Professional Documents
Culture Documents
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Shared ownership in practice: case studies
support from the Council was withdrawn. Personal experience in the private sector gave the
service manager a familiarity with business planning and with models of shareholder
ownership; but from the outset she felt that the nature of the Pearls service and its operation
in the community as an organisation collecting reusable’s from local businesses, for reuse
with local children by local play and education providers, spoke to a model of ownership
which built in wider social benefit.
Initially the manager and employees hoped to adopt a multi-stakeholder model with local
education and childcare providers having a stake in ownership and potentially some
remaining ownership on the part of the Council with whom the employees had positive
working relations – this would also have enabled the toy library element of Pearls services to
continue, which was not looking viable under a model of ownership that had no Council
stake.
After appraising the options available and in the face of condensed timescales as the
deadline for transition was moved forward, it was suggested to the Pearls service that the
model of a workers cooperative would provide a structure that could be transitioned to
relatively quickly, which locked in community purpose and which may open doors to some
capital for the first few years of operation, helping replace the funding of the Council as the
organisation established itself.
What have been the major challenges and key success factors?
An initial hurdle for employees and Council staff supporting the options appraisal process,
was knowing where to go for advice about options for shared ownership and from where to
access the right support mechanisms to make any such transition a reality.
After initial business modelling, the employees needed help and support with options
appraisal and, once they had decided upon and set up the workers cooperative structure
(pre-transition in shadow form), they needed independent support for their negotiations with
the Council.
To an extent the model of workers cooperative was deemed appropriate because of the help
and support available in the North West for cooperative structures in the form of grants and
external advice and consultancy to realise the transition.
The second major challenge centred on discussions with existing staff about who might want
to transition, and on TUPE and pensions. Existing staff had differing personal circumstances
and whilst a core knew from the outset they wanted to attach themselves to a model of
shared ownership, others took longer to make the decision to join or to find alternative
employment. This decision was partly influenced by negotiations around terms and
conditions –during options appraisal and business planning, it became clear that Pearls once
independent, would be unable (at least in its first few years) to maintain the same terms and
conditions for staff as they had under Council employment; the staff were willing to accept
lesser terms and conditions in order to maintain and take ownership of the service, but
negotiations with the Council, who were concerned about liability, required technical support
to pass.
Contributing to the success of the negotiations and transition process was the working
partnership working from the outset between the Council and Pearls employees. Both the
Council representative (the former line manager of Pearls staff) and the employees of Pearls
themselves spoke about the value of collaboration at the options appraisal stage. The
transition process was facilitated by cooperation on both parts and by dialogue between the
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Shared ownership in practice: case studies
Council and former employees about the kind or organisation they would both like to see
available to the community.
This partnership approach to planning and appraisal (and the support further into the process
from external advisors) generated a strong business case for the transition; during
negotiations, the justification and incentives the Council needed to transfer assets to the new
workers cooperative, were made clear; when the idea was taken to elected members and
heads of service, this business case and meticulous attention to detail, simplified the
transition.
Finally, success was due in no small part, to leadership and management throughout the
externalisation by existing managers of the Council run service. They took the lead in options
appraisal and in organising the new workers cooperative and balanced this effectively with
the continued delivery of Council services throughout the transition.
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