ORBIT GROUP BUSINESS PLAN
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- Eunice Cook
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1 ORBIT GROUP BUSINESS PLAN
2 CONTENTS RESPONDING TO A CHANGING WORLD STRENGTHENING OUR OFFER PLANS OUTCOMES ACTIONS ORBIT AT 50 CONCLUSION APPENDIX
3 RESPONDING TO A CHANGING WORLD Our environment continues to change at pace and reflects a very different political, economic and regulatory landscape from 2012 when we set out our ambitious vision for The 2015 Election gave the new majority Government a mandate to drive forward the policy objectives set in train by the coalition in the previous Parliament. The Housing & Planning Act, the Welfare Reform and Work Act, the new rent environment and changes to grant funding are just some of the many factors which make for a far more challenging world today. We will respond to changes such as the voluntary Right to Buy and manage the potential impacts of others such as Universal Credit. The regulatory framework is also evolving and a critical focus this year will be driving efficiency and Value for Money, both from a business perspective, as well to satisfy our regulator. Our sector is also evolving with merger activity increasing and a greater appetite for collaboration and co-operation. This presents challenges as well as opportunities. More broadly, we remain in the midst of a long-term housing crisis. Social and economic challenges are making life harder for our customers and communities, in turn placing more demands on organisations like Orbit. Despite these challenges, in the last three years we have made good progress against our original 2020 targets and they continue to guide everything that we do. 3
4 STRENGTHENING OUR OFFER Our primary focus is to respond effectively to the challenge of our 2015 governance downgrade. It is critical that we recover and retain our top governance rating during the year. We have completed a significant amount of analysis to inform detailed action plans and we know what we need to do. The areas for improvement have come from our reviews of systems, processes and people. We have made immediate changes, implementing an integrated performance management framework, supported by improved data collection and reporting system, and upgraded our compliance function which is now closely aligned with the corporate Health & Safety team. In the coming year we will improve the structures and operations of our core landlord services and embed further our culture of openness and accountability. We will revise our plans to deliver our 2020 ambitions in light of recent policy and political changes. We will consider the longer-term future beyond 2020 and the type of organisation we want and need to be, developing plans for a stronger and more effective Operating Model. 4
5 PLANS The Business Plan for will focused on three areas: Improving our maintenance and core landlord operations Strengthening our infrastructure and governance Continuing our growth and development plans We have a clear set of plans, priorities and projects for the year which will improve services, enhance our property portfolio, generate increased profits, see us continue to invest in our people and ensure we manage compliance and risk effectively. We will also deliver growth through one of the largest house-building programmes within the housing association sector and through our Service Matters offer. These objectives are reflected in the Operational Plans for subsidiaries in the Group and our strategies below, focused on delivering our 2020 outcomes. Our actions are grouped under the five core strategies that we have within Orbit; SERVICE PROPERTY PROFIT COMPLIANCE AND RISK PEOPLE Targets are shown in Appendix 1 5
6 OUR 2020 OUTCOMES HOUSING CHOICE 1. Deliver 12,000 new homes 2. Provide a full range of home rental and ownership options 3. Provide a flexible housing journey for customers COMMUNITY INVESTMENT 4. Provide 10,000 training and capacity building activities to support empowerment, opportunity and jobs 5. Deliver 30m of investment into communities, including external funding 6. Achieve a minimum energy rating of Band C in our homes CUSTOMER OFFER 7. Ensure 75% of customer transactions are online 8. Provide a range of tailored services which satisfy 90% of customers We have a clear set of plans, priorities and projects for the year which will improve services, increase our property portfolio, generate increased profits, see us continue to invest in our people and ensure we manage compliance and risk effectively. 9. Provide financial and energy efficiency advice to 20,000 people 6
7 ACTIONS SERVICE ACTIONS We will improve our repairs service through stronger contract management, closer working relationships between our contractors and teams, and by rolling out a new online repairs service. We will improve our core landlord operations by implementing changes to the structure and by clarifying the roles and responsibilities of managers and their teams. We will review our customer offer and drive forward on digitising services. We will also refresh our health and social care strategy to respond to the changing agenda. PROPERTY ACTIONS We will deliver a range of 1,700 new homes to meet need and aspiration, including homes for rent, sale and Shared Ownership while reviewing the design, procurement and construction processes. We will strengthen the Property Investment team to ensure the effective investment of 63m into the 40,000 existing homes that we own. We will develop our Asset Management Strategy to develop better and more robust data to enable more effective management of our property portfolio, including disposals and investment in energy efficiency. PROFIT ACTIONS We will deliver a profit of 44.4m and an operating margin of 24%. We will generate new home sales surpluses of 12.4m, as well 2.2m from Shared Ownership staircasing and 500,000 from selling services and the Help to Buy contract. We will manage the impact of Welfare Reform and Universal Credit, improving our processes to protect income streams by keeping rent arrears at 3% or lower and void losses at 1.4% or lower. We will also deliver 3.1m in efficiencies, including procurement savings of 1.2m across the business. PEOPLE ACTIONS We will create a more open, accountable and integrated culture focusing on performance management, compliance and a One Team approach, underpinned by moving to a single Brand to celebrate our 50 th year in The Orbit Academy will deliver training to staff and managers and launch our Work Inspiration graduate and apprenticeship programme. We will support the Your Orbit staff forum in addressing Well-Being and management consistency and deliver an enhanced Equality and Diversity Strategy. RISK AND COMPLIANCE ACTIONS We will strengthen performance, risk and internal control by recovering our G1 governance rating and completing all actions related to the downgrade and lessons learned. We will implement new IT compliance, performance and policy management systems and deliver an Orbit-wide Data Strategy. We will implement a revised rent-setting policy and process and deploy an integrated Risk Management Framework across Orbit. 7
8 ORBIT AT 50 In 2017 we will celebrate the 50 th anniversary of our inception as a housing association. Although much has changed, our commitment to make a difference to the people and communities where we work remains as strong as ever and in some senses, even more important. We have been Building Communities since 1967 and this year some 3m of the profits we generate will be invested in local communities to provide advice, training and jobs to those most in need of a helping hand to achieve their aspirations. In recent years we ve demonstrated our ability to influence and engage Government in areas such as tackling fuel poverty and supporting home ownership through Shared Ownership. In our 50 th year, we are focusing on future generations and will campaign to address child poverty by working with customers, partners and Government to make a real difference in this area. CONCLUSION The last year was a challenging one for Orbit. Despite this, we delivered the majority of our targets and priorities and took significant steps towards our 2020 vision. By April 2017 we will have a stronger and more reliable service offer, notably around maintenance. We will have strengthened our infrastructure to support our services and worked through the implications of the challenges we and our sector face. We are a strong and effective business but we can always be better, more efficient and have greater impact and that is what we will be working to achieve. We are a strong and effective business but we can always be better, more efficient and have greater impact and that is what we will be working to achieve. 8
9 APPENDIX 1 TARGETS TARGET FOR EVIDENCE TARGET TO DELIVER BY 2020 SERVICE Upper quartile market sale Net Promoter Score 87.5% customers satisfied with new rented home 81.7% customers satisfied with services 80.3% repairs satisfaction 30% customer transactions online 3,000 people given financial & energy advice 180 employment outcomes 1,400 people trained employment/education. PROPERTY c1,045 general needs homes for rent c440 Shared Ownership homes c228 Market Sale homes 12.4m profit from new home sales Secure 400k external & 452k ECO funding Upgrade 200 homes to Energy Band C. PROFITS 44.4m profit 3.1m efficiencies 24% operating margin. PEOPLE 76% staff engagement index Staff turnover less than 20%. COMPLIANCE High risk; Gas, Fire, Asbestos, Legionella, Lifts - actions all 100% complete Decent Homes compliance 99% In-house survey In-house survey STAR survey Real Time feedback Transactions online Number of people given advice Number of employment outcomes Number of training places. Homes delivered Homes delivered Homes delivered Profit generated Investment attracted and delivered Number of homes upgraded to Band C. Profit delivered Efficiencies delivered Operating margin achieved. Your Say survey scores Total turnover for the year Compliance achieved Decent Homes Standard rates 90% customer satisfaction 75% customer transactions online 10,000 training and job opportunities 20,000 finance and energy advice sessions. Deliver 12,000 homes Provide a range of housing options Provide a flexible housing journey 30m of community investment Upgrade homes to Band C. 9
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