Transcript Managing Organisational Change within Laing Homes

Laing Homes
Integration and
future strategy
David Livingstone
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
Laing Homes South West Thames
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
Area Map
Ewell, Reigate, SWISH
A Clear Strategy
of
Margin Improvement and
Growth
Guildford
Queen Elizabeth Park
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
But ….
Your Health & Safety
Comes First
Induction Process