LBBD Commercial Transformation

Commercial Transformation and the establishment of Commercial and Education Trading Partnerships for LBBD.

Client

London Borough of Barking and Dagenham

Owner

The Trading Partnership

Categories

Advisory Services

Date of completion

2016 – ongoing

Overview

Cornerstone has provided commercial, advisory and ‘critical friend’ support to LBBD’s commercial transformation programme, part of its transformation programme, Ambition 2020, since 2016. In particular Cornerstone have been supporting the shaping of the future role of the Council in relation to arm’s length delivery vehicles and the development of business cases for the establishment of arm’s length vehicles.

What we did

Commercial Transformation and the establishment of Commercial and Education Trading Partnerships for LBBD.

Cornerstone’s scope was to undertake a diagnostic review across three services areas (Home Services (repairs and maintenance), Traded Services, and Education Services) and support the commercial transformation proposed as a result of this review.  This work was undertaken in three phases, with Phase 1 being the Diagnostic and Discovery phase which included engagement with senior officers and members, and designing and delivering a commercial options analysis.  Phase 2 was Development and Commercial Transformation, which included developing Final Business Cases for each of the  areas in scope and Phase 3 was   Implementation Support including shadow arrangement for alternative delivery vehicles, and Design governance and client side arrangements which also included Top Team development.

Barking and Dagenham School Improvement Partnership (BDSIP), which is a jointly owned not for profit vehicle between LBBD schools and the Council launched in April 2018. The Barking and Dagenham Trading Partnership is established and has been trading successfully for the past 2 years.

Our impact

The Barking and Dagenham Trading Partnership has been trading successfully for the past 2 years. 1000 members of staff have transferred from the Council to the new body, which has also purchase an 18 acre pharmaceutical site on behalf of the council which is being successfully developed as a Higher Education centre for 2 universities,  and a high technology business centre.

Our Chairman Tim Byles has been Chairing the venture on behalf of the Council as shareholder for the past 3 years in shadow and now trading forms. This has involved recruiting the board and executive teams.

We also managed the acquisition of London East UK (LEUK) by the London Borough of Barking and Dagenham, by negotiating the purchase, borrowing £20m from LBBD to fund this through its subsidiary company, the Barking and Dagenham Trading Partnership. LEUK owns a 20 acre site in Dagenham which was formally occupied by the international Pharmaceutical company Sanofi. As well as having 30 business tenants on site, it is proving popular with media companies for both TV and movies, and has attracted new occupiers such as UCL for a new transport research facility and South Bank university for a school of midwifery and associated uses.

The BDSIP is also continuing successfully with ongoing support from Cornerstone.

Primary contact

Gillian Cawley
T. 0207 871 5312

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