Because you’re worth it!VALUE FOR MONEY

David Lloyd

• 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

• 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

What do we mean by Value for Money (VfM)?

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.

The Three ‘E’s

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.

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

What is ‘social value’ ?

“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’?

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.

What is ‘environmental value’ ?

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.

Tenants shaping Value for Money services

Small Group Exercise

What do tenants ‘value’? What matters most in terms of the service they

receive?

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

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

1. Shaping VfM services

2. Assessing/monitoring/scrutinising services

3. Making decisions about VfM

Involving tenants in Value for Money (VfM)

• 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)

• 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…….

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…...

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…...