The Client

In anticipation of the property market softening in 2018, Phoenix Project was engaged by Redbank Communities North Richmond to help improve their value proposition to land buyers and to maintain investment values for residents in a falling property market.

Redbank is a land developer in North West Sydney building a master planned estate in North Richmond, NSW. 1400 lots in total with 400+ homes are already built within 80 Hectares of parklands, including 25+Km of cycleways and walking trails.

They employ 18 full time staff in addition to using multiple third-party providers and contractors to deliver services. Redbank has also built an independent living over 55’s village next door to an assisted living aged care community.

Phoenix Project helped Redbank Communities identify that presentation of the estate was unnecessarily causing negative effects on sales, increasing costs of maintenance and leading to dissatisfaction with existing residents.

Poor presentation led to some major business issues frustrating Redbank including bad first impressions to buyers making it difficult for the sales team to convert leads. The public perception of the estate was also suffering and Redbank were desperate to turn this around before the problem grew out of hand.

The Brief

Phoenix Project spent time upfront to fully understand Redbank’s frustrations and how poor presentation was impacting their business. We also explored different options with the client to give them comfort and confidence throughout the decision-making process. Phoenix Project was with the client side by side throughout this stage.

We found the major issues facing Redbank with their estate presentation were:

• Confusion through 3 providers with unclear responsibilities
• Fear that already high costs would get worse
• Loss of control of work quality and timing
• Concern that sales would become harder and revenue would drop
• Disputes between providers and Redbank caused anger
• Quality was not improving

Client Expectations

Following an initial discovery and research period Phoenix Project developed a business case for an inhouse solution. To meet Redbank’s requirements the proposal needed to:

• Visibly improve the overall presentation quality of the estate
• Be implemented in 12 months
• Reduce costs and being sustainable beyond 5 years
• Integrate immediately with sales and community teams
• Be fully operational including compliance with relevant acts
• Scalable and able to generate additional revenue

Once completed, the business case would be presented to the board of investors for approval. Comprising investors from Australia and New Zealand with diverse holdings including retirement estates, wineries, seafood manufacturing and investment portfolios, they would have final say on proceeding.

If the board of investors were happy, Phoenix Project would be retained to deliver the solution.

The Solution

Phoenix Project recommended an “in house” maintenance division be created to improve the presentation of the Redbank Communities estate.

By creating a new team of 4 permanent staff consisting of a Senior Horticulturist, a Senior landscaper and two 1st year apprentices. Phoenix Project forecast the following benefits for Redbank;

• Lower operating costs and a simpler operating model
• Greater control of landscaped outcomes
• Quality presentation as a point of difference for the sales team
• Community events would be improved
• Employment of local people to build community ties
• Contractual obligations would be met

Expertise Applied

Phoenix Project applied knowledge and experience from previous engagements and industries to the Redbank solution. This is important to clients facing uncertainty and needing a feeling of security when making tough choices.

Phoenix Project provided the thought leadership and we rolled up our sleeves to deliver the program on behalf of Redbank much to their relief. This included;

• Creating a business case evaluating outsource and in house options
• Recruiting 4 permanent staff in line with industry awards
• Ensuring full compliance to WHS laws
• Development and management of a project plan
• Financial costings and operating expense model
• Contract management during transition to “in house”
• Plan development of a maintenance compound

Testimonial
“I work with many consultants, Phoenix Project worked with us to understand our needs and pain points. I was comfortable throughout the process and very happy with the results.”
Jock Douglas – Business Development Manager Redbank Communities

The results

At Phoenix Project we believe results speak for themselves. For Redbank we were delighted that the results we delivered our client exceeded their expectations. In a nutshell we saved the client money, improved their sales conversions, created a new service and strengthened their ties within the community. The detailed results are at the end of this case study.

We delivered a fully operational landscape maintenance division inside the 12 month period, in fact we went live in 10 months. This meant more money saved for our client through terminating some expensive landscape maintenance contracts ahead of plan.

Redbank Communities confirmed that we will save them $2 Million dollars in costs alone. This doesn’t include additional work the landscape division can do (planting new parks, installing landscape solutions and laying turf for example) which will save even more money for Redbank.

The presentation of the estate has noticeably improved meaning Redbank is the only developer in the area maintaining their land prices whilst competitors are discounting around them. This keeps their investors on track to realise their goals and helps residents feel confident about their choice to live at Redbank.

The residents themselves are voting with their feet. The parks, picnic areas, lakes and walking trails are being used far more than prior to our engagement. This is a great sign that the community is aware of the changes but are in fact out with their kids and pets enjoying the results.

“There’s a growing sense of pride in the estate now that is a pleasure to see growing”
Mitul Haque – Redbank Community Manager

Phoenix Project led recruitment and onboarding of 4 permanent staff. This included partnering with TAFE NSW and the NSW Government to successfully hire 2 apprentices. All new staff were in fact local people demonstrating the developer’s commitment to the local community.

To support the new staff Phoenix Project ensured all equipment and clothing was branded and WHS compliant. We worked with the new Senior Horticulturist to source and implement an online safety tool “AgSafe” to handle safety records and training online via team mobiles. This includes operational site manuals.

We established a week 1 to day 1 operations orientation day to make sure the new Redbank team was familiar with the site and the company values.

The results in detail

• Redbank CFO has confirmed the following financial results
• Cost savings of $2MM over 5 years
• Further savings of $400,000 identified in next 12 months
• 30% cost reduction in outlay of new plantings
• 30% labour cost reduction for new plantings
• Breakeven in 12 months
• Approx $800,000 new revenue opportunities identified
• Dieback of plants reduced from 8% to 2%
• Sales team confirms
• Zero price reductions (competitors are discounting 10-15%)
• Lead conversions have improved 5%
• Resales are holding their value
• Presentation is at peak on Fridays before heavy sales periods
• Generally the client confirms
• Eliminated disputes as a result of outsourced providers
• Positive feedback from residents and community
• Community events have benefited