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Strategic review for CAF

Finance | Gareth Jones | 1 Nov 2006

The Strategic Review under way at Charities Aid Foundation (CAF) may see it selling or dropping some of the services it provides. The organisation has had a torrid time recently, culminating in the shock resignation of its chief executive, Stephen Ainger, last month. To add to the confusion, Tracey Reddings has backtracked on her acceptance of a director post at Baring Asset Management and will stay on in her incumbent role as executive director of Charity Financial Services.

In a statement Reddings said: 'In the light of the decision of Stephen Ainger to step down as chief executive of CAF, and after a good deal of thought and discussion with senior colleagues, I have decided to carry on as a member of the top team at CAF.' She added that she felt CAF was facing a considerable challenge after the departure of five other directors in just one year.

Andrew Jones, director of policy and external affairs, confirmed that management consultancy McKinsey had already completed the first stage of a review, which was about 'what CAF does well and what it does less well, and also at what the sector wants now and what it will want in five years time. CAF cannot do everything and part of the process will be attempting to prioritise the opportunities available. We have not yet reached a decision as to whether this means dropping or selling any of our services but in an open and strategic review all options need to be on the table.'

There have been persistent rumours in the sector that the recent staff exodus, and low morale among remaining staff, as evidenced by a recent staff survey, was a result of CAF's evolution from a mission-driven to a target-driven culture. One source has said that CAF had become a 'culture where targets are valued more highly than people and mission', and that many people had 'lost sense of whether CAF was a charity or a business'.

Jones responded: 'If you're referring to Stephen's desire to introduce a more focused culture, that objective was supported by the management team. CAF is a charity and exists to serve the sector but it must do so on a self-sustaining basis.'

November 2006

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