Nacro Paul McDowell, Chief Executive 30 November 2011

1. Nacro Paul McDowell, Chief Executive 30 November 2011

2. Who we are…

3. We are Nacro…

4. The Crime Reduction Charity

5. Nacro, the crime reduction charity • We are a team of more than 1,500 people, a network of staff, volunteers and partners who dedicate their lives to reducing crime and changing lives in hundreds of communities across England and Wales.

6. What we believe…

7. Our belief • We exist because of the devastating affect crime has on individuals & communities. It creates victims, shortens lives, divides communities, builds fear & hostility, & stifles opportunity. • Once you’re involved in crime, it can be difficult to get out. Once you’ve been a victim of crime, it can stay with you forever. But people do have the capacity to change, and communities can be brought closer together.

8. Our mission…

9. ….reduce crime change lives….

10. By reducing crime we change lives By changing lives we reduce crime • When we succeed, everyone benefits: • victims and potential victims • the wider community • the economy • the person in trouble • their family • their children • people around them

11. Our values…

12. Our values • equality & excellence • in everything we deliver • accountability • we stand by the actions we take and keep our promises • inclusion • we reach even the hardest to reach • courage • we take action • challenge • we make people think • care • the impact we have on individuals and communities matters

13. How we want to be perceived…

14. How we want to be perceived • A charity with a compelling call to action to reduce crime and change lives in communities. So money follows mission. • The thought leaders in our field. We shape and influence the agenda. • The ‘go to’ charity for commissioners who need to reduce crime and change lives in local communities.  

15. How we want to be perceived • The charity where the brightest thinkers and the most skilled practitioners want to work • A modern charity, ahead of its time, down to earth and practical, growing and enterprising, achieving the best outcomes with like minded delivery partners

16. What we do…

17. What we do • We get involved and take action on the ground wherever people and communities are in trouble.

18. What we do • ‘People in trouble’ • young people who live in a high-crime neighbourhood, have come to the attention of the police, have poor academic attainment and are excluded from school • adults who have entered the criminal justice system, having been arrested for or convicted of an offence/s

19. What we do • ‘Communities in trouble’ • high rates of: antisocial behaviour; neighbourhood crime; drug and/or alcohol misuse; or violence (including gangs, guns and knives) • high proportions of arrest; conviction; imprisonment; or prolific and other priority offenders

20. What we do • We change attitudes & behaviours • We create opportunities for people in trouble to give something back, make a positive contribution & move on. • And by doing more of what we do, with more of the people who need us, we show how we reduce crime and change lives in more and more communities

21. We intervene before, during and after people are in trouble • Before • young people get into trouble, we get in early; steering them away from drugs and crime, and creating new opportunities. • During • prison and community sentences, with young people and adults, we challenge them to stop, helping them cope without turning to crime, and creating chances to give something back and move on. • After • serving the sentence, with prisoners, we help them settle back in the community, find a place to live and have the chance of education, training and a job.

22. The focus of our work

23. Our strategic priorities…

24. Our strategic priorities • We want: • to grow: working with more people in more places • more impact: demonstrating our success in reducing crime and changing lives • more influence: the thought leaders in our field • to deliver: a reputation for best practice

25. Our strategic priorities • We need to be: • financially sustainable as defined by an operating surplus that funds growth and sustainability • growing faster than our closest competitors • developing a strong supporter/donor base • delivering innovative, quality services that reduce crime

26. Our strategic priorities • We need: • a strong brand: which clearly articulates who we are, what we do and what we stand for • the right structure: fit for purpose with the right people in the right places • positioning: with Government; in the media; in the market & with donors • A strategic culture: analysing, planning and intervening

27. Our strategic priorities • We need to improve capacity to: • plan and programme manage • communicate and engage externally and internally • deliver local services on the ground • win big ticket as well as local contracts • balance small and local with large and national

28. Our strategic priorities • We need to develop: • expertise to intervene before, during and after people are in trouble • new services in offender management and resettlement as well as prevention and early intervention

29. Our strategic priorities • Growth: winning new business & generating voluntary income • Innovation: developing new products and services • Excellence: contract management performance • Voice and influence: challenging the status quo for the benefit of the people we work with • Organisational competence : One Nacro • Diversity & Inclusion • Financial Management: sustainability

30. The changing landscape • Commissioning environment shifting • Public Spending Cuts/Recession • Mergers, acquisitions and market place shrinkage

31. The changing landscape • We saw the same happen in the Housing market place. • It is highly likely to be repeated in the criminal justice market place

32. The changing landscape • But there are also significant opportunities • For instance payment by results (PBR) • What could PBR mean to voluntary sector?

33. Payment by results • What are the advantages of payment by results? • What are the implications for us all? • What are the complexities and difficulties? • Ironically, one of the biggest advantages of Payment by Results is also the thing that makes us cringe.   • That it brings simplicity into an inherently complex world.

34. Payment by results • Historically we put a great deal of energy into reassuring our clients that our methodology was sound • But found they were not overly concerned about this • What they were interested in was whether or not we delivered what we said we would deliver - inputs

35. Payment by results • Under PBR those commissioning services, the investors, will focus purely and simply on outcomes. • The preoccupation with what is being delivered and how it is delivered is left to the provider.  • To win work and get paid down the line, the provider will have to have programmes in place which they believe, based on evidence, will bring about the right outcomes.

36. Payment by results • Focus on outcomes – reducing crime, reducing reoffending, securing jobs, securing safe accommodation – puts partnership working on a very different footing. • Those investing in the service and those providing have towork together to define the outcomes, making certain they are both realistic and measurable and that they match risks and needs.

37. Payment by results • As in the business world, investors intervene. • They get involved to turn a situation around. • They ensure the focus stays on the outcomes. • They provide help and support, without getting bogged down in managing the service themselves. • Providers have to develop strong, coherent, strategic and delivery partnerships which stand up to rigorous scrutiny.

38. Payment by results • Under payment by results, providers have the freedom to develop new and innovative partnerships. • Partnerships where the constituent organisations have worked out what’s in it for them in being involved and what unique contribution they will make to the programme overall. • They will have to choose strong partners who will strengthen their delivery, enhance their reach and build their credibility, while complementing each other’s brand.

39. Payment by results • And yet, there are very few charities, national, local, large or small, who could immediately take on the business and financial risks of Payment by Results on their own. • Joining up with organisations that are bigger and stronger than ourselves via joint ventures, special purpose vehicles, social franchise and consortium arrangements has to be on the agenda.

40. Payment by results • So the challenge for the voluntary sector is to gear up for this • And to shift its emphasis away from “can we find someone to continue funding what we are already doing” to: • Will anyone want to buy and make use of our products and services? • Are there enough people out there who will want to buy what we do? • Can we provide our services within prescribed costs and quality guidelines?

41. Payment by results • And so the advantages of payment by results include: • A shift of emphasis from commissioning to investing • New terms of engagement between commissioners and providers • A different level of partnership working and • Outsourcing on a scale we haven’t known before

42. Payment by results • Some implications I haven’t yet touched on: • One: Payment by Results lends itself to locality based thinking. In order to define and deliver measurable outcomes, you have to be able to confine your targets within clear and measurable boundaries. This is what they’ve done in Peterborough with the Social Impact Bond

43. Payment by results • Two: We should not underestimate the level of difficulty in applying payment by results to something as complex as reducing offending. • We know prevention and early interventions are difficult to measure, short term

44. Payment by results • Three: the problem of creaming – where Payment by Results tempts providers to target people they find easier to work with at the expense of harder to reach and harder to help individuals. • Undoubtedly this is something we should guard against but in the Social Impact Bond example, the investors have taken control of this and are incentivising work with more difficult offenders.

45. Payment by results • Four: And this is important. At a time of recession, there may not be enough money to make it work. • When we put a stake in the ground and project that our programmes will reduce reoffending by x per cent, the type and combination of services we’re going to need to achieve those results will inevitably be expensive. If the funding isn’t available to fund all of it, compromises will have to be made. By definition, this will impact on the final outcome.

46. Payment by results • We must not discount payment by results on the grounds that it makes us instantly cringe • We should see it as a journey, along which we are already travelling, from activity based funding through market testing, to notions of transferring risk to suppliers, and on to payment in exchange for outcomes

47. Payment by results • Tackling reoffending will always require a patchwork of interventions from, preventative to rehabilitative, big and small, national and local, intensive and generic, covering different levels of risk and different types of need. Some of these will lend themselves to payment by results more than others.

48. Payment by results • We should celebrate the opportunity to bring some simplicity into our complex reality and to bring in new people with fresh ideas, and it may do no harm to embrace the language of investment because if we get this right we are indeed investing in our future.

49. Payment by results • And we should get involved in the debate. • The devil really is in the detail • This is such a complex area that Government has yet to work through it all. • So there really is an opportunity to shape the future

50. Nacro – The Crime Reduction Charity Paul McDowell, Chief Executive 30 November 2011