Last week’s “efficiency” issue was very timely.
However, I think the feature on the private sector missed the central point on Easyjet’s efficiency (6 August, page 29). Easyjet saves money by removing many of the luxuries other airlines offer, such as a meal included in the ticket price. The customer knows he or she is going to get a no-frills flight at low cost.
To manage customer expectations in this way cannot fail to be highly efficient, as long as there are enough customers – and the airline has clearly assessed demand very well.
I am not saying that approach is right or wrong, but it certainly is in contrast to what is expected of housing associations if they aspire to meet the In Business for Neighbourhoods agenda or seek the equivalent of a two- or three-star rating from Audit Commission inspectors.
Registered social landlords must provide more than the basics if they are to meet these demands.
Mike Morris, group chief executive, William Sutton Housing Association
I’m delighted to see Housing Today giving efficiency the prominence it deserves. Your special issue demonstrated the appetite of housing associations to meet the efficiency targets set out in the spending review.
But as the Housing Corporation prepares to pilot its efficiency indicators and the Audit Commission consults on its new inspection methodology, we have to be clear about one thing: effectiveness must be regarded as just as important as efficiency. RSLs must be judged on more than their ability to cut costs.
As the NHF makes clear in a new briefing on the efficiency agenda, associations support the need to deliver value-for-money services.
But we also recognise that our first responsibility is to offer our customers opportunities to improve their quality of life.
These aims are not incompatible and we need to make sure the government understands that efficiency and effectiveness are inextricably linked.
Jim Coulter, chief executive, National Housing Federation
Source
Housing Today
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