Origin Housing, the 7,000 central London registered provider celebrated its 100-year anniversary this year. This prominent date for some, however, was tinged with sadness, as this was also the year that Origin was due to merge with large national housing provider and placemaking business, Places for People (PFP).
Carol Carter, the Chief Executive of Origin Housing since 2017, had a great deal of empathy, however used this as an opportunity to open discussion – she highlighted to staff that when Origin started 100 years ago, their founders created innovative solutions to meet the desperate need for decent, affordable homes local communities. Over time Origin has adapted and grown, which has included developing impactful partnerships. Had they not evolved during that period, the organisation would not have reached that landmark birthday. This merger is the next stage of Origin’s evolution, to continue making a difference to people’s lives.
The trend of M&A in the housing sector is not retracting anytime soon. A CEO’s ability to build a future-ready leadership cadre and workforce, able to thrive in the new world, is now mission critical. Here are some top tips, including some leadership nuggets from sector leaders, like Carol, who have recently navigated their workforce through the choppy waters of M&A:
1. Consider that people connect differently with change
With the prospect of new workplace dynamics and team structures causing unease and uncertainty, staff will look to their leaders for confidence. They will seek to understand the ‘Why’, but much like motivation, leaders need to make provisions that people will have different drivers. Anita Khan, CEO of Tower Hamlets Community Homes (THCH) has earned her M&A leadership stripes of late, with their late stage curtailed merger talks with Poplar Harca, quickly replaced with an active merger dialogue with G15, Hyde Housing. Khan recognised quickly that some staff were purpose driven, some needed to be clearer on the business rationale, whilst others needed to know ‘what does this mean for me?’; communicating the ‘Why’, ‘What’, and ‘How’, is an ongoing process that requires repetition, authenticity and important consideration of the varied support needed, for people to move through the change.
2. Let Your Values Guide Your Actions – Customer is King!
Housing is typically a values-based career choice, so this notion is particularly important for staff. Whilst some will mourn the connectedness of a smaller organisation, the value for customers is often undeniable; the merger between PFP and Origin has meant that over the next 10 years, an extra £100 million will be invested into residents’ homes. Greg Reed, PFP CEO, describes not only the direct impact this has on customers’ lives by improving and maintaining homes to the best standard; but how the reach goes well beyond as “We will also support a wider range of services in local communities by recruiting, retaining and developing skilled and hardworking staff who know the area. In the longer term we will be looking to create community hubs and will be investing in ways that customers can have a stronger voice on things that matter to them most.”
Andy Hulme, CEO of Hyde Housing and proposed merger partner with THCH speaks of refurbishing some of their community spaces. Something which was understandably on the ‘nice to have’ list for cash strapped, THCH, but a critical task for Hyde and its contractors who all support Hyde’s social value commitment and will often volunteer time and resources to help communities. This, a notable and visible representation of the business case, filtering down to the customer.
3. Doing what you say you’re going to do
Even when sometimes it’s really difficult, Greg Reed talks of the importance of leaders being transparent and standing by their commitments.
Hyde’s Andy Hulme talks of the importance of being honest about what is working and what isn’t, in the pre-merger state: “Being clear on what the red lines are, and what success looks like”. Hyde have provided THCH with 12 commitments for the proposed organisation – ‘Tower Hamlets Community Homes – Powered by Hyde’. A recognition that the localised footprint of THCH is something to be celebrated and retained, but also that it’s not a sustainable model, without the horsepower that a G15 business like Hyde, can provide. Actions speak louder than words. Demonstrating accountability for promises made during the M&A process and maintaining integrity throughout builds credibility. When stakeholders witness consistency between words and actions, trust solidifies.
4. Lead with authenticity
Authentic leaders demonstrate openness and a degree of vulnerability in their communication; saying when they don’t have all the answers. Authentic leaders build trust by inviting the difficult questions and creating a safe space for people to ask. Carol Carter acknowledged how inevitable uncertainty could make people feel at Origin. She invited questions at their regular staff Q&A sessions, throughout the merger process. Likewise, Anita Khan’s ’Kitchen table’ all-colleague briefings enable staff at THCH to sit down regularly in an informal setting, often over food, and are invited to submit questions anonymously, or ask them in person. As a testament to the trust that has remained strong during a tricky period of change, people have opted to have these conversations openly. You cannot bring a team together if people do not trust the leaders in charge. It is better to be honest and open from the beginning of a merger, as opposed to selling a false reality to entice employees to feel optimistic.
5. Involve Employees in the Transition
Carol Carter informally recognised some of the change-makers at Origin and has leant on them to act as the temperature check for how people were feeling, as well as using their influence, where appropriate. Anita Khan was clear on not underestimating the value of personal contracts. In a high trust environment, taking time to be intentional with people about their role in the merger, what their intentions are for staying or otherwise, as well as what they can personally gain from the project experience. Some of THCH’s top talent have turned down opportunities and opted to stay, on the basis of wanting to see the merger through, to not let down their colleagues.
Tell staff as soon as you are legally able share information; tell them when you don’t know too. As Anita Khan says, in the absence of information, people will construct their own version of the truth which is often far worse than the reality.
6. Being clear on ‘what’s it in it for me’
As a necessary adjunct to the strategic business case for mergers, leaders need to put as much humanity into the process as possible. Being explicit about how working in a larger organisation can provide more career opportunities. Serving on an integration team helps employees build project management and analytical skills. And there’s no better way to learn about collaboration than by bringing together people from two different corporate cultures toward a common goal. As talent acquisition specialists, NSCG actively seek individuals with these skills, especially if employees can list specific accomplishments. Places for People have just launched a national training academy and have invested heavily in programmes to develop their leaders; opportunities that Origin staff will soon have access to, to continue their learning journeys.
7. Tell compelling stories
Did you know that stories are 15 times more memorable than data alone? NSCG leadership Consultant Lubna Haq, describes how we are hardwired to tell stories and enjoy the experience of hearing them. The limbic part of our brain drives behaviour; when we are engaging in a story, oxytocin is released – that feel good factor. Yet, we rely on factual information to drive change, often presenting figures that only 5% of the typical staff population will connect with and recall. In M&A, unless we engage with peoples’ feelings by using tactics such as storytelling as a vehicle, change takes much longer or doesn’t succeed at all. Whilst some people are natural story tellers, most of us need some support; the good news is, you can be taught the art of storytelling, so long as the content is authentic.
A merger is never simple for anyone – employees, executives, or HR. If you would like to know more about how New Street Consulting Group can work with your staff to build personal resilience, develop their storytelling and leadership skills to thrive during change, please contact Sarah Stevenson.