15FRCfinal

lessons learned the hard way>

This book is dedicated to the hundreds of terrific people who have played their part in making FRC what it istoday: board members, employees, trainees, volunteers, customers, suppliers. People who have lent or givenus money when we really needed it. People in private, public and voluntary sectors who have trusted us,supported us, stood by us when things got tough. Those who have given us a second chance. Those who havesurprised and delighted us with their generosity, creativity, solidarity and friendship.

You all know who you are.

Thank you.

Dedication

<15 lessons learned the hard way>

It is a pleasure to introduce this publication.

Esmée Fairbairn Foundation has supported theFurniture Resource Centre (FRC) since 1994, and seenit develop from a small furniture recycling project intoone of the country’s most successful and significantsocial enterprises.

FRC brings an openness to new ideas and a capacityto keep moving which are key to its success – forexample, if I had been writing this only a few weeks agoI could not have referred to its latest venture into icecream, through the Ben & Jerry’s franchise in Chester.The developing social enterprise sector needs torecognise and seize such opportunities and learn fromthem. We have always supported initiative andenterprise and FRC has demonstrated plenty of both.

Social enterprises also need to be solid businesses,putting good ideas into practice. These stories illustratethe challenges and successes of a dynamic, growingorganisation and will be an important contribution to thewider understanding of the sector. The booklet will bean invaluable tool for those starting out.

We are keen to encourage new and existing socialenterprises to realise their potential. Esmée Fairbairn ispleased to be associated with FRC. We congratulate iton the last 15 years and wish it every success in thefuture.

Jeremy HardieChairman, Esmée Fairbairn Foundation

January 2004

Foreword Introduction

FRC was created fifteen years ago. We wanted toproduce something to mark that anniversary but weweren’t sure what or how.

We were sure that we did not want to wallow in nostalgicsentimentality and produce something which was ofinterest only to those personally involved. Nor did wewant a PR puff along the lines of ‘Our Fifteen GloriousYears of Unparalleled Success’. This would give no realinsight into how this social business has been shaped.

We wanted something candid and honest. It had to betrue to our values and our commitment to opennessand transparency, and it needed to be a publicationwhich people would actually read and learn from.

So, we got together and came up with a list of events,issues, themes, milestones from the last decade and ahalf. We have refined these down to create ‘FifteenLessons Learned the Hard Way’.

Our hope is that this short book reflects the realities oflife, the mistakes, the clashes of opinion, thecompromises and the flashes of insight which all go tomake up who and what we are.

We are fiercely proud of what FRC has achieved overthe last fifteen years. Hard work, good leadership, adedicated staff team, some great friends and allies anda huge dose of good luck have all played their part. Butthe most important thing is our ability to learn from ourexperiences – particularly the mistakes.

So, the testimonies here reflect the real dilemmas andissues which people in every type of business have toconfront. We hope you find them interesting. Moreimportantly, we hope you can draw your ownconclusions and use our learning to avoid making thesame mistakes we have!

1 5 l e s s o n s l e a r n e d t h e h a r d way 6 7

Social business – you can’tplay it both ways…

FRC hasn’t always been known as a social business. In its early days it was financed largely throughgrants. Nic Frances was faced with the decision of whether to continue this dependence onfunders or to turn FRC into a genuine social business. Nic opted for the latter. He set up FurnishedHomes to sell and deliver furniture to social landlords. This decision changed FRC forever…

“FRC was set up in 1988 as a recyclingorganisation taking rubbish from the rich andgiving it to the poor.

“We helped a lot of people, but I grewincreasingly unhappy about the whole setup.

“Why should people in poverty put up withother people’s stained beds and dodgyfridges? And why was I having to beg moneyfrom trusts that only seemed interested infunding new and exciting projects, rather thanhelping us with core funding to achievefinancial stability?

“The notion of ‘charity’ seemed insidious. Itdidn’t create change but maintained thestatus quo. We wanted to do thingsdifferently.

“We invented a furnishing service calledFurnished Homes and sold it to councils andlocal housing associations. We furnished flatsand houses with good quality new furniture.Landlords got empty properties filled andstarted earning rent from them. Families gotdecent beds and fridges that nobody hadused before. And we got paid. And we couldtake on unemployed people.

“It was a great success. FRC grewspectacularly – some years doubling in size.Even so, it was not easy. Our customers werereally slow payers. Cash flow was a massiveproblem.

“I remember one particular time when ourmoney problems were very bad. We couldn’tpay the wages.

“I could have rung around the trusts andgrant-making bodies and cobbled togethersome money to stay afloat, but I knew thatwas not a solution. The figures involved weretoo big. We would have had to cut backproduction and staff and we would have hadto start behaving like the cautious andtraditional charity that funders always expect.

“So, I called the staff together to lay the cardson the table. I explained that once creditorspaid up we would be fine, but until they paidtheir bills we were in deep trouble. We askedif anyone would volunteer to go without pay. Iknew it was asking a lot, but I could not seeany other way forward.

“It was extraordinary that nearly everyone wasprepared to let their wages ride.

“Fortunately, a payment arrived within theweek. Wages were paid and the immediatecrisis was resolved. But that day seemed likea turning point.

“What we did not know at the time was thatwe were pioneering a new way of doingbusiness which was later called ‘socialenterprise’. We had found a marketmechanism to help people create a decenthome. We were also training and employingunemployed people. I did not want tosacrifice that because of a cash flowproblem.

“If we had stuck to the traditional charitymodel this would not have been possible. Ourambitions were too great. We would havebeen chasing our tail, raising money by tryingto put a new gloss on traditional projects,rather than concentrating our energies onfinding a new way to create more lastingsolutions to poverty.

“Of course we made mistakes. Who doesn’t?At times it was a high-wire act because wewere trying to do things differently, but I wasalways confident that we were going downthe right path. I still am.”

Nic Frances was chief executive of FRC from1988 to 1998. He now lives and works inAustralia.

1

“The concept of Create came from whatwas then Thorn EMI plc. Through RadioRentals and Rumbelows we were one ofthe largest retailers of white goods on theUK high street. We were selling thousandsof fridges, freezers and other productsevery week to predominantly low incomehouseholds.

“Concern about the environment wasemerging. We wanted to play our part. Wealso wanted a social dimension, wherebywe could put something back intodeprived communities.

“Recycling white goods and retraininglong-term unemployed people at the sametime fitted the bill.

“We worked up the plans and beganlooking for a suitable location. Weapproached both Manchester andLiverpool councils as they were both nearour distribution centre in Winsford.

“Unknown to us, Liverpool council hadslipped a copy of our plan to FRC, whowere also experimenting with using whitegoods as a means to retrain unemployedpeople.

“As luck would have it, I was visiting FRCand was button-holed by Nic, the thenchief exec. We got on famously. It wasobvious that we were on the samewavelength and shared the same vision.Nic sold me the idea of a partnership.

“Everyone at Thorn was excited by thechance to work with FRC. Nic’s colleaguesat FRC were less than enthusiastic.

“Ten years ago partnerships betweenvoluntary groups and large corporatecompanies were unheard of. Many people– both staff and board members – reallymistrusted large corporate companies andeverything they stood for.

“Companies like Thorn were seen as thecause of the poverty, unemployment and othersocial problems which groups like FRC weretrying to address. Their motivations could notbe trusted. The idea of working with Thornwas like signing a partnership agreement withthe devil himself.

“Nic saw things differently. He put anyideological concerns to one side and tookThorn’s promises at face value. He foughtlong and hard with the FRC board and staff toconvince them that working with Thorn gavethem access to skills, resources and know-how which could really make things happen.

“Eventually Nic managed to swing FRCbehind the idea. Create was launched inautumn 1994, based in an old warehouse inAigburth, Liverpool.

“Create has had its ups and downs sincethen. But overall it’s been a huge success. Ithas trained and supported hundreds ofunemployed people and recycled many tensof thousands of white goods from centres inLiverpool, Tottenham, Leicester and Scotland.The links with FRC and Thorn remain strong.Both organisations are still represented onCreate’s board of management.

“This would not have happened without Nic.He could easily have given in to opponents ofthe idea. But he pushed it through. He saw anopportunity and grabbed it with both hands,even though it flew in the face of conventionalwisdom.”

Jim Donovan was head of corporate affairs forThorn EMI plc. He is a member of the boardsof FRC and Create UK.


2

Grab opportunities –even from the mostunlikely sources

Sometimes help and inspiration come when you least expectthem. Jim Donovan explains how FRC and Thorn EMI plc brokethe mould and defied scepticism to join forces in 1995 tolaunch a new recycling and training social business calledCreate.

1 5 l e s s o n s l e a r n e d t h e h a r d way 1 0 1 1

“In the mid-nineties I was single persons’services manager at Salford City Council.We were interested in developing afurnished tenancy scheme for one and twobedroomed flats in the City.

“We hoped that if we provided decentfurniture people would be more likely tomove into and stay in our flats.

“In 1996 we developed a large pilot projectand invited FRC to tender for the work.

“They won this competitive tender whichwas worth almost £1million over aneighteen-month period. It was their firstreally big contract. It was massive boost forthem.

“There was never any question about thequality of FRC’s furniture. It was alwaysexcellent value and tenants were very happywith it. But problems soon arose with day-to-day issues like getting deliveries andinvoices wrong. This frustrated both tenantsand colleagues at Salford, although we putit down to teething problems.

“FRC won a second tender forapproximately £250,000 a year, but thingsdid not improve. Their problem was thatthey would agree to everything we asked,and then fail to deliver.

“It was very annoying. Tenants got veryfrustrated when deliveries of new furniturefailed to turn up and staff found it difficult toplan work effectively.

“Things changed after FRC asked me tocontribute to a video which was designedfor internal training. I was asked to scoreFRC’s performance. I gave them two out often.

“I think FRC just presumed everything wasgoing brilliantly. They had to be told thattheir performance was unsatisfactory.

“I also wrote to their chief executive pointingout that their service was unsatisfactory.Unless it improved they would not even beallowed to re-tender.

“FRC did respond positively. They improvedtheir logistics and got their act together.They successfully won a third tender tofurnish tenancies in Salford. They showedhow much they had improved when theyfurnished 55 flats in Salford in seven daysfor refugees from Kosovo.

“Their product was always top quality. Butcustomers demand a smooth service aswell as a great product. Fortunately for FRC,they realised this before it was too late.”

Glyn Meacher now works for BuryMetropolitan Borough Council.

3

Don’t forget the customer!In 2000, FRC was growing fast and attracting attention. We put together a videocontaining customer feedback for our six-monthly staff get-together. Everyone satback fully expecting high scores. Then Salford City Council, our largest customer atthe time, gave us a nasty surprise… Glyn Meacher explains how FRC had to learn asalutary lesson in customer relations, and how it eventually got things right.


“I’ve managed FRC’s furniture shops since1989 when we opened our first outlet inAigburth.

“We were always successful, renovating andsprucing up old furniture and then selling itto people in need on low incomes.

“In 1997 things changed. FRC won amassive lottery bid to open a new storecalled Revive. Based in a large refurbishedstore on the edge of the city centre, Revivewould offer quality new furniture. This wouldbe sold to the richer middle classes whowould want to buy their goods from a ‘socialbusiness’. There would be an innovativelink-up with a credit union to ensure thatpeople on low incomes could also use thestore.

“Unemployed people would also be giveninvaluable work experience and train for anNVQ in retail.

“Revive opened in 1998. It had a massivelaunch and was backed by the City Counciland bigwigs from all over the country.Everyone thought it was wonderful.

“But it did not work. The posh middle classtypes never came anywhere near the shop.The credit union idea got bogged down inred tape and never saw the light of day.People on low incomes could not afford ourgoods and there was also too muchcompetition in the area.

“The store began to lose serious money. Ofcourse, we were training people, but it wasa bit of a joke. Most of the time there weremore trainees in the shop than customers.

“In hindsight the FRC leadership shouldhave pulled the plug sooner. But theybrought in expensive consultants whopromised that they could turn things around.New managers were hired. There was thena big fire which gutted the place. Moremoney was spent.

“It was like the blind leading the blind. Eachmonth we were losing more money. FRC’sflagship project was now looking like anembarrassing failure.

“Eventually they decided to cut their losses.Some people were made redundant. Somewere moved to other jobs in FRC. Existing

stock was sold off at knockdown prices. Thestore was restocked and relaunched usingthe old formula: selling renovated goodquality secondhand or ‘pre-loved’ furniture,as we like to call it, to people in need.

“Immediately, sales picked up. Revive hasn’tlooked back since. We know our market.Over 80% of our customers are on benefits.For the last twenty months we have met orsurpassed our sales targets.

“FRC wasted three years – and a lot ofmoney – experimenting with Revive. Theleadership was seduced by all the praiseand flattery. They kept spending moneytrying to get the precise formula right, whenin reality the whole idea was fatally flawed.

“To their credit they eventually made theright decision. They ditched this newconcept completely and went back to theold winning formula. This did not generatemany headlines but it did mean we startedto make money again and get furniture topeople who really need it.”

Colin Davies manages the Liverpool branchof Revive.

4

Don’t believe your own hype!When FRC opened Revive, a flagship retail store, everyone hailed it as a brilliant idea.It was social enterprise at its best. But the Revive concept and business premise wasfatally flawed. Colin Davies tells the Revive story and explains why flatteringheadlines and attention should never influence sound business decisions.


“The idea behind Bulky Bob’s was simple.We would collect unwanted furniture onbehalf of Liverpool City Council and thenrecycle, reuse or resell what we were given.Unemployed people would be given trainingin every aspect of the service – from driversthrough to sales assistants.

“It took over two and half years to plan.Eventually everything was in place. We hada fleet of vans ready and drivers andtrainees raring to go. Our one big problemwas finding premises.

“We looked all over Liverpool for a suitablesite. Everything we saw was either toosmall, too expensive or in too bad acondition.

“The rest of FRC is based in a businesspark in south Liverpool. When our landlordsaid that he could find us some space thereit seemed like a perfect solution. The onlyproblem was we had nothing in writing.

“A week before Bulky Bob’s was due tolaunch, there was a wobble in our contractnegotiations. We were confident thateverything would be sorted out. But weweren’t absolutely sure.

“We were really scared. How could welaunch the service without being absolutelycertain about premises?

“We had to make a decision. The keypeople met in the chief executive’s office. Iremember it clearly. There was a very tenseatmosphere. We were not sure what to do.

“Should we push ahead with the launch orshould we stall, delaying the launch of theservice until we knew everything was inplace?

“After discussing all the options, we decidedagainst any delay. There were individualsand organisations in Liverpool who neversupported Bulky Bob’s in the first place.They were just waiting for signs that wecouldn’t deliver on our promises. Delayingthe launch would be playing into theirhands.

“We were very stressed about the situation,but at this meeting we also realised that wedid have a fall-back position. Even withoutpremises we could still deliver a basicservice, we just wouldn’t be able to recycleand reuse much of what we collected.

“Bulky Bob’s was launched on time. In theend the premises were secured without aproblem and the service has been a hugesuccess.

“At the time we thought we were beingtremendously brave. But this bravery wasbased on a perceived fear rather than a realthreat.

“Because we’d planned everything someticulously, anything that wasn’tcompletely buttoned down seemed like amassive insurmountable problem.

“The emotion and excitement of launchingBulky Bob’s clouded our judgement. Inreality there had been an unplanned hiccupbut what we feared was the possibility offailure. It was only when we sat down andlooked at the problem objectively that werealised we could deal with this premisesissue.

“It’s only after experiencing the stress andanxiety of something like the Bulky Boblaunch that you realise that there’s nearlyalways a solution to any problem. You’vejust got to stand back from it and removethe emotion from the situation.”

Ian Galbraith is FRC’s logistics manager.

5

Don’t let fear of failurecloud your judgement

Two and half years of blood, sweat and tears went into planning Bulky Bob’s – our collection andrecycling service for bulky household waste goods. Nothing could go wrong … or so we thought. At thelast moment a problem with premises seemed to threaten the whole project. Ian Galbraith recallshow everyone feared the worst, until they stepped back and looked at the problem objectively.


“In Spring 1998 we won a massive contractworth over a £1 million. We were made up.The future looked rosy.

“But it took ages before the customeractually started spending the money. Wehad no cash and were living at the outeredge of our overdraft. To be honest, wewere pretty amateurish when it came tomanaging creditors and debtors.

“We did a cash flow forecast and realisedthat we would have to save around £50,000over the next six months.

“We put together a staff group to look athow we could save money. This groupcame up with some good ideas including apay freeze, selling the minibus and evencharging staff for tea and coffee.

“Unfortunately, no one wanted to use thedreaded R word. They were dancing aroundthe issue without suggesting the only realsolution to the problem: redundancies.

“We discussed the issue at length at theboard meeting. Even though it did not seemright making people redundant, we all knewthere was no other choice. There was asense of failure. Social enterprises weremeant to create jobs for unemployedpeople, not throw people on to the dole.

“We told the senior management team thatwe needed to save £30,000 from the wagebill by the end of the year. ACAS and theunion were brought in and they said the waywe handled the situation was exemplary, butit still felt like we were letting people down.

“In the end half a dozen people were maderedundant, a significant number for acompany of fifty or so.

“I’ve no doubt it was the right decision.Perhaps we could have got out the beggingbowl and raised the money throughfundraising. But you can’t do that every timesomething goes wrong. You have to bite thebullet.

“No matter how passionate you are aboutsocial change you have to make toughdecisions. Ideological purity gets younowhere.

“For any social business making peopleredundant will always be painful. For asocial business the real test is being open,honest and supportive to your staff, notgrandstanding with promises aboutprotecting jobs forever.

“FRC learned from this experience. Ourbeliefs remained the same, but we shed thehang-ups about redundancy. This has madeus a stronger, more confident companywhich is more likely to be around for thelong haul to achieve our long-term socialgoals.”

Barry Mackenzie is a member of FRC’s board.

6Don’t duck difficult decisionsHaving social and environmental objectives does not insulate a social business fromdifficult decisions. In a company and city where creating and sustaining jobs isespecially important there is no more difficult decision than having to let people go.Barry Mackenzie recalls a difficult time when FRC had to make people redundant.

7


It’s not just tea and biscuitsGraham Morris was surprised by the tough selectionprocess he went through before he joined FRC’s Board.

“The first time I visited FRC I was thechief executive of Rolls Royce MotorCars. I turned up in a chauffeur-drivenRolls Royce. I don’t think the staff knewwhat to make of it. They probablythought ‘Who’s he and what the hell ishe doing here?’

“I was visiting FRC because I’d beenasked to consider joining them as chairof the board.

“After working thirty years in the carindustry, I was keen to put somethingback into the community beyond justsigning the company cheques for thatyear’s designated charity. FRCimpressed me because they seemedvery clear and confident about whatthey wanted to achieve. They were alsobased in Liverpool, where I grew up.

“After having a chat with Liam, the chiefexecutive, I was invited in for what Ithought was an informal chat with theother board members.

“I’m not an egotistical person. But I hadexperience of running multi-millionpound businesses and I was offeringmy services for free. So I presumedthat they would be very keen to recruitme.

“What I got was a two-hour grilling, avery unexpectedly hard interview.

“They asked me some tough questionsabout myself and my skills. They askedme why I had worked in South Africafor three years and other probingquestions which would never come upin the business world I was used to.

“I got through this interview processand was then asked to serve aschairman for a six-month probationaryperiod. This gave both me and FRC thechance get to know each other andchange our minds if it did not work out.

“I’ve now been chair for over fouryears. I like to think I’ve helped FRC.I’ve certainly learned about the depth ofsocial deprivation in the UK and howbusiness skills can help to addresspoverty.

“When organisations choose boardmembers they should not necessarilygo for people just because they havehigh profiles and good contacts, asthese are transitory.

“They need to identify which skills areneeded at board level and recruitindividuals who have the rightexpertise, regardless of whether theyare on first name terms with such-and-such politician or rock star.

“I was wrong to think that the issue ofchairing FRC’s board could be settledover a quick cup of tea and a couple ofchocolate biscuits. Recruiting boardmembers is a very serious business.They control the future destiny oforganisations. Do you want to give thispower to strangers, even if they soundgreat on paper?”

Graham Morris chairs FRC’s board.


“When I came to FRC as a reupholsterytrainee in 1997 I’d been unemployed forsix years. I’d been to loads of job clubsand courses but nothing had come of it.

“The reupholstery course at FRC wasdifferent. It felt like real work and realtraining. I was learning how to renovateold furniture. My wife spotted thedifference immediately. She said ‘Thistraining has given you back your selfrespect’.

“From the twelve-month course I got ashort-term contract making new furnitureat FRC. Then I went full-time and laterbecame section manager.

“When I heard that FRC was winding upthe upholstery training, I thought it was abad move. They said it was becausepeople no longer got jobs renovatingfurniture.

“To me, this missed the point. Thetraining was about getting people usedto working and learning after years onthe dole. The subject matter wasn’timportant. The training gave traineesconfidence in themselves and a sense ofself belief. For them, it opened the doorto the world of work and learning.

“Besides, the training programme wasfully funded from Europe, so why phaseit out?

“Looking back I can understand why itwas done. There was not enough roomin the building to renovate old furniture.Space was tight and the production ofnew furniture was more of a priority.

“FRC also needed to diversify. If we hadstood still and kept doing what wealways do, we would have been caughtout in the end.

“Even so, I still think it’s a huge shamethat others don’t get the same chanceas I got, but you need to look to thefuture.

“FRC still takes on long-termunemployed people, but traininggenerally seems less of a priority. Nowprofits are more important. I sometimesthink they are too important.

“I understand that the real worldchanges all the time. If we are tocompete in business, we have to beahead of the game, rather than just reactto what others are doing. And if themoney’s coming in and real jobs areprotected, that’s hard to knock.

“Then again, I sometimes think wemoved too quickly. It’s great to havejoined up with Ben & Jerry’s to sell icecream, but it’s important to preserve thethings that make FRC special.”

Stan Riley now works with DoveDesigns, a supplier of furniture to FRC.

8

Look to the future – don’thanker after past glories

Reupholstery represented everything that FRC stood for. Old furniture, restored byformerly unemployed people and sold on to low income families. Perfect. Visitors lovedit. But our social audit relayed the brutal truth that few trainees got jobs in that area andthe scheme was heavily subsidised by European money. Faced with the choice betweenprotecting this iconic service or pulling the plug, we pulled the plug. Stan Riley wentthrough the reupholstery training programme. He has mixed views about its demise.


“At Bulky Bob’s we were busy from day one.People would be ringing in from all overLiverpool asking us to pick up their oldfurniture, fridges and household goods.

“We had a fairly rigid system. We could onlypick up things which were on our list. Butwhen we got to peoples’ houses they oftenwanted to get rid of other things too. Theirneighbours would also see the van and askif we could take their stuff away.

“We had to say ‘no’. People would getangry and call us ‘Useless effing councilworkers’, but those were the rules. FRC onlygot paid for prearranged pick ups.

“Liam, the chief executive, came out on thevans to muck in and see how things weregoing.

“He does it quite a lot. He’s OK but he’sabsolutely useless at shifting furniture. He’salways on the phone!

“He realised at first hand that sticking to therules was leaving some people unhappyand dissatisfied with the service.

“When an old woman asked if we couldtake an extra piece of furniture, he said‘that’s fine’.

“Unlike us, Liam has the power andinfluence to change things on the spot likethat. As soon as he got back to the office,he started working out a compromise.

“The system is much better now. The driverscan take on extra pick ups on the day solong as there’s room in the van. Thecustomers also have to fill in and sign aform which can be done there and then.

“Of course, the new system causes a fewproblems. We sometimes get up to half adozen people from one street asking if wecan take their old furniture away. But itseems to work quite well.

“We could not change the system off ourown backs. It only happened because Liamcame out with us and saw for himself theproblems it was creating.

“Having your boss out on the road with youcan be a pain in the arse! But this time it ledto real improvements, both for us driversand for the customers.”

Gary Myddleton is a member of FRC’slogistics team.

9

Stay close to the front lineBulky Bob’s has been a roaring success for FRC. But there are alwaysunintended consequences for even the most brilliantly executed plans. GaryMyddleton explains how one issue of customer satisfaction went unnoticedby the FRC leadership team until they spent time working on the frontline.


“About four years ago we wanted to expandour services into the Midlands. We werelooking for partner agencies based in theregion.

“The chief executive of one particularorganisation came up to visit FRC. He waskeen to work with us. He even sent his boardmembers up to Liverpool to find out moreabout what we were up to.

“One thing led to another and bothorganisations soon pledged to work together.The idea was simple. We would set up an FRCcentre in Birmingham. Our new partners wouldprovide the local contacts, credibility andleverage. We would offer the expertise andknow-how.

“Despite being in contact with thisorganisation for three years, the centre nevercame to be. We decided to pull the plug onthe project. I suspect our partner was secretlyrelieved.

“It’s hard to put our finger on what wentwrong. It was more a question of whatwent right.

“In our enthusiasm to forge ahead in theMidlands, we did not do our homeworkproperly. We were too keen on the idea ofa partnership, rather than thinkingthrough the terms of the partnership andwhether we were compatible.

“We misjudged our new partner. Wemade assumptions about their ability todeliver. We could not understand whythey couldn’t make decisions quickly. Ontheir part, they probably found us pushyand impatient.

“There’s no point blaming them. We haveto take responsibility for getting it wrongand not thinking it through. Moreimportantly, we have to work hard to getpartnerships right in the future.

“We are now much clearer and morefocused about what we want from partnerorganisations. We think long and hardabout the decision making processesand whether organisational cultures are intune with each other.

“Partnerships are about doing a dealwhere both get what they want and createsomething greater than the sum of ourparts. But the risk must be shared if it isto work. If it is too one-sided frustrationand resentment can build up.

“Partnerships are simply two or moreorganisations working together becausetheir interests and goals coincide. Theyare not necessarily long-termrelationships. Looking at it this way allowsus to be more dispassionate aboutworking with different organisations.

“We would still like to work in theMidlands. But we are in no great hurry.It’s not that we have retreated back toLiverpool to sulk and lick our wounds. It’sjust that we are now a lot more cautiousand realistic about how we work withothers.”

Alison Ball is FRC’s head ofpeople and learning.

10

Work with others, but always think it throughWorking in partnership with others offers many attractions, but all too often organisations forgeahead with partnership agreements without thinking it through carefully. Alison Ball explainshow FRC only had itself to blame for one partnership agreement which failed to deliver.


“I’ve always worked in IT. A couple of yearsago there was a downturn in the IT industry.I was made redundant.

“I planned to go back to college to retrain. Ithen saw an advert in the Liverpool Echo.FRC wanted an IT manager.

“A friend of mine worked there, but I did notreally know much about them. When I readthe application form, I almost fell off mytrolley.

“There was the normal stuff in there aboutskills and previous experience. But it alsoasked for examples of bravery, creativity,professionalism and passion. Thesequestions seemed weird and out of context.But I wanted the job so I filled in the form.

“I got through to the interview stage, butthen things got even weirder. The letterasked if I could bring a quality item with meand prepare a sales pitch for it.

“I did not really understand what was goingon. There must be some mistake. I was upfor an IT job, not sales.

“After ringing FRC for clarification the pennydropped. I realised that it was not aboutselling anything in particular. It was aboutselling myself.

“I decided to go for it. I wanted to surprisethem and – at the same time – challengetheir attitudes.

“I finished the normal bit of the interview andcompleted the technical test. I was asked tostep into a new room to present my qualityitem. My jaw dropped a bit when I lookedup to see twenty people in the audiencelooking at me.

“I had no choice. I could not back out now. Itook one deep breath and then reached intomy bag for my quality item … a three-footsword which I use to train with for my TaiChi.

“I was then asked to do a demonstration. Iagreed, but asked for a volunteer to help.Tony, the finance director and my futureboss, stepped forward. I wanted todemonstrate that Tai Chi is not just aboutold men in China doing early morningexercises in the park, so I immediately tookhis hand and put him in a particularlyeffective armlock!

“I got the job and I’ve been at FRC for overtwo years now. The money’s not the bestbut I love it.

“Looking back, the recruitment process didchallenge me. It forced me to be openminded and made me think hard about howto sell myself.

“Of course some people just don’t get it.Others are put off. But to be honest, that’sfine. At FRC you can be as straight laced oroff the wall as you like … the point is thatyou have to be open to new ideas and newways of working.

“FRC does have a working culture which isdriven and shaped by its values. If you aregoing to enjoy working here you have to buyinto those values right from day one. That’swhy we have this unique recruitmentprocess. Having the right skills is notenough. You’ve got to get people with theright attitude.”

Andy Bishop is FRC’s ICT manager.

11

Recruit for attitudeFRC mistakenly thought that we neededpeople with private sector experience to fillkey posts. With a few honourable exceptions,this decision was a disaster for us. The peopleselected had the necessary skills andexperience, but something was missing andwe soon parted company.

FRC learned that skills can be taught. But theright attitudes come from within.We changedour way of recruiting. Now we look for peoplewho share our core values of bravery, passion,professionalism and creativity.

One of these people was Andy Bishop, whoapplied for the job of ICT manager. He wasinitially baffled by this new recruitmentprocedure. He then realised he had to showbravery and passion to secure the job.


The regeneration business has a habit of overcomplicating almost everytask or problem. So when FRC’s social audit highlighted the fact that wefailed to attract many trainees from ethnic minority communities, weinitially looked to consultants and outside “experts” to solve the problemwhen really the solution was obvious. Collette Dunning takes up the story.

“We’d been aware for some time that theethnic mix at FRC wasn’t right. Only 2% ofour workforce were from black and otherethnic minority communities. As minoritygroups make up almost 8% of the city’spopulation this was not good enough.

“I suppose we had been a little naïve. Inthe past we had used fairly conventionalrecruitment methods. We advertised jobsin the Liverpool Echo and Job Centres.

“We thought that this would cast the netacross the whole city and would includeall sections of the community. We did notrealise many black people are wary ofthese traditional recruitment procedures.

“The Job Centre said that they wouldorganise a special open day for us. Thatsounded like a great idea. But only eightpeople turned up.

“We wanted to reach out to people andbegan asking around for ideas and helpfrom other organisations. Oneorganisation – whose work with ethniccommunity groups is well known – offeredto help us establish the right recruitment

procedures. The trouble was they wantedto charge us £40,000 for the pleasure!

“We decided that the answer was reallysimple. Let’s talk directly to people in theirown communities and get our messageacross.

“With the help of the Jobs, Education &Training service (JETs), we organisedmeetings with the Bangladeshi,Sudanese, Somali, Yemeni and Caribbeancommunities, outlining the trainingopportunities available at FRC and whatwe could offer. We went to mosques,community centres and cafes.

“Before each meeting I was really quitenervous. I read up about the communitiesand their cultures and thought carefullyabout what to wear. I did not really knowwhat to expect.

“In the end the meetings went well. Theaudiences seemed a lot more animatedand involved than English ones. Theyasked a lot of questions and keptthanking us for coming.

“With JETs we then organised an openday at FRC. The response was great.Over 25 people attended and we wereable to fill four out of nine vacancies withpeople from ethnic minority communities.

“We still have a long way to go but thisprocess taught us a lot. It showed thatyou don’t need to complicate issues andpay other organisations to solve yourproblems. This option may soundattractive but you can end up withdisappointing results.

“It’s much better to take responsibilityyourself. At the time, recruiting morepeople from minority communitiesseemed like a problem. But the problemwas us. Now it’s a lot morestraightforward. It doesn’t matter whichcorner of the globe people come from, ifyou want to get your message acrossdon’t rely on others. Talk to peopledirectly.”

Collette Dunning works in FRC’s peopleand learning team.

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Keep it simple – the answer isoften right in front of you


“FRC has always enjoyed a high profilein the North West and across the UK.

“People came from all over the countryto see how we operate and how wemanaged to make the leap from agrants to a sales culture.

“We were always happy to do this.After all, most visitors were in the samesocial regeneration business.

“As we grew the number of visitors alsogrew. At times there seemed to behordes of people touring the building.Once a coach full of people fromYorkshire pulled up unannounced atour front door.

“We tried to restrict visiting hours toone day a month. This was basicallycrowd control. It did not work. We werehaving difficulty releasing staff fromtheir normal work to conduct tours ofthe building, so the quality of the toursand the service visitors received waspatchy.

“I hate to say it, but we were feeling abit resentful towards all these visitors.We were giving up our time andsharing our expertise and gettingnothing back. We sometimes felt likewe were running a theme park.

“Visitors coming to Liverpool werealready paying for accommodationand food. So we decided to create aseparate company called the Cat’sPyjamas. This would offer an all-in-onepackage which included a cost forsharing our ‘intellectual property’.

“Even though this charge was basedon the size of the organisation visitorscame from, it caused an uproar.

“People accused us of being mercenaryand turning our back on otherorganisations. Our argument wassimple: people want to visit FRCbecause we are a successful socialbusiness. We have social aims andobjectives, but we have to make money.Giving away our experience and tyingup valuable staff time for no discerniblebenefit was commercial lunacy.

“The Cat’s Pyjamas is now almostthree years old. We are still inundatedwith requests to visit but now both FRCand our visitors benefit.

“Our staff and managers also find theprogramme useful. They commit timeto it because they know that there areno time-wasters in the party. They arealso challenged by the blunt and directquestions which visitors are nowencouraged to ask.

“Over 400 people have now been ontours organised through The Cat’sPyjamas. The feedback has beengreat, and the issue of price is rarelymentioned.

“Charging fees has worked because ithas introduced a sense of value. Ourvisitors value their trip to Liverpoolmore – and take it more seriously –because they have to pay for it. We dohave a small number of bursaries butdo you know what? It’s always thepeople with free places who don’t turnup or drop out at the last minute.

“It also makes us more confidentbecause we know that others arevaluing our experience and know-how.”

Ann-Marie Grimes is manager of theCat’s Pyjamas.

13Value your own experience

We’ve always been keen to shareinformation with others who areworking towards the same goal.But as our profile rose, more peoplewere coming to Liverpool to see forthemselves what we were up to.Eventually, we decided to startcharging for this service. Ann-MarieGrimes explains how everyonebenefitted from this decision.


“My working conditions were dreadful. I wasstuck in a hut around the back of ourwarehouse with no windows. In the winter itwas freezing. In the summer it was stiflinghot … and whatever time of year it washopelessly overcrowded. There were six ofus in a space designed for only two people.

“We really did think that we had drawn theshort straw. We were falling over each otherall the time. It seemed impossible to getanything done.

“So when I heard that FRC was going tomerge its two buildings and redesign a newworking space for all the staff, I thought itwas long overdue.

“I know some people were uneasy with theidea of spending money on staff workingconditions. They grumbled on about howFRC shouldn’t spend money on a fancybuilding with all the trimmings when its remitwas to look after the poor anddisadvantaged. To them it just did not seemright.

“Most of us felt differently. It wasn’t as if wewere spending money that the company didnot have. It was already in the bank. If wewere a private business that cash would gointo the directors’ pay packets or be spenton smart company cars for those at the top.So, why not spend it on the staff?

“The refurbishment took over six months. Itwas handled quite well. Anyone who wantedto contribute ideas could join a staff forumwhich was consulted at every stage alongthe way.

“We now have a modern, bright workingenvironment. Everyone has enough room towork in and has access to a window.

“I’d be lying if I said work was always apleasure, but at least now it seems easierand a far more pleasant experience.

“Visitors are also impressed. The receptionarea and the whole office suite makes FRClook like a professional and successfulenterprise. It gives people confidence in usand forms a positive impression.

“Some people still complain. The new airconditioning system has been a bit of anightmare and reception desk is badlydesigned, but these are minor things.

“Of course FRC could have given themoney away to worthwhile causes. Butspending it on creating a special place towork has given the whole organisation ahuge lift … and in the long term that has tobe a good investment.”

Gill Fitzsimmons is FRC’s events andhospitality co-ordinator.

14

Value yourselves and your surroundingsMany not-for-profit organisations share a culture of self denial. They feel guilty aboutspending money on their own buildings and working conditions. When we wererefurbishing our headquarters we resisted this way of thinking. Modern, light-filled,comfortable, air conditioned offices and warehousing were not self indulgent but animportant way of creating confidence in ourselves and for potential partners andcustomers who come to visit. Gill Fitzsimmons outlines the benefits.


“When I joined FRC as chief executive inJanuary 1998, I was thrilled about theprospect of leading such a dynamicorganisation. But – like anyone who hasjust landed their dream job – behind thesmiles and excitement I was also a bitapprehensive.

“To me FRC had always beentremendously creative. One of the keyfactors behind its success was the abilityof Nic Frances – the previous CEO – tocome up with creative ways ofaddressing old problems.

“How on earth was I going to come upwith all the ideas in the future?

“I soon learned that creativity is notabout waiting around for that Eureka!moment. Few people are able togenerate ideas which are genuinelyoriginal.

“For most of us being creative is beingable to open yourself up to new ideasand experiences and then adapt themso that they work in your environment.

“I only realised this when I was visitingSouth West Airlines in Texas. We hadbeen struggling with how to improve ourstaff training and developmentprogramme. And then there it was inDallas! The airline had a programme tosupport and encourage staff called‘University of the People’.

“It was ideal for FRC. But rather thancursing my luck and wishing I had comewith the idea, I lifted it ‘lock, stock andbarrel’ and used it at FRC.

“I’m not shy or coy about this. I’m proudof it! We have subsequently used theSan Francisco-based Delancey StreetFoundation’s removals service idea,calling it ‘amovingexperience’. Even our‘one stop shop’ furniture business wasinspired by Newcastle City Council.

“The key to creativity is to exposeyourself to as many different ideas andorganisations as possible. Simply getout there and see what’s going on!

“You need to invest your time andenergy meeting people in their workingenvironments. At FRC we make adeliberate effort to visit new

organisations. If a venture soundsinteresting – whether it’s public, privateor voluntary sector – we phone them andask if we can visit.

“Doing this, we found that coming upwith ideas is not difficult. The trick isfinding ways to adapt them to ourenvironment.

“Creativity is not just generating ideas.It’s about accepting that there arealways new ways of addressingproblems and being positive about thepossibilities. We have tried to embed thisin our working culture at FRC. We alwaysreward and acknowledge creativity fromany member of staff. For us creativity isnot so much a talent as a commitment.

“This has paid dividends for everyone atFRC. We have a reputation for beingcreative. Others always say that theplace buzzes. This is great, especially asit means that I no longer have to worryabout coming up with all the ideas!”

Liam Black is FRC’s chief executive.

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Creativity – a commitment not a talentLiam Black never thought he was particularly creative. He then realised thatrunning a creative organisation did not mean that he had to dream up newworld-beating ideas every day. He could beg, borrow or steal them from others…

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FRC Group exists to reduce inequality and to create jobs for people whoreally need them. The Group is made up of 6 businesses involved in a rangeof markets including domestic furnishings (Furniture Resource Centre,founded 1988), furntiture retail (Revive,1998), waste management (BulkyBob's, 2000), and consultancy and learning (The Cat's Pyjamas, 2001). In1996 we established CREATE, a white goods recycling and trainingenterprise, in partnership with Thorn.

In 2003 we opened the first Ben & Jerry's ice cream PartnerShop in Europe.Across all its activities FRC seeks to offer training and support to peopleexcluded from the labour market. Full details of all our activities as well asour independently verified social report are available at www.frcgroup.co.uk

FRC GroupAtlantic Way Brunswick Business ParkLiverpool L3 4BE

Tel: 0151 702 0550 Fax: 0151 702 0551

Email: [email protected]: www.frcgroup.co.uk

Charity No. 700731 Company No. 229639 VAT Reg. No. 712 5509 56

This Profile has been sponsored by

£10Researched and edited by Adam Woolf, ProseWorks.

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