5 Year Strategic Plan - 2016 to 2021 - Brio Leisure

5 Year
Strategic Plan

                 2016 to 2021
Section I - Introduction - Pg 4

•   Who are we?
•                     Section 5 - SWOT Analysis - Pg 28
    What we offer

Section 2 - Mission and Aims - Pg 6   Section 6 - Strategic Principles - Pg 29

Section 3 - Journey to Date - Pg 8    Section 7 - Four Pillars, Visions & Values - Pg 30

•   Historic context
•   Progress                          Section 8 - Performance Management - Pg 35

Section 4 - Drivers for Change        Section 9 - Risk Management - Pg 36

Environmental Analysis - Pg 11
•   The UK Fitness Industry           Appendices
•   Customers and Consumer Demands
•   The Local Demographics            A - 4 Pillars and Milestones - Pg 40
•   The Cost of Physical Inactivity   B - Vision and Meanings - Pg 43
•   Participation                     C - Summary of Influencing Strategies - Pg 45
•   External Strategies
•   Public Investment
•   Communication

Internal Analysis - Pg 21
•   Resources - Buildings
•   Resources - People
•   Resources - Finance
•   Resources - Brand
•   Resources - Customer Base
•   Resources - Partnerships
Section 1

    Welcome to Brio Leisure’s 2016-2021 rolling 5
    year business plan framework. The purpose of
    this document is to set out our mission, journey to
    date, drivers for change, strategic priorities and key
    strategic milestones to be achieved over the coming
    5 years. This strategy is a five year rolling programme
    which will be a ‘live’ working document and subject to
    frequent review.

    The strategy and associated plans have been
    constructed by carefully:

    •   Reviewing lessons from past 4 to 5 years;
    •   Benchmarking our performance against the wider
    •   Reflecting on shifts in the local and national
        market and competitor analysis;
    •   Evaluating trends in consumer habits;
    •   Appraising risk;
    •   Assessing the requirements of the Council within
        the delivery of all services;
    •   Identifying opportunities for innovation.

With 5 years’ experience and a track record
established, Brio’s ambitions have grown.
                                                          Who are we?
Boasting strategic sites accessible across the Borough,   Brio Leisure was established as a Community Interest
Brio was delighted to receive formal approval of a        Company in 2011 by Cheshire West and Chester
new 15 year contract with our shareholder Cheshire        Council. As a wholly owned subsidiary of the Council,
West and Chester Council and a repositioning of the       we share its vision of customer first, value for money
company as an integrated health, fitness, leisure         and best practice.
and wellbeing provider in 2015. This positioning has
been further endorsed via a formal commission from
the Public Health team to deliver relevant health
                                                          What we offer
outcomes. Over the course of the next five years we       We offer a cohesive range of health, fitness, wellness
are committed to:                                         and leisure services in various indoor and outdoor
                                                          community settings, many managed directly by
•   Redefining ourselves as an agent for community        us. This includes a range of high quality services
    health and wellbeing;                                 delivered directly by us or in partnership with
•   Creating a whole new interactive, high quality        reputable providers offering:
    experience for customers which enables them
    to become champions of their own health and           •   Swimming, fitness and exercise classes;
    wellbeing;                                            •   Sport and games;
•   Improving and extending our services through co-      •   Health advice and referrals;
    located services and partnerships;                    •   Smoking cessation and weight management
•   Engaging the community in the ways and places             services;
    they choose;                                          •   Flexible exercise, fitness and physical activity
•   Continued partnership working with relevant               programmes;
    providers.                                            •   Entertainment and cultural programmes, events
                                                              and shows.

Section 2
    Mission and Aims
    Brio Leisure’s overarching aims are reflected in our
    Mission: ‘Supporting fitness, fun and health at the
                                                               The Council requires Brio to work towards and adhere
    heart of life’. This summarises our desire to help
                                                               to key national, regional and local strategic policy,
    everyone in the community get the most out of life.
                                                               working with other partners where appropriate. Brio
    Complementing this goal, it is important that we meet
                                                               must be able to demonstrate that the services are
    the aims the council have set for us.
                                                               having a positive impact on physical activity, health
                                                               and wellbeing among individuals and communities
    Contractual requirements                                   within the Borough.
    Through our contract with Cheshire West and Chester
    Council we contribute to their wider responsibilities      Brio must support the achievement of the plans in the
    regarding improving life expectancy, particularly          Council’s Outcomes Documents by working with key
    healthy life expectancy and reduced health                 partners within sport and physical activity, health and
    inequalities. To enable the Council to achieve this aim    wellbeing and entertainment.
    Brio must:                                                 The current strategic priorities of the Council are to
                                                               promote healthier communities by reducing obesity,
    •   Increase participation among those most deprived       narrowing health inequalities and increasing absolute
        and marginalised;                                      levels of physical activity; promoting community
    •   Reduce social exclusion;                               cohesion by improving equality of access, providing
    •   Help people to actively manage their own health;       activities as a diversion from anti-social behaviour,
    •   Promote employability;                                 raising educational standards, contributing to
    •   Build the culture offer by delivering a full diverse   economic growth and regeneration, reducing crime
        range of entertainment and civic activities            and the fear of crime; and promoting sustainability
        through an annual programme as set out in the          and tackling climate change. The Council also wishes
        Performance Management Framework (PMF).                to support pathways to excellence in sport, leisure
                                                               and entertainment in order to provide inspiration for
                                                               others within the Borough which will encourage them
                                                               to participate. These strategic priorities have to be
                                                               achieved in a climate of reduced resources requiring
                                                               more efficient and effective ways of working to
                                                               deliver the Council’s Outcomes.
Brio has a carefully structured planning framework
                                                             to ensure that all elements of our strategic and
                                                             operational plans, and their associated objectives
                                                             and Milestones, are fully integrated. Our Integrated
                                                             Planning Framework is shown on page 8 & 9.

              Brio’s mission statement is simple yet meaningful:

Supporting fitness, fun and health
                at the heart of life
Mission                                                                          Internal

    National                             Local                            Vision
    Influencers                          Influencers

    Sport England - Towards an Active    CWAC Physical Activity & Growth
    Nation 2016 - 2021                   Strategy 2016

    HM Government Sporting Future -      CWAC Health & Wellbeing
    A strategy for an Active Nation      Strategy 2015 - 2020
                                         CWAC ‘Thrive’ Plan 2016 - 2020            Brio Leisure
    HM Government - Childhood                                                      5-Year Strategy
    Obesity ‘A Plan For Action’ August   CWAC ‘Building a Public Health
    2016                                 System’ 2015 Annual Report

                                         CWAC Cultural Strategy 2015

                                         CWAC Falls Prevention Strategy
                                         2017 (draft)

Brio Leisure: Integrated
Planning Framework                                  Annual



                           Audience        Health &           Community        Capital
                           Development     Wellbeing Plan     Development      Investment
                           Plan                               Plan             Plan

                           Environmental   Brand               Entertainment   Workforce Plan
                           Plan            Development         Plan

                                  Financial PlanC     atering Plan    Communications

Section 3
     Journey to Date
     Historic Context                                           Progress Since 2011
     On 29 September 2010, Cheshire West and Chester            Brio has flourished over the past 5 years, as strong     swim, designed to respect the cultural needs of our
     Council’s Executive made the substantive decision          foundations have been laid to enable the company         community. The offer to Armed Forces provides
     to establish a Community Interest Company (CIC)            to improve its image, efficiency, quality and value.     additional opportunities to train whilst away from
     to deliver leisure operations. The Council’s aim to        Positioned in the heart of the Borough, the ultimate     active duty, or whilst making the transition into
     transform public leisure and entertainment services        focus has been to serve the community of Cheshire        civilian life. We also provide support to families with
     became Brio’s mission; to provide socially responsible     West, using leisure and entertainment products to        Looked After Children, the next generation of service
     leisure opportunities for all, in a welcoming, safe        connect and inspire local people to get active.          users.
     and supportive environment. From the outset the
     Council was determined to create a customer focused        Despite a challenging economy and industry shifts,       ICT systems have been upgraded including a new
     organisation, responsive to local needs and demands        Brio’s services remain competitive, innovative and       company server and extended WiFi availability at sites.
     whilst at the same time being affordable and inclusive.    inclusive.                                               This has been further supported by on-line booking
                                                                                                                         developments including ‘join and book at home’ and
     From initial concept approval, just 213 days later a       Specific investments and improvements have resulted      kiosk facilities at the main hub sites to cut down on
     fully-functioning Brio Leisure, with Directors and brand   in the following developments:                           queuing. The first year of the new contract (2015/16)
     in place, seamlessly opened its doors to the public as                                                              saw many other notable achievements including:
     the Council’s wholly owned Leisure CIC. The first of
     its kind in the country. The CIC model brings together
                                                                Customer Experience                                      •   Successful funding and partnership working with
     the efficiency of the private sector with the ethos and    A complete new brand and a brand awareness                   ‘Active Anywhere’ to deliver buggy burn and firm
     values of the public sector.                               campaign, including a new website was launched on            with new parents;
                                                                Brio’s inception. This went on to win a Bronze award     •   As a result of customer consultation, a re-launch
     Just 6 months later, the Board of Directors had drafted    at the national annual event of ‘Transform Awards’ –         of our website providing site specific pages and
     the first cohesive strategy for the delivery of leisure    a first for a leisure operator. Continued development        programmes for ease of use;
     and entertainment services in the Borough - a plan         goes into the website to ensure ease of access for the   •   Vivo Care Choices co-locating with Brio to deliver
     that would achieve the balance between social and          end user, and a swift response process to social media       ongoing co-located services from Northwich
     economic drivers. Despite the challenge of transitioning   feedback supports the more traditional methods of            Memorial Court, providing day care service users
     more than 600 staff, creating a new brand and culture,     ensuring speedy solutions to customer queries.               with access to a wider range of wellbeing and
     streamlining memberships and developing new                                                                             lifestyle services;
     services, within 12 months the ambitious new strategy      Customer engagement via surveys indicates high           •   A Leisure Card was introduced in January 2016 to
     had been formally endorsed and published.                  levels of satisfaction for service provision and             capture core data on non-member customers, and
                                                                the feedback shaped the development of our two               which will provide valuable intelligence on user
     Brio’s CIC structure allows flexibility and efficiency,    new sites opened in 2015, and also the continued             habits to enable the business to be responsive to
     with reduced bureaucracy often associated with Local       programmes of diverse activities across our portfolio.       future needs;
     Government. At the same time, Brio inherited the                                                                    •   Continuing      to  maintain    ongoing     Quest
     Council’s social values, prudent financial management      The business structure has facilitated the                   accreditations, via independent assessment,
     and probity, safeguarding the leisure assets for the       development of more responsive and innovative                evidencing best practice of our leisure offer,
     community going forward.                                   front line services and examples include a modesty           benchmarked against industry.

Brio’s portfolio of assets transitioned to its common
brand and a simplified product range which offers
the variety customers demand whilst ensuring
consistency of service. The golf product was
outsourced in 2015 to allow greater focus on the
leisure, health and entertainment market. More than
£30m has been invested into two state-of-the-art           Brio also undertook a comprehensive review of facility
facilities in Northwich and Ellesmere Port which both      programming to identify opportunities to improve
opened in 2015. Northwich Memorial Court features a        access and/or quality of service. This provided an
combination of both leisure and entertainment facilities   opportunity for us to review direct versus indirect
amalgamating two predecessor assets into one, and          services and work closely with a wide array of existing
enabling cross fertilisation of the entertainment and      users to ensure that programming and charging is fair
culture market with that of leisure.                       and meets customer needs.                                 affordable prices. The first year of the new contract
                                                                                                                     (2015/16) saw many other notable achievements
                                                           As a consequence of this review, booking protocols        including:
                                                           have been redesigned to enable those most in need
                                                           of support to access more cost effective solutions. A     •   The successful funding and delivery of two new
                                                           series of seasonal promotions have brought in new             All Weather Pitch facilities;
                                                           business and encouraged non-users to try services at      •   A new Gym for Winsford Lifestyle Centre was
                                                                                                                         implemented in January 2016 aligned to the
                                                                                                                         successes of the other 3 hub sites, who all had
                                                                                                                         new facilities earlier in 2015;
                                                                                                                     •   A new 100 station gym and spin bikes at Northgate

Membership Base
     Brio has continued to achieve healthy growth in it’s      benchmarks. Brio continues to retain Quest at four
     membership base with records indicating over 20,000       sites and uses this as a baseline to drive change and
     customers are Brio members.                               innovation across the wider portfolio.

     Financial growth over the 5 year term has seen income     Our understanding of our customer base has
     rise from £6.6m in 2011/12 to £10.5m in 2015/16,          developed significantly, with improved data capture,
     largely attributable to membership growth. WorkFit,       analysis and engagement through social media and
     the corporate membership scheme, now supports in          other sources. The first year of the new contract         Environmental Analysis
     excess of 800 businesses across the Borough. The first    (2015/16) saw many other notable achievements             A lot has changed since we commenced
     year of the new contract (2015/16) saw many other         including the review and formulation of new support       our journey in 2011 and this needs
     notable achievements including a newly implemented        service functions and also the continued investment       to be factored in to future plans to
     Leisure Card which was introduced in January 2016         in an innovative, responsive and dedicated workforce,     ensure that we remain relevant and
     to capture core data on non-member customers, and         which has had to flex and adapt to attain and deliver     competitive within the local and
     which will provide valuable intelligence on user habits   everything we have achieved so far.                       regional market.
     to enable the business to be responsive to future
     needs. Currently 91,000 people hold a Leisure Card
     across our borough population.
                                                               Combined Leisure and Cultural                             Strategic changes have occurred within
                                                                                                                         the landscape at an unprecedented
                                                               Model Rationale                                           pace, which have a direct impact on our
     Our entertainment model holds a database of               Our combined leisure and entertainment model seeks        business, notably:
     customers who regularly attend performances and           to exploit the synergies between both aspects, not
     shows hosted by Brio, partner agencies and touring        only through the cross fertilisation of each product      The Fitness Industry
     promotional companies. We use this to promote and         range, but also to provide a wider offer to the health
     cross sell offers with the leisure product range and                                                                Customers and Consumer Demands
                                                               and wellbeing agenda. Mental health and the value of
     vice versa.                                               cultural activities is as equally important as physical   The Local Demographics
                                                               activity to some, and the breadth of our service          The Cost of Physical Inactivity
     Organisational Development                                enables choice. The co-location of leisure and culture    External Strategies & Current Position
                                                               in Northwich Memorial Court enables effective cost        Public Investment
     Within the first year of operation, some 600 staff        sharing of staffing and building overheads enabling
     contracts terms and conditions were harmonised to         the company to provide a greater range of services at     Communication
     ensure parity and consistency. Despite this initial       a reduced overall cost, and which contributes to the      Resources
     disruption, staff satisfaction remained high and          reduction in management fee to operate the leisure
     sickness absence is well below the industry norm.         contract.
     Brio has also diversified the talent within the team,
     supporting a wide range of work placements and            A differing audience base for both aspects enables
     apprenticeships, and has extended its team to             Brio’s reach to the community to expand further, and
     include a Community Development Unit, and placed          has seen differing partnerships developed as a result
     greater resource into areas of need which support the     with local agencies. The cultural facilities enable
     customer journey, such as Fitness and Aquatics Leads.     local small organisations to experience affordable
                                                               access to theatre facilities which would otherwise be
     An independent report jointly commissioned by the         unavailable and often out of Borough, thus bringing
     Council and Brio evidenced capability to deliver for      local opportunities into these localities.
     the future, and placed Brio in the top quartile for
     swimming and lesson delivery against industry

Section 4
                                                                                               Drivers for Change
The Fitness Industry
The 2016 State of the UK Fitness Industry              •   The UK penetration rate is 14.3%, compared
Report reveals that the UK health and fitness              to 13.7% in the previous year.
industry is continuing to grow. It has more clubs,     •   224 new public and private fitness facilities
more members and a greater market value than               opened in the last 12 months, up from 191
ever before. The 2016 report highlights that               in 2015.
the industry has experienced another year of
impressive growth over the twelve month period         Proposed Action
to the end of March 2016, with increases of
1.9% in the number of fitness facilities, 5.3%         Brio must differentiate itself in the market to
in the number of members and 3.2% in market            maintain and grow its customer base in the
value. For the first time ever, member numbers         context of rising competition. Pricing needs to
have exceeded 9 million and 1 in every 7 people        be sensitive and attractive to ‘first timers’ and
in the UK is a member of a gym, which is an all-       those on low-incomes, and the quality of the
time penetration rate high.                            customer journey and interface with our teams
                                                       needs to ensure our products remain attractive
The influential low cost market with its large         and relevant.
membership numbers, online joining, 24/7
opening hours and low price points has continued
to expand rapidly and drive the growth in
the industry. The private low cost sector now
accounts for 12% of the total number of private
                                                       So what?                   Pros
clubs, 13% of the private market value and a                                      •   The market continues to experience growth
huge 32% of the private sector membership.                                        •   Inactive people and those on low incomes are engaging in physical
For the first time ever, a low cost fitness operator                                  activity via low cost operators
is the UK’s number one. Pure Gym has added 60
clubs in the last 12 months taking them past the
150 mark and into the top position. A summary
of the key facts are as follows:                                                  •   Increased competition for our market – need to differentiate
                                                                                  •   Need price sensitivity
•   There are now 6,435 fitness facilities in the                                 •   Need enhanced understanding of first timers
    UK, up from 6,312 last year.                                                  •   Can only compete on service – it has to be great
•   The total industry membership is up 5.3% to
    9.2 million.
•   Total market value is estimated at £4.4
    billion, up 3.2% on 2015.
Customers and Consumer
     Demands                                                Proposed Action
     Consumer demands are ever-changing and are             Brio will embrace technology to improve
     heavily influenced by technological changes.           interactivity and the social elements of service to
     According to Sport England research the primary        fulfil wider (and deeper) customer requirements.
     3 sources of satisfaction for participants are         Extending and improving the services which
     ‘release and diversion’, ‘people and staff’ and        provide the whole package to an experience such
     ‘social aspects’. Whilst the environment within        as the food and beverage offer, and the option
     which people participate must be clean and safe,       on theatre ticket purchase, or to find out about
     of primary importance to consumers are more            smoking support whilst visiting for a swim will
     people-orientated services.                            enable consumers to access a wider wellbeing
                                                            solution at each visit or point of engagement.
     Our understanding of our customer base has             New technology and well-trained helpful staff
     developed significantly, with improved data            will be invaluable in acquiring data.
     capture, analysis and engagement through
     social media and other sources. The introduction
     of a Leisure card has enabled us to capture core
     data on 90% of our ‘pay as you go’ users. Our
     customers have also told us that they want
     clean and friendly facilities, with flexible options
                                                            So what?                    Pros
     on product range, complemented with a high                                         •   Satisfaction is not intrinsically linked to asset condition
     quality food and beverage offer, whether that be                                   •   People/service are considered more important than environment
     for entertainment, wellbeing or physical activity                                  •   Potential for secondary spend
                                                                                        •   Service requires ongoing improvement to achieve customer experience
                                                                                        •   We need to embrace technology including sharing experiences on
                                                                                            social media
                                                                                        •   Need to ensure our catering and social offer match expectations

So what?                  Pros
                                                                              •   Older people often have more disposable income and time
                                                                              •   We can improve health thus ensuring greater independence and
                                                                                  reduced pressure on public care services
                                                                              •   Many shared agendas with partners who are working towards the
                                                                                  same outcomes

The Local Demographics                                                        Cons
The local population is aging and growing rapidly                             •   Programming needs to consider demographic shifts
which is increasing pressures on public services.
                                                                              •   We need to support less well-off pensioners
According to the Research & Intelligence Unit,
                                                                              •   Are facilities fit for purpose and in the right locations for our target
Cheshire West and Chester Council population
is expected to grow by an additional 10,000                                       groups?
residents between 2016 and 2021 (based on
1,100 new dwellings being built per annum over
the Local Plan period (2010 - 2030). Older people
aged 65+ will represent a significant proportion
of this increase, rising from 69,900 to 76,900 in   Proposed Action
just 5 years. The number of residents aged over     Brio needs to review all of its programmes and
65 is expected to see a continued increase by       facilities to ensure that they remain fit for
over 50% by 2029.                                   purpose to target audiences, alongside working
                                                    with partners to find mutually beneficial cost
Whilst many older people often have more            effective solutions, and which will include co-
disposable income and time, we need to consider     location, commissioning joined-up delivery.
less well-off people and how we might help them     These issues are be to targeted through our four
to retain independence through fitness, reducing    strategic pillars and specific annual milestones
pressure on other Public Services.                  over the next five years.
Preventable deaths by increasing levels of physical activity among 40-79 year olds

                                                            Percentage more active                               Cheshire West & Chester                              North West                               England

                                                            25%                                                                               -11                              344                              1749
                                                            50%                                                                                70                             2210                             13,438
                                                            75%                                                                               152                             4077                             25,127
     The Cost of Physical Inactivity                        100%                                                                              233                             5943                             36,815
     There is widespread recognition of the cost of         Source: Public Health England - Health Impact of Physical Inactivity. Year 2010
     physical inactivity in health terms and the World      Measure: Estimated preventable deaths
     Health Organisation cites physical inactivity as
     the 4th leading risk factor in global mortality.
     Member states have agreed a 10% reduction in           Physically active and inactive adults
     physical inactivity by 2025.                                                                                     Physically active                                    Physically inactive
                                                            Geography                                                       No.(000s)                    Rate                       No.(000s)                        Rate
     Locally, 61% of Cheshire West and Chester local
     residents are physically inactive, costing Cheshire    Cheshire West & Chester                                                   145              55.7%                                  69                 26.4%
     West and Chester Council £6.9m every year. 923         North West                                                              2988               53.3%                               1,745                 31.2%
     residents die every year from physical inactivity*.    England                                                                24,101              56.6%                              11,854                 27.9%
     Locally, there is a desire to change this and our
                                                            Source: Public Health England - Public Health Outcomes Framework. Population figures: Annual Population Survey 2012
     ability to source external contracts and funding       Year 2012/13. Measure: Number of adults (16+) doing at least moderate intensity physical activity per week, and number doing less than 30 minutes per week.
     such as the provision of the Integrated Wellness
     contract, and the partnership with Macmillan and
     Vivo Care Choices means that we are already            Health costs of physical activity
     working hard at delivering joined up solutions to
     this issue.                                            Disease category                                     Cheshire West & Chester                              North West                               England

     (*Cheshire West and Chester physical activity growth   Cancer lower GI e.g. bowel cancer                                       £436,272                       £10,000,041                        £67,816,189
     strategy data)                                         Breast Cancer                                                           £262,736                        £7,919,863                        £60,357,887
                                                            Diabetes                                                               £1,250,933                      £29,733,783                       £190,660,420
                                                            Coronary heart disease                                                 £3,858,649                      £81,670,410                       £491,095,943
                                                            Cerebrovascualr disease e.g. stroke                                    £1,044,418                      £20,181,189                       £134,359,285

                                                            Total Cost                                                             £6,853,009                    £149,505,285                        £944,289,723
                                                            Cost per 100,000                                                       £2,091,896                      £2,145,919                         £1,8187,285

                                                            Source: Sport England commissioned data from British Heart Foundation Health Promotion Research Group for PCTs, reworked into estimates for LAs by TBR
                                                            Year 2009/10, Measure: Health costs of physical inactivity, split by disease type

Proposed Action
Brio needs to deepen its understanding of
behavioural change to engage hard to reach
groups. We also need to demonstrate the health
impacts of activity to our users and partner
organisations. Collaboration with the Education
sector will enable us to be at the forefront
of joined up research, and Brio has already
commissioned work with The University of
Chester to demonstrate the impact our offer has
on the local community alongside evidencing our
reach of service provision.

So what?

  •   Our work is of vital importance in health terms
  •   We have the potential to support both prevention and cure agenda
  •   Opportunity to link wider community services to deliver health

  •   Our ability to measure impacts is insufficient to secure the confidence
      of some health agencies
  •   We need to understand and engage more inactive people, the least
      likely to enter our facilities. Behavioural change models are required
  •   Funding to deliver focused services will be critical to Brio’s ability to
      support high cost solutions

External Strategies and                               Sport England ‘Towards an Active                     Helping the Borough Thrive
     Current Position                                      Nation’ 2016 to 2021                                 Implications and proposed action for Brio:
     Leisure provision and the associated delivery         Implications and proposed action for Brio:           Brio explicitly supports three of the key themes
     is dynamic and constantly evolving. Brio will         We will enable the inactive to become active,        as follows:
     continue to take account of existing and emerging     and will develop new partnerships to provide the
     national and regional strategies to align our         right solutions for customers to receive services    Vibrant and healthy communities with
     delivery processes to take account of the wider       in the right places. We will expand our range        inclusive leisure, heritage and culture – by
     context and the importance of an active lifestyle     of services, and use our insight from Leisure        increasing the number of leisure visits to leisure
     with a particular emphasis on participation and       Card and member data to shape future service         centres and Civic Halls, providing concessions
     social well-being. For some activities where it is    provision. We will expand our volunteering offer     to certain groups and reviewing these further
     clear that we may not be able to deliver some         through the existing programme, which includes       to establish the right support, and investing
     specific outcomes, we will work where possible        Macmillan volunteers supporting those affected       in leisure assets. Also through extending the
     with our stakeholders and associated partners to      by cancer to get active. We will develop our         service offer into communities and enabling
     offer these elements to the community.                Cultural Ambassadors scheme supporting theatre       people to access services where they best meet
                                                           goers and cultural users with access to our range    their needs.
     There are a range of current influencing strategies   of entertainment products. Our technological
     which we have used to guide and shape our own         capabilities may inhibit speed of relevant data      People are well educated, skilled and earn a
     strategy. We have identified some of the key          capture in the short term whilst we budget to        decent living – by the provision of apprenticeships
     implications of each one below.                       amend software to capture the right information.     and work placements, and developing these to
                                                                                                                provide greater opportunities for those in most
     Government Document - ‘Sporting Future – A            Government Document – ‘Childhood                     need including tackling areas of poverty, and
     Strategy for an Active Nation 2015’                                                                        through supporting paying the Local Living Wage
                                                           Obesity – A Plan for Action 2016’                    as part of the Councils’ collaboration of wholly
     Implications and proposed action for Brio: We         Implications and proposed action for Brio:           owned companies, enabling lower paid roles
     will address the wider needs of our demographic       We will work in partnership more closely with        and skill sets to access opportunities for career
     population to ensure that we reach those              key agencies including schools (which will see       development pathways.
     most in need, through promoting the services          the extension of support for the age range of
     within our built provision alongside delivery of      5-14 years in line with Sport England’s wider        Resources are well managed – by reducing
     outreach activity in locations where there are        target market too). We will do this by supporting    the need for Council support via a decreased
     gaps and target audiences. Our partnership            key annual events, such as the School Games,         management fee over the contract term.
     working on locality agendas will ensure wider         and will build our ‘out of school’ offer based on
     borough challenges, such as tackling poverty          evidential feedback on what young people want,       Brio is aware of and understands these overarching
     are supported by the Brio offer, and we will work     and which will extend the service provision into     issues and in this respect, we will continue to
     collaboratively to break down barriers, and bid       communities where we have limited take up of         seek funding from multiple sources e.g. grants,
     into new funding investment opportunities to          Brio services. We will enhance our catering offer    sponsorship, partnership working. In addition we
     support this. Continued collaborative working         to ensure more healthy solutions are available,      will assess commissioning opportunities and bid for
     on a locality level will be a priority within our     and will continue to support and raise the profile   relevant contracts which sit within the boundaries
     outreach offer.                                       of physical activity at outreach events across the   of our Articles of Association. Our objects within
                                                           Borough where we have access to young people         these provide extensive opportunities on
                                                           and their families.                                  addressing the health and wellbeing agenda.

Cheshire West and Chester Council
Cultural Strategy – February 2015
Implications and proposed action for Brio:
We will deliver a wide range of cultural activity
covering a breadth of genres, and dovetailed to
local audience groups, which we have recently         Cheshire West and Chester Council
identified within an Audience Development Plan.
The imminent mobilisation of Chester Theatre,
                                                      Health and Wellbeing Strategy 2015-
through its operator, ‘Storyhouse’ will provide       2020
Brio with the opportunity to link its local ‘place’   Implications and proposed action for Brio:
provision into this new cultural centre and will      Brio’s current delivery of both leisure and
help to enable the community to access pathways       health and wellbeing contracts places it in a       Cheshire West and Chester Council
to a range of cultural opportunities. Partnership     significant and central place to address the        Falls Prevention Strategy (draft)
working with the local arts network will enable       wider preventative agenda. We deliver specific
smaller groups such as local artists to showcase      supported interventions for smoking, unhealthy      2017-2020
work at Brio sites. Continued close working with      weight and access to supported physical activity    Implications and proposed action for Brio: As a
the Councils Arts Development team will ensure        via an exercise on referral programme. We will      key strategic lead through its membership of the
that the wider strategic Action Plan can include      work collaboratively with health colleagues,        Falls Prevention Group, Brio will help to shape the
Brio’s product alongside other providers, to          and hospitals, as part of a care and intervention   Borough wide strategy, whilst parallel, delivering
demonstrate borough wide attainment.                  pathway, which supports people on a weight          its contribution to this. The 75+ free membership
                                                      management journey which could culminate in         package and concessionary products for older
                                                      bariatric surgery.                                  people all enable more affordable solutions to
                                                                                                          keeping active. This will be evaluated and fed
                                                      Supporting this is the free of use activity to      back into the wider strategic pathway.
                                                      all borough residents aged 75+. We will also
                                                      evaluate supported programmes to understand         Additionally Brio works with key partners
                                                      the impact and value of them in delivering          including Age UK to deliver specific programmes
                                                      effective sustainable solutions to maintaining      of activity, such as Walking Football and
                                                      healthy weight, and will do this collaboratively    Swimming lessons. We will continue to expand
                                                      in partnership with Chester University and          these programmes across our portfolio and
                                                      the Councils’ Research and Intelligence unit to     in partnership with other agencies, such as
                                                      ensure that local data is captured holistically     Chester Football Club where mutual gain can
                                                      and can provide a strong evidence base for the      be attained. The growing older population will
                                                      future to shape longer term commissioning of        prove challenging in terms of volume of people
                                                      health and wellbeing services.                      needing support on a preventative pathway, and
                                                                                                          the scale of this will be assessed and fed back
                                                                                                          into the steering group to help shape decisions
                                                                                                          and commissioning going forward.

CWAC ‘Building a Public Health                          CWAC 2016 Physical Activity and                      Through our ongoing strategic research
     System’ 2015 Annual Report                              Growth Strategy (currently in draft)                 processes, we are proactive in ensuring that we
                                                                                                                  capture information on any new or emerging
     Implications and proposed action for Brio:              Implications and proposed action for Brio:           strategies and our delivery model allows us
     In responding to these statistics, we will address      We will operate as a significant local provider      to quickly react and change our processes if
     childhood obesity by reviewing our junior leisure       of leisure services on the Borough footprint, in     required. It is important to react quickly to re-
     membership, and consulting on what is needed            particular supporting other providers with our       align our delivery as required to incorporate any
     to enable more children to participate at our sites     knowledge and skills to enable more activities       new strategies, trends or initiatives.
     and in our developed outreach activities. We have       and more facilities to be used. This will include
     already supported local initiatives, such as ‘The       helping schools to open their doors to the
     Daily Mile’ and will use the evaluation of these        community out of educational hours, working          Summary
     to shape young people’s preferences, along with         alongside other providers to deliver collaborative   Brio reflects all of these external strategic
     their families’. Our partnership with Macmillan in      solutions, and working to mutual gain in cross       issues with its careful delivery of programmes
     the development and delivery of volunteering            fertilising audiences, such as our partnership       and facilities to ensure that they remain fit for
     will raise the profile and awareness of cancer          with Cheshire Phoenix Basketball Club.               purpose for all target groups. It has become
     and its links to obesity. Supporting local priorities                                                        increasingly important to align our business
     in areas with the highest health inequalities,          A developed range of led walks embedded with         operations to ensure that we meet our own and
     such as Building Futures in Ellesmere Port and          our volunteer programme, and linked to Council       our partners’ strategic objectives and also the
     Wellbeing Winsford, will be a cohesive element of       parks and open space priorities and programmes       national and local strategic objectives.
     our work programme to tackle these challenges           will support more people accessing green space,
     in collaboration.                                       complementing indoor and outdoor physical
                                                             activity options.

                                                             Overall our regional and national strategies and
                                                             evidence base present a clear picture of the
                                                             challenges and the direction of travel needed.
                                                             Over the lifetime of our rolling strategy, these
                                                             directives will change, and so we will review
                                                             that direction of travel annually through Board
                                                             planning alongside our shareholder. We have
                                                             a changing Borough demographic over the
                                                             lifespan of our contract, and which will see
                                                             significant growth in our aging population,
                                                             and growth in housing development. We will
                                                             remain aware of new challenges, and our strong
                                                             relationship with the Council means we will react
                                                             to these challenges promptly and efficiently,
                                                             demonstrating our capability as a preferred
                                                             provider for public health delivery.

Public Investment                                                                                            So what?
The main political parties agree that public            Lottery funds have also reduced since ticket
spending will contract at least until 2019/20.
With social care and waste* spending absorbing
                                                        prices increased in 2014, diminishing another
                                                        valuable source of income.                            Pros
a rising proportion of the resources available to                                                             •   Funding will be targeted to achieve
Councils, funding for other council services drops      Brio’s majority shareholder: Cheshire West &              greatest impact
by 35 per cent in cash terms by the end of the          Chester Council has less funding and needs to         •   We can provide integrated solutions and
decade, from £26.6 billion in 2010/11 to £17.2          improve connectivity of services, meaning:                should become the default partner for
billion in 2019/20. To put this in context, this £9.3                                                             preferred commissioning pathways
billion drop is equivalent to the total general fund    •   By 2020 it is expected to maintain core           •   Innovation will overcome some financial
expenditure (in 2014/15) on central services,               commissioning unit, market intelligence and           barriers
‘other’ services and capital financing combined.            community leadership function;
(source: LGA Future Funding Outlook 2015).              •   Ongoing limited investment with a focus on
Brio recognises the need to reduce dependency               statutory services;
on an ever decreasing public purse and we are           •   A focus on integrated health and social care      •   There will be reduced funding available
committed to achieving a nil subsidy by ensuring            services to improve outcomes and transform            for non-statutory services within Local
that public investment is replaced with growth in           services to deliver significant financial             Government
sales or other revenue sources.                             savings.                                          •   There will be no ‘plan b’ to seek support
*environmental waste management costs
                                                                                                                  from our parent company

•   The main political parties agree that public        Proposed Action
    spending will contract at least until 2019/20;
•   Imposed, ‘whole system’ reform is likely by         We need to deliver value for money for the
    2020;                                               consumer and Council and reduce dependency
•   Further devolution of budgets (outside of           on public investment whilst at the same time
    cities) is not yet fully understood;                become the preferred partner for the Council to
•   The Local Government Association (LGA)              deliver some of its integrated services across the
    anticipates a £14.4bn shortfall in the funding      community. The four strategic pillars and specific
    required in 2019/20 and suggests that               annual milestones will set out a proactive and
    60% of Councils are no longer able to meet          detailed framework of how we plan to achieve this.
    the budget challenge through efficiency

     New technology and social media sites are
     constantly changing, evolving and developing,
     which means the face of personal communication
                                                          Proposed Action
     is also changing. Studies show that three-quarters   Brio needs to build on existing foundations
     of customers rely on social media to influence       to engage, excite and retain consumers. The
     their purchasing decisions, with 80% admitting       ICT ‘Roadmap’ is underway in terms of roll out,
     to being influenced by their friends’ posts. Given   and this is undertaken against the capabilities
     that social media budgets are expected to double     within the budget each year. The datasets we
     over the next half-decade, Brio has already made     possess don’t always provide information in a
     significant inroads with the development of its      meaningful manner for us to capture what we
     social media and refreshed website, and is aware     want to interrogate it thoroughly, so further
     of the need to continually improve its online        work regards reconfiguration of software will be
     presence and interactivity with consumers.           undertaken to achieve this.

     All of this is happening against a background of
     rapid social and technological change.
     Communication technology has transformed             So what?                  Pros
     the way we connect with each other and our                                     •   We have made strong progress on social media
     customers over the past 5 years, and as a result
                                                                                    •   We have an IT roadmap identifying a pathway for development
     Brio has developed a ‘Roadmap’ to identify short
     term to medium term ICT developments needed
     to ensure the business remains capable of
     delivering what’s needed and identified as areas
     and products for growth.                                                       •   We are still playing catch up in technology terms for our software
                                                                                    •   Limited investment funds are available to invest in latest technology
                                                                                    •   We need to link communication to experience
                                                                                    •   We don’t fully exploit social media tools and datasets

Resources - Buildings
Drivers for Change                                 Significant capital investment in our buildings         Some of our asset portfolio remain operating as
- Internal Analysis                                is critical to ensure the long term success of          loss making sites, and wider change is required
                                                   the business and assessment of a structured             regarding the delivery model to address this.
                                                   capital investment programme to upgrade                 Complexities around several partners with long-
                                                   three buildings is underway totaling circa              standing agreements make the journey to a ‘break
                                                   £9m. Additional annual building maintenance             even’ point more complicated and time consuming.
                                                   capital investment programmes are also being            The decisions around their longer term future
                                                   formulated to take effect from 2017/18 onwards.         require resolution prior to the determination
                                                   Estimated costs of condition works to the entire        of wider asset investment, and it may be more
                                                   Brio portfolio stand at circa £13m over 10 years,       appropriate to focus investment into alternative
                                                   with investment into the poorest assets critical to     strategic locations, and which may not be within
                                                   retain their functionality during the contract term.    the Brio portfolio. In the intervening timeline, the
                                                                                                           condition of those assets remains a challenge
                                                                                                           regarding maintaining the status quo and the
                                                                                                           value of this versus its longer term purpose.

                                                   So what?                    Pros
                                                                               •   We maintain a diverse Asset Portfolio
 Proposed Action                                                               •   We have new facilities
 We need to continually invest in our assets                                   •   We have large buildings
 and a structured programme of investment will                                 •   A structured investment programme is planned
 commence in the autumn of 2016 at Winsford
 Lifestyle Centre followed into future budgetary
 years with Neston Recreation Centre and
                                                                               •   We have some ‘problem’ assets that need managing out/new
 Northgate Arena.
                                                                                   partnership arrangements put into place
                                                                               •   We have some significant issues surrounding the maintenance
                                                                                   conditions survey
                                                                               •   Asset condition may continue to remain a problem in some buildings
                                                                               •   Significant capital investment will be required in order to maintain
                                                                                   our income and growth targets

                                                   What will ‘good’            •   Consistent quality of assets across the portfolio, ensuring equity of
                                                        look like?             •   Comprehensive forward planning and budget allocation to address
                                                                                   condition survey works over contract term
                                                                               •   Delivering financially viable assets which no longer rely on subsidy
                                                                                   due to their condition
                                                                               •   Co-located services in partner buildings, enabling best use of assets
                                                                                   and ensuring viability of them for the future in locations to meet
                                                                                   demographic need
Resources - People
     Our people are our most important asset, and
     more than half our budgetary expenditure is
     used in primarily front line service delivery in a
     range of customer focused and supporting roles
     such as Holistic Needs Assessors, Exercise on          Proposed Action
     Referral Instructors, Receptionists, Teachers and
     Coaches to name but a few. Training, supporting        We will need to communicate and reiterate the
     and developing our people is critically important      vision, mission and values to all staff and also
     to ensuring our customers and those we are             train specific staff on how to deal with a wider

                                                                                                                So what?
     aiming to reach recognise and talk about us for        range of customer needs. Specific organisational
     how we make them feel and how they are valued          restructures are also likely as the organisation
     more than about how they use our buildings or          transforms. A robust training plan has been
     services.                                              developed and is being rolled out, focusing

     Brio is diversifying into new health markets
                                                            initially on leadership training and mentoring by
                                                            our middle management team to the frontline          Pros
     and a peripatetic offer, and our staff will be         workforce, and through our customer service          •   We have strong leadership
     instrumental in ensuring the transformation            training ‘+VIBES’. Through this we will develop      •   Council has demonstrated confidence in
     of our services. We do not currently possess           the skills and expertise of our teams enabling           our ability to deliver
     the full skillset required to engage some of our       opportunities for career progression and             •   Our position has strengthened as a health
     hardest to reach audiences and need to forge           supporting succession planning.                          provider
     delivery partnerships in parallel with improving                                                            •   Our workforce has undergone alignment
     the skillsets and the understanding of all staff to    We will continue to provide wider training in
                                                                                                                     to the right roles to develop the business
     embrace this journey will be paramount. Aligning       the health field as our services extend and the
                                                            support needs for customers broadens. Our                and support the customer journey
     our organisational capabilities to ensure the
     successful delivery of our strategies through a        partnerships with health colleagues, such as
     structured communication and training plan will        Macmillan mean that access to wider training
     be a significant undertaking. Where appropriate,       opportunities can be undertaken with skills and
                                                                                                                 •   Significant cultural change needed to
     it will continue to be necessary to replace existing   experience developed in-house, and via partner
                                                                                                                     embed a consistent offer across the
     systems and processes with newly improved              training programmes. Our internal appraisal
                                                            process will be developed to ensure we provide           portfolio and in outreach provision
     processes which in turn should demonstrate
                                                            opportunities for people to move between                 requires establishment
     improved efficiency and effectiveness.
                                                            and across service provision areas, giving us a      •   No clear succession policy in place
                                                            flexible, dynamic and responsive team to react       •   We don’t have experience of dealing with
                                                            and respond to market changes.                           complex social/health needs
                                                                                                                 •   Some staff may not have a full understanding
                                                                                                                     of our complete range of services

What will ‘good’
                                                      look like?

                                                        •   High satisfaction levels from customers in all areas relating to human
Also, supporting our mission ‘at the heart of life’     •   Our staff feel highly valued and supported by the infrastructure,
are our brand themes which will help to shape               opportunities and leadership in place, and Brio is a preferred
what are organisation is all about. Our brand               employment provider locally
themes and values are actions and represent             •   Our culture is understood based on our actions and Brio is seen as a
feelings which we are moving towards ‘living and            ‘go to’ solution to health and wellbeing support

We are:

Friendly because we want everyone to feel             Fun because we don’t stop at fitness – we
welcome and take part. Young, old, or anywhere        also have pools, outreach programmes and
in between, we care about what our members            entertainment centres where people can be
are getting out of their membership. We want          socially active, meet up, host parties and events
people to spend their time with us.                   or enjoy comedy and theatre.

Professional because we’re up there on a              Inclusive because we’ve got something for
par with the private clubs for fitness instruction,   everyone in the community. There’s always
modern facilities and equipment, social or            something going on and plenty of support for
corporate functions and entertainment venues.         whatever people are doing to stay active.

Service-oriented because we know that if              Supportive because we want to be there
we want to attract new members and motivate           every step of the way – helping people reach their
them to stay active with us, our offer has to be      goals. Whether they want to run a marathon,
competitive and our members must always come          entertain the kids, get back into an activity, lose
first.                                                weight, stop smoking or even just be the place to
                                                      escape to with friends.
Active because everyone’s lives can be
improved by being active and our aim is to
promote healthy, active living for everyone in
our area.

Resources - Finance
     Our business financial model has been carefully
     constructed and detailed over the 15-year
     term against our projected investment plans.
     Our overarching strategy is that the hub sites
     generate enough contribution to allow us to
     operate the remaining sites that deliver little
     or negative contribution to cover fixed costs.
     We target 2% growth of our trading income
     per annum as an organisation and we counter
     inflationary pressures through maintaining our        So what?           Pros
     customer base and the price mechanism. Our                               •   We have a financial strategy in place
     immediate target is a zero operating subsidy by                          •   Capital investment proposals on our priority assets have been viably
     2020/21 and our long term strategy is that of                                costed into the operating model
     a company that is self-sufficient with the ability                       •   Our hub sites maintain core stability in company income performance,
     to fund full repairing leases. The only step after                           and have seen steady growth
     that would be to take ownership of the assets                            •   Our newest assets generate over and above projected target income
     which would then enhance borrowing power and                                 and have plateaued at this higher level
     would make the company truly stand alone.

     Our Reserve Position stands at £333k (excluding                          Cons
     pension deficit) which has been built up over                            •   Challenging budgets for forthcoming years are at risk of attainment
     recent years from a nil starting point. Our subsidy                          without capital investment
     position stands at £653k or 6.2% of income.                              •   Some sites and services remain as loss making elements of the
                                                                                  business model
     Our Hub Sites generate 68% of income, our                                •   We don’t own the assets and are not in control of landlord investment
     catering sales operate at profit, whilst our                                 into their obligated areas
     entertainment product and some smaller sites                             •   Our pension deficit and liabilities remain prohibitive going forward
     operate at a deficit at present

     Proposed Action
     Our loss making assets have been identified and       What will ‘good’   •   Our financial long term positioning places us in a position to transfer
     are under review with our shareholder for the                                assets to Brio at low risk to both shareholder and operator
     optimum way forward. Our pension liabilities               look like?
                                                                              •   All our asset based products operate at minimum break even for
     and future provision of pension schemes for                                  those in low income generational locations
     new employees are for review, as staffing on-                            •   Future pension solutions are in place which reduce current deficit
     costs remain high as a result alongside the                                  but provide our workforce with adequate retirement benefits
     pension deficit we carry. Aspects of our company
     operation, such as catering and entertainment
     have established business models in place to
     invest appropriately and within a balanced risk
     to grow these elements of our operation.
Resources - Brand
Our brand has been established since the
company inception and is well recognised by our
members and users. The brand has been regularly
used to extend the company reach to a plethora
of outreach events and is seen as independent
of the Council. Within this are several sub brands
– fitness, aquatics, entertainment and healthy
eating. The brand guidelines carry a suite of clear
protocols around its use and which encompass
                                                      So what?           Pros
its values. This is used in all of our promotions,                       •   A brand development plan and associated training is underway
and in the language we use within these, such                            •   The brand is strong and has been recognised via a national body
as signage, marketing materials, headers and                                 award
footers, and web design. We also carry a health                          •   There is consumer buy-in to the brand from the existing customer
and wellbeing brand – Cheshire Change Hub                                    base
aligned to the ‘Change for Life’ government led
brand.                                                                   Cons
                                                                         •   The brand and cultural journey is yet to be embedded within the
Proposed Action                                                          •
                                                                             workforce as a ‘living and breathing process’
                                                                             Synergy of the Brio brand and key partners for shared delivery
We are working towards wider roll out of our                                 programmes is not fully established
brand through both our staff via their training                          •   Communication of the brand to partners and key stakeholders is
and development and which is led from the                                    required
top of the organisation, and also our partners,
especially those whom we deliver high profile
services with, and which benefit both partners
and the customer bases whom are served.
                                                      What will ‘good’   •   Our brand is known across every Borough location and community
                                                           look like?    •   Our partners and stakeholders fully understand our brand and its
                                                                             ethos, and our relationships are all based on mutually beneficial
                                                                         •   Our brand means ‘premier provider’ locally for health and wellbeing
                                                                         •   All staff understand the brand and its importance and constantly
                                                                             ‘live’ its values

Resources - Customer Base
     We have a wide and diverse range of users,
     including in excess of 22k members, and 91k
     Leisure Card holders, along with pay and play,
     hirers, events promoters, totalling in excess of
     2.6m visits each year. We track as much detail
     as we can about our users, and collect data on
     postcode, gender and age for all card holders. This
     enables us to assess the reach of our services
     to our communities across the Borough, which
     currently stands at 22%. We undertake robust
     assessment of our potential customer base
                                                           So what?           Pros
     when planning asset investment and business                              •   We have robust data around our Leisure Card and Memberships
     growth, looking at latent demand and external                            •   Satisfaction rates are in excess of 80%
     influences such as housing development and                               •   Fully funded programmes are followed through with transitionary
     projected demographic extension in age groups                                offers to maintain habit changes and acquire loyalty to Brio
     profiled over our contract term.                                         •   The customer journey is a priority and our campaigns are successful
                                                                                  in generating new business and translating this into longer term
     Our integrated wellness contract transitions                                 memberships
     customers from fully supported services into
     subsidised services in order to help maintain
     their new habits, and we evaluate this carefully
     to understand the value of continued support.                            •   We need to understand our non-card holders better and their habits
                                                                                  with us to improve our offer
                                                                              •   We need to understand our current customer needs around our
                                                                                  wider offer including secondary spend
     Proposed Action                                                          •   We are under resourced in managing drop out of our products and
     A key piece of work already underway is looking                              services
     at our harder to reach markets, and those                                •   Our knowledge of why hard to reach users remain disengaged from
     customers who struggle to afford to be physically                            our offer is limited at present
     active or access cultural opportunities. We want
     to align our customers into activities, spaces and
     timeslots which optimise our assets and services.

                                                           What will ‘good’   •   A Brio membership is viewed as high value by our customers,
                                                                look like?        and they believe they are able to shape the service through their
                                                                                  feedback and comments being taken on board
                                                                              •   Loyalty levels are high, breaking all industry average member
                                                                                  retention attainment
                                                                              •   User groups who need subsidised support feel that a tailor-made
                                                                                  product is there for them

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