5. Regulation

5.     Regulation

5.1  This strategy contributes to our compliance with the Regulator of Social Housing Value for Money Standard.

5.2   The Value for Money Standard 2018 requires Registered Providers to;

1. Clearly articulate their strategic objectives
2. Have an approach agreed by their Board to achieving value for money in meeting these objectives and demonstrate their delivery of value for money to stakeholders
3. Through their strategic objectives, articulate their strategy for delivering homes that meet a range of needs
4. Ensure that optimal benefit is derived from resources and assets and optimise economy, efficiency and effectiveness in the delivery of their strategic objectives.

5.3    Connexus response to these requirements are as follows;

Clearly state their strategic objectives;

A new Corporate Plan was approved in 2020 by the Group Board which details five clear objectives; Customer focus, Our people, One Connexus, Commitment to our Communities and to be Well Governed, Resilient and Financially Sound. The Value for Money strategic objectives are to:

• Generate the optimal outcomes for the Group, tenants, customers and communities from the considered use of all resources.
• Create efficiencies in the way we operate.
• Utilise profits from commercial activities to provide better services for our customers.
• Understand the return on our assets and utilise this to assist in the prioritisation of activities against our strategic objectives making new development decisions based on social and financial return to the Group, our customers and communities.
• Create and embed a VfM culture across the Connexus group.
• Use growth in the business to provide local employment opportunities, apprenticeships and reduce dependency.
• Provide social and economic benefits to individuals and communities in our core geographical areas.
• Create environmental efficiencies

The financial efficiencies generated will provide funding to:

• Develop new homes
• Invest in existing homes
• Improve customer services
• Maintain sustainable communities
• Support business growth and development

Approach agreed by Board in delivering value for money;

The VfM agenda is embedded at Connexus through the creation of a Connexus Value Group (CVG). Chaired by the Director of Resources, the CVG includes colleagues across the Group at all levels. A detailed efficiency log is at the heart of the CVG, this is accessible by all colleagues within the organisation having the ability to enter onto the log savings that have been demonstrated. Finance then transact these savings as cash backed and report to Senior Management, Executive Management and Group Board income and expenditure detailed variance analysis via the monthly management accounts.

Our approach is designed to ensure that value for money is provided for our customers. Specifically:

• Connexus has adopted a Customer First approach to focus on delivering to purpose and what matters most to the customer rather than being driven by costs, targets and budgets.  All of these will be measured and monitored but will not drive delivery. 
• Connexus has developed a Customer and Community Involvement Strategy and will listen to the concerns of customers in order to deliver better services and amend our approach in response to customer feedback. We communicate with our customers in a variety of ways, via our website, telephone and text messaging, meetings, face-to-face contact and social media but we principally communicate our VfM story and service changes etc. through our customer newsletters and annual report.
• Customer scrutiny, focus groups and insight analysis are all used to assist in the process of service review and improvement.
• Connexus has partnership working as a key priority and will work closely with other landlords across our core operating area of Shropshire and Herefordshire to better address the collective needs of residents, tenants and customers and to be responsive to priority issues facing our Council partners.

Articulate their strategy for delivering homes that meet a range of needs;

A New Homes Strategy was approved by the Group Board with an effective date of the 1^st April 2020.

The New Homes Strategy sets out an approach to delivering homes that are well designed, affordable, delivered in the most cost effective way and are sustainable for the future.

Specific measurables within the Strategy are as follows;

• To focus at least half of our development delivery in rural locations, these will include villages and market towns.
• Build a minimum of 750 new homes over the next three years, achieving a growth target of between 2-3%.
• Maximise delivery of affordable rental homes, a minimum of 50%, alongside a mixed tenure programme of social rent, shared ownership, rent to buy and private sale.
• Engage with our customers to understand what they want from a new home now and for the future.
• Develop and pilot a specification that delivers a cost and carbon neutral approach.
• Engage with the Asset Management Team to implement a golden thread of information.
• Develop a Team to enable the delivery of this strategy, including clear training plans to maximise internal capabilities and provide clear succession routes.
• Define and develop, in partnership with our contractors and consultants, a programme that promotes both construction and project management skills. 
• Develop a clear link between our outright sale subsidiary, the delivery of more affordable housing and how we contribute to wider corporate objectives.
• Embed a learning from ‘Customer Feedback’ culture.
• Subsidise the delivery of homes by maximising our grant funded programme and by delivering private development for sale, ensuring these activities do not present an unacceptable level of risk to our financial stability.
• Enterprise & Development Committee will monitor governance and risk across our development activity, they will seek assurance through internal and Homes England audits.
• Maximise procurement efficiencies, through engagement with frameworks, new partnering contracts or other routes.

Ensure that optimal benefit is derived from resources and assets to optimise economy, efficiency and effectiveness.                               

Connexus will;

• Prioritise expenditure and ensure that expenditure is only incurred if it directly benefits our customers or indirectly benefits our wider customer base.   
• Create a business case for major decisions and scrutinise these at the Connexus Value Group, Senior Management Team meetings, Executive Management Team meetings, Enterprise Committee, Audit & Risk Committee, Customer Services Committee or Parent Board as appropriate. The business case will be backed up by a financial appraisal linked to the quality and benefits to our customers
• Understand its performance and cost base in relation to outcomes and review these in comparison to other similar organisations (including commercial organisations where available) on at least an annual basis using analysis to drive service improvement where appropriate.
• Monitor trends against performance on a monthly basis and have processes in place to improve, introducing continual learning cycles.
• Review its performance through balanced scorecards and management accounts on a monthly basis and at least quarterly report to Board and relevant Committees.
• Drive efficiencies in procurement by creating a procurement plan and monitoring outcomes.
• Set annual targets for VfM efficiencies, recording and scrutinising efficiencies delivered.
• Have robust business planning and budget process and review to ensure that financial performance will comply with funders’ covenants
• Include an annual efficiency target approved by the Group Board in the Long Term Financial Forecast.
• Where possible generate a profit by providing services to non-residents and use the profit to reduce costs or improve the service to our residents.
• Implement an Asset Management Strategy to optimise the return on our assets.
• Use a variety of data from a number of sources (including customer satisfaction, customer profiling and complaints/compliments analysis) to review and triangulate evidence to value for money
• Involve customers through representative tenant groups, resident inspectors and scrutiny panels
• Challenge our delivery models and ensure that our corporate structure provides VfM.