. Stage 3 – We are working towards using both financial and social measures to review organisational performance. Stage 4 – We break down aspects of the organisation and attach a range of measures to each – both financial and social. Stage 5 – We break down aspects of the organisation, make informed choices about management systems and performance metrics that are ‘fit for purpose’ for our organisation to use. Social Accounting Question 5: We publish social accounts Social accounting offers an opportunity to measure impacts and to improve accountability. Social accounting provides the platform to demonstrate and evidence ‘returns’ across the organisation based social criteria. Through annually published sets of social accounts organisations can raise their profile, prove and improve. Through externally audited and verified social accounts stakeholders are provided with rigorous evidence of your social impact.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we haven’t considered it. Stage 2 – We are aware and have thought about the benefits. Stage 3 – It is something that we are beginning to introduce. Stage 4 – We have produced social accounts. Stage 5 – Publishing our social accounts is imperative to us in communicating with our stakeholders and we are sophisticated in our methods. Organisational Sustainability Question 6: We are focused on the sustainability of our organisation to achieve our mission Organisational sustainability is more than business survival. If your organisation wants to be resilient and strong in order to continue supporting the stakeholders and values that you believe in you need to think about diversification, new markets, new income sources and new ways of doing things, targeted at market/customer expectations. Whether your future lies in public sector contracts to fund the services you provide or selling services direct to customers, building your organisation on solid foundations is critical to maximising your social impacts long term.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we do what we do and hope we can carry on somehow. Stage 2 – We act as and when in crisis situations. Stage 3 – We take an informal approach, rely on stable income streams and periodically think about our future – but we are not very enterprising. Stage 4 – We take an innovative approach to generating income from new markets and regularly evaluate our future. Stage 5 – We have a sustainability policy with a variety of strategies for the future. We seek to innovate and engage stakeholders to further our aims. Stage 5 – We have a sustainability policy with a variety of strategies for the future. We seek to innovate and engage stakeholders to further our aims. Internal Activities Structure Question 1: Our internal structure is organised to support the ways in which we work. Organisations bring together people (with different skills), resources (finance, assets) and technologies to deliver products and services. Coordination of these is essential. Internal structure can hinder or help the flow within an organisation. This question assesses how well your internal structure is managed to support an effective working environment.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – We don’t have a defined structure or any co-ordination. Stage 2 – We adopted a structure and have never reviewed it. Stage 3 – We occasionally review our structure and the ways in which we are co-ordinated. Stage 4 – We periodically review our structure and the ways in which we are co-ordinated in line with the needs of the organisation. Stage 5 – We are sophisticated in our methods and constantly consider how suitable and ‘fit for purpose’ our organisation is for achieving our goals. Communication Question 2: We have clear internal communication processes Communication in organisations is important and requires careful planning and management. Effective communication helps to keep people informed and motivated about the impacts towards organisational objectives, mission and values. It helps to improve employee commitment to the organisation and support to translate decisions into actions. This question assesses how you communicate across the organisation. You should reflect on current techniques and infrastructure.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – There is no need for communication analysis, we just do what we do. Stage 2 – Communication is ad hoc and informal. Stage 3 – There tends to be one dominant way. Stage 4 – We have certain methods of communication for certain purposes – it is a planned approach. Stage 5 – We are continuously assessing the best methods of communication in order to benefit and motivate our people. Quality Question 3: We have a commitment to quality The control and evaluation of quality is often regarded as an important aspect of operational management. Quality of service is imperative to the long term sustainability of your organisation – especially in competitive markets. Issues of quality management are also pre-requisites to many income source opportunities. This question is concerned with how you manage the quality of the services you provide. You should reflect on the current practices and methods you use.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t do anything special to manage quality. Stage 2 – We have an informal approach to quality, people pick up what’s acceptable. Stage 3 – People are trained to understand the importance of quality. Stage 4 – We have a quality management policy. Stage 5 – We are sophisticated in our methods and use various approaches to quality management to continuously improve our performance (Kaizen, quality circles etc). Audited Standards Question 4: We use audited standards (PQASSO, IIP, SAA) Audited standards may serve a variety of purposes for social organisations. Implementing externally audited and verified standards, such as IIP (Investors In People), PQASSO (Practical Quality Assurance System for Small Organisations) or SAA (Social Accounting and Auditing) can support your profile with stakeholders and ultimately improve your organisations processes. Audited standards may also serve as a pre-requisite for gaining new business and are a component of many tender specifications. Moreover, audited standards may help attract, retain and motivate staff – demonstrating a level of professionalism.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t have audited standards. Stage 2 – We are looking at the benefits of adopting an audited standard, such as PQASSO, SAA or IIP. Stage 3 – We are working towards adopting an audited standard, such as PQASSO, SAA or IIP. Stage 4 – We have adopted an audited standard. Stage 5 – We have adopted a range of audited standards that fit with our infrastructure and organisation goals and market. Flexibility Question 5: Our infrastructure is flexible to meet changing times There is a need to respond quickly to changing market conditions without sacrificing quality or delivery. Are you ‘fit for purpose’? Are you ‘fit to deliver’? Is your constitutional form a hindrance to undertaking new market opportunities? This question assesses your ability to adapt to new market demands. You should reflect on your current flexibility in light of the needs of the sector and your services/products.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we do what we do. Stage 2 – We act as and when in crisis situations. Stage 3 – We try to be as flexible as possible within our constitutional form. Stage 4 – We review our flexibility as an organisation periodically and consider how ‘fit for purpose’ we are, in line with our constitutional form. Stage 5 – We regularly review our flexibility so that we can quickly respond to changing needs adapting our organisation to respond to market forces and our independence and mission. Performance Measures Question 6: We monitor our ways of working and evaluate our performance on a regular basis. Targets and measures are important indicators for monitoring organisation performance. Demonstrating multi-bottom line indicators:- financial; social; stakeholder; environmental; innovation (new services/new markets) is a tall order and there are many tools to choose from to cover different aspects such as SROI (Social Return on Investment) to capture social value measures towards achieving your social objectives. Data collection and measurement are essential for improving outcomes and outputs. Performance evaluation is not merely trying to achieve more, it is also about proving what you do as an organisation. This question assesses the level of performance measurement you have. You should reflect on the indicators you have for measuring your success and which tools you use (SROI, SAA, Balanced Scorecard).Question 2: We keep abreast of sector knowledge(Required) Stage 1 – We don’t make any effort to monitor or evaluate internal performance. Stage 2 – We occasionally review what we do but dont use specific measures. Stage 3 – We periodically monitor the way things are done using one main tool. Stage 4 – We have a standard set of key performance indicators enabling us to compare our performance year on year utilizing more than one tool. Stage 5 – We are sophisticated in our methods and utilise performance management techniques on a regular basis to inform and continuously improve our organisation using many tools in the process. Learning Training Question 1: We have a commitment to training and development Recent social enterprise research from the DTI reveals that business success often hinges on the skills base within the organisation. Making training and development opportunities available that are properly evaluated are one of the best ways of encouraging people within organisations. This question asks you to reflect on the views you have about training and developing the people within the organisation.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t feel we need it. Stage 2 – We have on-the-job training but there’s no grand plan. Stage 3 – We have an informal development plan. Stage 4 – We have a formal staff development policy. Stage 5 – Our approach to staff development encourages a learning culture in the organisation through the provision of a wide variety of training opportunities. Participation Question 2: We encourage participation and team-working The workplace is a collection of people with differing abilities, attitudes and skills. Organisations should not lose sight of the fact that development is about more than individuals but also about encouraging people to share learning within (and across) teams working towards specific goals and social purpose. This question asks you to reflect on your efforts in building and developing team based working.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we just do what we do. Stage 2 – Our organisation involves specific tasks and people informally come together to co-ordinate shared goals and purpose. Stage 3 – The people in our organisation come together in groups/teams to share goals and purpose – but we could improve participation. Stage 4 – We try to run the organisation through teamwork and participation. Stage 5 – Team working and participation forms the main organisational arrangement, reflecting our people centered management strategies. Knowledge Question 3: We learn through both internal and external knowledge Traditionally, organisational learning was internally focused, neglecting the essential contribution of external information from the interaction with other people, networks and organisations. External knowledge may be provided by lawyers, consultants, accreditation bodies, academics and other agencies. This question asks how your organisation interacts internally and externally.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – We learn on the job, we never look externally for advice. Stage 2 – We informally learn internally and have made use of external knowledge once or twice – or specific knowledge from one or two sources. Stage 3 – We make use of informal networks of external bodies to provide support and influence our knowledge. Stage 4 – We encourage networking across the sector by engaging with a variety of organisations to influence us and build our knowledge. Stage 5 – We are sophisticated in our methods and always encourage learning from external networks and partnerships at various levels in order to influence our internal capabilities. Learning Culture Question 4: We have a creative and learning culture A ‘learning’ organisation engenders a creative and innovative atmosphere. This question focuses on encouraging a learning culture. The creation of a climate in which people have a desire to learn and an organisation that shares its collective knowledge is highly desirable. You should reflect on the ways in which people learn within your organisation.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – Not actively – learning is down to the individual. Stage 2 – We occasionally seek opinions from our people. Stage 3 – We are trying to encourage ways of developing creativity and learning. Stage 4 – We annually review the opportunities in our organisation for people to express their creativity and learn. Stage 5 – We are constantly aware of the need to harvest a creative and innovative culture through liaison with our people and stakeholders, Leadership Question 5: Leaders inspire a learning culture Effective leaders are instrumental in creating the culture and environment for people to express themselves and work to the best of their abilities towards the organisational goals. Leaders, therefore, have considerable power and influence in creating, encouraging or hindering performance. You should reflect on the leadership skills within your organisation. Leaders should have a commitment to involve, communicate and inspire people across the organisation and beyond.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – Leadership isn’t one of our strengths. Stage 2 – Decisions are made by the management and board, then fed down through the organisation. Stage 3 – We are beginning to think about a culture where key people have a duty to inspire others. Stage 4 – We are working towards the right atmosphere where key people can inspire others to achieve their goals. Stage 5 – We are successful at inspiring people and champion a learning culture through encouraging and co-operative leadership. Continuous Improvement Question 6: We seek to continually improve our organisation as a whole (our people, our services, our social impacts) Continuous improvement is an attitude undertaken by people within organisations. How successful you are at this task will depend on the level of participation and effort towards adopting a natural and proactive attitude to development, that is not forced. You should reflect on how your organisation develops and how improvements are made.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – It’s not something we have thought about. Stage 2 – We address things as they happen. Stage 3 – We try to encourage people to help improve the organisation. Stage 4 – We have systems in place to help encourage and foster continuous improvement. Stage 5 – We have a continuous improvement philosophy which is embedded in our organisation orientation. Income Diversification Income Streams Question 1: We analyse, cultivate and diversify our income streams to be an independent and sustainable organisation This question asks how much your organisation knows about its current income streams in relation to analysing your dependencies and your sustainability. Do some income streams meet your social objectives more so than the surpluses necessary to support the ongoing viability of your business? Have you balanced these with other sources of funding where a good surplus is made? How much attention and analysis do you give to this task? Do you try to diversify your income?Question 2: We keep abreast of sector knowledge(Required) Stage 1 – We grab what we can to survive Stage 2 – We have an intuitive feel for how our current income streams contribute to our organisational sustainability, we do little to change it or don’t know how to. Stage 3 – We occasionally review how our current income streams contribute to our organisational sustainability. We are working towards ways in which we can diversify our income streams. Stage 4 – We annually review and analyse how our current income streams contribute to our organisational sustainability. This involves looking at income diversification and setting targets for new markets, new products and services or new ways of doing business with current and new customers. Stage 5 – We are sophisticated in our practices and continuously analyse our income streams in line with our (internal) strategic objectives, sustainability targets and our mission and also (externally) for new opportunities in the market, setting SMART objectives for new markets, new products and services or new ways of doing business with current and new customers. Entrepreneurship and Market Innovation Question 2: We are entrepreneurial and innovative, which is reflected in the diversity of our income streams This question asks if your organisation is currently able to act entrepreneurially. This might take many forms. How creative are you at shaping, re-shaping or designing new services? How innovative is what you do? Are there new ways of re-packaging what you do for new markets? Have you looked for sources of income that you have not traditionally targeted?Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No. We struggle to survive and the thought of competing in a ‘market’ is frightening. Stage 2 – We seem to cope and occasionally looked at alternative services we can provide but it is hard to know what opportunities are out there. Stage 3 – We occasionally review what we do and who with. We have started to change the mindset within our organisation, to recognise that we need to be more entrepreneurial and market ourselves better and re-shape our services to appeal to alternative sources of income. Stage 4 – We annually review what we do and who with in order to be ‘fit for purpose’ in the changing environment for social business. This review includes an analysis of the markets we operate in and how we can diversify and innovate in order to maximise the opportunities. Stage 5 – We are sophisticated in our practices and have the ability to be entrepreneurial, innovate and early to market, positioning ourselves and competing for (and delivering) new services. This includes proving our value, our performance (financial and social) and maximising our opportunities to showcase our achievements. Strategic Positioning and Opportunity Recognition Question 3: We are pro-active and tactical in researching, recognising, finding and exploiting income opportunities This question asks about your tactics; (a) about alert systems, and how aware you are about the opportunities in the market for your organisation to win work and deliver the services you provide (b) how those opportunities are analysed in order to respond appropriately, taking into consideration the social purpose of your organisation; the resources at your disposal to deliver, the length, breadth and budgets associated.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we just do what we can with what we can get. Stage 2 – We have an intuitive feel for how well different opportunities fit with our organisational ethos. We might consider one or two things; such as how long or how much. Stage 3 – We occasionally research and review how well different market opportunities fit with us. We consider three or four things; such as how long, how much, what surplus we can make and what capacity we’ve got to deliver. Stage 4 – We have an opportunity alert system, research and review how well different opportunities fit with us. We try to get to know fund holders. We know some types of income are restricted to certain outputs. We know some types of income require more time and resources to win that others. We know some types of income are less competitive than others. We know some types of income will be at less than full cost recovery. Stage 5 – We are sophisticated in our practices and are fully aware how well different opportunities fit with us. We get to know fund holders, seeking to build lasting relationships. We have a solid alert and scoring system for new opportunities that looks at the fit with our ethos and values, our capability and capacity and what outcomes we can achieve in relation to the ability to deliver the outputs required. Structure, Capability and Skills Question 4: We have the right structure, capability and skills to diversify what we do to maximise opportunities and manage a range of income sources This question asks if your organisation is ‘fit for purpose’, ‘fit to deliver’, if it has the right structure, capabilities and skills to make as much of new market opportunities as possible. How often are these issues reviewed in your organisation? What are the skills sets of your staff and board? What skills sets do you need to exploit new market opportunities? What rules are you bound to under your articles of association?Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No. We have the skills to deliver but not the skills to take the organisation beyond what we do. We have no idea if our legal structure is fit for purpose. Stage 2 – Our capability to diversify is limited by either skills or our legal structure. Stage 3 – We occasionally review our skills and capabilities. We know what skills we have and think we know what we need to maximise opportunities and diversify our income sources. We need to review our legal structure for the appropriateness of income sources we target. Stage 4 – We annually review our capabilities and skills sets across our people (including board). We monitor opportunities in our field and make appropriate moves to capitalise on the opportunities. We have the right legal structure for the appropriate income sources we target. Stage 5 – We are sophisticated in our practices and have the capability and skills to diversify what we do to maximise opportunities and manage a range of diverse income streams. This includes reviewing our income sources and the opportunities there are to diversify in relation to the skills sets of our people (including board) and the changing requirements of the stakeholders. We have the right legal structure for the appropriate income sources we target. Governance Legal Responsibility Question 1: Our board understands their responsibilities in terms of the legal issues, policies and governing rules of the organisation and conducts themselves accordingly In being legally responsible for the enterprise, Directors should be able to assure at least themselves (and others) that they are ‘fit for purpose’ – this not only means understanding their responsibilities as determined by the regulatory body relevant for their adopted legal form, but also that the enterprises’ rules allow them the powers needed, and as a social enterprise that they are able to manifest and protect the enterprises’ defining values.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, Directors are unaware of their responsibilities both legally and strategically Stage 2 – One or two take on more responsibility than others and one or two know their legal responsibilities more than others Stage 3 – The majority of the board are broadly aware of their legal responsibilities as Directors/Trustees of the organisation Stage 4 – The majority of the board are well aware of their legal responsibilities as Directors/Trustees of the organisation and act appropriately at all times Stage 5 – We are sophisticated in our approach to board excellence, which means that all Directors/Trustees of the organisation embrace their legal responsibilities and act accordingly and appropriately at all times Board Recruitment and Diversity Question 2: We have a policy that is regularly reviewed in line with organisational strategies that clearly identifies social participation/representation and specific roles with differentiating specialisms While the governing body of any enterprise is elected from and by its Members, it can sometimes be the case that these two groups of people become one and the same. However, social enterprises should be mindful of both the ‘social/community’ and the ‘enterprise/market’ when recruiting for board members. They should also be able to draw confidence and assurance from their having been mandated to direct the enterprise through being elected by its Members to the Board.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we get who we can Stage 2 – We have an idea of the types of people we want on our board, it is not formalised in any way Stage 3 – We are working towards developing a more strategic approach to recruitment, which will aim to broaden the diversity of our board – both socially and professionally Stage 4 – We have a recruitment policy that is reviewed annually Stage 5 – We are sophisticated in our approach to board excellence, which means that our recruitment strategy is regularly analysed against the changing environmental needs of the organisation, clearly identifying social participation/representation and specific roles with differentiating specialisms. Board Skills Analysis and Development Question 3: We invest in our Directors/Trustees, whereby board skills analysis informs training and development plans for each individual concerned Given the importance that the Board plays in ensuring the success of the enterprise, it is vital that they collectively have the relevant skills, knowledge and ability to strategically manage it. Ideally, Boards should undergo periodic ‘audits’ in respect of their skills and competencies to identify any gaps/needs, and the enterprise is subsequently able to identify resources to address these. This is not just a ‘nice to have’, but crucial as the Board are taking legal responsibility for the enterprise – they need to be able to assure themselves that they are at least ‘up to the job’.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, no budget – the board are who they are and have what skills they have Stage 2 – Training and development for Directors/Trustees is ad-hoc, rarely coordinated for the individual, usually legal responsibilities that frightens people, so we don’t encourage it Stage 3 – We are working towards, when finances allow, developing a range of training opportunities for our board that covers a range of areas of development Stage 4 – We have an annual budget, providing training and development opportunities for our board that covers a range of areas Stage 5 – We are sophisticated in our approach to board excellence, which means that through skills analysis individual board development plans are drawn up for all Directors/Trustees of the organisation, with clear targets and are annually reviewed. Board Meetings Question 4: We have regular, structured, time bound, well managed board meetings that includes; agendas, documented minutes and clear, specific actions that are communicated across the organisation Directors need to remain appropriately informed if they are to fulfil their responsibilities in terms of not only the types of information they receive, but also the frequency they receive it. The frequency and structure of Board meetings should be appropriate to the enterprise, its size, stage of growth and strategic direction, and there should also be support available to Directors to ensure that they can gain any needed skills or to enable them to participate in meetings with their colleagues.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, board meetings are as and when, and discussions are kept between the board, nothing is documented Stage 2 – We hold fairly regular board meetings, poorly attended, the minutes are not always documented, are not distributed widely, or clearly state specific actions Stage 3 – We are working towards regular, structured, time bound, board meetings that includes documented minutes and clear, specific actions Stage 4 – We have established regular, structured, time bound, board meetings that includes agendas, documented minutes and specific actions that are communicated between the board Stage 5 – We are sophisticated in our approach to board excellence, which means that we have regular, structured, time bound, well managed board meetings that includes agendas, documented minutes and clear, specific actions that are communicated across the organisation in line with our transparent culture and organisational philosophy Policies, Systems and Structure Question 5: There are several policies, there are systems in place and there is a clear structure that everyone concerned understands There are advantages in developing clear policies, systems and structures across the Board of Directors/Trustees. These can be helpful and enabling, not disenabling or bureaucratic in fostering Board awareness and a sense of responsibility of actions. Having structure in place supports Board induction, provides guidance and guidelines for behaviour internally. Having structure in place also supports transparency and accountability of behaviour externally.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, our board just do what they can Stage 2 – There are a few unwritten systems and policies, with an intuitive structure to how the board operates Stage 3 – We are working towards developing specific policies, taking a more systematic approach that will bring about a more clearly defined structure to the board Stage 4 – We have clear policies, systems and a structure that is reviewed annually Stage 5 – We are sophisticated in our approach to board excellence, which means that we have several policies, have clear systems that provide clarity to our operations as a board and we have a clear structure that everyone concerned understands Strategic Management and Decision Making Question 6: Our board have a clear strategic management function, where decision making is guided and informed by operational manager/s and associated stakeholders where necessary It is very easy for Boards to begin to focus their attention on the day to day management issues and decisions of the enterprise they are responsible for, but this invariably means that they lose sight of their ability and role in focusing on setting and reviewing the strategies it needs to achieve the pursuit of its goals. Board members should be aware of the importance of distinguishing between strategic and operational management issues, and be able to trust paid staff and volunteers to manage the enterprises operations while they ensure that they remain aware of the ‘bigger picture’ and how to appropriately position the enterprise within that.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, our board are generally distant from the activities of the organisation and are totally led by the operational team Stage 2 – Decision making tends to be a grey area – one or two of the board take on more responsibility than others and one or two tend to make strategic decisions, sometimes guided by the operational manager/s Stage 3 – We are working towards developing a greater sense of demarcation between the responsibilities and strategic function of the board and the role that operational manager/s play in informing and guiding board decisions Stage 4 – Generally speaking, our board have an established clear strategic management function, where decision making is guided and informed by operational manager/s where necessary Stage 5 – We are sophisticated in our approach to board excellence, which means that all board members are fully aware of their strategic management function, where decision making is guided and informed by operational manager/s and associated stakeholders where necessary that is in line with our transparent culture, organisational philosophy and accountability to stakeholders Visioning Business Plans Question 1: We use business plans Business plans help to communicate ideas to others and provide the basis for financial proposals. A business plan acts as a guide during business start-up or growth by formally expressing strategic, operational and financial information. There is, however, no such thing as a standard business plan. Each plan must be tailored to a particular circumstance. Nevertheless, most plans have a great deal in common and are useful communication toolsQuestion 2: We keep abreast of sector knowledge(Required) Stage 1 – No, never have. Stage 2 – No, we don’t have a plan at the moment but we did at one time. Stage 3 – We have a business plan but it is not up to date. Stage 4 – We have a current business plan. Stage 5 – We use business plans to co-ordinate our activities for the future which includes projections and opportunities, financial statements and potential income sources, marketing plans and market research, and social accounts – all of which are communicated across our organisation. Mission Statements Question 2: We have mission statements The mission statement captures the aims and goals of an organisation. It is a guiding sentence, paragraph or document that summarises and articulates visions and objectives. This question seeks to assess if mission statements are articulated for achieving maximum social impact in your organisation.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we don’t have one. Stage 2 – We have unspecified aims informally known. Stage 3 – We have a mission statement but have never particularly promoted it. Stage 4 – We have an up to date mission statement that is annually reviewed in line with our organisational goals. Stage 5 – We are sophisticated in our methods and have mission statements that encompass our aims, goals and objectives. Strategies are linked to each point and are regularly reviewed. Communication Question 3: We strive to communicate our vision Effective communication helps to create an accountable and balanced culture with people central to the organisation. Key to the success of communication is: (1) Informed stakeholders (2) involved and focused internal people that understand, support and strive to achieve the vision. This question seeks to assess the level of communication in your organisation.Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No, we haven’t thought about it. Stage 2 – It’s quite informal and unspoken. Stage 3 – It is informal knowledge within the management and board. Stage 4 – Our vision is common knowledge within and outside our organisation. Stage 5 – Our visioning is communicated internally and externally through a variety of means. Balance Question 4: We strive for balance across the organisation This question completes the diagnostic assessment. The aim of the exercise has been to identify the key characteristics of your organisation and to establish areas of strength and weakness. As the name of this tool suggests ‘balance’ across these key competency areas is the ideal. How balanced do you think you are?Question 2: We keep abreast of sector knowledge(Required) Stage 1 – No idea. Stage 2 – We’d rather not know – it might frighten us! Stage 3 – We have a rough idea of where our strengths and weaknesses lie. Stage 4 – We try to balance our organisation in terms of these areas. Stage 5 – We strive for balance through a number of key indicators within this diagnostic and review our performance twice a year.
