mike bareham - session 1 - apse bareham - session 1.pdf · use the standard techniques (swot,...
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Mike BarehamManaging DirectorCumbria Waste Management Limited
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• Why take a company approach?• What has two decades of trading taught us?• Developing a commercial strategy• Developing a new MRF facility
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Cumbria County Council
100%
Cumbria County Holdings Ltd100% 100%
Orian Solutions LtdFood service & cleaning business140 schools + 160 offices800 people
Cumbria Waste Management Ltd
Cumbria Waste Recycling LtdLakeland Waste Management LtdTrotters Dry Waste Ltd
1993 2013
1993
2011
1997
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About the Cumbria Waste Group2 active landfill sites2 closed landfill sites4 MRF/transfer stations1 composting/wood recycling facility 14 HWRCs (sub-contract with Shanks)50 vehicles250 people
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1. Why take a company approach?
Bring in ‘business people’ Achieve greater clarity of financial performance Free the organisation from local government trading restrictions Enable innovation to take place Make a financial return Create an asset that you can sell Get legacy issues managed and off your books Get staff off your books (if that’s what you want)
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2. What has two decades of trading taught us?
• The best laid plans .......• Know your market• There is under and over regulation out there• You need the right facilities• You’re only as good as the people you employ• When an opportunity presents itself, seize it quickly
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Group Turnover History (Excluding Foot & Mouth)
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Group Profit History before tax, excluding foot and mouth (£m)
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3. Developing a commercial strategy
Know your market! Use the standard techniques (SWOT, PESTE, Porters 5 forces) Break your strategy into separate activities Watch out for ‘optimism bias’ Cash is King Identify ‘doable’ actions Fate often rewrites your strategy for you
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4. Developing a new MRF facility
Know your market! It’s low margin work Find out the processing practicalities Rubbish in, rubbish out (or very expensive) Waste takes up lots of space MRFs keep burning down
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CUMBRIAWASTE GROUP