Bringing Housing Together

12-13 July 2011Greg Budworth

SIMPLE DIFFERENTIATION TABLEGOVERNMENT, BUSINESS AND NFP SECTOR

GOVERNMENT SECTOR

BUSINESS SECTOR NOT FOR PROFIT SECTOR

OWNERSHIP Broad Community Shareholders or Partners etc

Community members having interest (members)

OPERATING CONTROL

MinisterGovernment Department

Directors Management Directors Management

PRIMARY DRIVER Public Good Wealth Generation Public Good

OPERATING PREMISE Efficient and effective use of allocated public funds for the public good.

Effective and efficient use of owners equity to achieve priority business objectives in pursuit of wealth generation.

Effective and efficient use of self-generated and/or competitively secured public funds for public good.

COMPETITIVE ENVIRONMENT

Relative monopoly Usually highly competitive

Usually moderately competitive (and becoming more so)

Compass Profile

Company limited by guarantee registered with ASIC A charitable organisation having, PBI, ITEC & DGR statusA Class 1 registered Community Housing Provider under

the Housing Act 2000 (NSW) Has community corporate membership base with

democratically elected skills-based boardCore and traditional business is tenancy and property

management for low to moderate income households predominately via government programs

Additional business involves project management of property upgrading and development

A proportion of additional business surpluses fund our client focused GROW program – a major community development initiative

Compass Profile continued

Compass is the largest regionally based community housing provider in Australia

Head Office at Hamilton and Service Centres at Newcastle, East Maitland, Central Coast, Muswellbrook, Dubbo and Broken Hill

Staff of 98Aspirations and programming re social inclusion,

sustaining tenancies under GROW ProgramAchieved a silver level award with DECCW for

environmental sustainability

Total Sustainability Program- GROW

GROW A Compass

Total Sustainability

Initiative

Green (Environmental sustainability)

Neighbourhood and building design and

development for 21CRetrofitting

environmental features to dwellings

Greening the workplaces

Responsible (Social Sustainability)

Community contribution

Economic participationGenerational

advancement Tenant Participation

Opportunities (Corporate sustainability)

New environmental business

developments efficiencies & improvements

Wellbeing

(Personal sustainability)

Health & NutritionEsteem and well-

beingSecurity of tenure

Compass is a founding member of PowerHousing Australia – an industry representative body which has a membership of 30 large NFP housing organisations with development focus.

Member of International Housing Partnership with over 160 NFP housing providers from USA, UK, Canada and Australia.

Managing circa 3,300 properties with annual operating activity of $35M and net assets of $200M.

It is anticipated that Net Assets will increase to circa $300M by 31 December 2011 with properties under management to increase to 3,500.

STEPS Housing, Tasmania, is a subsidiary of Compass Housing

Compass Profile Continued

Compass Profile Continued

2004 2005 2006 2007 2008 2009 2010 20110

500

1000

1500

2000

2500

3000

3500

Managed Properties

Compass Profile Continued

2004 2005 2006 2007 2008 2009 2010 20110

10

20

30

40

50

60

70

80

90

Staff

Compass Profile Continued

2004 2005 2006 2007 2008 2009 20100

5

10

15

20

25

30

Net Assets 2004-10 $M

Compass Profile Continued

2004 2005 2006 2007 2008 2009 2010 20110

20

40

60

80

100

120

140

160

180

200

Net Assets 2004-11 $M

Debt/Equity/NRAS Schemes combined: Grants ($8.9M) + Equity ($2.9M) + Debt

($7.9M) for 69 new dwellingsSocial Housing Growth Schemes combined:

Grants ($22.2M) + Debt ($1.5M) for 90 dwellings

Future Planned Developments: Debt ($38.6M) + Equity ($28M) to develop 217

dwellings over next 10 years – with 148 (68%) of those in the next two years

The combination of leveraging assets, equity and grants for developments

Preparing for Growth

“Okay, whose in charge of track building??”

Preparing for Growth continued

Organisational Design (Transformational): Plan years ahead despite uncertainty; Establish and promote clear vision, mission, values Paradigm shift – reactive dependent to responsible

partner

Organisational Structure Skills-based independent Board and sub-committees Skilled Executive Staff Strong reporting and administration regime Establish growth principles to increase staff engagement

Particularly recruitment and advancement Pushing down responsibility and reward mechanisms

Preparing for Growth continued

Prepare stakeholders: board, staff, clients etc.Proper Business Planning:

Strategic and Operational, Budgets (short and long term), Asset Management, HR and IT, SWOT, PELTS analyses

Increase stakeholder engagement strategiesIdentify, treat and monitor major risksIncrease objective external audit processes

(separate audit firm, Registration and Accreditation, OHS, ISO9000)

Thank you for your invitation to present this information to your forum.

Greg Budworth, CEO greg.budworth@compasshousing.org (02) 4920-2600

Compass CEO Contact Details