future proofing your repairs service pdfs/presentations... · future proofing your repairs service...
TRANSCRIPT
Future Proofing Your Repairs Service
Richard Woolfall
Assistant Director Asset Management
Magenta Living
Magenta Living
• Social Housing has changed more in the last 12
months than it has in the last 20 years.
• Welfare Reforms has changed the landscape of
social housing
• For many RP’s the guarantee of a steady flow of
customers is diminishing
• Customers access to money has diminished, the cost
of living increased, council tax relief and other
benefits reduced
• Should repairs continue to be viewed in terms of
average spend and response times?
The World has Changed
• More money flying around
• More certainty over funding
• More availability of funding
• Rental income largely secure
• Repairs and capital investment two separate
functions
• Thou must meet Decent Homes
• Little imperative for repairs to be viewed as a
commercial service
• Technical, Finance and Housing not linked
The Old World
• Much less money flying around
• Much less certainty over funding
• Less availability of funding
• Rental income less secure
• Decent Homes is no longer a sole investment focus
• The creation of an institutional class private rented
sector
• Repairs need to be viewed as a commercial service
• Major imperative to have an active asset
management strategy
The New World
The Impact of Welfare Reform
Impact on Arrears
Impact on Customers
Impact on Maintenance
Performance Year on Year
The impact upon Magenta
• up 11% Void turnover
• down 9.5% Void rent loss
• up 19.9% Void expenditure
• up 3.5% Repairs expenditure
• Welfare Reform has had a direct impact on all areas
of social housing
• Any effective repairs service needs to understand its
role in terms of performance and delivering value in
context of a sector with diminishing income security
• A repairs service needs to understand the rules of the
game in terms of what its trying to deliver
Repairs and Welfare Reform
You can find yourself a little lost !!
If you don’t Understand the Rules?
• Corporate objectives
• Life after Decent Homes
• Sustainability / Energy
• Value for Money
• Compliance
• Reduction in net tenant income
• Lack of secure rental income to fund repairs
• Business Plan Affordability
• Tenants aspirations in terms of service delivery and
repairs standards
What are the Rules of the Game?
• It’s all about getting 3 Stars
• Standardisation of service delivery is the only way
• We will have the same property portfolio in 30 years
time
• Capital Investment and Repairs are two separate
functions
• Asset Management is all about Capital Investment
Dispelling the Historical Myths
• Cannot develop a repairs strategy without
understanding the corporate objectives and the
impact of welfare reform
• Repair of existing stock verses developing of new
• The standards the organisation seeks and can afford
to achieve
• Business Plan constraints
• Effective procurement
• Value for Money and customer service standards
Corporate Objectives
• Measure the long term maintenance performance of
your stock
• Use modelling techniques to analyse value to the
business plan
• Establish an assumptions base line from which to
measure performance and make maintenance
investment decisions
• Identify properties which are not meeting their
maintenance performance targets requiring option
appraisal
Effective Repairs Performance
• Maintenance costs / performance data that can be
disaggregated
• Rent performance
• Void information
• Accurate stock investment data
• Accurate compliance data
• Accurate property energy performance data
What Information is Required
• Strengthen the business plan through effective
maintenance management
• Make more efficient use of maintenance resources
• Consider long-term maintenance strategies for under
performing stock
• Make repairs part of investment decisions
• Engage Housing Management in decisions
• Communicate decisions and reasons to staff and
tenants
• Use maintenance to facilitate change
Active Maintenance Strategy
• The new world has changed long-held presumptions
about stock management
• No longer about replacing kitchens and bathrooms
• Landlords need to make stock desirable / affordable
for a new customer base
• Are organisations delivering the right service, right
product, at the right cost, for the right market?
• Maintenance strategy needs to support the business
requirement to protect rental income
New Strategy for a New World
Its difficult to have a robust approach
to maintenance without
understanding the whole picture
Key Message
• Implemented a rent loss mitigation strategy
• Identification and support to effected tenants
• Pro-active re-housing of affected tenants
• Increased rent collection resources
• Examination of options for flat conversion schemes
• Manage the side effects i.e. Increase in voids
• Fundamental review of approach to maintenance
The Magenta Approach
• Apply the three ‘P’s’ to facilitate change
• What does a maintenance service needed to look like
in terms of:
Options for Change
Physically Politically Psychologically
The 3 ‘P’s’ of Change
Fit for purpose
maintenance service
Physically
Structure
Resources
Value
Psychologically
Culture
Leadership
Vision
Politically
Relationships
Reputation
Strategic friendships
• CiH Working Together Repairs Project
• Consolidation of existing maintenance projects
• Setting the vision
• Identify the challenges
Cultural change
Quasi social commercial focus
Quantify Value
• Collaboration with DLO & Housing Management
• Identify common objectives and differing needs
The Project
The Art of Repairs
Steering Group
Procurement
Strategy
Review
ICT Support
Plan
DLO
Change Plan
Home
Standard
Review
Voids Service
Review
Responsive
Repairs
Service Review
Growth
Strategy
Cultural
Development
Plan
R&M
Cost Model
Strategy
Asset
Management
Strategy
Review
CIH
Steering
Group
Report a Repair
Project
Customer focused
service standard
document
Customer focused
service model
Customer focused
service model
Fit for purpose VfM
R&M service
Fit for purpose VfM
R&M service
Fit for purpose R&M
SLA
Fit for purpose
service delivery
structure
A business focused
culture & staff
development
A business focused
culture & staff
development
Enhanced customer
focused access to
R&M services
A “Golden Thread”
of IT support
Establishment of
strategic friendships
& diversification of
asset base
Enhanced return on
investment
• Creation of a quasi social commercial maintenance
service
• Development of a broader customer base
• Diversification of approaches to service delivery
• The measurement of maintenance value
• Reduction in costs / improved quality
• Establishment of strategic friendships
• Cultural “bye-in” from staff
• A repairs model that supports the corporate asset
management strategy
Project Outcomes
• Commercial maintenance model
• Broader customer base
• Differing approaches to service delivery
• The measurement of maintenance value
• Cost reduction targets
• Identification strategic friendships
• Cultural “bye-in” from staff – Times Top 100
• A repairs model that supports the corporate asset
management strategy
Outcomes to Date
• There is no silver bullet
• The rules are there are no fixed rules
• Need to understand the question – what are the
corporate objectives
• Need to model and / or understand the performance
of stock against the objectives
• Develop a realistic plan
• Develop the Maintenance Strategy as part of the
Asset Management Strategy
• It’s no longer about average repair costs and
response times
Back to the Original Question
• You can support the corporate objectives
• You can target maintenance expenditure for greatest
impact
• You can provide an affordable service that tenants
desire
• You can provide a broader service to a wider range
of customers
• You assist towards the mitigation of the impact of the
welfare reforms
• You can develop a Maintenance Strategy that
compliments the Asset Management Strategy
If You Get it Right
