Identificación del problema y la solución

The reorganisation stage of the lifecycle involves restructuring around visions; selecting options; developing new processes; and maintaining creativity. Suggested policy options are those that offer approaches for reorganising groups around new ideas, visions and innovations, and that ensure progression to selection of an option/s (Moore et al. 2012).

i) Retaining a valued service using a re-structured delivery model In 2011, like many Local Authorities in the UK faced with significant budgetary cuts, the Northamptonshire County Council decided it could no longer afford to keep its library services open. The Libraries Plus program was developed in response to local residents rallying to prevent the closures. This innovation led by the Local Authority has produced a completely reorganised way of keeping its library services viable by involving local residents in identifying options and in decision-making around the final model. The interviewees for this case study were Northamptonshire County Council’s Director for Libraries; the Manager of the main library in Northampton; and the President of one of the Friends’ Groups who has been instrumental in coordinating the program.43 _{All three were} interviewed together at the main Library in Northampton, UK.

In the reorganized system, the Local Authority continues to fund the service and to provide professional staff into each library, to ensure systems and standards are maintained appropriately. However, this is on a significantly reduced basis and volunteers now perform all the other functions, like customer service and daily-level operational tasks. With over 820 volunteers supporting 26 Libraries Friends groups at the time of interview, Libraries Plus has harnessed diverse forms of labour to keep the libraries running. Care has been taken to design roles that cover a wide range of motivations for volunteering; a time bank rewards residents with credits for their time; and they are also offered free adult learning opportunities.

As their involvement is central to the libraries remaining open, the volunteers now have a strong voice in library decision-making and the Local Authority has adjusted to a much lesser degree of control. By working closely with the County contact centre to implement improvements to how services are offered, stronger internal relationships have also been established. Libraries staff now participate

in aspects of decision-making they were previously not included in, and through them the volunteers’ input is also drawn on.

Working together, the Local Authority and community members have succeeded in not just retaining their libraries, but improving access to them and other services whilst at the same time reducing costs. The library sites are becoming true community hubs, and interactions between people are increasing. The model is now operating in all 36 library sites across the county. This has occurred in close consultation with local residents and Friends groups, to ensure each site reflects local interests and needs, reflecting an inclusive and context specific approach to local-level diffusion. This has been made possible through re- organising existing resources into a whole new assemblage.

ii) Fostering local socio-economic development with an innovatively

structured financial product

Small-medium Enterprises (SMEs) are not usually considered social-purpose enterprises, but they are a driving force in any economy. In the UK they employ 60 percent of the private sector workforce and generate 50 percent of the nation’s GDP (The Funding Circle interview). Consequently, destabilisation on a large scale can have major impacts on communities at the broadest level. The borrowing practices of UK’s SME sector are particularly concentrated, with 90 percent being through just five providers. This pattern of borrowing makes the sector extremely vulnerable, and therefore unsurprisingly it was heavily impacted by the global financial crisis. In this context, the Lancashire Funding Circle is bringing about incremental social change by connecting previously unconnected individuals and entities into an assemblage that is delivering substantial social value into the region. The Lancashire County Council Senior Project Officer and the Head of Communications at The Funding Circle were interviewed for this study.44 _{The interviews took place at their respective offices,} in Preston and in London in the UK.

The Lancashire Funding Circle was established in 2010. It provides an improved product that addresses an institutional void experienced in the UK lending market as a result of the economic downturn that followed the global financial crisis. Its online peer-to-peer business lending platform provides access to finance independent of the mainstream banks. Sixty percent of The Funding Circle’s borrowers have previously unsuccessfully attempted to secure a bank loan. Key issues borrowers experience with bank lending are the lengthy time frames (15-20 weeks), lack of contact with decision makers, and unwieldy application processes. The majority of The Funding Circle loans are filled within a matter of hours. Business owners can speak with the assessment team if they wish, providing improved participation in decision-making that affects them. The new loan product is backed by institutional and individual ‘angel’ investors. Lenders bid for small pieces of the overall amount sought, and indicate the interest rate they are willing to offer. The borrower’s final loan package is made up of a mixture of the offers with the lowest interest rates. The opportunity to support UK-based SMEs is a strong motivator for lenders. This innovative approach to structuring available resources has been facilitated by the design of new socio-technical processes.

Lancashire County Council, located in the north-west region of England, was the first Local Authority to engage with the product, investing an initial £100,000 in the establishment of the Lancashire Funding Circle. This provides local SMEs with improved access to loans, whilst also establishing a channel for lenders to support the development of local businesses they are interested in. The partnership with The Funding Circle also connects the Local Authority with local businesses that are interested in and have capacity for growth, and opens up opportunities to influence the trajectory of that growth to create social value outcomes for the region (including promoting their emphasis on quality jobs). In this case, the Local Authority’s role is as a financial backer and facilitator of local knowledge and connections.

The approach made by Lancashire County Council shows how The Funding Circle model is being diffused in a ‘gathering friends and allies’ style, which is based on

negotiating the adaptations to the model that are needed for it to integrate local opportunities, needs and priorities. For example, at the time of interview, The Funding Circle was going through a similar process with a university that had approached them about investing in the model and linking it to a small-business support program it offers through its community engagement activities.