Business Transformation – Best Practices for
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Business Transformation Best Practices for Social and Affordable Housing Housing Partnerships Canada April 27th, 2015 Steve Pomeroy Focus Consulting Inc. Carleton University Centre for Urban Research and Education (CURE), Ottawa
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01
Business Transformation – Best Practices for Social and Affordable Housing
Housing Partnerships Canada April 27th, 2015 Steve Pomeroy
Focus Consulting Inc. &
Carleton University Centre for Urban Research and Education (CURE), Ottawa<br>
Housing Partnerships Canada April 27th, 2015 Steve Pomeroy
Focus Consulting Inc. &
Carleton University Centre for Urban Research and Education (CURE), Ottawa<br>
02
Research Team Centre for Urban Research and Education (CURE) Carleton University, Ottawa
Steve Pomeroy, Research Associate
Christopher Stoney, Associate Professor School of Public Policy and Administration and Director, CURE)
Nicholas Falvo PHD Candidate SPPA/CURE Focus Consulting Inc. 2015 2<br>
Steve Pomeroy, Research Associate
Christopher Stoney, Associate Professor School of Public Policy and Administration and Director, CURE)
Nicholas Falvo PHD Candidate SPPA/CURE Focus Consulting Inc. 2015 2<br>
03
Objectives of Research To draw on examples of innovative initiatives being implemented by providers and sector stakeholders to obtain a deeper understanding of the business transformation that is occurring in the Canadian housing sector.
[HPC Terms of Reference] Focus Consulting Inc. 2015 3<br>
[HPC Terms of Reference] Focus Consulting Inc. 2015 3<br>
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The research questions What do we mean by business transformation
What do we mean by “becoming more entrepreneurial and more business like
How do these phrases or concepts apply to the social sector
Is the label “social enterprise” being adopted?
Are social housing organization transforming or simply evolving? Focus Consulting Inc. 2015 4<br>
What do we mean by “becoming more entrepreneurial and more business like
How do these phrases or concepts apply to the social sector
Is the label “social enterprise” being adopted?
Are social housing organization transforming or simply evolving? Focus Consulting Inc. 2015 4<br>
05
Transformations? Research examined extent to which the following are transforming or evolving
Mission and values
Culture of organization
Business practices
Activities
Transforming or simply evolving/adapting? Focus Consulting Inc. 2015 5<br>
Mission and values
Culture of organization
Business practices
Activities
Transforming or simply evolving/adapting? Focus Consulting Inc. 2015 5<br>
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Approach Background literature review of business transformation in the social (housing) sector
Survey and outreach to identify potential case studies
Identify organizations that have implemented new practices and approaches
Identify how and why these organizations are adopting new approaches Focus Consulting Inc. 2015 6<br>
Survey and outreach to identify potential case studies
Identify organizations that have implemented new practices and approaches
Identify how and why these organizations are adopting new approaches Focus Consulting Inc. 2015 6<br>
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Literature review Concept of Hybrid organizations
merging social service goals with more disciplined business practice
Reduced dependence on public funding; increase revenue generating activity
“Rather than relying on state subsidies, these organizations use limited state support to lever private development capital and to pursue commercial profits for social ends” (Blessing, 2012)
Paul Tenant (CIH) – concept of “profit for purpose” Focus Consulting Inc. 2015 7<br>
merging social service goals with more disciplined business practice
Reduced dependence on public funding; increase revenue generating activity
“Rather than relying on state subsidies, these organizations use limited state support to lever private development capital and to pursue commercial profits for social ends” (Blessing, 2012)
Paul Tenant (CIH) – concept of “profit for purpose” Focus Consulting Inc. 2015 7<br>
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Literature review Social Enterprise
“A social enterprise is an organization or venture that achieves its primary social or environmental mission using business methods.…. Social enterprises build a more just, sustainable world by applying market-based strategies to today's social problems.”
Social Enterprise Alliance www.se-alliance.org/about_us.cfm
More commonly…the term [social enterprise] refers to the use of revenue-generating business-like activities to accomplish, at least in part, a socially beneficial end. Focus Consulting Inc. 2015 8<br>
“A social enterprise is an organization or venture that achieves its primary social or environmental mission using business methods.…. Social enterprises build a more just, sustainable world by applying market-based strategies to today's social problems.”
Social Enterprise Alliance www.se-alliance.org/about_us.cfm
More commonly…the term [social enterprise] refers to the use of revenue-generating business-like activities to accomplish, at least in part, a socially beneficial end. Focus Consulting Inc. 2015 8<br>
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Literature Review Constrains on transformation?
Legal and institutional framework currently in place in Canada (e.g. charitable and non-profit sector) is not necessarily conducive to facilitating and encouraging growth of social enterprise organizations.
“governments should modernize the organizational infrastructure that applies to social enterprise to better enable it to flourish” (Bridge and Corriveau 2009). Focus Consulting Inc. 2015 9<br>
Legal and institutional framework currently in place in Canada (e.g. charitable and non-profit sector) is not necessarily conducive to facilitating and encouraging growth of social enterprise organizations.
“governments should modernize the organizational infrastructure that applies to social enterprise to better enable it to flourish” (Bridge and Corriveau 2009). Focus Consulting Inc. 2015 9<br>
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Literature review Need to “open the box”
US Nguyen et al 2012
Distinguish between:
transformation within a housing organization, and
transformation of the housing system
Organization can transform, in isolation, but this can be brought to scale by transforming the system to enable and encourage organizations to evolve Focus Consulting Inc. 2015 10<br>
US Nguyen et al 2012
Distinguish between:
transformation within a housing organization, and
transformation of the housing system
Organization can transform, in isolation, but this can be brought to scale by transforming the system to enable and encourage organizations to evolve Focus Consulting Inc. 2015 10<br>
11
Literature review Type of strategy
Adapting Porter’s competitive strategy to Non-profit housing sector:
Non-profits generate revenues to reinvest in their mission, increase sector share, and sustain their mission by pursuing one or more of the strategic options identified
We use the framework to identify different types of strategies in social housing organizations Focus Consulting Inc. 2015 11<br>
Adapting Porter’s competitive strategy to Non-profit housing sector:
Non-profits generate revenues to reinvest in their mission, increase sector share, and sustain their mission by pursuing one or more of the strategic options identified
We use the framework to identify different types of strategies in social housing organizations Focus Consulting Inc. 2015 11<br>
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Literature review What does “more business-like” mean?
Collins - Good to great
Clarifies what it means to be more business-like
The language of greatness vs. business
Great organizations are an outcome of strong leadership, and of gathering the right people and expertise together and a disciplined approach focusing on being great at one thing. Focus Consulting Inc. 2015 12<br>
Collins - Good to great
Clarifies what it means to be more business-like
The language of greatness vs. business
Great organizations are an outcome of strong leadership, and of gathering the right people and expertise together and a disciplined approach focusing on being great at one thing. Focus Consulting Inc. 2015 12<br>
13
Literature Review Does Culture have to change?
Re evolving into more entreprenurial organizations (Tonkiss and Passey):
it is essential that organizations clarify what their mission is
a better sense of strategic purpose is essential for determining and ultimately meeting objectives, but so too is a strong sense of shared values both within the organization and between the different stakeholders. Focus Consulting Inc. 2015 13<br>
Re evolving into more entreprenurial organizations (Tonkiss and Passey):
it is essential that organizations clarify what their mission is
a better sense of strategic purpose is essential for determining and ultimately meeting objectives, but so too is a strong sense of shared values both within the organization and between the different stakeholders. Focus Consulting Inc. 2015 13<br>
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The case studies Survey via national organizations (HPC, CHRA) and outreach to personal networks
Identified 31 organizations
Varying degrees of new activity – from minor (1/3) to significant (over 1/2)
Also identified some constraints on evolving into new activity (regulatory and funding) Focus Consulting Inc. 2015 14<br>
Identified 31 organizations
Varying degrees of new activity – from minor (1/3) to significant (over 1/2)
Also identified some constraints on evolving into new activity (regulatory and funding) Focus Consulting Inc. 2015 14<br>
15
Survey results Focus Consulting Inc. 2015 15<br>
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Survey results Focus Consulting Inc. 2015 16<br>
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Survey results Focus Consulting Inc. 2015 17<br>
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Selected case studies Ten cases selected for review
National cross-section, covering the range of activities identified in survey
A. Expanding activities into new areas of business (7)
B. Scaling up operations (4)
Strategically managing and leveraging assets (5)
Enabling through policy change (2)
(Note some involved in more that one type of new activity) Focus Consulting Inc. 2015 18<br>
National cross-section, covering the range of activities identified in survey
A. Expanding activities into new areas of business (7)
B. Scaling up operations (4)
Strategically managing and leveraging assets (5)
Enabling through policy change (2)
(Note some involved in more that one type of new activity) Focus Consulting Inc. 2015 18<br>
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Selected case studies Focus Consulting Inc. 2015 19 1: AFFORDABLE HOUSING SOCIETY, VANCOUVER
2: ENABLING SYSTEM CHANGE THROUGH POLICY REFORM – BC HOUSING
3: CENTRETOWN CITIZENS OTTAWA CORPORATION (CCOC)
4: HOUSING ALTERNATIVES INC. (SAINT JOHN, NB)
5: MANITOBA HOUSING
6: WOOD BUFFALO HOUSING & DEVELOPMENT CORPORATION, FORT MCMURRAY ALBERTA
7: SOCIÉTÉ D’HABITATION ET DE DÉVELOPPEMENT DE MONTRÉAL (SHDM).
8: EDMONTON CAPITAL REGION HOUSING CORPORATION
9: M'AKOLA GROUP OF SOCIETIES, VICTORIA
10 ATIRA WOMEN’S RESOURCE CENTRE, VANCOUVER, BC<br>
2: ENABLING SYSTEM CHANGE THROUGH POLICY REFORM – BC HOUSING
3: CENTRETOWN CITIZENS OTTAWA CORPORATION (CCOC)
4: HOUSING ALTERNATIVES INC. (SAINT JOHN, NB)
5: MANITOBA HOUSING
6: WOOD BUFFALO HOUSING & DEVELOPMENT CORPORATION, FORT MCMURRAY ALBERTA
7: SOCIÉTÉ D’HABITATION ET DE DÉVELOPPEMENT DE MONTRÉAL (SHDM).
8: EDMONTON CAPITAL REGION HOUSING CORPORATION
9: M'AKOLA GROUP OF SOCIETIES, VICTORIA
10 ATIRA WOMEN’S RESOURCE CENTRE, VANCOUVER, BC<br>
20
Case study content Summary quotes
Context
Type of new business activity
Culture of Organization
Governance and leadership
Managing associated risks
Staff skills and recruiting
(nb collins – get the right people) Focus Consulting Inc. 2015 20<br>
Context
Type of new business activity
Culture of Organization
Governance and leadership
Managing associated risks
Staff skills and recruiting
(nb collins – get the right people) Focus Consulting Inc. 2015 20<br>
21
Case Study Findings All strategic, purposeful
Inward looking (survival) vs. competing
(re realities of limited public funding)
Collaborative (e.g. selling services within sector)
Key influence of leadership Focus Consulting Inc. 2015 21<br>
Inward looking (survival) vs. competing
(re realities of limited public funding)
Collaborative (e.g. selling services within sector)
Key influence of leadership Focus Consulting Inc. 2015 21<br>
22
Case Study Findings Four types of strategies
Cost efficiency and growth
Levering core competencies (Commodification)
Innovation and enterprise
Enabling and facilitating Focus Consulting Inc. 2015 22<br>
Cost efficiency and growth
Levering core competencies (Commodification)
Innovation and enterprise
Enabling and facilitating Focus Consulting Inc. 2015 22<br>
23
Cost efficiency and growth Affordable Housing Society (BC) M’akola Group (BC) Manitoba Housing, Wood Buffalo (AB)
Strong internal discipline, focus on efficiency
Recognizing benefits of gradual strategic growth Focus Consulting Inc. 2015 23<br>
Strong internal discipline, focus on efficiency
Recognizing benefits of gradual strategic growth Focus Consulting Inc. 2015 23<br>
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Levering Core Competencies CCOC (Ottawa), M’akola (BC), SHDM (Que)
development consulting
Atira (BC)
property management tenants services
CRHC (Edmonton)
Financial, back-office services, Focus Consulting Inc. 2015 24<br>
development consulting
Atira (BC)
property management tenants services
CRHC (Edmonton)
Financial, back-office services, Focus Consulting Inc. 2015 24<br>
25
Innovation and Enterprise Atira (BC), SHDM (Quebec), CRHC (Edmonton). Housing Alternatives NB)
New design approach (containers),
For profit, market ownership products
Strategic investment of reserves to create leverage capacity
New Financing models (CRHC) Focus Consulting Inc. 2015 25<br>
New design approach (containers),
For profit, market ownership products
Strategic investment of reserves to create leverage capacity
New Financing models (CRHC) Focus Consulting Inc. 2015 25<br>
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Enabling and Facilitating BC Housing, Manitoba Housing
Provincial funders/regulators
Power to reform the system to enable different outcomes among providers
Access to use/lever assets
Create and enable efficiencies Focus Consulting Inc. 2015 26<br>
Provincial funders/regulators
Power to reform the system to enable different outcomes among providers
Access to use/lever assets
Create and enable efficiencies Focus Consulting Inc. 2015 26<br>
27
Basis for success Clear purposeful strategy to guide activities
Critical role of Leadership
Supportive board and sound governance of risk
Retain core values and mission (culture)
Recruit hire appropriate (new) skill sets)
Funder regulators – can enables; but can also create barriers Focus Consulting Inc. 2015 27<br>
Critical role of Leadership
Supportive board and sound governance of risk
Retain core values and mission (culture)
Recruit hire appropriate (new) skill sets)
Funder regulators – can enables; but can also create barriers Focus Consulting Inc. 2015 27<br>
28
Conclusions Some evidence of organization change, but most quite modest
Broadening and augmenting traditional roles, rather than fundamental shift,
Increasing efforts to become more self sufficient (limits of public funding)
To date EOA not really a key driver
Some policy and regulatory constraints
Key role for funder/enablers to enable Focus Consulting Inc. 2015 28<br>
Broadening and augmenting traditional roles, rather than fundamental shift,
Increasing efforts to become more self sufficient (limits of public funding)
To date EOA not really a key driver
Some policy and regulatory constraints
Key role for funder/enablers to enable Focus Consulting Inc. 2015 28<br>
29
conclusions Cases may not be representative – these are the more progressive leaders
To be sustainable and effective requires scale and professionalism
Without scale and it is hard to develop and retain the type of leadership and critical supporting expertise that is needed to help transform more organizations in this sector from good (or merely mediocre) to great. Focus Consulting Inc. 2015 29<br>
To be sustainable and effective requires scale and professionalism
Without scale and it is hard to develop and retain the type of leadership and critical supporting expertise that is needed to help transform more organizations in this sector from good (or merely mediocre) to great. Focus Consulting Inc. 2015 29<br>
30
Next steps Complete any revisions
Required changes?
Title?
Dissemination of report
Share with contributors
Dissemination strategy
Potential to use cases as standalone Focus Consulting Inc. 2015 30<br>
Required changes?
Title?
Dissemination of report
Share with contributors
Dissemination strategy
Potential to use cases as standalone Focus Consulting Inc. 2015 30<br>
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Thank you! 31 Focus Consulting Inc. 2015<br>