Business Plan
2008 – 2011
February 2008
List of Contents
Page
1.
Mission Statement
4
2.
Introduction
5
3.
Business Planning Framework
6
4.
Strategic Objectives
8
5.
Environmental Assessment
10
6.
Risk
14
7.
Financial Projections
15
8.
Delivery
16
9.
Appendices
1. Risk Management Strategy
2. Risk Register
3. Operational Plans
4. Core Performance Indicators
2
Technical Appendices
1.
Business Review - Harvey/McNeil
2.
SST Business Case (Oct 2007)
3.
SDFP
4.
Long Term Development Plans
5.
5 and 30 year Cash flow projections
3
1.
Mission Statement
“To successfully regenerate Wellhouse into a community where the
physical and social fabric has been renewed and where people are
proud to live”
Mission Statements by their very nature provide a broad expression of
our aims, for them to be measurable they must be articulated as
strategic objectives
As well as strategic objectives it is important to describe the core
values that will inform all our business.
Core Values

To be representative of, and accountable to the local
community.

To be open and accessible.

To be fair and equitable, treating every individual with courtesy
and respect.

To be innovate and creative.
4

Where ever possible working in partnership with other
agencies to provide a comprehensive service to the residents
of Wellhouse.

Deliver services which are customer focussed.

Always recognising the resources of the Association belong to
Association tenants’ and striving to secure value for money at
all times.
5
2.
Introduction
‘The purpose of a Business Plan is as a management tool to ensure
that the organisation’s activities fulfil its objective’
The Business Plan is primarily an internal document for the benefit of
the Management Committee and Staff. The plan reflects our strategic
objectives and the contribution of individual departments in achieving
these objectives.
A plan is produced on an annual basis; however it will normally cover
a three year period. In essence Management Committee and staff are
clear about priorities and the future direction, what resources are
required to deliver the strategy and how risks can be identified and
managed
The following is a useful checklist:

Planning will be embedded in the culture of Wellhouse
Housing Association.
6

The plan will clearly articulate strategic objectives.

There will be a clear link between the objectives and
operational plans.

Committee Members, Staff and Residents will be involved in
the development of the plan and subsequent reviews.

Financial Implications will be an integral part of the planning
process.

The plan will be a tool for performance management and
progress against strategic objectives and operational plans
which will be under regular review.
7
3.
Business Planning Framework
The business plan provides a focus for many of the key relationships
and activities of the Association.
The diagram highlights the two way process that informs the plan and
throughout the year provides a focus for continuous improvement.
Risk
Committee
Control
Partners
Operational
External
Plans
Factors
Business
Plan
Housing Policy
KPIs
Financial
Tenant
Planning
Engagement
The planning process has been informed by a number of events. The
pivotal event was a review day 21st April 2006. This year it was
agreed that there had not been sufficient significant change in the
position of the organisation to warrant another full day.
8
However there were a number of meetings of a working group of
Management Committee and Staff that examined the following issues:
9
Planning Activity
Purpose
Review Day
A review of performance and an examination of objectives and possible risks attached.
SWOT Analysis
To identify strengths, weaknesses, opportunities and threats which are relevant to our
strategic objectives.
Business Review
Recent review was an independent assessment of our current business context and
performance.
Risk Assessment
The Assessment was carried out with the assistance of Zurich Municipal, a risk strategy
day was held - identification and analysis of risk, subsequently producing a Risk
Register and Action Plans.
Financial Planning
Ensure our financial assumptions/projections are coherent and consistent and
10
examining the impact of our strategic objective on our financial position.
11
4.
Strategic Objectives
During the period of the Business Plan, the Association will work
towards
achieving
the
following
strategic
objectives.
a) To continue to develop and sustain a vibrant mixed community of
high quality affordable homes.
Our priority will be to create housing which:

Meet local housing needs, current and anticipated.

Continue the physical regeneration of the area.

Has lower running costs for tenants and the organisation.

Has low environmental impact.

Is popular with tenants and responsive to their views.

Is planned and deliver efficiently.
b) To achieve continuous improvement in the quality of the housing
services.
The Association’s aim is to provide services which are:

Focussed on the needs of customers.

Responsive to the needs of all sections of the community.

Effective and efficient

Ensure where practical that all residents have the opportunity
to influence, policy and the overall direction of the Association.

A performance culture.

A working environment where staff and committee challenge
themselves to improve.
c) To secure Community Ownership for every tenant in Wellhouse

Ensure we have the support of GHA tenants for transfer.

Develop a fundable transfer proposal which demonstrates
long-term
sustainability
in
financial,
community
and
neighbourhood management terms.

Demonstrate that any transfer will have no detrimental impact
on the overall position or interests of current tenants.
d) To drive the social and economic regeneration of Wellhouse.

With partners provide facilities and services which promote
personal development, provide opportunities and improve life
chances of the people of Wellhouse.

Develop a regeneration strategy that articulates these aims
and objectives, detailing resource allocation and measurable
outcomes.

Assist Wellhouse Community Trust with the development of
social businesses.

Effective engagement with Community Planning, playing a lead
role in the co-ordination of regeneration in Wellhouse.

Instil a sense of confidence and pride in the community as a
whole and in the individual, raising aspirations and efficacy.
e) To ensure that Wellhouse Housing Association has the capacity
to deliver our overall strategy.
Our stated strategic objectives can only be achieved if the
organisation
is
managed
effectively.
The
current
housing
environment is fluid and is anticipated as a period of change and
potential growth.
During such a period it is essential that we:

Maintain sound governance and financial health.

Retain, high quality, performing staff.

Ensure that policies and procedures and systems keep pace
with the changing needs and demands on the business.
5.
Environmental Assessment.
Introduction
The organisation was formed in 1990 and constituted in 1995 to
campaign for improved housing in the area.
In 12 years of operation we have produced 400 new and improved
homes; we have developed Wellhouse Tenants Direct and Wellhouse
Community Trust. We have been at the centre of the regeneration of
the community with the development of the hub, Inner Zone and Hub
Sports we continue to promote new services and facilities with our
partners.
Internal Pressures
The planning process recognised a number of internal pressure points:

Preparing for growth will place demands on the Management
Committee and Staff
Emphasis will be placed on developing a new structure,
discussions with all staff will be open and transparent.

Budgetary Control will be essential, ensuring value for money
and the efficient operation of the organisation through tight
control of overheads and control; of reactive and planned
maintenance budgets.

Rent Arrears continue to be a concern; this will continue to be
a key priority over the coming years.

As a community based organisation we strive to be highly
accountable to our community. Over the next two years there
will be a strong focus on tenant engagement and capacity
building.

The development of Wellhouse Community Trust has produced
a strong regeneration infrastructure within Wellhouse. We have
witnessed a steady improvement in participation and the
general sense of the community.
However the Trust relies in fixed term revenue funding and as
such if we fail to secure new funding we could potentially lose
all the progress made in the past two years.
The Association must work in partnership with the trust to
ensure a long term future and the development of regeneration
services and facilities in Wellhouse.
External Pressure Points
Our ability to achieve our long term objectives will be influenced by
policy and resource allocations decisions of other organisations.

A key example is the allocation of development funding now
the responsibility of Glasgow City Council – DRS. Due to the
fragmented nature of development decisions we have secured
approval from GHA for significant demolition, however GCC
have not approved funding for replacement housing.
It is essential for the long term development of our community
that we secure new funding this financial year.

Second Stage Transfer has been a drain on our resources
over the past year. We believe we have been negotiating with
an ‘unwilling seller’ recently we submitted a business case that
meets the valuation produced by GHA. It remains to be seen
how this will progress over the coming months. We will
continue to lobby politicians individually and collectively to
secure commitments made at the original transfer.
There have been and there continues to be fundamental changes in the
structures of local and city wide partners.

The demise of the Social Inclusion Partnership and the
creation of Community Planning Partnership.

The reorganisation of GCC DRS investment to reflect CPP
boundaries and the development of Local Housing Strategies.

The reorganisation of Health and Social Work services into
CHCDs to be co-located and co-terminus with CPPS.
The result of these changes is to centralise decision making and to make
access to funding more difficult.
Nationally:

The new regulatory regime based on risk and proportionality has
been produced.

There has been a raft of legislation on Housing Quality Standards,
Tenant Participation and Equal Opportunities.

A thinly disguised attack from Civil Service in respect of efficiency
and long term sustainability of Community Controlled Housing
Associations.
Key challenges during the period of the business plan are:

Addressing the recommendation of the Business Review.

Ensuring that the Association understands the needs and
aspirations of the community.

The Association works closely with all partners.

Become pro-actively involved in the CCP.
Our strategic objectives articulate:

Our need to build on strengths and achievements.

The opportunity to exploit opportunities that will deliver lasting
improvements for Wellhouse.

Address the risks and threats that are inherent in these strategies.
6.
Risk
As part of the business planning process, the Association has
reviewed its Risk Management Policy and Strategy a new format has
been developed and established October 2007.
Action can be taken to manage or litigate all of the risks that have
been identified and this is addressed at length in our Risk
Management Strategy (appendix 1) and the associated Risk Register
(appendix 2) and Activity Plans (appendix 3).
In Strategic terms the Association has a clear choice between
pursuing a safety first strategy of consolidation or pursuing
opportunities for growth. The Association strategy is based on the
latter option with risk assessment and management an integral aspect
of our strategy.
7.
Financial Projections
As part of the business planning process the Association has carefully
considered the financial implication of our proposed strategy.
We have developed five and thirty year financial projections that
confirm the long term viability and our ability to deliver services and
investment as stated in the business plan and associated documents.
The Association anticipates that over the next five years we will
generate surpluses, strengthening our reserves.
There are several points to note:

Management Costs are relatively high; these will improve as
additional rental income is generated as a result of the
development programme.

No substantive increase in staff resources will take place,
other than in a response to Second Stage Transfer.

The Association has recently validated 30 year planned
maintenance programme, it is essential that we monitor
possible increases in replacement costs as this will have
impact on cash flow.

The Association has made genuine savings over the past year;
the challenge will be to continue that trend against a forecast
of rising costs.
8.
Delivering the Plan
The Business Plan is a tool for planning and managing performance at
a strategic level. The plan is accompanied by an operational plan for
each of the strategic objectives (appendix 3).
The plans articulate:

The overall outcome the Association is seeking to achieve
over the next 3 years.

The main actions the Association will take.

The resources that will be expended on these actions.

The targets and the performance indicators against which the
Management Committee will assess progress (appendix 4).
Many of the activities rely on a response or agreement from a third
party and in such cases actions and timescales will be subject to
change.
The Business Plan will be subject to review by the Management
Committee on a quarterly basis. The lead officer responsible for
ensuring the progress of the plan is the Association’s Director.