Michael Appleby looks for clues about the transformation of the housing sector.
The sector is currently on a trajectory of significant change. Changes in Welsh and central government policy, funding, macro-economic trends and customer expectations are all conspiring to create significant pressures which will test existing operating models like never before.
But if you take a step back and look at the sector right now, the way organisations currently operate has largely been the same for the last 10, 15 or even more years.
Yes, we have seen some examples of organisations who have embraced technology and implemented digital services. And yes, we have seen some forays into mobile working, innovation in areas such as wearable technology and drones. But by and large the way the sector operates hasn’t changed much.
To be fair, the environment hasn’t really called for it either. Stable income streams and limited competition, aren’t key drivers for innovation. The sector has also been subjected to a regulatory regime which promotes consistency and caution, rather than difference and entrepreneurialism.
However, that could all be beginning to change. In our recent research series entitled Future gazing, Future shaping we wanted to understand, what people thought the housing provider of 2025 would look like and how individual organisations were currently approaching transformation activities.
Within our series, we also pointed out that other sectors (e.g. banking, estate agents, taxis, retail etc) have recently been through periods of radical change – largely caused by disruptive new entrants into the market. Prior to the new entrants (think Amazon, Uber, Purple Bricks etc) there was a general consensus that the status quo would have been maintained indefinitely.
As part of the series we therefore posed a number of ‘what if’ questions to stimulate debate and discussion. For example, ‘what if a customer could change their provider of housing management services at a click of a button (in the same way you can currently change utilities providers)’ or ‘what if an Air BnB style organisation entered the sector?’
Our research showed that there is a huge appetite in the sector to look to the future, challenge the status quo and fully consider what opportunities there are for innovation. And with the continuing need to deliver efficiencies, changing demands of customers, the likely move towards deregulation and increased potential for new entrants into the sector, we could be in for an interesting time.
Of those looking to implement a change programme, unsurprisingly digitalisation of services is one of the priority areas to focus on. But be aware that simply implementing a digital platform for interacting with customers isn’t the final answer. True transformation will require organisations to fundamentally review the way that they operate in all areas including the products and level of service provided to customers, the culture of the organisation, the processes used by staff etc. Technology will be an enabler to much of this change, rather than the ultimate goal of the change in itself.
The series also identified that transformation won’t be easy for the sector. Our research found that around a half of organisations stated that they don’t believe they have the skills available internally to drive their change programme forward. This chimes with other research we found which suggests that over the coming decade there will be a technology skills gap in the whole economy.
This poses a real risk to many in the sector – how will organisations ensure that they can attract and develop the skills they need to transform the way that the operate? This can be broadened out to a wider question around – how can organisations compete as attractive employers and meet the changing demands of Generations X, Y and Z?
None of this is easy and it will be a big challenge for the sector in the coming years. But at the core of any success will need to be strong focus on what your vision is as an organisation supported by strong leadership to drive through the required changes.
Also, don’t shy away from those difficult ‘what if…..’ questions.
Michael Appleby is a director of Altair, tel: 07545 314 749, email: michael.appleby@altairltd.co.uk. www.altairltd.co.uk