Our strategic plan 2014 -2019

1. Our strategic plan 2014 -2019 Presented by Nick Barton CEO Housing, Finance & Customer Services Policy and Scrutiny Committee 16th June 2014

2. Strategic need • Our journey – We’ve delivered exceptional results in some areas but key areas to improve are evident and pressing • Reality & opportunity – we have reached a “steady state”, we have to grow to survive, we have to improve to be the best • Financial imperative – Severe financial pressures, a £2.7 m p.a funding gap in 2019 Strategic Plan 2014 -19

3. Delivering to stakeholders Core business – a new approach to embed performance in a proven approach • Improving customer service is symbiotic to survival • Embedding a “continuous improvement” culture drives up quality and customer service in a systemic way • CI drives out waste and therefore cost • Focus on lessee satisfaction through improved processes, training and future transparency Strategic Plan 2014 -19

4. Delivering for our shareholders Commercial strategy By 2019 to deliver from 3rd party sources profitable revenue streams of up to 20% of company turnover from a variety of activities: • Expand Homeownership activities inc. FH/LH portfolio • CWD management mandates (new schemes within & beyond borough) • CWR – Continue our investment to support strong organic growth • Regeneration: provide 3rd party specialist consultancy services • PDHU - increase users by 25% Strategic Plan 2014 -19

5. Asset strategy Long term asset management and planning – Leaseholder benefits: Major investment (+£230m) in existing stock but must ameliorate lessee impacts 7yr visibility, 24/7 tailored I.T accessibility and “smoothing” Re-structuring existing portfolio: Interchange non-core freeholds for 1 & 2 appts. Better Homes – major works : Restructured team to focus on contract administration / quality / resident liaison / 2-7 yr horizon Regeneration opportunity: Develop relationships to significantly exceed >320 unit plan with WCC/WCH Procurement: New trust based way of working with WCC – single entity / ”open borders” Strategic Plan 2014 -19

6. Technology strategy • KEY to our future strategy • Overhaul and rebuild our core I.T systems (but future –proof for this strategy) • Transfer customer and resident interaction to 24/7 applications accessible on any device (90% transaction/40% B2C) • Enable full employee remote access from any device • By 2015 move to “cloud” computing Strategic Plan 2014 -19

7. HSSE & Assurance To embed a robust and resilient operating model with high levels of in-built assurance we will secure: • ISO 9001 (quality management system) • ISO 14001 (environmental management system) • OHSAS 18001 (occupational H & Safety management system) • PAS 55 (asset management system) Phased in across the business over next three years to replace custom and practice with “within the line” best practice.

8. Corporate communications 2014 re-launch of existing web presence to address missed opportunities with: • B2C (residents) • B2B (Business and future customers) • B2S (stakeholder communities not addressed by the above) We will be promoting interaction, functionality and crucially uplifting B2B impact.

9. People & values • Review and develop an explicit incentive model that clearly links annual personal objectives to the strategic intents • Ceasing activities that don’t have that clear demonstrable link • By Q2, 2015 to move to a performance ranking system that, becomes a powerful tool to identify where the real talent lies

10. Corporate Strategy Two distinct proposals to underpin our strategic intents: • Restructure our corporate entity to ring-fence DB pension costs to enable a competitive future cost base to be established • Re-life our Board structure to support the new strategy and maximize your executives prospects of success

11. Alignment with “Better City, Better Lives” • A healthier, safer city… • CWH ASB expert in each of four areas • In 2013/14 7 ASBO’s, 1 Premises Closure, 9 Possession Orders, 7 ASB injunctions and 1 Tenancy demotion – National Average 1 ASB eviction per council • “Warm Homes” initiative in partnership with PCT £85,000 over past two years • Sports – 13 WCC youth supported on ground by CWH 650 attendance p.w / £500,000 for sports facilities • Homework Clubs – 300 children p.a /up to £70,000 external funding • Debt Advice Service –record low levels of rent arrears (1.3%) and lowest eviction rate in London • 35 moves enabled to meet under-occupancy rules (no evictions expected) • £1m p.a on improvements to maintain independent living

12. Alignment with “Better City, Better Lives” • An enterprising city… • CWH Employment Team major partner of Westminster Works initiative – since 2009 with £280,000 ext.funding 130 residents into work. Current target 80 residents by Summer 2014. • Further support & advice provided to 350 • CWH took on a number of residents as apprentices – first ones now becoming middle managers • CWH – 2010 Social Fund Employer of the Year • A more connected city… • 2012 new approach to resident engagement –residents AMC’s with Resident Board member attendance • All maintenance contracts subject to “open meetings” with residents to review and challenge • “CityWest Factor” to break down age related barriers on estates

13. To summarise.. We set out our plan for 2014-19 • Our aim, to be the leading provider of housing services in the UK by 2019 • Build on past performance with new structured approach , focussed on quality - this will drive out cost • Transform our service proposition to residents with smart IT • Expand our 3rd party commercial revenue streams • Design in new levels of business assurance • Design out weaknesses in major works delivery and consequent lessee impacts • Deliver financial returns for Westminster residents • 20% increase in income / 20% reduction in cost – our “20:20 Vision” • Align with “Better City Better Lives” Strategic Plan 2014 -19

14. Questions for the panel: • Have we missed anything? • Are there areas that we should expand upon in the future? • Does the panel wish us to focus upon and emphasise specific areas?