Socitm has said it is turning around its fortunes after years of losing money.
The public sector IT directors’ organisation was losing six figure sums every year between 2005 and 2008, threatening its survival. This eradicated much of its cash reserves, leading to predictions of a “badly depleted” £400,000 cash last year, according to a review conducted a year ago by accountants KPMG.
But following some dramatic changes, Socitm achieved a “small surplus” last year, avoiding a further fall in money and slightly increasing cash reserves to just over £800,000, which was left at the end of 2007.
In its annual position statement, a review of operations and finances, Socitm said the turnaround had been possible because it had frozen all non-essential expenditure “while the financial situation was stabilised and financial sustainability restored”.
Part of the problem had also been a “badly flawed” contract with Socitm Consulting, an advisory arm. The contract was revised to remove risks, and now provides a 15 percent return on revenue.
Socitm said it would focus on generating revenue, while improving management and the services it offers, and will devise a new strategy this year. It will also implement a new customer relationship management system to help improve contact with its members.
Before last year over 30 directors were in place, resulting in “packed and chaotic” meetings, Socitm said, and slowing decision making. Today, the body has 12 directors, who meet monthly.
A National Advisory Council, containing a number of members from all geographies, was formed to take charge of strategic planning. Also the body developed different membership categories for different sectors, including the charity sector, in order to better organise its meetings and improve sector representation.
Following Socitm’s announcement in September of support for the Skills Framework for the Information Age, it has relaunched 'Learning', a training arm to support accreditation.
Socitm's Local CIO Council, established last April, will continue to meet before every central CIO Council meeting to feed local needs into national-level government discussions.
“Socitm is on the way to becoming a well-managed and well-resourced organisation, run by a capable team”, the organisation said in its report.