driving profitability in challenging times steve mather neighbourhoods and regeneration director ©...
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Neighbourhood Strategy – Five Key Phases Neighbourhood Definition In year Performance Monitoring Annual Assessment and Benchmarking Tackling poor performance - “Neighbourhood Planning” Making difficult decisions – “Option Appraisal” © Places for People Homes Limited 2013TRANSCRIPT
DRIVING PROFITABILITY IN CHALLENGING TIMES
Steve MatherNeighbourhoods and Regeneration Director
© Places for People Homes Limited 2013
Why is the Neighbourhood Strategy critical to our business ?
• Welfare Reform• Reduced public funding• Challenging housing market / economy • Increasing importance of investor confidence • Drive for efficiency / vfm
• Alignment of functions in terms of delivery
• Need for increased profitability / Return on Investment
• Ability to focus resources and access external funding
© Places for People Homes Limited 2013
Neighbourhood Strategy – Five Key Phases
• Neighbourhood Definition• In year Performance
Monitoring • Annual Assessment and
Benchmarking• Tackling poor performance -
“Neighbourhood Planning” • Making difficult decisions –
“Option Appraisal”
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Neighbourhood Definition• 600 + neighbourhoods / 55,000 homes
• All Group owned / managed stock included
• Neighbourhoods vary in size from 20 homes up to 1,000 homes
• Alignment with existing structures is key - scheme codes, data management systems, etc.
• Care and support schemes are included where appropriate.
• Get this right and it works !
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In Year Performance • Surplus Per Property (profitability !)
• Key financial and housing management performance data
Turnover
Arrears
Void Loss
Repairs costs
Economic activity rates
• Historic and current performance data
• Dashboard – accessible to all and simple !
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Neighbourhood Dashboard
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Neighbourhood Dashboard
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Annual Assessment• KPI’s :
Surplus Per Property Turnover Repairs cost per property Planned maintenance Future investment needs
• Year on Year comparisons (3 years)
• Minimum “surplus” required from each property ( e.g. £2k)
• Regional “League Tables” / Benchmarking at “Assessment Group” level
• Reviewed with local management to agree banding
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Banding
GREENPerforming well
retain focusto drive up
performance
AMBERPerforming poorly
but the Group havea long term interest
(Neighbourhood Planning)
REDFuture to be considered
(e.g. disposal, investment, conversions, management
arrangements, etc.)(Option Appraisal)
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Amber - Neighbourhood Planning
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Neighbourhood Planning
• Develop long term vision• Customer and stakeholder
involvement• Focuses upon the wider
neighbourhood• Framework model• Evidence based • Long term impact measured• Physical, social, economic and
environmental interventions
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Red - Option Appraisal• Detailed financial analysis
• Considers all options to test viability (e.g. Rationalisation / Disposal / investment)
• Linked to “Tenure Diversification” strategy
• Linked to “Asset Management” investment strategy
• Linked to “Rationalisation” strategy
• Challenges conventional thinking and assumptions
• Often least worst option• Forces decisions to be made !
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What difference have we made in our neighbourhoods…
• Reduced turnover : 19.6% to 9.8% (Padiham, Lancashire)
• Reduced repairs spend : £ 1619 to £ 625 per property = £ 395k (Norfolk Park, Sheffield)
• Reduced re-let times : 45 days to 11 days (Manor, Sheffield)
• Increased surplus per property : £ 2,287 to £ 3,071 = £ 770K (Clayton Brook, Lancashire)
• Improved customer satisfaction : 58% to 92% (Kingsmere, Eastbourne)
© Places for People Homes Limited 2013
How has it changed the way our business operates ?
• Move away from managing by “averages” and dealing with the detail
• Management at the most meaningful level• Staff understand the financial implications of their
decisions and actions• Quality of data and the analysis and reporting has
improved • All staff / functions that impact upon a
neighbourhood now work together • There is nowhere to hide the most challenging
issues !• Good and bad performance is clearly identified • Staff have the data they need and meaningful
performance measures • Significantly improved stakeholder and customer
relationships© Places for People Homes Limited 2013
What difference have we made to our business …
• Significant organisational change : SHU Evaluation
• Improved neighbourhoods : 93% of areas banded “Green” 21 areas moved from “Amber” to
“Green” (11/12-12/13) 2 “Red” areas (both for disposal)
• Increased financial performance : £ 2.4m (11/12 – 12/13) in our most
challenging areas Profitability in all regions improved
by between 4% and 16% (11-12 to 12-13)
Significant overall improvement in financial performance at a company and Group level
© Places for People Homes Limited 2013
Neighbourhoods we are proud of …
© Places for People Homes Limited 2013