‘We Shall Overcome’: Realising the Power of Housing through Good Governance

David Mullins, University of BirminghamConference of the Isles, Derry November 2013

Why Good Governance Matters

Governance & Collective Power

Governance and Historic Mission

Source: Non-Profit Housing Organisations in Ireland , North and South

Facing the Future: Building Confidence in Good Governance

I doubt whether transferring significant numbers of stock is doable. I don’t think they have the financial resources or strength of governance, but they could prove us wrong’

Donald Hoodless –quoted in Inside Housing Nov 20 2013

What is Governance?

Governance and Hybridity

Beyond a centralised model of governing

Towards model based on ‘active citizen’, participation and partnership

Globalisation

“Hollowing out of the State” (Rhodes, 1997)

Concerns around ‘democratic deficit’

Hybrid mixing of state, market and community governance forms▪ Networks▪ Hierarchies▪ Markets

Public

Third

PrivateHousing associations – “hybrid bodies”

• Voluntary governing bodies – community links

• Taking decisions in the public interest

• Borrowing from ‘private’ lending institutions

Corporate Governance

“the system by which companies are run” (Cadbury Report, 1992)

• “Giving overall direction to the enterprise, ensuring the internal accountability of management to the board, and with meeting the requirements of external accountability and regulation” (Greer and Hoggett, 1997)

• Concerns the board of directors and relations with executive but is distinct from management

• Since the 1990s, HAs have embraced what has been described as a ‘whole new science’ of corporate governance (McDermont 2010)

Principles of Good Governance Cadbury 1992 Greenbury 1995; Nolan 1996 Hampel 1998; Turnbull 1999; Higgs 2003 Smith 2003; UK Corporate

Governance Code 2010

NICVA 2008 NHF 2010

Probity Loyalty & Conflicts of

Interest Remuneration & Personal

Benefit Integrity & Honesty, Bribery Respect Size & structure Succession & Recruitment Leadership &Skills Objectivity Openness &

Accountabilities

International Research on Corporate Governance

Paradox Partnering or Control? Conformance or

Performance? Representation of Interests

or Professional skills? Business Efficiency or

Community Accountability

Central Control or Local Autonomy in Groups

Evolution to Fit Context and Purpose

Northern Ireland : Evolving Context

Social Housing Reform Programme NIHE Future Structures

Regulation and Inspection. NIAO & DSD reports

Reductions in HAG Procurement Mergers and

partnership working New forms of

financing Welfare Reform

Previous Studies

Mackay, C., Dawson, H. and Williamson, A. (1999) Training and Development Needs of Board Members of Housing Associations in Northern Ireland: a report of a research project. University of Ulster, Centre for Voluntary Action Studies: Coleraine.

Mullins, D., Rhodes, M, L., & Williamson, A (2003). Non-Profit Housing organisations in Ireland, North and South. Belfast: NIHE.

Independent Study of Housing Association Governing

Arrangements in Northern Ireland

Peter Shanks –University of UlsterDavid Mullins – University of

Birmingham

Aims and Objectives

Independent Study undertaken with HA Sector in NI

Incorporate learning on corporate governance in housing and other third sector fields in UK and internationally

Summarise key conclusions on what defines ‘good governance’ in the context of NI housing sector;

Update knowledge on profile of board membership, and size and operation of boards (including the roles of chairs & committees) – last NI Survey 1999 Recruitment and selection of new committee members Debate on board member payment; Decision making and dealing with dissension and conflict

Reflect on the evidence and promote debate in sector to improve performance– share good practice and get the Structures Right to Face the Future

Methods

International Literature review Scoping stakeholder interviews Surveys of housing association chief

executives and governing body members Case Studies

Issues Papers (Spring/Summer 2014) Debate and engagement of key

stakeholders

Final Report (November/December 2014)

Participative Approach: Forums to Review Findings – Spring & Autumn 2014

Forum 1 Who Governs? –composition of boards, mix, skills, representativeness, recruitment and succession implications and training needs;

Forum 2 How do we Govern? –board decision processes, relations between executive and non-executive directors, CEO/Chair axis, conformance or performance?, external accountabilities to government, funders and residents and communities;

Forum 3 What do we govern? key functions of boards and sub-committees, financial compliance, new development, housing management and community and resident relationships;

Forum 4 Where do we go next? – distil recommendations and engage with stakeholders to improve future governance performance.

Themes from Scoping Interviews

Overarching Themes Regulation Social Housing

Reform Programme Independence Voluntarism versus

Professionalism Attitudes to

governance Accountability to

tenants

Themes from Scoping Interviews

Operational Themes

Dynamics and Operation of the Board Group Structures

Recruitment, renewal and retention

Composition Skills and Diversity

Role of the Chair & Sub-committees

Remuneration Approaches to risk taking Board member appraisals

Motives Matter!

Themes from Scoping Interviews

Other related themes

Trust and ethics

Opportunities for Mutual Learning

Training and Development

March on Washington for Jobs and Freedom,"

August 1963Photograph by Abbie Rowe

National Park Service Photograph

Through Good Governance …. ‘we shall overcome’…..

Social divisions and gaps in welfare net

Skill up for social enterprise model

Respond to public scrutiny and control

Maintain independence

Provide Confidence to Private Funders Meaningful Community & Tenant

Engagement

Effective management of hybrid businesses

From Conformance to Performance

Derry wins City of Culture