INVESTING IN HOMES, JOBS, TRAINING AND GROWTH FIVE YEAR CORPORATE STRATEGY OCEAN HOUSING GROUP TO IMPROVE CORNWALL S ECONOMIC FUTURE!

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2 INVESTING IN HOMES, JOBS, TRAINING AND GROWTH TO IMPROVE CORNWALL S ECONOMIC FUTURE! FIVE YEAR CORPORATE STRATEGY OCEAN HOUSING GROUP Large Print, Braille and alternative language versions of this documents can be obtained from Ocean s call centre on PAGE 1 OF 15

3 1.0 INTRODUCTION 1.1 Over the last 6/7 years, a time of serious challenge in the UK s economy with high unemployment, stagnant growth and the Coalitions Austerity Strategy starting to impact, Ocean, has continued to expand its activities and influence. Our performance both in the quality of services provided and in new initiatives/green technologies, as an example, continues to strengthen, as does the influence and reputation of the Group. 1.2 During what have been tough economic times, it is of the utmost importance that our tenants remain at the heart of what we do. With change underway in our communities driven by the Coalitions:- (i) (ii) (iii) (iv) Welfare Reform being implemented Regulatory changes, with a new approach to Value for Money Increased risks and opportunities for Ocean Reductions in support for poor and vulnerable people 1.3 Whilst nationally the economy would appear to be back into growth, this is not true for all regions and in economic terms Cornwall remains officially the poorest county in the United Kingdom. We have developed an excellent relationship with the Local Enterprise Partnership and are working closely with the Local Enterprise Partnership to tackle the economic issues. With a general election imminent and the outcome uncertain, it is possible business decisions to invest could slow down both nationally and regionally. Whilst Ocean is not immune from the outside world recent examples being (falling oil prices, inflation and interest rates at low levels) they bring with them new challenges and opportunities! For the Ocean Group we have with our strategic approach towards diversification of the business planned and evolved the Group into a self determining business, which plans its future and growth, with profits used to support the core social purpose, which is:- To Invest in Homes, Jobs, Training and Growth to Improve Cornwall s Economic Future! 1.4 With these thoughts in mind, it is key to continue investing in our governance, training for all in the group, Board members, staff and tenants. Information, clear reporting, good communication and continued investment in people, homes (new and old), communities and partnerships will be an ongoing important aspect of our continued growth and success in the difficult times that lie ahead. 1.5 The UK, and in particular Cornwall, needs organisations that will invest in their business activities, invest in customer services, job creation and training. Ocean is in a strong position to continue to do this and further develop its role and champion new homes and inspire others that Ocean is an important part of employment and the skills solution for Cornwall. 1.6 As an organisation in a changing economic, social and financial environment, we will continue to keep abreast of all potential changes which have implications for policies and actions at Ocean. We are constantly preparing for, and meeting, the challenges which lie ahead and we will ensure we: PAGE 2 OF 15

4 a) Evolve and strengthen our governance particularly with regards to stress testing our risks whilst making Ocean more responsive to stakeholders interests b) Work with our tenants and other interested parties to minimise the negative aspects of Welfare Reform on individuals and families by providing support, advice and assistance where possible, whilst seeking to minimise risk to Ocean. c) Fully understand and respond to the requirements of the market, the economy and demography d) Pursue actions to become more businesslike, with a sharp focus on efficiency, effectiveness, risk and value for money e) Continue development of a sophisticated approach to the management of risk, so that we are clear as to what could run the Ocean Group aground! f) Continue our development of quality partnerships and develop capacity in Ocean and amongst our residents/tenants/staff g) Build on our residents/tenants involvement strategy recognising that greater involvement strengthens our business h) Manage our relationship with private lenders i) Look ahead and plan for the future as construction methods and other ways of working and practices change j) Retain and develop flexibility to meet a changing market place k) Further develop our sustainable green credentials and CO² reductions, including the potential of carbon trading l) Collect and regularly update our records on staff and residents/tenants so that we can ensure equality and diversity issues are embedded and help inform initiatives and action 1.7 The Social Housing Sector continues to experience rapid change which has fundamental but uncertain effects on the Ocean Group. The roles of housing associations and of Local Authorities will change substantially and with them the role of our regulators and funders. 1.8 The Ocean Group s response to these and many other opportunities and challenges is simply, to strive to be the leading provider of quality housing and services in our operational areas, providing services that are accessible, relevant and provide value for money. In addition we will renew our efforts with employment and skills interventions. PAGE 3 OF 15

5 1.9 Our existing recording, reporting systems and procedures are well developed to provide for a strong strategic approach from Boards, responsive day to day management decisions by the Executive and Senior Staff. In addition we are developing a strong and informed enabling overview and ensure regular monitoring of achievements by the Groups Boards and accountability, scrutiny and challenge from our residents/tenants. In particular, our fourth year of local service standards will continue to evolve, in partnership with residents/boards and staff, set new and improved levels of service, this needs to be built upon over the coming years Key to the continued success of Ocean will be to further develop our good relationships with partners and to be innovative and flexible in our approach to the many challenges that lie ahead Despite all of these challenges we will seek growth within the Group, improving homes, constructing new homes that meet the demands of modern living, invest in jobs, training, and apprenticeships all of which will be used by Ocean to lead and inspire improvement in a bright economic future for Cornwall. PAGE 4 OF 15

6 2.0 OCEAN GROUP S VISION OF THE FUTURE 2.1 Ocean has a clear vision of its future, and will gear all its activities towards achieving this vision. All existing homes will be brought up to a modern standard and be well maintained. New homes will be provided to meet the housing needs of the community and the environmental agenda, where Ocean is already, through Advantage SW, and Ocean s own initiatives such as Prince Charles House, a National leader. There will be a sense of pride in being a tenant of Ocean, and a sense of wellbeing and neighbourliness on estates and amongst residents. Services provided by Ocean are and will continue to be, highly efficient and provide value for money. Repairs will be carried out quickly and rent collection will pick up and deal with any problems at an early stage. Ocean will be an active player in the community, promoting a better quality of life for all, supporting equality and diversity and pursuing a range of Community Engagement Initiatives that will add value and support opportunity, capacity, sustainability and enhance community cohesion. We will support our tenants who are negatively impacted by Welfare Reform where possible and minimise risk to Ocean. 2.2 Tenants have been at the heart of Ocean since 1999, in advance of the original transfer on 7 February The transfer was driven by the tenants who wished to see their homes improved, accessible/improved services for tenants and a much greater say into the running of the then New Company. From day one, four tenants have been on the Board, involved in developing the performance, culture, taking investment decision to improve the homes of fellow tenants/residents and in ensuring Ocean was well governed. This strategy and previous plans are a lasting legacy to the tenants who worked so hard for the formation of an organisation that would put them at the heart of the organisation and to continue to deliver the improvements they so badly desired. 2.3 At Ocean we believe that tenant/resident involvement is essential to our past and future success as a quality business, meeting the needs of people who live in our homes and the communities in which we are active. We will continue to widen access and involvement opportunities throughout the five years of this Corporate Plan and will seek to further develop services that can add skills and employment opportunities to our tenants and family members who are seeking employment and work experiences. 2.4 Our commercial activities will be focused on creating profits to reinvest in our core social business activities, facilitate additional improvements in homes, services, the community/environment, employment and training. We will seek to grow these businesses, creating additional profits over the five year period, to invest in growth, support the core business, create jobs, training opportunities and apprenticeships. 2.5 Above all we will, with our residents/tenants and partners, seek to continually improve in all we do and enhance our role as a major provider of services, jobs and training in the County. PAGE 5 OF 15

7 3.0 HOW WILL WE DO THIS? OUR VISION FOR At the Group Board Away-Day January 2015, the Board set the vision as 1. To manage 5,000 homes by Customer satisfaction: over 90% 3. Continued organic growth and profitability within the Group 4. Continue to invest in our homes 5. High performing support services 6. Flexible, empowered workforce underpinned by IIP Gold accreditation 7. Added value support to our customer: employment support, advice, digital and social inclusion HOW ARE WE GOING TO ACHIEVE OUR VISION? 1. Marginal gains: looking for that extra 1% in everything we do 2. Customer focus: putting customer experience and perceptions first 3. Business intelligence: making better use of the information we hold; making better decisions 4. Opportunities: All staff involvement Better use of new technology and inline services Refreshing our processes Reviewing flexible working PAGE 6 OF 15

8 4.0 OUR MISSION 4.1 This section represents the Ocean Group's 5 "Golden Threads", embracing all our activities, methods of engagement and culture. 4.2 To be an innovative provider of quality homes and services, with residents and staff at the heart of Ocean, and Ocean at the heart of the community. 4.3 Our Objectives To achieve this vision of the future, Ocean has set itself the following targets: 1. Have residents at the heart of everything we do 2. Continue to strengthen our Governance 3. Provide good quality services, right first time 4. Provide innovative, energy efficient, good quality homes 5. Be an employer of choice, creating local job and training opportunities, recruiting and retaining the best people 4.4 Individual Company Plans, Business Plans, Strategies and Action Plans When reading or monitoring progress on any of the above documents, in 4.4 they can, and should be, cross referenced to the five objectives in Ocean's five year strategy under section 4.0 Our Mission. PAGE 7 OF 15

9 5.0 OUR VALUES a) Our values were developed by staff from across the Ocean Group. They are relevant to everything we do and help us to deliver our vision and mission: One Ocean: Proud of our Values Innovative, ambitious and brave for the future of our business, customers and communities Passionate about customer service Honest, enthusiastic and always positive Quality and value in all we do PAGE 8 OF 15

10 6.0 STRATEGIC APPROACH TO VALUE FOR MONEY (VFM) 6.1 Ocean has VFM embedded into its culture and all key strategic documents and policies have this at the core. 6.2 Ocean recognises that it provides valuable services to its customers and they have the right to demand that these services are high quality, good value and based on what they want from their landlord or contractor. Ocean recognises that to ensure high customer satisfaction the services provided are regularly and critically reviewed. 6.3 The Group Board are responsible for ensuring VFM and critical challenge of services. To ensure strong focus, the Board have delegated to Group Audit Committee the role of regular VFM scrutiny and management. This is complimented by a strong tenant focus on VFM through the Scrutiny Panel, who within their terms of reference, have authority to challenge Ocean on how VFM is demonstrated and can call their landlord to account. 6.4 All Board discussions are considered with a VFM context and the discipline of such is ensured with a requirement for all reports to have a paragraph dedicated to illustrating the VFM of the report s recommendations. Board members are directly held to account for VFM at an annual meeting reviewing service performance between Board Members and Residents/Tenants Panel. 6.5 The Group is proud of branding itself and its values as One Ocean and consistently applies VFM across the whole Group so that all companies and their staff are united in the aim of VFM. 6.6 For the Corporate Plan to 2020 the VFM strategy and delivery target is based on the following objectives; Efficiency Save 250,000 per year from management costs Save 300,000 per year from maintenance costs Both targeted areas to be achieved without any reduction in service delivery and quality Value Generation Generate 250,000 per year from profits on selling open market housing Generate 300,000 per year from profits via external contracts Generate 500,000 per year from selling existing social housing dwellings, garages and land This generates 1.6 million of value per annum for 5 years to 2020 and is the underlying VFM strategy to deliver our corporate vision of building 500 new affordable homes to 2020, provide quality services to tenants and remain a strong, financially viable business. 6.7 Group Audit Committee will overview delivery of these targets on behalf of Group Board complemented by each Group subsidiary company monitoring its individual contribution to the Corporate VFM Strategy at every Board meeting. PAGE 9 OF 15

11 6.8 To underpin the VFM strategic aim, as detailed above, the following key issues will also be pursued for 2015/16; Review development working practices, design and construction methods to deliver a 10% increase in output of new build homes, 10 extra per year Compared against its housing association peers, to achieve top quartile performance on the key housing performance indicators within top half costs To critically review the Group structure, including the delivery of non-social activity, with a view to ensuring that it is the most efficient, effective and risk protective arrangement To explore with local partners cost sharing arrangements and joint procurement ventures that would improve VFM for Ocean To embark on the Ocean 2020 project, including the investment in business systems, in a manner that will ensure the Group achieve significant efficiencies and customer service improvement once completed To complete the exercise of liaison with tenants to create a transparent, customer driven, efficient and locally accountable service charge system that embodies Ocean s commitment to VFM. PAGE 10 OF 15

12 7.0 COMMITMENT TO TECHNOLOGY AND COMMUNICATION 7.1 Underpinning the 5 year Corporate Strategy is the commitment to invest in the project known as Ocean This comprehensive major initiative will change the way Ocean works to ensure we are a strong, customer focussed, quality organisation that can effectively compete in the challenging and rapidly changing environment over the next 5 years. 7.2 To ensure that Ocean can meet this aspiration there is a need to have a strong commitment to investing in ICT and embracing social media to communicate. Customer expectations are rising and Ocean s needs to offer a more flexible and responsive service. 7.3 The strategy in terms of ICT will be that all decisions will be driven by a centrally controlled approach to technology and communication. This will ensure strong corporate understanding and efficient use of resource deployment to focus on the key areas of the Group. 7.4 Ocean will look to procure a largely universal integrated business system solution that will support the whole Group and ensure the efficient transmission of data between teams and flexible, fast and customer focussed communication to others. The business system to serve Ocean shall be one that encourages and supports flexible working patterns at multi variable locations. The service shall be reliable, robust and secure but permit more direct face to face customer contact rather that be reliant on a desk based service at the head office. Such business system functionality shall also support extended working hours as and when desired by customers. 7.5 The Ocean 2020 project will determine the way we want to work and the way we want to serve our customers. The approach to ICT Strategy at Ocean is therefore to invest in technology at a strategic central level that will ensure the tools required by our staff to provide excellence are available and support them in that aim. The Ocean 2020 project will pull together how we want to work and ensure the technology fits in with this vision. PAGE 11 OF 15

13 8.0 OBJECTIVES AND PRIORITIES 8.1 Ocean has aimed for, and will continue to achieve, its mission through the following key objectives and priorities: a) By implementing our developing Ocean 2020 marginal gains strategy. b) By meeting all performance standards and targets to our tenants, customers and partners. c) Comply with the HCA Rent Standard, ensuring rent collection performance is maximised and risk is minimised. We will respond in both a strategic and practical manner to the use of affordable rents to support development of the Groups new build programme. d) By reviewing and continue providing an efficient and effective maintenance service and improving the Group s housing stock to enhance tenant s living standards, reduce fuel poverty and protect its property investment in line with the Business Plan. e) By developing cost-effective, well designed, new, affordable homes, making best use of available resources in order to meet local housing needs (using modern methods of construction). f) Ocean provides a professional, responsive and effective customer-orientated housing management service. Ensuring high quality standards and achieving customer satisfaction through monitoring and reporting performance and striving for continuous improvement. g) We will continue to work with tenants involving them in the management of their homes and in shaping the future of Ocean, including the development of effective resident/tenant involvement, with annual reviews. Ocean has a unique and ongoing relationship with our residents, and a long term investment in the local communities that we serve. We will develop opportunities to exploit our position and provide employment and training opportunities for our residents. h) We continue to develop and operate an equal opportunities and diversity policy and strategy for the provision of housing and employment and strive to ensure no group or individual will be disadvantaged as a consequence of the activities or decisions of Ocean. i) To develop and manage housing-related services, projects and initiatives for people who are vulnerable or with special needs, in partnership with other agencies. j) To contribute to community and area regeneration through the provision of buildings and services including local employment generation initiatives where these are ancillary to its housing activities. k) Our core work will ensure that the Group is financially sound, has effective internal processes supporting our work and provides services which people can afford. Our Treasury Management will ensure we have sufficient funds to meet our obligations and managing our interest rate exposure and inflationary factors in order to protect the Business Plan. PAGE 12 OF 15

14 l) We will have rigorous Risk Management, only making investment and business decisions following sound assessment and we will effectively manage all forms of risk in the Group s work. As new risks and challenges emerge, such as Welfare Reform we will increase our scrutiny of risk at all levels of the organisation. m) We will use ICT, and social media to deliver cost effective systems, that will also improve communication and the access to information and advice both internally and externally. n) Use the Group structure to increase turnover, profits, reduce risk and achieve value for money for the benefit of our core housing business. o) To attract existing housing associations or new local authority stock transfers to join our group. 8.2 In all cases we need to consider how to minimise costs and maximise financial benefits, as well as ensuring suitable arrangements are put in place relating to accountability of control between member organisations. 8.3 To work in a co-operative/professional manner with our regulator complying with all requirements requested from them to ensure the Group remains well governed, well managed and viable. This will include an annual self-assessment compliance exercise to be undertaken by Board and Resident/Tenants Panel and a Group-wide robust Value for Money Strategy. 8.4 All of these objectives and priorities are focused on building on past success, improving services to tenants, rising to the challenges and risks of Welfare Reform. We will do this by seeking growth in all of the companies within the Group, improving homes, constructing new homes with low running costs, investing in jobs, training and apprenticeships and being a leader in bringing about housing, employment and skills solutions to Cornwall and its Economy! PAGE 13 OF 15

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