Sovereign Housing Assocation

360° procurement review

Sovereign Housing Group is a union of four housing associations which owns and maintains in excess of 37,000 homes and supported living units.   Based in Newbury, Berkshire, Sovereign’s territory triangulates Oxfordshire, Hampshire and Devon. Sovereign engaged ADR to review its procurement effectiveness and to help transform its performance to optimise outcomes and value delivery.

The coming together of four Social Housing Associations to form Sovereign provided an opportunity to achieve scalable benefits and synergy, but at the same time posed the threat of disrupting the working methods, operating performance and identity of the individual associations.  Sovereign selected ADR to undertake a 360° review of its procurement operations and business interfaces and from this informed base, to make recommendations to optimise group leverage and to design an effective future-proof operating model and supporting processes.

Using our proprietary diagnostic tool to assess procurement effectiveness, ADR evaluated Sovereign against the Six Key Enablers* of best practice procurement.  The review incorporated structured interviews with senior management, key business partners, procurement staff and selected suppliers as well as data analysis and external category benchmarking. 

This provided an insight to the cause and the effect of the current state, an effectiveness baseline from which to target and measure improvement and an Opportunity Analysis to locate and prioritise cost improvement. 

ADR provided centralised and decentralised organisational design options for the board to consider and made firm recommendations as to the preferred option and reporting line.  ADR’s recommendations were supported by a SWOT analysis, a costed business case and a draft implementation plan which identified process needs and other enablers to allow change to be embedded.  ADR engaged with key budget holders and board members for open discussion and challenge and developed a RACI matrix to clarify concerns over responsibility, authority and accountability within the proposed model.

Following board approval ADR were engaged to support the implementation plan and to design business critical processes including cost management and sourcing.  ADR developed job descriptions, target skill profiles and supported recruitment and selection using our online competency assessment diagnostic tool.

Key to the implementation was to provide clarity and motivation and to ensure the right environment for the new ways of working to be applied.  The Sovereign board and senior management team were pivotal to this and ADR supported them and facilitated this by providing training to the procurement team, commercial awareness training to stakeholders and by coaching category teams to apply the new processes.  ADR developed and managed the savings tracking and reporting mechanism prior to handover to Sovereign and designed the content and structure of an e-learning module to reinforce and highlight business partner obligations on process compliance and governance within Sovereign’s Finance Policy.

Sovereign have embedded and enhanced their operating model and continue to deliver annualised cost and value benefits. 

*Strategy and vision; Organisation and structure; Processes; People and skills; Cost and value management; Data and systems.  

Client
Sovereign Housing Association
Service Area
Advisory
Industry
Public Sector
Services
360° review of its procurement operations and business interfaces. Make recommendations to optimise group leverage and to design an effective future-proof operating model and supporting processes. Evaluated against the Six Key Enablers* of best practice procurement.
Objectives
Review procurement effectiveness and help transform performance to optimise outcomes and value delivery.
Outcome
Sovereign have embedded and enhanced their operating model and continue to deliver annualised cost and value benefits.