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JHP Group Ltd

JHP Group Ltd. Option A – Sub Contracting to Large Providers John Deaville September 2010. Issues to Consider. Management Fee! What you get for the fee? Can you save money? Ambition of your organisation (and the contracting organisation) Risk Contracting terms Cultural Fit and Values.

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JHP Group Ltd

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  1. JHP Group Ltd Option A – Sub Contracting to Large Providers John Deaville September 2010

  2. Issues to Consider • Management Fee! • What you get for the fee? • Can you save money? • Ambition of your organisation (and the contracting organisation) • Risk • Contracting terms • Cultural Fit and Values

  3. JHP Group Ltd • Established 26 years ago, was privately owned until January 2010 • Trading at a £80M run-rate • £42M Skills and £38M Employability (DWP, JCP etc) • Head Office in Coventry – delivery across all of UK (apart from NI) • 1,200 staff, 120 business centres • Learner starts of over 24,000 per annum

  4. JHP Group Ltd • Deliver Apprenticeships, Train to Gain and Commercial • Sectors • Health and Social Care (largest UK provider), Customer Service, Business Admin, ITQ, Retail, Logistics, Team Leader, Call Centre, Security • Excellent portfolio of large employers • Public Sector – Local Authorities, MoJ, MoD, Home Office • Private Sector – Sainsbury’s, RBS, More Than, EoN

  5. JHP Group Ltd • Success Rates above national benchmark for NVQ and Apprenticeship delivery • Length of stay shorter than average benchmark • Ofsted Grade 2 • Above MLP in all areas

  6. Sub Contracting – Why JHP are interested? • Width and depth of offer • Different sectors, Levels, Ages • Growth of our business • Platform for growth • Generate value from investment

  7. Our supply chain experience • Manage over 30 providers • Sub contract over £6M of contract value • Job Centre Plus Support Contracts • Merlin Standard in W2W • Also act as sub contractor (Serco, Work Directions etc)

  8. Our approach to sub-contracting • Alignment of Values • Want to add value • Utilise JHP’s investment and infrastructure • Economies of scale and discounts • ‘Pick and Mix’ approach • Call off services • Supportive supply chain management • Open minded to:- • Existing quality (though not in long term) • Size and scale • New sectors

  9. Contract Delivery

  10. Added Value • Business Development • Access to funding (ESF, etc) • Partnership opportunities • Welfare to Work • £120M contracts in last 2 years • Shared Services • Influence in the Skills market • Safeguarding, E&D etc.

  11. Performance Management • Sub Contractor Charter • SLA / contract driven • Clear and transparent processes • Not bureaucratic • Level of interaction will depend upon • Services and support deployed • Digital dashboard • Starts, Timely Completions, Use of Funding, Out of Funding, Learner Progress

  12. Governance • JHP Supply Chain Management Board • Chaired by member of supply chain • Holds JHP to account for • Adhering to supply chain processes and procedures • Delivery of support services • Future development of supply chain • Chair takes place on JHP Senior Management Team • Reward and incentive scheme

  13. Management Charges – our spend

  14. Contracting • Management charges will depend on risk as well as services provided (circa 13% for lowest risk provider with minimum services) • Contract Level maintained subject to performance (MLP, 12 months to improve) • Management charges can vary • Down • Your performance is better than JHP • Systems and processes improve • Up • Systems and processes worsen • Additional growth (higher only on the growth)

  15. Thank You

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