Purpose 1

Provide housing and related services that meet stakeholder needs

• Criterion 1: Deliver consistently outstanding service to Defence, ADF members and lessors.
• Criterion 2: Be recognised as the provider of choice for ADF member housing.
• Criterion 3: Improve efficiency and effectiveness of business practices and service delivery.

Overview

We seek to be the provider of choice for Defence housing and continually adapt our products and services to maximise satisfaction of our shareholders, clients and customers.

Detailed commentary

Our performance against stated measures and objectives in our Corporate Plan 2015–16 was as follows:

Criterion

Deliver consistently outstanding service to Defence, ADF members and lessors.

Result

Achieved

Our ongoing commitment to providing high-quality customer service was again demonstrated this financial year. We exceeded all satisfaction targets set out in our Corporate Plan. These results were also consistent with 2014–15.

Our commitment to customer service is set out in our service charter. Our charter is available on our website and hard copies are available in our regional offices. More information about how we manage compliments and complaints is provided later in this Purpose 1.

Service to Defence

The ADF is our primary customer. Through service agreements, we are required to provide adequate and suitable housing to members of the ADF and meet the requirements of the department, as determined by the Minister for Defence.

We have well-established capabilities, structures and positive, productive relationships that are essential to meeting Defence's housing needs and thereby support ADF capability. In Defence's written submission to the Foreign Affairs, Defence and Trade References Committee inquiry into DHA's operations, they said:

Service to ADF members

ADF members and families are subject to frequent relocations and lengthy separations. This makes certainty of tenure and the provision of a safe, secure and well-maintained home essential to their wellbeing. Housing is subsequently considered to be an important part of the ADF employment offer.

We survey ADF members and families to:

• satisfy contractual KPI reporting requirements to Defence on ADF member satisfaction
• identify how our service delivery can be improved
• inform future provisioning to suit preferences where possible.

Tenant satisfaction with DHA-managed properties

We surveyed all ADF families who had lived in their DHA-managed property for more than 12 months to measure satisfaction. In 2015–16, 86.2 per cent of 2,482 participants were satisfied with their DHA-managed property. Figure 5 shows this result has been fairly consistent over the past five years.

Our newly constructed apartment complex, The Landing, in Brisbane, QLD.

Figure 5: Tenant satisfaction with DHA-managed housing, 2011–12 to 2015–16

Tenant satisfaction with customer service

Our quarterly housing survey measures ADF family satisfaction with their overall DHA customer service experience when relocating. Figure 6 shows that in 2015–16, results remained above our target of 80.0 per cent, with 92.7 per cent of 2,978 participants indicating that they were satisfied with their customer service experience.

Figure 6: Tenant satisfaction with customer service, 2011–12 to 2015–16

Tenant satisfaction with maintenance

In managing a housing portfolio the size of ours, there are often maintenance issues to be addressed. Our maintenance contact centre receives and takes action nationally on tenant requests for maintenance during business hours. This includes property-related damage, defects and deterioration. In 2015–16, our contact centre recorded 112,571 incoming maintenance-related calls and 224,786 outgoing calls. It is our policy to respond to requests within 28 days.

After hours, we provide emergency maintenance assistance. This includes serious flooding, complete loss of power, gas leaks and sewer blockage where the immediate health, safety or security of tenants or the property may be threatened. In general, a contracted maintenance provider will respond to emergency requests within four hours.

To deliver these services, we have a panel of contracted maintenance providers consisting of over 850 businesses across Australia. Wherever possible, we use local maintenance service providers in each region to provide tenants and lessors with a prompt, high-quality service. Using sophisticated management software, including mobile technology solutions, our contractors completed over 86,351 individual maintenance items in 2015–16. Of these, 84.0 per cent were completed in 14 days or less.

Figure 7 shows that in 2015–16, tenant satisfaction with our maintenance service continued to be strong, with 95.8 per cent of 7,943 participants expressing satisfaction with the overall service.

Figure 7: Tenant satisfaction with maintenance, 2011–12 to 2015–16

Service to lessors

Lessors are investors who lease their property to DHA for a fixed term. Lease terms can vary from three years up to twelve years, with the ability for us to extend leases built into some agreements. We provide property management services, conduct annual rent reviews and coordinate repairs and maintenance on all leased properties for a single fee. Where the lease is for six years or more we also provide end-of-lease restoration such as repainting.

As our relationship with lessors is generally long-term, we want to ensure they are satisfied with their experience. We undertake surveys to measure satisfaction at various stages of their lease term, including post-purchase (where applicable), during the lease and at lease end. The largest of these is the annual lessor survey that measures satisfaction with customer service and aspects of property management.

In 2015–16, results remained above our target of 90.0 per cent, with 94.0 per cent of 1,389 respondents indicating that they were satisfied with their customer service experience. Figure 8 shows the consistency of these results over the past five years. In addition, 79.4 per cent of respondents indicated that they would recommend investing with us to others within the next 12 months and, for the second year in a row, 63.4 per cent of respondents reported that they had already recommended our SLB program in the last 12 months.

Figure 8: Lessor satisfaction with customer service, 2011–12 to 2015–16

How we manage compliments and complaints

In addition to seeking feedback via surveys, we invite general feedback, compliments and complaints from our customers, clients and the public. We use this information to inform business change and develop future initiatives to increase satisfaction.

In 2015–16, we received 1,015 formal complaints nationally from ADF members, their families and lessors. This was slightly lower than 2014–15 (1,023 complaints received), but higher than 2013–14 (947 complaints received). The increase in the number of complaints recorded over the last two financial years can be attributed to greater reporting and transparency.

We manage all complaints in accordance with the resolution process set out in our service charter. We have developed our complaints management policy and guidelines in accordance with international standards (ISO 9001). An overarching policy and guideline has been implemented in our quality management system (QMS) to correlate with our service charter. It also provides greater support and guidance to staff, including definitions. This is critical as most complaints are resolved at a local level, with assistance from our national team as needed.

Customer service certification and achievements

We are proud to have been accredited by the CSIA since 2005–06. The CSIA offers evaluation and certification by independent assessors against 25 international customer service standards (ICSS). This includes 'service perspective attributes' where we involve customers in the design of products and/or services, through to 'relationship attributes' where we formally establish strategies for developing relationships with customers and business alliances.

CSIA certification is a recognised benchmark in both the public and private sectors. In 2015 we improved our certification result from 7.7 to 8.1. This is an outstanding rating as only a few organisations achieve a score greater than 8.0.

In addition, we were named as a finalist in 10 categories of the 2015 CSIA Australian Service Excellence Awards. We were successful in winning two national awards, resulting in us being automatically entered into the international awards for those categories. We were also successful in receiving a national high commendation and winning five ACT division awards.

Reaching the finals and winning such awards illustrates our commitment to customer service at all levels and the dedication of our staff. We are justifiably proud of these results.

Criterion

Be recognised as the provider of choice for ADF member housing.

Result

Achieved

Housing allocation and tenancy management

We aim to maximise the number of properties available to ADF members and families at all times, but particularly during the peak posting cycle. One of the ways in which we measure success is the rate at which we pre-allocate a property, whereby members select a DHA-managed property in the location they are being posted to before leaving their current location. In 2015–16, we achieved a pre-allocation rate of 96.0 per cent against the Corporate Plan target of 75.0 per cent.

During the off-peak periods, we aim to minimise vacancies wherever possible. In 2015–16, our vacancy rate target was below 7.5 per cent (over the 12 month average). We achieved 6.8 per cent for MWD properties and 5.7 per cent for MCA properties.

Rent allowance (RA)

We are responsible for administering the payment of RA to those accommodated in the private rental market. ADF members are responsible for finding the accommodation, but must engage us to seek approval. Reasons include non-availability of DHA-managed housing at the appropriate classification, or if the home and grounds are unsuitable for pets.

As at 30 June 2016, we managed approximately 14,000 RA tenancies for MWD, MWOD and MWD(U). In accordance with the Services Agreement with Defence, the target for MWD RA is 20.0 per cent. In 2015–16, we set an internal target of 3,056 tenancies or 16.2 per cent. This was exceeded by 876 tenancies or 4.3 per cent due to a combination of provisioning requirements exceeding the revised approved schedule and an increase in de facto recognition. We do not have a contractual target for MWOD and MWD(U) RA under the MCA Agreement.

Living-in Accommodation (LIA)

Through an agreement with Defence, we also manage the booking and allocation of on-base LIA for about 11,000 ADF members in transit, temporary, permanent and course accommodation at ADF bases Australia-wide. This equates to approximately 32,500 rooms and 45,000 beds.

In total, we managed 208,646 allocations in the reporting period. Of these, 67.4 per cent of requests were generated via our online system; an increase of 6.0 per cent from last financial year. Significantly, the short-term bookings self-service rate was 82.0 per cent this financial year across a total of 103,547 bookings. This is a huge improvement on the transit and temporary self-service rates from last year (65.4 per cent).

Criterion

Improve efficiency and effectiveness of business practices and service delivery.

Result

Achieved

Service to Defence

We provide Defence with a value-for-money service and continue to work with them on strategies and reporting to improve service delivery and efficiency where possible. Examples of our work during the reporting period include:

• LIA occupancy and usage
  
  As detailed earlier in this Purpose, we focused on LIA system improvements to group bookings in support of training, conferences and exercises. This not only contributed to increased usage of our online systems, but enabled us to capture key data such as better tracking of national occupancy and usage levels, which we passed on to Defence to help inform their decision-making.
  
  
• Housing data
  
  We commenced a project to review all housing data to ensure the way we calculate, record and report housing-related information is consistent throughout the organisation. A key part of this project has been revising a governance framework for capital planning and procurement activities. Implementation will include a review of modelling requirements, including scoping the information technology platform to assess capability and whether enhancement or upgrade is required. This will have flow-on effects to the reporting we provide Defence.
  
  
• Segmentation research project
  
  We commenced work on an audience segmentation research project to better understand our customer engagement. Primary aims of the project include identifying customer preferences for communication and improving our performance against KPIs. The outcomes from the report will form the basis for strategic discussions across the business and with Defence. As at 30 June 2016, we were well progressed in the first phase of the project, having completed interviews and focus groups with staff and customer groups.
  
  
• Forensic Review implementation
  
  The Forensic Review identified a number of opportunities for us to review and improve business practices and service delivery. Representatives from Defence (as well as KordaMentha [KM], Finance and various consultants) played a key role in implementing the recommendations. In total, 18 recommendations were fully implemented by 30 June 2016. More information is provided in Purpose 3 and the external scrutiny subsection in Section 3 of this report.
  
  
  Service to ADF members
  
  Enhancing services project
  
  In the reporting period, we continued to improve upon the service model we introduced in 2014–15 to deliver nationally consistent and extended services to ADF members and families. Examples of implemented initiatives include:
  
  
• Quality certification
  
  Achieving International Organization for Standardization (ISO) certification (ISO 9001) was a priority in 2015–16, as it verified our consistency, the quality of our output and could potentially reduce costs. We underwent and achieved ISO 9001:2008 certification in July 2015. The external audit group praised us, particularly our regional offices, in demonstrating great commitment to the provision of quality and repeatable processes.
  
  
• Improved telephony
  
  In order to decrease waiting times, we made improvements to our telephony to ensure calls were answered by the group best-placed to respond, minimising call transfers throughout the organisation. We also introduced a call-back system for our contact centres whereby a customer can elect to be called back rather than wait on hold. Feedback regarding this service has been overwhelmingly positive
  
  
• Online Services
  
  We continued to evolve our web-based self-service system, Online Services, based on feedback provided directly and indirectly from stakeholders. Enhancements of note for ADF families in 2015–16, include:
  • member ability to preview their PIN
  • capability to update dependant information
  • enhanced visibility of property availability in line with member entitlement.
  
  Utility Connect
  
  As an example of customer service over and above that required by Defence, we have worked with industry to provide a free, optional utility connect service to ADF members and families. It gives access to discounted gas, power and internet providers and streamlined connection prior to ADF members arriving in their new properties. ADF members moving into DHA-managed properties can also lease furniture through this service agreement.
  
  Service to lessors
  
  Lessors play a key role in helping us maintain the quality of housing we provide ADF members and families. In 2015–16, we implemented the following initiatives to improve the service we provide to them:
  
  
• Online Services
  
  For several years, lessors have been able to use Online Services to view their leased property details, rent statements and maintenance charges. In 2014–15, we gave lessors access to our annual rent review process results rather than posting them. This year, we enhanced that to automatically enable lessors to initiate a secondary review if their lease provision allows them to do so (rather than them having to email or call). A total of 159 secondary valuations were requested by lessors, a 17.0 per cent reduction from 2014–15. We also made pest inspection reports available online, with automated management of associated maintenance, and provided more information to lessors to facilitate regular communication.
  
  
• Mid-lease sales
  
  DHA lessors can sell their property at any time, but have to sell the property to an investor who takes over the balance of the lease term. Historically, lessors would choose their own real estate agent to sell their property and pay market commission rates.
  
  In 2015–16, we negotiated commission rates with our panel of real estate agents and created a mid-lease service whereby lessors can engage them to sell their property. One of the main advantages of this service is the ability to advertise the sales listing on our website and receive referrals from interested parties. In addition to improving liquidity, lessors benefit from reduced commissions and relationships with agents who possess a greater knowledge of our lease terms. We are also better positioned to manage the safety and privacy of ADF members and families tenanting the properties.

Analysis of performance against Purpose 1

While we achieved all KPIs and performance criterion in relation to Purpose 1, we had to carefully manage a number of risks, including:

• Survey fatigue
  
  ADF members are continuously surveyed by Defence, DHA and a range of other service providers. Defence maintains a register of all research conducted to manage risks, such as survey fatigue. We work closely with Defence and comply with their requirements. Surveys are essential to our business operations, not only to measure our performance against contractual KPIs but to identify areas for service improvement. We will continue to monitor this issue and refine our methods in line with best practice.
  
  
• CSIA recertification
  
  Each year following recertification, we receive a report from the CSIA identifying how our customer service performance compares to international standards and best practice. We value the independent assessment and use their feedback to focus on areas with potential for further improvement. In the 2015 report, opportunities for improvement included:
  
  
  • reducing reliance on hard copy material by expediting the digital transition
  • increasing the functionality of our self-service mobile and web-based platforms
  • leveraging media analysis to initiate process improvement activities
  • identifying measures that will sustain a customer service culture throughout the organisation and its focus on continuous improvement.


• Forensic Review
  
  We did everything possible to ensure that the service delivered to our customers, clients and stakeholders remained strong during the Forensic Review process and implementation of the recommendations.
  
  The review identified several areas, particularly in relation to business processes, where work could be done to further improve service delivery. More information about this is provided in Purpose 3 and the external scrutiny subsection in Section 3 of this report.
  
  While we have elected to pursue a program of works above the minimum recommendations, the changes implemented appear to have already made a positive impact on the organisation and in the delivery of service to our key customer groups.