A new way to take stock – can you afford not to?
We are all aware that we operate within a rapidly changing environment and that is unlikely to abate. To compete in the future environment there needs to be improvement in decision making, relating to both the decision and the speed at which decisions can be reached.
For a social housing landlord, the housing portfolio generates and consumes a substantial amount of cash. Refining the planning and management of this spend demands more than a cost & revenue budget and more than one-off stock option appraisals.
There are many long-standing organisations in this sector offering stock appraisal and investment option generation services, and indeed there is some perceived comfort in using these services, after all ‘no one ever got sacked for always buying IBM’, but does relying on third parties to repeatedly value and appraise your stock help you demonstrate proper custodianship?
It is unlikely that an external party knows (or could learn quickly) more about your stock than your own people, and they would certainly know less than you if you could utilise a centralised and consistent decision support tool. Indeed, outsourcing such work is a substantial barrier to organisational learning and continuous improvement, which is critical to remain successful and be able to sensibly respond to the demands of such a volatile environment. In investment terms we are able to make better informed decisions when we all
understand what drives costs (short, medium & long term)
know when to spend
understand where spend is needed
know how spend impacts stock
know who is impacting stock value
know why cash or resources are being spent
Using the right solution will help you understand the value drivers for your assets and allow you to model a wide range of options for ALL investment considerations. This level of organisational learning cannot be achieved when the learning takes place outside your organisation, even if using the same third party each time and particularly where (as is quite common) we move from one third party to another to provide these services.
Having a commercially proven solution and centralised auditable methodologies in a sound data model not only eliminates expensive third-party dependency but also drives organisational learning and development, and sounder investments.