Because you’re worth it! VALUE FOR MONEY

1. Because you’re worth it!VALUE FOR MONEY David Lloyd

2. Procuring/tendering • Office buildings & supplies • Stationary • Travel – mileage/vans etc • Staff training • IT Contracts • Insurance • Loans/bank charges • Consultants • Marketing/publicity • Salaries & benefits What services do landlords provide? Repairs – day-to-day/reactive Improvements/cyclical maintenance Customer service Estate management Welfare Benefits/Money advice Anti-social behaviour Tenant Participation Service charge items Community Development projects Gardening/cleaning communal areas Money/benefits advice Information – e.g. Newsletters/leaflets ‘out of hours’ services Tenant Participation Supporting People ‘non housing’ initiatives

3. Drivers for VfM in social housing Austere budgets Welfare reforms – rental income Increased demand Affordable rents Calls for transparency and accountability Regulation framework Tenant Scrutiny ‘customer’ expectations New technology Competition Landlords doing more ‘non housing’ initiatives

4. What do we mean by Value for Money (VfM)?

5. VfM = do the right things + do things right. The benefit from the goods and services an organisation both acquires and provides, within the resources available to it. What an individual pays for something and the value that individual derives from it. The optimal use of resources to achieve the intended outcomes.

6. The Three ‘E’s Effectiveness = achieving what you set out to achieve (outcomes) Economy = careful use of costs Efficiency = carrying out activities/processes in a timely, simple manner with minimum waste.

7. Example – boiler replacement • programme Effectiveness = customer living in a warm, quality, well maintained and low energy home. (outcome!) Economy = the cost of supplying, installing and maintaining - per boiler Efficiency = the number of boilers fitted satisfactorily within a time period

8. What is ‘social value’ ?

9. What do we mean by ‘Social Value’? “Social value” is a way of thinking about how scarce resources are allocated and used. It involves looking beyond the price of each individual contract and looking at what the collective benefit to a community is when a public body chooses to award a contract. Social value asks the question: ‘If £1 is spent on the delivery of services, can that same £1 be used, to also produce a wider benefit to the community? “a concept which seeks to maximise the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves”.

10. Example – boiler replacement • programme Effectiveness = customer living in a warm, quality, well maintained and low energy home. (outcome!) Economy = the cost of supplying, installing and maintenance - per boiler Efficiency = the number of boilers fitted satisfactorily within a time period Social Value = contract awarded to local contractor Additional apprenticeships/jobs created.

11. What is ‘environmental value’ ?

12. Example – boiler replacement • programme Effectiveness = customer living in a warm, quality, well maintained and low energy home. (outcome!) Economy = the cost of supplying, installing and maintenance - per boiler. Efficiency = the number of boilers fitted satisfactorily within a time period. Social Value = contract awarded to local contractor .Additional apprenticeships/jobs created. Environmental value = old boilers are recycled, new boilers manufactured in an eco friendly way and are most fuel efficient.

13. Tenants shaping Value for Money servicesSmall Group Exercise What do tenants ‘value’? What matters most in terms of the service they receive?

14. Role of tenant Tenants should: be involved in prioritising resource allocation, shaping services, identifying areas for improvement and the redirection of savings make informed choices between costed service options within available resources what services are developed and to what standard, and (by implication) what does not get done work with social landlords to develop performance and success measures

15. Role of tenant Tenants should: monitor performance, using a range of performance and benchmarking data, and hold the social landlord to account be involved in and sign-off any VFM assessments help to shape any specification for services that are being procured externally

16. Involving tenants in Value for Money (VfM) Shaping VfM services Assessing/monitoring/scrutinising services Making decisions about VfM

17. Involving tenants in Value for Money (VfM) VfM monitoring group Tenant suggestion scheme/email – Dear Prudence (Connect Housing) Every day points of engagement Using Tenant Profiling information Monitoring trends in complaints/compliments from Tenants Participatory Budgeting exercises Tendering/Procurement groups – local/corporate Project task and finish groups

18. Involving tenants in Value for Money (VfM)cont……. Tenant Inspectors ‘Customer journey mapping’ sessions Mystery Shoppers Scrutiny Groups Board Members Engaging tenants in where to reinvest savings Feeding back to tenants

19. Involving tenants in Value for Money (VfM)Conditions needed to make it work…... Senior management/Board support Value and respect tenant views Staff have skills and confidence to involve tenants VfM related performance information available and easily understood Reporting structures in place Tenants have interest in the issue/service Enough knowledge/information Tenants have confidence and skills to take part. Feedback on what has been achieved

20. Conditions needed to make it work…... Tenants may need to understand..... Performance management arrangements Baseline information Benchmarking information Procurement and contract management Partnerships and shared services Business Processes Good practice Equality requirements/Tenant Profiling Regulatory and legal requirements