Understanding decision-making in the housing association sector: the case of asset management

1. Understanding decision-making in the housing association sector: the case of asset management Francesca Albanese CRESR Sheffield Hallam University

2. Presentation outline Research aims and objectives The housing association sector in England Analysing decision-making Modelling decision-making Foucault, Clegg and relational power Case studies Research findings Conclusions

3. Research aims and objectives The study aims to investigate the decision-making behaviour of housing associations in low demand areas Using the context of asset management it explores: How useful are decision-making models in explaining decision-making behaviour within housing associations? To what extent can Foucault and Clegg’s relational notion of power be used as a tool to help understand the empirical processes of power involved in decision-making? How is knowledge and information used by housing associations within the decision-making process? To what extent are housing associations becoming ‘learning organisations’ in their approach to asset management?

4. The Housing Association Sector in England Just under 1,700 HA in England (67% 6-1000 units) Significant growth post 1974 but also greater exposure to risk (four fold increase since 1979) HA taken on more ‘residual’ and ‘difficult-to-let’ stock with greater risks Low demand issue in North and Midlands Increased competition for tenants across tenures Tension between social objectives vs. financial viability Need to assess their stock investment strategies

5. Asset Management Formal Asset management planning in England only appeared around 2000 (DETR 2000; Housing Corporation 2002) Definition of asset management: “the understanding and management of any existing or potential risk to those assets. Its is also about considering what will maintain or enhance the value of an asset by considering what work or investment in the housing stock is worthwhile” (Tait 2003: 5) Assets meaning land and property but also rental income Other work - Top-down, use of secondary sources (policy, strategy and regulation documents) Little attention to low demand areas

6. Modelling decision-making Theoretical gap in research which applies decision-making to public sector Political-bureaucratic model (Pettigrew 1973) Considers concept of power in relation to decision-making Political dimension of decision-making Behaviourist model (Cyert and March 1963) Examines knowledge stocks and streams in decision-making processes

7. Foucauldian Notion of Power Focus upon Foucault’s and Clegg’s notion of power Study analysed power in a social setting Staff roles and networks, organisational structures Foucault’s work: Looks at the way power functions within the everyday relations between people and institutions Power is multi-directional Questions ‘how power is exercised?’ rather than ‘what is power?’ Power cannot be possessed Inter-relationship of power/knowledge

8. Clegg and Relational Power Clegg aligns himself more closely with Machiavellian concept of power rather than Hobbesian view and the three dimensions of power Looks at what power does rather than what power is Understands power to be ‘relational’ Analogy of power is centred on ‘the rules of the game’ The process of power is looking at the way ‘the game is played’- skills and strategies of the different actors Shifts in power are dependent upon actors involved, their alliances and the relationships that are formed

9. Clegg’s Framework of Power

10. Case Studies 3 Case studies – 1 national, 2 regional HA Chosen to show variation in approaches to AM Magenta Housing Trust - Large regional HA ˜ 10,000 units Cyan Housing Association – Smaller regional HA ˜ 6,000 units Ochre Housing Group – National HA ˜ 55,000 units Qualitative methodology – semi-structured interviews and focus groups

11. Internal Circuits of Power Strategic decision-making Top-down approach in all 3 HA Issue of non-decision-making Operational decision-making Economic Significant weighting to decision-making and top-down approach Social Exertion of power from bottom up but low priority Anecdotal rather than qualitative variables in data sets Political Power exerted external – policy and regulation Large impact of HMRF and Decent Homes Standard Cross-cutting decisions Reliant upon other organisations Decisions not clear cut and choices have future strategic value

12. “Primarily at the end of the day what I see is it’s up to the Finance Director, if he says yes fine, if he says no forget it.” (Housing Services Manager, Cyan) “You can’t under estimate local knowledge, you can computerise until you’re blue in the face and that’s what I like because that’s my job. But I do understand that compared to local knowledge that’s leaps ahead when it’s capturing it and using it.” (Stock Investment Manager, Ochre)

13. Playing the internal decision-making game Each case study had a set of rules by which they ‘played’ the asset management game Tactics are used by HA staff Channelled through set of ‘obligatory passage points’: Information Understanding of asset management Intra-organisational conflict New exertion of power (resistance) disturbs ‘field of force’ and re-fixes routes of power changing the ‘rules of the game’ Battles are fought over decisions and the power circuits will continually change: New staff Transforming organisational culture Available funding streams Governance structures

14. Conclusions How useful are decision-making models in explaining decision-making behaviour within housing associations? Rigid framework – use concepts of power and knowledge instead Suggests that all levels and types of DM are underpinned by power To what extent can Foucault and Clegg’s relational notion of power be used as a tool to help understand the empirical processes of power involved in decision-making? Power complex and elusive – challenge for empirical investigation Relational based framework enables power to be traced by examining activities and processes Found evidence of resistance Clegg’s framework highlights power is continually shifting However ‘multi-directional’ doesn’t translate to top down approach

15. Decision-making under different market conditions or different area of HA policy Consider gender, BME issues Role of tenant empowerment in decision-making techniques Scope for future work: