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Best practice - Financial planning Groupe SOS
GROUPE SOS is very good example of a successful social business. Over time, it has developed innovative and effective working methods which have enabled it to gradually widen its scope of action in the fight against social exclusion. Today’s challenge is to demonstrate that it is possible to build a solid organization by combining a profitable business model with a strong social impact.
GROUPE SOS has been putting economic efficiency at the service of the interests of the general public. In so doing, it provides responses to the issues of today’s society by developing innovative solutions in its five main fields of activity. With its 14,000 employees and 350 structures, GROUPE SOS is one of Europe’s foremost social and societal undertakings. The actions undertaken by GROUPE SOS influence the lives of over a million people every year.
Basing its actions on the fight against different forms of social exclusion, GROUPE SOS has diversified its activities over the years, and it is able to provide solutions for people at all levels in society, and especially those with few or no resources. GROUPE SOS has aimed since its origins at using social innovation for providing solutions to the social issues of our times. By highlighting unnecessary costs and the ensuing wealth created, GROUPE SOS is able to show how certain expenses can allow significant savings to be made and in turn transformed into societal investments. Thus, financial planning and management use to have crucial importance in the GROUPE SOS development and success.
GROUPE SOS has developed a new way of conceiving an enterprise: regulated salary scales, absence of share-holders, profits reinvested in development. In today’s world it is possible to build a solid organization capable of creating long-term economic activities whilst at the same time having a strong social impact.
Strengthened by its know-how and the management tools that it has developed, GROUPE SOS has supported in incorporation numerous organizations over the years. They have all developed synergies, professionalized their activities and pooled their expenses. The challenges of tomorrow’s economic, social and environmental issues can only be met through the joint efforts of public sector actors and the lucrative and non-lucrative private sector.
• 1984, year of creation
• 14,000 employees
• 350 structures in 12 regions in France and 4 French overseas territories
• 1 million direct beneficiaries every year
• A turnover of $900 million
• Present in France and in 35 other countries
FINANCIAL PLANNING AND MANAGEMENT
Financial planning can help organisations to manage resources effectively, monitor performance, improve decision-making, plan for the future and identify problems before they occur – such as the need to raise finance or cash flow difficulties.
GROUPE SOS is planning the financial sustainability of the organization by allocation of the funds and the financial resources. The profit generated through their activities and projects, GROUPE SOS systematically is placing in reserve in order to secure future activities. This may be accomplished by reinvesting the reserve fund in to different kind of activities or reinvested into the activity in order to invest/encourage the development of new projects.
The financial planning of GROUPE SOS is based on specific activities that are constantly pursuing on the projects, such as:
• Undertake financial health checks
• Prepare financial forecasts as part of the business planning process – budgets, cash flow, income and expenditure
• Advise on systems and processes to manage and monitor financial performance
• Identify ways to minimize risk and maximize returns
• Contingency planning
As we said, Groupe SOS is organization, consisted by 350 structures in 12 regions in France and 4 French overseas territories. The organizations that form GROUPE SOS have created Alliance Gestion (meaning Management Alliance), an Economic Interest Grouping (EIG).
This EIG helps in optimizing the Group’s management methods and means of action through the pursuit of its advisory and monitoring missions in its various areas of expertise: finance, accounting, human resources, communication, etc.
Also, GRUOPE SOS has policy of supportive approach for the member organizations. Namely, GROUPE SOS enables to the member organizations to use mechanisms of financial solidarity between the various member entities of the group in order to overcome the financial issues that some of them may momentarily experience. This is always done in a totally transparent manner. Conclusion is that GROUPE SOS is very good example of a successful social business because of their efficient financial planning and systematically managing of the funds.
FM_BP - English
Financial planning; social enterprise; funding; financial planning