What is success for your organisation?
‘I mentor a lot of finance directors that have joined housing associations from the private sector. They are bright but often struggle with the competing priorities and complex funding streams.’
Housing consultant
‘It was straightforward for ALMOs and stock transfer associations in the early years. Win support, get the funding and do the works. We need a new flag to rally round now the Decent Homes target is met.’
Head of Operations, ALMO
The Association of British Insurers (ABI) researched the key characteristics of companies their members should invest in and observed a direct link between good governance and profitability. Many of the ABI tests of good governance can be applied to housing. The difference is that we have no single measure of excellence like profitability. Should you maximise surpluses, build more homes, tackle worklessness or boost tenant satisfaction? A combination of these and other factors is probably needed – but in what proportion? Boards must communicate their success criteria clearly to prevent confused management.
- What are the key tests of success for this organisation?
- How and when did the board decide on them?
- How are these measured? What are the targets? How were these agreed? When are these reset?
- How well are they communicated to tenants, leaseholders, frontline staff, local authority partners, contractors and other stakeholders?
- Are you achieving your key targets? How does the board know?
- Do you have plans to get back on track where targets are slipping?
- How are you doing against other organisations? How do you know? Are you testing yourselves against the best?
- How are competing priorities managed? Do you look after existing tenants properly or chase new business harder?
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