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VFM self-assessment workshop This presentation provides a VFM toolkit with a self-assessment template. Steve Smedley Acuity Associate May 2014. Workshop aims.

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Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

VFM self-assessment workshop

This presentation provides a VFM toolkit with a self-assessment template

Steve Smedley

Acuity Associate

May 2014


Workshop aims

Workshop aims

To provide delegates with the tools and information to meet the regulatory requirement to publish an annual VFM self-assessment via:

Understand the updated regulatory context and emerging lessons from Year 1

Take a look at the key ingredients of a VFM self-assessment

Challenge personal thinking through debate


It s your day informal and participative

It’s your day …… informal and participative

Part 1: morning – 10:00 – 12:45

Introductions

Regulatory context brought up to date

Observations & lessons from Year 1

What has the HCA been saying about year 2

What might a self-assessment look like? – overview

Lunch (& registration for PM attendees): 12:45 – 1:30

Part 2: afternoon – 1:30 – 5:00

What might a self-assessment look like? – the detail

Some thoughts from me

Some thoughts from you - looking back and forward

Last thoughts


It s your day informal and participative1

It’s your day …… informal and participative

11am – 1pm - Part 1

Introductions

Regulatory context brought up to date

Observations & lessons from Year 1

What has the HCA been saying about year 2

1-1:45pm - Lunch

1:45 – 15:00pm - Part 2

What might a self-assessment look like?

Some thoughts from me

Some thoughts from you

Last thoughts


Part 1

Part 1


Before dropping into wonderland

Before dropping into Wonderland

  • Who you are?

  • What you do?

  • What you want to get out of today?

  • Any particular issues, hang-ups?


Regulatory context updated

Regulatory context …updated


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Co-regulation

Compliance


Horrible histories vfm

Horrible histories: VFM

This assumption is what your self-assessment is trying to dispel.

Wot no competition? Local monopolies? It’ll end in apathetic coasting…..

Once upon a time, the government proclaimed that the public sector should be more efficient.

Best value and VFM were prescribed and inspectors checked compliance.


Fast fwd vfm regulation now

Fast fwd: VFM regulation now

  • Review of Social Housing Regulation 2010

    • we expect in future the regulator to be more proactive…on ensuring VFM…to achieve better returns for the taxpayer & support new affordable housing supply

  • Purpose of economic regulation (current Regulatory Framework):

    • to protect historic government subsidy, promote access to private finance, and help address the lack of competitive pressures on providers which might otherwise put pressure on service quality and efficiency


Vfm regulation now

VFM regulation now

Same set of standards apply to RASAs as 1000+

Assurance-based approach to regulation

aim to obtain sufficient evidence (assurance) standards are being met

starting point is HAs’ own assurance on compliance with standards

HCA wants assurance that the board is assured!

HCA guided by 8 question engagement framework

Q5 does the organisation demonstrate how it achieves VFM in meeting its strategic objectives?

requires a review of the assurance provided to board on the strategy for & achievement of VFM

so VFM self-assessment is key evidence/assurance

ability to drive VFM a key indicator of quality of governance


What the vfm standard is trying to achieve what the hca is seeking assurance on

What the VFM standard is trying to achieve & what the HCA is seeking assurance on

Desired outcomes are no more than what an effective board will already be doing - HCA looking for assurance that:

providers have comprehensive & strategic approach to VFM that is board-led

boards clear about:

their strategy

how the business is structured

how its resources are applied to deliver their plan

providers have effective performance management & scrutiny functions

boards understand ROA, consider their use in the round &seek the best strategy for delivering value from them, whilst meeting organisational objectives

providers operate efficiently & effectively as possible, seeking to control and optimise the relationship between costs and quality of services

providers are as transparent as possible about the above and can be held to account by key stakeholders

Matthew Bailes et al spring 2014


Round up of implications

Round up of implications

VFM now about the whole business – not just services

valuetagged to your objectives not 3rd party

but has to reflect the value perspective of stakeholders

publicly listed businesses maximise shareholder value

social businesses maximise stakeholder value?

raises tension between stakeholder value perspective eg

existing v future tenants

government (build) –v- sector (beyond bricks ‘n’ mortar)

board/exec reconcile this

self-assessment is a stakeholder doc

reality check – VFM & (social) business effectiveness the same thing

can you measure the value you exist to produce? – your product


Round up of implications1

Round up of implications

greater emphasis on boards

opportunity for the sector:

demonstrate it can do co-regulation

define value positively, in social business terms

not just about cost cutting

counter anti-social housing sentiment with a better story

assert significance of sector

but avoid PR exercise

HCA not dictating terms (yet):

business model, allocation of resources: supply-v-services-v-support-v-community investment

organisational form – group, merge, etc

operating structure, suggested costs, service levels

but there is dissonance between regulation and politics


Vfm self assessment first principles

HCA specifically interested in these specific expectations!..... especially the last 3…so specifically address them!

Purpose of self-assessment = demonstrate to stakeholders how meeting the VFM standard

VFM self-assessment - first principles

  • Any specific expectations?

  • ‘doing’ VFM

    • robust approach to use of resources

    • understanding RoA & strategy for optimising returns

    • effective performance management & scrutiny

    • understand service costs, outcomes & drivers

  • ‘reporting’ VFM

    • enable understanding of RoA

    • set out absolute & comparative costs of specific services

    • evidence VFM gains (backwards & forwards)

  • So what’s in standard?

  • ‘doing’ VFM

    • articulate & deliver a comprehensive & strategic approach to VFM to meet objectives

    • application of 3 Es

  • ‘reporting’ VFM

    • reflects stakeholder interests

    • robust

    • transparent

    • accessible


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

The VFM standard.

What do you think?

Any observations, issues?


Observations on year 1

Observations on year 1

unhappy with sector response – VFM not taken seriously

VFM mood music changed last autumn

failure of compliance rather than failure of VFM

downgrade G rating by one notch

HCA’s ‘presentational problem’ –communicating disappointment to sector without government using it to further beat unloved sector & regulator

HCA unlikely to be more prescriptive – counter co-regulation

smacks of box ticking & avoiding responsibility for managing the biz themselves

BUT HCA has given us some pointers…….(to be revisited)

sector appears unhappy with HCA’s handling

risk of compliance mind-set resurfacing?

Your take?


Observations on year 11

How was it for you?

Observations on year 1

Determining what was required

uncertainty about requirements

level of detail?

where and how to publish?

accessible –v- comprehensive/technical?

many opted for summary in accounts and detail on website

Roles

extensive board sign-off but scope for more involvement in process

understanding, challenging, owning output

shaping the SA

special role for audit committee

only third used tenant scrutiny – obvious role here

little reference to input from other stakeholders or even their perspective


Observations on year 12

How was it for you?

Observations on year 1

What data did you use?

Return on assets

wide interpretation – what was expected? Clarity required?

methodological & contextual issues militate against useful KPI

but killer headline metric not required

improving understanding of stock biz critical going forward

Absolute & comparative costs

use made of HouseMarkdata

sometimes limited in OFR but more elsewhere

some not stated costs – difficult to understand

Evidence of gains

HouseMark data, VFM registers, procurement, commercial return

tenant scrutiny, awards, accreditations not mentioned

key issue – evidence your gains (& performance), better understand social value


Observations on year 13

Observations on year 1

How about you?

Dissemination

need to rationalise the docs that tell us about biz effectiveness? OFR+?

improve accessibility & transparency

tone down PR

reporting non-financial outcomes – learn from social accounts

Benefits

majority saw value in process as biz tool

Regulatory improvements

clarify expectations – fine line prescription –v- clarity of expectations


Self assessment structure different strokes

Self-assessment structure: different strokes

Corporate priority approach

HouseMark/S&P approach

VFM standard compliance approach

You don’t have to do it like this!


Self assessment approaches templates

Self-assessment approaches (templates)

What kind of approach do you favour?

The Compliant

  • background – ie HCA requirement

  • what VFM means to us & how seriously we take it in terms of strategy & delivery (ref standard)

  • return on assets

  • absolute & comparative costs

  • past & future VFM gains

    Some take a KLOE approach

  • distil standards’ principles

  • assess –v- criteria

The HouseMark/S&P

  • definition of VFM in context of purpose & objectives

  • strategic approach to VFM and use of resources

  • arrangements to deliver VFM – performance management and governance

  • what has been achieved

  • plans for next year

  • board assurance on the VFM self-assessment

The Corporate

  • overall judgement

  • definition of VFM in context of purpose & objectives

  • corporate objective #1

    • aim

    • arrangements to ensure delivery

    • achievements

    • plans

  • corporate objective #2

    • ditto

  • etc

to be revisited


Good practice from the sector

Good practice from the sector?

Helena** (infographic, varied approach to measuring asset and social return)

GreenSquare* (honest, comprehensive, had a bash at ROI, embedded VFM, bottom-up VFM - GreenState)

Riverside** (honest, SA as improvement & accountability tool inc action plan, outcomes from stakeholder perspective, involved others in process)

Notting Hill* (ROCE by business stream, active asset management, good use of G15 benchmarking and commentary)

* in OFR, ** separate VFM statement

Good Practice caveat:

how consistent is HCA in its approach to assessment?

up the ante - great expectations year 2

smaller HAs – need a proportionate approach


Evidencing measuring vfm performance

A VFM scorecard - for self-assessment & general biz tool?

Evidencing (measuring) VFM performance

Value achievement

Value

Process

VFM scorecard

  • limited set of common metrics

  • emphasis on performance not context

  • but should be considered –v- context

  • comparable evidence base for:

    • credible VFM story

    • understanding business effectiveness

  • complements corporate scorecard (not always metric-based)

Biz health

People

Value creation


Evidencing measuring vfm performance1

Evidencing (measuring) VFM performance

+ local metrics, eg local offer

= credible evidence base to hang narrative on

+ qualitative evidence, eg scrutiny, reviews, awards

to be revisited


What did hca do

Any evidence of getting shirty with smaller HAs?

What did HCA do?

looked at around 240 self-assessments (ie 1000+ stock with March year end)

15 non compliant – 14 downgrades

160 got a partial compliance (naughty) letter threatening potential downgrade if no improvement

why downgraded?

insufficient assurance that there is a strategic approach to VFM

not communicated to stakeholders in a transparent and timely manner (ie missed deadline)

So key issue – the provision of sufficient evidence for HCA to be assured

‘VFM self-assessment is about evidencing the VFM story….’


W hat has hca been saying is good key messages for 2014 15

NB focus on 3 specific requirements

What has HCA been saying is good?: key messages for 2014/15

Good self-assessments transparently permit stakeholders to understand performance against the specific requirements of the standard:

sufficient detail to allow stakeholder to make own assessment

balanced commentary - a reasonable interpretation of results

clear info on ROA*andhow this has been used to inform decisions on the management of the asset base

quantified evidence on cost of delivering specific services*, compared with:

previous years

relevant peer group

& clear links between cost & quality of outcomes

no cherry picking good stuff – consider cost & performance, strengths & weaknesses in context of overall spend

systematic evidence of past VFMsavings and specific, ambitious, measurable targets for future. Links made between savings & gains & achievement of provider’s overall strategy.

Matthew Bailes et al, spring 2014

* NB the principles of Regulatory Framework expect continuous improvement in use of assets and costs. HCA is looking for ‘sufficient evidence’ to enable judgements on this


Poorer self assessments

…..& poorer self-assessments…

..did not


The hca s key messages for 14 15

The HCA’s key messages for 14/15

signpost other key documents in your board report / OFR

no room for complacency. For most what was good enough in 2013/14 won’t be good enough next year. NB raising the bar

..the sector should not underestimate the government’s & regulator’s interest in VFM……

Matthew Bailes, May 2014: ask yourselves

does the self-assessment give the reader enough information to make a judgement on whether your organisation offers VFM in delivering your objectives compared to your peers?

does it give them enough information to judge whether you are doing better or worse than last year?

NB continuous improvement in VFM is about beneficial change in cost &/or performance


What might a vfm self assessment look like the principles

What might a VFM self-assessment look like?: the principles


K ey principles for self assessment

Key principles for self-assessment

include a comprehensive VFM self-assessment in OFR/board report

signpost to even more comprehensive documents if required – make sure these documents are available and accessible in good time

form & content of the self-assessment is based on HA’s social purpose and stakeholder interests

there is no template

suggest narrative backed by evidence (eg data, qualitative info)

no evidence = fairy story

but just killer metrics – fails to tell full story

VFM ultimately a qualitative judgement based on assessment of available evidence


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Key principles for self-assessment

it is a stakeholder document – be clear about who you produce value for:

what do they want and how much have you achieved for them?

is it more or less than last year?

invite challenge

demonstrate board ownership of VFM – allow time for the board to consider, discuss and challenge the self-assessment:

do they understand it?

does it address the requirements of the standard?

is it robust?

sufficient evidence/assurance

any limitations or gaps – if so what and how will it be addressed

does it represent a true & fair VFM story or just a fairy story?


K ey principles for self assessment1

Key principles for self-assessment

Key principles for self-assessment

it should be robust and transparent

comprehensive account of how the association is faring with regards to improving VFM, warts & all , strengths & weaknesses, in the round

evidence-based! - provide sufficient evidence for stakeholders to make their own judgements – commentary should represent a fair and balanced analysis of evidence facilitating judgement

self-assessment is not a PR exercise but an accountability and improvement tool

it should be accessible to stakeholders

infers that report is intelligible and its availability communicated to stakeholders.

data visualisation key


K ey principles for self assessment2

Key principles for self-assessment

Key principles for self-assessment

Content:

consider including a compliance statement - to what extent does the HA comply with the requirements of the standard and what does it plan to do about areas on non/partial compliance?

demonstrate

a strategic approach to VFM including a robust approach to use of resources

the performance management & scrutiny arrangements to achieve strategy (including governance and tenant scrutiny).

This is about demonstrating a grip on VFM via arrangements to ensure its delivery


K ey principles for self assessment3

Key principles for self-assessment

Key principles for self-assessment

Address HCA’s specific requirements:

a) should enable stakeholders to understand the return on assets measured against the organisation’s objectives – provide evidence that you have a grip on asset management - that you:

understand stock condition & associated investment needs

understand maintenance costs

understand demand, the communities & markets you operate in

understand the return in financial, social and environmental terms at an appropriate level of detail: what level? What does the data tell you?

demonstrate that the above understanding informs

intelligent asset management strategy that aims to improve returns

intelligent business decisions, eg hold, invest, dispose, convert, etc

understand the benefit of investment on future rental stream/social outcomes & only invest where the return is clear…..

…consider brief assessment of key asset decisions over year – cost/benefit

flag weaknesses for transparency, remedial action?


K ey principles for self assessment4

Key principles for self-assessment

Key principles for self-assessment

b) set out the absolute and comparative costs of delivering specific servicesand demonstrate you understand service costs, cost drivers and associated outcomes, ie that you have a grip on operational cost and performance.

evidence here includes benchmarking data, business metrics and qualitative info eg: tenant scrutiny, service reviews, accreditation, feedback.

Acuity/HouseMark data key evidence base – compare self over time and against others but avoid gaming

brief commentary on headline unit costs, PIs, other evidence

what can you do about your cost drivers?

what are you doing to contain overheads?

what can you say about the efficiency/effectiveness of operating model?

strengths & weaknesses

explain direction of travel – costs/value up or down


K ey principles for self assessment5

Key principles for self-assessment

Key principles for self-assessment

c) evidence of past and prospective VFM gains

set key gains against overall cost base and in context of mission

quantify the gain financially, socially (performance, satisfaction, # beneficiaries, etc), environmentally

how was it achieved?

own up to any negative impacts, costs etc

what will you use surplus for?

future gains

what will you do?

what is the anticipated financial, social, environmental gains in context of mission – can you quantify these?

are there any costs or diminution in service associated with them?

over-promise, under-deliver is a risk – self-assessment is a record


Dropping the principles into a template

Overall, we meet the requirements of the standard…notable achievements include x. We need to address y...

1. Overall summary statement of VFM performance & compliance with standard

Dropping the principles into a template?

You don’t have to do it like this!

2. Define VFM in context of objectives & stakeholder interests

For us VFM means……

3. Provide assurance about ‘how you do’ VFM

Our arrangements for ensuring VFM are…

to be revisited

4. Evidence-based VFM reporting (warts ‘n’ all) – ‘how we did and what we plan to do’

Narrative that draws on data & qualitative evidence & addresses specific HCA reporting expectations


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Thoughts, observations?


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Lunch


Part 2

Part 2


Recap agenda

Recap & agenda

Part 1: morning

  • Introductions

  • Regulatory context brought up to date

  • Observations & lessons from Year 1

  • What has the HCA been saying about year 2

  • What might a self-assessment look like? – overview

    Part 2: afternoon – 1:30 – 5:00

  • What might a self-assessment look like? – the detail

  • Some thoughts from me

  • Some thoughts from you - looking back and forward

  • Last thoughts


Exercise 1 how was it for you

Exercise 1 – How was it for you?

In small groups, reflect on your organisation’s experience of producing a VFM Self Assessment last year:

What kind of structure and evidence?

What worked well?

Outstanding difficult issues?

What lessons have you learnt?

Write brief flipchart notes

Be prepared to feedback as part of discussion


Stepping through the process

Stepping through the process


Dropping the principles into a template1

Overall, we meet the requirements of the standard…notable achievements include x. We need to address y...

1. Overall summary statement of VFM performance & compliance with standard

Dropping the principles into a template?

You don’t have to do it like this!

2. Define VFM in context of objectives & stakeholder interests

For us VFM means……

3. Provide assurance about ‘how you do’ VFM

Our arrangements for ensuring VFM are…

4. Evidence-based VFM reporting (warts ‘n’ all) – ‘how we did and what we plan to do’

Narrative that draws on data & qualitative evidence & addresses specific HCA reporting expectations


Focus on step 1 compliance summary statement including board assurance

Focus on step 1. Compliance & summary statement, including board assurance

  • high level summary of VFM performance – key strengths and weaknesses, is VFM improving?

  • compliance statement

    • to what extent does the HA comply with the HCA’s VFM requirements?

    • is the Board assured:

      • this is a fair and balanced account of VFM?

      • of the robustness of this self-assessment

        • sufficient evidence/assurance?

        • limitations or gaps?

    • how will non-compliance be addressed?

  • invite feedback & challenge by stakeholders

How we did summary by stakeholder?

Issues? Solutions?


Focus on step 2 what vfm means to us our vfm definition

Focus on step 2. What VFM means to us: our VFM definition

  • assert social mission, vision and objectives - it’s why you exist!

    • unpack key ‘value streams’ (outcomes), ie new homes, great services, community well-being, care & support

  • identify key stakeholders and what they value – your audience & beneficiaries of your value!

  • based on above, assert a short VFM definition - essentially ‘for us VFM is maximising ‘our value’: more homes, better services, more lives improved…….’

  • great opportunity to boldly assert your value proposition


Focus on step 3 arrangements to ensure vfm a strategic approach the means to deliver it

Focus on step 3.Arrangements to ensure VFM – a strategic approach & the means to deliver it

to demonstrate grip on VFM strategically and operationally

set out key principles of VFM strategy - state that it is a considered strategy, eg:

based on fact/previous assessment

has meaningful improvement actions linked to it (pick these up in step 4 when reporting past/future gains!)

corporate fit with key strategies: risk, asset, people, procurement etc.

no VFM strategy ?- consider how the biz strategy drives biz effectiveness/VFM


If you have a vfm strategy this is where it probably fits

If you have a VFM strategy this is where it probably fits?.....

Purpose, objectives…

VFM Self Assessment

Corporate strategy

Financial plan

VFM strategy

Strategic planning

Asset strategy

Procurement strategy

People strategy

Operations

VFM action plan

Service delivery plan


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Focus on step 3.Arrangements to ensure VFM – a strategic approach & the means to deliver it

What can you say about how you ensure the right amount of money is spent on the right things (social biz objectives)?:

  • rigour of business/corporate planning process

  • use of robust business cases - based on evidence/data (and not historical costs) & understanding of benefits

  • quality of debate and challenge


Focus on step 3 arrangements to ensure vfm a strategic approach the means to deliver it1

Focus on step 3.Arrangements to ensure VFM – a strategic approach & the means to deliver it

governance & performance management arrangements associated with planning, delivery and evaluating VFM eg:

VFM roles of board, exec, other staff, tenants, eg

respective roles in accountability & challenge

tenant involvement in VFM: agreeing priorities, shaping services & scrutinising service performance and VFM

assurance and reporting framework for VFM eg

how is VFM reported within the HA?

how is VFM measured? Which tools?

extent VFM is embedded, egperformance management, cost control, procurement practice, etc

strengths & weaknesses of your approach?

Issues? Solutions?


Step 4 how we did what we plan to do

Step 4. How we did & what we plan to do

VFM scorecard/metrics as evidence base to hang story on

+

Assets

Operations

Procurement

Treasury

Surplus & intended use

Pithy commentary on key activity areas supported by evidence

Alternatively take each corporate objective in turn.


Step 4 how we did what we plan to do1

  • Provide evidence that you have a grip on asset management ie that you:

    • understand stock condition & associated investment needs

    • understand maintenance costs

    • understand demand, the communities & markets you operate in

    • understand the return in financial, social and environmental terms at an appropriate level of detail: what level? What does the data tell you?

    • demonstrate that the above understanding informs

      • intelligent asset management strategy that aims to improve returns

      • intelligent business decisions, eg hold, invest, dispose, convert, etc

    • understand the benefit of investment on future rental stream/social outcomes & only invest where the return is clear…..

    • …consider brief assessment of key asset decisions over year – cost/benefit

    • pick up past improvement actions – quantify gains/benefits

    • strengths and weaknesses of current approach to assets

Step 4. How we did & what we plan to do


Step 4 how we did what we plan to do2

  • operations

    • set out the absolute and comparative costs of delivering specific services (use HouseMark VFM dashboard & quadrant /Acuity metrics to compare self over time and against others)

    • other evidence here includes business metrics, local offer data, care indicators and qualitative info eg: tenant scrutiny, service reviews, accreditation, feedback.

    • brief commentary on headline unit costs, PIs, other evidence

      • what can you do about your cost drivers?

      • what are you doing to contain overheads?

      • what can you say about the efficiency/effectiveness of operating model?

      • strengths & weaknesses

      • explain direction of travel – costs/value up or down

    • highlight key VFM initiatives and (quantified) benefits, eg from VFM register, previous VFM action plan, movement in HouseMark/Acuity data

      • how were they achieved?

      • set gains against overall cost base. Own up to any negative impacts, costs etc

    • ROI of commercial activity

Step 4. How we did & what we plan to do


Step 4 vfm achievements

  • c) key procurement gains not already covered at a) or b)

  • d) treasury management

    • brief ref to the cost of capital, debt management strategy and any evidence of savings from active debt management. How does the cost of capital compare?

    • use made of borrowing capacity to achieve development outcomes in context of:

      • board’s agreed approach to risk and future business plans

      • limitations:

        • covenants

        • access to affordable finance

    • NB this is about managing stakeholder expectations as much as reporting VFM

  • e) state surplus & how gains/surpluses will be used to produce more VFM

Step 4. VFM achievements

Issues? Solutions?


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

What I’ve just said as a picture

costs –v- service outcomes, social & economic benefits, environmental benefits

Narrative backed by data

Assets

Operations

It’s all social value!

Procurement

financial benefit -

savings, income, etc

financial benefit -

savings, income, etc

Treasury Management

Surplus

looking ahead – even more social value

Borrowing capacity


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Data sources/evidence base

VFM strategy & action plan

benchmarking/HCA regression analysis

internal scorecard

key asset management decisions – cost/benefit

local offer performance

impact assessments, SROI, etc

Assets

Operations

satisfaction

Procurement

key procurement items – cost/benefit

tenant scrutiny work

accreditation, service review, internal audit, etc

Treasury Management

VFM register

Financial returns

Surplus

Borrowing capacity


Step 4 variation based on c orporate plan

Step 4 variation based on corporate plan

  • corporate objective #1

    • aim

    • achievements

    • plans

  • corporate objective #2

    • ditto

      Caveat - but need to ensure don’t lose sight of regulatory requirements by following the line of thinking in your corporate plan


Step 4 improvement plans for next year

Step 4. Improvement Plans for next year

  • what will you do?

    • pick up weaknesses, improvement actions already identified – your VFM action plan going forward

    • what is the estimated (quantifiable) benefit in financial, social and environmental terms

      • pick up weaknesses mentioned elsewhere

      • any costs or diminution in service associated with them?

Issues? Solutions?


And don t forget to communicate

….and don’t forget to communicate

disseminate

who?

OFR/board report! signpost

timeliness

accessible

find it?

understand it?

language

graphics


Evidencing measuring vfm

evidencing (& measuring) vfm


Evidencing measuring vfm performance2

A VFM scorecard - for self-assessment & general biz tool?

Evidencing (measuring) VFM performance

Value achievement

Value

Process

VFM scorecard

  • limited set of common metrics

  • emphasis on performance not context

  • but should be considered –v- context

  • comparable evidence base for:

    • credible VFM story

    • understanding business effectiveness

  • complements corporate scorecard (not always metric-based)

Biz health

People

Value creation


Evidencing measuring vfm performance3

Evidencing (measuring) VFM performance

+ local metrics, eg local offer

= credible evidence base to hang narrative on

+ qualitative evidence, eg scrutiny, reviews, awards


What kind of metrics

Value

Process

net increase in stock

satisfaction with new home

net promoter/satisfaction with service

satisfaction with repairs

satisfaction with neighbourhood

% tenants who think rent/service charge is good VFM

#/% beneficiaries – employment?

#/% beneficiaries - training & education?

#/%/£ beneficiaries – income inclusion?

  • % rent collected

  • % service charge collected

  • average re-let time (all voids)

  • calls handled at first contact

  • or another key customer process PI

  • repairs at first visit/equivalent

What kind of metrics?

  • growth turnover

  • net increase in stock

  • operating margin

  • operating costs as % turnover

  • management, maintenance, development overheads

  • non-social housing turnover

  • % spend non-social

  • % margin non-social

  • arrears as %

  • void loss as %

  • bad debt as %

  • effective interest rate

  • leverage

  • satisfaction or net promoter with employer?

  • or staff engagement?

  • sickness absence

  • staff turnover

  • ratio top earner to bottom or median earner

  • measures on say board effectiveness or staff development?

Biz health

People


Building a picture of value with metrics

Social mission

Building a picture of value with metrics

Kind of value

identify kind of value

new homes (V1)

great tenant services (V2)

care & support (V3)

added value (V4)

commercial return?

map existing metrics

fill gaps

metrics

other forms of evaluation

reviews, awards etc

tenant scrutiny

impact studies

Metrics need to map to value

Kind of objectives

Kind of measures


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Telling the story: where the value lies

Your key Care & support PIs (V3) could be included here too eg QAF.

Customer

Satisfaction with quality of new home* V1

Satisfaction with overall services provided* V2

Satisfaction with maintenance* V2

% jobs right first time V2

Net promoter* V2

Fuel poverty PIs?

Complement metrics with key reviews, awards, scrutiny, impact studies, social accounts?

Average SAP rating* V2/4

Satisfaction neighbourhood * V2/4

  • # found employment V4

  • # apprenticeships created V4

  • # completing training course V4

  • # provided financial advice V4

  • satisfaction with intervention V4

  • £x invested of own money

  • £y leveraged

  • NB NHF audit categories as basis for typology

  • Key local promise PIs (in accordance with consumer regulation) V2

  • Arguably, surplus, leverage

  • Net increase in stockV1

  • Regulatory rating

Community & LA

Regulator & government


Developing a vfm scorecard toolkit

Developing a VFM scorecard toolkit

Metrics in blue collected by Acuity

Don’t panic!!!!!

I’m not suggesting you use all of the following metrics – simply pick the best that work for you depending on:

a) the nature of your business and the value you produce

b) how much effort you want to put in


Business health source accounts acuity housemark

Business healthsource: accounts, Acuity, HouseMark

  • business growth

    • growth in turnover

    • growth in assets

    • net increase in stock

    • new biz income

  • debt servicing & use of assets

    • net leverage/gearing

    • debt per unit

    • EBITDA MRI interest cover

    • return on assets

  • operating efficiency & profitability

    • margin eg

      • operating margin

      • EBITDA MRI margin

    • operating cost per unit

      • management cost

      • maintenance cost

    • income protection

      • arrears as % rent due

      • FTA as % rent due

      • void loss as % rent due

      • bad debt/write off

    • effective interest rate

Clearly lots more to choose from but what do you think are the key metrics?


People source local pis acuity housemark

Peoplesource: local PIs, Acuity, HouseMark

  • average days lost to sickness

  • staff turnover

  • staff/board satisfaction

  • could consider:

    • customer service accreditation

    • local measures associated with training and developing staff

Clearly lots more to choose from but what do you think are the key metrics?


Business processes source local pis acuity housemark

Business processessource: local PIs, Acuity, HouseMark

  • % rent collected

  • % service charge collected

  • % repairs completed in target time

  • % units vacant & available

  • % units vacant & unavailable

  • average re-let time

  • tenancy turnover

  • other key processes where effectiveness matters, eggas safety, ASB case handling, budget achievement?

Clearly lots more to choose from but what do you think are the key metrics?


Vfm self assessment workshop this presentation provides a vfm toolkit with a self assessment template

Customer

Valuesource: local PIs, Acuity, HouseMark

Satisfaction with quality of new home* V1

% homes failing Decent Homes Standard* V2

Average time to complete a repair* (days) V2

Satisfaction with maintenance* V2

Satisfaction with overall services provided* V2

% jobs right first time V2

Net promoter* V2

% tenants who think rent/service charge is good VFM V2

Satisfaction with outcome of complaint V2

% satisfied with complaint handling V2

% satisfied staff were able to deal with their problem V2

Your key Care & support PIs (v3) could be included here too eg QAF.

Complement metrics with reference to any key impact studies

Average SAP rating* V2/4

Satisfaction outcome of ASB case* handling V2/4

Percentage of tenants who are satisfied that views are listened to and acted upon* (co-reg) V2

Satisfaction with neighbourhood as a place to live* V2/4

  • Typically the most frequently used measures are # beneficiaries of a given intervention, eg

  • # tenants provided with financial advice

  • # tenants helped into sustainable work

  • # tenants completing vocational training course

  • # tenants completing skills training

  • # apprenticeships created

  • # kids attending diversionary activity

  • Can also include satisfaction with intervention

  • Also:

  • £x invested of own money

  • £y leveraged

  • Include any key local promise PIs in accordance with consumer regulation V2

  • Net increase in stockV1

Community & LA

Regulator & government


Exercise 2 what should it look like

Exercise 2: What should it look like?

In the same groups, based on what you’ve heard and the suggested templates, what should it look like?:

What kind of structure?

What kind of evidence?

How would you improve it to make it your own?

Remaining difficult issues?

Write brief flipchart notes

Be prepared to feedback as part of discussion


Last thoughts issues

Last thoughts, issues

  • have you got the tools and information you need to take this forward?

  • anything not dealt with?

  • consider a buddy system for peer challenging your SAs

  • Acuity support also available

    Steve Smedley 07814 424426

    [email protected]


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