The rent cut has sparked a revolution in thinking

Change is all around us. The environment in which we operate has become increasingly complex, while daily life for our customers and communities is ever more challenging. So the time for tinkering is over – because doing more of the same, or even a little bit different, simply won’t cut it for the future.

It took a massive and damaging nudge from government to get us there. But the system shock of the 1% rent cut 18 months ago has now jump-started a revolution in thinking that we really needed.

It’s always existed in the private sector, where Darwin’s theory of survival of the fittest plays out with brutality every day.

“When I joined the housing sector 10 years ago I encountered great work, huge passion and yet a tendency for self-limiting mindsets.”

A survey by Inside Housing last month found that a staggering three-quarters of housing associations are embarking on or planning major change programmes. Business transformation is now the focus of the many, not just the few.

When I joined the housing sector 10 years ago I encountered great work, huge passion and yet a tendency for self-limiting mindsets and a culture reminiscent of 1990s local authorities. If we are brutally honest, we all know there was slack in the system. Yes, of course there were trailblazers like Bromford, Halton and L&Q challenging the accepted norms, but they were the exception – not the rule.

Today the prevailing mindset seems quite different, especially in the past year. I hear debate about shaping our own future and stretching ambition; we talk more about what we can do, and less about what government stops us doing. Dare I say we are more confident and optimistic?

And I sense we are starting to get beyond a binary, sterile, either/or ‘social or commercial’ debate to see profit as the rocket fuel that powers our purpose.

The ‘why’ need not (and should not) change – that grounds us and guides our decision-making. What we deliver will broadly be the same: homes to rent and own, support services, investment in communities.

Now we are seeing organisations embrace the idea that the ‘how’ we operate must change. They are challenging themselves not just to save money, but to be better businesses to do more of what we believe in.

So what does this means in practical terms? I see more and more organisations setting clear long-term ambitions, engaging their people and using technology to build momentum around integrated and planned change for the long term.

I inherited a fantastic organisation in Rooftop. But the implementation of a new housing management system from this summer will act as the catalyst for a two-year transformation programme to evolve our operating model.

“The first stage will see us cement our mission and values.”

Otherwise, all we will be doing is switching IT systems – a huge missed opportunity to step back and create an even more modern and dynamic business which can be fully confident about its future role and its ability to deliver for people and communities.

The first stage will see us cement our mission and values. Because where choices are made and decisions not always obvious, we will need a compass to guide us. We shall build the case for change and what it means from the bottom up, ensuring colleagues understand why and have a real ability to influence the future shape of the organisation.

While our end destination might be fairly radical and will absolutely be predicated on a step change in efficiency and impact, we will seek to evolve in a planned and sustained way over time.

We will aim to link projects and workstreams and ensure everything is geared against a common goal. Simplicity and focus will be critical – as will challenging existing thinking from a customer and user experience. We will fail in some things for sure. And no doubt learn a lot on the way.

It’s not easy. In fact, it’s really tough.

But make no mistake – for most of us, what has got us to where we are now won’t get us to where we want to go in the future.

Boris Worrall, chief executive, Rooftop Housing Group