Dylan Chipp discusses value for money (VfM) in the current fiscal climate facing austerity measures. He outlines the regulatory VfM standard and how housing organizations can demonstrate VfM through transparency, performance monitoring, resident involvement, and efficiency savings. Case studies show examples of organizations aligning KPIs with standards, conducting thorough service reviews, and building auditable evidence of improvements through an internal VfM register.

1. Value For Money
Tell Me the Score
Dylan Chipp
Non-Executive Director, Voluntas Housing
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2. To Cover in this session
 Introductions
 The Climate we’re in
 TSA Standard (VfM)
 Short Notice Inspection
 Case Studies
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3. Its 2010….
 An Election Year…..£150m campaign and costs
 An Investment Year….£117b on Banks
 Peak Debt Year for UK at £170b (…ish)
To be followed by Five
Year’s of Austerity......
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4. Change of Government
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5. The Manifestos so Far
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6. Case Study – Team Meetings
 Midlands HA, 8,500 homes 14
Minor voids - time with repairs team (2009 voids)
 Business Excellence Model 12
 Robust Golden Thread 10
Quarterly team meetings to 8
focus on performance trends 6
using simple graphs of 4
success/failure over time and 2
asking “Why did it do that?” 0
22/03/2009
05/04/2009
19/04/2009
03/05/2009
17/05/2009
31/05/2009
14/06/2009
28/06/2009
12/07/2009
26/07/2009
09/08/2009
23/08/2009
06/09/2009
20/09/2009
04/10/2009
18/10/2009
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7. TSA Standards
Home
Governance
and viability Tenancy
VfM
Tenant
involvement and Neighbourhood
empowerment and community
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8. A local VFM “offer”
 Resource allocation and VfM arrangements
(for each service-delivery related Standard)
– Relate spending to results
– Redistribution/divest/invest of new funds
explained
 Performance offered: Cost and quality
baseline - inclusive of benchmarks and
opportunities identified
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9. A local VFM “offer”
 Performance arrangements: Visibility of high
cost/low performance service areas (within
other Standards) and actions to improve
 Performance failure: Triggers, Materiality,
Sourcing and Intervention arrangements
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10. Business Plans..... Service Charges....
The Plan.....
The Acid Test.....
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11. Case Study – TSA Standards
 North East ALMO, 8,500 homes, Two Stars
 In-house performance system
 Procurement focused
With Tenants, reviewed all KPIs alongside TSA
Standards, amending, ditching and finally
aligning Standards/KPIs and Tenant expectations
read for 1st April 2010 launch.
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12. Short Notice Inspection
SNI rating achieved
 39 SNIs completed in
60%
2009/10 50%
 9 service areas covered
40%
– 36% Repairs
– 31% Gas 30% VfM
– 13% Resident Involvement Access
Diversity
20%
– 9% Income
 Diversity ratings an 10%
emerging trend….but at
least 0%
Strengths In balance Weaknesses
VfM 26% 50% 24%
 VfM isn't quite as bad……. Access 23% 54% 23%
Diversity 18% 46% 36%
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13. SNI – Where its done well
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14. SNI – Some examples
 Strategic approach and embedding
– There is clear strategic direction for managing VfM through a
steering group, procurement strategy with a timetable of
proposed reviews, savings register and appointment of a cost
manager
– Uses cost and performance information to implement more
efficient ways of working, addressing higher cost services,
reducing costs to the association, and challenging contractors
– VfM is included in training for staff and briefings
– All staff have at least one efficiency target to achieve as part of
their appraisal
– VFM features as high level targets in business plans
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15. SNI – Some examples
 Resident involvement
– Resident involvement impact assessment are clear
and thorough, assessing outcomes from the activities
and what has been achieved, against the costs
– An amount is also set aside as an Excellence Fund for
initiatives or service improvements. How the money is
spent is agreed by a panel of managers and residents
– Tenants are involved at all stages of the procurement
process
– Identifying residents’ priorities in the residents’
business plan process
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16. SNI – Some examples
 Improvement and performance
– Service reviews have focused on high cost areas and identified
savings are being reinvested in priorities
– Performance reporting links cost and quality measures with
some customer satisfaction indicators
– Business transformation programme has already delivered £1.5
million in efficiency savings
– Value for money is built into decisions around setting the
budgets and the costs of delivering and improving services are
scrutinised
– Considers the cost, the quality and the level of service
customers expect and are satisfied with
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17. SNI – Some examples
 Procurement
– A procurement plan sets out contracts in place
and timescales for review
– Relevant staff are given responsibility to lead on
contracts
– A purchasing guide is available on the Intranet,
which includes a flowchart to simplify options
available based on values
– Sufficient time to consider procurement options
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18. Case Study – VfM Register
 North West LSVT, 5,500 homes
 Social Enterprise focus
 Own maintenance workforce
In-built VfM and improvement register as part of
log-on to IT Network
Builds body of auditable evidence
Forms part of Annual Awards for performance
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19. The Mighty Have Fallen
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20. Summary
 Plan for a fiscal challenge to your business and
improvement plans
 What ever the Standard....
 Check your measures and intervene quickly
 High Cost/low performance first
 Transparency and focus from Website to staff
members – The Golden Thread
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21. Dylan.Chipp@voluntas.co.uk
07813065588
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