Organisational culture more important than size
Housing leaders gathered in the House of Commons yesterday for the launch of new Chartered Institute of Housing (CIH) research which shows organisational culture and people are more important in driving performance than scale alone.Significant changes to the economic climate and regulation mean landlords will need to make tough decisions about their organisations purpose and values, and ensure a culture of value for money (VFM) is firmly embedded across the whole organisation to deliver against those objectives. Whilst growth can bring with it opportunities for scale related efficiencies these are not generated by size alone. Organisations need to be clear about their reason for growth and be prepared to drive transformational change to realise those benefits.
This report coincides with the Tenant Service Authority (TSA) consultation on the new regulatory framework, and considers how well equipped the sector is to respond to current drivers around efficiency and value for money. Drawing on TSA and HouseMark data analysis this research shows that it is not correct to assume any particular structure delivers quality services or lower costs. CIH cautions against losing social values whilst pursuing cost efficiencies, and explores ways that the quest for VFM can be integrated into an organisations culture as a matter of course rather than being a response to regulatory expectations.
Speaking at the launch MP John Howells who hosted the event, said: “The social housing sector is richly diverse in its make up, but in order to meet the challenges facing the sector organisations will need to make conscious decisions about their purpose and values, and be prepared for entire transformational change where necessary. Driven in part by the localism agenda and regulatory changes VFM and accountability to residents is of paramount importance and needs to be embedded across the organisations culture. Landlords should not assume that VFM can be achieved through growth alone, or that costs and scale are interdependent.”
Grainia Long, CIH Interim Chief Executive, said: “Its been a pleasure to work with Bromford Housing Group, Affinity Sutton and Soha Housing on this research. At a time when the sector and its performance are under scrutiny and often challenged; it is important to have a good understanding of what really affects cost and quality, with objective knowledge and practice examples from some of the best in the sector we can all gear up for an effective future.”
The full and summary report can be found here:
Does size matter – or does culture drive value for money?