Mergers & Collaboration

1. Mergers & Collaboration The Trustees’ Perspective: CEO and Trustees working together

2. 2 Case Studies • 1. From the CEO Perspective • 2. From the Trustee Viewpoint

3. RIPH/RSH • About the Organisations • Old (150 years), venerated • Professional membership organisations • ‘Letters’ matter • Delivered similar core services • Some important differences • External Environment • Increasingly competitive • Rapidly changing definition of ‘public health’ • High profile issues—e.g. MRSA

4. RIPH/RSH • Background and Context • 2004 Failed merger attempt • Acrimony • Misunderstanding • Mistrust

5. RIPH/RSH • 2005: new CEO’s in each organisation • Each dealing with a turnaround • Addressing bad external press & rumour • Members restive about future & renewal • Organisations in reputational decline • Quality of Service delivery had suffered

6. RIPH/RSH • Towards Transformation • CEO’s evaluated merits of merger case • RIPH in financial crisis • Assessed the strategic logic • Need to restore membership confidence • Scope for Service delivery improvements • Competitive and funding pressure

7. RIPH/RSH • Late 2006/early 2007 • CEO’s organised Trustee ‘indaba’ • Trustee working group formed with delegated powers • Sessions to drive out the demons! • Assessed benefits for members • Focused on Strategy and strategic advantages

8. RIPH/RSH • Patience and Perseverance • Many working group and sub-group meetings • Trust built and positive collaborative environment • Key senior management engaged and involved • Task groups set up to review services and growth opportunities • Cultural issues considered/addressed • Extensive internal staff briefings: confirmed that rationale was about improving services and not cost reduction

9. RIPH/RSH • 2008: Merger completed • Lessons learned • Supportive relationships between key players of all parties are essential—Trustees and CEO’s • Patience and understanding • Clear strategy and goals are essential • Continual focus on the positive outcomes for beneficiaries (in this case, members) • Understanding the cultural differences • Comprehensive internal and external communication plan

10. RNIB • The UK Sight-loss Scenario • 2m suffer from a serious sight-loss problem • Only 33% of blind people of working age have work • 100 people become blind or suffer sight loss in a day • Only 5% of printed materials are in alternative formats

11. RNIB • The Real Challenge • >700 charities with ‘sight loss’ in their Objects • >200 hospital eye clinics • 5 optometry bodies • Confused customers not always well served • Wasted resources • Unnecessary competition

12. RNIB • Stepping stones to a solution • UK Vision strategy • Improve eye health of the nation • Ensure good treatments and support • Campaign to make society more inclusive • Barriers • Need for choice and competition • Customer and staff loyalty • Different cultures • Fear of loss of identity/brand/autonomy • Local organisations • Too much hard work!

13. RNIB • The Trustee/Executive Collaboration • Thinking imaginatively/out of the box • Major target opportunity identified • A4BP, GDBA • Models explored—collaboration and dialogue between Trustees and SMT • Developed the “Association” model

14. RNIB • Association Model • Collaborative form that is alternative to merger • Stronger than a partnership • Legal structure that emphasises strong commitment and long term nature of the arrangements • Flexible to suit individual circumstances

15. RNIB • RNIB and Action for Blind People • Association • Swapped and rationalised some services: • Service delivery in England • Fundraising • Properties • Financial support BUT.......

16. RNIB • Terms of the Association • Each organisation retained its legal independence • Own board • Representation on each other’s Board • Own brand • Developed separate but integrated strategy • Long term legal arrangement to bind together, yet providing exit route

17. RNIB • Roles of Trustees and CEO • High level of confidence by Trustees in CEO • Collectively developed the Association idea • CEO delegated to lead discussions with A4BP counterpart • Trustee working group formed to liaise with CEO • Jointly worked on and reviewed MOU/legal framework • Joint meetings between Boards of each organisation • Detailed team meetings to work through implications of services rationalisation, including dealing with staff • Transparency and frankness in dealings at all levels • Joint problem-solving

18. RNIB • Lessons learned • Starting point: an over-arching desire to serve beneficiaries better and a (national) strategic framework • Manageable working groups, each involving CEO (and key SMT members) and Trustees • Clear delegated authority from each Board and a robust feedback and reporting mechanism • Financial goals spelled out, with performance commitments • Open communications established between staff of each organisation—reciprocal visits • Learningabout one another’s culture/modus operandi • Concern about the future of staff /early agreement on transfer terms • Regular external communicationswith stakeholders

19. About me • Trustee of RNIB • Treasurer of iDE-UK (International Development Enterprises) • Interim CEO of the Galapagos Conservation Trust • Available at a price for advice! • robert@newlands.co.uk • Mobile number: 07710 328 629