Business Profile withHerman Allen

The phrase ‘social enterprise’ is a relatively new but commonly used phrase.

It describes an organisation with the mission to address some human or environmental need. The focus is on improving some specific aspect of society, and in some way that’s reward in itself and where the real profit is to be achieved.

Our Businesses

I run two organisations, both social enterprises, Holibrook House and Hopewell School aimed at caring for and educating young people who have had challenges in those areas These types of provision used to be run entirely by the local authority but in recent years they have been outsourced to the private sector

My Approach

Whilst some social enterprises are structured on a non-profit basis we took the view from the outset that we would operate as a for-profit company

Social enterprise businesses operate in a market like any other business and that is the first and most important thing to understand. Even though the product is ‘ care ’ or ‘education’ all the principles associated with supply and demand still apply

We have been running Holibrook House for two decades now, and have had to meet all the challenges that any normal business meets in order to grow and succeed It always begins with identifying an area of need or market for a proposed product For us it was the shortage of good quality residential accommodation for young people caught up in the care system.

My Experience

Prior to starting the company I had zero experience in the social care industry. The move from a career of being a design engineer in the construction industry to setting up a social care business was dramatic. But the one thing engineering gave me was the ability to solve problems. Even though the problems were considerably different from the problems I had encountered, I found that coming from outside of the industry gave me a unique perspective I found I did have the personal skills that matched with the potential service in terms of leadership and creativity.

My Team

I was well aware that this would not be a one-man band as operationally I would need skilled operatives to carry out the work in an industry I was not trained in John Maxwell is quoted as saying, ”teamwork makes the dream work ”

I have taken the decision not to become too enmeshed with the operational aspects of the business such that I am able to see ‘the woods from the trees’, thus keeping my focus on the business needs and development I admit this has only been partially successful because the temptation is always to become submerged in the day to day

It takes real effort to stick to my core competencies of providing strategic direction and business management, but I have found that the business thrives better when I do.

As an owner of a social care business I constantly remind myself that the purpose of the business is to provide a service that the community profits from and that must always be the primary motive However, we need to be viable as a business so profits are very important but still of secondary consideration.

In practice to ensure this happens I allow responsible and social care trained partners/staff within the business to make decisions where conflict of interest could have arisen if I had made the decision, such that it’s very clear, ‘people first, profits second’.

Over the years we have built a multi £million social care business currently with over 80 staff employed in the various teams and still expanding We are in the business of providing care and education and our continued success will be a function of how well we provide those services

To that end we have developed a Code of Honour, which starts, ‘Mission first ’

This is a constant reminder that commercial success is very much related to committed people focused on providing a caring and competent service that achieves the best outcomes for the people we serve