By Steve Ellard, Director of Assets, Yorkshire Housing.

As you start to pull together all the information required to build your strategy, it makes sense to have an idea as to where that information is going to go and how it’s going to be used.

There’s some natural variation between housing association asset strategies: some are heavily customer-driven with the content and formatting agreed by a customer panel; others are heavily weighted on the financial aspects of asset management. As ever, I feel a balance is the best fit. Below is a suite of the key sections I think every strategic plan could benefit from.

An introduction

This opening section is key to setting the tone for the rest of the document. The author of the introduction sets that tone. Often, it’s the chief executive, sometimes it’s the chair of the board, and in some cases there’s an intro from the chair of the residents panel. The latter might seem like an unusual choice but one of the clearest and well-pitched strategies I’ve seen was introduced in this way (see Optivo’s asset management strategy and note the reference in the URL to ‘v16’). A good strategy takes time.

Operating environment

Asset strategies are time limited; sometimes three years but often five. It’s helpful to illustrate the backdrop against which the strategy has been written. For example, the operating environment of a strategy written in 2021 would likely make reference to the Covid-19 pandemic, building safety, and the decarbonisation agenda, to name but a few.

Forecasts

Financial forecasting is a core requirement of any effective asset team. Typically, this is driven by stock condition data from your asset management system and often is reported over the life of the business plan – usually 30 years. It relies heavily on good quality stock condition data collected or refreshed as recently as possible.

This strategy is an opportunity to take those forecasts and drill down to the detail for the life of the strategy itself – three or five years. Personally, I see no value in referencing 30-year investment costs in a three or five-year strategy. Of course, this can be challenging. After all,
forecasting over 30 years is likely to be more accurate than forecasting over five. I find it accessible to present this data by component and in a visually attractive way. This is not a section for war and peace.

Themes and objectives

This is the fundamental section of the strategy. What are the key objectives you intend to achieve over the life of the plan? I’ve historically tended to take a fairly popular approach, which is to separate up into key themes with objectives falling under each.

I find it really important to link your themes and objectives to your overarching business objectives. You can then proceed with some confidence that the asset management approach is largely complimenting the goals of the overall business.

The themes are rather subjective to your own organisation and might link to company values, communities, people, or value for money. I’d be on a hiding to nothing recommending themes, so I shan’t bother.

Objectives, however, I think I’m fairly safe to suggest a few. Building safety, compliance, a future decent homes standard and decarbonisation are all major priorities affecting asset management professionals at present.

It’s easy, however, to forget what, I believe, is the main purpose of any asset management team, and that is to ensure the long-term sustainability of the portfolio. Now, that’s a big statement and don’t be fooled into thinking sustainability refers purely to energy efficiency
and decarb. This is sustainability in its most literal sense.

To excel in this area requires a joined-up approach to active asset management, which involves really good asset performance data, both financial and social, and a nod to the overarching business goals.

You need to ask yourself whether the organisation is expecting to grow its portfolio over the life of the strategy (clue, I bet it is), where the business wishes to grow on a geographical basis, and where you may need to rationalise or dispose of stock.

You’ll need to consider
which stock is underperforming and why, and, if possible, acquire viable stock that supports the business goals and supplements any development programme.

In conclusion

If you’ve pitched your strategy correctly it’ll explain its purpose within the introduction; it’ll illustrate that you know your stock and what you’re planning to do with it over the medium term through a series of strategy specific forecasts; and, perhaps most importantly, it’ll address all the key challenges both nationally and specific to your business, if proper consideration has been given to the objectives.

Get to this point and you’ll be in the position I was in last year, proud as punch with v1 ready to go. You’ll be in the same position as Optivo’s strategy author who presumably also started at v1. The next and final part of the journey encounters leadership. In my experience, it’s fine
leadership that took me from v1 to v7 and undoubtedly what took Optivo from v1 to v16.

Expect scrutiny and, hopefully, constructive criticism from leadership before your strategy goes to print. And keep your chin up – it’ll be a better document for it.