Because youre worth it! VALUE FOR MONEY David Lloyd
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Transcript of Because youre worth it! VALUE FOR MONEY David Lloyd
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Because youre worth it! VALUE FOR MONEY David Lloyd Slide 2 Repairs day-to-day/reactive Improvements/cyclical maintenance Customer service Estate management Welfare Benefits/Money advice Anti-social behaviour Tenant Participation Service charge items Community Development projects Gardening/cleaning communal areas Money/benefits advice Information e.g. Newsletters/leaflets out of hours services Tenant Participation Supporting People non housing initiatives What services do landlords provide? Procuring/tendering Office buildings & supplies Stationary Travel mileage/vans etc Staff training IT Contracts Insurance Loans/bank charges Consultants Marketing/publicity Salaries & benefits Slide 3 Austere budgets Welfare reforms rental income Increased demand Affordable rents Calls for transparency and accountability Regulation framework Tenant Scrutiny customer expectations New technology Competition Landlords doing more non housing initiatives Drivers for VfM in social housing Slide 4 What do we mean by Value for Money (VfM)? Slide 5 VfM = do the right things + do things right. The benefit from the goods and services an organisation both acquires and provides, within the resources available to it. What an individual pays for something and the value that individual derives from it. The optimal use of resources to achieve the intended outcomes. Slide 6 The Three Es 1.Effectiveness = achieving what you set out to achieve (outcomes) 2.Economy = careful use of costs 3.Efficiency = carrying out activities/processes in a timely, simple manner with minimum waste. Slide 7 Example boiler replacement programme 1.Effectiveness = customer living in a warm, quality, well maintained and low energy home. (outcome!) 2.Economy = the cost of supplying, installing and maintaining - per boiler 3.Efficiency = the number of boilers fitted satisfactorily within a time period Slide 8 What is social value ? Slide 9 Social value is a way of thinking about how scarce resources are allocated and used. It involves looking beyond the price of each individual contract and looking at what the collective benefit to a community is when a public body chooses to award a contract. Social value asks the question: If 1 is spent on the delivery of services, can that same 1 be used, to also produce a wider benefit to the community? a concept which seeks to maximise the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves. What do we mean by Social Value? Slide 10 Example boiler replacement programme 1.Effectiveness = customer living in a warm, quality, well maintained and low energy home. (outcome!) 2.Economy = the cost of supplying, installing and maintenance - per boiler 3.Efficiency = the number of boilers fitted satisfactorily within a time period 4.Social Value = contract awarded to local contractor Additional apprenticeships/jobs created. Slide 11 What is environmental value ? Slide 12 Example boiler replacement programme 1.Effectiveness = customer living in a warm, quality, well maintained and low energy home. (outcome!) 2.Economy = the cost of supplying, installing and maintenance - per boiler. 3.Efficiency = the number of boilers fitted satisfactorily within a time period. 4.Social Value = contract awarded to local contractor.Additional apprenticeships/jobs created. 5.Environmental value = old boilers are recycled, new boilers manufactured in an eco friendly way and are most fuel efficient. Slide 13 Tenants shaping Value for Money services Small Group Exercise What do tenants value? What matters most in terms of the service they receive? Slide 14 Tenants should: be involved in prioritising resource allocation, shaping services, identifying areas for improvement and the redirection of savings make informed choices between costed service options within available resources what services are developed and to what standard, and (by implication) what does not get done work with social landlords to develop performance and success measures Role of tenant Slide 15 Tenants should: monitor performance, using a range of performance and benchmarking data, and hold the social landlord to account be involved in and sign-off any VFM assessments help to shape any specification for services that are being procured externally Role of tenant Slide 16 1.Shaping VfM services 2.Assessing/monitoring/scrutinising services 3.Making decisions about VfM Involving tenants in Value for Money (VfM) Slide 17 VfM monitoring group Tenant suggestion scheme/email Dear Prudence (Connect Housing) Every day points of engagement Using Tenant Profiling information Monitoring trends in complaints/compliments from Tenants Participatory Budgeting exercises Tendering/Procurement groups local/corporate Project task and finish groups Involving tenants in Value for Money (VfM) Slide 18 Tenant Inspectors Customer journey mapping sessions Mystery Shoppers Scrutiny Groups Board Members Engaging tenants in where to reinvest savings Feeding back to tenants Involving tenants in Value for Money (VfM) cont. Slide 19 1.Senior management/Board support 2.Value and respect tenant views 3.Staff have skills and confidence to involve tenants 4.VfM related performance information available and easily understood 5.Reporting structures in place 6.Tenants have interest in the issue/service 7.Enough knowledge/information 8.Tenants have confidence and skills to take part. 9.Feedback on what has been achieved Involving tenants in Value for Money (VfM) Conditions needed to make it work... Slide 20 Tenants may need to understand..... Performance management arrangements Baseline information Benchmarking information Procurement and contract management Partnerships and shared services Business Processes Good practice Equality requirements/Tenant Profiling Regulatory and legal requirements Conditions needed to make it work...