Co-operative Foundation Trusts Membership Representation

1. Co-operative Foundation Trusts Membership Representation Mick Sheldon The Co-operative College

2. Presentation Overview • How co-operative principles link to the NHS and its membership • Foundation Trusts and:- • Membership Representation • The Co-operative Model • Co-operatives & Mutuals Today • The Co-operative College Offer • Questions & Answers

3. Foundation Trusts and the co-operative Model • NHS established 1948 • FT’s created May 2002 and first used in 2003 (Community Health & Standards Act) • Currently 122 Foundation Trusts embrace the Co-operative Model (Monitor Website) • 1.25M + members across England

4. Co-operative College Background • Co-operative Movement 1844 (Rochdale Pioneers) • Co-operative college established 1919 • Supporting co-operative (worker & consumer), Mutuals and Social Enterprises • Vision – “To be the world leader in co-operative Learning” • Recently worked with FT’s on Governor and membership development

5. Co-operative / NHS Principles

6. Governors Representing Members • Main Duties and responsibilities of the board of governors DH (2002)… • Establishing mechanisms for consulting the members! • Holding at least one meeting a year that is open to all members to approve annual report and accounts and the appointment of an auditor. The board of governors… need to be skilled and practised in stakeholder engagement, consultation and engagement. (the college can help!!)

7. Size no problem… The Co-operative Group • Largest Co-operative Organisation in the UK • Recent Developments • Purchased Somerfield in July 2008 • 8% Grocery Market Share • Annual Sales in Excess of £7 Billion • Merged with Britannia to create biggest Finance (Super Mutual) in UK

8. Current Situation for Co-operatives http://www.ica.coop/coop/statistics.html

9. Co-operative Performance During Recession • 5% increase on previous year, around 4,820 co-operatives generated £28.9bn of business in year end results issued between Sept 08 and Jan 09 • Profit before tax improved marginally at £539.8 million and Co-operatives now sustain over 200,000 jobs • “Despite the recession, co-operative businesses have maintained their momentum and continue to grow and prosper” Ben Reid – Chair, Co-operatives UK • “We do not need to go to the Government for extra capital and we do not need to seek emergency funding” David Anderson Chief Executive Co-operative Bank (Dec 2008)

10. Co-operative / NHS Principles

11. Foundation Trusts as mutuals • FT’s are “a different type of NHS organisation, established as independent public benefit corporations, modelled on co-operative and mutual traditions” (Monitor Guidance for applicants (November 2008) • “NHS Foundation Trusts are designed as mutuals in the purest spirit of the co-operative movement” Co-operative Party Magazine Spring 2007

12. Moving Away from Central Control • “the best way for foundations to stop “reassertion” of central control was to prove they were accountable to members and governors instead” HSJ 2nd July 2009

13. Community Engagement • “mental health was a community wide issue, which all members of the community not just patients should be engaged in” Co-operative Party Magazine Spring 2007 • “membership allows local communities to have social ownership of their NHS Foundation Trust. Membership numbers are increasing all the time, strengthening the links between hospitals and the local community.” Membership of NHS FT’s 20 Nov 2008 DoH

14. Democracy • “Members elect a board of governors which also include stakeholder representatives from primary care trusts, local authorities, universities and other organisations.” – Membership Governance in NHS FT’s March 2008

15. Accountability • “the accountability and transparency through the foundation model is greater than it has ever been in my career” Sir Len Fenwick – Newcastle upon Tyne FT Chief Executive

16. Monitor Website

17. Governance • “The evidence we have gathered suggests that the hybrid model adopted for NHS FT’s is working increasingly effectively.” – Membership Governance in NHS FT’s March 2008 • “The raw numbers of members who chose to take part in elections in the first rounds have been relatively small, but their participation rates are impressive (average turnout of over 55%) suggesting that the process has been democratic.” – NHS FT’s: a new model of governance and mutuality, HLSP Institute

18. Tensions & Concerns • Few NHS FT’s took specific action to involve groups of the local population who are traditionally poorly represented • The roles of governors were unclear beyond their statutory duties. • Overlap in functions between board of governors and PPI forums Healthcare Commission Review (July 2005)

19. Co-operative College Products #1 • Board Skills Audit / Review • Non-Executive Boards • Governor Boards • Off the Shelf Training • Knowledge development • Skills Development (Chairing Skills…) • Team Building • Communication Skills

20. Co-operative Products #2 • Customised programmes • Governor Appointment & Remuneration • Membership engagement strategies • Accredited Training • Edexcel • Fit Between this training & Broader environment

21. Any Questions? Mick Sheldon - Vice Principle Mick@co-op.ac.uk www.co-op.ac.uk