The document summarizes the review and proposed updates to a2dominion's asset management strategy (AMS). Key points include: conducting workshops and interviews to identify strengths and weaknesses of the current AMS; developing a new "AMP Test" process using standardized templates and criteria to evaluate housing assets; and presenting a case study of a property where additional options were identified and costed using the new process. The review aims to produce a more robust, standardized, and financially viable AMS that clearly defines objectives and procedures and ensures all options are considered for housing assets.

1. Asset Management Strategy & Policy Review
Maximising Housing Assets
12.06.12

2. • Mathew Baxter – Managing Director
echelon consultancy
• David Lingeman – Group Director of Property
Services
a2dominion

3. Defining Asset Management
“Asset Management is the
range of activities undertaken
to ensure that the Housing
Stock meets the needs and
standards for the future.”
National Housing Federation

4. Why is effective Asset Management critical?
• £4bn spent on maintaining social housing in UK
• Equates to £1000 per property/per year on average
• 70% of budget on 30% stock?
• Releasing value back to centre
• Detailed forecasting – control
• Cost predictability – component accounting
• Maintainability & standardisation – reduces costs/risk
• Engagement with Service Providers – they know your stock

5. What makes a good AMS?
• Clearly set objectives
• Bespoke to needs of a2d & its stakeholders
• Fully ‘owned’ by a2d and its stakeholders
• Must be organic
• Regular scrutiny/review and update
• Concise and clear links to supporting documents
• Clear procedures and processes
• Must be financially viable

6. a2dominion Scenario
•Existing AMS created in 2009 at merger
•34,000 homes across 90+ LA areas
•Development of model for strategic purposes
•Ability to model alternative solutions for assets –
development of toolkit to do so
•Consideration of affordable and market rent impact
•Impact of rent review – opportunity or threat?
•Focus of ‘difficult’ properties by area

7. a2dominion Scenario
•Develop better relationships with LA Partners
•Ensure all options considered
•Visibility and access internally and externally

8. a2d
Mind
Map

9. Scoping Process
•2 x Workshops 20/1 & 27/1 (Joint Report issued)
• Identified 68 Success Factors from workshops
• 11 Internal Stakeholder 1:1s held
• 7 External Stakeholder 1:1s held
• Identifying Strengths & Weaknesses
• Detailed Summary Report
• Series of recommendations…

10. External Stakeholders - what did they say?
• Not proactively provided with AMS
• Encouraging closer working relationships
• Open to innovative ideas
• More emphasis on local issues – ring-fencing
• Affordable Rents – impact
• General over-supply of 1 and 2 bed – temp accom. needs
• Identifying specific needs

11. Scoping Process
•2 x Workshops (Joint Report issued)
• Identified 68 Success Factors from workshops
• 11 Internal Stakeholder 1:1s held
• 7 External Stakeholder 1:1s held
• Identifying Strengths & Weaknesses
• Detailed Summary Report
• Series of recommendations – ‘AMP Test’

12. The ‘AMP Test’
• Pre agreed criteria to inform decision making process
• Extracts data from various data sources (rather than
reliance on stock condition data) to include:
• External stakeholder data
• Internal stakeholder data
• Data from UH (Housing Management Database)
• Lifespan data
• ‘Soft’ data (e.g. demographics)

13. The ‘AMP Test’ - delivery
• Existing structure is functional but improvements identified
• Improvements will include:
• Clearly define criteria – new templates
• Extended use of Lifespan
• Creating ‘on-line’ AMP Test
• Accessibility to AMS documents/outputs (internal and
external)
• Standardised reporting templates

14. The ‘AMP Test’ – roll-out
• Initial meeting held with Lifespan
• Lifespan keen to develop product with A2D/echelon
• Further meetings to develop specifications
• Define selection criteria
• Develop ‘Decision Trees’
• Develop new process (full process maps)
• Finalise delivery model across a2d

15. Case Study - 12 Birkbeck Road

16. 12 Birkbeck Road – Setting the Scene
• Victorian mid-terrace property
• Converted to 3 flats
• Ground floor – 1 bed (occupied elderly/reluctant
to move)
• First floor – 2 bed flat (void)
• Second Floor – 2 bed flat (void)
• Reasonable repair but soundproofing and thermal
insulation issues

17. 12 Birkbeck Road – Previous Work
•Sound issues appraised – costs for upgrading sound and
thermal (£206k ex fees)
•Costs include window renewals and kitchen and bathroom
refurb (but not complete replacement)
•30-Year costed maintenance programme

18. 12 Birkbeck Road – Previous Work
•Options identified by A2D:
• Complete refurbishment as costed
• Partial refurbishment of upper floor (limited sound
proofing) - market rent potential
• Disposal

19. 12 Birkbeck Road –Review approach
•Identified as atypical scenario for A2D
•Undertook visit to property to familiarise
•Reviewed work to date against AMS
•Requested additional information
•Desktop review of options
•Produced summary output report and findings

20. 12 Birkbeck Road –review findings
•Additional DCF and sensitivity analysis undertaken
•Full financial details reviewed
•Process identified 4 further options for consideration:
• Retain existing layout and upgrade
• Convert to single large family unit (5 bed+)
• Convert to two units
• Include roof conversion

21. 12 Birkbeck Road – LB Ealing Perspective
MB met Head of Housing Supply as part of scoping:
Identified following needs/aspirations:
•Early involvement in decision making
•More focus on developing a 3rd way/change of use
•Over supply of 1 beds (70% of social housing stock)
•Not enough 3 bed+
•Mixed tenure welcome
•Keen to work with A2D on 1 bed reduction

22. 12 Birkbeck Road –Review outputs
•Costed 30-year option appraisals for each option
•Standardised spreadsheet for future use in new AMS
•Clarity on engaging LA Partner(s) in process
•Identification of all options through scorecard (decision tree)
•Specific consideration of conversions/extensions
•Impact of mixed tenure - payback

23. 12 Birkbeck Road – Summary Costings
•Option 1 - Retain existing layout and upgrade
•Option 2 - Convert to single large family unit (4 bed+)
•Option 3 - Convert to two units
•Option 4 - Include roof conversion

24. Next Stage – Launch
• Formal sign-off process for new AMS
• Present internally – operationally & EMT/Board
• Internal briefings for staff/EMT/Board Meetings
• Present externally – key external stakeholders
• Residents Groups/LA/RP Partners
• Ensure all stakeholders fully aware

25. Scrutiny
• Establish review process
• Ensure document is created to allow it to evolve
• Continuation of AMS Review Group in ‘check’ role
• Interventions points
• Annualised review
• Standard reporting templates to a2d stakeholders

26. Thank you – Questions?

27. Contacts
David Lingeman - David.Lingeman@a2dominion.co.uk
www.a2dominion.co.uk
Mathew Baxter – mathew@echelonconsultancy.co.uk
www.echelonconsultancy.co.uk