EGYM | Fit Tech promotion
EGYM | Fit Tech promotion
EGYM | Fit Tech promotion
features

Industry insights: Waves of change

The next few years will be tough, but we could use this as the opportunity for a reset. Martyn Allison asks, do we want to?

Published in HCM Handbook 2023 issue 1

During the worst of the pandemic there was a real desire to ‘build back better’, but somehow that energy drained away. Now we’re vulnerable to having change forced on us, in the same way as happened following the economic and social turbulence of the 70s and 80s.

Two things emerged during that time: the birth of sports development and the arrival of Compulsory Competitive Tendering (CCT) for public services. These have shaped the sector and underpin its current challenges and opportunities. How we now re-engineer them will shape our future.

Sports development emerged when the social benefits of sport and recreation were recognised and the realisation that those who could benefit the most were missing out. Instead of just investing in facilities, councils and national sport bodies invested in people to reach out to marginalised communities and help them participate in sport.

Despite huge investment the changes didn’t happen at the desired scale, however. Traditional sport providers found it hard to relate to these communities and were often unwilling to adapt the product enough to make it attractive and accessible.

Only after the 2012 Olympics failed to drive up participation was the focus switched from sport to sport and physical activity, creating a closer alignment with health policy and a focus on inactivity.

Campaigns such as Sport England’s This Girl Can and the piloting of place-based working in the Local Delivery Pilots suggested change was happening, but getting the sport and leisure system to behave differently remained an aspiration. It was the pandemic and the after-shocks of the energy and cost of living crisis that finally made us realise we have to fundamentally change the way we work if we are to contribute to reducing the gap in health inequalities by reducing inactivity.

Funding changes
Traditional approaches to sports development are now having to change. With declining resources funders are switching from the traditional sports providers to more diverse organisation- and community-based organisations (called Locally Trusted Organisations) that can reach those with the greatest health needs.

Thinking back to CCT
CCT was brought in by a Conservative government convinced public services could be delivered more efficiently by the private sector when driven by greater commercialism. While it led to huge improvement in management competency and service performance, it also started a trend which made it harder to deliver social objectives, despite councils continuing to subsidise prices to protect access.

The Best Value scheme replaced CCT in the Blair years, refocusing on value, not just cost. Councils were struggling to maintain the subsidies and some were signing up for longer contracts to trigger capital investment from contract operators.

Then austerity struck and massive cuts to council budgets opened up the race to reduce costs and avoid having to pay subsidies altogether, with some contracts even becoming a source of income, enabling councils to use the funds from leisure to pay for other services.

While efficiency improved rapidly, effectiveness in terms of equality and social value declined again. Our ambition and enthusiasm for greater commercialisation inadvertently created a business model which made it harder to deliver on council social priorities. Many facilities were creating usage patterns which were making health inequalities worse rather than better.

Restructuring provision
As councils rethink their priorities over the next few years, we’ll face a restructuring in the provision of public sport and leisure. Many worn-out facilities will not be replaced and contracts will be put aside as councils and operators redefine their relationships. Some councils will take back direct control of their facilities, especially since they became VAT-free when managed in-house (www.hcmmag.com/NBVAT), while others will be handed to different parties to run themselves.

As we seek to pivot from sport and leisure towards wellbeing, facilities will change. The standard leisure centre, based on a pool and gym, may be superceded as we see more multi-service hubs linked closely to health improvement and prevention. Finding the right business model will not be easy. Commercial models which limit access for those who most need it will no longer be as acceptable to many councils.

These ideas are being discussed across the sector and are presented in the recent publication from Sport England, Future of Public Sector Leisure (www.hcmmag.com/FOPL).

The report sets out parameters for changing what we do and how we work. The foundations are correctly defined as aligning better with local health policy and priorities; locally designing services based on places and communities; developing collaborative leadership and engaging with the challenges of climate change and low carbon emissions. By adopting these four foundations we will find ourselves on common ground with councils.

The report defines seven themes to drive change: improving the quality of our data and insight; digital transformation; better coordination and partnership working; improving the leadership skills of the workforce and creating a more diverse workforce; build local trusting relationships with health and other partners and delivering environmental sustainability.

These are immense challenges, yet there are already many great examples of good practice in the sector. It’s not about starting afresh it’s about how we transfer existing learning and best practice at scale.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
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features

Industry insights: Waves of change

The next few years will be tough, but we could use this as the opportunity for a reset. Martyn Allison asks, do we want to?

Published in HCM Handbook 2023 issue 1

During the worst of the pandemic there was a real desire to ‘build back better’, but somehow that energy drained away. Now we’re vulnerable to having change forced on us, in the same way as happened following the economic and social turbulence of the 70s and 80s.

Two things emerged during that time: the birth of sports development and the arrival of Compulsory Competitive Tendering (CCT) for public services. These have shaped the sector and underpin its current challenges and opportunities. How we now re-engineer them will shape our future.

Sports development emerged when the social benefits of sport and recreation were recognised and the realisation that those who could benefit the most were missing out. Instead of just investing in facilities, councils and national sport bodies invested in people to reach out to marginalised communities and help them participate in sport.

Despite huge investment the changes didn’t happen at the desired scale, however. Traditional sport providers found it hard to relate to these communities and were often unwilling to adapt the product enough to make it attractive and accessible.

Only after the 2012 Olympics failed to drive up participation was the focus switched from sport to sport and physical activity, creating a closer alignment with health policy and a focus on inactivity.

Campaigns such as Sport England’s This Girl Can and the piloting of place-based working in the Local Delivery Pilots suggested change was happening, but getting the sport and leisure system to behave differently remained an aspiration. It was the pandemic and the after-shocks of the energy and cost of living crisis that finally made us realise we have to fundamentally change the way we work if we are to contribute to reducing the gap in health inequalities by reducing inactivity.

Funding changes
Traditional approaches to sports development are now having to change. With declining resources funders are switching from the traditional sports providers to more diverse organisation- and community-based organisations (called Locally Trusted Organisations) that can reach those with the greatest health needs.

Thinking back to CCT
CCT was brought in by a Conservative government convinced public services could be delivered more efficiently by the private sector when driven by greater commercialism. While it led to huge improvement in management competency and service performance, it also started a trend which made it harder to deliver social objectives, despite councils continuing to subsidise prices to protect access.

The Best Value scheme replaced CCT in the Blair years, refocusing on value, not just cost. Councils were struggling to maintain the subsidies and some were signing up for longer contracts to trigger capital investment from contract operators.

Then austerity struck and massive cuts to council budgets opened up the race to reduce costs and avoid having to pay subsidies altogether, with some contracts even becoming a source of income, enabling councils to use the funds from leisure to pay for other services.

While efficiency improved rapidly, effectiveness in terms of equality and social value declined again. Our ambition and enthusiasm for greater commercialisation inadvertently created a business model which made it harder to deliver on council social priorities. Many facilities were creating usage patterns which were making health inequalities worse rather than better.

Restructuring provision
As councils rethink their priorities over the next few years, we’ll face a restructuring in the provision of public sport and leisure. Many worn-out facilities will not be replaced and contracts will be put aside as councils and operators redefine their relationships. Some councils will take back direct control of their facilities, especially since they became VAT-free when managed in-house (www.hcmmag.com/NBVAT), while others will be handed to different parties to run themselves.

As we seek to pivot from sport and leisure towards wellbeing, facilities will change. The standard leisure centre, based on a pool and gym, may be superceded as we see more multi-service hubs linked closely to health improvement and prevention. Finding the right business model will not be easy. Commercial models which limit access for those who most need it will no longer be as acceptable to many councils.

These ideas are being discussed across the sector and are presented in the recent publication from Sport England, Future of Public Sector Leisure (www.hcmmag.com/FOPL).

The report sets out parameters for changing what we do and how we work. The foundations are correctly defined as aligning better with local health policy and priorities; locally designing services based on places and communities; developing collaborative leadership and engaging with the challenges of climate change and low carbon emissions. By adopting these four foundations we will find ourselves on common ground with councils.

The report defines seven themes to drive change: improving the quality of our data and insight; digital transformation; better coordination and partnership working; improving the leadership skills of the workforce and creating a more diverse workforce; build local trusting relationships with health and other partners and delivering environmental sustainability.

These are immense challenges, yet there are already many great examples of good practice in the sector. It’s not about starting afresh it’s about how we transfer existing learning and best practice at scale.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
Gallery
More features
Editor's letter

Into the fitaverse

Fitness is already among the top three markets in the metaverse, with new technology and partnerships driving real growth and consumer engagement that looks likely to spill over into health clubs, gyms and studios
Fit Tech people

Ali Jawad

Paralympic powerlifter and founder, Accessercise
Users can easily identify which facilities in the UK are accessible to the disabled community
Fit Tech people

Hannes Sjöblad

MD, DSruptive
We want to give our users an implantable tool that allows them to collect their health data at any time and in any setting
Fit Tech people

Jamie Buck

Co-founder, Active in Time
We created a solution called AiT Voice, which turns digital data into a spoken audio timetable that connects to phone systems
Profile

Fahad Alhagbani: reinventing fitness

The team is young and ambitious, and the awareness of technology is very high. We share trends and out-of-the-box ideas almost every day
Opinion

Building on the blockchain

For small sports teams looking to compete with giants, blockchain can be a secret weapon explains Lars Rensing, CEO of Protokol
Innovation

Bold move

Our results showed a greater than 60 per cent reduction in falls for individuals who actively participated in Bold’s programme
App analysis

Check your form

Sency’s motion analysis technology is allowing users to check their technique as they exercise. Co-founder and CEO Gal Rotman explains how
Profile

New reality

Sam Cole, CEO of FitXR, talks to Fit Tech about taking digital workouts to the next level, with an immersive, virtual reality fitness club
Profile

Sohail Rashid

The app is free and it’s $40 to participate in one of our virtual events
Ageing

Reverse Ageing

Many apps help people track their health, but Humanity founders Peter Ward and Michael Geer have put the focus on ageing, to help users to see the direct repercussions of their habits. They talk to Steph Eaves
App analysis

Going hybrid

Workout Anytime created its app in partnership with Virtuagym. Workout Anytime’s Greg Maurer and Virtuagym’s Hugo Braam explain the process behind its creation
Research

Physical activity monitors boost activity levels

Researchers at the University of Copenhagen have conducted a meta analysis of all relevant research and found that the body of evidence shows an impact
Editor's letter

Two-way coaching

Content providers have been hugely active in the fit tech market since the start of the pandemic. We expect the industry to move on from delivering these services on a ‘broadcast-only’ basis as two-way coaching becomes the new USP
Fit Tech People

Laurent Petit

Co-founder, Active Giving
The future of sports and fitness are dependent on the climate. Our goal is to positively influence the future of our planet by instilling a global vision of wellbeing and a sense of collective action
Fit Tech People

Adam Zeitsiff

CEO, Intelivideo
We don’t just create the technology and bail – we support our clients’ ongoing hybridisation efforts
Fit Tech People

Anantharaman Pattabiraman

CEO and co-founder, Auro
When you’re undertaking fitness activities, unless you’re on a stationary bike, in most cases it’s not safe or necessary to be tied to a screen, especially a small screen
Fit Tech People

Mike Hansen

Managing partner, Endorphinz
We noticed a big gap in the market – customers needed better insights but also recommendations on what to do, whether that be customer acquisition, content creation, marketing and more
More features