The Governor June 2010 by HQN Limited

Governor the

HQN'S MAGAZINE FOR BOARDS, EXECUTIVES AND LEADERS

The new government

Communicating with tenants

JUNE 2010

Unique insights from tenant board members

- putting k o o b e l u r he ed ipping up t r s i ics plunder n t o c i a t t i l g a n o i c s e u k Th horitative ack on trac t b u y a r t y l n n u o o c e th the k-ins. Get QN website. r H o e w h t ’s 0 m 7 o 9 1 r f from new reality overnment g e h r t o f o t g e n c i n t i guida in a rut wa e KLOEs. h k t c u d t e s l l e i r k a m lis Others ’t come. Loca n o w y e h t orders ing locally k r o w d n a y ving mone ckage of a p - HQN - sa w e n R HE ed THIS TOGET N I E ’R be announc E o W t s t u c e c d pri services an responsibly y o j n e E C N TE CONFERE - HARROGA Rockingham House St Maurice’s Road York YO31 7JA

Telephone 0845 4747 004 Fax 0845 4747 006

Internet www.hqnetwork.co.uk Email hqn@hqnetwork.co.uk

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“When Grant Shapps goes to the CIH conference at Harrogate, trust me, he will do the headcount.” “Secret to survivin’ is knowing what to throw away and knowing what to keep”: the final words of advice from Kenny Roger’s The Gambler, a massive hit as Thatcher rolled back the state. Nothing much changes. Now George Osborne sets out his tests for public services: Is it essential? Will the needy gain? Could it be cheaper? Can the private sector do it better? Can it be done locally? The emergency budget on 22 June tells us what these tests really mean. But these are the sort of tough questions every board should be asking itself. A housing association chair used to work for Lord Weinstock of GEC. He would haul in managing directors for a two-hour steamrollering of flim flam. One clever man regulated an international conglomerate. How many regulators, board members, inspectors, executives and consultants run social housing in our country? When Grant Shapps goes to the CIH conference at Harrogate, trust me, he will do the headcount. ‘Look busy’ was what we were told to do whenever the bosses visited our lemonade factory in Glasgow’s glamorous East End. No fears there then, as delegates are always up to something at Harrogate. Thanks to the national debt, no one has job security. All of us must show our worth. Board members should ask sharper questions than ever before. And they must set their own agenda. There won’t be detailed guidance giving pat answers from the Tenant Services Authority or Audit Commission (whatever these get turned into). Perhaps that’s just as well – elsewhere in this issue we reveal the chaos that followed when Whitehall ordered everyone to run maintenance the exact same way. Small wonder that tenants remain unhappy with this key service. HQN looked at the work of landlords on local offers for the TSA. We found that tenants were militant on value for money. They live on tight budgets and expect landlords to do the same. Too often we cannot give them straight answers on why service standards and costs vary. This is one area where we must do much better. Performance indicators should be turned inside out to answer tenants’ questions, not to feed the benchmarking behemoth. Incredibly, it is possible to save money without finding out what 100 other landlords do first. There is a cadre of people on boards that can ask the right questions and take the right decisions. I know they will separate the wheat from the chaff. But there is one huge challenge ahead. The recruitment freeze could trap boards with staff they no longer want. Sometimes executives fit better elsewhere. Of course the government must rein back recruitment agencies profiting from recycling the same executives. But adding just a splash of freedom to bring in new blood could revive organisations for a fraction of the cost of intervention. The minister should let us ‘know when to hold ‘em and know when to fold ‘em’ as Kenny Rogers suggested. And board members mustn’t be the cowards of the county. Alistair McIntosh Chief Executive, HQN

CONTENTS 3

Secret to survivin’ Comment by HQN Chief Executive Alistair McIntosh

Brave new world? The changes housing providers face under a new government

Talk to me... Communicate with your tenants via your annual report

Shifting sands A new analysis of repairs performance

Insider knowledge Unique insights from tenant board members

At the helm Anchor Trust’s new chief executive

Howay the lads! Can coaching help you get the best from your staff?

Codebreaker The new code on how British businesses should be run From the press Our regular round-up of the world press’s view of governance

All change Shake-up at the CIH Cabinet makers The movers and shakers in the new government Biding time What does the future hold for the TSA?

All articles in The Governor were written by Kate Murray unless otherwise stated. Designed by Paul Miller

Prontaprint Scarborough

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Change is coming fast to housing. Spending cuts, new ways of delivering new homes, and, more than likely, another regulatory shake-up, are all on the horizon. Underpinning it all is a new attitude towards the delivery of public services. How should you gear up for this brave new world? Here are some key areas to look out for. Think local Localism is a key driver for the coalition. Just listen to David Cameron when he says giving people more power and control over the services that are delivered in their areas will inspire a new spirit of civic pride. Radical decentralisation, as set out in last year’s Conservative Green Paper Control Shift: Returning Power to Local Communities, is the order of the day. For housing, this will mean opportunities as well as challenges. The best providers, working closely with their residents, will be able to tailor their services to local needs. The trick will be to have effective ways of maintaining dialogue with your tenants, so that you can react quickly to their priorities. Lengthy and long-winded consultation programmes won’t cut it.

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Think for yourselves The move away from the centralised approach will have a huge impact on the way organisations think about the services they deliver. The days of top-down targets and central diktat are over. Housing organisations which have become over-reliant on ticking the right boxes need to shift course rapidly. Flexibility and responsiveness will be key. For boards, this will mean making sure your organisation is geared up to provide high quality services that work in your area, rather than rolling out a centrally endorsed model. And whatever happens to the Tenant Services Authority and Audit Commission, there will be no return to the days of the comfort blanket of guidance notes and circulars. Think efficiency With public spending so tight, boards will need to be creative about finding resources. There are clear signs that the new government will demand that providers unlock more resources from their own assets. Any

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public investment that there is will need to be spent more efficiently than ever. Demonstrating the wider benefits of investment in housing will be crucial. And there will be no room for risky ventures. Schemes will need to stack up. Boards will therefore need to be on top of risk. Think lean Staff and board members will need to share in the pain. Ministers have themselves made a clear gesture on this by agreeing to tighten their own belts on salaries and travel. It’s significant too that one of Grant Shapps’ first pronouncements as Housing Minister was to point to the salaries of housing association chief executives. He may not be able to touch pay deals, but it would be foolish to dismiss the mood for more restraint. Boards and executives will also need to be careful about the impression their other spending may give. Travel, hospitality and events will all need to be properly justified. Putting on a flashy event may not seem to be a big deal given overall budgets, but impressions are important.

Think partnership New models of working will be very much on the agenda. The coalition partners have already signalled their interest in exploring mutual models and community trusts. Housing providers will need to be open to options which give their residents the bigger stake in their communities which ministers want to see. That may mean adapting models which work for them, or working more closely with others which already work in that way. The coalition is keen on delivering through small community and voluntary sector groups: bigger providers will want to see how they can effectively work with those groups on the ground. Think innovatively The government will be looking to the housing sector to help it bring about the locally-focused ‘Big Society’ it talks of. Thinking creatively about new services and new offerings will put you ahead of the game.

NEW WORLD? Just a few weeks in, and the world already looks very diﬀerent under the coalition government. The Governor takes a look at how housing providers need to prepare for the challenges ahead

WHAT THEY’RE SAYING “WE KNOW THAT WHEN yOU GIvE PEOPLE AND COMMUNITIES MORE POWER OvER THEIR LIvES, MORE POWER TO COME TOGETHER AND WORK TOGETHER TO MAKE LIFE BETTER, GREAT THINGS HAPPEN.”

“WE NEED RADICAL CHANGE THAT PUTS POWER BACK IN THE HANDS OF PEOPLE. ONLy By BRINGING DOWN vESTED INTERESTS AND GIvING PEOPLE REAL CONTROL OvER THEIR LIvES WILL WE BUILD A BRITAIN THAT IS FAIR.”

“THIS GOvERNMENT WILL CHAMPION A NEW ERA OF TRANSPARENCy By SHINING A BRIGHT LIGHT ON HOW HARD-EARNED TAxPAyERS’ CASH IS BEING SPENT.”

Prime Minister David Cameron

Deputy Prime Minister Nick Clegg

Housing Minister Grant Shapps

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Communicating effectively with tenants will continue to be vital – whoever the housing regulator may be. So preparing your first annual report to tenants well should be a priority

Talk TOME... The new regulatory regime for all social housing providers has only been in force for a couple of months – and already its future is in doubt. But while the government considers the fate of the Tenant Services Authority, providers should not assume that the requirements it has put in place can be taken lightly. One of the key requirements is the annual report to tenants. It’s safe to assume that whatever happens to the regulatory regime, better communication with tenants will be a top priority. After all, an effective dialogue with residents fits very well with the coalition’s vision of localism and civic engagement. Lessons learned now will therefore be important in future. Providers should already be thinking about the content of their first report, which is due for publication in October. There will no single template for success. Providers will be free to tailor their own report to meet the needs of their tenants and their organisation. But there are some pointers which could make the whole process smoother: Get tenants involved from the start. It’s important that you give tenants the information they need – rather than what you want them to hear. Ask them what they want to know and how they want to read it. Involve them fully in planning the project, with workable project groups to ensure their views are represented Ensure that your project team has enough priority internally to get things done

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Choose the right medium. you may have an effective existing means of communication, such as a newsletter, which you can adapt to give tenants more information about performance. you should also be looking at newer routes, such as the internet and social media like Facebook and Twitter Demonstrate clearly how you are responding to tenant priorities. you should be using the information you already have to inform this, plus showing how you are working with your residents from now on in to improve performance Think sensibly about presentation. When times are tough it won’t go down well to blow your cash on glossy brochures. Accessible and well-presented communication doesn’t need to cost a fortune Make sure readers can find their way through the information you present. It may be tempting to chuck everything in – but don’t make it too long. you should, however, remember that some residents may be interested in supplementary information, so make sure you signpost readers where to go for more Avoid spin. Tenants know what life is like on their estates and will see through puff. If things have gone wrong, explain how you are putting them right. Present your financial information clearly and consistently. Facts are more important than waffle Ensure you don’t just push out your report and forget about it. you need robust feedback to check that it is read – and appreciated. Offer residents the chance to comment and then to contribute next time.

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A huge cultural shift is coming. The coalition's localism agenda promises more flexibility and less central government control. As David Cameron told local authorities, there will be an end to 'target-driven, top-down government which is trapped in the bureaucratic age and micro-manages all they do'.

Certainly there's food for thought about the multimillion partnering deals so many were encouraged to adopt. And as we move into the new world of localism, it's clear that boards and executives will need to do some hard thinking and decide for themselves how they can best boost performance in this key area.

In housing, dominated over the last few years by inspections and KLOEs, the new mood will mean leaders will need to be more self-reliant, ditching much of the received wisdom that has often guided the way they work. And if thereâ&#x20AC;&#x2122;s one piece of received wisdom which has held sway in the housing sector over the past few years, it's that partnering brings better performance.

The review of the short notice inspection reports, from when the SNI regime was introduced to March this year, also shows that:

But is that really true? Has the partnering approach promoted by government produced results? New analysis by HQN of housing association short notice inspections suggests that the command to partner has not always brought success. In three-quarters of short notice inspection reports on responsive repairs where associations did worst (zero-star equivalent), partnering arrangements were in place. Were there local factors at play? Or do the results really suggest that a centrallydriven model hasn't brought the expected benefits?

A new analysis of repairs performance may have a wider message as the housing sector moves to more flexible, local solutions

39 housing associations were inspected where responsive repairs were in scope 12 were judged to be weaknesses outweigh strengths (zero stars) 11 were judged to be strengths and weaknesses in balance (one star) 14 were judged to be strengths outweigh weaknesses (two stars) 2 were judged to be strengths significantly outweigh weaknesses (three stars) 59% of landlords failed to get above one star. In most cases, the maintenance service provider appears to have little impact on the outcome. There is no evidence that large contractors are performing any better or any worse than their smaller or public sector contemporaries.

SHIFTING SANDS PERFECT MATCH: THE QUESTIONS BOARD MEMBERS SHOULD ASK ABOUT MAINTENANCE PARTNERS What standards were the board promised at the start? Are these being delivered? What costs were agreed? Have these gone up? Why?

Are the performance reports and tenant satisfaction figures heading in the same direction? Where performance looks good on paper but tenants are grumbling, trust the tenants Does the board know where performance must improve? Does it know which levers to pull?

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Tenant board members have unique insights into the services their organisation delivers – but they also face their own challenges. The Governor spoke to some of them about their boardroom responsibilities

strategically about the business. Those two things are completely separate. But being on the board certainly changes how you feel about the business. I am so much more educated about the organisation and the problems it is trying to overcome. I have learned it is a very hardworking ambitious organisation that is trying its best.”

KEITH CLANCY, FAMILY MOSAIC

How do you approach being a board member?

Keith Clancy first became involved with his association when his victorian block was being refurbished and he felt tenants’ views weren’t being properly taken into account. He became a tenant board member in 2008.

“If you are going to put yourself forward to be on a board, you have to have something concrete that you are offering. If you are not clear about what you want to achieve and you just want to be on a board, then it is a waste of time. you have got to have realistic suggestions to make and not just be there to criticise.”

What was your initial motivation? “My perspective was that if you listen to the tenants who live in a building then over time you can save a lot of money and have more satisfied tenants. I invited the Chief Executive to the building and explained my views about tenant involvement – not just the government talking about people being involved, but tenants actually doing something.” What contribution have you been able to make since you joined the board? “I was asked to take a slot at the away day and presented a paper with ideas on how to improve tenant participation and community investment. I was absolutely amazed and delighted with the reaction it got and at how the ideas have been picked up and developed.” Has being a tenant board member changed your views as a tenant?

What’s your view of tenant involvement across the housing sector? ”There’s a huge spectrum of organisations at different points of their evolution. Some, like Family Mosaic, have established themselves to the point where they can really develop a future with their tenants. It’s obvious that other organisations are so far behind in terms of managing their organisations that for them listening to their tenants is going to be a lot more difficult.”

MARJORIE MARSDEN, VICE CHAIR, WIGAN AND LEIGH HOUSING An active member of the community, Marjorie Marsden joined the ALMO board eight years ago as ‘another channel’ to get tenants’ voices heard. How did you find joining the board?

“I feel in many ways exactly the same as I always did: I am a single tenant who lives in a block and when I’m there I’m just another guy in the house. In board meetings I am one of a team of 12 people who think

Keith Clancy

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Marjorie Marsden

“There was a large learning curve. It was very daunting as I didn’t know anyone on the board but they were very welcoming and I was offered a lot of training.”

Jim Scollen

Paul Wren

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How do you see your role? “I am the voice of tenants. I do it from the perspective that I live on an estate and I can take my knowledge to the board.”

which is natural, but after a couple of meetings I felt comfortable. There is a good induction process. Some of the reports can be a bit dry, but I am lucky because I am comfortable with finances and figures.” Any advice to would-be board members?

What has been your biggest achievement? “Getting the Council to think again about rent rises. I sent a letter to the housing minister. That showed that you can have an influence.” Would you recommend board membership to other tenants? “It’s the most precious thing for any tenant – it’s all very well saying you’re not happy – well, do something about it. I am very keen that we get more younger tenants to come on the board.”

“If you think you are capable of doing it then go for it. If you don’t you’ll regret it! To get an idea of what it’s like, ask if you can go and observe a meeting.”

PAUL WREN, CHAIR OF WELWYN AND HATFIELD COMMUNITY HOUSING TRUST A lifelong Welwyn resident and a tenant since 1962, Paul Wren is chair of England’s newest ALMO. How did you get involved?

JIM SCOLLEN, TEES VALLEY

“I have always been community-orientated. After I retired, I joined the tenants’ panel and I got bitten by it. I was absolutely fascinated.”

For Jim Scollen, tenant involvement is a family business: his wife is very involved locally and his daughter is a former board member of another housing provider. He has been a Tees valley board member since 2007.

You are a new organisation. How have you and the other tenants adapted to being on the board?

What do you get out of being a board member? “I love it – it’s something I’m very passionate about and I feel I am achieving something. As soon as you cross the threshold into the boardroom, you are a board member not a tenant, but if anything comes up about tenants, the tenant board members are the experts. Every voice on the board makes a contribution, every voice is welcome and every voice does influence what is done.” What are the challenges? “When I first went into the boardroom I was overawed,

“Working for a year as a shadow board has helped. We feel very confident with the board we have got. No one has been intimidated about expressing any views or thoughts they have had. We all go in as a management board – we don’t say: ‘I am a tenant.’” How different is the involvement tenants can have now from when you were first a tenant? “When I first got a house the attitude was you were lucky to have it and you didn’t question authority. Now there is an open door for tenants. The opportunities are there now – no one is forcing you to get involved but it’s there is you want it.”

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The new chief executive of England's largest housing, care and support provider for older people has a clear vision to steer her organisation through the choppy waters ahead

AT THE

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Jane Ashcroft seems a bit surprised to have ended up in charge of a housing and care business with a £267m turnover. “I’ve never had a career plan – if you look at my Cv you can see that,” she smiles. “I was going to be a teacher.” But instead of ending up in the classroom, this history graduate, whose career includes stints in the energy industry and the private care sector, is now Chief Executive of Anchor Trust, which provides housing or care to more than 50,000 older people across the country.

"IF YOU REALLY UNDERSTAND WHAT YOUR CUSTOMERS WANT, YOU WILL SURVIVE AND THRIVE"

A fresh vision Ms Ashcroft officially took the reins in March, after a few months as acting Chief Exec, and has wasted little time stamping her own mark on the organisation, where she has worked for more than a decade. “It needed to be a fresh vision,” she says. “It’s not a radical departure, but in any service-based organisation, leading is about giving clarity to people you work with about what it is you want to achieve. For me, it’s about Anchor being associated with great places to live for older people and with fantastic care.” She’s confident the organisation has a strong future, even in the tough financial times ahead. “If you really understand what your customers want, you will survive and thrive,” she insists. “We are pretty well placed in difficult times – we have 40 years of heritage to draw on, we are really strong financially, we have got a strong balance sheet and a strong asset base. That’s why it is incumbent on us as a charity and a registered provider to make sure we do the most we can.” And that’s why, she adds, Anchor will roll out a significant development programme, without grant, over the next five years both in housing and in care homes, alongside plans to grow its domiciliary care business.

But there will be some tough decisions ahead. Anchor is having to review the future of its stock in the light of changing expectations among older people about where they want to live. That means the closure of many bedsit schemes – 42 this year – which are no longer popular. “Some of these schemes are full, with a waiting list,” says Ms Ashcroft. “But the schemes that are unviable financially, we will close. We are putting a lot of dedicated resources into the closure programme.” Listening to customers One of the ways she wants to equip Anchor for the future is by bringing senior staff closer to those on the frontline, with directors going out on the road every month to meet their more junior colleagues. “We have 700 schemes and they can feel a long way away from the centre of the organisation,” she says. “My job is listening to our customers and their families, and listening to our staff so that when we make decisions, we are informed. It’s not about me sitting in a rather nice office – I am one of the cogs that makes a big organisation work.” Clearly, too, she wants to instil her vision in staff. Anchor’s profile in recent years has been dominated

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AT THE by coverage of previous Chief Executive John Belcher’s salary – the highest in the housing sector. His pay package while at Anchor once again hit the national front pages just this month after new Housing Minister Grant Shapps spoke out about association chief execs’ pay. Ms Ashcroft declines to reveal her own salary before the organisation’s annual report is published, but concedes that all of the attention has had an impact on her organisation. “One of the consequences of the media coverage is that people feel a bit knocked about. Customers picked up the Daily Mail and it was talking about the salary of someone in their organisation,” she says. Now, she says, she wants to ensure the focus is on the services Anchor offers – and on the vital role frontline staff play. “This is not a sexy sector to work in. Dear old Tesco can offer the people who work there money off their shopping – we can’t. People come to work because they enjoy it – it’s about understanding what matters and creating a compelling vision for them. We are proud of what we do.”

Ms Ashcroft is clearly passionate about offering high quality services for older people and upbeat that solutions will be found to the tricky issue of funding elderly care in the future. “Politicians need to engage with this – for me one of the big issues is that we have an honest debate,” she says. “The social care environment was created post the second world war and hasn’t really changed since then. The concern I have is that many of our customers and families have little understanding about how the system works and what they are entitled to. They only find out at time of needing to buy service, which is distressing.” An optimist in difficult times But she adds: “I am an optimist and I think we have to find our way through these difficult circumstances we find ourselves in. We have to do things differently and we have to find solutions.” She’s pretty clear about where she wants her organisation to be in five years’ time. “I want more customers to be getting a great service and for older people’s services to be better recognised,” she says. “If somebody thinks ‘I need to get some help for my mum’, I want them to think Anchor, and if someone thinks ‘I want a great career’ – I want them to think Anchor.”

JANE ASHCROFT ON: Ageism: “There’s lots of implied ageism in lots of areas of society – even the word ‘old’ is generally derogatory. We meet incredible people who have done stunning things, but society looks at them and sees a little old man or woman.” Good governance: “Working effectively with your board and having a good board is really important. Our board is really well-informed of its responsibilities and conducts itself with a real focus on that.” Tenants on the board: “We have got 50,000 customers and about half of them are tenants in social housing. Having three or four on the board I don’t think is an appropriate mechanism for engaging with them. The danger is that it looks compliant when it isn’t.”

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Services for older people: “People don’t know what services are available – moving into a care home is never an aspiration. So someone doesn’t phone up and say they want to inquire about a category 2 sheltered scheme, they say: ‘Can I talk to you about my mum? I’m worried about her.’” Rebranding her organisation: “It’s not about painting everything purple. It’s about making it easier for customers to find us.” Getting away from it all: “I'm quite sociable and I'm a big reader. I also like gardening – or rather I like my husband to do the garden and for me to sit there enjoying it with a glass of wine.”

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We’re in it

together! HQN and you – side by side Subscription fees frozen again: we’re cheap and essential – regular briefings on changes to regulation and finance included Are you doing what the tenants want? Do you meet statutory standards? HQN tests this quickly and reliably – no matter who the regulator is Low-cost board, tenant and staff briefings on what the new government really wants to see Fast projects to save you money – whilst maintaining service standards. HQN: lean work for lean fees For further information, please contact Anna Pattison on anna.pattison@hqnetwork.co.uk or 01 04 71 7

Rockingham House St Maurice’s Road York YO31 7JA

Telephone 0845 4747 004 Fax 0845 4747 006

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As the World Cup plays out in South Africa, huge attention is being focused on how the best coaches on the planet get the most from their football teams. And in the workplace, too, coaching is becoming an increasingly important tool. Coaching, so the management gurus will tell you, is all about developing and inspiring your team, rather than just telling them how you want the job done. And in the housing sector, as in many other fields, coaching has become an increasingly popular way of boosting performance. According to the Chartered Institute of Personnel and Development, there’s been a consistent rise in workplace coaching over the last few years, with around seven in ten organisations now making use of it. So what makes a good coach? And can it, in tough times, prove a good way of developing a more successful team? Universal problems Susan Kashyap has been on both sides of the fence as someone who has been coached and is now a busy

coach herself. She says coaching is a very effective way of supporting people’s development, whether through performance coaching or one-to-one executive coaching. A good coach, she says, does not need to know the ins and outs of a person’s day-to-day job, but rather needs to focus on wider issues. “I coach a lot of people in housing and I am not a housing person,” she says. “The problems people discuss in a coaching environment are pretty universal. It’s about people issues, professional issues or sometimes the fact that they are in an organisation and feel a bit trapped and it might be time to move.” Her own experience of coaching was that it really stretched her. “My own coach had identified for me something I wasn’t considering for myself, which was that I had really plateaued in my organisation: I don’t think I had articulated that in my own mind until my coach started to probe and push.”

HOWaY THE LADS! Can coaching help you to get the best from your staff? 14

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The key to good coaching, she adds, is creating a professional and safe environment where people can open up to their coach. “If someone thinks there is a hidden agenda or that you are there as a management tool, then they are not going to benefit and neither is the coach. Confidentiality is key to the entire relationship.” No axe to grind Dave Ganz, Executive Director of HQN, agrees. “It is very important that your coach is not someone with an axe to grind: your line manager, for example,” he says. “To get that freedom to be able to talk about things is fantastic – I wish I had had a coach when I was first a manager in housing.” He believes a successful coach is personable and good at listening, but not afraid to challenge too. And – despite the explosion in coaching, and related qualifications too in recent years – he says it’s not about having the right coaching ‘badges’.

THE COACH SHOULD: Create a safe, confidential setting, where both parties can talk openly Establish a good rapport Focus on issues such as vision, strategy and career goals rather than day-to-day work details Provide effective feedback.

THE COACHED SHOULD: Be prepared to be open and receptive.

“I WISH I’D HAD A COACH WHEN I WAS FIRST A MANAGER IN HOUSING.” “For me, it’s all about having the ability to work with an individual and take them where they want to go. “People get coached for all sorts of different reasons. In the private sector, it’s often about making more money in the business but in housing it might be about being more assertive, or more confident or dealing with difficult staff or communicating better. The important thing is that by working with an individual you can, in turn, benefit their organisation and their customers.” For Susan Kashyap, coaching offers people the opportunity to develop in ways that their day-to-day work never can. “For some, it gives the opportunity to offload and have a sounding board, whereas for others, perhaps more junior, it’s a very good means of asking questions that perhaps you just can’t ask in your occupational environment.”

THE ORGANISATION SHOULD: Use coaching when it can help develop an individual’s potential – but not regard it as a solution for all development needs Look to coaching when restructuring or reallocating staff resources to help people step up to their new roles Consider coaching to help develop staff who have been in their roles for a significant length of time.

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It’s been described as the biggest shake-up in governance Britain has ever seen. And certainly the publication of the Financial Reporting Council’s new corporate governance code last month represents a huge milestone for businesses. It will also be hugely influential in how organisations more widely – including in the housing sector – are run.

The new code on how British businesses should be run sets out some key principles of good governance

CODE The FRC brought its review of the code forward because of the banking crisis, Perhaps the change which attracted the most headlines was the requirement that all directors of FTSE 350 companies should be put forward for re-election every year, with all other directors subject to re-election at least every three years. But the updated code – formerly known as the combined code – has a number of other key elements.

There is a stronger emphasis on the need for boards to be well-balanced and to avoid ‘group think’. Board members should be appointed on merit, it stresses, with ‘due regard for the benefits of diversity’. There are also new principles on the leadership of the chairman and the responsibility of board members to provide constructive challenge. Boards should be responsible for determining the nature of risks it is willing to take. And

FROM THE

PRESS The cost of complying with government regulations shot up by more than £11bn over the last year, according to the British Chamber of Commerce. The organisation’s Burdens Barometer

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report says almost a third of the regulatory burden came from European Union directives. Francis Chittenden, from Manchester Business School, said regulation was ‘like taxation’, raising business costs and so reducing the amount of business activity in the UK. bbc.co.uk and Financial Times The recession has re-shaped executive pay in Britain’s top companies, The Sunday Telegraph says. The paper’s pay report, looking at how much is paid to the country’s top bosses, found that FTSE 100 chief execs’ pay fell by an average 1% in 2009 and cash bonuses and benefits were 28% lower –

HQN’S MAGAZINE FOR BOARDS, EXECUTIVES AND LEADERS

there should be regular board evaluation reviews and development reviews with each board member. Much of this may well already be good practice in the housing sector. But the code will provide a vital tool for organisations to ensure their governance is as good as it can be. The FRC says there has been strong support for

its desire to ‘promote better board behaviour’. But as it itself acknowledges, complying with the code does not in itself constitute good governance. Boards need to think effectively for themselves about their roles and how they should steer their organisations. In whatever sector, being a board member is a tough job. In the words of the FRC, it requires ‘continuing and high quality effort’.

bREakER THE NEW CODE: KEY PRINCIPLES Every company should be headed by an effective board which is collectively responsible for the long-term success of the company

All directors should receive induction on joining the board and should regularly update and refresh their skills and knowledge

There should be a clear division of responsibilities at the head of the company between the running of the board and the executive responsibility for the running of the company’s business. No one individual should have unfettered powers of decision

The board should undertake a formal and rigorous annual evaluation of its own performance and that of its committees and individual directors

The chairman is responsible for leadership of the board and ensuring its effectiveness on all aspects of its role

The board is responsible for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives. The board should maintain sound risk management and internal control systems

The board should have the appropriate balance of skills, experience, independence and knowledge of the company to enable them to discharge their respective duties and responsibilities effectively

Levels of remuneration should be sufficient to attract, retain and motivate directors of the quality required to run the company successfully, but a company should avoid paying more than is necessary for this purpose.

but share-based incentives rose by a ‘mouthwatering’ 31%. Total compensation packages were 6% higher at an average of £3.76m. The Sunday Telegraph Terminology can be a sensitive thing. The new ruling group on Liverpool City Council – the first Labour administration in the city for 12 years – has dispensed with the term ‘executive board’, reverting to ‘cabinet’ to describe the top team. Council leader Joe Anderson said: “I just want people to know we are not a board of directors, we are a political cabinet elected by the people and we will be judged by the people.” Liverpool Daily Post

Managers should look back to the Italian Renaissance and use rivalry within their teams to unleash innovation. That’s the premise of an article in McKinsey Quarterly, suggesting that the great flourishing of art from the 15th Century onwards was built on professional rivalries such as those between Leonardo da vinci, Michelangelo, Raphael and Titian. “Without knowing it, the world’s most creative companies have fruitfully embraced many practices that made the Renaissance uniquely creative,” it says. Beware not to go too far, though – as the article acknowledges, ‘some rivalries grew out of control, and led to duels, imprisonments and murders’.

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HQN’S MAGAZINE FOR BOARDS, EXECUTIVES AND LEADERS

GOVERNANCE ROUND-UP

ALL

CHaNGE With governance such a key issue in housing, it’s not just providers who are keen to ensure they have got things right. Hot on the heels of the National Housing Federation’s governance review, the Chartered Institute of Housing is reaching the final stages of its shake-up of the way it is run. The CIH’s approach makes for interesting reading. The consultation over the changes was frank about the failings of the organisation’s current decision-making structure. Its governance framework was ‘outdated’ and ‘no longer fit for purpose’ and its decision-making was ‘hierarchical’. Communication across the governance structure was ‘inconsistent’ and general CIH members were ‘detached from the decision-making process’. Interestingly, given how housing providers have in recent years focused on support for board members, the CIH’s own board members felt they did not have the appropriate level of support.

ITS GOVERNANCE FRAMEWORK WAS ‘OUTDATED’ AND ‘NO LONGER FIT FOR PURPOSE’ Overhauling the set-up will mean slimming down the CIH’s governing body – currently its national

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council – from 32 members to between nine and 12. The dual role of the CIH president as chair of the council and ambassador for the organisation will be split, with a new chair of the governing body elected for a three-year term. There will be greater inclusion of the membership in governance, but also opportunities for non-members to sit on the governing body. Members of the governing body will be selected, rather than elected, to ensure the right mix of skills. There will also be a new formal induction and skills appraisal process. As the institute acknowledges in its consultation over the changes, its current structure has been in place for more than 25 years – during which period best practice in governance has changed significantly. The proposals for change are set to go the CIH’s annual general meeting at Harrogate this month.

HQN’S MAGAZINE FOR BOARDS, EXECUTIVES AND LEADERS

CabINET

MAKERS White, public school and male. That’s a fair description of the majority of the top tier of the new government.

An analysis of the make-up of the new Parliament by the Smith Institute shows that it is more ethnically diverse and has more women MPs than before – but that politicians are still largely drawn from a narrow educational and professional background.

And it’s the composition of the Cabinet – more than 50% privately educated and only four women – which has attracted particular comment, sparking fresh questions about whether we will ever see leaders who really reflect our diverse population. The young Foundation has used this post-election debate to highlight its UpRising programme, which aims to provide the ‘skills, grounding, confidence and character which can help those who have the inclination to serve become great leaders’. Launched three years ago, the programme has already identified a group of young people in east London who are being groomed to become leaders with training and one-to-one support. The Foundation is currently recruiting another ‘class’ and is planning to expand the scheme to Birmingham next year. www.smith-institute.org.uk/file/Who-Governs-Britain.pdf www.uprising.org.uk

BIDING TIME With uncertainty surrounding the long-term future of the Tenant Services Authority, have some housing providers decided it’s not worth getting to grips with the new regime?

A survey by recruitment company Hays Social Housing found that more than a third of housing organisations felt they were not ready for the demands of the new regulatory regime. The overwhelming majority – 92% – understood how it would affect them. But half were unsure whether the framework would prove to be a success. The survey was carried out in April – the month when the new framework went live – and was published just

before the general election signalled the appointment of TSA-sceptic Grant Shapps as housing minister. The survey’s other findings suggest that a significant number of providers still have work to do to gear up for the TSA’s regime. Sixty-one percent had started to discuss the implications of the framework with their tenants, with another 22% having plans in place to do so. But that still leaves 17% with no work planned. Slow off the mark, or a wait-and-see attitude?

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