Reviewing the operations, finances and business processes of the NatHERS scheme to devise a financially stable business plan.

Client: Department of Environment and Energy 

The challenge

The Nationwide House Energy Rating Scheme (NatHERS) rates the energy efficiency of a home based on its design. The scheme had grown through multiple incremental changes over 20 years, but required significant review and restructuring to secure its future viability. Common Capital was engaged to develop a business plan that would improve operations and create financial stability.

Our approach

Common Capital took a business strategy approach, reviewing the scheme’s operational and financial structure and business processes. Combining our expertise in business, strategic policy and program design, we considered the scheme from first principals as the basis for a new business plan.

We assessed how successfully the scheme was delivering against its existing objectives and carried out stakeholder analysis, identifying the needs of all the scheme’s stakeholders.We provided NatHERS with a proposed business plan including recommending a number of opportunities for business improvement.

The outcome

The new business plan was approved and adopted by the NatHERS steering committee. To implement the plan we helped to reprioritise the immediate needs in the current NatHERS workplan to give staff the capacity to make the necessary changes.

The plan included a cost-recovery funding model, to cover the shortfall in funding for critical functions, and secure the future of NatHERS.