www.northwardshousing.co.uk value for money discovering excellence day 13 april 2009

www.northwardshousing.co.uk

Value for MoneyDiscovering Excellence Day13 April 2009


Value for Money

Understanding costsCost benchmarkingVfM Project GroupFinancial managementEfficienciesResource PoolCustomer engagementTelling the story


Audit Commission

NH has a clear and robust understanding of its costs …. Effective financial management enables the organisation to deliver services that reflect clearly identified customer priorities …. Benchmarking reports are used to identify areas for improvement …... This approach is supporting resources to deliver frontline, customer facing services


Understanding costs

Key requirementStepping back and asking questionsDifferent measures

BudgetHousemark Benchmarking costWeekly cost indicators

Ensuring Managers understood their costs alsoDevelopment of model


Cost benchmarking

Use of HousemarkOnly a can openerUnderstand the cost drivers2007-08 benchmarking

£500 management cost per unit£2,100 total cost per unit

Board agreement over targetshttp://www.housemark.co.uk/hmkb2.nsf/1/2450D06849F4D302802575630033B049


Costs – Level 1Relationship between Total Management Cost (2008) and Rating

£-

£100

£200

£300

£400

£500

£600

£700

£800

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& L

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3

4


Costs – Level 2

, Rent Arrears, £44.70

, Tenancy and Estate Management,

£54.27

, Empty Properties, £46.53

, Responsive Repairs, £84.28

, Major and Cyclical Repairs, £66.81

, Lettings, £32.82

, Premises, £26.79

, IT, £27.43

, Legal, £13.17

, Finance, £21.35

, Central, £82.09


Costs – Level 3


, Tenancy and Estate

Management, £38.43



, Major and Cyclical Repairs,

£9.15

, Lettings, £18.14

, Premises, £11.29

, IT, £0.20

, Legal, £0.01 , Finance, £0.17

, Central, £14.52 , Rent Arrears, £0.98

, Tenancy and Estate

Management, £2.38



, Major and Cyclical Repairs,

£10.74

, Lettings, £0.19 , Premises, £0.12

, IT, £0.02

, Central, £0.82


, Premises, £8.80

, IT, £26.44 , Legal, £2.17

, Finance, £21.15

, Central, £43.28

Local Services £125Surveyors £71

Back Office! £140


Costs - AnalysisPercentage Relationship between Overheads and Management Cost (2008) with Ratings

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

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n C

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lant

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plar

HA

-

1

2

3

4


VfM Project Group

Representative of the organisationVfM reviewsCascade briefingsSuggestion schemeIntranetGetting the message outIt’s your responsibility!


Financial management

Own financial system from day 1Its “our budget”Cultural changesFinance team and budget meetings“We will try to do” attitudeRegular Board and Sub-Committee reporting


Efficiencies

Capital Programme - £1.6M

Revenue - £1.3M 2007-08 (target £800,000)Service Level Agreements

34 down to 17 (now 12)On those remaining, cost reduction £580,000

Allowed to keep under Management AgreementEnabled mainstream funding of the warden serviceAudit trail of how used


Resource Pool

Clear and transparent mechanism for efficienciesBids from Managers, TeamsIn January 2008 opened up to Area PanelsChanging Panel compositionSimple form

Must identify tenant or community benefits

£482,000 spent to dateSmallest award £300 for garden shed at schemeLargest award £150,000 on environmental projects


Resource Pool


Customer engagement

Business Planning and Budget Events2007 event based on Budget Game

Reappraisal of spend on Environmental and Resident Involvement

2008 eventPot of Gold£30,000 per Area Panel

Youth ActivitiesGreen spaces and environmentSafer lighting and security


Tenant Priorities 2007Tenant Resource Priorities

0

5

10

15

20

25

30

Enviro

nmen

t

Crime /

ASB

Neighb

ourh

ood

War

dens

Loca

l Offic

es

Repair

s and

Main

tena

nce

Reside

nt In

volve

ment

Shelte

red

Schem

esOth

er

Spend Headings

%


Pot of Gold


Telling the story

Confident and self awareEmbedded understandingVfM Project GroupUnderstand costsConsistent messageBeginnings of participatory budgeting

[Procurement, Budgeting, Strategy, AES, Financial Plan]


VfM Assessment

Housemark discussions May 2006Embedded VfM

GovernanceFinancial stewardshipPerformance managementProcurementCustomer focus

Self aware but self assured


VfM Assessment

Governance

Financial stewardship

Performance management

Procurement

Customer focus

Jun 2006 Nov 2009


Steve Wood Alison FosterDirector of Business Services Head of [email protected] [email protected] 227 3018 0161 227 3010

Northwards HousingHexagon Tower6th FloorCrumpsall ValeBlackleyManchester M9 8ZS

thank you for listening

www.northwardshousing.co.uk value for money discovering excellence day 13 april 2009

Documents

story slide

used slide

security slide

costs analysis slide

pot of gold slide

development of model

management cost

costs level