Voluntary Sector Training: business strategy and planning
Because of our work: VST changed its business model and merged with a strong partner to grow its services and impact.
Voluntary Sector Training (VST) is a specialist, not for profit, training provider helping voluntary and third sector organisations in Essex to become more efficient, skilled and knowledgeable.
Established in 1999 with a Lottery grant, VST had expanded impressively and delivered more than 2,000 courses to improve the skills of more than 20,000 people.
Reduced local authority spending was affecting the voluntary sector in Essex deeply and VST found that demand for its services had fallen sharply. While training is a basis for continuous improvement, it is often the first budget to be cut. VST wanted to explore opportunities to generate income and possibly develop a new business model.
Stage one: understanding VST’s challenges. Initial discussions with the client identified a clear need for an immediate and robust appraisal of the VST’s viability. We agreed to work with a Spearhead Group; manager, Chair and two Trustees.
Stage two: identifying underlying issues. A workshop with the Spearhead Group revealed that previous consultants had provided encouraging but ultimately unachievable recommendations. After reviewing financial statements and budget forecasts, it was clear that VST was in a precarious position.
We interviewed staff and management and found that VST’s problems challenges were not simply a result of reduced demand from local authorities. We identified cultural weaknesses that meant basic sales techniques were failing. As VST was, essentially, a training brokerage service, this was a major failing.
Stage three: our recommendations. We presented a final report to the Spearhead Group. This set out options for focused sales delivery. It also highlighted the need to develop a new business model, or perhaps even close the business
Result: VST sought new delivery partners and has now merged with Community 360, a strong and successful third sector infrastructure group in the county.
To have an honest appraisal of our organisation, while painting a negative picture, is a refreshing change. Your report has focused our minds and confirmed some of our deeper concerns. Thank you