Corporate Strategy 2020 – 2023

Executive Summary

This strategy aims to set out the primary objectives for Homes in Sedgemoor (HiS) for the period April 2020 – March 2023. A clear strategic plan is vital for any organisation – it sets the direction for the future and serves as a guiding beacon for staff and Board to focus on.

The strategy has been informed by a combination of discussions with key stakeholders and an analysis of what the organisation currently excels at and areas where improvement is desired or needed. The strategy has also been developed in the context of local and national operating environments, both of which are fast changing and uncertain.

The strategy is built upon the following framework:

The Strategic Objective is to be the best managing agent in England by 2023.

To achieve this strategic objective there are three Core Pillars:

1. Great Services to our Customers
2. Good Quality, Safe Homes
3. Build a Stronger Business

Each Pillar is delivered through a small number of Core Objectives and associated delivery plans. Success will be measured and reported through Strategic Performance Indicators.

Our behaviours to achieve success will be underpinned by three new company values:

1. We will be Focused                   (F)
2. We will be Innovative                (I)
3. We will be a Trusted partner     (T)

In summary, this strategy seeks to place HiS at the front of excellent housing management in the 21st Century and deliver the very best services, the safest homes and the strongest possible voice to our customers.

According to the National Federation of ALMOs (NFA), “Never has the need for a good supply of well-run social housing been more obvious…” (NFA Annual Review 2020) so as we pass the centenary of the 1919 Addison Act and the birth of council housing, this strategy seeks to place HiS at the forefront of the ALMO sector with modern, fit-for-purpose, highly customer-focused and locally targeted services.

Our Values

To ensure the effective delivery of this strategy we have reviewed our corporate values, as mentioned above, in order to underpin our new strategic objectives. The values are as follows:

Focused

As managing agents, we will be completely focused on our role and responsibility in order to deliver the very best services possible. Being focused is not about doing the most work but doing the most important work to the highest standard.

Innovative

To succeed we will be open to new ways of thinking and working. We must create a working culture that is naturally dynamic and embraces innovation and learning so that we continually assess how we do things and improve them.

Trusted

Trust is the belief and confidence in the integrity, reliability and fairness of a person or organisation… an essential human value that quantifies and defines our interdependence in relationships with others. Our behaviours will engender trust in and amongst us.

Where are we now?

HiS is an Arms-Length Management Organisation (ALMO) established in April 2007 with the remit of managing and maintaining 4,200 homes on behalf of Sedgemoor District Council.

We are among 30 other ALMOs nationwide managing a total stock of just over 400,000 affordable homes. First established in 2002, ALMOs were created to provide resident-focused management by enshrining a strong voice for customers.

This founding principle remains a strong part of the ALMO ‘DNA’ to this day and HiS intends to remain at the forefront of best practices in this area.

In return for managing Sedgemoor District Council’s housing stock, HiS receives an annual management fee.

Sedgemoor District Council remains our sole shareholder and our responsibilities for managing the stock are set out within a 30-year management agreement (most recently renewed in 2014).

Importantly, HiS is not an asset-owning organisation but exists solely to manage Sedgemoor District Council’s homes in a proficient manner. Failure to do this could result in a default of the requirements in the management agreement and, ultimately, termination of the agreement entirely. For this reason, it is imperative that HiS always meets the requirements of the management agreement thus securing its annual fee and safeguarding its long-term future.

An analysis of strengths/weaknesses/opportunities/threats (SWOT) with the HiS Board in late October 2019 identified a number of factors which are captured in Table 1 on the next page.

Strengths Customer focussed Innovative in delivery Collaborative culture Staff belief and commitment Some financial security (reserves) Well networked Good external reputation Good performance Stable Board and good at challenging Stable front-line staff Expertise and well-trained staff Committed Board Committed staff

Weakness Communication to customers Customer empowerment and engagement (in service delivery, design and strategy) Reliance on historical data Income entirely dependent on the management agreement SDC relationship could be stronger Out of sync with SDC financially- payment terms and sequencing Strategic alignment with SDC could be improved HiS is a ‘Thin’ ALMO but could offer more to SDC HiS lacks commercial edge opportunities, management, or simply saying ‘no’ Shared IT Partnership skills could be a better Legacy weakness HiS can be overly reactive

Opportunities Develop a more business-like partnership approach with SDC – their needs and ours ‘Ageing in Place’ agenda – lifetime tenancy plans New Strategic Management Team An options appraisal for future delivery of core services i.e. repairs Development of new homes Cost-effective energy-efficient homes (climate agenda) Sheltered housing – new service model Embrace technology /adaptations & service enhancement Sheltered Model – sell services Remodelling of stock Shared services with local partners New skills/experience (CEO) Build customer capacity to better scrutinise business

Threats Management agreement and funding Political change, instability and reorganisation Economic instability Hinkley impact on resources and supply chain HRA vulnerability Reliance on SDC services (SLAs) Service charging regime Hostile bids Independence Losing staff and good-will Losing customer good-will Historical political perceptions

The above analysis was undertaken with HiS management teams and there was clear common ground in the themes that arose.

In recent years HiS built an enviable external reputation for innovation, sector-leading leadership and good practice for which we received many awards.

However, recent reviews of core competencies identified that whilst the organisation was strong in many core housing competencies, there was tangible room for improvement in some areas.

In this context, this strategy for the next three years encompasses a strong element of ‘back to basics’ in delivering the exact requirements of the management agreement – in essence keep doing what the organisation does well and improve upon those areas where HiS could be stronger. This is the guiding principle of this strategy.

The operating environment in which HiS operates is one that is constantly changing and evolving.

Several years of austerity severely affected the ability of our customers to afford their rent as welfare reforms sought to pare back public expenditure.

An imposed 4-year rent cut on the affordable housing sector served to reduce income and applied the brakes to the output of much-needed new homes.

The Grenfell Tower fire tragedy occurred mid-way through the rent cut and served to remind the nation of the housing predicaments of those for whom affordable housing should be provided. It also served as a wake-up call to housing organisations that failing to undertake their basic essential duties in a sufficiently proficient manner can have unimaginable consequences.

This strategy seeks to reconnect with our founding purpose and to ensure that our customers are well-served and kept safe.

Where do we want to be in 2023?

Set against the operating environment that currently exists and the assessment of HiS’ strengths, weaknesses, opportunities and threats, this strategy seeks to position HiS as an exemplar among ALMOs in England.

To achieve this we have built the strategic objective across three core pillars:

To be the best managing agent in England by 2023

Core Pillars:

Core Pillar 1: Great Services to our Customers

To deliver this objective the strategy sets out 6 core objectives. These are explained below:

1. Customers’ First

This objective reaffirms our commitment from the last HIS strategy and ensures that our customers (tenants, leaseholders and applicants) always receive the very best service from HiS. When delivering and shaping our services, customers will be front and foremost in our minds.

2. Modernise Services

Our ability to manage homes in the most efficient and effective way necessitates that we continually review our service delivery and seek to modernise as appropriate so that we have strong digital and non-digital service offers.

3. Customers will be equal partners with a strong voice and empowered to shape services

ALMOs and in particular HiS have a proud history of strong customer engagement. Ensuring that we listen to our customers’ voices is a business imperative if we are to successfully shape and deliver customer-focused services.

4. Services developed through profiling data

To aid the effective development of services and assess our customers’ needs, we must ensure that not only do we hear their voices but that we both gather and use the customer intelligence available to us.

5. Raise Opportunities

Our role in the lives of our customers is significant and extends beyond the provision of the home or services. We recognise the challenges that some of our customers can face and commit within this strategy to working with our primary partner (SDC) and external agencies to improve the opportunities open to them.

6. A local stakeholder and community enabler

Managing the largest concentration of affordable housing in Sedgemoor, HiS is mindful of its role within the communities in which it operates. Whilst our ability to support community development is limited through available resources, we nevertheless place considerable value on our community-building responsibilities as key community stakeholders. This role is not limited by our ability for the direct provision and we will utilise all community assets and services available to our customers.

Core Pillar 2: Good Quality, Safe Homes

To deliver this objective the strategy sets out 5 core objectives. These are explained below:

1. A strong safety & compliance culture

Ensuring that our homes and services are safe for our customers and staff is undoubtedly our most basic and important responsibility. Discharging our duties effectively requires a culture that places a strategic focus on safety and compliance.

2. High-quality asset investment programmes

An important part of our managing agent role is to develop and execute well-targeted investments in SDC assets. To be able to perform this task effectively, we must ensure that we have all the constituent parts in place – accurate stock data, sufficient funding and efficient and effective delivery mechanisms.

3. Have a strategic picture of asset performance

Our asset management strategy is designed to prevent SDC assets from becoming liabilities. When to (or not to invest) in the housing stock is a crucial part of our managing agent role and to do this we must ensure that we build and maintain a strategic picture of asset performance.

4. Fit-for-purpose homes

The assets we manage are of varying ages, styles and types. What once was considered acceptable or fit-for-purpose may now not be and it is our role as managing agents to both understand the stock and present to SDC well-grounded and coherent plans for ensuring the long-term suitability of their asset. We must ensure that the homes we manage are always compliant with all regulatory and legislative requirements.

5. Embrace the decarbonisation agenda

Addressing the climate change emergency is perhaps the greatest global challenge of the 21st Century. In determining what is an affordable home we must also be mindful not just of the rent charged but also the running costs for the occupant. We are supporting SDC’s aspiration to embrace the climate change agenda and will provide pragmatic and deliverable solutions for reducing stock-wide carbon emissions and improving home energy efficiency for our customers.

Core Pillar 3: Building a Stronger Business

To deliver this objective the strategy sets out 7 core objectives. These are explained below:

1. Greater Financial Strength

This strategy recognises that we are entirely dependent upon our management fee from SDC on whose behalf we manage the stock. We have limited reserves but recognise that our short-term finances will necessitate the consumption of reserves. This strategy sets out to rectify this position within the next three years.

2. Trusted Partner of Choice for SDC

SDC is our sole shareholder and counter-signatory to the 30-year management agreement. Whilst maintaining our independence we must ensure we continue to build upon this partnership and support SDC in its housing and wider strategic objectives.

3. People – Right People, Fully Engaged, Right Training, Agile

To be the best at what we do is only possible if we have the right people who are suitably trained and engaged. This strategy continues our investment in our people so that they can deliver great services to our customers. As an organisation and as individuals we must also be agile so that we can adapt to the changing operating environment in which we work.

4. Strong Governance & Stong Customer Voice

It’s essential that we make the right decisions in the best interests of the business and its stakeholders but this can be challenging. As we seek to build a strong business we must continue to improve our governance. Part of our success rests upon our customer engagement and therefore the capacity and confidence of our customer Board members are vital if we are to achieve our strategic objectives.

5. Commercial Mindset, Opportunity Aware

As a managing agent delivering a defined service for an agreed financial fee, we need to ensure that we effectively balance our services and our costs. We also want to seek appropriate new opportunities that are compatible with our management agreement and that will grow the business and deliver greater economies of scale or services.

6. Defined Role and Services

As a managing agent, our resources and capacity are limited so we need to ensure that we always focus on what is essential and beneficial to the long-term sustainability of the business. We must ensure that we remain open and pragmatic about what services we are best placed to deliver and what services others may deliver better.

7. More Homes Under Management

Under this strategy we believe we will be even better managers of housing, building on our existing reputation as a trusted partner. We want to embrace the opportunity for more affordable housing in our locality and position HiS to be the first choice for housing management.

How will we get there?

To deliver the strategic objectives contained within this strategy a delivery plan has been developed that encompasses each one of the three core objectives. These plans will serve as our yardstick for progressing the strategy over the next three years.

To enable the delivery plans to be effectively progressed and monitored, they are contained within Appendix 1 of this strategy.

Measuring Success

In order to gauge progress and performance in the delivery of this strategy, the following processes have been put in place:

Strategic Management Team (SMT) – Will review progress on a bi-monthly basis.

Board Updates – These will be presented to Board every 6 months during the lifetime of the strategy. The update will detail progress against delivery plans and incorporate a % completion and RAG rating.

Performance Indicators (PIs) – A suite of Strategic PIs has been developed in order to monitor progress across the strategy. These Strategic PIs will be presented to SMT each month and Board every quarter as part of the monitoring process.

Some KPIs will be set in the first 6 months of the strategy.

The suite is detailed in Table 2 below:

Strategic Pillar	Performance Indicator	Target	Strategic Lead(s)
Great Services of our Customers	Overall customer satisfaction	(Dec, 2019: 81%) March 2021: 84% March 2022: 87% March 2023: 90%	Julia Paling
	Percentage of services accessed digitally (TBC)	(Current: TBA %) March 2021: xx% March 2022: xx% March 2023: xx%	Julia Paling
	Percentage of customers engaged in services (TBC)	(Current: xx%) March 2021: xx% March 2022: xx% March 2023: xx%	Claire Tough
	Return on social investment (SROI)	March 2020: £555k March 2021: £600k March 2022: £700k March 2023: £800k	Claire Tough
	Annual customer scrutiny and shaping services activities	(Current: 3 PA) March 2021: 3 PA March 2022: 3 PA March 2023: 3 PA	Claire Tough
Good Quality, Safe Homes	Satisfaction with the quality of homes	(Dec. 2019: 83%) March 2021: 85% March 2022: 88% March 2023: 90%	Director of Asset Management & Safety (DAMS)
	Customers feeling safe in their homes (TBC)	(Current: TBC follow- ing first survey) March 2021: xx% March 2022: xx% March 2023: xx%	Claire Tough
	Compliance with Decent Homes Standard	(Current: 100%) March 2021: 100% March 2022: 100% March 2023: 100%	DAMS
	Completion of local ‘Shaping Your Community Plans’	(Current: 0%) March 2021: 85% March 2022: 95% March 2023: 100%	DAMS & Claire Tough
Build a Stronger Business	Run a budget surplus by April 2024 300 additional homes under management Housemark Indica- tors – Achieving “Relatively good performance at low cost” across all measures Meet all Management Agreement KPIs	(Current: – £ 203k) March 2021: – £465k March 2022:- £230k March 2023: – £115k April 2024: +£100k March 2021: 100 March 2022: 200 March 2023: 300 (Current: 1 of 8) March 2021: 2 of 8 March 2022: 4 of 8 March 2023: 6 of 8 March 2024: 8 of 8 (March 2020: 95%) March 2021: 100% March 2022: 100% March 2023: 100%	Ben Lane SMT Ben Lane Ben Lane
	Obtain Investors in People Platinum	December 2020 – Gold Achieved December 2022 – Achieve Platinum	Julia Paling

Resources

The resources required to implement this strategy are within the parameters of HiS’ medium-term financial plan and set within the context of our strategic objective to run a surplus budget in 2024. However, meeting our property compliance obligations as defined in this strategy will impinge upon our financial position and this is something that we will agree with SDC when reviewing the annual management fee.

Review

This strategy will be reviewed annually in line with bi-annual updates to the Board.

Related Documents

Appendix 1: Strategic Delivery Plans (available on request)

Appendix 2: Final Corporate Strategy Framework 2020-2023 (approved by Board March 2020)