You are viewing 1 of your 1 free articles
Insights into a 64,000-home merger
Notting Hill and Genesis have just completed a large merger. Chief executive Kate Davies writes about how it all went
We just completed a merger. It took about a year, but now we are one I have a few insights to share:
1. Many wise people say a true merger is impossible – it’s just a pretty word for a takeover. But we committed to a merger of equals, and this is what we have done.
When people marry or set up home together it is not inevitable that one dominates. Today it is widely assumed in human relations that equality is possible, and we felt that was the right model for our new organisation.
We created a balanced team at the top (group and executive boards).
“We avoided the unfortunate and unfair ‘us and them’ labelling that we have seen in other mergers.”
When we consider an issue we bring the experience and viewpoints of both teams into the discussion and do the right thing.
We see all board members, employees and residents as committed, capable and competent people, and avoided the unfortunate and unfair “us and them” labelling that we have seen in other “mergers”.
2. Creating the right culture is key, and being open, honest and willing to confront difficulties has stood us in good stead.
We have negotiated and compromised to come to a fair and realistic position.
READ MORE
As our teams work together to create the new organisation, structures, policies etc, this approach will continue.
We are taking great care to consider how people feel – we want everyone to feel valued and looked after.
Clear, accurate communication; visible, caring managers; and a realistic pace of change has kept anxiety levels low.
3. We feel the amount of time and money spent on recruiting great people, training and retaining them was so significant that we had to do all we could to retain them before, during and after the merger.
We promised that redundancies, competitive interviews and having to apply for your own job would be kept as limited as possible.
We committed to no unnecessary change; when change must happen there will be full consultation.
Using natural turnover to reduce staff costs means people are encouraged to try new roles. While a very small number decided to leave, most have been willing to take up new positions, even if they are slightly different to before.
4. We had lots of consultation with tenants – way more than is strictly required. We also have 150 shareholders between us, and held lots of discussions with them.
There have been several staff meetings too, so everyone could appreciate what was happening and make their voices heard.
We had some protests.
Around 100 tenants from the two organisations were strongly opposed to merger, and we listened carefully to their issues.
“It felt a bit like an election campaign.”
Dissatisfaction with repairs was common, but there was also distrust and a feeling that they were under attack.
We gave reassurance, listened to what they said and prepared a ‘Residents Promise’ in response.
It felt a bit like an election campaign. While we had a manifesto – merger as a means to create more homes for people on lower incomes – we also listened to views and concerns that might not register in a steady-state organisation, and these views have already shaped the strategy of the new organisation.
5. Nobody, including me, really likes change (whatever they tell you).
We get comfortable doing our job (or renting our home) and enjoying close relationships with the people we know. Merger is change, and change is loss, and this is unsettling – even upsetting.
Recognising that adapting to new leaders, new ways of working and even a different office can be hard, so our approach has been to ask our staff to co-create the new organisation.
“Merger is change, and change is loss, and this is unsettling – even upsetting.”
Action teams will help to settle the accommodation strategy, design the operational model for housing, agree the staff promise etc.
6. While change is difficult, the best thing for me has been the injection of new resources. Meeting talented committee and board members, and terrific tenants and staff from the partner organisation has been very exciting.
New ideas and approaches are challenging my thinking and enriching our culture and experience. We now have twice as many homes and other assets.
We are forging new and stronger relationships with our key boroughs.
7. Overall, if I was going to advise anyone looking at a merger, I would say find a partner you can trust and work with. And then just go for it. It will be an interesting and rewarding experience, and you will be able to do more together than you can alone.
Being single can be fun, but most of us thrive on developing deep and meaningful relationships.
Merging has some tricky moments, but if you want a strong voice and the ability to do more you should give it serious consideration.
Kate Davies, chief executive, Notting Hill Genesis
- Kate Davies is speaking at Housing 2018. For more information go to CIHhousing.com
The Paper Trail: The Failure of Building Regulations
Read our in-depth investigation into how building regulations have changed over time and how this may have contributed to the Grenfell Tower fire:
