Presentation

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MAXIMISING BUSINESS POTENTIAL

By Rachel McLean

The Problem

• The potential to generate higher revenue is not being maximised with the resources currently available.

• This has an impact on the expectations of all those not only involved in its day to day running, but also the share- holders and stakeholders of the business.

Our stakeholders - those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends – this includes customers (service users), share-holders and suppliers as well as our staff (Laurie J. Mullins, 2010).

Our stakeholders are demonstrated by the model below

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Underuse of beds

|Jan |Feb |Mar |April |May |June |July |Aug |Sep |Oct |Nov |Dec | |Available |68 |68 |68 |68 |68 |68 |68 |68 |68 |68 |68 |68 | |Target 95% |65 |65 |65 |65 |65 |65 |65 |65 |65 |65 |65 |65 | |Actual |61 |64 |62 |62 |62 |62 |62 |61 |60 |60 |60 |61 | |Actual % |89.71 |94.12 |91.18 |91.18 |91.18 |91.18 |91.18 |89.71 |88.24 |88.24 |88.24 |89.71 | |

• Average monthly number of occupied beds = 61.42 • Average number of empty beds (against target) = 3.58 week • Average number of empty beds (against available) = 6.58 week

Based on weekly fees (currently) at £850, lost revenue for 2013 (based on average number of empty beds against actual no. of beds) = £290,836.00.

The lost revenue for 2013 based on average number of empty beds (against budgeted no. of beds (65)) = £158,236.00.

Underuse of day care services

During the week of 6th – 12th January 2014, 3 service users attended for 7 days in total between them.

This generated the business £385.

According to information gathered by myself during the month of December and January, the average number of days, that other care providers within our region, make Day Care available, is Monday through to Friday, therefore I have based lost revenue potential on a five day week :-

At £55.00 per day – potential full capacity (15 days) for 3 people would generate £825 per week, £42900.00 per year.

Solutions

• “Do nothing”

• Expansion of Day Care services within the Elderly Frail & Memory Lane units, whilst improving our current marketing strategies.

o Flexible hours over 7 days (already in place)

o Social Services users welcome (allowance currently £40.80 with a top up fee payable)

o Marketing – community based with leaflets posted around local village halls, community centres and churches as well as regular house to house leafleting. Visits by Care Home staff to village luncheon clubs and other local community meetings to promote the day care services available (gifts of home- made biscuits taken as a good will gesture). Regular leafleting of the local hospitals, and posters placed in local shops and post offices.

o Advertising in local newspapers on a quarterly basis

o Look at future radio advertising ( Studies show that radio ads create emotional reactions in listeners)

o Develop and build relationships with local taxi firms to offer discounted rates for clients unable to attend by friend/family transport

o Develop and build relationships with the local Ring & Ride bus services in order to promote this to prospective clientele

Potential revenue and ROI After discussions with Senior Management, we will aim for 6 service users attending 5 days each per week, by the end of the financial year.

For the financial period July 2014 through to December 2015 (133 available days): 6 x 55 x 133 = £43890 LESS set up cost £ 6999 (appendix 11) = £36891

The estimated R.O.I = 5.27 % for a 6 month period

The potential additional revenue for 2015/16 = 6 x 55 x 261 = £86130

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• Extending area classed as Garden House (Memory Lane) to include beds 40a – 45

• The logic behind this solution goes back to the underuse of beds.

• The hall struggles to fills bed within our elderly frail, yet we often have a waiting list for Memory Lane – it seems logical to expand the Memory Lane community

The cost of this proposal:-

• Security key pad already in place at the Memory Lane entry to be relocated maximum £25.00 labour (quote by Property Solutions) • Cost of re-decoration – materials only – estimated at £200 (as we would use labour of existing Barchester maintenance) • Staffing – there would be no additional staff costs. This is because the number of rooms reducing from elderly frail, would enable the movement of x 1 member of care staff to transfer to Memory Lane • Overheads – cleaning / hospitality / heating & lighting – there would no additional costs as these rooms are already being serviced • Memory boxes 6 x 15.00 = £90 • Plaque £230

Total cost = £545.00

Some of the rooms (within 40a-45) are currently occupied, therefore ethics have to be considered. There would need to be a consultation period and the following questions would need to be asked (this process has been already been used and successful, as discussed with SROD within our Northern Region):-

• Ethically is it the right business decision to make? • Do the needs of the business out way the personal needs of the residents concerned? • Is our case strong enough for our stakeholders to consider? • Do those residents have the capacity to make informed decisions? If not we have to consider “best interest”

Based on evidence supplied by Senior Management within our Northern Region, the following took place:-

• A letter was sent to residents and families to attend a meeting • At that meeting the reasons behind the need for the changes were discussed • Any concerns raised were dealt with there and then (where possible), and any issues not able to deal with ,were raised on an individual basis

Once any difficulties were resolved, the residents concerned were invited to participate in their move by:-

• Being offered a like for like room • Larger rooms (where available) offered as a further incentive • Ensuring the safe and practical movement of personal possessions • Re-decoration being offered (as an incentive) • Identical lay out of personal possessions by photographing current rooms

The R.O.I has been calculated as follows:

6 rooms @ £850 week x 26weeks (Sept – Mar) = £132600 less set up £545= 242%

There is an opportunity, for the following financial year to increase our target occupancy from 62 occupied beds to 66, increasing the potential revenue by £176800.

Non- financial ROI

• Increased profile of our Memory Lane facility within the region • Contributing to the demand for beds within our locality (appendix 9) • Staff satisfaction – recognition of contributing to larger scale services for those living with dementia • Stakeholder satisfaction • Service user experience

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• Change of use – South Wing from residential to Dementia with / without challenging behaviour

• Total set up costs £55378! -Additional staff and training

ROI is calculated as follows

14 rooms - maximum £50 week increase = £18200 (6 months) minus £55378

= R.O.I –0.67%

Following discussions with Senior Management, this proposal (whilst initially the group felt would benefit the homes profile), has a negative impact on revenue in the current financial year. It is therefore considered not to be a logical business solution.

• Pilot a “Step Down” / Rapid Response Scheme– in partnership with Norwich CCG, to secure income for at least 2 rooms for the duration of the scheme / contract

This solution would require the backing of our Business Team, as they negotiate any available tenders with the newly formed CCG’s. I understand (following a discussion with our Business Manager) that our Business team are currently in the process of meeting with the Norfolk CCG for procurement relating to 2015.

This solution would therefore be a future consideration, and would require a project team to set out formally.

A similar scheme, and one that I wish to emulate, has been successfully implemented by Hereford Care Homes and running since July 2013 (based on evidence supplied by them for the purpose of my research).

Questions & Answe