Group Business Plan

Transcription

1 Group Business Plan

2 Foreword Sanctuary Group s enduring purpose Our mission is to remain a market leader in the provision of high quality housing, nursing and residential care, and community services for people in need. Through careful stewardship of resources, we will maximise the benefits of our ethically-based operations providing good quality and value to our customers and stakeholders. A new reality The bigger picture While not explicit in the Chancellor s budget, there is an impatience from the Government that housing organisations are not responding quickly enough to its wish to see more people achieve their aspirations for home ownership and to address the quantitative shortfall of housing nationally. Therefore, in addition to responding to the financial challenges of the budget, Sanctuary intends to escalate its development activity and support those who aspire to own their own home. Having built over 3,000 homes in 2014/2015 alone, Sanctuary is already the largest developer in the sector. The plan also embraces the announced introduction of the right to buy and replacement of sold properties by new affordable homes. Our pledge Our prioritised targets to sustain a successful organisation include: providing cost-effective services - we will strive to be market leading in the provision of efficient services with reduced management costs whilst maintaining or improving customer satisfaction levels. building new homes - we intend to develop 24,000 new homes over the next 10 years, some of these will be for sale and others, by working closely with local authorities, will meet the need for additional rented homes. achieving high quality standards - we will make sure operations across the Group s diverse range of activities meet high service standard expectations of customers and regulators. On 8 July 2015 the Chancellor, George Osborne, delivered the Government s post-election budget. While many of the reforms to welfare were anticipated, the increase in the minimum wage and the reduction in regulated residential social rent were not. Both of these have had a dramatic effect on the housing sector. As a consequence, Sanctuary Group, like all registered providers, has recast its business plan to take account of the altered landscape and make sure Sanctuary continues to deliver its objectives. Retaining our mission and identity Need to respond Sanctuary s existing programme of efficiency and service improvement means that we are well placed to respond to the demands of the new world. Our significant investment in an information systems infrastructure provides a platform that will enable us to realise planned efficiencies to support new operating models to increase customer satisfaction and reduce costs. In addition, Sanctuary had already taken the view that, as an ethical employer, it should embrace the living wage and had modelled a strategy to support the costs associated with this. While the Chancellor s announcement will require Sanctuary to accelerate its efficiency programme, Sanctuary s prudent planning has enabled the Group to quickly recalibrate its business plan and project a clear path ahead. This plan builds on Sanctuary s financial strengths, maintaining margins and protecting frontline services. Sanctuary has a number of different stakeholders to whom it needs to deliver value. This three-year plan takes that as its focus while remaining true to Sanctuary s charitable purpose of supporting those in need. David Bennett Group Chief Executive 2 Sanctuary Group Group Business Plan

3 Executive summary Group profile Service value Progress tracked in our: Annual Report to Tenants Value for Money Statement Developing improved and more efficient ways of working Investing in technology that supports business transformation Our mission: To remain a market leader in the provision of high quality housing, nursing and residential care, and community services Adding value in terms of: Economic value Progress tracked in our: Annual accounts Value for Money Statement We will deliver value by: Building homes for people to own and for those in need Upholding uncompromisingly high standards of governance and risk management Social and environmental value Progress tracked in our: Social Value Report Listening to our customers and investing in our communities Supporting struggling businesses and assets Balance Sheet summary Movement Housing Assets 4,843 5,004 5,123 5, Loan Capital 2,516 2,558 2,583 2, Grant 1,747 1,784 1,796 1, Reserves Turnover Movement Housing - England * Housing - Scotland Sanctuary Care - Older Persons Sanctuary Home Care & Extra Care Supported Living Sanctuary Students Sanctuary Maintenance Corporate Services Total * includes sales Units Movement Housing - England 70,276 71,056 70,763 71, Housing - Scotland 8,361 8,569 8,776 9, Sanctuary Care - Older Persons 3,210 3,614 3,873 3, Sanctuary Extra Care 1,318 1,592 1,592 1, Supported Living 4,378 4,378 4,378 4,378 - Sanctuary Students 11,357 11,357 11,357 11,357 - Sanctuary Maintenance Corporate Services Total 98, , , ,387 2,487 Asset and Development commitment (England and Scotland) And as a result we will track the value we add to our stakeholders including: Investors Regulators Government/ economy Customers Society and environment New build units Affordable/Social Rent 5,000 Market Rent 2,950 Care (Bedrooms) 450 Affordable Home Ownership 12,000 Outright Sale 3,100 Extra Care for Sale 500 Total 24,000 2,000 Anticipated Right to Buy sales 4 Sanctuary Group Group Business Plan

4 Our operations One of the UK s leading providers of housing, care and community services, Sanctuary Group employs around 11,000 people and manages more than 100,000 units of accommodation throughout England and Scotland, including general rented, retirement living, supported housing, student and key worker accommodation and care homes. Sanctuary also provides a range of other services including maintenance, care and telecare. 100,000 Units managed in England and Scotland 3,154 New homes completed in 2014/2015 Affordable housing lies at the heart of our business. We manage general rented, sheltered and home ownership accommodation across England, reflecting the needs and aspirations of our customers and delivering services at a competitive cost. We also work with NHS Trusts to provide cost-effective management and accommodation services to health workers. In addition we manage market rent, intermediate rent, mortgage rescue and a diverse portfolio of commercial properties. We provide a range of high quality affordable homes across Scotland, with large concentrations in Glasgow, Cumbernauld, Dundee and Aberdeenshire. We have forged strong relationships with our residents and business partners to create thriving communities where people are proud to live. It is anticipated that during the life cycle of this business plan, these three operations will merge into one to give Scotland a clearer voice within the Group. Serving thousands of people every year, Sanctuary Supported Living delivers support and housing to a wide range of clients. Many of the people who benefit from our services are young, homeless, or individuals with disabilities or mental health needs. We provide somewhere safe for people to live as well as care and support services to improve the quality of their lives, helping them move towards or maintain independent living. Our extra care schemes provide older people with stylish apartments and a framework of care and support options to suit their changing needs. Sanctuary Students manages accommodation for thousands of students across England and Scotland. We work with universities to provide cost-effective facilities management and associated services, as well as providing specifically designed and purpose built accommodation direct to students across major cities in the UK. Our professional staff are on-site to assist students and ensure our properties remain safe and secure, clean and well-maintained, giving students the best environment in which to live and study. We provide in-house repairs and maintenance services across an extensive portfolio of properties owned or managed by the Group. In addition we also offer a wide range of flexible property maintenance and estate services to external customers. Our multi-skilled workforce is not only equipped to carry out a vast range of property repairs, they can also undertake whole house refurbishments and major construction work. Sanctuary Care is a leading provider of care options for older people. With over 60 welcoming homes operated by highly trained staff, we are committed to helping people choose what s right for them, providing a secure, dignified and fulfilling life. Our well-equipped care homes provide a range of long and short-term care and support, including residential, nursing, respite, end-of-life, and specialist dementia care. We provide support and home care services to help people remain independent in the privacy of their own homes. Our wide range of services are tailored to meet individual needs and are delivered by dedicated, highly-trained carers who pride themselves on being punctual and flexible. Sanctuary365 provides telecare support packages for older and vulnerable people, including those who may have physical or mental health disabilities. Platinum accredited by the Telecare Services Association, our emergency response service is accessible 24 hours a day, every day of the year. 6 Sanctuary Group Group Business Plan

5 Our plan for the next three years The Group has a well-earned reputation as a financially robust organisation. As a consequence of our careful financial management, public investment has been protected and we have been able to create sufficient capacity to subsidise the delivery of social housing, homes for those aspiring to own and be an important benefactor for the communities we serve. The Group believes that value can be defined, measured and compared against three headings. Service value: This relates directly to our Value for Money Statement and Annual Report to Tenants. Our intention over the lifetime of the plan is to deliver higher quality services at lower cost. This plan will reinforce that reputation by: maintaining and improving key ratios; proactively managing a range of risks from welfare reform through to pension liabilities; creating additional capacity from within the organisation; and ensuring access to competitively priced credit. Sanctuary s reputation and track record in times of change and uncertainty is also highly valued. Our stakeholders recognise our ability to take on struggling businesses and assets, and turn them around to provide residents with security and improved services. Capabilities like these represent real value, not just for our customers and regulators, but wider communities and the industry at large. This plan has the creation of value at its core. The Group is unusual when compared to most organisations in that it has no equity-owning shareholders and for a group of our customers there is no direct link between the consumption of services and the price paid. In these circumstances value takes on a different meaning, requiring careful definition and clear internal discipline. This internal discipline requires a rigour which this business plan seeks to reinforce. Economic value: To ensure public money and assets are protected for the public good and that the Group continues to contribute meaningfully to the economy and the alleviation of poverty. Social and environmental value: As outlined in our Social Value Report, we aim to both improve the quality of life for people living in our communities and play an active role as a responsible corporate citizen. With our size comes considerable responsibility, not just to protect public investment but to play an active role in delivering homes, alleviating need and creating capacity to invest in our assets, people and communities. Such investment has a multiplier effect beyond that initial investment. Sustained investment in homes and assets brings additional benefits such as increased energy efficiency, lower fuel bills for tenants, and improved facilities that allow people to remain in their own homes if and when their circumstances change. 8 Sanctuary Group Group Business Plan

6 We will deliver value by: Developing improved and more efficient ways of working To improve efficiency and drive up standards the Group will: Moreover, OneSanctuary is a long-term investment in a modern technology which will support our staff prioritising frontline activities and provide our customers with new channels to interact with the Group, including the use of new self-service and other digital features. Key customer interactions will be made available via a range of media, making Sanctuary more accessible to its customers. In parallel with OneSanctuary we will continue to invest in our award-winning data centre, associated infrastructure and our core Microsoft platform to ensure we have capacity for growth and are able to improve the way people interact with technology and collaborate with each other. This ranges from wider use of smartphone, touch and pen-driven devices to the appropriate use of smart monitoring. use ongoing customer insight and performance measurement to refine and influence changes to our services. This will see greater first contact resolution, a more responsive frontline and improved customer satisfaction. extend customer access to housing services to provide a 24 hour, seven days a week service. improve the Group s procurement of materials and contractors to ensure we provide even greater value for money and secure added value. use modern methods of construction where it is viable to do so. develop the Group s landlord services further, utilising continued benefits of the Shared Service Centre being fully integrated with the local operations. increase and develop the in-house delivery of responsive maintenance services, planned improvements and cyclical maintenance, to both reduce costs and maintain satisfaction as set out in our Maintenance Strategy. refocus Supported Living to create a more targeted operation providing contemporary services at competitive cost. develop an integrated operation in Scotland which takes full advantage of the economies of scale it now enjoys. fully utilise the benefits, efficiencies and assurance provided by platinum accredited Sanctuary365 (the Group s telecare operation) and develop a further strategy for its continued expansion. complete the process of rationalising the Student operation to create a sustainable and profitable business. The Group believes that its technology delivers value in three main ways: Information Providing systems that enable staff to easily and accurately record business events and developing tools we use to display information that supports better decision making. Collaboration Using technology to help people (particularly our customers) and organisations communicate and exchange information more effectively. This includes traditional channels such as telephone and but increasingly important are automated and self-service channels and social media platforms. Automation Applying technology to remove unnecessary manual intervention from processes to reduce cost and improve outcomes. In this respect technology will assist the Group develop new, more efficient operating models. Investing in technology that supports business transformation The Group has a track record of supporting the growth and diversity of its operations with strong investment in technology. The current SAP implementation is its biggest investment to date which, coupled with complementary investment in its award-winning data centre and core Microsoft platform, will create the technology foundation for the next 10 years of Group development. OneSanctuary is a programme of work to replace our main business applications with an enterprisewide SAP solution. The Finance, Procurement and Human Resources elements of OneSanctuary were delivered in the first quarter of 2015 with the Customer Interaction, Housing, Maintenance and Asset Management components due during Future phases will reach further into our Student, Care and Supported Living operations, with pilots of care planning solutions already underway. OneSanctuary provides significant capacity for growth, a consistency of user experience, and the opportunity to standardise and simplify operating models. This, in turn, will provide greater unity and integrity in our data records. Technology ultimately provides little value to us if people are not able to use it or it is not easy to access. We will: continue to provide responsive and professional firstline user support via our Support Desk. consider the diverse needs of staff and customers in the design of new applications and the technologies that support them. continue to provide award-winning infrastructure that delivers highly reliable, available and secure information technology systems with the lowest power consumption possible. provide mobile devices that support people in the ways that they wish to work and enable staff to invest more time in frontline activities. develop systems that are appealing, intuitive and can be used on a range of devices appropriate to staff and customers. 10 Sanctuary Group Group Business Plan

7 Building homes for people to own and for those in need Listening to our customers and investing in our communities Sanctuary is the biggest developer of new homes in the sector. House building is a major contributor to the UK s economy, providing a range of jobs, broad opportunities and new investment in our local communities. By spending 750 million over the last four years on new housing in these local communities, we have generated employment and supported 755 apprenticeships and training opportunities, giving many individuals and households the basis for a career in construction. Sanctuary Group is managing some of the largest regeneration programmes in the UK, including the delivery of 400 new homes in both Glasgow and Cumbernauld. We have also expanded our development expertise, delivering our first modular build scheme in Barnet, utilising pod technology in some of our extra care schemes and using our in-house construction teams in Chester. As well as delivering jobs, training and apprenticeships, and expanding our development expertise, Sanctuary Group has been working tirelessly to develop the quality of our homes for our residents. Home ownership is at its lowest level in modern history, and Sanctuary is committed to helping residents to fulfill their ambitions of owning their own home. Sanctuary has recast its 10 year plan to build 12,000 low cost home ownership properties while enabling 2,000 to buy their own home, as well as developing 3,600 homes for outright sale. Separately, Sanctuary will continue to provide new rented homes including an estimated 2,000 to replace properties sold under the Right to Buy, 2,950 for market rent and 3,450 for affordable rent as set out in our Development Strategy. Upholding uncompromisingly high standards of governance and risk management Periods of significant change test the quality of any organisation s governance. Sanctuary will maintain the highest standards by: ensuring internal controls are embedded and the Group s risk management processes are effective and appropriate. ensuring the Group s corporate structure remains fit for purpose. ensuring assurance reviews remain comprehensive and robust. maintaining constructive working relations with relevant regulators. ensuring that the Group Board reviews its own performance and skills to fully discharge its obligations. ensuring appropriate succession plans are in place for the Board to reflect the right balance between the need for continuity and fresh perspectives. reviewing the constitutional structure of Scottish operations to provide greater efficiency and local scrutiny. undertaking periodic governance reviews in line with best practice. reviewing the long-term vision for Rochford Housing Association. As well as changing political and economic challenges, the demographics and expectations of our customers are changing. We are responding by: ensuring access to services remains appropriate, contemporary and fair. developing ways to encourage easy to use self-servicing for customers that choose this method of contact. ensuring standards of resident scrutiny remain robust and effective. responding to the social impacts of welfare reform by educating and providing appropriate support to minimise risk to customers well-being. responding to the Anti-Social Behaviour, Crime and Policing Act 2014 by reviewing our approach to community safety and ensuring that frontline staff are trained and willing to help. refining and delivering a fit for purpose and sustainable Retirement Living service. reviewing vulnerable funding streams (including Supporting People) by actively engaging with commissioners to identify alternative solutions. 24,000 Build homes over 10 years continually reviewing what, if any, new complementary services and products we wish to develop. helping tackle worklessness and promoting access to employment particularly for vulnerable tenants and service users. aligning the Group s community investment resources more effectively to support a wider group of vulnerable customers. using development and reinvestment programmes to leverage additional community investment into neighbourhoods from our contractors. maintaining channels for staff to contribute directly through initiatives such as the Employee Volunteering programme. reducing the Group s carbon footprint by continued use of renewable energy services, technological innovations, improved working practices and investment in buildings. continuing to directly support community initiatives via our community investment fund. Supporting struggling businesses and assets Sanctuary has led the sector in supporting and adding value to struggling and successful organisations, having taken 27 organisations into the Group during its lifetime. We will continue to offer such opportunities by: retaining and improving the Group s financial capacity. responding to opportunities from associations and care home providers seeking to transfer homes. ensuring new acquisitions quickly adopt standardised operating models of service. focusing internal investment on protecting and enhancing income streams and other non-financial benefits from existing stock portfolios as set out in our Asset Strategy. 12 Sanctuary Group Group Business Plan

8 Governance and executive management Sanctuary is governed by a Group Board overseeing all activities undertaken by the organisation and its subsidiaries. The Group Board s overall purpose is to lead the organisation within a framework of sound governance, continuous improvement and with prudent and effective control, which enables risks to be properly assessed and managed. The Group Board is specifically responsible for: setting the Group s mission and priorities. setting key objectives for the Group, supported by the strategies and priorities that will enable those objectives to be met. reviewing the performance of the Group against its business plan, the performance of its peers and its plans for continuous improvement. ensuring that obligations to stakeholders are understood and met. supporting the executive directors in the management of the business, while monitoring their conduct and scrutinising their performance in delivering agreed targets and objectives. The Group Board comprises: up to seven non-executive board members elected by shareholders; the Group Chief Executive; and up to three co-opted members appointed by the Group Board. Non-executive board member candidates for election to the Group Board are assessed against agreed criteria and supported for election by a Nominations Committee made up of non-executive members. In giving its views on candidates, the Nominations Committee is mindful of regulatory requirements and the need to ensure that the governing body has a wide range of skills, experience and sufficient diversity to be able reviewing the Group s use of public funds and ensuring it maintains sound financial management of these and other resources. championing value for money and providing a statement in accordance with the regulatory framework. approving the business plan, budget, rent policy and, prior to publication, the final accounts. ensuring the Board and its committees have the capacity, commitment and experience to control the Group. to maintain effective control of a multi-activity organisation. The Group Board delegates responsibility for overseeing audit matters to the Group Audit and Risk Committee, while the Group Housing Committee is responsible for reviewing affordable housing performance indicators and policy for the Group s activity as a landlord in relation to all social housing, including general needs, supported, retirement and extra care services. The Remuneration Committee meets to determine the remuneration of the executive directors, and the Succession Planning Committee plans for and oversees changes in the senior executives. The Group Board delegates day-to-day management of activities to the Group Chief Executive, who is responsible for ensuring that the organisation has appropriate arrangements in place to meet the Group s objectives and targets, and that those arrangements reflect the complex needs of the business, including financial performance, capital investment, compliance, growth and business planning. To this end, we have an Executive Committee, chaired by the Group Chief Executive, which considers and approves strategic matters affecting Sanctuary Group. Consultation and review groups To help the Group continuously improve and to make communications better within the organisation there are a number of consultation and review groups. The main ones are: National Staff Council National Staff Council is our main channel of communication and consultation between staff and management. Through elected representatives we provide a formal yet open structure to facilitate this process for all staff within the organisation. Scrutiny Panels Resident scrutiny plays an integral role in helping the Group deliver its co-regulatory requirements. Residents monitor the delivery of Group service standards (local offers) and, by scrutinising services, residents play an important role in helping the Group to achieve a high standard of performance. We provide support and training for residents so that they know how to examine performance information, provide an effective challenge, understand the way we are regulated and financed, and provide a residents perspective on services received. Find out more... To view further details about our Group Board members, please visit: Resident scrutiny operates on a national and regional level. We have a National Resident Scrutiny Panel which focuses on Group-wide services at a strategic level and six Local Area Resident Scrutiny Panels which look at how we deliver our services on the ground. Effective scrutiny is reliant on partnership working, through staff understanding residents aspirations and concerns and residents being a Critical Friend to Sanctuary. Equality and Diversity Working Group The Equality and Diversity Working Group advocates and promotes diversity issues and related best practice across our organisation. Members of the group raise awareness and monitor activity, highlight issues being discussed and act as conduits for the exchange of views, ideas and best practice. 14 Sanctuary Group Group Business Plan

9 If you would like this publication in an alternative format or language, please telephone or Sanctuary Group Sanctuary House Chamber Court Castle Street Worcester WR1 3ZQ Tel: Fax: sanctuary-group +sanctuarygroup Sanctuary Group is a trading name of Sanctuary Housing Association, an exempt charity Registered office: Chamber Court, Castle Street, Worcester WR1 3ZQ Registered as a provider of social housing with the Homes and Communities Agency No. L0247 Registered Society No R Published: November 2015