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TSM takeaway 4: locally focused operating models

  • Writer: Phil McCavish
    Phil McCavish
  • May 19
  • 2 min read

Our Insights Report on the the latest Tenant Satisfaction Measures (TSM) data published by the Regulator of Social Housing (RSH) to identified five recommendations to focus improvement activities.





Download the one page summary:


Recommendation 4 — locally focused operating models


The challenge

Larger housing associations deliver consistently worse tenant outcomes, and London is penalised further still. Current operating models often fail to capture the benefits of scale without losing local accountability.


The evidence

•  50,000+ homes: 63.4% TP01 vs 75.0% for <5,000 homes.

•  London median TP01: 58.7% vs North: 76.4% — an 18pt gap.

•  Top performers typically manage <10,000 homes regionally.


Why it matters

Without a deliberate operating-model response, scale and geography will continue to drag TP01 down. Recovering local delivery benefits while retaining scale efficiencies closes the gap to smaller peers.


What good looks like

  • Clear distinction between what activities are best delivered centrally and what activities should be delivered locally.

  • Regional teams with real accountability and decision rights, not just delivery.

  • Bespoke investment and service model for London and other high-challenge areas.

  • Tenant-facing staff visible, known and trusted within their patch.

  • Centralised service delivery is minimised unless there is a significant benefit in doing so.

  • A clear understanding of where and how the organisation adds value in the geography and services that it provides.


Recommended actions

  1. Design a target operating model that leverages scale where it adds significant value and localises everything else.

  2. Develop a clear understanding of the implications and costs of complexity.

  3. Establish regional accountability for tenant outcomes, not just cost.

  4. Benchmark regional performance against best in class comparators.

  5. For London, invest disproportionately in stock condition and tenant engagement.


Enablers and watch-outs

  • No single 'right' model — design for your context.

  • Central functions must become enablers, not controllers.

  • Regionalisation without accountability creates duplication.

  • Beware of the ‘centralisation bias’ of functional leaders.

 
 
 

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