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Outsourcing and shared
services
Mike Ward
Director of Housing Growth & Mobility
Circle at a glance
• 9 Housing Associations
across London, south-east
and West Midlands
• 65,000 homes
• 2,200 staff
• Housing stock in city, town
and rural locations • Circle Support
• Invicta Telecare
• Circle Living provides
leaseholder, intermediate,
market rent and housing for
sale
Our areas of operation
Some past decisions to outsource
• Wherry Housing Association – financial advice
services delivered in and around Cambridge by
Cambridge Housing Society. Selected as geographically
appropriate, value is sound and service quality is good.
• South Anglia - Housing management on owned stock in
and around Southend delivered by South Essex Homes.
Selected as geographically appropriate and as a
foundation for a closer relationship.
• Wherry Housing Association – Homes in
Northamptonshire managed by Rockingham Forest
Housing Association. Selected as geographically
appropriate and a partner in development of new homes.
An opportunity to reflect
• In-source or outsource evaluation is a good
opportunity to interrogate your own costs
• May result in a reconfigured service still delivered
in house
• Outsourcing for a time may be attractive – rebuild
a team?
• Will you preserve skills?
• What related costs might there be – new skills,
new culture?
• Will your delivery partner remain hungry for
results?
• Beware of fire and forget
House Exchange Established in 2004. The largest not-for-
profit mutual exchange site for social
housing residents. To find out more about
House Exchange please visit
http://www.houseexchange.org.uk
Specialisms and ‘inventions’
Invicta Telecare
• Operates as part of Circle Living, the
commercial subsidiary of the Group
• Largest independent provider of telecare
services in the UK
• Provides monitoring and alarm services to
more than 120,000 people across the UK
• Also provides lone-worker monitoring and
out-of-hours services for a wide range of
housing and local authority clients
• Moving into telehealth as an emerging
market
• Can provide monitoring services for
customers outside the UK
Circle Support
• Specialist company delivering care and support to vulnerable people across the Group
• Vulnerable people remain at the heart of the mission to enhance life chances despite cuts to public spending
• Serves more than 5,000 customers
• Client groups: older people, adults with learning difficulties, disabled people, people with mental ill-health and young people
• Demographics mean that needs will intensify – an ageing population
• By 2060 health and pensions alone could account for more than half of non-interest spending in the UK
(Institute of Fiscal Studies)
R & M Review Aims
• Save 10% of £1.2b
• Be more efficient
• Consistent contract and performance management
• Deliver maintenance services that drive customer loyalty
• Focus delivery on what customers refer to as ‘the most important service delivered for them’
• Introduce innovation that improves outcomes
• Customer contact and data in our control
Conclusions of Review
Achieved
Three delivery areas
A restructured organisation
New performance regime
New IT to assist the repairs process
New IT to assist delivery of planned maintenance
Better and slicker processes
Different contract types
Better contract management
Better cost control
Better pricing methodologies
Contract Governance
Structure Strategic
Core Group
Lot 1
Core Group
Eastern Region Responsive
Repairs
Lot 4
Core Group
Eastern Region Planned &
Cyclical
Maintenance
Lot 2
Core Group
Central Region Responsive
Repairs
Lot 5
Core Group
Central Region Planned &
Cyclical
Maintenance
Lot 3
Core Group
Southern Region Responsive
Repairs
Lot 6
Core Group
Southern Region
Planned & Cyclical
Maintenance
Wherry
Roddons
South
Anglia
Mercian
Circle 33
Old Ford
MPH
Mole Valley
Russet
Customer Representative Groups
Repairs Scrutiny Panel
DLO Operating Model
Planners will handle
exceptions & instruct
Operatives, in addition to job scheduling – to
reduce non productive
time
Accurate diagnosis
& electronic dynamic work
scheduling will enhance First
Time Fix rate
TOTAL OPERATIVE
Planners
Health & Safety (H&S)
Direct and easy access to H&S information on
PDA
PDAs are used to transfer data to Operative from
both Planners and Team Managers and vice versa
Quality Control
Work in progress
inspections will form part of
the DLO Quality Control
Process
Vehicle Leasing &
Maintenance
Materials Supply
Team Manager (TM)
Suppliers contracts required
delivery of materials direct to Operatives/
Sites
Vehicles leasing contracts
require any repair/
replacement to be delivered
directly to Operatives
TM will provide supervisory support & problem solve to
maximise Operative productivity
Job Allocation
Electronic Data Transfer
Electronic Data Transfer
Planners
DLO headlines 12/13
Staff structure and recruitment
Total Repair and Total Mobile on track
Dedicated Finance, HR and IT support
Governance
Commenced re-procurement of materials supply
Review of terms and conditions
Luton BTS transfer
Capturing Benefits
Different benefits will be realised at different rates. Detailed benefit delivery plans will be
developed through Core Groups to support value capture.
Strategic Benefits
Reputational Benefits
Added Value Benefits
Financial Benefits
Service Offering Benefits
Delivery Benefits
Time Pre-
Contract
Go-Live
(Day 1)
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6-10
Note: The graphic above is illustrative only
Measuring Benefits
Direct / Hard • KPIs (+ additional local PIs)
• Standardisation of Service
• Reduced Complexity
• Robust Delivery Model
Added Value Benefits • Apprenticeships (1 per £0.5m)
• Green Investment
• Training
• Supply Chain Re-engineering
Indirect / Soft • Sector leading
• Customer Engagement
• Culture
Financial • Cost savings
• Improved controls
• Strategic Prioritisation
• Resources
• Supply Chain Optimisation
Thank you
Mike Ward
Direct 01603 703819
Mobile 07736 028389