The Royal Borough of Kensington and Chelsea

Tenant Management Organisation Limited

(the Company)

Agenda
A meeting of the Board of Directors (Board) of the Company
is to be held on the 21st of May 2015 at 6.30pm
at 346 Kensington High Street, London, W14 8NS

Agenda Report Name Presenter Enclosure

Item

1. Notice, Apologies and Quorum Chair -

2. Declarations of Interest* Chair -

PART B - OPEN

8. Minutes of the meeting held on 26th March Chair

2015

9. Matters Arising Chair

10. End of Year Performance 2014/15 Executive Director, People

and Performance

11. Business Plan Strategies Chief Executive

12. Chief Executives Report Chief Executive

13. Internal Audit Plan 2015/16 -

14. Directors & Officers Liability Insurance -

Update

15. AOB Chair -

16. Date of the next meeting 23rd July 2015 - -

Notes:
(1) Board Members unable to attend physically can attend by teleconference (dial-in details to be provided)
(2) Board Members can send in their apologies to the Company Secretary by email or by calling on 020 7605 6532
(3) * Every member of the Board has a duty under Section 182 of the Companies Act 2006 to declare any interest in any transactions or
arrangements with the Company under consideration, or section 177 of the Companies Act 2006 to declare any interest in any proposed
transactions or arrangements with the Company under consideration in accordance with the Companys Articles of Association. Any
interests should be declared to the Company Secretary on, or before the meeting.
(4) * A person who has declared an interest will neither attend the discussion leading to a decision on the conflicted matter nor vote on it.
 THE ROYAL BOROUGH OF KENSINGTON & CHELSEA
TENANT MANAGEMENT ORGANISATION LIMITED
(the Company)

Minutes of a meeting of the Board of Directors (Board) of the Company

held on the 26th March 2015 at 6.30 pm
at 346 Kensington High Street, London W14 8NS

PRESENT:

Resident Board Members Fay Edwards - Chair

Tony Annis
Mary Benjamin
Anne Duru
Kush Kanodia
Deborah Price
Council-Appointed Board Councillor Judith
Members Blakeman
Councillor Maighread
Condon-Simmonds
Jeff Zitron
Independent Board Simon Brissenden
Members
Peter Chapman
Anthony Preiskel
APOLOGIES: Brendan Tracey
IN ATTENDANCE: Robert Black Chief Executive
Rupa Bhola Assistant Director, Financial
Services
Yvonne Birch Executive Director of People &
Performance
Sacha Jevans Executive Director of Operations
Fola Kafidiya Head of Governance & Company
Secretary
Anthony Parkes Executive Director of Financial
Services & ICT
Jane Clifton Executive Office Manager
Juwon Osundina Company Secretarial Assistant

1. NOTICE, APOLOGIES AND QUORUM

1.1 The Chair noted that the members of the Board entitled to receive notice and attend
meetings had been duly served with notices of the meeting.

1.2 The Chair also noted that apologies were received from Brendan Tracey.

1.3 The meeting was quorate in accordance with the provisions of the Articles of
Association of the Company.

1
2. MINUTES OF THE MEETING HELD ON 5TH JANUARY 2015

2.1 The Board RESOLVED TO approve the minutes of the meeting held on the 5th January
2015 as a correct and accurate record of the meeting.

3. MATTERS ARISING

3.1 Repair of adopted roads - It was noted that this was being looked into, and would be
reported back to the Board.

3.2 Pension fund - it was noted that an update would be presented to Finance, Audit and
Risk Committee in July 2015.

4. CHIEF EXECUTIVES REPORT

4.1 The Chief Executive presented his update report which highlighted the following

4.1.1 Appointment of Executive Director of Financial Services and ICT - Barbara Matthews
had been appointed to succeed Anthony Parkes as Executive Director of Financial
Services and ICT with an expected start date of 3rd June 2015.

4.1.2 Regeneration - RBKC had issued a press release on their commitment to tenants and
leaseholders affected by the redevelopment of estates on 16th February 2015.
Councillor Blakeman commented that the press statement did not mention that adult
children currently living with their parents were not covered by this commitment. . It
was agreed to circulate the press release on the voids conversion policy in the next
CEO report to the May Board. The disposals policy had been considered by the
Housing and Property Scrutiny Committee, and would covered ina future report to the
Board.

4.1.3 Tenant Involvement Reception on 19th March 2015 - the Chief Executive had been
invited to participate in a DCLG forum on design on 27th March 2015, and Yvonne Birch
would be chairing a panel on resident engagement on 31st March 2015.

4.1.4 Notting Hill Housing Homes for Britain Breakfast Reception - The Chief Executive and
the Chair of the Board had attended the reception.

4.1.5 Leaseholder consultation on the Framework Arrangement - it was confirmed that the
Executive Team had met on 24th March 2015 to consider leaseholder observations on
the consultant framework. A few observations were received, and the main
observation had queried why these services were not carried out in-house. It was
clarified that the use of consultants for the support of the framework would reduce the
direct risk to the Company.

5. TMO AND HRA BUDGET MONITORING APRIL FEBRUARY 2015

5.1 Rupa Bhola presented the group budget monitoring report for the period up to February
2015, It was noted that the company was on track to achieve a surplus of 34k - 35k
by 31st March 2015. Although staffing costs were higher than budgeted, savings had

2
 been made on legal, consultant and depreciation costs. Confirmation was given that all
departments had made contributions towards achieving their budget.

5.2 There was a positive variance of 758k on the HRA budgets with the forecast for
energy bills reduced by 242k following meter readings. The forecast for bad debts
provision was lower by 300k. Rental income was higher than budgeted due to voids
being let at target rent. The forecast budget for the capital programme was now 9.5m
rather than 9.7m.

5.3 Anthony Preiskel questioned the additional costs on sub-contractors for the subsidiary
company, and it was confirmed that the costs would be covered by savings.

5.4 Fay Edwards asked whether the reduction in heating and hot water charges would be
passed on to tenants. it was clarified that the charges were based on a three-year
average, and were reviewed annually in November.

5.5 The Chief Executive drew the attention of the Board Members attention to the a the
companys debt position showing how debt had been reduced through improved
collection rates particularly for leaseholder charges. Simon Brissenden requested to
see the trend figures over a five-year period.

5.5 The Board agreed to NOTE the contents of the report.

6. PERFORMANCE UPDATE: QUARTER 3 2014/15

6.1 Yvonne Birch presented the performance update for the period to December 2014
including the revised performance targets for the Company for the next financial year.
The meeting considered the performance dashboard.

6.2 Councillor Blakeman pointed out a discrepancy in the number of households impacted
by housing benefit reductions. Clarification was given that these figures changed on a
weekly basis, but the figures would be checked.

6.3 Jeff Zitron raised concerns on the percentage of emergency and non-emergency
repairs completed within target falling in Quarter 3 although this had improved in
December. He questioned what happened to the people whose repairs were not
completed within target, and whether there were any concerns about Repairs Directs
performance. It was noted that London Drainage had created some data problems by
not entering the actual completion date on the system; however drainage repairs were
now being carried out in-house so the resulting KPI did not necessarily mean that
problems were not dealt with. Jeff Zitron asked about recent performance, and it was
agreed that the performance for January/February would be e-mailed.

6.4 Fay Edwards asked whether there were any problems on letting voids. It was
confirmed that there was a large proportion of voids requiring major works, and an
action plan had been drawn up to deal with the backlog of voids. This was already
starting to have a positive impact.

3
6.5 Peter Chapman queried the proposal that any increase in rent arrears should be limited
to 50k in 2015/16 because it was expected that arrears would increase with the rent
increases and changes to the Councils discretionary housing payment budget. The
Board members were advised that rent collection had improved during February/March
2015, but because there would be larger sums to collect in 2015/16, a realistic target
was required to be set. Kush Kanodia queried how many households were affected by
the cut in discretionary housing payments, and Yvonne Birch agreed to present the
information. It it was noted that DHP payments were also covered by private sector
and registered provider tenants. In order to qualify for DHP, the criteria were expected
to become more stringent.

6.6 Yvonne Birch presented the revised targets for 2015/16, some of which would not
change from 2014/15. On voids, the aim was to achieve greater clarity on what was
being measured, but the target of 23 days for completion would be retained. There
were new KPIs for estate services including environmental services but no targets
would be set until they had been embedded. A KPI of 70% was being proposed as the
average time for calls being answered within 30 seconds.

6.7 Kush Kanodia queried the proposed reduced target of 90% for the percentage of calls
answered by the Customer Service Centre . It was confirmed that that the target was in
alignment with other providers. It was further confirmed that the current 95% target
was counter-productive because staff were concentrating on finishing the calls within
target rather than resolving the issue raised on the call first hand. It was highlighted
that Amicus Horizon, who had a high performing call centre, had reduced their target to
85% because it had been realised how much time was required to achieve resolution
for callers. The call quality had improved and had resulted in a reduction in complaints
since it , concentrated on resolving problems. The Companys aim would be to
achieve first point of contact resolution.

6.8 Peter Chapman queried the proposed targets for stock condition. it was explained that
as these were new KPIs, the outturn for 2014/15 had to be taken into account. The
target would depend on what work was being done in the current financial year, and
the entire programme would have to be analysed to determine which targets were
being achieved.

6.9 The Board NOTED the performance update for Quarter 3.

7. COUNCIL NOMINATION TO THE BOARD

7.1 Fola Kafidiya informed the Board that upon Peter Molyneuxs resignation from the
Board, RBKC had notified the Company of the nomination of Paula Fance for
appointment to the Board. The Board was invited to appoint Paula Fance as a Council-
nominated member of the Board with effect from the date of the meeting.

7.2 The Board RESOLVED TO approve the appointment of Paula Fance as a Council-
nominated Board Member with effect from the 26th March 2015.

4
8. DATE OF THE NEXT MEETING

8.1 The next Board meeting would be held on Thursday, 21st May 2015.

5
 AGENDA ITEM: 9

MATTERS ARISING

NO. MEETING MINUTE ACTION BY BY WHEN UPDATE

DATE NUMBER WHOM
2 26/03/15 4.1.2 Report on the voids conversion & RB 21/05/2015 Presented in the CEO reports
disposals policy
3 26/03/15 4.1.5 Frameworks: Arrange the Board SJ 21/05/15 Scheduled for 21st May
Members to meet the framework between 5.30 6.30 pm
contractors and consultants
 THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
TENANT MANAGEMENT ORGANISATION LIMITED

Open

For information

TMO Board
21st May 2015
Report title: Performance Update (Year End 2014-15)

Authority for decision: The Board has ultimate responsibility for

the performance of the organisation.

Recommendations: That the Board note performance

Regulatory/legal requirements: Reporting performance is a regulatory

requirement

Business Plan link:

Developing organisational competence

Equality Impact Assessment/comment: There are no equality implications

Resident consultation: The TMOs Performance Indicators and

Business Plan have been developed with
the full involvement of staff, management
and the Board, and in consultation with
residents, key stakeholders, and
partners, of which the Royal Borough is
paramount.

Resource implications/VFM statement: We are committed to achieving top

quartile performance with value for money

Risk: Decline in organisational performance

could result in could result in reputational
risk and action from RBKC

Appendices: 1
Total number of pages including
appendices: 19

Name, position and contact details of Yvonne Birch

author: Executive Director of People &
Performance, 020 7605 6478
 THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
TENANT MANAGEMENT ORGANISATION

TMO BOARD 21/05/2015

REPORT BY THE DIRECTOR OF PEOPLE & PERFORMANCE

PERFORMANCE UPDATE YEAR END (2014-15)

Purpose

The purpose of this report is to advise the TMO Board of the TMOs
performance for the period April March 2015.

For comment / information

1 Introduction

1.1 This report and the attachments give an overview of the performance of
the TMO in key business areas during the reporting period.

2 Strategic performance indicators

2.1 The traffic light indicators use the usual colours to indicate the status of
the year to date performance against target.

3 Repairs Direct

3.1 For the 2014-15 year we completed 95.48% of emergency repairs and
93.09% of non-emergency repairs within agreed targets.

3.2 Results for the completion of both emergency and non-emergency

repairs early in the quarter were compromised by the launch of the web-
portal for sub- contractors and associated issues regarding the quality of
data being submitted via the portal. These issues were addressed with
the relevant sub-contractors and performance subsequently improved in
March, with 98.3% of emergency repairs completed in target.

3.2.1 Good housekeeping has now been implemented to enable the 2015-16
statistics to show and maintain the necessary improvements.
.
3.3 We have maintained a low level of call-backs throughout the year and
are well within the set target.

3.4 At 63.5% the percentage of post inspections is outside of the target of

>=90%. It has been identified that the indicator is measured combining
both quality and value (invoicing) criteria which can affect results
adversely. Going forward there is a requirement to separate the two
factors to give a clear indication of quality.

2
3.5 Our performance in the delivery of voids works has remained consistent
throughout the reporting period.

3.6 At 93.69%, customer satisfaction is positive, with improvements shown

as the year has progressed. Following the recruitment of a Customer
Complaints Officer within Repairs Direct, satisfaction surveys were
undertaken for 1236 repairs from June 2014 onwards.

4 Compliance

4.1 Gas servicing as at the end of March 2015 was 99.45%, equating to 36
homes without a valid landlords gas safety certificate (LGSC).

4.2 There was a reduction in performance in quarter four due to issues

experienced with the outgoing gas contractor. The performance of the
incoming contractor, K&T Heating, has been extremely positive. Our
robust processes meant that we responded immediately to these issues
and the performance at the date of this report is now 12 certificates
without a valid gas safety certificate.

4.3 The consultant, GCS, continues to assist in the administration of the gas
safety contract and continuous improvements are being achieved in the
implementation of the TMO gas access policy and procedure.

5 Customer Service Centre

5.1 The KPI targets for the Customer Service Centre for 2014-15 were to
answer >=95% of all calls with an average call waiting time of 25
seconds or less. Year end figures show that we answered 91.2% of calls
and that these were answered within an average time of 58 seconds.

5.2 A number of factors have impacted on performance; there has been a

high turnover of staff this year which has affected our ability to meet the
required service levels, and there has been an increase in the number of
emails being received through the Reporting Repairs inbox during the
second half of the year.

5.2.1 Through the promotion of our online services this has generated more
administration for the CSC; however, the call volumes have stayed the
same which means the staff workload is higher. Going forward we will
be measuring both the number of calls and the number of internet
forms.

5.3 Our 2015-16 target for the percentage of calls answered has been
reverted to the 2013-14 figure of >=90%. Our target for the average call
waiting time aims to improve on 2014-15 performance by at least 5%.

5.3.1 We feel that these targets are more realistic and achievable for the
year and will enable the team to focus on the quality of service being
provided and resolving queries at the first point of contact.

3
Benchmarking & Best Practice

5.4 In January 2015 the TMO became a member of the HouseMark

customer contact benchmarking club.

5.5 The group meets on a quarterly basis and club members have the
opportunity to share best practice and discuss how services can be
focused to drive forward customer excellence, improve customer
satisfaction, reduce complaints, and deliver business efficiencies.

5.6 We will report back to the Operations Committee on outcomes from this
group.

6 Voids & lettings

6.1.1 Following a period of below target performance at the mid-year point

our average re-let successfully reduced to 18.39 calendar days in
quarter four. This brought our average re-let for the whole year to 23.86
days, against a target of <=23.0 days.

6.1.1.1 Our performance by quarter is shown on the chart below.

35
29.10
30 26.53
25 23.86
21.69
18.39
20

15

10

0
Quarter 1 Quarter 2 Quarter 3 Quarter 4 YTD
Quarter 1 Quarter 2 Quarter 3 Quarter 4 YTD

6.2 A peak in the number of current voids mid-year had an impact on

resources. This increase was addressed by the TMO and improved re-
let averages can be seen in the monthly performance figures from
January onwards, together with a reduction in the number of current
voids, finishing the year with 46 available voids (compared to a peak of
74 in November.)

6.2.1 Due to increased numbers of major works voids during the year a
number of these 46 voids carried over to the 2015-16 year are for
properties where ongoing major works are being completed.

6.3 Following an internal review of the voids process resourcing has been
established to account for future possible fluctuations in void volumes.

4
6.4 The higher than expected level of rent loss from voids is linked to the
proportion of voids requiring major works such as kitchen/bathroom
renewal and/or significant clearance, which in turn increased the void
period for these properties. It is also linked to the number of properties
that were registered as unavailable for letting during the year due to
planned development works or disposal.

Benchmarking & Best Practice

6.5 In January 2015 the TMO became a member of the HouseMark voids
benchmarking club.

6.6 The group meets on a quarterly basis and club members have the
opportunity to share best practice and hear about the latest technology,
current management techniques, and law concerning voids
management.

6.7 At the time of writing it is too early to benchmark our performance

against the results of our peer group for 2014-15; however, when
compared with 2013-14 results our average re-let time achieved a
second quartile position.

6.7.1 The top quartile position was <=21.08 days.

7 Rent collection

7.1 The Rent Income team have had a successful year with a continued
drive to reduce the current rent account arrears debt which in 2013-14,
fell below one million pounds for the first time in the TMOs history.

7.2 For 2014-15 a target was set to reduce arrears by a further 50,000.
This was exceeded by over 2000 with the team achieving a final year
end position of 932,145.

1,700,000

1,500,000

1,300,000

1,100,000

900,000

700,000

500,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Current Tenant Arrears

5
7.3 The percentage of tenancies with arrears equalling more than seven
weeks rent also reduced further during the year, dropping to 3.96% by
March. This is a clear indication that the TMO is successfully addressing
and managing tenant arrears cases before they reach high levels.

7.4 Our progression in this area over the past seven years is shown on the
chart below.

10.00% 9.30%

7.70%

6.20%
5.79%
5.23%
5.00% 4.32%
3.96%

0.00%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

% Current Tenancies >7 weeks in arrears

The Rent Income team have recently introduced a new software

package, Rent Sense, to improve the monitoring of arrears cases. This
went live in March 2015 and will enable us to analyse payment trends so
that officers can target their work more effectively.

Benchmarking

7.5 At the time of writing it is too early to benchmark our performance

against the results of our peer group for 2014-15; however, when
compared with 2013-14 results our year end arrears, shown as a
percentage of the annual rent roll, achieved a top quartile position.

7.5.1 The top quartile position was <=2.22%.

Former tenant arrears (FTA)

7.6 The collection of former tenant rent arrears was, at 91,119, just 475
short of the annual target of 91,594. The target was set to improve the
previous years collection by at least 5% so this was a positive result.

7.7 Write offs for the year were 53,198 lower in 2014-15 than in the
previous year, demonstrating the positive measures being undertaken in
pursuing outstanding debt before agreeing that the debt cannot be
collected.

6
 Welfare reform

Social sector size criteria

7.8 At the end of March 2015 there were 314 households currently impacted
by the social sector size criteria housing benefit deductions (otherwise
known as the bedroom tax). The average weekly deduction currently
applied is 22.82.

7.9 Overall throughout the year there have been 86 households newly
impacted by the HB reduction, and 111 households whose
circumstances have changed, resulting in the reform no longer affecting
them a net reduction of 25.

7.10 Of the 111 households no longer affected by the deductions, eleven

have achieved this through moving via the mutual exchange scheme,
four by transfers, and 41 by coming off housing benefit altogether.

7.10.1 It should be noted that a number of the 41 households who have

stopped claiming HB have a history of periods of claiming benefit,
followed by periods of work, and so on.

7.11 A further breakdown of the 111 households is shown on the chart below.

No. moving out of social sector size criteria - 2014/15

No. No longer claiming Housing Benefit 41

No. Household/circumstance change or
46
update
No. Other tenancy terminations 4

No. Evictions (Arrears) 0

No. Deceased 2

No. Claim now pensionable 3

No. Mutual Exchanges 11

No. Transfers 4

0 10 20 30 40 50

7.12 The rent collection rate for the 314 households for the whole of 2014-15
was 97.52%, compared to the overall TMO collection rate of 99.65%.
This represents an overall increase in the current groups combined
arrears of 3758 since April.

7
 Since April 2014,

40.8% of households have seen no change in their arrears/rent

accounts,
23.25% have reduced their arrears,
35.8% have seen their arrears increase, by an average of
293.28 per household.

7.13 The percentage of households in receipt of discretionary housing

payments (DHP) has decreased to 19.4%, from 26.7% at the end of
December.

Benefit cap

7.14 At the end of March there were 15 TMO households subject to the
benefit cap. The average deduction currently applied is 73.12 per week.

7.15 The group of households affected by the cap has remained relatively
stable in comparison with the bedroom tax group.

7.16 The rent collection rate for the group for 2014-15 is 97.41% with
combined arrears of 4044.22, a rise of 846.49 since March 2014.

7.17 Nine households are currently in receipt of discretionary housing

payments.

8 Tenancy checks

8.1 The TMO have introduced tenancy checks from October 2014, and to
date 189 forms have been completed. This is a successful result
considering these visits are unannounced and can take a considerable
amount of time to complete.

8.2 This project will continue to be driven forward in 2015/16. The vital
information gathered from residents will be fed into the new CRM system
being developed for the TMOs Customer Services Centre.

9 Leasehold collection

9.1 All targets for service charge and major works collection for the year
have been surpassed.

9.2 An annual reduction in service charge arrears of 33,000 and 240,000

in major works charge arrears was achieved for the year. For the first
time since the TMO took over the capital programme from RBKC in
2003, major works arrears are below 1 million.

9.3 It is now the sixth year running that the home ownership team has
achieved and surpassed their income targets. The team has reduced
arrears on both major works and service charges by 5.1 million during
the past six years, whilst billing 26.5 million.

8
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Homeowner arrears (service charges & major works)

9.4 The teams work in promoting direct debits has also paid off, with the
number of homeowners paying by this method increasing by 13% during
2014-15, bringing the total number of homeowners that pay by direct
debit to over 40%.

10 Asset management

10.1 The former non-decency and average SAP rating PIs have now been
superceded by the following performance indicators. These allow the
TMO to report more meaningful returns in these two areas.

1. The number of properties successfully brought up to the agreed

TMO standard internally. Up to the end of March we have brought
327 properties up to this level. Our year-end target was 231
homes.

2. The number of properties successfully brought up to the agreed

TMO standard externally. Up to the end of March we have
brought 1420 properties up to this level. Our year-end target was
1933 homes.

3. The percentage of properties with an energy performance

certificate where a SAP improvement has been achieved by our
current programme. At the end of March 1341 homes had
achieved this status against a year-end target of 1350.

10.2 The reason for the differences between the year-end actuals against
year-end projections for PIs 1 and 2 are two fold.

10.2.1 Some works that were originally planned for 2014-15, and were
predicted to have an impact on the second and third PI, have been
moved into 2015-16.

10.2.2 These include works in the north cyclical redecoration programme and
Grenfell Tower improvement works.

9
10.2.2.1 There have been some delays in the external repairs and
redecoration programme in 2014-15. This has been caused by poor
contractor performance resulting in delays while works are completed
to a satisfactory standard. This has resulted in the contracts running
into the 2015-16 financial year

10.2.3 There are works that have been completed but where we are awaiting
formal confirmation of completion and these will not be included until
formal data returns are received and validated.

10.3 The capital budget of 9.748 million has been fully utilised.

11 Anti-social behaviour

11.1 A positive result was seen in the satisfaction levels recorded by ASB
complainants in 2014-15, with satisfaction in both the handling and
outcome of ASB cases exceeding set targets for the year.

11.2 Overall the TMO has seen an improvement in customer satisfaction

levels; however, the number of ASB surveys returned still remains low
compared to the number of cases closed. Gong forward we will be
measuring the number of surveys that are returned.

11.2.1 This will continue to be addressed with telephone surveys being carried
out and reminder letters being sent to residents, with the ultimate
objective of increasing the level of resident feedback to help shape our
services going forward. We will continue to report on the number of
surveys returned in 2015-16 to ensure that this is effectively monitored
going forward.

11.3 Extensive work has been undertaken within the TMO following the
introduction of the ASB, Crime and Policing Act 2014. This has included
revising our policy and procedures, training staff and reviewing working
practices.

11.3.1 This has led to an increase in partnership working with the TMO now
an active member in multi-agency groups reviewing high-risk ASB
cases.

12 Community alarms service

12.1 All target surpassed for 2014-15. As detailed in the last performance
report to the board, targets for 2015-16 have been raised. At present the
targets are industry standards.

13 Resident engagement

13.1 The Resident Engagement Team was successful in achieving its targets
for the year. The number of residents attending the training and
employment road-shows did fall short of the target by five; however, this

10
 was affected by the timing of the final road-show which falls in the new
financial year.

Resident associations

13.2 A total of twelve residents associations or compacts have been set up or

re-launched during 2014-15, as listed below.

Grove House RA Wiltshire Court RA

Appleford & Bosworth RA Nottingwood House RA
32 Golborne Road compact 34 Oxford Gardens compact
Southern Row compact Cecil Court RA
Basing Street compact Stable Way compact
Brick Barn Close compact Knights House compact

Quarter four events

13.3 In January the annual senior citizens party was held at the Holiday Inn,
Kensington and was attended by one hundred and fifty residents. The
Mayor, Councillor Maighread Condon-Simmonds also attended to
support the event and took time to speak to all of the residents.

13.4 The final communities outreach surgery was held on the 26th February at
the Kensington Resource Centre. This concludes the pilot project which
commenced on the 1st April 2014.

13.5 The final Your Route to Success employment and training road-show is
scheduled to take place on the 16th April.

Partnership working

13.6 Two new partnerships were established during the final quarter of the
year.

Spear Spear offers young people between the ages of 16 and 24 a

six week training course to help them kick start their career. They will
be attending future TMO events to recruit to their course.

West London Clinical Commissioning Group (WLCCG) this

organisation is made up of local GPs and health professionals
responsible for purchasing health services. They aim to engage with
TMO residents to get feedback on the services that they receive.
WLCCG will be working with the TMO and attending future TMO road-
shows and events.

14 Complaints

14.1 During the year the TMO received 288 new complaints, a small increase
on the 271 received during 2013-14.

11
14.2 Following industry wide trends the majority of complaints have been
concerned with our repairs and maintenance services, as detailed below.

Service Area No. Complaints As a % of all complaints

Repairs Direct 108 38.3%
TMO Repairs Team 75 26.6%
Engineering Teams 36 12.8%
Assets & Regeneration,
19 6.7%
incl. Capital
Total 238 83%

14.3 During the same period the TMO closed 282 complaints, of which 273
were closed at stage one, 8 at stage two and 1 at the appeal stage.

14.4 Of these, 93.95% of stage one responses were answered within target
as were 100% of stage two responses. The single appeal was also
undertaken within set timescales.

14.5 As well as managing the 288 new complaints, the team also actioned
505 complaint enquiries, of which 99% were handled within target.

14.5.1 Of the 505 enquiries, 91 related to the TMOs repairs team, 71 for
Neighbourhood Management (South), 57 for Neighbourhood
Management (North), 34 for the Customer Service Centre, 33 for
Repairs Direct, and 25 for the capital team.

14.6 Our improved performance this year has been assisted by the
establishment of a complaints officer post within Repairs Direct. The
team has also been working closer with managers within the repair
teams to support complaint investigations and this has had a direct
impact on our ability to meet our targets.

14.7 The TMO Complaint Policy and procedure is being reviewed at present.
As part of this we are looking at our current definition of what constitutes
a complaint and what constitutes an enquiry. As such, our formal
definitions may be amended going forward.

14.7.1 Potentially this may impact on the number of formal complaints logged,
with stage one complaints possibly showing an increase in numbers,
and complaint enquiries showing a decrease.

14.7.2 The complaints and enquiries will remain centrally logged but there will
be a likely increase the numbers handled through our formal process,
with the anticipated effect of increasing the quality and depth of
response, ensuring follow up actions are fully completed, and that
learning outcomes are reviewed.

12
 Governance

14.8 Following a recruitment drive during the final quarter of the year the
number of residents becoming new Members of the TMO reached 443,
just short of our annual target of 460, but a positive result.

15 Recommendations

15.1 The Board is invited to comment on the content of the report.

YVONNE BIRCH
DIRECTOR OF PEOPLE & PERFORMANCE

13
BOARD KPI REPORT
QUARTER 4: 2014-15
BOARD KPI REPORT - QUARTER 4: 2014-15

Repairs & Customer Service Centre

Key Performance Indicator 2013-14 Q1 Q2 Q3 Q4 2014-15 Status Target UQB

Repairs Direct
Emergency repairs completed in target 98.91% 99.7% 98.7% 92.3% 91.5% 95.5% >=99%
Non-emergency repairs completed in target 97.19% 98.4% 96.6% 91.8% 87.2% 93.1% >=98%
Void repairs completed in target 99.10% 99.2% 95.6% 92.1% 93.0% 95.2% >=90%
Satisfaction with completed repairs 94.00% - 91.1% 96.1% 97.7% 93.7% >=95%
Post inspection pass rate 97.7% - 63.3% 71.9% 57.9% 63.5% >=90%
Recalls as a % of completed orders 2.6% 2.5% 2.7% 2.6% 1.7% 2.3% <=5%

Gas Servicing
Properties with valid LGSC 99.92% 100.00% 100.00% 100.00% 99.45% 99.45% 100% 100%
Properties without LGSC 5 0 0 0 36 36 0
Without LGSC > 3 months 0 0 0 0 0 0 0

Customer Service Centre

Calls received 87,843 19,674 18,810 22,539 22,673 83,696 - info
Calls answered (%) 91.75% 92.0% 89.5% 91.9% 91.2% 91.2% >=95%
Average waiting time (secs) 74 46 58 50 78 58 <=25

Voids & Lettings

Number of re-lets 164 26 51 58 67 202 - info
Re-let time (calendar days) 21.10 21.69 29.10 26.53 18.39 23.86 <=23
% rental loss 0.81% 1.07% 1.45% 1.35% 1.28% 1.28% <=0.75% 0.90%
Voids being prepared for letting 44 70 65 68 46 46 <=40
Voids unavailable for letting 19 19 21 20 23 23 - info
14/05/2015 14:59 Page 1
BOARD KPI REPORT - QUARTER 4: 2014-15

Rent Collection & Home Ownership

Target for
Key Performance Indicator 2013-14 Q1 Q2 Q3 Q4 2014-15 Status Target
period
Rent Collection
Rent collected as a % rent due (excl arrears b/f) 100.84% 99.33% 99.52% 99.70% 99.65% 99.65% 100.10%
Current arrears (million) 0.984 0.983 1.017 1.072 0.932 0.932 0.934 0.934
Arrears as % rent roll 2.05% 2.01% 2.08% 2.19% 1.90% 1.90% 1.91%
% of arrears over 7 weeks 4.32% 4.29% 4.58% 4.63% 3.96% 3.96% <=4.5%
% Rent collected (social sector size criteria
103.39% 95.27% TBC 96.27% 97.52% 97.52% - info
households

Former Tenant Arrears

Cash Collection year to date 87,232 21,613 21,553 15,084 32,869 91,119 91,594 91,594
Write Offs year to date 133,291 2,268 48,701 0 29,124 80,093 - info
Housing benefit payments collected year to date 12,796 3,290 1,371 2,554 3,384 10,599 - info

Home Ownership
Service Charges collection rate 105.42% 25.85% 27.60% 25.07% 27.20% 104.68% 100.21% 100.21%

Major Works collection rate 185.37% 34.18% 24.34% 30.30% 26.40% 129.88% 77.87% 77.87%

Asset Management
Number of homes internally brought up to KCTMO
- - 142 76 109 327 231 231
standard
Number of homes externally brought up to KCTMO
- - 612 622 186 1420 1933 1933
standard
Number of homes where SAP rating has increased
523 658 160 1341 1350 1350
through planned works
% Capital Programme Delivery Spent of Annual
103.0% 27.2% 47.9% 69.7% 99.8% 99.8% >=99% 71.1%
Budget

14/05/2015 14:59 Page 2

BOARD KPI REPORT - QUARTER 4: 2014-15

Neighbourhood Management

Target
Key Performance Indicator 2013-14 Q1 Q2 Q3 Q4 2014-15 Status Target for
period
Grounds Maintenance

% Inspections achieving required standards 97.28% 97.83% 98.10% 98.49% 98.50% 98.28% 95.0%

Cleaning
Callbacks 156 38 26 24 20 108 <20pm
QA failures 3 3 0 8 0 11

Ant-Social Behaviour
New cases 225 46 56 37 58 197 -
Live cases 60 65 68 62 88 88 -
Satisfaction with handling 83.7% 80.0% 100.0% 88.9% 80.0% 85.3% >=81%
Satisfaction with outcome 78.9% 80.0% 100.0% 88.9% 80.0% 85.3% >=76%

Community Alarms Service

Total Calls Received 101,303 27,680 20,101 29,492 21,254 98,527 -
Answered within 60 seconds 98.3% 98.2% 98.6% 98.4% 97.0% 98.1% 90%
Emergency visits attended within 45 mins 96.3% 91.4% 96.7% 95.1% 98.5% 95.4% 90%
Customer satisfaction 98.5% 100.0% 97.3% 100.0% 97.5% 98.5% 90%

Resident Involvement
No. new members joining the Children's TMO - 10 14 9 3 36 25 25
No. new members joining the Youth TMO - 8 0 93 10 111 60 60
No. residents signing up to 'Get on Board' 338 41 12 99 42 194 144 144
No. new Residents' Associations or Compacts 7 3 3 2 4 12 7 7
No. residents attending the Training &
363 56 26 - 63 145 >=150 150
Employment roadshows
Attendance at Residents' Conference 240 - 322 - - 322 >=275

14/05/2015 14:59
BOARD KPI REPORT - QUARTER 4: 2014-15
Complaints & Correspondence

Key Performance Indicator 2013-14 Q1 Q2 Q3 Q4 2014-15 Status Target UQB

Complaints
Stage 1 complaints answered 207 60 90 63 68 282 -
% answered in target 87.9% 95.0% 92.2% 92.1% 97.1% 94.0% 90%
Stage 2 complaints answered 1 1 2 4 2 9 -
% answered in target 100% 100% 100% 100% 100% 100% 90%
Appeals answered 1 0 0 1 0 1 -
% answered in target 100% - - 100% - 100% 90%

Correspondence
W2 correspondence actioned 9252 2178 1477 1896 2229 7780 -
% answered in target 96.4% 92.3% 92.8% 93.8% 95.0% 93.5% 90%

14/05/2015 14:59 Page 4

BOARD KPI REPORT - QUARTER 4: 2014-15
Human Resources & Governance

Target
Key Performance Indicator 2013-14 Q1 Q2 Q3 Q4 2014-15 Status Target for
period
Human Resources
Total establishment 199 203 208 213 214 214

Sickness days absence per employee 4.49 4.51 4.98 6.34 5.50 5.50 <=5.5

Governance

Percentage attendance at Board

81.8% 93.3% 79.3% 68.4% 85.3% 80.9% info
meetings
No. new TMO Members signed up 468 35 22 58 331 446 >=460 460
No. Members voting in AGM 681 - 1089 - - 1089 >=749

14/05/2015 14:59 Page 5

 Agenda Item: 11
THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
TENANT MANAGEMENT ORGANISATION LIMITED

Open

For decision

TMO Board
21st May 2015

Report title: Business Plan Strategies

Authority for decision: The Board has the strategic responsibility

for agreeing the Business Plan.

Recommendations: To agree the Business Plan Strategies

Regulatory/legal requirements: The Board owes the duty to the

organisation to promote its success by
setting a business plan that provides a
strategic direction for the organisation.

Business Plan link: This paper sets out the Business Plan
Strategies

Equality Impact Assessment/comment: There are no equality implications.

Resource implications/VFM statement: This is within existing resources.

Risk: In the event that the Board does not agree

and monitor the business plan of the
organisation, the organisation will lack a
strategic direction which will limit or inhibit
its future success.

Appendices: 5

Total number of pages including 51

appendices:

Name, position and contact details of Yvonne Birch, Director of People &
author: Performance ex 6478

1
 BUSINESS PLAN STRATEGIES

1. PURPOSE

1.1 The purpose of this report is to agree the Business Plan Strategies.

FOR AGREEMENT

2. INTRODUCTION AND BACKGROUND

2.1. The Business Plan was agreed by the Board on 23rd July 2014 and at the time,
the Board were advised that five strategies should be developed to underpin
the Business Plan. They are:
2.1..1. Customer Strategy
2.1..2. People Strategy
2.1..3. Investment Strategy
2.1..4. Value for money Strategy
2.1..5. Growth Strategy

3. DEVELOPING THE STRATEGIES

3.1. The Board were asked to consider what level of involvement they would prefer
to have in the production of the strategies and it was agreed that a Business
Plan workshop was held on 19th March. The strategies attached are based on
discussions held at the workshop. They were also circulated after the away day
for further comment.

3.2. Each strategy has an accompanying Development Plan which outlines the
actions required to achieve the strategic objectives and the milestones over the
life of the Business Plan.

4. RECOMMENDATION

4.1. The Board is requested to agree the Business Plan Strategies.

Yvonne Birch, Director of People & Performance ex 6478

 Appendix 11.1.1

Customer Strategy 2014 2017

1 Introduction
The TMOs business Plan 2014 2017 was agreed by the Board in July 2014 and
sets both the vision and mission for the company and as the strategic priorities for
the next three years.

Vision
Our community a great place to live

This vision is an aspirational target and looks 10 years ahead. It recognises that the
majority of the Board and the residents live in the borough and are a part of the
community we serve.

Mission
Delivering excellent services through resident-led management

The mission is a realistic target and looks some five years ahead. The mission
reflects the fact that the TMO already deliver more than housing services (such as
resident training, employment, welfare reform support, commercial property,
community alarm services and so forth) and there is an aspiration to do more

Strategic priorities
Our mission is underpinned by five strategic priorities which need to be achieved to
deliver the mission:

customers at the heart

fantastic people work here
invest to make great homes and communities
deliver excellent good value services
grow our scale and scope.

Each of these priorities is supported by a strategy and this strategy supports the
priority of Customers at the heart.

1
2 Aim
Our customer service strategy aims to deliver excellent services to our customers
however they choose to access them. They will deal with customer focused staff who
will take ownership of the customer enquiry ensuring that they are responded to
courteously effectively and efficiently.

3 Scope
We mange approximately 10,000 homes on behalf of the Council and the customer
strategy will apply to every aspect of the TMOs work. The range of services that the
TMO delivers on behalf of Kensington and Chelsea is set out in the modular
management agreement and other services the Council wishes us to deliver through
additional funding, such as tenancy support through welfare officers.

Services are delivered to customers from two main offices: Blantyre in the South and
Network Hub in the North. In addition to this we have a customer call centre and a
small office at Lancaster West Estate. The strategy goes beyond the staff that work
in these areas and encompasses all staff within the TMO in their customer facing
roles.

4 Stakeholders and external environment

All customers of the TMO are our stakeholders and this will range from our residents
to RBKC councillors and officers. We are also living in an increasing digital age
which has already changed the way we shop, work and play and has also changed
customers perceptions of how they access our services and the way they receive
information.

5 Strategic objectives
The objectives of the Customer Strategy describe the main ways in which we can
achieve the overall aims of the strategy. Our objectives are:

ensuring that our service delivery is excellent

providing a variety of access methods to suit customers needs
using the latest technology to deliver joined up services

Ensuring that our service delivery is excellent

There are a number of factors which contribute to excellent service delivery and
these include:
2
 1. Understanding our customers

Our starting point understands who our customers are and what services they
need and want. We need to know how and when they want to access these
services. Understanding the cyclical nature of demand helps us to anticipate the
level of customer requirements over time and from this we can undertake the
necessary capacity planning. We will collect customer profile information in a
number of different ways and our tenancy audit programme will provide detailed
household information.

Customer insight means analysing our customers and identifying groups across
the organisation. Our current resident age profile shows that 68% of our
customers are aged 60 and over. Our Community Alarm Service and Supported
Housing service help us to focus resources to help customers to live
independently.

2. Culture

We need to create a culture of customer focus that will translate into our
customers receiving an excellent experience when contacting the organisation.
The People Strategy provides the framework for how our employee engagement
work will be implemented and embedded throughout everything that is delivered.

3. Staff training, development and support

Our staff are our most important and valuable asset. The TMO recognises and
value the contribution that our staff make in delivering services. We aim to
ensure staff are well motivated and equipped with the right skills and knowledge
to deliver excellent services. A corporate customer service training programme
has been developed and delivered annually across the whole organisation. A
leadership and management training plan is to be implemented in 15/16 to
support our managers within the business. The customer service centre now has
a dedicated trainer that helps to coach, mentor and performance manage the
quality of the calls answered by the customer service advisers.

4. Managing demand and expectation through consultation and

communications

If we do not know what our customers want we cannot hope to meet their
expectations. It is important to pass feedback from customers to staff at all
levels. It is vital that we complete the feedback loop and demonstrate that it is a
learning process and that we have taken into account the outcome of
consultation exercises. We will be setting up a consumer panel that will be made
up of groups of customers with the aim of obtaining feedback on the quality of our
service. The panel will look at specific areas and will also undertake mystery
shopping to test quality. The TMO has eight Area Review Boards (ARB) and 64
resident associations which operate geographically across the borough. As a
3
 tenant-led organisation effective contact and communication with our customers
is a critical factor in the success of the Customer Strategy.

5. Performance management, change management and continual

improvement

An effective organisation has clear targets which enable it to recognise and build
on success and address opportunities for improvements. A performance
management framework leads into a cycle of change management and continual
improvement.

Providing a variety of access methods to suit our customers

Customers access our services in a variety of different ways and we need a
co-ordinated joined up approach if we are to deliver real benefits to our customers in
the form of improved service delivery and efficient use of resources. Research has
shown that customers will use a variety of different channels for the same
transaction; for example initial information via the internet, further details from the
contact centre and the completion of the transaction in the service reception.

We will review and improve access at:

Our office main receptions

Two main reception areas at the Network Hub and the Blantyre office, plus a
satellite office at Lancaster West. These offices provide customers living in the
north and south of the Borough with a face to face facility that provides a high
quality, seamless and consistent service. We will make the best use of
information technology to ensure the majority of enquiries are resolved at the first
point of contact for the convenience of our customers.

Customer Service Centre

The purpose of the Customer Service Centre is to handle many different types of
customer contact. The centre will predominately handle telephone calls, emails,
social media, online services, and text messaging. Significant investment into the
TMO website will enable our customers to use online services which will provide
a self service option for those customers that choose not to call the contact
centre.

Self-service delivery channels

The self-service delivery channels will enable our customers to access

information and services by themselves without dealing directly with a member of
staff. These compliment rather than replace traditional methods. Customers can
currently complete and submit online requests. This will be developed so that
customers can report a repair, choose and book their own appointment, and track

4
 the progress of the repair. They will also be able to access their own rent
account and make payments through an online service. The website will provide
residents with vital information on our policies and will signpost to other services
related to housing and the community.

Mobile services

Mobile or outreach services can be defined as those which are taken to

customers who are unable or unwilling to access our services. We have two
welfare officers who work within customers homes to provide support on benefits
and housing options. A new service providing two further neighbourhood support
roles will shortly be established to provide further outreach support.

Using technology to deliver joined up services

In order to ensure that our access channels deliver high quality joined-up services
we need to have the appropriate technology to support them. We will look at the
following key components:

1. Customer relationship management (CRM)

It is important that customer requirements drive IT developments in terms of

service delivery.. CRM helps us to understand our customers and provide high
quality consistent services. Staff are helped by scripting within the system to
resolve a wide range of straightforward transactions at the first point of contact.

2. Knowledge engine

Our ability to function efficiently and effectively depends on our ability to gather,
manage and share information and to develop our knowledge base. Technology
is an important enabler and can provide tools to harness and utilise information
and experience through creation of a knowledge engine. The collation of
information about services and activities is a critical factor in the success of any
CRM system and will provide staff with the knowledge they need to provide an
excellent service to our customers.

3. Payment engines

A payment engine can be defined as the technology and processes which enable
customers to pay for services using different types of payment and across
delivery channels. We are currently introducing new software called RentSense
that will enable staff to manage income collection more efficiently and to help
customers from falling into debt.

4. Document management System

A document management system manages documentation received and handled

by an organisation. The TMOs system, W2, ensures that documents are

5
 scanned, indexed and stored electronically. The system incorporates a workflow
function so that transactions and the relevant documents are directed to the
appropriate member of staff and dealt with quickly and consistently. This
provides managers with a way of tracking actions to ensure staff call customers
back when requested.

5. Geographical information systems

The TMOs geographical information system (GIS) enables storage, retrieval,

mapping and analysis of geographic data. It can help to answer queries relating
to land, property, people and services.

6. Mobile working

Mobile working allows staff to use mobile devices such as phones and tablets
whilst they are working outside of the office. The TMO has introduced mobile
working solutions for our estate services assistants (ESAs) to allow them to work
more effectively remotely without wasting time completing paperwork in the
office. Repairs Directs operatives also use mobile technology to receive their job
information and to record outcomes. This ensures a more effective use of their
time.

The TMO will continue to investigate such mobile solutions for other areas of the
business.

6 Resourcing
In reviewing the resource requirements for these objectives we need to understand
the capacity of the organisation to develop improved services and the addition of
new software. The funding for CRM has been built into budgets, and other initiatives
will be delivered from existing resources.

7 Monitoring
This strategy fits within the overall business plan and actions contained in the
delivery plan (Appendix 1) will be monitored and evaluated by the Board. Plans will
be updated and reviewed on a quarterly basis and refreshed annually as necessary.

8 Supporting policies and plans

The Customer Strategy has links with: the People Strategy, Investing in our Homes
and Communities Strategies (increased investment, new homes) and the Value for
Money Strategy (cost of our service).

6
Customer Strategy Delivery Plan Appendix 11.1.2

Strategy Strategic Actions Milestones 2015-16 2016-17 2017-18

Objectives
Customer Ensuring Complete programme of 25% of tenancy audits 50% of tenancy audits 75% of
Strategy that service tenancy audits complete complete tenancy
delivery is 90% of age and ethnicity audits
excellent profile complete complete
Set up Consumer Panel Consumer Panel operating Outcomes from
learning framework
Undertake mystery Outcomes from
shopping mystery shopping
Develop a programme of Achieve 10% customer Increase in overall
customer satisfaction satisfaction surveys for key customer satisfaction
surveys service areas to 80%
Undertake customer
insight work
Develop framework for
learning from feedback
Grow our CAS service 10% increase in CAS users
Create a customer Recruitment of two
focused culture neighbourhood support roles
Undertake staff training Roll-out of leadership and
development and support development programme
(see People Strategy)
Roll-out of customer service
training (see People
Strategy)
Consultation and Delivery of employee
communication engagement plan
Measure key service Individual KPIs for all staff 100% of staff
performance indicators Introduction of new values appraisals against new
and behaviours behaviour framework
Achieve KPI targets for
2015-16
Providing a Review of reception Review complete
Strategy Strategic Actions Milestones 2015-16 2016-17 2017-18
Objectives
variety of areas at office locations
access Continued development Introduction of self-service
methods to of online self-service reporting repairs
suit Review and update of the
customers website
needs Development of text
messaging services
Development of mobile Expansion of the support
services service roles
Using Use of CRM Introduction of phase 1 of Complete phase 2 of
technology CRM the CRM
to deliver Knowledge engine Complete knowledge
joined up developed engine
services Payment engine in place
Document management Complete key workflows
system and workflows including voids
Mobile working Introduce mobile devices Fully integrated
for customer facing staff mobile technology
 Appendix 11.2.1

People Strategy 2014 2017

1 Introduction
The TMO Business Plan 2014 2017 was agreed by the Board in July 2014 and set
out the vision and mission for the company as well as strategic priorities for the next
3 years.

Vision
Our community a great place to live

This vision is an aspirational target and looks 10 years ahead. It recognises that the
majority of the Board and the residents live in the borough and are a part of the
community we serve.

Mission
Delivering excellent services through resident-led management

The mission is a realistic target and looks some five years ahead. The mission
reflects the fact that the TMO already deliver more than housing services (such as
resident training, employment, welfare reform support, commercial property,
community alarm services and so forth.) and there is an aspiration to do more

Strategic priorities
Our mission is underpinned by five strategic priorities which need to be achieved to
deliver the mission:

customers at the heart

fantastic people work here
invest to make great homes and communities
deliver excellent good value services
grow our scale and scope.

Each of these priorities is supported by a strategy and this strategy supports the
priority that Fantastic People Work Here.

1
2 Aim
The overall aim of this strategy is to ensure that we have the right people, with the
right behaviours, attitudes and skills to ensure successful service delivery now and in
the future. In order to achieve this we need to improve employee engagement so
that employees are clear about our values, what is expected of them and how the
organisation supports them to achieve their potential. The success of the strategy
will be measured through achievement of 1* Best Companies accreditation in
2017 - 2018.

3 Scope
The scope of the People Strategy covers all employees of the TMO and Repairs
Direct, and is based on the range of activities and views which are collected and
measured through the Best Companies survey results.

A staff survey was carried out by Best Companies in November 2013, with the
results being published between January and March 2014. Staff focus groups were
held and have also fed into this People Strategy.

The results of the 2014 survey showed that there was a change in staff views since
the previous survey. Staff scored teams, managers and wellbeing higher than
previously, whilst personal growth and leadership scored lower.

4 Stakeholders and external environment

Attracting and retaining high calibre staff can be challenging. We need to be aware
of trends in recruitment and changes in the industry in terms of best practice
recruitment and retention. Our major stakeholders in this strategy are listed below:

The Board to set the strategic direction in terms of values and mission and
vision
Executive Team, Senior Managers and Managers Forum to engage with all
employees to improve motivation
Staff to become a motivated workforce, giving our customers value for
money
Residents as recipients of the intended outcomes of this strategy, its
important that we understand what their expectations are in relation to staff.

5 Strategic objectives
In setting our strategic objectives, we have looked at our previous Best Companies
results, benchmarking and staff consultation. Our five objectives are:

Developing our culture

2
 Customer focus
Increasing employee engagement
Developing our employer brand and becoming an employer of choice
Improving our internal communications

Developing our culture

The TMOs culture sets the broad standard for how we want to work, the values and
behaviours we want from all our staff and the way we want our managers to
manager both staff and their functions. As such, a key part of this strategys success
will be in developing our culture so that staff are clear on what is expected of them.

We will create initiatives to engage with and learn from our staff through
conversation, focus groups, individual meetings and briefings. We will refresh our
values through engagement with all stakeholders, including staff, the Board and
TMO members. We will embed the business plan into the organisation through
cascade briefings, our business as usual, departmental service plans, and
individual performance reviews. We will implement a leadership programme, both a
senior leaders programme and an aspiring leaders programme for all managers.

Improving our customer focus

A customer focus is imperative for the success of the Customer Strategy, and a key
part of the People Strategy is to create an environment where customer focus is a
natural and expected behaviour. We will think Customer First in all that we do. We
understand that this means internal and external customers. We will further develop
our customer focused personal development training programme. We will review all
our customer touch points and improve them where appropriate.

Increased employee engagement

The more engaged staff are with an organisation, the better their quality of work is
likely to be. To increase our employee engagement, we will seek to achieve at least
1* accreditation in the Best Companies Survey in 2017 2018 We will measure by
directorate and/or department increased engagement and reward our managers for
increasing engagement in their own areas.

Developing our employer brand and becoming an employer of

choice
We want to be seen to be a high quality employer and place to work to help attract
high calibre applicants.

3
We will refresh our employer brand through our employment offering, rewarding our
staff through our pay and grading scheme. We will seek to offer benefits to our staff
which are both engaging and competitive in the recruitment marketplace. We will
create programmes to engage with our community, and think about nurturing the
environment in all that we do. We will think about the well being of all our staff in all
our operations. We will start a conversation about building an apprenticeship and/or
graduate programme

Internal communications
A workforce that feels well informed about what is happening in the business and
with our stakeholders will feel more engaged. Internal communications is a vital part
of this process.

We will communicate with our staff on all that we do, ensuring that all internal
communications create engagement. We will engage in cross-team working to
create the best environment for our customers. We will listen to our staff and
consider their requests. We will not exclude staff from our messages. We will
review all our methods of internal communication.

6 Resources
Overall we do not anticipate a requirement for increased staffing levels over the next
3 years. All activities within this strategy will be carried out throughout the company
without the need for more staff and within existing budgets which have been agreed.

7 Monitoring
This strategy fits within the overall business plan and actions contained in the
delivery plan (appendix 1) will be monitored and evaluated by the Board. Action
plans will be updated and reviewed on a quarterly basis and refreshed annually as
necessary.

The results of this strategy will be seen through increased engagement levels in our
staff survey and our score for Best Companies carried out every two years.

8 Supporting policies and plans

The People Strategy has strong links with the Customer Strategy and impacts on all
other strategies. We have a full range of HR policies and the Communications Team
service plans will provide more detail.

4
People Strategy Delivery Plan 201417 Appendix 11.2.2
Strategy Strategic Actions Milestones 15/16 16/17 17/18
Objectives
People Developing our Create initiatives to engage Learning circles set up
culture staff through conversations,
Strategy focus groups etc.

Refresh our values and Values refreshed and

behaviours through embedded by
engagement with all November 2015
stakeholders

Embed the business plan and

strategies Briefings for all staff
held. Communications
developed

Implement leadership Leadership programme Leadership

programmes developed and start to programme
roll out in Q4 available to
all
Developing our Further develop our customer All staff to have
Customer Focus focused personal training attended module 3 of
customer focused
Review customer touch points training

Agree commitments to internal A code of practice for

customers internal customers
agreed
Increasing Job shadowing HR Team to keep Achieve
employee records and measure 1*
engagement activities. accredit
ation
ET to attend team meetings
Strategy Strategic Actions Milestones 15/16 16/17 17/18
Objectives

Staff conference Will be held in June

to focus on
customers
Team away days 100%
completion of
Standardise 1-to-1 process New 1 to-1 process forms by year
rolled out by Q3

Performance Development 80% completion of

Review forms at year end

Staff rewarded under new Fully implemented by Q1

Developing our pay and grading
employer brand
and becoming an Clarify the benefit package Clear benefit
employer of for staff statement to all staff
choice by Q3

Create programmes to allow Volunteering strategy

staff to engage with our revisited
communities

Apprenticeship/ graduate Look at graduate

programme considered trainee options
Internal Review Insider News Survey carried out by
communications Q1
Review other methods of staff Act on staff feedback.
communication

Celebrate success Goodie cupboard

 Appendix 11.3.1

Community Investment Strategy 2014 2017

1 Introduction
The 2014-17 business plan 2014 2017 was agreed by the Board in July 2014 and
set out the vision and mission for the company as well as strategic priorities for the
next three years.

Vision
Our community a great place to live

This vision is an aspirational target and looks 10 years ahead. It recognises that the
majority of the Board and the residents live in the borough and are a part of the
community we serve.

Mission
Delivering excellent services through resident-led management

The mission is a realistic target and looks some five years ahead. The mission
reflects the fact that the TMO already deliver more than housing services (such as
resident training, employment, welfare reform support, commercial property,
community alarm services and so forth) and there is an aspiration to do more.

Strategic priorities
Our mission is underpinned by five strategic priorities which need to be achieved to
deliver the mission:

customers at the heart

fantastic people work here
invest to make great homes and communities
deliver excellent good value services
grow our scale and scope.

Each of these priorities is supported by a strategy and this strategy supports the
objective to invest to make great homes and communities

1
2 Aim
This strategy sets out our approach to community investment which aims to add
value to communities by supporting residents to deliver the changes they want to
see in their neighbourhoods.

3 Scope
By doing this we can support communities, enhance the life of local people and help
create places where people want to live and work. This supports the TMO vision of
Our community a great place to live

Services provided by the TMO are set out in the modular management agreement
(MMA) and include working with residents. The TMO works with local people and
organisations to improve the wider social and economic conditions of our residents
which leads to improvements in our core management functions such as rent
collection and dealing with anti-social behaviour (ASB). Community investment
occurs across the organisation and supports the principles of being a TMO and the
housing management services we deliver. It refers to the money, time, skills and
expertise we in invest in developing and supporting our communities. We work with
a number of different communities each with its own needs and unique
characteristics. These include older people who live in the sheltered housing
schemes that we manage and residents of hostel accommodation.

4 Stakeholders and external environment

Our key stakeholders are residents, the Council and councillors and community
organisations who provide support to our residents.

The Localism Act 2011 contained a wide range of new powers designed to devolve
decision making and accountability to a local level. These include the Right to
Challenge, Right to Build, Right to Bid and powers around community asset
ownership. In addition there is a growing focus on participatory democracy and
co-production, which will increase expectations amongst tenants and communities
that they will play a more active part in shaping and designing their own services and
neighbourhoods. This goes far beyond the traditional approaches based around
consultation and tenant participation.

Changes brought in by Welfare Reform Act 2012 have also impacted significantly on
our residents and we are working with them to help mitigate the effects of the spare
room subsidy and the benefits cap and the eventual introduction of Universal Credit.

2
5 Strategic objectives
In order to focus our investment and direct our resources to where they are most
needed we have selected the following key themes:

employment, skills and training

financial and social inclusion
environment and community improvements

Employment, skills and training

This is a key objective for the Council, which funds a worklessness co-ordinator to
work with social housing providers to ensure delivery on their objective.

The impact of worklessness and poverty on households and individuals quality of

life can be far reaching and result in ill-health, crime, poor levels of educational
attainment and family breakdowns. Workless households are highly concentrated in
particular neighbourhoods including areas of social housing. We aim to support
residents in developing skills and accessing training opportunities in order to enter
into, and sustain employment. We will do this by:

1. Holding Employment and Training Roadshow

We have been holding roadshows across the borough in partnership with local
agencies to bring to residents a host of training and employment opportunities at
drop-in sessions. We have twenty four local agencies and projects who work with us,
including other social housing providers who operate in the borough. We will
continue with these roadshows and for 2015-16 the focus will also be on budgeting
and money advice in preparation for Universal Credit.

2. Maintaining the Gold Standard of the Worklessness Charter

The RBKC Housing and Worklessness Co-coordinator has developed a

Worklessness Charter which sets out standards for the work to help residents into
training and employment. We have recently been awarded the highest level the
Gold Standard and we will continue to work to these standards.

3. Apprenticeships

We have been actively working with local initiatives to recruit apprentices into the
organisation. Currently two apprentices are working with the Resident Engagement
Team and Your Credit Union. There is a commitment under the new procurement
framework for an increase in the number of apprenticeships offered by our
contractors and the success of this will be monitored. Repairs Direct will also be
looking to recruit apprentices in the next year.

3
 4. Supporting work placements and work experience

We assist and support work placements though our roadshows and directly offer
some work experience in teams, such as the Communications Team, and by using
volunteers in our Resident Engagement Team. We will continue to support work
placements in our organisation.

5. Clothing project

SmartWorks is a charity that helps women on low incomes to find work, succeed at
job interview, and develop their professional skills and networks. It provides a free
service to disadvantaged women which includes professional clothes and
accessories for job interviews.

We have arranged donation sessions for staff to bring in professional clothing which
can help other women succeed at job interview. We will continue to support this
charity

Financial and social inclusion

Financially excluded people are unable to access the basic financial service products
that are needed to participate in modern society. This can include bank accounts, the
ability to setup direct debits and standing orders and access to affordable credit,
amongst others.

Social exclusion is widely used to describe how some forms of disadvantage can
combine to push people out of the mainstream society. Research involving socially
excluded households across the UK highlighted that the biggest single issue was
antisocial behaviour of young people, including crime vandalism and the use of
drugs.

Our work on financial and social inclusion seeks to reverse these disadvantages by:

1. Helping residents to maximise household income through access to

welfare officers

The welfare reform officers were appointed to provide residents with advice in the
wake of the governments welfare reform changes and are funded by the Council.
They started by helping with those affected by the Social Sector Size Criteria (the
bedroom tax) and also with those whose benefits have been capped. They work to
help apply for discretionary housing payments for short term relief but look at longer
term options including transfer, mutual exchange and securing employment.

2. Facilitating access to affordable credit

We are one of the supporters of Your Credit Union, which offers fair loans and
ethical investment for people living, working or studying in Kensington and Chelsea.

4
We supported the setting up of the credit union by funding and further supports it by
hosting their offices on our premises. The Financial Director of the Credit Union is
also the Financial Director of the TMO. The TMO will continue to support the
operation of the Credit Union and protect residents from loan sharks.

3. Facilitating digital inclusion to enable access to apply for benefits, jobs

and services online

More and more key government services are now online, and many digital by default
(such as for receiving Universal Credit), so if our residents arent online, they could
be missing out on the support they need, and services they want.

Being online contributes to an improved life across a range of indicators. People who
are online are less concerned about skills, their work and their health; they
communicate more and are more connected to their local community.

Family households who are not online could be missing out on hundreds of pounds a
year in savings from online shopping and bill-paying. People are 25% more likely to
find work online, and then earn up to 10% more with digital skills. Its also estimated
that 75% and 90% of all jobs require some computer use.

It is essential that we help our residents get online and be safe when theyre there, to
be able to access a wider range of better paying jobs, and be able to claim relevant
benefits. We will continue to include training for residents at our roadshows and have
computers available in our receptions. We will produce a digital plan with the
Council.

4. Set up youth forums to engage with children and young people

We have established a youth engagement campaign, which has been running very
successfully. In the north of the borough the Childrens TMO has over 35 members
and meets regularly and have taken the children on a residential trip. Plans are in
progress for extending this to the south of the borough and to set up a Youth TMO
for 14-19 year olds. Partnerships have been established with Chelsea Football Club
Foundation to deliver sports/health workshops. We will work to continue to establish
partnerships and leverage funding for youth opportunities.

5. Working with health trainers and healthy eating initiatives

Health trainers are available at our roadshows and the Residents Conference. We
also run Cook and Taste workshops to encourage healthy eating. We have received
75,000 from tri-borough Public Health to refurbish a multi-games area which will be
used to support sport and exercise for local people. We will continue to seek out
opportunities to improve access to heath initiatives for our residents.

6. Supporting older people

5
Community Alarm Service support is available for all residents of the borough to help
maintain people in their homes. We manage five sheltered housing schemes and run
a Supported Housing Residents Group, who are able to bid for funds for
improvements to their clubrooms. We host an annual senior citizens party for our
older residents. We are also investigating supporting elderly and isolated residents
with a specialised visiting service tailored to their needs.

7. Supporting a local charity

Each year TMO staff choose a locally based charity to support. Staff carry out a
variety of fund raising activities from cake sales to raffles to raise funds. in 2014-
2015 over 1,200 was raised for St Johns Hospice. Staff also support national
charity events such as Red Nose Day and Jeans For Genes.

Environment and Community Improvements

We aim to ensure that our communities are safe places to live and are equipped with
the infrastructure they need to shape their aims and aspirations. The Council is
committed to ensuring that the neighbourhoods are greener, cleaner and safer and
assist our residents to live more sustainable lifestyles. They provide funding of
250,000 to directly help with this initiative and the schemes are put forward by the
communities and agreed by Operations Committee.

We will meet our aim by:

1. Helping community centres to develop financially sustainable models of

operation

Community centres are often underused and poorly maintained. We have set up a
project to review all of our community centres in order to standardise management
arrangements and lettings and to review hire fees. In some cases residents manage
their own centres and we will work with them to ensure that they are accountable
and assist in ensuring that these centres are used for the greatest benefit to our
residents. This project is self funding from the income raised by letting the centres.

2. Supporting the provision of projects and activities designed to reduce

antisocial behaviour and supporting crime reduction initiatives

The Housing Regeneration Programme (HRP) funds small projects to improve local
neighbourhoods and estates. Its an opportunity for residents to think about the
improvements that would make their immediate area a secure place to live. This
could be achieved by designing out crime and or anti-social behaviour by opening up
sight lines, boundary planting and ensuring defensible space.

6
Resident groups and/or the TMO can apply for funding for the projects, with
residents being involved at every stage

3. Facilitating community information sharing and communication

We facilitate many opportunities for residents to get together and share information
and learning. We host the annual Residents Conference for all residents and
support and encourage the setting up of resident association. Every year the RA
Chairs, with TMO support, have an event when they all come together for an evening
and share information and experiences as well meeting senior staff.. We circulate
quarterly newsletters to resident associations to keep them updated. We will
continue to support the setting up of resident associations and to ensure that there
are opportunities to communicate with us and each other.

4. Creating and improving spaces for play and interaction and keeping
places and spaces attractive and well maintained.

The HRP also funds projects which residents put forward that meet the following
criteria:

introducing planting and growing capacity, for example, window boxes or

raised planters.
redesigning areas of estates and blocks, for example, to improve access,
make the area look more inviting or to encourage better waste collection,
recycling and storage.
landscaping to improve community inclusion, for example, improving parks
and play areas.
Improving the environment / green issues.
Value for money, by reducing grounds maintenance costs for example wild
flower meadows or bound gravel.

The TMO also runs an annual gardening competition, with prizes for every category
including window boxes. We work closely with RBKC community gardens to
construct areas for residents to plant and grow their own produce including fruit and
vegetables.

6 Delivering the strategy

We believe that in order to achieve successful community investment and
sustainable communities that we need to take account of the following principles:

external Investment source and attract investment from external sources for
communities where it is most needed.

7
 partnership working Linking in with specialist organisations to ensure that
there is no duplication and that we utilise the best expertise.
relationship building with local partners, communities and strategic
organisations to widen the offer available to our communities.
enabling listening to our residents to find out their priorities and enabling
communities to shape their own solutions.

7 Resources
The Council directly funds much of our community investment. Other projects are
funded within our existing budgets. We aim to achieve value for money by using our
investment to leverage additional resources to ensure that projects are sustainable.

Future plans would be to provide funding opportunities for individual, groups and
organisations to bid for to support grass root initiatives and local projects.

8 Monitoring
We will use an established resident impact assessment model to monitor the
effectiveness of this strategy. We will monitor the delivery plan (appendix 1) to
assess progress against the actions and will also use measures such as numbers
participating in activities, organisations in partnership, resident satisfaction and
funding received for our projects.

9 Supporting policies and plan

This strategy is supported by a resident engagement Strategy and has key
dependencies to all strategies delivering the business plan.

8
Community Investment Delivery Plan 201417 Appendix 11.3.2

Strategy Strategic Actions Milestones 15/16 16/17 16/17

Objectives
Community Employment, Develop roadshows focusing on Hold two roadshows
skills and employment and training
Investment training
Maintaining Gold Standard of the Gold Standard maintained
worklessness charter

Apprenticeships Apprentices recruited under

framework agreement
Investigate apprenticeships at Appoint 2
Repairs Direct apprentices
to RD
Support work placements and Host at least two work
work experience experience placements

Support SmartWork clothing Hold at least one suit drive

project
Financial and Maximise income through welfare Welfare officers begin
social inclusion officers preparing residents

Facilitate access to affordable

credit Continue to support the
credit union
Set up and maintain children and
youth forums Children forum set up in
South. Youth forums
established in the north and
south

Work with health trainers and Hold three Cook and Taste
healthy eating initiatives events.

Supporting older people Host a senior citizens party

Strategy Strategic Actions Milestones 15/16 16/17 16/17
Objectives
Investigate visiting service
for older people.

Supporting a local charity New charity chosen and

1,000 collected
Helping community centres to New charges agreed and
Environment develop financially sustainable four centres improved
and community models of operation
improvements
Support projects to reduce anti Housing Regeneration
social behaviour and crime Programme bids agreed and
reduction delivered

Facilitating community information Four new resident RAs

sharing and communication established. Four RA
newsletters circulated
Creating and improving spaces for
play and interaction and keeping HRP bids approved and
spaces attractive and well delivered. Garden
maintained competition held
 Appendix 11.4.1

Growth Strategy 2014 17

1 Introduction
The 2014 17 business plan was agreed by the Board in July 2014 and set out the
vision and mission for the company as well as strategic priorities for the next three
years.

Vision
Our community a great place to live

This vision is an aspirational target and looks 10 years ahead. It recognises that the
majority of the Board and the residents live in the borough and are a part of the
community we serve.

Mission
Delivering excellent services through resident-led management

The mission is a realistic target and looks some five years ahead. The mission
reflects the fact that the TMO already deliver more than housing services (such as
resident training, employment, welfare reform support, commercial property,
community alarm services and so forth.) and there is an aspiration to do more

Strategic priorities
Our mission is underpinned by five strategic priorities which need to be achieved to
deliver the mission:

customers at the heart

fantastic people work here
invest to make great homes and communities
deliver excellent good value services
grow our scale and scope.

Each of these priorities is supported by a strategy and this strategy supports the
objective to grow our scale and scope.

1
2 Aim
The KCTMO Board has agreed that the company should grow to:

protect the business

retain and enhance influence
improve services for customers
regenerate communities and maximise investment in the assets
deliver better value
meet social purpose
retain excellent staff.

This strategy aims to build on the successes we achieved over the last five years;
this has focused on improving and increasing our service delivery and creating our
own repairs company, Repairs Direct, to improve the quality of the service and to
make a profit which can be reinvested in our community.

3 Scope
The scope of this strategy is to set out how we intend to grow our business across
the full range of services to generate revenue and capital that adds value and quality
to current customer services, and produces additional income which could be
reinvested to further enhance services.

4 Stakeholders and external environment

The growth strategy operates within the wider market context and Appendix 1
outlines the London market and the local tri-borough environment.

RBKC is our main stakeholder and, with its Housing Revenue Account (HRA)
freedoms, is developing a housing and regeneration strategy which will impact on
our strategy. It aims to:

select a small number of estates for place-shaping regeneration that will

include partial demolition of existing homes and infrastructure (schools);
development of new multi tenure homes; re-organisation of place and
community;

identify smaller bits of land which can be developed (Hidden Homes);

advance a primary role for the Council as a developer and facilitator of

regeneration primarily through off balance sheet vehicles.

2
5 Strategic objectives
Within the context of RBKCs strategy and an understanding of the market we have
identified the following strategic objectives:

working with RBKC on development, regeneration and place-shaping

reviewing current services
expanding asset and investment
developing new services
expanding resident membership
looking at opportunistic growth.

Development, regeneration and place shaping

As the Councils regeneration ambitions grow, we will continue to work in partnership
on identified regeneration sites to manage the process for consultation and delivery.
We have already demonstrated our credentials through the delivery of the Grenfell
Tower regeneration project, and developing a pipeline for the Hidden Homes
programme.

We will continue to offer RBKC a management service which is based on best value,
high quality and meeting the wider requirements for the management of
place-shaping our community. We will also work to ensure that we manage the
homes and tenures developed through the RBKC regeneration process and maintain
its estates overall.

Reviewing current services

We will review our current services that are outsourced, including cleaning, grounds
maintenance and any mechanical engineering service which is due for
reprocurement in the next three years. We will evaluate and assess our ability to
deliver that service in a similar service model to Repairs Direct.

Asset and investment

Alongside regeneration, the Council has indicated that it is intending to significantly
increase its capital investment in existing homes with an additional 28m over the life
of the business plan. Our intention is to expand our capital investment team to
deliver the extended programme and to get agreement to introduce the procurement
framework which will support our positioning to assist the Council more widely with
its regeneration ambitions.

3
Developing new services
There are a range of current and potentially new services that we could provide to
current and new customers. These might include: services for older people, the
Community Alarm Service and community initiatives. In 2015-16, the options will be
evaluated and a business case developed on the possibilities with a view to selecting
up to two areas for further growth and development.

In addition we service 2,500 leasehold properties in the borough, providing a range

of services from procurement and delivery of capital works, facilities and place
management, and general administration of charges. Within our partner boroughs
there is a potential market of over 15,000 service users who, together with private
owners, represent a large market. We will explore how we can market these services
to other providers and the private sector.

Repairs Direct returned its first operating surplus for 2013/14and work is ongoing to
improve the quality and responsiveness of performance. Repairs Direct is a natural
vehicle for growth and expansion. Within the life of this business plan it is expected
that Repairs Direct will achieve a solid platform for delivery and performance and will
increase its turnover and profit by:

reducing the number of sub-contractors and doing the work ourselves,

thereby improving the customer experience. This will be started in year one
(2014/15)
developing the capacity to deliver aspects of the capital programme over the
next three years
assessing its ability and market to deliver a service to leaseholders within
RBKC and/or the tri-borough market.
Looking at the market and deciding whether it has the skills and capacity to
look at external contracts or joint ventures with other organisations or local
authorities by the end of the plan.

Expanding resident membership

5,000 of our customers are members of the TMO. The continued support of our
customers is vital to the future stability of the TMO, given the annual vote of
members and the five year test of opinion. Over the last five years we have added
new members and seen increased participation in, and voting at resident Board
member elections and the AGM. This has resulted in better overall representation
that reflects our community, improved governance, and has strengthened our overall
representation and connection as a TMO. It also resonates strongly with RBKC that
the TMO does represent its residents. We should therefore continue to focus on and
develop our membership offer and seek to further increase the number of customers
who are also members of the organisation to 6,000 by 2017.

4
Opportunistic growth
Not all growth is planned and easily identifiable; therefore we will actively engage
with key stakeholders to identify opportunities and bring them to the Board for review
as they arise.

6 Resources
In reviewing the resource requirements for these objectives we need to understand
the capacity of the organisation to deliver its core business while exploring growth
opportunities.

The objectives set out above recognise this and attempt to build on the capacity built
into the 2015/16 budgets, carry out assessments of these opportunities, and review
any future resource requirements when the Company decides to go forward with
them.

7 Monitoring
This strategy fits within the overall business plan and actions contained in the plan
(appendix 2) will be monitored and evaluated by the Board.. Action plans will be
updated and reviewed on a quarterly basis and refreshed annually as necessary.

8 Supporting policies and plan

The Growth Strategy has links with: the Customer Strategy (Repairs Direct and new
services), Investing in our Homes and Communities Strategies (increased
investment, new homes) and the Value for Money Strategy (cost of our service).

5
Appendix 1: External environment

1 The London market

The market for KCTMO is primarily London where, over the last five years, we have
seen the following trends:

dramatic increases in the cost of land and property

a continued excess of demand for housing over available supply
the rise in prominence of the gla as an influencer of housing policy and
provider of grant subsidy
councils trying to develop housing (and generally failing) instead of the more
traditional partnerships with registered providers ; as a result the traditional
relationship between councils and stakeholders is shifting;
an older population with higher increases of associated vulnerability and
illnesses (like dementia) coupled with a reduction in the provision of care and
support;
a general re-evaluation of Councils strategic housing response, and in
particular:

(1) ALMOs being brought back in-house by all political parties including Ealing,
Hillingdon, Redbridge, Havering, Hammersmith & Fulham, Islington, Hounslow,
Enfield; Lambeth and Hackney will follow this year in 2015.

(2) ALMOs growing through local authorities, asking them to take on strategic
functions such as allocations, homelessness provision, and private sector
management but in some cases with additional soft control. We have also seen
ALMOs surviving where the local authority is moving them into the town hall (Brent
and Lewisham) and making them share services (Brent, Haringey);

(3) Stock transfer receding as a solution although no relaxation of the debt cap,
along with an emerging political consensus that this will remain, may suggest some
movement in a limited number of local authorities. Conversely, local estate transfers
are showing signs of movement:

a significant shift in housing supply from social and affordable housing to less
constrained private rented accommodation which means that the homes that
are being developed are less affordable to the majority, especially in London
all councils are faced with significant financial pressures caused primarily by
reduced subsidy, and constraints (either real or political) resulting in a
dramatic reduction in services (especially non statutory such as care and
support), and a progressive loss of key and experienced staff.

6
2 The local market - Tri-Borough

Tri-Borough
We have seen since the 2010 general election the impact of the Tri-Borough
relationship, with a host of strategic services being shared (adult social care, legal
and environmental services)and the outsourcing to private companies (such as
building facilities to AMEY). These changes have been driven by the need to save
money through bigger procurement, and protect the services, although RBKC are
perhaps better insulated than most from financial constraints.

Outside the sharing of services are Housing, Planning and Commercial Property
services. There are three different models of housing service delivery in the Tri-
Borough and there seems limited short term enthusiasm to add these services to the
sharing agenda:

Westminster (22,000 Homes) has an ALMO, which has 50% of its housing
services outsourced to Pinnacle with repairs also outsourced. They are
focused very much on developing new homes, and have a lettings agency for
the private market. 52% of its homes are occupied by leaseholders
Hammersmith & Fulham (12,000 homes) brought its ALMO back in-house and
split the borough into two by outsourcing housing management and estate
services to Pinnacle in the south and having an in-house model in the north.
The new Labour administration has now announced that it is carrying out a
review which will look at all options including,: transferring stock to either a
community gateway model or a council owned company (COCO); looking at
an ALMO model; transferring management to a TMO or a community mutual;
transferring the homes to an existing registered provider (RP); or creating a
new one by September 2015.
RBKC (10,000 homes) is happy with the TMO model and we see no threat or
political will to change this. Functions are clearly split with ourselves providing
housing management, capital investment, repairs, leasehold services; and the
Council providing strategic statutory services such as lettings, homelessness
and housing strategy including regeneration. We see no appetite for any of
the current services provided by the Council being transferred to another
provider. They have also been supporters of mutual type transfers with some
services being developed in that direction.

7
Growth Strategy Delivery Plan 2014 2017 Appendix 11.4.2

Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18

Regeneration and Complete Grenfell Project complete

Growth development with Tower refurbishment (11.5M)
Strategy RBKC
Deliver Hidden Homes Nine new Homes
programme & develop at Grenfell Tower
future pipeline (650K) delivered
Seven new
Homes at Worlds
End (742K)
delivered

Three new
schemes, with
five homes being
assessed (720K)
Work with RBKC on
identified estate RBKC and TMO
regeneration at work together on
Treverton, Warwick managing the
Road & Trellick Tower process for
consultation and
delivery

RBKC to confirm
TMO is preferred
manager for new
homes developed

1
Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18
RBKCs new council-
owned company set up TMO to work with
RBKC to
understand how
we can contribute

Review current External contracts: Review any Review any Review any
services Review all external contract as a new contract as contract as a
contracts and have business a new new
outline timeline for opportunity business business
reviews and business opportunity opportunity
assessments over the
next 5 years

Cleaning contract re- Decision to bring New service X

procurement : TMO to in-house or re- or
review and assess any procure Contractor
business opportunity in place

Repairs Direct: to Improvement plan Review Review

deliver key objectives to be completed Satisfaction Satisfaction
around quality and and delivered with repairs with Repairs
performance of Service Reduce the Increase in
number of sub- Increase in Surplus in
contractors Surplus in financial
financial Plan
Develop the Plan

2
Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18
capacity to deliver
parts of the
capital
programme
Asset investment Recruit capital team to Capital Capital Capital
deliver programme programme programme programme
delivered delivered delivered

Agree
forward
programme
in HRA
business
plan of

Evaluate opportunity to Explore and

provide services to investigate small
other providers provider market
(TMOs and
community
organisations)

Developing New Community Alarm Review/complete

Services Service (CAS): review and business plan
service capacity to agreed
increase services to Identify
private sector or look at investment
health opportunities requirements

3
Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18

Older tenants: review RBKC agreement

tenants profile to see if to increase
additional services funding to
required due to age address service
development

Leasehold Services: Decision to

assess the idea of a develop service
leaseholder repairs or not
service from Repairs
Direct
Expanding Complete review of Membership Membership Membership
Membership membership list to target archived target target
Services agree number of (5,500) agreed agreed
members (6,000) (6,500)
Review and look at
other membership
organisations to see
what works
Review resources to
deliver strategy

Opportunistic To monitor the market, Explore Westway

growth identify opportunities resident
and assess risk engagement
opportunity
4
5
 Appendix 11.5.1

Value for Money Strategy 2014 2017

1 Introduction
The 2014-17 business plan was agreed by the Board in July 2014 and set out the
vision and mission for the company as well as strategic priorities for the next three
years.

Vision
Our community a great place to live

This vision is an aspirational target and looks 10 years ahead. It recognises that the
majority of the Board and the residents live in the borough and are a part of the
community we serve.

Mission
Delivering excellent services through resident-led management

The mission is a realistic target and looks some five years ahead. The mission
reflects the fact that the TMO already deliver more than housing services (such as
resident training, employment, welfare reform support, commercial property,
community alarm services and so forth.) and there is an aspiration to do more

Strategic priorities
Our mission is underpinned by five strategic priorities which need to be achieved to
deliver the mission:

customers at the heart

fantastic people work here
invest to make great homes and communities
deliver excellent good value services
grow our scale and scope.

Each of these priorities is supported by a strategy and this strategy supports the
priority of delivering excellent good value services.

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2 Aim
The TMO is committed to providing high quality value for money (VFM) services for
our customers. VFM involves making the best use of its finite resources (both
physical and human) to deliver the highest levels of satisfaction and value added
services to our customers.

3 Scope
The VFM strategy underpins the five other strategic priorities (Customer, People,
Invest in Homes & Communities and Growth) which are set out in the business plan
by ensuring that the delivery of services offers good value to all stakeholders and
within the financial resources of the company and Housing Revenue Account (HRA).

The approach to VFM is not just about cutting costs but getting more from money,
staff and assets. The aim is to achieve the right balance between:

economy careful use of resources to save expense, time or effort

efficiency delivering the same level of service for less cost, time or effort
effectiveness delivering a better service or getting a better return for the
same amount of expense, time or effort.

Stakeholders and external environment

VFM rose to prominence in local government shortly after the creation of the Audit
Commission in the early 1980s. Councils were introduced to the three Es
economy, efficiency and effectiveness as key concepts in the assessment of VFM,
and these remain at the heart of government policy on VFM today. The National
Audit Office, inheritor of the Audit Commissions responsibilities for setting VFM
policy for local government, uses the same set of concepts virtually unchanged in 30
years.

Various governments have been more or less directive as to how VFM should be
approached, with various new initiatives being introduced: compulsory competitive
tendering, Best Value, housing inspections, Comprehensive Performance
Assessment and Comprehensive Area Assessment, and the establishment and then
abolition of the Tenant Services Agency as housing regulator.

Although TMOs, ALMOs and local authorities are not held to account by the Homes
and Communities Agency (HCA), the governance and VFM standards should be
used as self-regulating tools.

The TMO receives a management fee under the terms of the modular management
agreement (MMA) with RBKC from the Housing Revenue Account (HRA).

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The recent freedom in HRA finance where RBKC is now receiving all its rents and
has in place a strategy and HRA Business Plan which is projecting a proposed
surplus of 35m by 2020 .

The management fee for 2015-16 of 10.7m is 890k lower in absolute terms than
the fee for 2005-06 and 4.04m lower after adjusting for inflation. This represents a
saving of 28.4% on the management fee

4 Strategic priorities
The TMO has already achieved significant value for money savings (appendix 1) and
it is a continual process reviewing and accessing effectiveness. We have identified
four priorities that will ensure we continue to adhere to VFM principles.

understanding costs and how we compare to others

achieve VFM through effective procurement
efficiency in service delivery
promote and embed VFM culture

Understanding costs and how we compare to others

To deliver a successful VFM strategy we need to have a clear budget management
processes. This will enable us to better understand the costs of the services we
provide, support managers in their budget management and procurement roles,
contribute to service reviews and maximise the use of the financial resources
available to deliver the companys vision. To understand our costs and performance
we will:

1. Continue and improve our budget review including achieving a small

surplus

The TMO has been tasked by RBKC with improving services to become top quartile
and raising resident satisfaction. Any savings made in the period from 2009-10
onwards have been utilised in service improvements, the timing of which were
subject to the costs remaining within the budgeted surplus.

The surplus generated by business activities, including Repairs Direct, is forecast to

increase to 180k+ per annum. Decisions will be required in 2015-16 on the level of
reserves to be held both in the TMO and Repairs Direct. The utilisation of these
resources will, in part, determine the speed at which the other strategies can
progress.

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 2. Exercise budgetary control, in particular promoting budget holder
ownership

The budgets are set by the individual budget holders and brought together by
Finance. ET review the budgets during a challenge day where the budget holders
are challenged by ET on services and cost increases and growth. .

3. Benchmark with other organisations

The TMO has traditionally used Housemark for core benchmarking with a peer group
of London ALMOs and local authorities. This peer group is now extremely diverse,
with organisations ranging from 6,000 to 53,000 units, a varying range of
responsibilities. We will be working with Housemark to establish a peer group more
relevant to the TMO, based on the business drivers and criteria. The cohort could
include registered providers, ALMO, community gateways and other housing
providers. This work will be completed by June 2015 and be available for 2015
benchmarking. Once the cohort is established it will be possible to review prior year
information.

Achieve VFM through effective procurement

Procurement forms an integral part of the value for money strategy and has the
potential through modern methods to deliver service improvements. We will do this
through:

1. Framework agreements

The Board has agreed to the establishment of a framework agreement for four years
to carry out capital work and decorations. The total value of the framework
agreement could exceed 90m. The first years contracts have been awarded, but
are subject to leaseholder challenge. With the agreement of RBKC the TMO is taking
the framework agreement to the Upper Tribunal to get a determination binding on all
parties and which will also set a binding precedent for the whole sector. The hearing
is expected in summer 2015.

VFM was included as a part of the procurement matrix and is embedded in the
contracts.

2. Improved contract management and procurement skills

As a part of the service reviews, the TMO has recruited staff with an emphasis on
contract management skills in the asset management sector in place of staff with the
traditional direct engineering skills.

The contracts let in 2014-15 have all included VFM in the tender process and have
detailed provision to allow contract monitoring

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 3. Potential for shared services

We have held discussions and undertaken tender bids for a number of shared
services for other housing providers and RBKC. We will continue this process where
we consider the additional growth in services will benefit our residents.

Efficiency in service delivery

We need to ensure that we deliver cost effective services. We will do this by

A. Undertaking service reviews

Service reviews have been undertaken in all major areas in the last four years,
leading to significant changes in working practices and results.

The reviews will continue to meet changes in circumstance or opportunity. In the

medium/short term these will revolve around:

1. Introduction of customer relationship management (CRM)

2. Introduction of Universal Credit for benefits

3. Position of the TMO in the RBKC regeneration programme

These are addressed in other corporate strategies and plans.

B. Reviewing of our service level agreements

The TMO has a number of service level agreements (SLAs) created initially through
the MMA. As part of the MMA review individual reviews of each SLA will be
undertaken.

Promoting and embedding VFM culture

The Board has overall responsibility for direction and governance and agrees the
VFM strategy. The responsibility for delivery of the strategy and the action plan is
through the senior management team. They will ensure that the VFM Strategy and
delivery plan (Appendix 2) are put in place, reviewed on a regular basis and make
any suggestions for changes to the Board as appropriate.

All managers are responsible for ensuring VFM in the day-to-day management of
their service and in helping to consider VFM in any new proposals or reviews of their
service area. They will also need to work with the Senior Management Team to
ensure that VFM is understood by all staff who are encouraged to contribute ideas to
support this agenda.

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5 Resourcing
This strategy will be delivered within existing budgets and no additional resources
are required.

6 Monitoring
The actions contained in the plan (appendix 2) will be monitored and evaluated by
the Board. Action plans will be updated and reviewed on a quarterly basis and
refreshed annually as necessary.

7 Supporting Policies and Plan

The VFM Strategy underpins all other strategies.

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Appendix 1
Since 2009-10 the TMO has had a policy of maintaining an operation surplus of
around 30k - 50k per annum. The expenditure of the TMO has consequently
fallen in line with the management fee.

The TMO has been tasked by RBKC with improving services to become top quartile
and raising resident satisfaction. Any savings made in the period from 2009-10
onwards have been utilised in service improvements, the timing of which were
subject to the financial restraints above. Staffing costs form 70% of the TMO
expenditure and is the major resource of the organisation. The effective use of the
expertise and knowledge and control over costs is the main element of providing
VFM.

Until 2015-16 the TMO has followed the national agreements for local government
pay. This has resulted in a pay freeze followed by two years of below inflation pay
rises. The staffing levels were also reduced substantially and by 2009/10 were 20%
below the level of five years earlier.

Year Posts Satisfaction

2004-05 240 64%

2007-08 211 56%

2009-10 194 73%

2014-15 196 75%

2915-16 204

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The reduction of staffing levels in 2007-08 also coincided with fall in resident
satisfaction levels to 56% and a 2009 breach notice issued by RBKC. It has
regular satisfaction levels of 85% and our challenge is to get to that level.

Since 2009 reviews of each department have been undertaken, including both
staffing levels, expertise and methods of working, with the intent of improving
services and building capacity into the organisation to meet demands going forward.
The each change was costed and timed so as to fall within the financial constraints
of a breakeven position.

In the last two years the position has remained positive and the TMO has taken on
additional staff to meet the changes in legislation and outlook and undertake projects
on behalf of RBKC. These include:

1. Two welfare support officers: to maximise income into the HRA and reduce
tenant debt

2. Two tenancy Support officers: to support our resident and reflects the aging
population in our community starting in 2015/16

3. Project manager for parking: to implement the traffic management order

(TMO) to protect HRA parking income (700,000) from legislative changes

4. Project manager for the community rooms: to improve the health and safety
management and access; and to cover KCTMO costs and increase income

8
 5. Project manager for parking: to review underperforming underground
garages, resulting in three new leases for storage and business centre which
will generate an additional XXX,XXX for the HRA per year over the length of
the lease

6. 2 Customer Service Centre operators: to improve customer access and

reduce call waiting time

7. 5 Capital Programme posts for framework procurement and bring external

consultancy back in-house: to build capacity within the TMO and to manage
the risk of the proposed Capital Procurement Framework

Voids and adaptations surveyor: to continue to improve void turn around times and
so reduce pressure on RBKC allocations These posts have been funded through
specific additional management fees, increased income streams or recharge back to
the RBKC capital programme.

In addition to the review of staffing the TMO has undertaken the following to control
costs:

Renewed the leases at The Hub and 346 Kensington High Street offices at
zero rent increase and additional rent free periods for a further five years

Invested 250K to create the Blantyre office in return for a 10 year rent free
period

Introduced W2 document storage and workflow system reducing storage

requirements, This resulted in 20% savings in office costs as well as
improving accountability and platform for our CRM System

Keystone: asset management and regeneration data which has significantly

improved our knowledge and ability to accurately project capital investment
requirements and has helped get RBKC support for an additional 28m
capital investment over the next four years

Established Repairs Direct: to improve the quality of the service to residents

by stronger and more focused management, also to make a profit which can
be reinvested in our community

In 2013 the Board made a decision to bring repairs in-house; this saved the HRA an
estimated 750k in procurement fees. The Board also decided to make an
investment of 700k in Repairs Direct. It is intended that this investment be repaid
over five years.

As at January 2015 the TMO had built up reserves of 2.23m (excluding pension
reserve) and a cash balance of 650k.

Repairs Direct

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In 2013 the responsive repairs service was brought in-house through a wholly owned
subsidiary, Repairs Direct. The company made an operating profit in its first trading
period 2013/14) and is forecast to make a surplus in excess of 100k per annum
over the next five years.

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Value for Money Strategy Delivery Plan Appendix 11.5.2

Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18

Value for Understanding Budget: continue and New FD to review Implement

Money costs and improve budget review overall budget strategy
comparing with strategy and
others investment
requirements

Set budget for

2016/17 for Group
at target and
challenge utilising
improved
benchmark
information

Agree Board Use annual

strategy on analysis to
utilisation of inform
reserves budget
decisions

Benchmarking: set up Complete peer Use annual

peer group for Housemark group selection by analysis to
benchmarking based on July inform budget
business criteria and decisions
drivers Receipt of full peer
group analysis

1
Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18
October

Achieve VFM Framework: complete Obtain binding Update Update

through effective implementation of decision from Upper framework framework
procurement framework agreement Tier Tribunal and manage and manage
mini mini
Complete competition competition
leaseholder
consultation on Undertake
framework leaseholder Undertake
consultation leaseholder
Undertake on works consultation
leaseholder using on works
consultation on framework using
works using framework
framework Increase
customer Increase
Launch framework satisfaction customer
with satisfaction
contractors/consulta Invest in
nts, emphasising community Invest in
delivery and V|FM with Community
in TMO context contractors with
contractors
Increase customer Start
satisfaction apprenticesh Start
ip scheme apprenticeshi
p scheme

2
Strategy Strategic Objectives Actions Milestones 15/16 16/17 17/18
Complete
Utilise contract recruitment of
management skills to contract
monitor contracts management and
framework team

Continue to hold
Shared services discussions with
other providers
Efficiency in Implement CRM project
service delivery (refer to the Customer
Strategy)

Assess impact of Commencement of Assess U C

Universal Credit on Universal Credit in 1st year and
arrears and the working RBKC revise
methods of Income resources
Management where
necessary

Agree regeneration SLA on Involvement Involvement

requirements and regeneration in in
information with RBKC regeneration regeneration
programme programme

SLA reviews Review Legal

Services SLA
Promote and Publicise strategy to staff All staff aware and
embed VFM and key partners signed up to VFM
culture strategy
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4
 Agenda Item: 12

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED

Open

For information

Board Report
21st May 2015

Report title: Chief Executives update report

Authority for decision: The Board has ultimate responsibility for

monitoring the performance of the Company.

Recommendations: For information

Regulatory/legal requirements: None

Business Plan link: Keeping abreast of performance initiatives within

the organisation, and external developments
affecting social housing.

Equality Impact Equality and diversity issues are taken into

Assessment/comment: consideration.

Resident consultation: NA

Resource implications/VFM Keeping up to date on the latest developments in

statement: social housing is important for shaping the
business. Improved performance will help the
Company to achieve its VFM objectives.

Risk: Failure to engage with the external housing

sector could have an adverse effect on the
Company in keeping abreast of developments
within the sector. There is also reputational risk
if performance fails to improve across the
Company.

Appendices: 0

Total number of pages including 4

appendices:

Name, position and contact Robert Black, Chief Executive

details of author: 020 7605 6311

1
CHIEF EXECUTIVES REPORT

1. HRA ASSETS DISPOSAL AND CONVERSION POLICY

The Housing and Property Scrutiny Committee considered an HRA Assets

Disposal and Conversion Policy at their meeting on 12th March 2015. The
policy sets out the limited circumstances under which social housing within the
HRA could be considered for sale on the open market (disposal), or be
converted to an alternative tenure (conversion).

The capital receipts arising from the sale of properties are to be ring fenced to
Housing to support the development of new affordable housing, reinvestment
and estate regeneration. Any additional rental income from conversions will
be credited to the HRA and may be used to finance additional capital and
revenue expenditure.

Capital or revenue raised through the disposal or conversion of any social

housing will contribute to the provision of more social housing, resulting in no
overall loss to the total affordable housing stock that the Council has
available. The policy would also support regeneration initiatives and be used
to reinvest into existing housing stock. Under the policy, any resources raised
through disposals will be used for the Edenham Way scheme, Hidden Homes
and future regeneration schemes.

There will be criteria for identifying potential properties which will act as a
framework for making a decision as not all properties meeting the criteria will
be disposed of or converted to a different tenure. The asset management
strategy will be used to identify assets that are suitable for disposal or
conversion. When properties become void which have a negative or marginal
net present value (NPV), they will be considered for disposal or conversion.
The number of leaseholders will also be taken into consideration, and also the
propertys capital and potential rental value for conversion to intermediate or
market rent which will improve its NPV.

Any recommendation for disposal or conversion will be presented to the

Cabinet or the Cabinet Member for Housing, Property and Regeneration for a
decision to proceed. Once a property has been identified for disposal, and
Cabinet has made a decision to dispose, a request will be sent to the
Secretary of State if appropriate. If a property is not suitable for disposal or
conversion, it will be retained as social housing.

Each year, the RBKC Housing Department will include a summary of

disposals or conversions of social housing in the HRA Business Plan, and a
report will be presented to the Cabinet Member for Housing, Property and
Regeneration listing the addresses of properties sold, the net receipt and
planned use of receipt. Information will also be provided on properties
converted to a new tenure type.

2
 At their meeting on 12th March, the Housing and Property Scrutiny Committee
felt that the policy should refer more explicitly to high value properties, and it
was suggested that wording be added to the effect that the Council would take
into consideration the capital value of a property, and that the disposal of high
value properties would be considered where possible and desirable.

2. FRAMEWORK TRIBUNAL

A date has now been set for the hearing by the Upper Tier Tribunal on the
framework proposals, and this will take place on 29/30 June 2015. No works
will be undertaken to leaseholder properties under the framework until the
decision has been received, which is expected to be around October 2015.

3. UPDATE ON RESIDENT BOARD MEMBER ELECTIONS

The capacity training for residents interested in standing for election as a

Resident Board Member was carried out by UK Engage between 17th March
and 8th April 2015. A letter then went out to all TMO Members during the
week commencing 27th April inviting nominations for the Resident Boad
Member elections by 5th June. The election itself will be held between 22nd
June and 21st July 2015.

4. BRIEFING ON VOIDS

A briefing on the new voids process was held on 13th April for Board
Members which also included a visit to void properties where works were in
progress.

5. VALUES/BEHAVIOURS

Work is being done across the company at present on refreshing our values/
behaviours, which started with a joint session of the Executive Team and
Senior Management Team on 14th April. It is planned to have a facilitated
session for Board Members during the Board away days on 12th June. The
Values/Behaviours will be part of the People Strategy in the new Business
Plan which is elsewhere on the Board agenda.

6. DATA PROTECTION/FREEDOM OF INFORMATION TRAINING

The Company Secretary has been carrying out refresher training on Data
Proection, and Freedom of information for all staff groups across the company
which has helped us reconsider how we deal with these issues.

7. WEST LONDON CITIZENS HOUSING ENQUIRY

A group from the West London Citizens Housing Enquiry visited on 28 th April
2015, and met with the Chief Executive and Yvonne Birch.

3
 Agenda Item: 13

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED (the Company)

Confidential

For Information

Board Report
21st May 2015

Report title: Internal Audit Plan 2015/2016

Authority for decision: The Board is responsible for establishing,

overseeing a risk management framework in
order to safeguard the assets and reputation of
the Company.

Recommendations: It is recommended that the Board consider the

this report and upon due consideration pass a
resolution in the following form:

The Board RESOLVED TO approve the

Internal Audit Plan 2015/2016 as
recommended by its Finance, Audit &Risk
Committee.

Regulatory/legal The Board has a duty to promote the success

requirements: of the Company which includes ensuring that
the risks of the Company are highlighted,
monitored and addressed.

Business Plan link: Not Applicable

Equality Impact There are no equalities implications associated

Assessment/comment: with this decision.

Resident consultation: There is no resident consultation required.

Resource implications/VFM Not applicable

statement:

Risk: The Internal Audit Plan outlines the audits to be

undertaken to highlight the risks existing within
business areas, functions, processes or
systems that the Board or its Committees will
monitor to ensure mitigation and/or elimination.
Appendices: None

Total number of pages

including appendices:

Name, position and contact Fola Kafidiya, Head of Governance &

details of author: Company Secretary, Ext 6399
 THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
TENANT MANAGEMENT ORGANISATION

FINANCE AND AUDIT COMMITTEE 16 APRIL 2015

REPORT BY THE TRI-BOROUGH DIRECTOR FOR AUDIT,

FRAUD AND RISK MANAGEMENT

ANNUAL AUDIT PLAN FOR 2015/16

This report presents the Internal Audit annual plan for

2015/16. It outlines the planned work to be completed by the
Internal Audit Service during the year.

The purpose of this report is to seek approval from the

Finance and Audit Committee for the proposed annual audit
plan for 2015/16.

FOR APPROVAL

1. THE ANNUAL AUDIT PLAN

1.1 The Accounts and Audit Regulations 2015 require that public
sector bodies must undertake an effective internal audit to
evaluate the effectiveness of its risk management, control and
governance processes, taking into account public sector
internal auditing standards or guidance. To fulfil this
statutory function Internal Audit reviews management and
service delivery arrangements within the TMO, as well as the
key financial and other control systems in place. The work
undertaken by Internal Audit is governed by the Public Sector
Internal Audit Standards (PSIAS) (2013).

1.2 Internal Audits principal role is to provide management, Board

members and other stakeholders with independent assurance
on the adequacy of the control environment (comprising the
systems of risk management, internal control and
governance). In addition Internal Audit can also:

Promote cost effective control practices throughout the

organisation.
Provide timely value added advisory services to
management.
Provide independent review and investigation of
allegations of fraud, waste, abuse and improper activity.
1.3 The Internal Audit Plan for 2015/16 is attached at Appendix 1
to this report. It provides details of the planned audit
programme for the key systems and other reviews for the
TMO. Details of the different types of review carried out by
Internal Audit are at Appendix 2. Appendix 3 shows the
Strategic Audit Plan which profiles the audit universe and
timings of audits since 2008/09.

1.4 The audit plan has been prepared using three sources of risk
identification:

The Internal Audit risk based methodology;

The TMO Corporate Risk Registers; and
Input from individual TMO managers.

1.5 The Audit Plan is a working document and is required to be

both flexible and dynamic. As such it will be reviewed
regularly to ensure that it adequately reflects changing and
emerging risks. In addition to the identified audits the
following audits are carried forward from 2014/15 at the
clients request and will be undertaken in Qs1-2 of 2015/16:

Repairs inc. Voids client side arrangements;

Procurement Governance;
IT Strategy.

1.6 All completed reviews identified as providing Limited or No

Assurance are subject to a formal follow up review process.
The results of the follow-up reviews are reported to the
Committee and include a reassessment of the Assurance level
taking into account the effectiveness of the actions taken by
TMO management.

1.7 The Internal Audit Service works together with the TMOs
External Auditors to minimise duplication and maximise the
benefit the TMO derives from the total audit resource.

2. RECOMMENDATION

2.1 The Finance and Audit Committee is recommended to approve

the proposed audit plan for 2015/16

MOYRA MCGARVEY
TRI-BOROUGH DIRECTOR FOR AUDIT, FRAUD AND RISK
MANAGEMENT
Contact officer: John Barnett - Senior Audit Manager

Phone: 020 7361 3783 E-mail: [email protected]

 APPENDIX 1
KCTMO INTERNAL AUDIT PLAN 2015/16

Service Area Key Client Manager Audit Timing

Finance and IT
Accounts Payable - Managed Barbara Rupa Bhola Full Review Q3/4
Accounts Matthews

Accounts Receivable - Managed Barbara Rupa Bhola Full Review Q3/4

Accounts Matthews

General Ledger TMO Managed Barbara Rupa Bhola Full Review Q3/4
Accounts System Matthews
Accounting Systems - TMO Barbara Rupa Bhola Full Review Q3/4
Company Great Plains Matthews
Leasehold Service Charges- Barbara Daniel Wood Full Review Q1/2
Consultation Matthews
Major Works Charges: Consultation Barbara Daniel Wood Full Review Q1/2
Matthews
Barbara Full Review
IT Network Security Matthews Nural Miah Q3
Barbara Full Review
IT Server Infrastructure Matthews Nural Miah Q4

Operations:
Rents/Income Team Sacha Jevans Kiran Singh Full Review Q2
Housing Management Sacha Jevans Teresa Brown Full Review Q2
Lifts Contracts - Management Sacha Jevans Peter Maddison Full Review Q2/3
Property Data and Standards Team Sacha Jevans Peter Maddison Full Review Q3
Asset Management
Cleaning Contract - Management Sacha Jevans Teresa Brown Full Review Q1

6 of 12
 APPENDIX 1
KCTMO INTERNAL AUDIT PLAN 2015/16

Service Area Key Client Manager Audit Timing

People and Performance:
Health and Safety Barbara Janet Seward Full Review Q1
Matthews

Executive:
Risk Management Robert Black Janet Seward Full Review Q2
Corporate Governance Robert Black Fola Kafidiya Full Review Q3/4

7 of 12
 APPENDIX 2
INTERNAL AUDIT METHODOLOGY

Full Reviews
Internal Audit determine whether the systems and controls provide
management with a satisfactory level of internal control to ensure:

Compliance with statutory requirements and Departmental

policies/procedures;
The achievement of objectives in their service plans;
The safeguarding of assets, completeness and accuracy of
records; and
The efficient, economical and effective use of resources.

High Level Reviews

Internal Audit will identify changes to the system and any risks
associated with these changes and undertake the following:

Perform a key risk and key control evaluation as a result of

identified changes and test compliance with these key controls;
and
Follow up on recommendations made in previous audits and re-
test compliance with previously identified key controls.

IT Reviews
Information systems or information technology audits examine the
IT infrastructure controls to determine if the information systems
are safeguarding assets, maintaining data integrity and operating
effectively to support the achievement of service objectives.

Specific Review
Specific reviews are undertaken when the work planned or
requested will not provide a complete audit of the area under
review, instead focusing on the specific areas within an auditable
area, which Audit and/or management consider requires attention.
For example this could apply when a new process, contract or a new
methodology has not been fully embedded, but it is timely to review
the progress and/or the impact of the changes at an early stage.

8 of 12
 KCTMO- Strategic Audit Plan Appendix 3

Service Frequency
Area Key Client Manager Years 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Finance
Accounts
Payable -
Managed Barbara Rupa Full Full Full Full Full Full
Accounts Matthews Bhola Two/Three Review Review Review Review Review Review
Accounts Barbara
Receivable - Matthews
Managed Rupa Full Full Full Full Full
Accounts Bhola Two/Three Review Review Review Review Review
General Barbara
Ledger Matthews
TMO
Managed
Accounts Rupa Full Full Full Full Full
System Bhola Two/Three Review Review Review Review Review
Accounting Barbara
Systems - Matthews
TMO
Company Rupa Full Full Full Full Full
Great Plains Bhola Two/Three Review Review Review Review Review

Home
Ownership
Leasehold
Service
Charges
Consultation Barbara Daniel Full Full
Matthews Wood Three Review HLR Review
Income / Barbara
Debt Matthews Daniel Full Full Full Full Full
recovery Wood Two/Three Review Review Review Review Review
Estimates / Barbara
Final Matthews Daniel Full Full Full Full
Accounts Wood Two/Three Review HLR Review Review Review
Major
Works
Consultation Barbara Daniel Full Full
Matthews Wood Three Review HLR Review

9 of 12
 KCTMO- Strategic Audit Plan Appendix 3

Service Frequency
Area Key Client Manager Years 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Income / Barbara
Debt Matthews Daniel Full Full Full Full Full
recovery Wood Two/Three Review Review Review Review Review
Estimates / Barbara
Final Matthews Daniel Full Full Full Full
Accounts Wood Two/Three Review HLR Review Review Review

Operations
Rents /
Income Kiran Full Full Full Full
Team Sacha Jevans Singh Two/Three Review Review HLR Review HLR Review
Repairs inc
Voids
Management
and Larger
Repairs / Full Full Follow Full
Decants Sacha Jevans tba One/Two Review Review Up HLR Full Review Review
Special
audit
undertaken
on TMO
Direct in
13/15 Full Review part 2
Housing Full Full
Management Sacha Jevans Four/Five Review Review
Residents Full Full
Engagement Yvonne Birch Four/Five Review Review
Community
Alarm Full Full
System Sacha Jevans Four/Five Review Review
Cleaning Full Full
Contract Sacha Jevans Four/Five Review Review
Parking - inc
Clamping Full Full
Contract Sacha Jevans Four/Five HLR Review Review
Garage Full Full
Lettings Sacha Jevans Four/Five Review Review
Procurement Full Full Full
Management Sacha Jevans Four/Five Review Review Review
10 of 12
 KCTMO- Strategic Audit Plan Appendix 3

Service Frequency
Area Key Client Manager Years 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Asset
Investment
and
Engineerin
g

Capital Peter Full Full Full

Programme Sacha Jevans Maddison Three Review Review Full Review Review
Peter
Maddison
Electrical Full
Team Sacha Jevans Four/Five Review
Peter
Maddison
Full Full
Lift Team Sacha Jevans Four/Five Review Review
Property Peter
Data and Maddison
Standards
Team -
Asset Full Full
Management Sacha Jevans Four/Five Review Review
Peter
Maddison
Full Full Full
Gas Team Sacha Jevans Three Review Review Review
Peter
Maddison
Insulation Full
Projects Sacha Jevans Specific Review

People and
Performanc
e
Fay
Payroll / Johnston Full Full Follow Full Full
Personnel Yvonne Birch e Two/Three HLR Review Review Up Review HLR Review

11 of 12
 KCTMO- Strategic Audit Plan Appendix 3

Service Frequency
Area Key Client Manager Years 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Health and Barbara Full Full Full

Safety Matthews Three Review Review Follow up Review
Complaints Full Full Full
Management Yvonne Birch Four/Five Review Review Review

CEO
Business Anthony Full Full
Continuity Robert Black Parkes Two/Three Review Full Review Review
Risk Anthony Full
Management Robert Black Parkes One/Two HLR HLR Review HLR

Corporate Fola Full Follow Full Full

Governance Robert Black Kafidiya One/Two HLR Review Up/HLR HLR Review HLR Review

IT
Anthony Nurul Full
IT Strategy Parkes Miah Three Review HLR HLR
Disaster Anthony Nurul Full Full Full Full
Recovery Parkes Miah One/Two Review Review Review Review
Data
Security
including Anthony Nurul Full Full Full
EDMS Parkes Miah Two/Three Review Review Review
Network Anthony Nurul Full Full Full Full
Security Parkes Miah Two/Three Review Review Review Review
Server
Infrastructur Anthony Nurul Full Full Full Full
e Parkes Miah Three Review Review Review Review
Anthony Nurul Full Full Full
Academy Parkes Miah Two/Three Review Review Review

12 of 12
 Agenda Item: 14

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

TENANT MANAGEMENT ORGANISATION LIMITED

Open

For Discussion

Board Report
21st May 2015

Report title: Directors & Officers Liability Insurance Update

Authority for decision: The Board is responsible for overseeing the strategic
direction of the Company

Recommendations: The Board is invited to consider the contents of this

report and discuss any implications for each of the
members of the Board.

Regulatory/legal The Company is required to have insurance policies

requirements: in place in respect of its responsibilities including
Directors & Officers Liability Insurance to cover any
loss or liability which has been or may have been
incurred by a Board Member or Officer of the
Company in connection with their duties or powers in
relation to the Company..

Business Plan link: NA

Equality Impact NA
Assessment/comment:

Resident consultation: NA

Resource implications/VFM NA
statement:

Risk: In the event that the Company does not have

adequate insurance cover for its board members or
officers, or, where it does retain adequate insurance
cover for certain insured persons who do not
immediately notify the insurer in writing of a potential
claim being made against any person insured by the
policy or of the receipt of notice from any persons of
the intention to make a claim against any person
insured by the policy, there may be a direct risk of
personal loss or liability to the Company or the
person.

1
Appendices: NA

Total number of pages 2

including appendices:

Name, position and contact Fola Kafidiya

details of author: Head of Governance & Company Secretary
020 7605 6399
1. Introduction

1.1 The Companys has the following insurance policies in respect of itself and
its subsidiary:
- Directors & Officer Liability cover provided by the NHF;
- Group insurance cover provided by Zurich covering Public Liability,
Employers Liability, Fidelity Guarantee, Motor Vehicles etc.

The cover runs from April to March in each year, and the cover is being
renewed for another year.

1.2 The Directors & Officer Liability cover with NHF has been renewed. The
policy provides cover for Insured Persons (including directors, officers,
trustees, committee members and all employees) in respect of their personal
liability following an actual or alleged Wrongful Act committed in the course of
their management duties.

A Wrongful Act is defined as any actual or alleged error, misstatement,

misleading statement, omission, neglect, breach of statutory law, breach of
duty, breach of trust, libel, slander, breach of contract, breach of warranty of
authority, wrongful trading, employment wrongful act or other wrongful act.

The cover includes defence costs and awards/damages (excluding fines or

penalties which are deemed uninsurable at law).

1.3 The Board is invited to note that cover for the Company under the policy is
conditional upon immediate notice in writing to the insurer of any claim made
against any person insured by the policy or of the receipt of notice from any
persons of intention to make a claim against any person insured by the
policy.

1.4 The Board is requested to agree that if any Board member (present or
absent) or officer is aware of any such claim or any such notice of intention
or of any circumstances or incident which may give rise to a claim he or she
will immediately notify the Company Secretary in order that notice in writing
together with all relevant details can be submitted to the insurer.

2. Conclusion

2.1 Members of the Committee are requested to notify the Company Secretary of
any circumstances or incidents that may give rise to a claim in respect of
their management duties.
 Examples

Directors and Officers Liability Insurance

Awareness of the need for Directors and Officers Insurance has increased largely as
a result of a change to S310 of the Companies Act, giving statutory recognition to the
practice of Directors and Officers insuring their liabilities.

1. Wrongful Trading and Insolvency

A company was set up which provided various services to Council Tenants to help
them buy their homes. The services included arranging mortgages, loans for
improvements and appropriate insurance covers

The company ran up losses of 6M and a DTI investigation was prompted.

Creditors of the company can claim against the directors for any losses suffered
as a result of the liquidation and the directors could seek reimbursement under a
Directors and Officers Policy.

A holiday company collapsed leaving 700 customers stranded abroad.

Receivers were called in to look into the affairs of the company and as a result of
their findings, High Court writs were issued against the directors for alleged
wrongful trading.

Under a D & O Policy, the defence costs in a wrongful trading action would be
covered, as would any judgement awarded.

2. Negligence

One company made a bid to take over another. The chairman of the company,
subject to the takeover, wrote to all its shareholders advising them to take no
action, i.e. not to sell their shares because the share price offered was less than
that recommended.
When the offer was finally accepted, the share price was less than the original
offer.

One investor is currently considering an action in respect of the loss suffered as a

result of acting on the chairmans advice. Any shareholders suffering a loss would
be able to take action against the Company Board and a D & O Policy would
reimburse the Board for their liability in respect of any losses.

Two companies, A and B merged. Later the newly merged company announced
the discovery of a large fraud. The fraud was uncovered after payments for a
contract suddenly ceased. Investigations revealed that 2 of the 5 supply
companies had been wound up before the alleged contracts were signed

The shareholders of the newly merged company can sue the original directors of
Company B, in respect of the losses incurred as a result of the decrease in value
of the new company shares. The directors can claim reimbursements under a D &
O Policy.
The director of a subsidiary of a house builder faced an action under
Environmental Legislation, alleging a protected population of newts had been
disturbed by construction of new housing.

The Health and Safety Executive brought an action against a director of a

wood distributor for corporate manslaughter following the death of an
employee. The legal costs of defence were covered under the D & O Policy.

The minority shareholder and former director of a family run property

consultancy brought an action against her former fellow directors alleging
breach of trust and unfair dismissal. The legal costs of defence were covered
under the D & O Policy.