Social Landlords in Scotland: Shaping up for improvement

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Social Landlords in Scotland: Shaping up for improvement.understand the underpinning assumptions and what changes in thoseassumptions might mean for their organisation. We are particularlyconcerned about the state of business planning in some RSLs that aredeveloping new houses through millions of pounds of public subsidy and byraising private finance. We will be providing more information about our workon business plans and guidance for the sector in the coming months.41
Social Landlords in Scotland: Shaping up for improvement.7. RSL GovernanceGovernance expectations7.1 More than 2,000 volunteers currently serve on the governing bodies of RSLsand around 45% of these are tenants. Individually they often commit a hugeamount of time to their duties and, in many cases, to the additionalresponsibilities placed on them as charitable trustees. We promote goodgovernance through our Regulatory Code of Governance, summarised in box1 below. The vital ingredients for successful governing bodies can besummarised as having a good chairperson, a solid understanding of the roleof the governing body, enough of a grasp of the business to focus on thestrategic and longer term issues, and independent thinkers who are willing toconstructively challenge and act as a critical friend with senior officers.Box 1: Good governance means:• focusing on the RSL’s purpose and outcomes for tenants and service users;• governing body and senior officers work together effectively in clearlydefined functions and roles;• promoting good values and demonstrating them through behaviours;• taking informed transparent decisions and managing risk;• developing capacity and capabilities; and• working with stakeholders and being accountable.Regulatory Code of Governance 2006Governance performance7.2 The quality of governance in the sector is variable. Some governing bodiesare excellent, with a clear understanding of what their role is and how thisdiffers and complements that of their senior officers. However, othergoverning bodies have only a basic grasp of their role or become embroiled inlow level operational issues, leaving their organisations to be led by theirsenior officers. If an RSL has a good governing body it will often be a goodorganisation. We also know that an RSL with a poor governing body can stilldeliver good services for tenants, if staff perform well. But a poor governingbody puts an RSL at much greater risk of being unable to cope effectively42
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Social Landlords in Scotland: Shaping up for improvement

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