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performance hub magazine

issue #9 spring 08

Managing change
How support can help you transform p.8
Shock? Denial? Anger? How people react to change p.5


The Performance Hub works to help third


HUBS
sector organisations* (TSOs) achieve more. 

Performance Hub
(*charities, voluntary organisations,
|020 7520 2540
community groups and social enterprises)
helpline: 0800 652 5787
info@performancehub.org.uk
Our vision is of high performing TSOs
www.performancehub.org.uk
having a positive impact upon the lives
of millions.
Finance Hub
|020 7832 3016
Our overall aim is for improved third
financehub@cafonline.org
sector performance, and performance to be
www.financehub.org.uk
an integral part of the third sector’s agenda.

Governance Hub
Four specific aims contribute to this
|020 7520 2514
overall aim:
helpdesk: 0800 652 4886
• To increase TSOs’ awareness of the
governance.hub@ncvo-vol.org.uk
benefits of focusing on performance and
www.governancehub.org.uk
improve their ability to use performance
tools and approaches.
ICT Hub
• To increase and improve the performance
|020 7520 2509
support offered to frontline organisations
helpdesk: 0800 652 4737
by local, sub-regional, regional and national
ictresources@icthub.org.uk
infrastructure of all types.
www.icthub.org.uk
• To develop a more relevant, more effective
and more accessible knowledge base
Volunteering Hub
about third sector performance.
|0845 305 6979
• To strengthen the two way relationship
helpline: 0800 028 3304
between funders and TSOs on
volunteeringhub@volunteeringengland.org
performance issues.
www.volunteeringengland.org.uk/aboutus/volunteeringhub

For more information see our website at


Workforce Hub
www.performancehub.org.uk
|020 7520 2490
helpdesk: 0800 652 5737
The Performance Hub is a partnership. Charities
workforce@ukworkforcehub.org.uk
Evaluation Services (CES) is the accountable
body. CES and the National Council for www.ukworkforcehub.org.uk
Voluntary Organisations (NCVO) are joint lead
partners. CES is a company limited by guarantee. Achieve More
Registered in England and Wales no. 2510318. Editor: Julie Pottinger |020 7520 2587 editor@performancehub.org.uk
Registered office: 4 Coldbath Square, London, Distribution: Kate Damiral |020 7520 2540 subscribe@performancehub.org.uk
EC1R 5HL. Registered charity no. 803602. Design and production: Public Life |07843 058485 mike@publiclife.co.uk
Contributors: Tracy Beasley, Richard Piper, Julie Pottinger, Diana Quay
The Performance Hub is funded by Editorial board: Richard Piper, Tim Wilson
Capacitybuilders through the ChangeUp Copyright: © NCVO 2008 . While NCVO makes every effort to ensure the information in this
magazine is accurate, we accept no responsibility for any errors or issues that may arise from its use.
programme.


performance hub magazine

WELCOME IN THIS ISSUE


This final edition of Achieve More magazine looks at managing change, an issue
which will affect all organisations at one time or another. We present some key
News in brief 4
principles to help you navigate the process and take a closer look at particular types
of change: a change in leader and rapid expansion. Managing change in third sector
It’s a time of change for us too, with the Performance Hub coming to an end. Over organisations 5
the past two-and-a-half years the Hub has worked to help third sector organisations
How to... make the most of
achieve more through providing information, advice and training on performance
external support 8
improvement.

Through nine issues of Achieve More we’ve introduced you to some of the main Coping with a change
ways to improve your organisation. We hope you’ve been inspired to find out more in leader 10
and try out some of the ideas put forward. If you missed any issues, you can order
Case study: Small charity –
or download them from our website at www.performancehub.org.uk/achievemore
big changes 12
Good luck!
Does enjoyment matter? 15
Julie Pottinger, Communications Officer
March 2008

NEWS IN BRIEF

LOGO SERVICES
Social enterprise National Support Services
mark launched begin as Hubs end
A new ‘trading for people and planet’ logo is being piloted Nine new services to help infrastructure agencies better
to help social enterprises in south west England indicate to support frontline organisations will begin in April 2008 when
customers that buying from them will help achieve social the National Hubs close. Four of the workstreams will cover
outcomes. Applicants must provide externally verified performance topics:
evidence that they are delivering social impacts, through
approaches or tools such as social accounting, quality • Performance Management (led by Charities
standards or sector specific regulatory requirements. Evaluation Services)
• Marketing and Communications (led by the Media Trust)
www.rise-sw.co.uk/socialenterprise • Collaboration (led by bassac)
• Responding to Social Change (led by NCVO).

The other services cover campaigning and advocacy,


EXCELLENCE equalities and diversity, income generation, leadership and
“From measurement governance and modernising volunteering. There will also
be national capacitybuilding support on workforce and ICT.
to judgement” of
publicly-funded arts www.capacitybuilders.org.uk

A new Department for Culture, Media and Sport report


recommends that ‘excellence’ becomes the key goal for
cultural institutions. The McMaster Review explores how
public sector support for the arts can best encourage
excellence, risk-taking and innovation, while also adopting
light-touch and non-bureaucratic methods to judge the
quality of work. It also considers how a focus on excellence
can encourage wider and deeper audience engagement.

Commenting on the report, then Culture Secretary James


Purnell said, “If any part of our cultural sector is substandard,
doesn’t take risks, doesn’t push barriers, ducks difficult
questions, it’s not worth subsidising. Garbage in, garbage out.”

www.culture.gov.uk/Reference_library/Publications/
archive_2008/mcmaster_supporting_excellence_arts.htm

CHANGE

Managing change in
third sector organisations
Every organisation will
need to deal with change
at one time or another. Julie
Pottinger explores some
“Every organisation
key principles to help you
steer your organisation
will need to deal
to a desired future.
with change at one
Reasons for change
time or another.”
The causes of change can come
from within or outside your
organisation. External causes of
change might include changes to
the law, new funding opportunities
or increased competition from
other organisations. To help you
identify potential causes before
they happen, you could use a tool
such as a PEST (Political, Economic,
Social, Technological) analysis. 

An awareness of the need for


change can also come from a
review of your performance, such
as assessing your progress against
plans and targets, comparing
performance and practice with
other organisations or against
established quality standards or
reviewing your strategy. Changes
in key personnel, such as a chief
executive or senior manager, can
also create fundamental change.
(See ‘Coping with a change in
leader’, page 10.)

Julie Pottinger is Communications Officer for the Performance Hub



CHANGE

What types of change could include staff at different levels of the organisation, as
can we manage? well as external stakeholders.

Changes may be planned or unplanned. Obviously, the Choose the right approach
sooner we recognise that they are happening or will need Culture is ‘the way things usually happen’ in an organisation
to happen, the earlier we can start managing the process. – the way people behave and interact with each other.
Managing change will be more successful if you choose
Changes can also be of very different scales, from tiny to an approach that fits with your culture. For example, an
massive, and happen at different speeds. This affects the approach in which senior managers make decisions without
timescales and resources you will need, and your decision much consultation may fit well if that’s how things usually
about who to involve and to what extent. happen, but is less likely to work if your organisational
culture is usually more democratic, involving staff at all levels
Change can affect different elements of your organisation in decision-making.
such as its purpose, its relationship with key stakeholders, its
ways of working or culture. Remember that changes in one Also, different approaches might be appropriate to different
area will usually mean changes in another. situations. For example, it may be difficult to involve a range
of stakeholders if change needs to happen rapidly.

Key principles for Anticipate how people might respond


Understanding and anticipating people’s reactions to change
managing change can help you support them to accept it and adapt to new
Lead, but don’t go it alone circumstances.
Above all, managing change requires clear leadership. This
includes creating and communicating a clear vision for the Organisational change can be very stressful for people for
transition by answering some key questions: Why does this a number of reasons. Some may fear that their job is at risk,
change need to happen now? What will the organisation or that their role or working environment will become
look like afterwards? And who will it affect and how? unfamiliar. Others may worry that they lack the skills or
expertise needed for new systems or ways of working.
But this doesn’t mean you should try to manage change on
your own. It’s a good idea to build a core team of people You might find it helpful to think about the stages people go
to help you drive change throughout the organisation. This through when experiencing change (see below).

The Kubler-Ross Coping Cycle The Kubler-Ross Coping Cycle


says that people go through the
Active following transitional stages:
Anger • Stability
• Shock: initial paralysis on
hearing the news
Acceptance • Denial: trying to avoid
Stability the inevitable
Emotional Response

• Anger: venting frustration


Denial Testing • Bargaining: seeking to
negotiate an alternative outcome
Time
• Depression: realisation of
the inevitable
• Testing: seeking realistic
solutions
Depression • Acceptance: finding the
Shock
way forward
Passive


“Ensure that changes are


sustained and become part of the
lifeblood of the organisation.”

To overcome resistance, you can use allies in different parts


of the organisation, engage with people to address their
objections, and provide third party support. This support
could include training to help people learn new skills or ways
of working, or opportunities to talk about their feelings and
experiences.

Communicate consistently and honestly


It is vital to communicate clearly and honestly during a
period of change. This does not mean telling everyone
everything all of the time, however. Use your judgement
to decide what’s useful to say to who and when.

Planning your communications can ensure you communicate


the right messages to the right people, in the right format, at
the right time. First identify your stakeholders, then think about
what they need to know or understand and when. For each Learn more
group, think about specific messages and which communication
channel will best meet their needs. For staff and volunteers Performance Hub From Here to There –
options include face-to-face meetings or briefings, emails, Managing change in third sector organisations
staff newsletters or extranets. For external communication, (Performance Hub, 2008)
you could use newsletters, events, emails, websites and press
releases. Make sure your communications are two-way, giving Barbara Senior Organisational Change
people an opportunity to speak to you and ask questions. (Financial Times Prentice Hall, 2002)
An easy-to-read guide on the main approaches
Embedding the change to change management.
It’s important to ensure that changes are sustained and
become part of the lifeblood of the organisation. An idea that Roger Plant Managing Change and Making
can help with this uses the words un-freezing, moving and it Stick (Fontana, 1987)
re-freezing (Kurt Lewin). This idea says that in order to adapt, With a focus on practicality, this short book
people need to: guides the reader through the difficulties of
making change happen.
1 Unfreeze – give up old ways of doing things

2 Move – accept the need for change and use the support Charles Handy Understanding Voluntary
offered to them to learn new ways of doing things Organisations (Penguin, 1988)
3 Re-freeze – adopt and become comfortable with new This book looks at how voluntary organisations
ways of working. operate, the challenges they face and how
managers can overcome them.
Tactics to help with re-freezing could include removing
old ways of working, rewarding people for embracing new For further details of these publications, visit
working practices and building the changes into existing www.performancehub.org.uk/publications
management systems and structures.

HOW TO...

How to... make the most of


Calling on outside help is a useful and often
vital step for organisations facing major change
or looking to improve their performance. Diana
Quay looks at the options available and how to
get the best results.

Why and when?


Developing and improving your organisation can be a
complex process. Few organisations can find all the expertise
they need in-house. External help can provide specialist
knowledge, skills and experience for a specific period of
time. Alternatively, an outsider can offer an independent
and neutral perspective if you need to facilitate meetings
or resolve difficult conflicts.

What’s available?
There is a wide range of support available including
third sector infrastructure organisations and commercial
consultants. Local, regional, national and specialist
infrastructure organisations offer a variety of training
courses, and often have ‘development workers’ who can
“External help can
work closely with your organisation to address specific provide specific
issues. There is also a great variety of consultants, specialising
in everything from strategy, to governance and ICT. skills for a specific
period of time.”
Choosing the right support
Neither consultancy nor infrastructure support are regulated
fields – there is no independent assessment of quality or Once you know what you’re looking for, contact relevant
agreed minimum standards. So there are risks: choosing the infrastructure organisations – some of them maintain a
wrong support could be an expensive mistake that de- network of consultants. Ask other organisations in your
motivates everyone. field or local area if they can recommend anyone. If you’re
looking for performance support, the Performance Hub
In order to choose the right support, make sure you’re clear Support Finder is a good place to start at
about what you need. Do you need someone with specialist www.performancehub.org.uk/supportfinder
knowledge such as law or marketing or do you need to bring in
specific skills such as research, or mediation? How important is
it that the consultant has previous experience with third sector Managing the relationship
organisations or your particular area of work? Once you have found suitable support, prepare a clear brief
so that everyone understands and accepts the aims and the
Finally, be clear about your budget as the price of support process. Most development workers will give you a support
can vary widely. Many infrastructure organisations and some agreement to sign. With consultants, it’s helpful to agree a
consultants offer free services to third sector organisations. contract at the start of your relationship, setting out milestones
Consultants usually charge a daily rate, which could be and timescales so you can measure progress and contain costs.
anything from a few hundred pounds. If you are paying for external support, you won’t want any drift
or delay. Similarly, anyone providing you with support free of
charge won’t appreciate you wasting their time.


external support
“At the end, evaluate Learn more
the relationship and Performance Hub Support Finder
what it has delivered.” www.performancehub.org.uk/supportfinder
National Association for Voluntary and
Community Action (NAVCA)
A directory of infrastructure organisations, by
region www.navca.org.uk/liodir
List of third-sector-friendly trainers and consultants:
www.trainersandconsultantsdirect.org.uk

Jon Fitzmaurice and Jenny Harrow The good


guide to working with Consultants (NCVO, 2007)

Directory of NCVO Approved Consultants


(NCVO, 2007)
www.ncvo-vol.org.uk/publications

Action with Communities in Rural England (ACRE)


Directory of Rural Community Councils
www.acre.org.uk?zRCCNETWORK.htm

Professionals4Free
Signposting website for pro bono (free) support
www.professionals4free.org.uk

Communicate regularly with your consultant or development At the end, evaluate the relationship and what it has delivered.
worker throughout the project. This will help keep work on Development workers and consultants will welcome feedback
track and ensure everyone feels involved and valued. Any as it will help them fine tune their services.
problems will be more speedily resolved.

Monitoring progress through meetings, reports and checks Implementation


on milestones should prevent costly delays or unhelpful Make full use of the time and money you’ve spent on
diversions. It will also be motivating for those involved, as the consultant by discussing any recommendations made
they begin to see gains and positive results. and agreeing how to implement them. Make sure you
communicate the results to people across your organisation
If you’re unhappy with your consultant’s performance, as this will demonstrate the value of the support you
discuss it with them as soon as possible so you can work to organised and improve their motivation to implement
improve the situation or, if necessary, revise payment terms any changes.
or terminate the agreement. Be sure to check first whether
there’s been a misunderstanding or difference of perspective. Also, hang on to any data and information gathered by the
external helper. This may well prove useful for other aspects
Sometimes disagreements may arise. Again, early action to of your work and for future evaluations.
resolve these is essential, rather than allowing disputes to
fester and derail the process.
10
LEADERSHIP

A new leader can bring

Coping with a fundamental change to an


organisation.Tracy Beasley
explains how trustees can

change in leader effectively lead their organisation


through this transition.

A change in leader brings the potential


for a new approach and new ideas,
and for unrest or apprehension from
employees and volunteers. How people
across the organisation respond to the
change in leader will depend on their
feelings and attitudes towards both
the outgoing and incoming leader.

This is where the leadership role of


the board truly comes to the fore, by
setting the tone for the new leader
and the organisation. It is the board’s
responsibility to instil a sense of belief
in the change of leader across the
organisation, as well as to support the
new leader in their first few months.

As with any change, managing a change in


leader requires preparation, acceptance
of what the change means to the
organisation and a commitment to drive
it forward.

1. Preparing for
your new leader
The earlier you start to prepare for
a change in leadership, the easier it
becomes. It is now widely recognised
that succession planning and developing
and attracting talent are key to creating
a sustainable organisation. In a recent
Leadership Centre study, the average
length of service of a chief executive of a
medium-sized charity (over £100,000 and
under £5 million turnover) was estimated
as five years. Therefore, the time to
consider what your future leadership
requirements might look like is now!

Tracy Beasley is Manager of the Third Sector Leadership Centre


11

Things to consider:

On mission?
Is your organisation suffering from mission drift? The period
before a new leader arrives is an ideal opportunity to reflect
on your organisation’s strategic direction. Is your strategy
clear and have you analysed the skills you need to drive this
programme of work forward? If not, is it time to step back
and review your strategy, or will you make this one of the
first tasks of the new leader?

Analysing the skill set means for them. Resistance to a new leader will ultimately
Different organisations need different skills from their make the trustees’ role much harder.
leaders at different times. Compile the role profile of your
new leader by analysing the skills and knowledge needed Crucial conversations
to fit the requirements of the post and the challenges your Take time to understand the background and values of
organisation faces. your new leader. Be open to discussing their new ideas and
methods and exploring any differences in your views. This
Seek and you shall find will set a positive tone for resolving differences with the new
Good selection processes ensure that appropriate candidates leader in the future.
‘self-select’ by proactively applying for the job. This means
you need to promote the post clearly, using media that
match your required skill set. Try ‘unusual suspects’ such as 3. Developing and supporting
networks and professional associations.
the new leader
The role of trustees in developing a new leader is never
2. Accepting the new leader over. Trustees are well placed to mentor and coach
the new leader and to use their specialist expertise to
into the organisation
help resolve particular problems. By developing today’s
As trustees, meeting the new chief executive early leaders and planning for your future leaders you will
on helps ensure a smoother transition period and help to secure your organisation’s long-term success.
builds better relationships. A structured, if simple,
induction programme is vital, including a period of
time for discussion and reflection on the leadership Learn more
role itself and how it works in your organisation.
Developing chair and chief executive relationships:
The induction could include: Association of Chief Executives of Voluntary
Organisations (ACEVO) www.acevo.org.uk
Knowledge transfer National Council of Voluntary Organisations (NCVO)
The trustees are the custodians of the ethos, values and www.ncvo-vol.org.uk/askncvo/TrusteeGovernance
history of the organisation and have a responsibility to
transfer this to the new leader. This needs regular, not just Developing leaders and tools to assess
one-off, communication. This should include communications leadership capability:
between the outgoing chief executive and the board of Third Sector Leadership Centre
trustees, who then communicate with the incoming chief www.thirdsectorleadership.org.uk
executive.
Talent management and good human
Communicate, communicate, communicate resource practices:
Establish regular meetings with the new chief executive as Chartered Institute of Personnel Development
soon as possible, including social events. Ensure that staff also www.cipd.co.uk
have an opportunity to meet the leader early on and that Workforce Hub www.ukworforcehub.org.uk
they understand the reasons for your choice and what this
1
CASE STUDY

Noelette Hanley, Manager, dancing with a former trustee Photo: Ben Hodson
1

Small charity –
big changes
When a small community organisation “It was very motivating to take time out to do this.
began to expand, it had to make major It reassured us we were on target and gave us ideas
changes to safeguard its future. Diana Quay for moving forward.”
talks to the manager of Luton Irish Forum
about overcoming the challenges involved. The next stage was to recruit an external consultant to help
the manager, staff and trustees look at services and roles
LIF started in 1997 as an ad hoc support network for and consider potential development. The consultant held
Irish people living in Luton. Its board and volunteers preparatory meetings with the board and Noelette before
worked closely with each other, organising events to facilitating an ‘away day’ session for staff and trustees.
promote Irish culture and small-scale activities to address
community needs. It had little funding, no premises and “This really helped, as the changing role of
no full-time staff. By 2000 this was no longer the case and trustees and becoming familiar with the new role
from 2002 LIF began to expand rapidly due to a substantial of manager was a difficult key issue and is still
increase in Irish Government funding for voluntary something we’re trying to balance.”
organisations working with Irish communities abroad.

Recognising need
for change
By 2006 LIF had three full-time staff, a keen and sizeable
group of volunteers, healthy membership numbers and its
own community centre. But it didn’t have formal systems,
transparent financial processes or structured supervision.

With a new building to run, growing membership demands


and opportunities for major funding, LIF recognised it needed
to address its high-risk shortcomings. The first step was to
alter its status from solely a registered charity to a charitable
company, removing trustees’ personal financial liability. The
second step was to recruit a full-time manager. Noelette
Hanley was appointed.

Going about it
Noelette’s priorities on joining LIF were to oversee the
relocation of premises, and review policies and procedures.
She introduced professional accounting software and formal,
transparent financial procedures. Her next priority was
to review LIF’s performance by comparing it with other
agencies providing similar services. That included a trip
to an organisation in Leeds to study its development
and structure.
1
CASE STUDY

Getting buy-in
While all involved recognised the need for change, there was
some initial resistance. The trustees were so used to handling
day-to-day activities that stepping back and dealing with the
strategic view while leaving staff to run things was unfamiliar
territory for them.

“The board had been very proactive in day-to-day


operations and used to directing the staff. So it
was difficult for a while to get the board and staff
to channel their communications through me. We
also had to establish that staff, rather than board
members, would take charge of our everyday
operational activities,” Noelette explains.

The board is now removed from daily involvement but


receives a full monthly account of LIF’s activities. Getting
used to new systems and policies was also difficult, as LIF
secretary and trustee Frank Horan confirms:

“The accounting systems are quite sophisticated. Top tips


Some of our people are not professionally qualified
so it’s been a big learning curve that’s still going Noelette’s top tips for successfully
on. But we are very lucky to have excellent staff.” managing change:

Noelette credits extensive consultation for the successful 1 Set priorities and deal with the
outcome. A survey and consultation at both group and high-risk problems first.
individual levels meant staff and volunteers as well as
trustees were included in the decision-making. And that kind 2 Pace yourself. It’s easy to get carried
of consultation continues. away and think everything has to
change immediately. It doesn’t.
“I have an open-door policy. We also hold a
general meeting once a month.” 3 Involve staff, volunteers and other
stakeholders in your decision-making
and keep them fully informed.
Reaping the benefits
LIF now has a three-year business plan that sets clear goals 4 Learn how other organisations
and confirms its mission. It has trebled its user numbers deal with change.
and has greatly improved its partnerships with local black
and minority ethnic organisations. It has also increased its 5 Use external support. Help from a neutral
local profile through the local media and the local authority. source can resolve internal issues.
One challenge is that user demand for the centre means an
extension is now needed – and the welfare staff are working 6 Make use of local training opportunities.
at full capacity.
7 Try to get local media coverage for your
User feedback is excellent, with a regular postbag of successes; it can be very rewarding and
appreciative cards and letters, and the 55 volunteers who motivating for staff, volunteers and users.
assist the four full-time and two part-time members of staff
are highly motivated.

“The process has been hugely rewarding…


The amount of commitment is superb.”
15
OPINION

Does enjoyment matter?


For years now, many third sector organisations learnt about sharing (and snatching!). But when I worked with
have, quite rightly, been focusing on outcomes: the organisers on a funding application, the form didn’t ask
the changes, benefits, learning and other effects whether she enjoyed playing with toys while she was there.
that result from our work. As part of this, we’ve Her enjoyment was ‘just user satisfaction’ and not valued as an
become used to making a distinction between outcome. Her play was not valued unless it led to learning.
whether a user enjoys a service, and whether
they benefit in other ways. And in the arts, while profound paintings, poignant plays,
and poetry performances may all encourage empathy or
But could this distinction take us down a dangerous path? help us to see the world differently, more popular arts such
Have we begun to believe that the only things that matter as pantos or TV programmes may just entertain us. Is this
are permanent changes to people’s lives? This view puts us entertainment not an outcome?
at risk of losing something essentially human: the short-term,
fleeting enjoyment of using a service. A society that cared I’m not saying that we should turn away from the massive
only about permanent changes might be a joyless place. needs in our society and move towards pleasure-seeking.
Rather, when working with people in great need, we should
help them enjoy their time with us, regardless of whether
When I was helping gain charitable status for a football club we can also help them turn their lives around.
for black boys and girls in South London our application
waxed lyrical about the benefits of improved self-esteem, So let’s stay focused on long-term outcomes by planning for
discipline, health, and understanding the value of team and demonstrating our lasting benefits to society. But let’s
working. But looking back I realise we said nothing about the also remember to value the enjoyment that people get from
enjoyment of actually playing football. Wasn’t that important? using our service in its own right. After all, human lives are a
succession of fleeting moments. Let’s make those moments
When my girl went to the local playgroup, she no doubt pleasurable and enjoyable whenever we can.
continued her physical, social and intellectual development and

“When working with people with


great need, we should help them
enjoy their time with us.”

Richard Piper is Joint Manager of the Performance Hub


From here to there
Managing change in
third sector organisations
OUT
NOW!

3
Whether they want to or not, all third sector
organisations have to deal with change.

This Performance Hub guide is aimed at leaders and


managers of third sector organisations, who may be
involved in leading change. It will help you to understand
different types of change, choose the right approach and
plan for a change that lasts.

From here to there builds on established management


theory and contains direct learning from third sector
leaders and managers.

Mar 2008
ISBN: 978-0-7199-1752-3

Price: £12

Order your copy now from


www.performancehub.org.uk/fromheretothere
or call 0800 2 798 798.

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