ASSET MANAGEMENT STRATEGY 2018 - 2021 ENHANCING LIVES - Optivo
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FOREWORD Introduction and operating environment Sir Peter Dixon, Chair of the Board Formed in May 2017 Optivo is a major Where we use the term “resident” we are here is nothing more worthwhile than T 44,000 home, housing organisation, with a referring to tenants, leaseholders and providing homes for people who need turnover in excess of £300 million, operating lessees. them. For me, having a decent home in London, the South East and the Midlands. provides a firm foundation for greater We work with residents, local authorities, inally, where we refer to our costs and the F wellbeing. How well we maintain the and partners to meet housing need, and to drive for value we are including within that quality of our homes is fundamental create safe, sustainable communities for our approach to both the costs of service to the fabric of our society. Within our residents. We also help residents make provision but also the costs in use, i.e. the this Asset Management Strategy, I’m the most of their lives through jobs, training, daily cost to our residents of running our delighted to see the continued focus financial and digital inclusion. Effective homes and, equally important, keeping our on safety, service quality and efficiency. asset management underpins so much of service charges as low as possible. Equally important is our commitment what we do and is essential to achieving our to affordable warmth, a sustainable Strategic Plan objectives. Our homes are well-maintained having environment and employability and benefitted from ongoing improvement training opportunities. ithin the body of this document, the term W programmes, consistently meeting the “assets” refers to all our homes and offices, standards set by the Regulator of Social including home ownership and commercial Housing and its predecessors. properties such as student accommodation A word from the Chair and and hostels. Vice Chair of Resident Strategy Group Optivo homes include: Location of our homes orking alongside the team on this W London Kent Sussex Midlands Optivo strategy has been a real pleasure. A General 7% truly collaborative effort from start to Needs 67% 87% 83% 49% 67% finish, we’re more than satisfied it will Retirement 19% serve Optivo and its residents well. Housing 8% 3% 10% 38% 8% (HOPs) 50% Supported 4% 3% 0% 0% 2% Home Ownership 21% 7% 7% 13% 13% 24% Commercial* 51.5% 0% 36.8% 11.7% 10% Total homes 19,753 7,632 9,392 2,706 44,015 Contents London *Commercial includes student, key worker, market rented and care homes Introduction and operating environment 1 Kent Our asset management objectives 3 Sussex Keeping our residents safe with easy access Midlands to our social impact initiatives 4 Providing Sector Leading Services 6 Making the best use of our assets 10 Summary 14 Action Plan - Keeping our residents safe with easy access to our social impact initiatives 15 Action Plan - Providing Sector Leading Services 16 Action Plan - Making the best use of our assets 17 2 1
This is a time of unprecedented challenge The government still has reservations Our asset management objectives and opportunity for housing associations. about the efficiency of the sector and The demand for our housing products sees improvements as essential to release I n accordance with our corporate This means for our residents we will annually is high with many of our residents facing additional resources for housebuilding. With objectives, our Board, residents, staff and replace: new financial pressures following the our maintenance expenditure representing partner contractors have all helped us to ¢¢ Over 1800 kitchens and bathrooms introduction of universal credit and other such a large area of spend and with the jointly develop this strategy. The three ¢¢ New windows and doors to over welfare reform initiatives. The Government condition and safety of our resident’s strategic asset management objectives 1300 homes has committed to building one million homes a key driver of satisfaction, this asset underpinning this strategy are: ¢¢ Heating upgrades to over 1000 homes homes by 2020 and recognises housing management strategy will be fundamental ¢¢ Making the best use of our assets ¢¢ Over 550 electrical installation associations will be essential if this target to our future success. ¢¢ Keeping our residents safe with easy upgrades is to be met. Fixing the Broken Housing access to our social impact initiatives ¢¢ Over 100 full roof replacements Market, the most recent Housing White This strategy outlines our approach to asset ¢¢ Providing Sector Leading Services Paper, praised the sector’s recent record for management during a period of integration By the end of this strategy: housebuilding and put measures in place to and transformation. Our 30-year financial Consistent with our Strategic Plan there ¢¢ Over 96% of residents will be satisfied build upon this. From 2021 we’ll be building plan and reinvestment programme sets out are three cross-cutting themes running with their last repair 1,500 new homes each year. To achieve this how we’ll invest to make sure our residents through this strategy - value for money, ¢¢ Over 98% of residents will be satisfied it is essential that we find innovative ways remain satisfied with their homes and our co-creating with residents and valuing with planned improvements carried out to deliver our asset management services offices continue to perform well. our people. to their home as cost effectively as possible whilst ¢¢ 100% of our homes and estates maintaining the excellent levels of service e’ll sustain our investment and continue W We will outline what this means and how we will remain compliant in terms of we have agreed with our residents. to work with our residents to define our will achieve these objectives in the following satisfactory fire, electrical, asbestos, service standards. These standards will pages of this strategy. water, lift, gas and play area safety make sure we protect our assets, ensure certification. that our homes continue to meet our Our asset management strategy is ¢¢ 100% of our homes will be compliant regulator’s latest Standard, keep our supported by a detailed financial plan based with the latest standards set by our residents safe, and maintain consistently on our stock condition data. We review Regulator high levels of resident satisfaction. our Financial Plan and our investment ¢¢ 5400 homes will receive kitchen and programme each year and we anticipate bathroom upgrades spending on average annually: ¢¢ 3900 homes will be installed with new ¢¢ £16.2m for Responsive Repairs double glazed windows and modern (incl. DLO) front doors ¢¢ £5.5m for void works ¢¢ 3000 homes will receive heating ¢¢ £8.8 m for cyclical works and servicing upgrades ¢¢ £7.6m for compliance/health & safety ¢¢ 1650 homes will receive electrical ¢¢ £15.4m for planned works upgrades ¢¢ £26.6m for major capital works. ¢¢ 300 homes will have their roof covering replaced ¢¢ We will complete an office rationalisation programme ¢¢ We will achieve Gold status from SHIFT - Sustainable housing index for tomorrow. 3
Keeping our residents safe with easy access Our Health and Safety Forum will monitor all and viewers. We will review and where compliance data each quarter. Our Resident appropriate improve lighting and install door to our social impact initiatives Strategy Group and Strategic Board will entry systems. Keeping our residents safe in their homes is Listening to and working with residents receive regular reports to give them As well as improving our homes and top of the agenda for our Board, residents on safety is crucial and integral to the oversight. services we can also help to improve lives by and staff. It’s also top of the Government’s improvements we’ll make. Glen Cady Chair creating opportunities. This is underpinned agenda. To achieve this we will: of our Resident Strategy Group supports Residents will be able to access key data by our social impact strategy that has been this and says: about their homes online via MyAccount designed to transform lives with support ¢¢ W ork with resident repair panels to and the Asset Portal. We will continue to for: develop and implement planned and work with our residents via our local repairs ¢¢ Skills, jobs and enterprise cyclical standards panels to review and introduce additional ¢¢ Health & wellbeing “Resident ¢¢ Implement a programme of cyclical measures to ensure our residents feel safe ¢¢ Improved futures. safety and repairs and improvements within their homes. For example, delivering security is ¢¢ Integrate our health and safety an Optivo-wide Resident Safety Awareness Our asset management investment top of the processes, systems and information programme. decisions, business and supply chain agenda for ¢¢ Provide transparent information to partnerships are a significant platform to the Resident residents on our health and safety e’ll continue to support our residents to W create opportunities for our residents. In Strategy performance live independently in their homes through every project or job we do there is potential Group. ¢¢ Continue to offer adaptations, in adaptations and the use of assistive to create opportunities. To ensure we Residents partnership with local authority technologies. Old and new technologies maximise social impact opportunities in feel safe and secure when they are partners, to enable residents to live will sit side by side: sensors as well as grab asset management we will: listened to and are able to influence independently rails can be equally useful in helping a ¢¢ Apply and deliver social value the services they receive. We ¢¢ Apply and deliver social value resident to maintain their independence. obligations in work contracts with welcome Optivo’s commitment to obligations in work contracts with We remain committed to providing an supply chain partners providing sector leading services, supply chain partners in-house Equipment and Adaptations ¢¢ Work with partner businesses to strong governance and investment ¢¢ Work with partner businesses to service, working alongside our Local maximise voluntary social value and in information technologies. By maximise voluntary social value and Authority partners. giving back opportunities. bringing people and data together giving back opportunities we’ll be able to scrutinise Optivo’s ¢¢ Proactively apply recommendations Working with our Local Repair Panels and ogether we’ll create opportunities such as: T response to residents’ safety contained within Dame Judith Hackitt’s in consultation with our neighbourhood ¢¢ Skills, training and unpaid work concerns.” review in response to the Grenfell Tower teams, we will continue to develop our placement tragedy. planned modernisation, maintenance and ¢¢ Paid trainee work placements or access We will integrate all of our key compliance cyclical programmes. We will look at areas in to apprenticeships databases along with our stock data addition to compliance to ensure our ¢¢ Training to help residents to prepare into one single database linked to our residents feel safe and comfortable within and compete for job roles and work key reporting framework by March 2019. their homes. Reflecting feedback from our opportunities Future transformation will see this system residents we’ll specifically develop our key ¢¢ Workforce support including coaching developed into a mobile platform, providing replacement standards such as modern and mentoring real time reports. Our asset management composite front doors to incorporate ¢¢ Giving back support for Optivo and our compliance team will manage and audit the provision of simple and effective Fresh Visions charities. all of our key compliance areas. They will safety measures such as security chains ensure procedures are followed and actions completed to set timescales and standards. 4 5
Providing Sector Leading Services Providing sector leading repairs and Within our Strategic Plan we have set an Over the course of this strategy we will We recognise the need to create both maintenance services means consistently ambitious service target (Net Promoter measure customer satisfaction with our digital and non-digital communication delivering high levels of satisfaction while Score). To achieve this we must ensure services both in real time (using dedicated channels for our residents. As more delivering value for money. To achieve this residents are happy to promote us and teams and integrated technologies) and and more of our residents adopt digital we will: are satisfied with their homes and repair approximately one week after a repair channels, we will collect information to ¢¢ Continue to design and co-create our service. Reflecting residents’ views and our or improvement is completed. This dual assist us in tailoring our services in the service with our residents, staff and core customer offer we’ll: approach will help resolve residents issues future. partners ¢¢ Make it easy to use our service as they arise, preventing frustrations from ¢¢ Embed a service excellence culture in ¢¢ Do what we say we’ll do escalating into formal complaints. And we’ll 40% our asset management service ¢¢ Be clear about when we’ll do it also pick up a more considered view of the ¢¢ Train, develop, and value our people ¢¢ Listen to customers to improve what complete service received by telephoning 35% so they are productive and deliver high we do our residents a week later; their responses 30% quality, consistent customer service ¢¢ Ensure staff are respectful and happy to filtering through to our Net Promoter Score. ¢¢ Implement a dynamic scheduler initially help. We will continue to develop systems to 25% for our London region by December monitor our live operational performance; 2018 and by the end of this strategy, Our Resident Governance structure enabling us to respond when corrective 20% 40% nationally provides an effective way to truly improve action is required. 15% ¢¢ Communicate improvement our property and asset management 26% programmes and maintenance services. We work as a team with members e have implemented new responsive W 10% information to our residents via our of our Local Repairs Panels, discussing all repairs standards, developed with our 18% 16% MyAccount portal. This will enable our issues and suggestions. We jointly establish residents, including advice on what our 5% residents to view and select a range of key messages and actions which in turn are residents should expect and how our 0% choices available to tailor future home sent up through Resident Strategy Group operatives should behave within our Gen Gen Baby Silent improvement works, such as new and, if necessary, on to Strategic Board. residents’ homes. We will review our X Y Boomer Gen kitchens and bathrooms to their own planned works and cyclical standards by design, layout and colour scheme, by We’ll be clear about both our own and July 2018. These new standards will define This live data, along with new technology, December 2018 our residents’ repair responsibilities and the standard of work we’ll deliver and will will be fundamental to truly transform our ¢¢ Further improve our MyAccount portal empower them to undertake more routine advise residents what to expect before, repair services. by April 2020 to view more specific key home maintenance where appropriate to during and after the work is completed. data in relation to their homes help us to focus our resources effectively. ¢¢ Exploit new technology to drive We have a growing wealth of information efficiency and satisfaction. We aim to Our repairs customer satisfaction on our services, residents and assets. We invest in the latest boiler technology is consistently over 96% and our will use this insight to take evidence-based to pre-determine when components improvement programme consistently decisions. Our residents demographic are likely to fail and repair them before achieves satisfaction levels over 98%. by age profile is detailed below. During they go wrong. We will also continue During our integration and transformation this strategy we will use this information to research and, where appropriate, programme and while we seek to reduce to influence the ways in which we implement a range of sensor our cost per property, we are committed to communicate with our residents and to technologies to adopt an innovative maintaining high resident satisfaction. design our appointment systems and and pre-emptive approach to how we’ll major works programmes. For instance, maintain homes in the future. our “Generation Y” residents (born 1977 – 1995) have told us they would prefer more online services whilst our Silent Generation (born prior to 1945) still prefer direct communication. 6 7
Our new dynamic scheduler for our repair Once our systems are integrated, we will We are are keen to explore the use of To enable us to deliver our services more services will not only provide a more expand our research and implement new assistive technologies to facilitate bespoke efficiently we will ensure all of our staff are interactive appointment system, it will also technologies to deliver a pre-emptive planned maintenance programmes. One trained appropriately. We are aware our optimise the most suitable technician in service residents are proud of and would such example could be the use of drones asset management team and contractors terms of location and skill-set to attend recommend to others. We are currently to identify gutters which need clearing work in our residents’ homes every day and complete repairs within our agreed exploring the benefits of using 3D cameras regularly because of their proximity to and are a key part of the public face of timescales. This system will also ensure to create virtual reality tours of empty trees. We will do this in the third year of the Optivo. Our contract and performance all of our technicians have the correct properties and to validate the condition strategy. management frameworks will ensure all our equipment and materials to complete the of our homes at the point of letting. The staff and contractors promote our CORE reported repair, ideally during their first visit. ability for our prospective residents to Our Board and residents have asked us to values and service standards. We will embed The dynamic scheduler incorporates a Job view available homes online will be more investigate the number of homes which are our service excellence culture, delivering a Jeopardy Notification System escalating convenient and should help us to improve digitally-enabled. By the end of this strategy, cultural immersion programme from April the need for Corrective Action to our key our lettings time. In addition, validating the we will have researched and developed 2018 to March 2021. officers via our mobile platform. Overall condition of our homes prior to letting will a plan to ensure as many of our homes performance is measured separately by our strengthen our ability to recharge residents have a secure network to facilitate the safe Our values Customer Service Centre. who damage or neglect their homes. collection of data from smart thermostats, We are already reviewing the use of smart boilers etc… boilers to deliver real-time performance information and to pre-empt component A trial of a smart thermostat is failure. In the future we will look at bar- underway. The trial is examining coding to speed up stock replenishment whether the device can: and the benefits of linking a coding system ¢¢ Monitor boiler performance to each of our homes and key components. ¢¢ Reduce residents’ energy bills Such a system could enable our residents to ¢¢ Address high humidity levels – a quickly access our repairs portal by simply key cause of condensation and using a smart device to identify the code mould. on any identified component within their home. Extending mobile working will enable staff to work more efficiently too. Currently in use across our estate services, health and safety compliance and voids teams, by December 2019 we plan to equip all our surveyors and technicians with a mobile device able to access all of our key systems. This will allow them to access property repair history and to order a repair remotely; not just more efficient but a milestone in transforming our service offer too. 8 9
Making the best use of our assets ur asset management strategy is O ¢¢ R eview the performance and effective supported by our 30-year financial plan and use of our office spaces, ensuring they maintenance standards, setting out what, support our service delivery plans, our when and how we’ll invest in our homes. staff’s needs, offer value for money and Maximising value for money is implicit in support our energy and environmental every decision we make and everything targets we do. We will be transparent and able to ¢¢ Procure well using a blend of direct demonstrate to ourselves, our residents, service teams and external providers regulators and future partners we are ¢¢ Invest in improving the energy efficiency driving and delivering efficiency across all of our homes of our asset management services. Our ¢¢ Achieve Sustainable Homes (SHIFT) strategy is to balance cost versus quality Gold standard The accuracy of our stock condition data and our residents’ expectations. We’ll aim to ¢¢ Build new homes where we can provide is essential to efficiently inform our future reduce our costs per unit while maintaining services effectively and efficiently planned investment programmes. Initially high levels of customer satisfaction. ¢¢ Fully implement our Soft Landings* we will re-inspect approximately 20% of our To achieve this we’ll: initiatives to learn and continually homes each year to maintain good quality ¢¢ Work with our residents to review improve the standard and performance data for this purpose. This percentage will key materials, standards and choices of our new homes reduce as we become more confident in the offered within our improvement ¢¢ Implement a combined compliance quality of our data to adequately evaluate A key aspect to improving the overall programs database and monitoring system linked the performance of our homes. performance of our portfolio is using asset ¢¢ Use intuitive, real time and integrated to our corporate reporting tool data to make intelligence-led decisions. technology to drive improvement and ¢¢ Create a self-auditing compliance We will ensure that our asset management The implementation of our Active Asset efficiency initiatives support team resources are sufficient to meet our current Management tool, planned for June 2019, ¢¢ Continually improve our stock condition ¢¢ Deliver a common approach to each and future residents’ housing needs in will facilitate a new strategic approach data to inform our future investment compliance area with a specific terms of the type, location and standard of to asset management. By analysing the plans Management and Operating Plan. their homes. Our homes are in high demand performance of our homes we will spend ¢¢ Incorporate Building Information and we’ll work hard to make sure this our money wisely and achieve a return Modelling (BIM) data into our systems to The integration of our existing compliance remains so in the future. Together with our on every investment. We will monitor key enable us to obtain valuable insight and databases is underway and is our top residents we will understand their priorities drivers such as: tools to more efficiently plan, design, priority for the first year of this strategy. for future investment and encourage construct, and manage our homes in One common system will enable us to them to actively help us to transform our ¢¢ Internal Rate of Return (IRR) for each of the future effectively monitor and manage all of our services by attending and contributing at our homes ¢¢ Continually evaluate the demand, use key compliance risks together in one system our procurement and testing panels and ¢¢ Net Present Value (NPV) for each of our and financial performance of our homes assisted with live reports provided by our contractor performance review meetings. homes to strategically optimise the use of our corporate reporting tool. This information ¢¢ Average number of visits undertaken to assets and to support our disposals will be available to our front line services When we build new homes we’ll make our homes per annum policy via a detailed option appraisal via our customer services database and sure these are in places where we can ¢¢ Actual number of visits to each of our process our mobile platforms. An automated live deliver services effectively and efficiently. homes feed will also update our Health and Safety Our asset management team will work ¢¢ Void Rates Scorecard in real time to consistently with our Development, Operations and ¢¢ Maintenance Costs per Unit provide a live picture of performance. Commercial Services teams to inform our ¢¢ Rent Loss future development strategy. For all our new developments, we will continue to roll out Soft Landings. * Soft Landings is a client/resident liaison initiative designed to improve the quality of our new homes at handover. 10 11
Procuring new contracts or expanding Lastly it is vital our offices continue to our direct labour services affords us perform well and meet our business needs. an opportunity to drive efficiency. In During the first year of this strategy, we September 2017 we started a new repairs will carry out a rationalisation review and and maintenance contract within East assessment of their location, condition, Sussex using our Alliance Framework. We energy efficiency and suitability. This will expect to utilise this framework and to ensure our office infrastructure benefits commence a new contract within our Kent both our staff and residents and supports region by April 2019. Following a Value us in managing our homes into the future. for Money review of our Direct Labour Organisation (DLO) we plan to expand the service across our London stock, providing a great level of service at reduced cost All homes will be vacant at the point of sale from September 2018 onwards. As our and will be at a price not less than the value main concentration (22,070 owned and supported by a RICs qualified valuer. managed) of our homes are in our London region, savings will be significant: in excess On occasions, despite a property meeting of £1.7 million per annum. this criteria, we may decide not to dispose of it if there is a potential advantage to our Environmental sustainability is also part continued ownership. of our wider asset management agenda. The data collected will be used to evaluate Our aim is to achieve SHIFT Gold award by the future viability of our homes or groups October 2020. SHIFT is the sustainability of homes. Where potential poor financial standard for the housing sector and performance is identified, a detailed is backed by Government. The SHIFT Options Appraisal will be carried out in line assessment measures how we are doing with our Disposals Policy, to review and against over 50 environmental criteria, recommend the most viable option to including CO2 emissions, water use, landfill implement, which may include remodelling, waste and response to climate change tenure change or disposal. covering every aspect of our work. A new Energy and Sustainability strategy for We’ll consider disposal of our homes when Optivo (2018 – 21) will set out an ambitious they become void, where they are not programme to reduce our impact on the located within our core operational areas environment, reduce resident utility costs as defined within our growth strategy, or and deliver a more efficient organisation. where they are difficult to let or require a high level of future investment which The strategy will include commitments is disproportionate to anticipated rental to: income. ¢¢ Provide energy performance and energy advice Where disposal is recommended for a ¢¢ Improve waste management home or a group of homes, and the home(s) ¢¢ Adapt homes to climate change meet one or more of our Disposals Criteria, ¢¢ Influence our suppliers we will act in accordance with government ¢¢ Manage our operations in a sustainable regulations as well as our own Operating way Regulations and Delegated Authorities. ¢¢ Embed a commitment to sustainability within everything we do as a team 12 13
Summary ffective asset management is a key E transformation period. This strategy will component to our ability to provide and take us to March 2021 by which time we maintain great homes and excellent well be taking a more predictive approach services. It determines whether our to asset management; we will have ensured residents are likely to recommend us and residents continue to be safe in their is pivotal to improving efficiency in our homes, and we will have sustained high business. We believe residents can help customer satisfaction levels while improving us to achieve our asset management efficiency. goals and so they are essential to delivering success. We also believe asset All of the actions contained in this strategy management is more than just bricks and can be found in the Action Plan that follows mortar and by using our influence, we can in Appendix One under the relevant themed create jobs and training opportunities heading. to enhance lives. As a newly merged organisation we are in an integration and 14
Action Plan - Keeping our residents safe with easy access to our social impact initiatives 2018-19 2019-20 2020 -21 Work with resident repair panels to develop and implement planned and cyclical standards Implement programme of cyclical repairs and improvements Integrate our health and safety processes, systems and information Provide transparent information to residents on our health and safety performance Offer adaptations, in partnership with local authority partners, to enable residents to live independently Apply and deliver social value obligations in work contracts with supply chain partners Work with partner businesses to maximise voluntary social value and giving back opportunities Proactively apply recommendations contained within Dame Judith Hackitt’s review
Action Plan - Providing Sector Leading Services 2018-19 2019-20 2020-21 Design and co-create our service with residents, staff and partners Embed a service excellence culture across our asset management service, including works to deliver our Planning to be Brilliant and 20/20 Programmes Train, develop, and value our people so they are productive and deliver high quality, consistent customer service (including delivery of Mary Gober Service Excellence and Park Simm Customer Friendly writing courses) Implement a dynamic scheduler called Service Connect initially into our London region Improve our My Account portal, so our residents are digital by choice. Make it easier to use and allow self-service. Offer more specific key data in relation to residents homes Communicate improvement programmes to residents via the customer portal; enable selection of resident choices for planned improvement choices, starting with kitchens and bathrooms Exploit new technology to drive efficiency and satisfaction.
Action Plan - Making the best use of our assets 2018-19 2019-20 2020-21 Implement programmes of planned improvements and cyclical works Work with residents to design and procure services Work with our residents to review key materials, standards and choices of our improvement programs Work with our development team to agree material specfications and standards; fully implement Soft Landings Implement an active asset management tool to help us to identify homes for option appraisal Strategically manage our assets to ensure they are performing well financially Continually improve our stock information to inform investment plans; incorporate BIM pilot data into our systems Use intuitive, real time and integrated technology to drive improvement and efficiency Procure well using a blend of direct service teams and external providers Invest in the energy efficiency and energy performance of our homes Implement a combined compliance database and monitoring system linked to our corporate reporting tool Create a self-auditing compliance support team Deliver a common approach to each compliance area with a specific Management and Operating Plan Review the performance and effective use of our office spaces, ensuring they support our service delivery plans, our staffs needs, offer value for money and support our energy and environmental targets.
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