It seems hard to believe that is almost two years since I joined the Co-op Board. But AGM papers have just started going out to members, and include the ballot for electing Member Nominated Directors. It’s my turn to stand again.
I’m very much hoping to be re-elected for a second term. My colleague Ruth Spellman has decided not to stand again owing to her other commitments, so I’m the only current MND standing in this year’s election.
Over the last two years I’ve got to know my way around the Society (you can see something of this by looking at my posts on this blog over the past six months). I’ve been able to build relationships with many colleagues and Council members and I’ve spent time listening the the views of customers and members around the country. So I believe I’m well-placed to contribute to our planning for the next stage of the Co-op’s Renewal, and can provide continuity as we build on the successes and learn from the experience of the last two years.
My “manifesto” can be found here and if you are gluttons for punishment you can even see a short video of me making a two minute pitch!
A brief summary is that if re-elected I would focus on four things:
- Firstly, empowering and equipping our colleagues so that they can use their skills and enthusiasm to serve our members and customers even better and get properly rewarded for doing so.
- Secondly, extending our commitments to sustainability and ethical trade: more Fairtrade; more local suppliers; healthier ranges; less food waste.
- Thirdly, I want to see us re-engage with the wider co-operative movement so that together we can truly champion better ways of doing business.
- And fourthly, we need to build local structures that really connect with members and their communities and deliver benefits to them so that we feel like a real Co-op and not just any other business.
So if you are a member of the Co-op and entitled to vote I would very much appreciate your support!
Spent yesterday visiting the wonderful Beamish open air museum here in the North-East. As always one of the highlights was going round the village high street from the early 1900s: a high street dominated by the Co-op’s grocery and haberdashery stores.
I loved the nostalgia of looking along shelves to see some brands that are still going strong (Colman’s mustard, Rowntree chocolate …), and other products that have long since disappeared. Lots of Co-operative Wholesale Society own brand products too, of course, many of them manufactured and packaged in our own factories and proudly labelled with their origins. Early examples of the importance of knowing a product’s provenance.
And there were the posters urging customers to “Join Us” as members – something we are still encouraging people to do today.
Over half a million customers have signed up to become members since the New Year – so we are well on our way to the target of one million new members this year. But we need to do more than sign people up. We need to reconnect with the local community too, in the same way that the store at Beamish was once the heart of the community in Annfield Plain.
So I am delighted with the £9 million we have given to 4,000 good causes around the UK and that we have announced in the last week. This is the first fruit of our 1% donations on all own brand products bought by members since the relaunch of our Membership offer in September. As the scheme builds we hope to be giving £20 million a year in this way: that’s serious money. I hope the pioneers and the many colleagues who worked for Co-op down through the last 170 years would be proud of what we are still able to do in the spirit of the service they gave their local communities.
I was delighted to spend a morning attending a “town hall” meeting with colleagues from Co-op Funeralcare in Washington. These are a relatively recent initiative to allow colleagues to be updated on progress in the business and get their feedback. Colleagues from the Funeralcare support centre in Manchester are encouraged to get out to these local meetings around the country as a way of ensuring they keep in touch with the realities of life at the front line.
Thinking back through Co-op history making provision for a dignified funeral was a key concern of our members in the nineteenth century, so it is great that we continue to provide a high level of service in this sector to this day.
There is a remarkably good story to be told about our recent performance:
- Growth in market share for the first time in five years 29% market share in sales of pre-need funeral plans – an excellent sign for the future Investment in new funeral homes – now over 1,000 around the UK – and in renewing our fleet of vehicles.
- Launch of a low cost Simple Funeral to help address funeral poverty – which has forced competitors to respond in kind.
- Announcement that we will provide funerals free of charge to any person who is 17 or younger, helping families at a time of acute grief: an initiative that was recently commented on positively by the Prime Minister in the House of Commons.
- Merger of the funerals business with our legal services operation, to maximise the synergies around will writing and probate work and provide a fuller service to our clients.
- Development of new software by our Digital team that promises to transform the back office operations of Funeralcare, improving efficiency and releasing colleague time to care for bereaved families.
Under the leadership of Richard Lancaster and Robert McLachlan there is a new confidence and willingness to take the business forward with a clear focus on caring for families. I was impressed by the positive comments and clear engagement of the colleagues at the briefing session.
At the session I was able to hear more about the Digital project (now being trialled in Edinburgh) from Regional Operations Manager, David Knowles. David was seconded to the Digital team for six months, to make sure that someone who really understands the needs of the business was plugged into the systems design from the outset. His enthusiasm for the potential improvements that would flow through was tangible, but I was especially pleased to note how positively other colleagues responded to the news: embracing the change rather than fearing a new challenge.
It was also great to be given a tour of the Washington Funeralcare centre, the hub of a network of homes in the area.
Our senior manager Karen Crake, with nearly thirty years of experience, is justifiably proud of her purpose-built building, for it looks very smart and professional throughout. They are the sort of premises in which the deceased can be handled in a dignified, respectful and professional manner, with strong standards clearly in place. I heard several stories of funeral directors visiting from other non-Co-op organisations and being amazed by the quality of what we do. Our main competitors, Dignity, in their recent results announcements called for more regulation of standards in the funeral industry. I am confident that the Co-op already leads the way in this respect, and we would welcome the opportunity for standards to be improved across the board to benefit families everywhere.
So thanks to David, Karen (shown in the photo above, with me) and Funeralcare’s Head of Marketing Lorinda Robinson for making me so welcome!
This week has been dominated by preparations for the release of the Co-op Group annual results for 2016 on Thursday.
The headlines have predictably focused on the decision to write down the value of our holding in the Co-operative Bank to nil. Although the headlines say this means we just get it to be “worthless”, in fact it simply points to the impossibility of being able to put a clear value on the shares at a time when a sale is in prospect and uncertainty is being fuelled by (often misleading) press speculation.
The newsworthiness of this item and the fact that the write-down turned our year end profit into a loss have hidden a lot of other good news:
- All three of our core businesses (Food, Funerals and Insurance) have shown growth in both sales and market share.
- Strong uptake of our new membership scheme, and re-engagement of many members with the Society.
- Operating profit was up 32% year on year.
- Underlying profit before tax was slightly down on last year, but ahead of our budget and unsurprising given the scale of re-investment we are making across our businesses and in re-launching our brand and membership proposition.
The full press release can be found here.
Our markets remain fiercely competitive, of course, so the next couple of years will be challenging. Nevertheless we now have a stable and much stronger platform from which to develop and launch our plans for the future. It was interesting that the BBC coverage ended up focusing on what markets the Co-op might choose to enter next and disrupt. That’s quite a change from just three years ago when everyone was wondering whether the Group could even survive!