A new direction for infrastructure• Bill Freeman, Director of Services and Business

Development, NAVCA• Dr Rob Macmillan, Research Fellow, Third Sector Research

Centre (TSRC)• Sakthi Suriyaprakasam, Consultant, NCVO Value of

Infrastructure Programme

Ho

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Third sector infrastructurean unsettled state and an uncertain future

Dr. Rob MacmillanThird Sector Research Centre

University of Birmingham

NCVO Annual Conference‘Moving Forward: Solutions and Inspiration’

London, 5th March 2012

In brief…

• Context… the voluntary and community sector is experiencing a great ‘unsettlement’, and particularly its infrastructure

• Research… on infrastructure and ‘capacity building’ tends to address three main questions:o Purpose (not much research here)o Organisation (lots here)o Value (not so much here)

• Looking ahead and an emerging research agenda… focusing on a changing landscape of and for infrastructure, such as making a market, reconfiguration and hollowing out

Context: the great ‘unsettlement’

‘Shake-out’? - organisations and projects downsizing or coming to an end

‘Shake-up’? - enterprise- reconfiguration- demonstrating value

‘Room’ – is there enough for everyone?

The state and the VCS - a partial decoupling?

Researching infrastructureThree basic questions addressed in research on infrastructure and capacity building:

1. Purpose/Theory: What is infrastructure; what is it for?• Leat, D. (2011) New tools for a new world (or why we need

to rethink capacity building)

2. Operation/Organisation: What does it do; how is it organised?• Harker, A. and Burkeman, S. (2007) Building Blocks• Shared Intelligence (2010) Learning from mergers

3. Value/Impact: What difference does it make?• Halton and St Helens VCA (2011) Inside the black box –

Discovering what really works

1. What is infrastructure for?

Key questions

• What do we mean by infrastructure and capacity building? • What is it for?• What is its rationale or ‘theory of change’? • What role does it play? • Why does it exist?• Who wants or needs it and what for?

(e.g. support needs of frontline organisations; funders and public bodies)

• Who uses it and what for?

2. How is infrastructure organised?

Key questions• What does it do? (support, linkage, and voice) • How is it provided? (interventions, mechanisms and practices)• Who does it? (organisations, consortia, networks and

federations, consultants, peers)

• How is it organised? o Function - generalist and specialisto Constituency – whole sector or specific fieldo Scale – national, regional, localo Sector – third sector, public sector, private sector

• How do infrastructure organisations relate to each other? (duplication, competition, collaboration, merger)

• How is it financed? (grants, contracts, fees and charges)• How is it governed? (stakeholders and their influence - funders,

public bodies, partners, members and users)

3. What difference does it make?

Key questions - the ‘so what’ question…

• What does infrastructure seek to achieve and what does it achieve?

• How can or should infrastructure be evaluated? • By what criteria should infrastructure be judged?

— organisational effectiveness and influence— value for money and distance travelled— accreditation systems and quality marks— benchmarking and public rating systems

• How can its value be articulated and demonstrated?

A changing landscape of and for infrastructure

• De-coupling - withdrawal of central state support for national and local infrastructure?

• ‘Demand-led’ approaches - making markets in infrastructure?

• Changing demands and challenges facing frontline organisations

• Reconfiguration and a changing geography - transforming local infrastructure

• Changing delivery mechanisms: — on-line support; peer to peer learning; community organising;

incubation and shelter

• Hollowing out of infrastructure organisations?

An emerging research agenda

Key questions seem to be about:

1. How can we understand this emerging landscape of and for infrastructure?

2. How are markets being made in infrastructure?

3. How are infrastructure organisations and relationships being reconfigured?

4. What do frontline organisations (and their funders) need, want and expect from infrastructure?

5. Which direction does infrastructure face: to public bodies or to its members and users?

For discussion…

Why should infrastructure organisations decide what kinds of support are provided – why not let frontline organisations decide?

Value of InfrastructureProgramme

(VIP)

Sakthi Suriyaprakasam

VIP AimsVIP supports you to

Assess impact Improve impact Communicate

impact Working and

learning together Talking to funders

Engagement with VIP

• 99 members of the VIP Ideas group • 89 attended development workshops through

2009-10• 100 organisations piloted tools (55 IOs and 42 frontline)

Principles

Growing impact is even more important than showing it Contribution not attribution Evidence not proof This is a leadership issue, not a measurement issue Impact assessment works best when it fits quietly into day-to-

day working practices rather than being a burdensome extra

Infrastructure

Connect

Develop

Influence

Networking

Collaboration

Brokering

Representation

Promote

Direct Support

Consultation

Information Advice

Guidance

Facilitating Learning

Infrastructure Functions

This functions map has been developed by National Council for Voluntary Organisations (NCVO) for the Value of Infrastructure Programme. It is based on PERFORM: the Outcomes Framework for Infrastructure. Also influenced by the ‘Engage, Develop, Influence’ Model of Infrastructure Function as developed by Growing up in the West Midlands (G:Up)

InfrastructureImpacts

capable people

dynamic sector

strong organisations

supportive externalagencies

From functions to impact

Connect

Develop

Influence

strong organisations

supportive externalagencies

dynamic sector

Infrastructure

External AgencyCase Study

Template

External Agency

Dial

External Agency

Interview

SectorCase Study

Template

SectorDial

Action and Review Grid

Survey of Sector Organisations

People Questions

Internal Organisation

Survey

Organisation Case Study

Template

Organisation Dial

VIP Tools11 Tools to mix and match

Dials give pictures of

Change

External Agency

Interview

SectorCase Study

Template

Case studies give stories

Questions give stats

VIP Online

Update

• 115 Infrastructure organisations trained by end of Feb 2012

• TLI partnerships trained on VIP• Sustainability of training and online system• Impact of Infrastructure 2012 Conference 25th

April

Response to VIP

VIP interim evaluation October 2011Training:•Overall very positive response to the framework and tools•98% understood the framework and tools•64% were keen to use the VIP tools•76% felt VIP Online would help them capture their impact

Response to VIP cont.

Use of framework and tools•For those in the early stages understanding their impact was key•95% said the tools were either ‘excellent’ or ‘mostly good and useful’•76% had used one or more tools– 44% the Organisation Dial•Other dials, survey questions and case studies also used

Journey of change1. Muddling through.Not clear about impact, open to learning.

2. Clarity of purpose. Can articulate impact but not measure this except ad hoc.

3. Focus and measuring. Work to outcomes & collect data

4. Interpreting and learning Analyse data, interpret and draw out learning

5. Changing and communicating. Put learning into practice. Can demonstrate effectiveness

How VIP moves agencies up the JOC

• The training helps people move from 1-2 by clarifying their impact

• The tools support the shift from 2-3 by enabling measurement of impact

• VIP Online is important to moving from 3-4 by providing data

• It is less clear yet how VIP supports agencies to move from 4-5

But • starting point and willingness/being ready to change

key• The external environment

Opportunities• Shared language and agreement about purpose• Collaboration with a positive focus –

– joint approach to tackling common issues, e.g. external agency

– Data sharing/referrals– Setting baselines at a local level and working together on

shared targets– Using the system and generating information on future

priorities• Data on impact of infrastructure sector as a whole• Communicate to and engage with our stakeholders

about the value of infrastructure

Challenges

• Timescale for evidence to emerge• Embedding new systems and ongoing learning• Implementing improvement in the context of

change

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Bill Freeman

‘A new direction for infrastructure’ workshopNCVO Annual Conference - 5 March 2012

Challenges and changesfor VCS infrastructure

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Areas I will cover...

• The NAVCA network and our work on impact.

• External drivers affecting VCS infrastructure.

• Internal challenges affecting VCS infrastructure.

• Promising solutions.

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The NAVCA Network

• Around 400 member organisations covering most local authority areas in England, including:– Providers of a comprehensive range of support and services which

embrace all types of organisations in the sector.– Organisations specialising in providing certain types of activity and/or

serving particular client groups.

• All full members required to be charities and membership associations themselves.

• Largely state-funded (c.80%) with other income from fees (membership and charged-for services).

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The NAVCA Quality Award

• Around 100 members hold NAVCA’s Quality Award and a further 40 are working towards it.

• It enables them to demonstrate effectiveness in achieving better outcomes for their local groups across five standards which relate to their core functions.

• It involves self-assessment and audit which includes the testimony of critical external stakeholders.

• Organisations of all size and shape are able to achieve the Award and renew it every three years.

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Understanding infrastructure organisations

Political legitimacy

Bestowed legitimacy

Technical legitimacy

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External drivers affecting VCS infrastructure

• State funding for infrastructure thought to be in decline.• State initiatives to bring about supply-side reform, e.g.

Transforming Local Infrastructure Fund.• Quality, innovation and efficiency will be driven by…

– Collaboration, reorganisation and integration.– Competition and choice.

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External drivers affecting VCS infrastructure

• Drive for services to be “digital by default”.• Greater emphasis on role of the private sector in and VCS

support providers being more businesslike.• More demand-led approach to capacity building and wider

‘marketisation’.• The pace of change in the policy and funding environment,

requires infrastructure organisations to respond faster, whilst not being immune from pressures themselves.

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Transforming Local Infrastructure

• £30million competitive fund from OCS.• One bid was allowed per upper-tier local authority; 72 awards

made (about half of total).• Projects encouraged to focus on:

– collaboration and consolidation; – redesign and integration of services;– Better links with local businesses;– peer-to peer support; and– stronger partnerships with local statutory bodies.

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Transforming Local Infrastructure

• Aim was for sustainability in the long-term without ongoing support from central Government.

• NAVCA is helping successful and unsuccessful areas to share good practice, exchange information and find the best way forward.

• Big Lottery Fund is planning a distinct and additional investment in funding support services for voluntary organisations of at least £20 million.

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Demand-led capacity building

• National dialogue and emerging practice:– Real Help for Communities Modernisation Fund (2009).– OCS supporting civil society consultation (2010).– BIG “Building capabilities for impact and legacy” (2011).– Worcestershire County Council (2011).

• In demand-led schemes organisations needing or seeking support are given money or a voucher to purchase it directly.

• Main benefits:– Greater choice, control and tailoring for recipient organisations.– Broader range of suppliers drives quality, innovation and efficiency.

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Demand-led capacity building

• Public and charitable funds, so safeguards need to be in place:– Diagnostic review to identify needs.– Quality assured list of providers.

• Can it work? Yes, but...– It needs to be built around VCS infrastructure which already has the

reach, profile and trust in place to make it work.– It needs everyone to work differently, not just suppliers.– There have to be some standards and adherence to good practice.

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Demand-led capacity building

• Concerns about the approach:– Where’s the evidence base of its effectiveness? – BIG Assist

programme will help us answer this question.– Makes tackling sector-wide issues harder.– Decouples connection and benefits derived from funding

organisations to do both representation and capacity building.– Impact on health of local voluntary sector if the system favours private

sector providers – such as no reinvestment or leverage of additional funds; scepticism from recent cases (Hounslow).

– Can it work for supporting new and emerging groups?

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Internal challenges affecting VCS infrastructure

• Leading in difficult times.• Strain on funding model requires rethinking or refining

business model for many organisations.• Some of our language and labels might need redefinition.• Previously reliable tools not suited to the new environment.

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Leading in difficult times

• The most frequent areas of challenge identified in NAVCA’s 2011 Chief Executives survey were:– financial climate and funding;– workload and capacity issues;– uncertainty and responding to change; and– managing relationships and dealing with conflict.

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Leading in difficult times

• Other challenges that featured in multiple responses were:– morale and motivation; – political and policy environment; – difficulties with trustees;– engagement (or, more accurately, disengagement); – increased competition; and– managing expectations.

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New areas of focus for income generation

0% 20% 40% 60% 80% 100%

Reducing operating costsBidding consortia

Building/premisesFees for consultancy

Non-infrastructure contractsLocal businesses

More member-only benefitsSelling to each other

Trading company Philanthropists/individual donors

Commissions

Doing it already

Not doing it,but plan to

Not doing it anddon’t plan to

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Promising solutions

• We need tools and approaches which work in real-time to help us be more agile and adaptive in a dynamic environment.– More strategy, not so much strategic planning.– Stronger emphasis on marketing and branding.

• Choosing business models which are about resilience, rather than sustainability.– ‘Networked non-profit’ principles (Wei-Skillern and Marciano, 2008).– Virtual CVS?– Fiscal sponsorship - a way to make it OK to do frontline services?

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Promising solutions

• Keeping conversation with the State about the priority of funding those infrastructure activities which cannot be marketised.

• Only doing things which are known to be impactful.• Ensuring ‘demand-led ’ capacity building about evolution, not

revolution.

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For discussion…

• When it comes to thinking about the future providers of infrastructure support and services, do we need evolution or revolution?

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About NAVCA• We are the national membership body for local support

and development organisations.• We strengthen and champion the work of our members in

representing, supporting and developing voluntary and community action.

• Our support and services include:– policy information, insight and ideas;– advice and guidance;– hands-on support and facilitation;– training and networking opportunities.

• Email: bill.freeman@navca.org.uk.

For discussion…

Why should infrastructure organisations decide what kinds of support are provided – why not let frontline organisations decide?

We need to completely re-think what impact we are measuring and how we communicate this in the light of decreasing public funding and a move towards a market-led economy

When it comes to thinking about the future providers of infrastructure support and services, do we need evolution or revolution?