ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Expert opinion

As austerity bites, housing association board members must rise to new challenges

Linked InTwitterFacebookeCard
Expert opinion

Reductions in government funding mean housing associations have to look to a wider range of activities to offset lost income. Housing has changed, the rule book is being rewritten and organisations’ boards are required to be dynamic, more prepared to take risks and find new ways to fund developments.

But do board members have the experience, skills and confidence to challenge executive decisions?

Do they have members with commercial experience and business skills - the confidence to challenge a chief executive who is getting carried away by the excitement of a new venture?

Boards need to attract new talent and empower their non-executive members if they are to be up for the challenge.

A cautionary note: NHS boards faced a similar challenge under the previous government and so a big recruitment campaign resulted in a dramatic change in the make-up of hospital boards to reflect the need for people with commercial and business backgrounds as well as a good grasp of finance.

These new members are confident, able and comfortable with the idea of working with the private sector. It is no coincidence that the average tenure of a chief executive has become a lot shorter.

If you strengthen the board, do you automatically weaken the senior management team? Say it quietly, but in the past it was more likely to be the chief executive and the executive directors who called the shots, and a tame chair kept a group of compliant ‘worthies’ in line.

As long as the organisation was financially solvent, then the board was happy. The role of non-executive directors has changed. Government funding no longer guarantees financial stability, tenants and residents are no longer considered passive recipients of a service, and social landlords are expected to be a positive influence within the community.

The job of a board member has become more complex, and as new members are recruited with the experience, skills and time to fulfil this more demanding role, the relationship with the chief executive and senior managers undergoes a shift in power.

Once you have a board that is up for the challenge, you may find they don’t think the chief executive and senior managers are.

Recent scandals in the NHS and the response to them illustrate that non-executive directors are expected to take a more active role for instance in examining for themselves the impact of staffing cuts on the quality of care. Coming from the private sector these new board members may have a different view on attracting income, doing deals with the private sector and investing in technology. They may have a different view on risk management and reputation management. One thing we do know from the NHS experience is that they expect to have a say. We also know what happens when these non-executive board members feel the relationship between the chair and the chief executive is too cosy - they turn whistleblower.

Blair McPherson is a former director of community services at Lancashire Council. He is an author and blogger on the public sector

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.