VFM self-assessment workshop This presentation provides a VFM toolkit with a self-assessment...

VFM self-assessment workshopThis presentation provides a VFM toolkit with a self-assessment template

Steve SmedleyAcuity AssociateMay 2014

Workshop aims

To provide delegates with the tools and information to meet the regulatory requirement to publish an annual VFM self-assessment via:

1. Understand the updated regulatory context and emerging lessons from Year 1

2. Take a look at the key ingredients of a VFM self-assessment3. Challenge personal thinking through debate

It’s your day …… informal and participative

Part 1: morning – 10:00 – 12:45IntroductionsRegulatory context brought up to dateObservations & lessons from Year 1What has the HCA been saying about year 2What might a self-assessment look like? – overview

Lunch (& registration for PM attendees): 12:45 – 1:30

Part 2: afternoon – 1:30 – 5:00What might a self-assessment look like? – the detailSome thoughts from me Some thoughts from you - looking back and forwardLast thoughts

It’s your day …… informal and participative

11am – 1pm - Part 1IntroductionsRegulatory context brought up to dateObservations & lessons from Year 1What has the HCA been saying about year 2

1-1:45pm - Lunch1:45 – 15:00pm - Part 2 What might a self-assessment look like? • Some thoughts from me • Some thoughts from you Last thoughts

PART 1

Before dropping into Wonderland

• Who you are?• What you do?• What you want to get out of

today?• Any particular issues, hang-

ups?

REGULATORY CONTEXT …UPDATED

Co-regulation

Compliance

Horrible histories: VFM

Once upon a time, the government proclaimed that the public sector should be more efficient. Best value and VFM were prescribed and inspectors checked compliance.

Wot no competition?

Local monopolies? It’ll

end in apathetic coasting…..

This assumption is what your self-assessment is

trying to dispel.

Fast fwd: VFM regulation now

Review of Social Housing Regulation 2010we expect in future the regulator to be more proactive…on ensuring VFM…to achieve better returns for the taxpayer & support new affordable housing supply

Purpose of economic regulation (current Regulatory Framework):to protect historic government subsidy, promote access to private finance, and help address the lack of competitive pressures on providers which might otherwise put pressure on service quality and efficiency

VFM regulation now• Same set of standards apply to RASAs as 1000+• Assurance-based approach to regulation

• aim to obtain sufficient evidence (assurance) standards are being met• starting point is HAs’ own assurance on compliance with standards• HCA wants assurance that the board is assured!• HCA guided by 8 question engagement framework

• Q5 does the organisation demonstrate how it achieves VFM in meeting its strategic objectives?

• requires a review of the assurance provided to board on the strategy for & achievement of VFM

• so VFM self-assessment is key evidence/assurance• ability to drive VFM a key indicator of quality of governance

What the VFM standard is trying to achieve & what the HCA is seeking assurance on

Desired outcomes are no more than what an effective board will already be doing - HCA looking for assurance that:• providers have comprehensive & strategic approach to VFM that is board-led• boards clear about:

• their strategy • how the business is structured • how its resources are applied to deliver their plan

• providers have effective performance management & scrutiny functions• boards understand ROA, consider their use in the round & seek the best strategy for

delivering value from them, whilst meeting organisational objectives• providers operate efficiently & effectively as possible, seeking to control and optimise

the relationship between costs and quality of services • providers are as transparent as possible about the above and can be held to account by

key stakeholders Matthew Bailes et al spring 2014

Round up of implications• VFM now about the whole business – not just services• value tagged to your objectives not 3rd party• but has to reflect the value perspective of stakeholders

–publicly listed businesses maximise shareholder value –social businesses maximise stakeholder value? –raises tension between stakeholder value perspective eg • existing v future tenants• government (build) –v- sector (beyond bricks ‘n’ mortar)• board/exec reconcile this• self-assessment is a stakeholder doc

• reality check – VFM & (social) business effectiveness the same thing• can you measure the value you exist to produce? – your product

Round up of implications• greater emphasis on boards• opportunity for the sector:

•demonstrate it can do co-regulation •define value positively, in social business terms

• not just about cost cutting• counter anti-social housing sentiment with a better story• assert significance of sector• but avoid PR exercise

• HCA not dictating terms (yet):•business model, allocation of resources: supply-v-services-v-support-v-community investment•organisational form – group, merge, etc•operating structure, suggested costs, service levels

• but there is dissonance between regulation and politics

VFM self-assessment - first principles

So what’s in standard?• ‘doing’ VFM

• articulate & deliver a comprehensive & strategic approach to VFM to meet objectives

• application of 3 Es• ‘reporting’ VFM

• reflects stakeholder interests• robust• transparent• accessible

Purpose of self-assessment = demonstrate to stakeholders how meeting the VFM standard

Any specific expectations?• ‘doing’ VFM

• robust approach to use of resources• understanding RoA & strategy for optimising

returns• effective performance management &

scrutiny • understand service costs, outcomes & drivers

• ‘reporting’ VFM• enable understanding of RoA• set out absolute & comparative costs of

specific services• evidence VFM gains (backwards & forwards)

HCA specifically interested in these specific expectations!..... especially the last 3…so

specifically address them!

The VFM standard.What do you think?Any observations,

issues?

Observations on year 1• unhappy with sector response – VFM not taken seriously• VFM mood music changed last autumn• failure of compliance rather than failure of VFM• downgrade G rating by one notch• HCA’s ‘presentational problem’ –communicating disappointment to

sector without government using it to further beat unloved sector & regulator

• HCA unlikely to be more prescriptive – counter co-regulation• smacks of box ticking & avoiding responsibility for managing the biz

themselves• BUT HCA has given us some pointers…….(to be revisited)

• sector appears unhappy with HCA’s handling• risk of compliance mind-set resurfacing?

Your take?

Observations on year 1Determining what was required• uncertainty about requirements

• level of detail?• where and how to publish?• accessible –v- comprehensive/technical?

• many opted for summary in accounts and detail on websiteRoles• extensive board sign-off but scope for more involvement in process

• understanding, challenging, owning output• shaping the SA • special role for audit committee

• only third used tenant scrutiny – obvious role here• little reference to input from other stakeholders or even their perspective

How was it for you?

Observations on year 1Return on assets• wide interpretation – what was expected? Clarity required?• methodological & contextual issues militate against useful KPI• but killer headline metric not required• improving understanding of stock biz critical going forwardAbsolute & comparative costs• use made of HouseMark data• sometimes limited in OFR but more elsewhere• some not stated costs – difficult to understandEvidence of gains• HouseMark data, VFM registers, procurement, commercial return• tenant scrutiny, awards, accreditations not mentioned• key issue – evidence your gains (& performance), better

understand social value

How was it for you?

What data did you use?

Observations on year 1Dissemination• need to rationalise the docs that tell us about biz

effectiveness? OFR+?• improve accessibility & transparency• tone down PR• reporting non-financial outcomes – learn from social

accountsBenefits• majority saw value in process as biz toolRegulatory improvements• clarify expectations – fine line prescription –v- clarity of

expectations

How about you?

Self-assessment structure: different strokes

HouseMark/S&P approach

VFM standard compliance approach

Corporate priority approach

You don’t have to do it

like this!

Self-assessment approaches (templates)The HouseMark/S&P• definition of VFM in context of

purpose & objectives• strategic approach to VFM and

use of resources• arrangements to deliver VFM –

performance management and governance

• what has been achieved• plans for next year• board assurance on the VFM

self-assessment

The Compliant• background – ie HCA

requirement• what VFM means to us &

how seriously we take it in terms of strategy & delivery (ref standard)

• return on assets• absolute & comparative

costs• past & future VFM gains

Some take a KLOE approach • distil standards’ principles• assess –v- criteria

The Corporate• overall judgement• definition of VFM in

context of purpose & objectives

• corporate objective #1• aim• arrangements to

ensure delivery• achievements• plans

• corporate objective #2• ditto

• etc

What kind of approach do you

favour?

to be revisited

Good practice from the sector?• Helena** (infographic, varied approach to measuring asset and social return)• GreenSquare* (honest, comprehensive, had a bash at ROI, embedded VFM,

bottom-up VFM - GreenState)• Riverside** (honest, SA as improvement & accountability tool inc action plan,

outcomes from stakeholder perspective, involved others in process)• Notting Hill* (ROCE by business stream, active asset management, good use of

G15 benchmarking and commentary)* in OFR, ** separate VFM statement

Good Practice caveat:• how consistent is HCA in its approach to assessment?• up the ante - great expectations year 2• smaller HAs – need a proportionate approach

Evidencing (measuring) VFM performance

A VFM scorecard - for self-assessment & general biz tool?

VFM scorecard

• limited set of common metrics• emphasis on performance not context• but should be considered –v- context• comparable evidence base for:

• credible VFM story• understanding business effectiveness

• complements corporate scorecard (not always metric-based)

Process Value

People Biz health

Value achievement

Value creation


+ local metrics, eg local offer

+ qualitative evidence, eg scrutiny, reviews, awards

= credible evidence base to hang narrative on

to be revisited

What did HCA do?

• looked at around 240 self-assessments (ie 1000+ stock with March year end)• 15 non compliant – 14 downgrades• 160 got a partial compliance (naughty) letter threatening potential

downgrade if no improvement• why downgraded?

• insufficient assurance that there is a strategic approach to VFM• not communicated to stakeholders in a transparent and timely manner (ie

missed deadline)

So key issue – the provision of sufficient evidence for HCA to be assured

‘VFM self-assessment is about evidencing the VFM story….’

Any evidence of getting shirty with

smaller HAs?

What has HCA been saying is good?: key messages for 2014/15

• Good self-assessments transparently permit stakeholders to understand performance against the specific requirements of the standard:

• sufficient detail to allow stakeholder to make own assessment• balanced commentary - a reasonable interpretation of results• clear info on ROA* and how this has been used to inform decisions on the management of the

asset base• quantified evidence on cost of delivering specific services*, compared with:

• previous years• relevant peer group• & clear links between cost & quality of outcomes• no cherry picking good stuff – consider cost & performance, strengths & weaknesses in

context of overall spend • systematic evidence of past VFM savings and specific, ambitious, measurable targets for future.

Links made between savings & gains & achievement of provider’s overall strategy.Matthew Bailes et al, spring 2014

* NB the principles of Regulatory Framework expect continuous improvement in use of assets and costs. HCA is looking for ‘sufficient evidence’ to enable judgements on this

NB focus on 3 specific requirements

…..& poorer self-assessments…

..did not

The HCA’s key messages for 14/15• signpost other key documents in your board report / OFR• no room for complacency. For most what was good enough in 2013/14 won’t

be good enough next year. NB raising the bar..the sector should not underestimate the government’s & regulator’s interest in VFM……

• Matthew Bailes, May 2014: ask yourselves• does the self-assessment give the reader enough information to make a

judgement on whether your organisation offers VFM in delivering your objectives compared to your peers?

• does it give them enough information to judge whether you are doing better or worse than last year?

NB continuous improvement in VFM is about beneficial change

in cost &/or performance

WHAT MIGHT A VFM SELF-ASSESSMENT LOOK LIKE?: THE PRINCIPLES

Key principles for self-assessment

• include a comprehensive VFM self-assessment in OFR/board report• signpost to even more comprehensive documents if required – make

sure these documents are available and accessible in good time• form & content of the self-assessment is based on HA’s social

purpose and stakeholder interests• there is no template• suggest narrative backed by evidence (eg data, qualitative info)

• no evidence = fairy story• but just killer metrics – fails to tell full story

• VFM ultimately a qualitative judgement based on assessment of available evidence

• it is a stakeholder document – be clear about who you produce value for: • what do they want and how much have you achieved for them?• is it more or less than last year?• invite challenge

• demonstrate board ownership of VFM – allow time for the board to consider, discuss and challenge the self-assessment:• do they understand it?• does it address the requirements of the standard? • is it robust?

• sufficient evidence/assurance• any limitations or gaps – if so what and how will it be addressed

• does it represent a true & fair VFM story or just a fairy story?

Key principles for self-assessment

• it should be robust and transparent• comprehensive account of how the association is faring with regards to

improving VFM, warts & all , strengths & weaknesses, in the round• evidence-based! - provide sufficient evidence for stakeholders to make

their own judgements – commentary should represent a fair and balanced analysis of evidence facilitating judgement

• self-assessment is not a PR exercise but an accountability and improvement tool

• it should be accessible to stakeholders• infers that report is intelligible and its availability communicated to

stakeholders. • data visualisation key

Key principles for self-assessmentKey principles for self-assessment

Content:• consider including a compliance statement - to what extent does the HA

comply with the requirements of the standard and what does it plan to do about areas on non/partial compliance?

• demonstrate• a strategic approach to VFM including a robust approach to use of

resources • the performance management & scrutiny arrangements to achieve

strategy (including governance and tenant scrutiny). This is about demonstrating a grip on VFM via arrangements to ensure its delivery


Address HCA’s specific requirements: a) should enable stakeholders to understand the return on assets measured against the organisation’s objectives – provide evidence that you have a grip on asset management - that you:

• understand stock condition & associated investment needs• understand maintenance costs• understand demand, the communities & markets you operate in• understand the return in financial, social and environmental terms at an appropriate level

of detail: what level? What does the data tell you?• demonstrate that the above understanding informs

• intelligent asset management strategy that aims to improve returns• intelligent business decisions, eg hold, invest, dispose, convert, etc

• understand the benefit of investment on future rental stream/social outcomes & only invest where the return is clear…..

• …consider brief assessment of key asset decisions over year – cost/benefit• flag weaknesses for transparency, remedial action?


b) set out the absolute and comparative costs of delivering specific services and demonstrate you understand service costs, cost drivers and associated outcomes, ie that you have a grip on operational cost and performance.• evidence here includes benchmarking data, business metrics and qualitative info

eg: tenant scrutiny, service reviews, accreditation, feedback.• Acuity/HouseMark data key evidence base – compare self over time and against

others but avoid gaming• brief commentary on headline unit costs, PIs, other evidence

• what can you do about your cost drivers?• what are you doing to contain overheads?• what can you say about the efficiency/effectiveness of operating model?• strengths & weaknesses• explain direction of travel – costs/value up or down


c) evidence of past and prospective VFM gains• set key gains against overall cost base and in context of mission• quantify the gain financially, socially (performance, satisfaction, # beneficiaries,

etc), environmentally• how was it achieved?• own up to any negative impacts, costs etc• what will you use surplus for?• future gains

• what will you do?• what is the anticipated financial, social, environmental gains in context of

mission – can you quantify these?• are there any costs or diminution in service associated with them?

• over-promise, under-deliver is a risk – self-assessment is a record


Dropping the principles into a template?

2. Define VFM in context of objectives & stakeholder interests

3. Provide assurance about ‘how you do’ VFM

4. Evidence-based VFM reporting (warts ‘n’ all) – ‘how we did and what we plan to do’

1. Overall summary statement of VFM performance & compliance with standard

For us VFM means……

Our arrangements for ensuring VFM are…

Narrative that draws on data & qualitative evidence & addresses specific HCA reporting expectations

Overall, we meet the requirements of the standard…notable achievements include x. We need to address y...


like this!

to be revisited

Thoughts, observations?

PART 2

Recap & agendaPart 1: morning • Introductions• Regulatory context brought up to date• Observations & lessons from Year 1• What has the HCA been saying about year 2• What might a self-assessment look like? – overview

Part 2: afternoon – 1:30 – 5:00• What might a self-assessment look like? – the detail• Some thoughts from me • Some thoughts from you - looking back and forward• Last thoughts

Exercise 1 – How was it for you?

In small groups, reflect on your organisation’s experience of producing a VFM Self Assessment last year:

1. What kind of structure and evidence?2. What worked well?3. Outstanding difficult issues?4. What lessons have you learnt?

Write brief flipchart notes

Be prepared to feedback as part of discussion

STEPPING THROUGH THE PROCESS

Dropping the principles into a template?

2. Define VFM in context of objectives & stakeholder interests

3. Provide assurance about ‘how you do’ VFM

4. Evidence-based VFM reporting (warts ‘n’ all) – ‘how we did and what we plan to do’

1. Overall summary statement of VFM performance & compliance with standard

For us VFM means……

Our arrangements for ensuring VFM are…

Narrative that draws on data & qualitative evidence & addresses specific HCA reporting expectations

Overall, we meet the requirements of the standard…notable achievements include x. We need to address y...


like this!

Focus on step 1. Compliance & summary statement, including board assurance

Issues? Solutions?

high level summary of VFM performance – key strengths and weaknesses, is VFM improving?

compliance statement to what extent does the HA comply with the HCA’s VFM requirements? is the Board assured:

this is a fair and balanced account of VFM? of the robustness of this self-assessment

sufficient evidence/assurance? limitations or gaps?

how will non-compliance be addressed? invite feedback & challenge by stakeholders

How we did summary by stakeholder?

Focus on step 2. What VFM means to us: our VFM definition

• assert social mission, vision and objectives - it’s why you exist!– unpack key ‘value streams’ (outcomes), ie new homes, great services, community well-

being, care & support • identify key stakeholders and what they value – your audience & beneficiaries

of your value!

• based on above, assert a short VFM definition - essentially ‘for us VFM is maximising ‘our value’: more homes, better services, more lives improved…….’

• great opportunity to boldly assert your value proposition

Focus on step 3. Arrangements to ensure VFM – a strategic approach & the means to deliver it • to demonstrate grip on VFM strategically and

operationally• set out key principles of VFM strategy - state that it is a

considered strategy, eg:• based on fact/previous assessment• has meaningful improvement actions linked to it (pick these

up in step 4 when reporting past/future gains!)• corporate fit with key strategies: risk, asset, people,

procurement etc. • no VFM strategy ? - consider how the biz strategy drives

biz effectiveness/VFM

If you have a VFM strategy this is where it probably fits?.....

VFM strategy

Purpose, objectives …

People strategy

Asset strategy

Financial plan

Stra

tegi

c pl

anni

ng

Ope

ratio

ns

VFM action plan

Service delivery plan

VFM Self Assessment

Procurement strategy

Corporate strategy

What can you say about how you ensure the right amount of money is spent on the right things (social biz objectives)?:

o rigour of business/corporate planning processo use of robust business cases - based on

evidence/data (and not historical costs) & understanding of benefits

o quality of debate and challenge

Focus on step 3. Arrangements to ensure VFM – a strategic approach & the means to deliver it

• governance & performance management arrangements associated with planning, delivery and evaluating VFM eg:• VFM roles of board, exec, other staff, tenants, eg

• respective roles in accountability & challenge • tenant involvement in VFM: agreeing priorities, shaping services &

scrutinising service performance and VFM • assurance and reporting framework for VFM eg

• how is VFM reported within the HA?• how is VFM measured? Which tools?

• extent VFM is embedded, eg performance management, cost control, procurement practice, etc

• strengths & weaknesses of your approach?

Issues? Solutions?

Focus on step 3. Arrangements to ensure VFM – a strategic approach & the means to deliver it

Step 4. How we did & what we plan to do

AssetsOperations

ProcurementTreasury

Surplus & intended use

VFM scorecard/metrics

as evidence base to hang story on

Pithy commentary on key activity areas

supported by evidence

Alternatively take each corporate

objective in turn.

+

Step 4. How we did & what we plan to doa) Provide evidence that you have a grip on asset management ie that you:

• understand stock condition & associated investment needs• understand maintenance costs• understand demand, the communities & markets you operate in• understand the return in financial, social and environmental terms at an appropriate

level of detail: what level? What does the data tell you?• demonstrate that the above understanding informs

• intelligent asset management strategy that aims to improve returns• intelligent business decisions, eg hold, invest, dispose, convert, etc

• understand the benefit of investment on future rental stream/social outcomes & only invest where the return is clear…..

• …consider brief assessment of key asset decisions over year – cost/benefit

• pick up past improvement actions – quantify gains/benefits

• strengths and weaknesses of current approach to assets

Step 4. How we did & what we plan to doa) operations

• set out the absolute and comparative costs of delivering specific services (use HouseMark VFM dashboard & quadrant /Acuity metrics to compare self over time and against others)

• other evidence here includes business metrics, local offer data, care indicators and qualitative info eg: tenant scrutiny, service reviews, accreditation, feedback.

• brief commentary on headline unit costs, PIs, other evidence• what can you do about your cost drivers?• what are you doing to contain overheads?• what can you say about the efficiency/effectiveness of operating model?• strengths & weaknesses• explain direction of travel – costs/value up or down

• highlight key VFM initiatives and (quantified) benefits, eg from VFM register, previous VFM action plan, movement in HouseMark/Acuity data

• how were they achieved?• set gains against overall cost base. Own up to any negative impacts, costs etc

• ROI of commercial activity

Step 4. VFM achievements

Issues? Solutions?

c) key procurement gains not already covered at a) or b)d) treasury management

brief ref to the cost of capital, debt management strategy and any evidence of savings from active debt management. How does the cost of capital compare?

use made of borrowing capacity to achieve development outcomes in context of:o board’s agreed approach to risk and future business planso limitations:

covenants access to affordable finance

NB this is about managing stakeholder expectations as much as reporting VFM

e) state surplus & how gains/surpluses will be used to produce more VFM

What I’ve just said as a picture

Assets Operations

Procurement

Treasury Management

Surplus

financial benefit -savings,

income, etc

costs –v- service outcomes, social & economic benefits, environmental benefits

Borrowing capacity

looking ahead – even more social value

It’s all social value!

financial benefit -savings,

income, etc

Narrative backed by

data

Data sources/evidence base

Assets Operations

Procurement

Treasury Management

Surplus

Borrowing capacity

benchmarking/HCA regression analysisinternal scorecard

local offer performance

tenant scrutiny workaccreditation, service review, internal audit, etc

satisfaction

key asset management decisions – cost/benefit

key procurement items – cost/benefit

VFM register

Financial returns

impact assessments, SROI, etc

VFM strategy & action plan

Step 4 variation based on corporate plan

• corporate objective #1– aim– achievements– plans

• corporate objective #2– ditto

Caveat - but need to ensure don’t lose sight of regulatory requirements by following the line of thinking in your corporate plan

Step 4. Improvement Plans for next year

Issues? Solutions?

• what will you do?

• pick up weaknesses, improvement actions already identified – your VFM action plan going forward

• what is the estimated (quantifiable) benefit in financial, social and environmental terms

• pick up weaknesses mentioned elsewhere

• any costs or diminution in service associated with them?

….and don’t forget to communicate

• disseminate• who?• OFR/board report! signpost • timeliness

• accessible• find it?• understand it?

• language• graphics

EVIDENCING (& MEASURING) VFM


A VFM scorecard - for self-assessment & general biz tool?

VFM scorecard

• limited set of common metrics• emphasis on performance not context• but should be considered –v- context• comparable evidence base for:

• credible VFM story• understanding business effectiveness

• complements corporate scorecard (not always metric-based)

Process Value

People Biz health

Value achievement

Value creation


+ local metrics, eg local offer

+ qualitative evidence, eg scrutiny, reviews, awards

= credible evidence base to hang narrative on

What kind of metrics?

Process Value

PeopleBiz

health

% rent collected % service charge collected

average re-let time (all voids)calls handled at first contact

or another key customer process PIrepairs at first visit/equivalent

satisfaction or net promoter with employer? or staff engagement?

sickness absencestaff turnover

ratio top earner to bottom or median earner measures on say board effectiveness or staff

development?

growth turnovernet increase in stockoperating marginoperating costs as % turnover• management, maintenance, development overheads non-social housing turnover% spend non-social% margin non-socialarrears as %void loss as %bad debt as %effective interest rateleverage

net increase in stocksatisfaction with new homenet promoter/satisfaction with service satisfaction with repairssatisfaction with neighbourhood% tenants who think rent/service charge is good VFM #/% beneficiaries – employment?#/% beneficiaries - training & education?#/%/£ beneficiaries – income inclusion?

Building a picture of value with metrics

Social mission

Kind of value

Kind of objectives

Kind of measures

Metrics need to map to

value

•identify kind of value•new homes (V1)•great tenant services (V2)•care & support (V3)•added value (V4)•commercial return?

•map existing metrics•fill gaps

•metrics•other forms of evaluation

•reviews, awards etc•tenant scrutiny•impact studies

Customer

Community & LA

Regulator & government

• Net increase in stockV1

Average SAP rating* V2/4

Satisfaction neighbourhood * V2/4

Satisfaction with quality of new home* V1Satisfaction with overall services provided* V2Satisfaction with maintenance* V2% jobs right first time V2Net promoter* V2Fuel poverty PIs?

•# found employment V4•# apprenticeships created V4•# completing training course V4•# provided financial advice V4•satisfaction with intervention V4•£x invested of own money•£y leveraged

NB NHF audit categories as basis for typology

• Key local promise PIs (in accordance with consumer regulation) V2

Your key Care & support PIs (V3) could be included here too eg QAF.

Telling the story: where the value lies

Complement metrics with key reviews, awards, scrutiny, impact studies, social accounts?

• Regulatory rating

• Arguably, surplus, leverage

Developing a VFM scorecard toolkit

Don’t panic!!!!! I’m not suggesting you use all of the following metrics – simply pick the best that work for you depending on:a) the nature of your business and the value you produceb) how much effort you want to put in

Metrics in blue collected by

Acuity

Business healthsource: accounts, Acuity, HouseMark

• business growth– growth in turnover– growth in assets– net increase in stock– new biz income

• debt servicing & use of assets– net leverage/gearing– debt per unit– EBITDA MRI interest cover– return on assets

• operating efficiency & profitability– margin eg

• operating margin• EBITDA MRI margin

– operating cost per unit• management cost• maintenance cost

– income protection• arrears as % rent due• FTA as % rent due• void loss as % rent due• bad debt/write off

– effective interest rate

Clearly lots more to choose from but what do you think are the key metrics?

Peoplesource: local PIs, Acuity, HouseMark

• average days lost to sickness• staff turnover• staff/board satisfaction• could consider:

– customer service accreditation– local measures associated with training and

developing staff


Business processessource: local PIs, Acuity, HouseMark

• % rent collected• % service charge collected• % repairs completed in target time• % units vacant & available• % units vacant & unavailable• average re-let time• tenancy turnover• other key processes where effectiveness matters, eg gas

safety, ASB case handling, budget achievement?


Customer

Community & LA

Regulator & government

• Net increase in stockV1

Average SAP rating* V2/4

Satisfaction with neighbourhood as a place to live* V2/4

Percentage of tenants who are satisfied that views are listened to and acted upon* (co-reg) V2

Satisfaction outcome of ASB case* handling V2/4

Satisfaction with quality of new home* V1% homes failing Decent Homes Standard* V2Average time to complete a repair* (days) V2Satisfaction with maintenance* V2Satisfaction with overall services provided* V2% jobs right first time V2Net promoter* V2% tenants who think rent/service charge is good VFM V2Satisfaction with outcome of complaint V2% satisfied with complaint handling V2% satisfied staff were able to deal with their problem V2

Typically the most frequently used measures are # beneficiaries of a given intervention, eg • # tenants provided with financial advice• # tenants helped into sustainable work• # tenants completing vocational training course• # tenants completing skills training• # apprenticeships created• # kids attending diversionary activityCan also include satisfaction with interventionAlso:• £x invested of own money• £y leveraged

• Include any key local promise PIs in accordance with consumer regulation V2

Your key Care & support PIs (v3) could be included here too eg QAF.

Valuesource: local PIs,

Acuity, HouseMarkComplement metrics with reference to any key impact studies

Exercise 2: What should it look like?

In the same groups, based on what you’ve heard and the suggested templates, what should it look like?:

1. What kind of structure?2. What kind of evidence?3. How would you improve it to make it your own?4. Remaining difficult issues?

Write brief flipchart notes

Be prepared to feedback as part of discussion

Last thoughts, issues• have you got the tools and information you need to take this

forward?• anything not dealt with?• consider a buddy system for peer challenging your SAs• Acuity support also available

Steve Smedley 07814 [email protected]

VFM self-assessment workshop This presentation provides a VFM toolkit with a self-assessment...

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