Business Development Strategy CIH Midlands Conference 17 th October Jonathan Shaw Director of Business Services

Transcription

1 Business Development Strategy CIH Midlands Conference 17 th October 2013 Jonathan Shaw Director of Business Services

2 Our recent new business Managing properties for RP Care alarm disaster recovery for neighbouring council Project managing the building of 390 new council homes for NCC and the building of 67 new homes for NCH (some with DLO build) Out of hours repairs call handling for RP Decommissioning programme Solar panels to over 2,200 homes

3 Business Development Strategy The vision We are ambitious for Nottingham City Homes. We want to be recognised as one of the best housing organisations, a leading innovator in social housing, whilst delivering an excellent range of services in the eyes of our tenants and leaseholders We will ensure that developing our business will not detract from our core purpose, which is managing and maintaining council housing for NCC. We will do this by seeking opportunities that complement our corporate objectives.

4 Phase 2 Strategy development Phase 1 Base line assessment Mapping current commercial activity Evaluating the effectiveness of commercial activity Understanding risk Understanding competencies Developing a business development strategy Researching the market May 2012 Jan 2013 Jan Mar 2013 Establishing governance arrangements Implementing structures Fostering an entrepreneurial culture Developing skills

5 Ansoff the element of risk increases the further a strategy moves away from known quantities diversification usually requires: new skills Existing products New products new techniques new facilities Existing markets Market penetration Expansion through existing products into existing markets Least risk Product development Expanding new products into existing markets Increased risk New markets Market development Expansion through existing products into new markets Slight risk Diversification Expanding new products into new markets Greatest risk

6 Our business development priorities Maximising opportunities for partnership working with NCC including building new council homes Using our in-house construction services to deliver more of the Council's capital programme Marketing our existing services Expanding telehealth and telecare through Nottingham On Call Developing a market rented arm Maximise ECO funding opportunities

7 Assessing business opportunities Strategic alignment Organisational fit and degree of diversification from existing services Value to tenants Value to Nottingham Value to NCH Certainty of annual costs and income Knowing the investment required Expected return on investment (including social return) Sustainability Risk

8 New business assessment matrix - Part 1 of 2 Criteria Weight Scoring values Score VALUE Organisational fit Are we doing it already? Should we be doing it already? Should we keep doing it? 2 0: has no relevance to NCH activity 3: some relevance 6: lots of relevance 9: essential / critical Strategic alignment Relevance to corporate goal and business priorities 3 0: aligns with none 3: aligns with 1 corporate goal 6: aligns with 2 corporate goals 9: aligns with 3 corporate goals Value to NCH Opportunity may lead to other business Develops new skills and expertise Reputational benefits Adds value for NCC and other partners Creates new partnerships for NCH Opportunity enhances NCH s offer and competitiveness when pursuing other business/partnerships 1 0: none are true 3: one is true 6: three are true 9: all are true Direct value to tenants e.g. employment opportunities for tenants Value to Nottingham Social, environmental, economic and employment outcomes Long term benefits 3 0: none or little value 3: some value 6: lots of value 9: essential / critical 3 0: none or little value 3: some value 6: lots of value 9: essential / critical VALUE SUB TOTAL

9 New business assessment matrix - Part 2 of 2 Criteria Weight Scoring values Score RISK Certainty of annual costs and income 2 12: lots of unknown costs 9: some costs are known 6: many costs are known 3: all costs, direct and indirect are known Investment required Cost and time in pursuing/winning opportunity Cost and time in providing the service or product 1 12: very high 9: high 6: medium 3: low Expected ROI Financial return 2 12: no profit 9: 1-3% 6: 4-10% 3: 11+% Diversification Degree of diversification from NCH activity Sustainability Lifetime of opportunity Ability to sustain Exit strategy in place 2 12: complete diversification 9: high diversification 6: medium diversification 3: low diversification 1 12: one off, discrete opportunity 9: probably sustainable 6: highly sustainable 3: fully sustainable RISK SUB TOTAL Initial Investment k

10 Organisational Value New Business Opportunities Matrix Low Value High Value Furnished Accommodation RP Landlord Service Build to Private Rent Expand Nottingham on Call Private Landlord Service Offer Repairs to other RPs Utility Preference for new lets Patient Lifting Service Wi-Fi Properties Larger Bubble Size = Larger Initial Investment Low Risk Organisational risk High Risk

11 Approval limits EMT Policy and new business committee The Board Lower risk Investment up to 30,000 Investment 30, ,000 Investment over 250,000 Higher risk Investment up to 50,000 Investment over 50,000

12 Thank you