Managing Organisational Change within Laing Homes
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Transcript Managing Organisational Change within Laing Homes
Laing Homes
Integration and
future strategy
David Livingstone
Disclaimer
This presentation is being made only to and is directed at (a) persons who have
professional experience in matters relating to investments falling within Article
19(1) of the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2001 (the "Order") or (b) any other persons to whom it may otherwise
lawfully be communicated, falling within Article 49(1)of the Order (all such
persons being referred to as "relevant persons").
Any person who is not a relevant person should not act or rely on this presentation
or any of its comments.
The financial information set out in this document does not constitute the Company's
statutory accounts. Statutory accounts for 2003, which received an auditors'
report that was unqualified and did not contain any statement concerning
accounting records or failure to obtain necessary information and explanations,
have been filed with the Registrar of Companies.
Integration into GWUK
November 2002
Acquired by GWUK
Paul Healey appointed DMD at MK
January – Dec 2003
Six regions contributing to overall business
January 2003
Laing introduced to procurement processes
Benchmarking introduced
March 2003
MK overhead reduced
June 2003
PQA introduced
EDG devolved into regions
December 2003
975 PD units delivered to profit
Integration into GWUK
January 2004
Six regions reduced to five:
North Thames
South East Thames
South West Thames
Thames Valley
Midlands
March 2004
Paul Healey retires
April 2004
David Livingstone becomes DMD –
joined George Wimpey in 1973
Confirmation of price points to remove high end exposure
July 2004
Laing HQ closure announced
September 2004
Full integration of bench marking and best
practice
Shared Values
Safety
Customer satisfaction
Referral cultivation
Performance delivery
Value from scale
procurement
sharing knowledge
common processes
Laing Homes
A premium product, driven by local management
Higher average selling price than George Wimpey
better locations with larger plots
higher specification but not radically different
greater emphasis on design
Like Audi and VW
Laing Homes
However
Had moved into high end premium market
Strategy has been to
significantly reduce exposure to products over
£750,000
plan new product over £500,000 carefully
Opportunities for the Future
Working out poor historical sites
Margin improvement through ‘sweating’ overheads and build
cost efficiency
Continued improvement through sharing of best practice
Laing learning from GW benchmarking and build cost
reduction programmes
GW learning from Laing land consultation and PR
Improving land bank
opportunities to share large sites
better cash management - increased opportunities
Capacity to grow business across the country
Existing businesses focus on margin improvement
Reduction in build costs
benchmarking
value engineering
Improving land purchase terms
Volume growth within existing businesses
New businesses - growth potential
First steps on geographical growth underway
model defined
target markets identified
Liaison with existing George Wimpey businesses can assist
growth and use of assets
Introduce three new businesses
Eastern - Essex
Western - Bristol
Scotland - Edinburgh
Limited overheads
Laing Homes Current Businesses
Laing Homes potential - first steps
Scale of volume opportunity
Long term potential is for a business to compete in
size with GW, however
Speed of growth within our own control
Dependent on
general market conditions
land market
Not pushing for volume growth at any cost
Conclusions
Laing Homes is now well positioned
restructuring successfully complete
moving away from high priced markets
further programme of cost reductions in hand
improving landbank to support growth of existing
businesses
sensible strategy of volume growth as market
conditions allow
Laing Homes SW Thames
Gerry McCormack
Managing Director
Introduction
Structure
Area of operation
Current and future outlets
Business performance
Cost excesses
Laing Homes within George Wimpey UK
PQA
Staff
Customers
Structure
Gerry McCormack
Jim Dennis
Paul Hogarth
Technical
Sales & Marketing
Bruce Heffer
Production &
construction
Gordon Patterson
Steve Andrews
Steve Collins
Finance
Commercial
Land
Total monthly paid staff
67
Weekly paid staff
14
Area Map
Current Outlets
Current outlets
Avg Selling
Price £’000’s
Barnes – Creek Bridge Road
600
Ewell
356
Guildford – Creek Bridge Road
950
Guildford – Queen Elizabeth Park Ph6
408
Ph8
335
Reigate
393
Future Outlets
Future outlets
Ewell
Guildford – Queen Elizabeth Park Ph6
Ph8
Avg Selling
Price £’000’s
356
408
Hindhead
335
303
Kingsworthy
Reigate
416
393
Winchester
298
Business Performance
T/over
PBIT
Units
Outlets
PBIT%
2002
45
7.0
157
6
10.5%
2003
47
3.6
142
4
7.6%
2004
76
11.0
213
6
14.4%
Cost Excesses
Build/ Sales
Overhead
2002
£4.6m
£5.0m
2003
£0.9m
£4.3m
2004
£0.2m
£4.3m
Laing Homes within GWUK
Culture
Commitment to growth
Specialist meetings
Benchmarking and cost control
Improved margins
PQA
Production Quality Awards (PQA)
Tours throughout the UK
PQA panel
50 sites visited
What was learned?
Staff (South West Thames)
Monthly and weekly paid staff
Building in Service Excellence (Core Values)
Business Change Team (B.C.T.)
Investors in People
Staff Communication
Induction programme
Newsletters
Welcome days
Staff conference
Employees satisfaction survey
Customers
Customer satisfaction monitoring
Growing Wiser
Quality and service
Clean and ready
The Future
Outlet growth
2007/8
10-15 outlets
Turnover growth
2008
£120m
PBIT growth
90%
People growth
10%
Overhead efficiency
A Clear Strategy
of
Margin Improvement and
Growth
Guildford
Queen Elizabeth Park
Guildford – Queen Elizabeth Park
History
Former use
Acquired in March 2001- £46m
Planning Trail
Consultation process/ community planning week
Secure planning
Continued liaison with public
Sales launch April 2002
Output per year - 50 units
Laing Homes – consortium leader
The Community
Total site residential 525
35% Affordable Housing
• Key Worker/ Shared Ownership and Housing for rent
Commercial – 100,000 sqft
Office accommodation
Current facilities
• Nursing Homes
• Health and Fitness (Esporta)
• Community Hall
• Doctors Surgery
• Café/ restaurant and food store (Budgens)
The Community
Section 106 benefits
Environmental/ Infrastructure improvements to local area £800,000
Park and Ride - £1.6m
Bus route - £700,000
Travel vouchers - £105,000
Green Travel Plan
Recycling materials
Demolition materials retained on site
17 acres of woodland retained and improved
The Product
Types
Price Point
5 Bedroom
£740,000
4 Bedroom
£600,000
3 & 4 Bedroom
£450,000
3 Bedroom
£350,000
3 Bedroom
£295,000
Awards
Cost Trail
£ per ft
2002
81
2003
70
2004
62
The Site Team
4 teams
Team Leaders
Dave Livingstone
Gerry McCormack
Paul Hogarth
Bruce Heffer
Laing Homes SW Thames
Gerry McCormack
Managing Director