Optima SV is the name of a Value for Money and Social Value assessment methodology and software, which has been developed to assist the housing association and the public sector make spending decisions for the future. The software will reflect "simultaneously" both VFM and SV principles and meet the new VFM regulatory standard, as part of the new economic regulation from 1 April 2012.
Optima SV is intended to deliver, on a ‘cost positive basis' (It should save you more than the cost of using it) and offers:
- A new approach to procurement planning (looking at the right things) and improving procurement (buying things better).
- The application of LEAN processes within a SROI framework to optimise Value for Money and the Social Value of organisation spending, selected for Optima SV review.
- The calculation of SROI of all activities included within the pilot project - including initial baseline assessments to enable post assessment comparison and demonstrate improvement. Thereby reflecting the requirements of the forthcoming legislation.
- Visibility and transparency in your VFM assessment that will benefit staff, boards,coulcillors tenants and the regulator's assessment and within it regulatory judgements.
This ensures social value principles as well as Value for Money, influence all decisions when organisations review their processes and procurement contracts, to secure reductions in costs.
Description of what the software does at each stage of the process is set out below.
Stage 1 - Optima Planner
Optima Planner converts the global financial data provided by your housing association or local authority, into a format that enables detailed analysis of spend. Specifically it highlights areas of potential inefficiency in procurement, or areas likely to be in need of detailed review. This information is then used to target continuous VFM improvement in both procurement and service review. Our report specifically identifies how advanced the organisation is in applying VFM principles to its procurement processes.
Stage 2 - Optima LEAN SV
The Optima LEAN SV analysis tracks down waste and offers more options to reduce cost, but not before the social value impact of any proposed changes are assessed. The SROI assessment is particularly important because perceived cost savings may have hidden social value not immediately obvious. Social Value LEAN' means an organisation is aware of all the potential implications of cutting costs before doing so.
The software also facilitates more effective and transparent process reviews involving stakeholders (including service users) when analysing internal processes and LEAN thinking to reveal waste.
As a consequence of the information gained during reviews of work processes for LEAN SV, it is possible to calculate the social impact of such spends and calculate its SROI (Social Return of Investment). Any decision by the organisation to implement efficiency adjustments we recommend becomes an informed process regarding the actual social impact of that efficiency.
LEAN thinking is a tried and tested practice and can save up to 20% of the costs of the process under evaluation, by finding and eradicating parts of the operational process that do not add value to the operation.
Stage 3 - Optima Procure
The final stage of the pilot process is the review of spend and procurement processes and ensure compliance with the Public Services (Social Value) Bill.
Optima Procure also facilitates and implements "strategic sourcing." Typically, this process identifies specific and tangible savings in areas usually overlooked by busy organisations.
Usefully, it can also identify the potential for joint procurement initiatives in ‘repeat spend' areas common to all organisations - for example professional services, telecommunications, office consumables and logistics.
We are confident that Optima SV will give organisations a radical new visibility in how VFM is obtained and assessed- this will be great for boards councillors and tenants, and make management easier too" says Yvonne Atkinson, Director of the BDA.
If you need direction, here it is!
For more information and or a demonstration contact: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
