RNLI 2013 accounts : highlights

[Rigger Mortice]

No I don't. Again you fail to understand my point

Perhaps the failure is that you have failed to make your point?

 

[Sybarite]

Most of the flack that's been given is because of the selective way the OP presented the accounts.

I agree I presented them selectively because I wanted to highlight certain discussion points.

The section on Governance and especially the Board of Trustees is worth a read (P18):

It is their job to provide the checks and balances and anyone with real concerns should work to get on to the Board or raise them to the Board.

Do you really think they would bring onto their board a critic of their model?

Agreed but it is the same if you are in a private company, vested interests will always try to shout down criticism, which is why it has to be constructive and well made and not seen as a dig as part of a personal crusade. Any criticism should set out what should be done instead and, more importantly, why it would be better. That way the debate can be around the proposed change and not around the motive for the criticism.

I agree and repeat I have no vested interest.

 

[Sybarite]

.... is was the same for Trents Tamars and now the Shannon. All stations receiving a Tamar were invited to trial the prototype and make suggestions on a questionnaire, the result was a vastly different production boat to the trials one, the same is happening with the Shannon : For the Shannon commercial hulls were trialled, indeed the first prototype was a commercial hull but found wanting after a very intensive trials programme. The best judge of a lifeboat are the crews who man them

A technical question : into what height of waves can a Shannon be launched off a beach – with particular respect to the recent winter storms?

 

[Sybarite]

Where is there any evidence that these are "economically dangerous times" for the RNLI.

Wow: only a brave man (or...) would manage an organisation on that basis.

We ie the Brits still have a mountain of debt
House prices in London are fast heading towards the next bubble : +17% in 2013.
Many economists are predicting major crises on the dollar and the yen;
What will be the impact of yes (withdrawal) votes winning the proposed referenda ?
What will be the impact of organisations which will take damage limitation measures in anticipation of yes votes?
Cyberspace attacks causing disruption.
How will the Ukrainian crisis pan out?
Did Baring Brothers see it coming?
etc etc

http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2014.pdf

There is no sign that income is likely to fall.

But if it does? Good governance requires contingency plans. If I were at the reins I certainly wouldn’t be looking around to see if I could redeploy 150000 excess man-hours (cost : approx £3m pa) nor would there be an additional 71 persons on the payroll in the present climate. No matter how much money I had behind me.

Why do you fail to listen to the people who know about these things and continue to insist that they should not build their own boats as it is not their area of expertise. The decision to go down this route was taken because that expertise no longer exists in the commercial world in the UK and they would prefer to have that expertise under their own control as the biggest users. This blind belief that "buying in" is the best way is just ludicrous - like all things to do with management, sometimes it is a good idea, sometimes it is not. Indeed there is a well established trend now in some industries to reduce dependence on contracting out and bring essential work back in house.

I do listen but I also am capable of reasoning too. Experience tells me that trying to do everything yourself is often not the right answer. In difficult times it's surprising how many corporations come to the same conclusion. When you have replaced your fleet : 50 Shannons - what then? As you risk having redundant workers, somebody will decide that the boats should be replaced more quickly?

You rely too much on prescriptive, simplistic remedies that may or may not work elsewhere rather than understanding the specific organisation and the environment that it operates in. Management thought has moved on from the "recipe" school that you seem to inhabit.

This risks becoming a mantra...

 

[Rigger Mortice]

A technical question : into what height of waves can a Shannon be launched off a beach – with particular respect to the recent winter storms?

Dunno, but my bet is that we'll be told that the French can do it better/faster/more efficiently........and all whilst the crew are waving their willies about with one hand and chewing on a croissant in their other hand.

 

[Sybarite]

Good point. "Understanding the context" is widely accepted by scientists, business investors and top managers as a good launch pad into a four step approach to solving complex questions. It might look like this for the RNLI:

1. Mind the history / Follow the flow
The RNLI like many businesses and charities started life in a different, simpler world. It took time to evolve into the complex organisation we see today. Understanding this history to provide us with perspective on how it might best prepare itself for its future life.

2. Deeply understand the essence of the organisation
Personal bias and pre-conceived notions must be ditched and one must be completely honest about what one doesn't know. Next, one would probably want to clear away the clutter of the accounts, current fixed asset programmes, pension liabilities, etc. The objective would be to extract and deeply understand the factors truly critical to the RNLI fulfilling its future goals.

3. Raise questions
Constantly clarify one’s understanding and keep asking questions: Is there more to “Reserves” than meets the eye? What are the pros and cons of outsourcing? What is the optimal level of funding from investments? How much risk should these investments take? Are legacies likely to fall? Will our new Shannon vessels really be fit for purpose in 30 years time? Last, but not least, where have mistakes been made?

4. Be prepared to change
Change is a constant in everything and the RNLI is no different. But the necessary changes may only be rationally determined by those who have MASTERED the preceding three stages. The RNLI Trustees, whilst not perfect, has made a pretty good bash at this.

Setting out the blindingly obvious again! FYI, I used to give Professional Development courses on “The Business Approach to Auditing”.

In my judgement , and I don’t wish to be mean spirited, the OP possesses neither the knowledge of trust law, modern accounting practices, lifesaving activities, nor indeed the openness of mind to successfully complete stages 1 – 3. Indeed, the signs are there that he knows this himself; those who are unsure of their position often attempt to speak from authority, the “do you know who I am thing?”

What he produces therefore is something inferior to knowledge, Plato calls it opinion. If the OP doesn't like the RNLI, fair enough, but why keep trying to dress it up as knowledge, which it just ain’t?

Please let me know your profession and experience which allow you to dismiss my contributions in such a condescending manner. After your accountancy “lesson”, I am curious.

In one of the major accounting firms, I was frequently involved in acquisition investigations. There you had to understand the business in depth within a few days. You didn’t necessarily have to have pre-knowledge but you had to know what questions to ask. These questions were normally prompted by a reading of the accounts and with experience this would lead you to pinpoint the problems. I remember once an investigation where we received the instructions with relation to a potential acquisition of a pharmaceutical group on Thursday and presented a 128 page bound report on Tuesday. Pre internet days.

Please tell what is special about modern accounting practices? Are they putting the debits on the right now?

BTW you said you had no intention of responding to my insults. I asked you for examples. I ‘m still waiting.

 

[Sybarite]

Well said. Having spent half a lifetime trying to help managers learn how to think before taking action, it hurts to see there are still people around who think the way forward is to pick a recipe out of an historic cookbook. .

I was also involved in Senior Executive coaching. I don’t think they would have paid what they did if it were just a recipe.

 

[Sybarite]

No. He just seems to think that the job can be done for 25% (or something like that) of the cost as he claims it is done in France!

Actually it’s nearer 12.5%. The service works and it’s in the same size ballpark as the RNLI. I don't claim it, it's in the audited accounts.

 

[Bru]

If I were at the reins I certainly wouldn’t be looking around to see if I could redeploy 150000 excess man-hours (cost : approx £3m pa) nor would there be an additional 71 persons on the payroll in the present climate. No matter how much money I had behind me.

No I don't suppose you would

You, of course, would make as many of the staff redundant as you possibly could, doubtless with legal minimum redundancy pay, you'd minimise the organisations pension liabilities to the maximum extent legally possible and you'd always, always, always opt for the lowest cost "it'll do I suppose" option

Ach, what's the point? Doubtless we'll be here again in 2015, 2016 and so on.

 

[Rigger Mortice]

Do you really think they would bring onto their board a critic of their model?

Have you checked out their executives and trustees? They could do a fair bit of willy waving between them. They've even got a couple of FCA's.

 

[dogleg]

A technical question : into what height of waves can a Shannon be launched off a beach – with particular respect to the recent winter storms?

don't know only 2 in service, are you talking of wave height or height of high water possibly flooding launching site or approach ramp/ road? most Shannons will launch into small tidal harbour, at some stations will launch into open beach, sea, however I am not aware of any occasion when the current beach launch Mersey class has been unable to launch in bad weather, I know of one station where the boat could not return because of a very high tide but only on one occasion

however whatever your point bear in mind that there are 30 or so stations where there is no alternative to carriage launch

 

[JumbleDuck]

Perhaps the failure is that you have failed to make your point?

He has a point?

 

[Rigger Mortice]

He has a point?

The French can do it better?

Even at Agincourt and Waterloo they proved that they were better losers than the Brits.

 

[dogleg]

The French can do it better?

Even at Agincourt and Waterloo they proved that they were better losers than the Brits.

you forgot Trafalgar

 

[Searush]

you forgot Trafalgar

But watch out for Hastings . . .

 

[Rigger Mortice]

But watch out for Hastings . . .

3:1 isn't a bad score.
Can we add WWII and make it 4:1? We did get them off the hook.

 

[Searush]

3:1 isn't a bad score.
Can we add WWII and make it 4:1? We did get them off the hook.

Nah, I seen the films, it was the Yanks that won that on their own.

 

[Rigger Mortice]

Nah, I seen the films, it was the Yanks that won that on their own.

We'll have to stick with 3:1 for the Brits, and 1:nil for the Yanks then.

They can't even win the Tour de France these days. Damned Brits.

Some of the French won their revolution though. Maybe we can let them have that as a draw. Or was it a home goal?

 

[Keen_Ed]

Dunno, but my bet is that we'll be told that the French can do it better/faster/more efficiently........and all whilst the crew are waving their willies about with one hand and chewing on a croissant in their other hand.

AFAIAA, The French can't launch any AWLBs from a beach.

 

[Rigger Mortice]

AFAIAA, The French can't launch any AWLBs from a beach.

In that case we'll probably be told that the French have better/cheaper/more efficient launch sites.