Embedding VFM If VFM is now really about business effectiveness, what are the kind of behaviours, processes & practices you need to embed it in your organisation?

Achieving VFM: a model Let’s start with a model* of how you might achieve VFM…. *HouseMark work in progress

1.Purpose 2.Right activities 3.Right assets 4.Right delivery 5.Right outcome Effectiveness Economy Achievin g VFM and business objective s Business strategy & use of resources Evaluate success & review business strategy Efficiency strategic analysis & choices implementation strategic evaluation

1.Purpose 2.Right activities 3.Right assets 4.Right delivery 5.Right outcome Purpose – basis for an organisational definition of VFM The board should define VFM based on: clear understanding of what they are in business for – purpose & objectives - commercial head, social heart reconciliation of the value perspective of different stakeholders, including customers reconciliation of competing priorities across activities context such as PEST, client group, geography The provider’s VFM definition is likely to amount to the achievement of its objectives in the most cost effective way possible

1.Purpose 2.Right activities 3.Right assets 4.Right delivery 5.Right outcome Right activities Engage in the right things - business activities - to achieve objectives. The board’s strategic direction drives: the right mix of activities or products, eg social rents, affordable, supported, care, regeneration, tenant services the right allocation of resources between these activities - reconciled across development, stock improvement, front-line services, etc

1.Purpose 2.Right activities 3.Right assets 4.Right delivery 5.Right outcome Right assets Invest in inputs – housing assets & delivery model - to achieve objectives. This about economy: invest in the right physical assets of the right standard in the right places for the right cost coherent asset management - understand return on assets and the financial, social, environmental benefit of any investment invest in the right delivery model for the right cost about service delivery and back office functions about investment in people, offices and equipment…. … and the procurement of goods/ services from others …. …including consideration of alternative delivery models…..but you might have services to sell too….

1.Purpose 2.Right activities 3.Right assets 4.Right delivery 5.Right outcome Right delivery The right delivery practices to achieve objectives - adopting efficient and effective operational practices - doing things right: efficient operations: smart business processes people (workforce management) – right skills, staffing levels, HR practices, sickness management, etc effective business practices: performance management risk management financial management & cost control income management ability to join things up internally & externally (teamwork & partnerships)

1.Purpose 2.Right activities 3.Right assets 4.Right delivery 5.Right outcome Right outcome if previous steps undertaken correctly the desired outcomes should be achieved… not by magic, by management evaluate effectiveness - have the financial, social, environmental and service quality returns been achieved? … including efficiencies/surpluses

…. the model assumes a wider ‘take’ on VFM than previously. What are the behaviours, processes & practices that together embed ‘total’ VFM? To help marshal your thinking, a cultural web….