Value for money
We recognise that value for money (VFM) is a very important part of our business. It is a key component of our three key objectives: social heart, business head and local impact.
The key components of our process mean we aim to use our business head to obtain good VFM through our procurement and day-to-day activities but carry this out with a social heart to ensure we add social value back into our local economy and produce a strong local impact.
We seek to develop and embed VFM in the culture of the business, particularly in shaping our approach to service delivery, planning and management. We will use benchmarking and cost comparisons alongside our annual social value report and new tools such as our stock viability assessment to show how we are delivering our VFM approach.
» Improved operating and net surplus in the year ploughed back into new homes in west London.
» Reduced housing management costs.
» Increased spend on maintenance.
» An “average” performance on costs in London but, at times, high cost.
» Efficiencies in our work on procurement, interest costs, rent arrears and empty homes.
» Consistent resident satisfaction with our work.
How we assembled our VFM assessment
One of our board's overall responsibilities is delivering VFM including setting our 2018-2023 Corporate Strategy and the financial models which support it. Our assessment can be downloaded on this page.
The board undertakes an annual board strategic review which includes consideration of VFM.
It held an away day to review its approach on VFM and produced a set of key objectives that it wishes to see in place, monitored and delivered. The board has also established a VFM champion from its membership who will lead and promote the agreed approach across the group.
The five key objectives the board has set for the next year are:
» To review in greater detail each area of spend in budgets.
» To analyse our social impact and set a threshold to trigger enquiry into ‘lower’ social impact areas and invest in high impact areas.
» Analyse through chosen options lower performing assets.
» Invest to save in proven methods of delivering longer term savings.
» Analyse our benchmarking to seek below average costs in management.