29-35 West Ham Lane Stratford London E15 4PH

Tel: 020 8522 2000 Email: info@east-thames.co.uk

www.east-thames.co.uk

29-35 West Ham Lane Stratford London E15 4PH

Tel: 020 8522 2000 Email: info@east-thames.co.uk

www.east-thames.co.uk

Transforming at Pace

Deploying programme tools and techniques to support rapid

performance improvement – Case Study Implementing East

Thames’ Strategic Partner Model

Steve Smith, Director Partnerships at East Thames Group,

steve.smith@east-thames.co.uk

Simi Randhawa, Ambition for Change Consultancy,

simi_bath@hotmail.com

Our Presentation

• Background to East Thames’ case study of strategic partnership operating model

• Challenges

• Approach taken

• Programme change techniques

• Outcomes achieved

• Lessons Learnt

• Current challenges and next steps

Innovative, Integrated

Supply Chain Model

• East Thames owns and manages 15,000 households mainly in East London and Essex with an annual

turnover £146m

• Core activity is provision of social housing, development and sales, care and support, social regeneration

• Operating model incorporates mix of in-source/outsource of both strategic and operational services

• Innovative principle of integrating our fewer, better critical supplier partners into that operating model

• Integration includes:

• Strategic and operational business planning

• Budget setting, monitoring and budget risk mitigation

• Continuous improvement planning and delivery

• Risk management

• Transformational change

• Thin client model at centre for assurance/enabling

• Clienting of supplier devolved into whole business

• Key enabler of financial benefit by driving out duplication and waste/ LEAN

Early challenges

• Culmination of Transformation Programme

• Key challenge was the need to release substantial

benefit (efficiency savings) quickly

• Not all the necessary conditions in place to support

the changes required

• Key leadership changes created uncertainty around

vision

• Defining and documenting the right partnership

behaviours

• System integration challenges, reliance on

spreadsheets

• We did not allow for transition to thin client model

Leading to:

• Higher than anticipated work backlog

• Increase in complaints

• Confusion, frustration and mistrust

• Unclear accountability within the partnership

framework and operating model

• Fire fighting

• Many issues escalated to top Board in early period

Recommendations

• Major concurrent improvements required across people, process, technology and governance

• Leadership to reconfirm focus and direction

• Rediscover and implement the target operating model, define and embed roles and responsibilities

• Build intelligent client capacity and capability for such a large contract

• Understand/align supplier objectives with client objectives

• Set foundations of a partnering culture

• Review and address learning/ gaps in mobilisation of the new model

• Simultaneously agree and implement the service improvement plan to improve results

• Complete stabilisation of change within 8 months, evidenced through continuously improving results

• To do all this we needed to change traditional contracting behaviours quickly and decisively: ‘what and ‘how’ we changed had to be symbiotic and rigorous

Creating the change

together

• Discover and reveal together: to secure buy-in and resources, understand the grey areas of contract

• Address the root causes and solutions together through workshops

• Reconfirm vision and values and behaviours together, especially honesty, openness and respect

• Jointly agree SMART goals and common objectives to establish common purpose and enable focus on outcomes

• Joint improvement planning, stress testing together, agreed lead/lag measures and targets

• Use transitional best practice to reinforce accountable, collaborative behaviours

• Adapt Programme/change principles to instil focus, rigour and pace

• Common road map to understand milestones and outcomes for rapid transition • Build cadence and rhythm through the governance and reporting processes, stakeholder

involvement and communications process and sharing joint successes

Techniques used

1. Set common goals and clear improvement objectives through work shops and dedicated stakeholder sessions

2. Planning Framework to enable concurrent business delivery and make changes

3. Single Road Map – quantifiable step changes each month

4. Re-focused governance and escalation route

5. Systematic, regular and transparent reporting

6. Prioritise through dynamic management of issues and risks

7. Stakeholder engagement & communication plan

8. Setting roles & responsibilities – RACI

9. Evaluation and assurance over improvements Key: Joint development, consultation, monitoring to drive

accountability and change behaviour

Client responsibility

Partnership Service provision responsibility

Client Objectives by 31 March Common Aims Partner Objectives

1. Establish integrated Client team Provide quality,

functional and safe

(decent) homes

1 Fit for purpose team/ structure (capable with capacity)

2.Strengthened leadership

2. Improve service & the way homes

are maintained

Customer well being 3. Improve key services by 31 March 2015 ( with earlier quick wins phased for Oct and Dec)

4.Deliver enhanced Care & Support service

5.Agree and deliver planned maintenance programme

3. Establish capability to monitor and

drive compliance with contractual

requirements

Demonstrate VFM ,

achieve reasonable

profit

6. Review and manage sub-contractors to ensure quality, compliance and VFM

4. Establish robust inspections team

to protect assets and ensure QA

Protect reputation 7. Establish and implement Quality Management Framework

5. Manage client to supply required

data for Asset Management Strategy

Making Partnership

work

8.Launch strategic asset management plan

6. Support Development team to

ensure design and quality of new

homes

Solid, positive presence

in housing market

10.Strengthen and refresh the contract Administration Framework

7. Ensure delivery of IT systems to

complete mobilisation and transition

Enhanced performance

improvement standard

met

11.Refresh current and mobilise new IT systems

9. Establish leadership, capability,

conditions to be a smart client & drive

decision making

12.Review and refresh key processes and procedures across the operating model

13. Embed robust Partnership governance framework

10. Optimise commercial office

portfolio 14.Provide business insight on property performance

15.Strengthen capability for budget management & forecasting, performance management, reporting and tracking

delivery in new environment

Planning Framework

Wider ETG

Partnership Strategic

Supplier BAU &

make

changes

Property &

Partnership Strategic

Partner

Business plan Business plan

Joint Roadmap

H/L Delivery

Plan

H/L

Improvement

Plan

Detail Delivery Plan Detail Improvement

Plan

Support

services

L&D /HR

Comms

IT

Development

Risk mgmt..

Finance

Reporting

H&S

Policy

Procurement

Customer

relations

Sub-

contractors

Joint outcomes

To meet the expectations

the roadmap design is …..

Partner/Supplier joint roadmap high-level

Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 14 Feb 14 March

14

Planning

Mystery Shopping

updated

Supplier Quality

Control in place

MI framework in place

Governance

Stakeholder

map

Exit Strategy Financial Controls

Aligned

Right PIs

Comms plan

Contract Mgmt Framework

Reporting

Contract gap

analysis

Assurance

Leads Setup

Integrated Partnership Team/Culture/Behaviours

TNA Learning & Development

Contract

Training

Continuous

Improvement Model

System Interface scoped

Issue/Risk Mgmt model

Manage contract in line with

TOM

Partnership – joint

roadmap high-level

Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 14 Feb 14 March 14

1-2% contract

coding errors

WIP Backlog

reduced to

2%

100% decent

homes

Customer

satisfaction

circa 80%

across the

board

Empty homes

turnaround

times in target

Property

quality

standard

achieved

consistently

100%

Grade of

service stable

at 85%+

% reduction

waste calls

95% complaints

resolved within

timescale

95%

appointments

kept

90% right first

time delivery

90-95% work

orders

completed

within timescale

Clear backlog and build foundations Resilience and real KPI improvement

Governance: Creating accountable

behaviours together – our shared governance

Decision Making moved

to the right balance

Creating Cadence, Rhythm, Pace

Gather MI on KPI,

milestones, finances,

key issues/risks by

P&P support

Monthly

Return from owners

CM produce Monthly

Highlight Report

Supplier produces

OMG Dashboard

Monthly

OMG Dashboard

Monthly Contract

Highlight Report

AD P&P Produces

SPB Highlight

Report

Contract Highlight

Report reviewed at

Contract Meeting

Dashboard reviewed at

OMG Monthly

SPB Highlight Report

SPB Highlight Report

reviewed at SPB

Creating change together: stakeholder

engagement & communications plan

• Mapped all stakeholders against level and type of

engagement required and implemented this systematically

• Developed communications plan with set objectives, key

message aligned to roadmap and defined channels of

communication

• Held workshops on planning, development, improvements,

including with customers

• Held range of staff surgeries

• Shared capability, coached and facilitated on specialist areas

to bridge skills gaps

• Engaged owners to lead

Roles and Responsibilities for each function

Functional area

Key activities

Responsible

Accountable Contributing

Commission Work Assuring the development

and delivery of Planned,

Major and Cyclical

Programmes

Contract Manager Head of Partnership Operational Management Group

Statutory Compliance Work Stream Group

H&S Manager

Approving the annual

Planned Maintenance and

Servicing Programme

Director of Property

and Partnership Exec. Director of

Communities and

Neighbourhoods

Strategic Partnership Board Operational Management Group Others - that need to be consulted before

decision is made (TBC) Issuing orders to the client

and validating volumetric,

tracking of spend and

forecasting for the relevant

work stream

Contract Manager Head of Partnership Cost and Quantity Surveyor

Approving Statutory

Compliance Programme Director of Property

and Partnership Exec. Director of

Communities and

Neighbourhoods

Strategic Partnership Board Operational Management Group Statutory Compliance Work Stream Group

H&S Manager Managing the handover of

new properties to the

Partnership and inclusion as

part of the Strategic

Maintenance portfolio

Development Manager Director of Development Head of Partnership Contract Managers Account Director Head of Customer Accounts Commercial Manager

Authorising and overseeing

the delivery of Out of Scope

works

Head of

Neighbourhood

Management

Head of Housing,

Neighbourhood

Management

Head of Partnership

Evaluation and assurance

1. Corporate wide stress testing - at start comprehensive review of joint improvement plan to

ensure focus on right areas (understanding of dependencies and mapping to root cause,

sufficient resources and technical skills and crucially behavioural competences)

2. Review at the end assessing delivery against 4 key areas capacity, capability, outputs and

outcomes reflecting the following:

• The improvement brief

• The objectives and KPIs agreed at the start of the period

• The improvement targets set and the capability and capacity captured in the Partnership

roadmap to address root cause of service notice.

3. Ensure 80% of plan delivered on the right areas to create sufficient stability and flag further areas

for improvement (gaps/risks)

Early leading Indicators of Success

68% fewer

complaints received

per month from

2013 to 2015

- 68% complaints

received

89.94% Call

Centre Grade of

Service

Calls answered in

20s improved from

45.5% in 2013 to

89.4% in 2015

(YTD)

Reduced works

overdue at any

point in time by

90% in the past

12 months

- 90% overdue

works

Raised 40% fewer

subcontractor jobs

per month from

2014 to 2015

- 40%

subcontractor

jobs

10.3 days to

complete works

Time taken to

complete works

reduced from

18.45 days 2014

to 10.3 days in

2015

Lagging perception measures: A classic

change curve?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

Overall satisfaction with the services

Success Factors

• Partnership working – putting blame aside and fixing problems and identifying opportunity together

• Transferring skills and experience from interim specialists to permanent staff

• All leaders committing to the Partnership in the face of the challenges and risks through investment, action and communication

• Robust governance and scrutiny from all stakeholders drove accountable behaviours

• Engaging customer representatives provided integrity and openness

• Setting up a staff representatives group to communicate messages about improvements through the business

• Lessons learnt are not easily forgotten – hard-wired learning together ‘in the work’

Lessons learnt… what we would do differently

• Over-ambitious: Improvement plan tried to do too much in the short timeframe – everything was

seen as urgent, more rigour needed for future prioritisation

• Strengthen change controls to help make rapid change stick

• Needed more programme/ coaching support resource at early stages as Business As Usual staff

were under pressure constantly to mobilise/deliver/improve concurrently

• Bring in experienced people quicker (not necessarily lots of people quicker)

• Pause just a second…Celebrate successes more! Sometimes too self-critical and too quick to

move to the next challenge

Key next steps

• Joint process to determine property portfolio decisions

• Embedding behaviours in business as usual environment now the ‘burning platform’ has cooled

• Creating agility to respond to new, external financial pressures on housing associations

• Our new ‘Good to Great’ transformation

Questions?