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Embedding VFM If VFM is now really about business effectiveness, what are the kind of behaviours, processes & practices you need to embed it in your organisation? . Achieving VFM: a model Let’s start with a model* of how you might achieve VFM…. * HouseMark work in progress.
Embedding VFMIf VFM is now really about business effectiveness, what are the kind of behaviours, processes & practices you need to embed it in your organisation?
Achieving VFM: a modelLet’s start with a model* of how you might achieve VFM…. *HouseMark work in progress
strategic evaluation Evaluate success & review business strategy Business strategy & use of resources strategic analysis & choices Achieving VFM and business objectives Effectiveness Economy Efficiency implementation
Purpose – basis for an organisational definition of VFM The board should define VFM based on: • clear understanding of what they are in business for – purpose & objectives - commercial head, social heart • reconciliation of the value perspective of different stakeholders, including customers • reconciliation of competing priorities across activities • context such as PEST, client group, geography • The provider’s VFM definition is likely to amount to the achievement of its objectives in the most cost effective way possible
Right activities • Engage in the right things - business activities - to achieve objectives. • The board’s strategic direction drives: • the right mix of activities or products, eg social rents, affordable, supported, care, regeneration, tenant services • the right allocation of resources between these activities - reconciled across development, stock improvement, front-line services, etc
Right assets • Invest in inputs – housing assets & delivery model - to achieve objectives. This about economy: • invest in the right physical assets of the right standard in the right places for the right cost • coherent asset management - understand return on assets and the financial, social, environmental benefit of any investment • invest in the right delivery model for the right cost • about service delivery and back office functions • about investment in people, offices and equipment…. • … and the procurement of goods/ services from others …. • …including consideration of alternative delivery models… • ..but you might have services to sell too….
Right delivery • The right delivery practices to achieve objectives - adopting efficient and effective operational practices - doing things right: • efficient operations: • smart business processes • people (workforce management) – right skills, staffing levels, HR practices, sickness management, etc • effectivebusiness practices: • performance management • risk management • financial management & cost control • income management • ability to join things up internally & externally (teamwork & partnerships)
Right outcome • if previous steps undertaken correctly the desired outcomesshould be achieved… not by magic, by management • evaluate effectiveness - have the financial, social, environmental and service quality returns been achieved? … including efficiencies/surpluses
…. the model assumes a wider ‘take’ on VFM than previously. What are the behaviours, processes & practices that together embed ‘total’ VFM? To help marshal your thinking, a cultural web….