Value for Money Strategy 2014 (REVIEWED APRIL 2015)

Transcription

1 Value for Money Strategy 2014 (REVIEWED APRIL 2015)

2 Table of contents Page No 1. Introduction 3 2. What Value for Money (VfM) Means to Symphony 3 3. Our Strategy 3-7 Appendix 1 Symphony s VfM Golden Thread 8 Appendix 2 Regulatory requirements of VfM Self-Assessment 9 2

3 1. Introduction 1.1 Symphony Housing Group including all members organisations (the Group), is committed to providing services and managing our assets in ways that achieve our corporate priority of sustainable financial strength whilst improving efficiency. Against an increasingly difficult financial and economic backdrop there is a greater emphasis on changing the way we work to deliver better services and improve Value for Money (VfM). 1.2 The VfM standard now forms part of the Regulatory Framework within which we operate. Delivery of this strategy and the related annual self-assessment will make an effective contribution to meeting the requirements of the Regulator. 2. What VFM means to the Group 2.1 As a Group we have adopted the Regulator standard of VfM to mean: Making the most efficient use of our assets and resources to deliver high quality and innovative services that successfully meet customer needs and expectations at lowest possible cost 3. Our Strategy 3.1 Aims and Objectives The Group has developed a VfM Strategy based around the aims and objectives listed below, all Group members have adopted the strategy in their own approach to maximising value for money for customers and to achieve a robust VfM Self-Assessment for stakeholders. 3.2 To achieve a high quality service at the best possible price by; Setting budgets and business plans which include efficiency targets and improvements to services based on the action plans agreed by Board (see below) Rigorous tender processes, which challenge and scrutinise services offered Staff training to ensure they understand how to challenge and monitor the organisation s costs, embedding the thought process of treating the organisation s money as their own would they expect to pay that, has the work been completed to a high enough standard, is it value for money? Exploiting the advantages and benefit from of the Group structure including securing economies of scale where ever possible Enabling ongoing, meaningful communication with Group customers and other stakeholders through various means to ensure they are satisfied with the quality of service received Implementing in-depth and timely monitoring of service quality using key performance indicators (KPIs) and other data Demonstrating a clear understanding of our stock such as type, size, areas etc. to ensure informed decisions focusing on development, improvements, disposals are made Key KPIs and financial performance are benchmarked against similar size organisations to ensure we are competing at similar/improved levels 3

4 3.3 To ensure that VfM activity supports the Group s values and the delivery of key priorities by; Having an aligned VfM strategy which supports and reflects our corporate priorities and strategic themes as outlined in Symphony s Corporate Plan. Whilst the achievement of each priority and theme will have an element which contributes to VfM, our key corporate priority in respect of VfM is to; Sustain financial strength and improve efficiency Symphony understands that VfM is achieved by optimising the balance between: Economy Spending less. The price paid for what goes into providing a service. It s about delivering services at optimum cost, through minimising the cost of resources. Efficiency Spending well. A measure of productivity and performance Effectiveness Spending wisely. A measure of the impact that has been achieved, which can either be quantitative or qualitative Through adherence to the principle of VfM and rigorous business planning and monitoring, we ensure that sustainable financial strength will continue to be achieved. 3.4 To provide a corporate focus for all staff for the achievement of VfM by; Ensuring that VfM is integral to the way in which our business operates. This is reflected in the values of the organisation but particularly through the specific value of Responsibility. We aim to target and invest our resources efficiently and responsibly for the well-being of our customers, our communities and the environment. We will continue to embed the ethos of VfM within the organisation in a number of ways, such as: Wise Spending and Golden Thread Campaigns the aim of the campaigns is to raise awareness of the importance of VfM to our staff, contractors, tenants and other stakeholders. To provide opportunities within our organisation for generating new ideas and initiatives to achieve successful VfM outcomes. (See Appendix 1 for the Group s VfM Golden Thread) Specific VfM objectives aligned to the business plan which are developed and cascaded through member organisations, Directorates, teams and employees. Performance against these objectives is monitored on a regular basis ensuring that VfM remains central to the Group s activities. VfM implications are also highlighted for key Board decisions to ensure that there has been full consideration of the relevant issues. A cross-symphony VfM Steering Group has been created and includes VfM representatives from Parent and all Group members. The aim of the Group is to help drive and embed VfM, to agree updates to the VfM Strategy, approve actions plans, review ongoing efficiency programmes etc. The Group also helps co-ordinate the VfM self-assessment process. The benefits of having VfM representatives from Group members includes the sharing of ideas, discussion and sharing of best practices and the expertise and experience of larger group members can be accessed by smaller members in a focused environment. Quarterly board meetings includes an update from the VfM representative of previous VfM Steering Group meetings, updates on various VfM efficiency programmes and any ideas generated through the Spending Wise and Golden Thread Campaigns communicated to board by staff, customers through the various channels of communication. 4

5 3.5 To secure commitment from Board Members in the achievement of VfM by; The Symphony Board being clearly responsible for the Group s VfM strategy, overall VfM performance, and related compliance with regulatory requirements. The Board delivers this through an integrated approach including the following actions: Governance Providing a robust annual VfM self-assessment Review progress against the corporate plan and measure progress against the delivery of corporate priorities and strategic themes Regularly monitor finance, regulatory and other performance data to ensure assurance on regulatory compliance including VfM on a cross-group basis Challenge the Executive Officers to ensure agreed targets are achieve Develop, agree and review the Group s VfM strategy report for stakeholders. Finance Setting budgets and business plans which include targets for monitoring efficiency gains and improvements to services Review on a timely basis, financial performance, risk maps and effectively gauge and manage financial and other risks to the successful operation of the Group Review the production of accurate and timely management accounts and ensure the availability of financial information for security of our regulator and tenants. Planning As a key element of the business planning process and with reference to performance on delivering VfM, identifying minimum levels of efficiency in the provision of services by the parent and member organisations. In addition we will ensure that the business plan identifies efficiencies through clear and transparent VfM targets Review the long term efficiency of our assets and use this to inform asset management strategies. This enables the Board to understand the return we deliver from our assets (financial, social and environmental). Provide annual guidance on the timetable to meet the regulatory annual VFM selfassessment reporting requirements. Tenant focus Invest secured savings in improved and/or new service provision Improved tenant satisfaction with services that are reliable and provide VfM as a key objective in our plans. The Board and staff monitor progress in relation to tenant satisfaction Use our partnership structure to support improved VfM in areas such as procurement and asset management Ensuring our member organisations regularly review services and how they are delivered in order to identify potential improvements in costs, quality and efficiency The Symphony Board also recognise that driving VfM and embedding across our Group must also be a key element of the role and responsibility of our Group Member Boards supported by Group Management Team and local senior management. 5

6 3.6 To secure commitment from Group and Member Organisations and establish their role in the achievement of VfM by; Ensuring Group and Member Organisations play a key role in driving and securing VfM through; Developing their local approach to VfM, which fully reflects the Group s overall strategy and ensures achievement of Group values and reflects the key corporate priority to Sustain financial strength and improve efficiency Nomination of a VfM Representative who will attend each VfM Steering Group meeting and report to board Supporting the VfM Steering Group in developing an annual action plan of efficiency improvements which shows the financial savings/costs to be achieved and also any anticipated increases in social value. This is to be based on ideas generated from Group campaigns and management and departmental meetings. The action plan will be reviewed by group member boards, VfM Steering Group and Group Board where it will be scored along the VfM matrix which will include: 1. Adequate level of savings 2. Realistic targets 3. Mixture of long and short term projects that incorporate SHG corporate priorities 4. Consistent with activities of group member, focusing on priority areas At each year end Group and member Board s will publish their VfM self-assessment based on the evaluation of their action plans. To ensure they submit a self-assessment that is adequate and adheres to the requirements of the Regulator they must display the following: 1. A clear understanding of their organisation s asset base and how this is contributing to asset related decisions and objectives 2. Robust comparative information on service costs and performance supported by benchmarking data 3. Information on VfM gains achieved or planned to be delivered and how these have been secured or are planned to be achieved through evaluation of their action plans 4. An assessment of the social value realised from community and neighbourhood investment in the context of Symphony Extra 5. A clear acknowledgement and commitment to a long term VfM Action Plan (The main requirements of the annual VfM self-assessment is shown on Appendix 2 attached) 6

7 3.7 To provide a framework for the Group to contribute to the wider efficiency agenda by; Efficiencies gained through our VfM strategy will contribute to the efficiency agenda and fulfil our corporate objectives, through rigorous self-assessment procedures and constant communication with our stakeholders. The Group s overall strategy is encompassed in the diagram below: Our staff underpin our strategic VfM framework and are involved in delivering VfM initiatives across all areas of our business. Without a co-operative, motivated and skilled workforce the VfM aims and objectives could not be achieved. Therefore we constantly enhance our VfM campaigns, have regular and effective communication between all staff levels and in-depth performance monitoring to ensure VfM is fully embedded into the Group culture To successfully deliver and embed VfM, it needs to be an integral part of our day-to-day activities. It is important therefore that all staff understand VfM and assess their role in delivering VfM. They can do this by asking themselves three key questions: 1. Are we doing the right things? 2. Are we doing them the right way? 3. Are we delivering the right results? This strategy identifies the key requirements of VfM, and specifies both Group Boards role and Group Members Boards role in ensuring these requirements are met. The strategy will be reviewed and updated annually by the Group Board following consultation with the VfM Steering Group. 7

8 APPENDIX 1 Symphony Housing Group s VFM Golden Thread Our Vision To be a strong, cohesive partnership that uses our individual and combined strengths to deliver real, lasting benefits for our tenants and the wider communities in which we work. By this continual focus on VfM principles we will embed this culture into our mainstream activity 8

9 APPENDIX 2 Regulatory requirements for the annual VfM Self-Assessment 1. VfM self-assessments should be transparent and accessible to stakeholders and should comprehensively address (as a minimum) the 3 elements described below. 2 The VfM Self-Assessment should: 2.1 Enable stakeholders to understand the return on assets measured against the organisation s objectives For SHG this means that a range of data and analysis will underpin and clearly inform all key decisions taken in relation to our assets, including: Investment and the level/nature of that investment New development Stock retention Stock disposal Tenure conversion Alternative use Rationalisation Demolition Use of void stock Procurement This analysis is predicated upon a clear understanding of our asset base, its value and performance and how this contributes to the delivery of our objectives. Such understanding comes from comprehensive, robust data and intelligence in relation to: Our stock, the condition of that stock and its performance socially, economically and environmentally Our neighbourhoods and local markets Our customers and potential customers The above is reflected in SHG s Asset Management Strategy Guide Asset Management Our Approach which sets out the Group s expectations and requirements and is used by Member Organisations to inform and underpin their asset management strategies and secure consistency of approach. This helps ensure that our VfM self-assessment provides robust assurance that SHG: Understands the investment needs and long term viability of the Group s stock Is taking investment and other asset related decisions which are fully informed by intelligence based, active asset management strategies Understands the value we derive from investment decisions (financial, social and environmental) and from balance sheet strength. 9

10 2.2 Set out the absolute and comparative costs of delivering specific services This requires the provision of adequate data to allow stakeholders to make their own conclusions on SHG s performance on VfM. The data should include: Key financial ratios such as Return on Net Assets, Return on Capital employed, Interest Cover, Operating Margin etc. Key performance costs areas such as neighbourhood management and investment, property services, income management, development, group services etc. Key performance indicators in the specific service areas such as customer contract, allocations etc. All the above to have comparisons with prior year results and benchmarked against similar size organisations. Brief analysis of results including areas of poor and good performance 2.3 Evidence the value for money gains that have been and will be made and how these have and will be realised over time This will clearly demonstrate what the organisation achieved over the past year in terms of: Direct and indirect financial gains and benefits Comparisons with targets and previous year s performance How financial gains/benefits have been realised and utilised e.g. reinvestment in service improvements, expansion of service provisions, restructuring of departments etc. Social value benefits secured e.g. Symphony Extra impact to tenants, Welfare Reform Seminars for tenants etc. Demonstrate the above with specific examples and ensure obvious linkage with the VfM aims and objectives and SHG corporate objectives What does the organisation plan for next year in terms of anticipated gains/benefits? (Action plans should be longer term, 3-5 years, therefore level of detail to be included is at the discretion of GMO) How will the association build on past performance with applied learning, what requires changing, what areas didn t perform as well as expected Further areas now under review in a VfM context Each self-assessment should also clearly state how the board have gained assurance of the VfM self-assessment, this should include: Brief narrative setting out the boards view about the robustness of the self-assessment process and evidence base Detail the range of information made available to them during the year Extent of challenge from board, tenants and any third parties 10