Celtic Horizons – balancing

Governance challenges

About me

• Director of Finance & Corporate Services at United

Welsh (18 years)

• Board member – Celtic Horizons Ltd

• Trustee / Board member – IPA, UK consultation and

engagement charity

• Trustee/ Board member – PCN Britain, UK Christian

charity

United Welsh - our area

• 6,000 homes

Drivers for change - provision of Asset Management

• Improve customer journey and satisfaction

• Effectively manage health & safety risk

• Optimise contracts – manage / retain staff / local jobs /

VFM

• Consistent culture of continuous improvement

• Tax efficient

• Challenge - management / technical skills?

• Challenge - impact different working practices / culture

The Process

• Consider options – DLO, outsource, insource, WOS

• Clear vision and deliverables

• Hearts and minds workshops with staff and tenants

• Engage stakeholders including existing providers

• Regulator and Lender consent *

• Commitment to identify partner with aligned values

• Positive ‘competitive dialogue’ process for a WOS

An unholy relationship?

• Mears PLC

• England based

• Profit / margin

• Culture – low pay, blue-collar?

• Corporate values?

• Contractual compliance

Celtic Horizons launched – March 2013

• 100 employees TUPE from 6 companies (including

United Welsh)

Our Team

our people“I pledge to deliver an excellent customer

service, right first time, everytime”Leanne Davies

Customer Repairs Coordinator

“I pledge to improve customer satisfaction

on all jobs I undertake”Anthony Glover

Multi Skilled Operative

“I pledge to act as an advocate

for Celtic Horizons, be efficient and carry

out my duties to the best of my ability”

Keith Gregory

Fire Alarm Service Engineer

Community Judges

• A key part of the business

• 6 regular members

• over 600 hours contributed per

annum

• Regular faces at our monthly

“Tool box talks”

• Tenant Inspector Service –

Quality Control

our people

our people - additional jobs

• Work placements

• Apprentices

• Jobs for tenants

• Six Sigma Green Belts

• Management training

programme

• Extensive training

programme

our people - home

12

4

5

94

2

8

20

11

28

38

Our employees

Outcomes

• Achievement of targets

• Tax efficiency

• Increased investment in Equipment & People

• Improved Tenant Involvement

• Improved Targeted Recruitment & Training

Award Winning Contract

Legal Structure – Two TPC2005 contracts

* Contract 1 *

RSL – ‘Client’

Contractor –

‘Service Provider’

WOS –

’Labour

Agency’

* Contract 2 *

Governance Challenges - Mears

• ‘Service Provider’ – price sensitive performance targets (KPI), health and safety responsibility

• Drivers? Control and influence?

• Contractual – Core Group membership 50:50

• Contractual – all reasonable instructions

• Management – initially senior member Mears employee, later direct Celtic employee

• Senior staff relationship / openness

Governance Challenges – Celtic Horizons Ltd

• ‘Labour Agency’ – employer of 100+ people

• Not the Service Provider

• Regulator requirements – independent Board membership

• HMRC expectations – separate legal entity

• RSL accountability? RSL control and influence

• Group / Staff identity

• Other activities – market sales, CSV

Governance Challenges – United Welsh

• The Client / Group Holding Company

• Accountability? For what? What is different?

• Contract management – Core Group

• Performance reporting

• Budget management

• Group role?

Lessons Learned

• Clarity of vision – shared by Board and Executive

• Full engagement with all stakeholders /

communicate changes / Board throughout

• Contractual due diligence

• Partnership not contract

• Confusion between brand and entity

• Group / staff identity

Lessons Learned

• Clarify ‘partnership’ priorities & how we want to

treat ‘our people’:

• “A partnership recognises common interest in

the success of the venture but also the

legitimate differences of all the parties”