new rules of repairs and - chartered institute of housing pdfs/presentations/rethinking rep… ·...
TRANSCRIPT
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New Rules of Repairs and Maintenance
• Working Together Project - scope and objectives
• Getting it right: the positive trends
• Critical Findings: what the sector has struggled with
• The New Rules of Repairs and Maintenance – reinventing the way we deliver value to homes
• Horizon Scanning
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Key Challenges
1. Fairness in Service Provision
2. Responsive repairs not adding value
3. IT is fragmented and not delivering solutions
4. Silo working within organisations
5. Changing customer base
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Key Challenges
6. Data rich but information poor
7. Mixed impact of Lean Systems on repairs
8. Procurement minefields
9. Partnering difficulties
10. Performance: measuring what is
important
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1. Fairness in Service Provision
• A minority of users are responsible for most responsive repairs and for high cost voids
• Estimated 75% of resources go into supporting high impact or benefit dependent tenants
• Many others look after their home entirely themselves
• Unfair distribution of landlord resources to heavy users of the repairs service
• Often the same households that absorb other landlord services so needs a coordinated response
• Needs to be recognised and challenged in the organisation’s culture
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Choices and Responsibilities
• Expectation that all tenants will look after their home
• Rule breakers are seen not to prosper
• Rewards for doing the right thing and celebration of outstanding contribution
• Principles apply to residents and staff
• Property induction and support mechanisms for new households
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2. Responsive repairs not adding value • Responsive repairs still seen as a service not as a
major investment • Repairs are driven by service user demand not by
property needs – can waste resources • Many responsive repairs are a product of
behaviour that conflicts with the tenancy agreement and could be avoidable if it were enforced
• Not providing value for money compared to planned works
• Only planned and cyclical maintenance systematically address the needs of the physical asset
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Redirecting Resources: focus on the asset…
• Drive down reactive repairs demand
• Mature discussion with residents about the balance between reactive repairs and genuine investment
• Sustaining tenancies to reduce voids numbers and costs
• Identify and work on eliminating avoidable repairs
• Explicit increase in expectations about tenant responsibility repairs
• Address the cost per property variation of 40% between social landlords
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3. Repairs IT is fragmented and not delivering solutions
• Many landlords have over 30 separate systems operating
• Systems do not interact to share data and provide a rounded view of issues
• Jobbing repairs systems not integrated with asset management systems
• Many clients struggling with interfaces that do not operate in real time e.g. only limited visibility of the repair order on the system
• Order tracking and delivery information not widely available for tenants
• CRM has just added another layer
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Defining and Refining Data Needs…
• Start by defining your business process and business objectives
• Then match the IT system to this
• Fix your current IT infrastructure
• Understand and map where your data sits
• Fix the data connectors that need to work together
• Find the holes and make a plan to fill them
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4. Silo working within organisations
• Housing sector has diminished the career appeal of the profession through ever narrower specialisation
• Team boundaries and departmental chauvinism inhibit focus on value and quality
• Failure to commit to joined up working costs time and resources
• Poor integration of repairs and maintenance with wider asset and housing management
• Short term advantage is preferred to the long view and lifecycle planning
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Organisational Culture and Leadership…
• Values and purpose need to be advocated consistently across the organisation
• Internal Collaboration between teams valued • Some good examples of using, e.g. the access
provided at gas safety checks • Significant efficiency gains are available from
internal collaboration e.g. on voids management; call handling; estate inspections
• Integrated approach to asset management and estate sustainability
• Move to a more generic concept of the housing manager role with a richer mix of skills and experience
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5. Changing customer base and perceptions • Digital natives (grew up with mobile communication) and digital converts (have adapted to new technology) now outnumber traditionalists (still writing letters)
• Customer feedback for R+M is indifferent – reporting works pretty well but anything out of the ordinary proves too difficult
• Communication issues especially when right first time is missed
• Invisibility of repairs progress to customer and staff • Lack of ownership around complaints • Huge amount of staff effort servicing transactions
which customers are not noticing
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Future customer service… • Potential for different service offerings according to
behaviour
• Primary channel will be the web with an online personal touch – can log in and is personalised to them; similar to internet banking
• Telephone – there for the foreseeable future; contact centre – should also handle outbound traffic
• Email and text – don’t want two way conversations through this – difficult to administer
• Digital and social media – difficult to predict what that will be – fast changing; questionable what the true advantages are
• Post – will die out and face to face remain on a needs basis
• Interactions: simple, seamless and a rich customer experience; self serve enabled and paperless
• Business that uses customer insight to drive decisions
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6. Data rich but information poor
• Landlords generate a huge amount of data on repairs and maintenance of the stock but struggle to turn this into usable information
• Housing compares poorly with other industries in terms of utilising informative business and trend analysis
• Little development of predictive modelling for properties or building components
• Active asset management requires real time and accurate data to identify under performing assets
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It’s only data unless you use it…
• Housing systems and CRM, asset management and delivery systems will be properly connected and will interact
• Joined up, wider integration across all modules
• Simpler end to end processes
• Improved data quality
• Application of customer intelligence
• Mobility – for customer channels and our staff; need a sustainable solution for the whole business
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7. Lean systems thinking
• Huge impact on streamlining end to end business processes
• Works best from a customer perspective and when it fully engages front line staff
• Premised on undifferentiated customer demand
• Needs of the asset can be eclipsed
• Juggernaut that carries all before it: Year Zero
• Black or white judgements can leave no place for local culture and needs
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Internal partnering and collaboration… • Summit approach to generate internal focus
applying overarching business values e.g.
Protect our current income
Reduce our costs and drive efficiency
Focus our resources and service
Generate new income
• Formation of Project groups with members of each team engaged
• New clear structure for communication
• New clear processes with staff taking ownership
• New clear roles and responsibilities of individuals
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8. Procurement and Commissioning • Balance of risk in Procurement seen as lying with the
client
• Huge cost to the sector of meeting procurement requirements; no successful movement to standardise requirements and operate on a collective basis in repairs
• No transparent information available about past performance – clients now ask bidders to organise references
• Commercial imperatives mean bidding is area of greatest innovation and investment by contractors
• Housing procurement lets the contractor choose the materials to use but they have no interest in lifecycle
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New consensus…
• Many clients now questioning whether the market works
• Procurement collaboration not working for responsive repairs judging by the increase in home grown solutions
• Competitive process tests contractor capability to present their brand
• Markets require reliable information on performance and delivery in order to function effectively and in the interest of the client and consumer
• Repairs rating system for the sector
• Lifecycle considerations
• Landlords – long lifecycle, reduced maintenance, lower carbon and improved NPV
• Residents – safety, great performance, good looks and reduced call outs
• Contractors – easy to fit, reliable and offer savings and predictability when taking on long term liabilities
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9. Partnering Difficulties • Flawed incentive of repeat business compromised by EU
procurement
• No evidence of sustained focus on cost reduction through partnering but profits have risen
• Partnering has in many cases led to higher rather than lower costs
• Main Contractors continue to bully the supply chain
• Partnering contractors still pursuing maximum returns to the detriment of long term relationships
• Clients award contracts on the basis of service levels which they cannot afford and against budgets which are already under pressure
• Partnering now more popular with contractors than with clients
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Reinventing Partnering…
For repairs and maintenance the challenge is to demonstrate:
• Real value added to the asset
• Improved communication and responsiveness to perceived problems
• Greater inter-organisational and inter-personal trust
• Awareness of opportunities to develop mutual advantage
• Promotion of a culture to support innovation and learning
• Establishment of an inclusive forum that objectively measures and assesses accountability for meeting objectives
• Sharing of good practice across the sector
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10. Managing Performance
• We measure performance so we can improve: processes that work; low overheads; good value for money and a service that tenants want; looks after and adds value to the asset
• What are we trying to find out: are tenants satisfied; does the service meets promised standards; is the service getting better?; how well we are investing in the asset and its components; whether we can afford to deliver the service
• Tenant feedback: collect this regularly at the point of service delivery and use and apply it to demonstrate users are having an impact on service delivery
• Qualitative measurement: precision, consistency and some form of comparison or benchmarking. Circulated to service users and analysed to understand failure demand and customer requirements
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Performance Challenges
• Too many PIs giving us too much and often conflicting information
• Questionable integrity of some data
• Performance measures should test value in terms of the service user and the building asset
• Establish three high level performance measures for repairs and maintenance:
1 for Economy (Cost)
1 for Efficiency (Performance)
1 for Effectiveness (Quality)
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Performance Challenge: The Difficult Questions
• Whether demand for responsive repairs can be reduced and whether needs can be met in some other way
• Increasing the role and impact of cyclical and planned maintenance
• Why do properties become void and can this be prevented
• Looking after your home: changing tenant expectations and behaviour