Why Housing Management Systems implementations go wrong!

Author: Dave Loudon , Digital Bark

Contributors: Geraint Jones Jo Leckie 🌟 (Assoc CIPD, Cert CIH) Wayne Donaldson Stewart Davison MSc Chris Roberts Clare Paterson Karen Houston

After many years of both procuring and implementing systems for social housing landlords you learn a thing or two. 

So, I wanted to write an honest account of what we see in the sector when it comes to implementing systems. There are too many examples of poor procurements and just as many examples where they just haven’t delivered technically, operationally, and financially. 

The idea for this article came from a WhatsApp conversation with the Digital Bark friends (#DBfriends), a group of very experienced professionals in the social housing sector who work together to debate the issues we face and where possible bring awareness and to deliver solutions.

The discussion that prompted this article was in reference to a specific landlord who has spent nearly two million pounds over budget and are more than three years into implementing a very well-known supplier’s system. That is arguably two million pounds of tenant’s money. Imagine trying to justify that to the board. 

This isn’t the only case. There are others who are struggling. Some are worse and some seem to never be able to get there. Some have even scrapped their systems project altogether.  

So, what are the issues, what are the blockers? Is it strategy? Is it management? Is it resource? Is it expertise? Is it culture? 

Or is it the supplier? Are they simply failing to deliver to implement? Have they miss-sold? Are they lacking expertise? Are they lacking resource? Are they doing too many implementations, and you are the smaller implementation, and dropping in priority? 

The answer is yes. In different measures, it is all of the above and more. Simply put, these large systems transformations are not treated with the respect they deserve. They are assumed to be as simple as sign a contract, configure the new system, get your data in, do a little bit of testing, and then carry out some training. Voila! There you go! 

Err, no! They may be milestones, but each has a great deal more to it than first meets the eye. 

It is of course not all doom and gloom, there are many that successfully go through a systems transformation project and have implemented on time and within budget. It would be a rather boring article if we just talked about these. Our purpose therefore is to look at the lessons learned from the ones who struggle.  

Let’s start at the very beginning. 

Your current supplier is simply rubbish. You've had enough. They have not invested in their product that much. In fact, they have tried a new product but that was scrapped. They take forever to respond through their so-called helpdesk, and you can forget any change requests. Oh, and your account manager doesn’t love you anymore. Why? Because they have gone elsewhere. Sound familiar? 

This kind of sets the scene for you to look at what options you have. Do you talk to your incumbent supplier and see if the situation can be rescued? Do you start looking at the alternatives? How do you evaluate what procurement route is best? How do you scope your requirements? Do you go to a big event like #Housing2024 and see all the beautiful stands and the big screens showing you the latest and greatest housing systems? Help! What do we do? We asked our #DBFriend Karen Houston , a well-known procurement expert where she sees some common mistakes. 

PROCUREMENT  

Karen tells us:

Poor procurement doesn’t happen if you engage the right people, at the right time and sometimes (most of the time!) with a lot of honesty! Procurement, often seen as a process that doesn’t allow for innovation; takes too long; “won’t give me the outcome I want”; and probably every other reason you can imagine I’ve heard to just appoint someone directly ……..but guess what? Time invested front end will save an awful lot of heartache and a lot of (hidden) costs and contractual mischief further down the line.

So let’s advocate “excellent purchasing” instead.

 Let’s re-imagine the scenarios set out above and some ways to get better outcomes and avoid the common mistakes we often see:-

• Our current suppliers service isn’t up to par – what par are we comparing against? Issue a PIN and actively engage with a wide spectrum of the market to investigate the “what is possible” – reliance on a salesperson telling you they’re the best and you won’t get better is frankly derisory….especially as they take a pay rise and move to that competitor a year later
• Their lack of investment means we’re lagging behind for ease of reporting and ability to make decisions based on excellent data – what data should our system be giving us to accurately inform our decision making? Would it be worth making this an essential criteria of the system? Are we prepared to think outside the box to reach a more appropriate solution for our organisation? Is anyone willing to innovate with us? Data is King….it supports every conscious decision, them scrimping on their investment could cost you dearly. Think about the impact of failing to record accurate data as well – the Building Safety Act is just one legislative piece that sets out reporting requirements. (See Clare's further thinking on data further on).
• “ Oh, the monthly charges are MUCH higher than we anticipated compared with tendered rates” – future proofing is critical to prevent this……use whole life costing as standard; get the monthly costs alongside capital outlay  costs – where possible, engage someone who regular analyses price submissions as they will be able to spot omissions/questionable price strategies straight off and likely save you thousands and subsequent heartache
• They hooked the prize and they’ve moved on to woo their new sales target – make account management principles a KPI and set it out in your contract. Note YOUR contract. Be really smart with your performance measures and consider including things like “our willingness to advocate your company”…..nothing speaks more loudly than you telling people about your poor experience. Also see note above re moving to competitors…..
• “We are the ONLY supplier who does” – lies lies lies – I mean, why let the truth get in the way of a good marketing spiel…..trust is difficult to gain, how are you going to feel when you find out that not only is it not true, but also, you’re paying way over the odds for this sort of deceit? Which brings me neatly to…
• Contract Terms – do not accept supplier t’s and c’s, just don’t and if they say they won’t work under yours, say goodbye. Their terms are drafted entirely in their favour. Making acceptance if your terms in the entirety as a pass/fail criteria is wholly acceptable.

 Another thing I regularly see is suppliers telling clients a compliant procurement isn’t required. They usually omit to mention what the total contract value will be over the lifetime of the contract, instead focussing on the initial outlay. This isn’t good practice and I would urge people to think carefully before trying to avoid “a process” – sadly this is when we see most things going wrong as the upfront time isn’t given to really understand what it is you need. I’m sure at a point in the not too distant future, Digital Bark will look to set out the key features of the upcoming procurement reg changes and the positive impact they could have on mitigating some of the risks we’ve outlined here.

So, in short plan to purchase, don’t see procurement as a process,  but rather, the opportunity to get what you really want:-

• Plan – this is a big investment so the time and effort front end should be proportionate
• Engage – early market engagement; internal stakeholder engagement and peer engagement should be standard
• Define – what is essential to you and stick to your principles; Future proof where possible; don’t work in isolation….if this truly will be a transformation project, it deserves the time and engagement needed to deliver results – your scoping documents, pricing, contract etc are going to need significant investment. Draft a procurement strategy that will yield the results you deserve
• Procure – using all the tools available to you. A desktop exercise will not give appropriate assurances here. Consider what you might need (product demos; site visits; negotiation etc) and factor them in. Draft questions which really probe the realities of your requirements
• Mobilisation – A whole other discussion. However prioritise time within your planning phase to understand the various events & risks…..following are just some  of the elements of these “project pinch points” an effective and robust mobilisation plan is a critical success factor

Now that you have a plan to find a new system, you’re ready for the big ‘transformation’ project. Transformation is one of those over used words. It is wrongly interpreted as many say they are carrying out a transformation project only to install a new system, that in the end does not really transform anything. So, what makes it truly transformational? Our first hint here is to think of more than just the system and its set up. Think of the bigger picture.  

• Think of how you can do things easier, faster, with less fluff!  
• Think how you can streamline and gain efficiencies. 
• Think how you can use better data management to gain more insight and help decision making. 
• Think how you can make your staff happier. Seriously. How many of your users are p****d off with the current system and will be thinking, oh, here we go again, another IT project. 

Right, we have procured, and we have thought how the system can make a transformational difference. It’s going to change the world! 

But hold on, we still must implement the damn thing says one bright spark. 

Implementation, that’s the easy part, right? All we have to do is exactly what the supplier says in their super project plan. We’re sorted. 

Stop! It isn’t that easy. 

I have done so many implementations, each different in so many ways. There is no magic formula that fits all but there are some basics that make it so much easier. 

COMMUNICATION 

Any experienced project manager will tell you that communication is key in the success. They may also tell you that it is one of the areas that is often not seen as a key deliverable. Trust me it is so important. 

Don’t just take my word for it, here’s what Wayne Donaldson , our latest #DBFriend and an experienced housing system expert has to say. 

Wayne had this to add:  

'I have worked on around 8 implementations of an HMS. Each, as you pointed out above, have struggled for different reasons. However there has been some consistent issues throughout. The big one for me is communication. I mean this from different perspectives; communication between board and management, management and on the ground staff etc. communication between the business and professional services (IT, finance etc), communication between the organisation and the supplier. I could go on. Point here is that I believe with much clearer and transparent communication it would identify most of the technical, cultural, strategic (etc) problems.' 

 So, communication is key, we now know that, but what else needs focus.

Suppliers tend to break the major milestones of a systems implementation into blocks. These could be: 

• Kick-off, governance set up. 
• Initial set up, hosting, cloud set up, DB structures, initial data transfer and so on. 
• Understanding/build options/design. 
• Build and configuration. 
• More data transfers. 
• Testing, UAT 
• Training  
• Go-live. 

This may be your typical plan from a systems supplier, and they will provide a project plan. However, don’t just take this as all you need to do. There are other areas that you, the landlord need to get a grip of. Such projects are not just about the supplier doing their stuff. You have a job to do too.

`aszKNOWLEDGE & INFORMATION MANAGEMENT (KIM) - No not him.

The housing sector is, or should be, painfully aware of the many failings in service provision that are either due to poor records management, or made worse by poor records management, as highlighted by several Housing Ombudsman reports, especially their ‘Spotlight report on Knowledge & Information Management (KIM.’ 

Good solid prep makes a world of difference. Think of this project as your one and only opportunity to make changes, improvements in the way you work and handle your knowledge and information assets. The new system will help you realise this, but you have a job to do. 

Think of such things as: 

Letters, Emails, SMS management. Ensure you go through them all, look to tidy, get rid of duplicates, consolidate, update those out of date, change wording/language and so on. It’s a mini project in its own right. A systems supplier won’t do this for you. It is your responsibility.  Do this and you will see a marked improvement when you go-live. 

Re-structuring/classifications/structure are also an area you can get right or improve. Legacy systems, processes, simply history mean you may have your schemes, patches, blocks all structured in a way that could now be changed for the better and in line with up to date strategies. You could look at your chart of accounts, components, you name it. Simply put, this may be your opportunity to re-design for the future.  

Clare Paterson , author of “A Practical Guide to Data Protection in Social Housing” and a #DBFriend has this advice: 

Data Protection legislation is often seen as red-tape, to be avoided, or as being only about data security; both of these are inaccurate, and both lead to deeply embedded problems when implementing any new systems, which need to be unpicked, causing understandable frustration. The key is to get it right from the very earliest point of any implementation project. 

Which means starting by identifying both the purpose, and the lawfulness of that purpose, of all personal data that will be processed in the system. Contrary to what some software providers will tell you, there is no such thing as a “compliant system”, and there is no such thing as “compliant data”; there are only compliant purposes of processing. 

Mapping out the desired customer journey will help highlight what information is necessary for providing the expected customer experience. From here, each data processing activity should be assessed for lawfulness, and the outcomes recorded in the organisation’s Records of Processing Activities or RoPA. The RoPA has several uses, and being able to clarify data flows is particularly beneficial when implementing new systems.  

While much of the data or information assets held by housing providers are “Personal Data” (i.e. they are related to people, including customers, colleagues and the public), not all data is, but the principles we follow for processing personal data also lend themselves perfectly to the processing of any other important data, including building information, and financial information. The principles require data to be accurate, relevant, timely, available, and secure – all vital in housing management. 

WHAT ABOUT PROCESSES 

The process of how you manage and govern a project is vital. It is often overlooked as a necessary evil and almost forgotten about on occasion.  

 We asked Geraint Jones, head of IT for Adra Housing, and you guessed it a #DBFriend, where he thinks processes come into play for a systems implementation. 

'Before I came into housing, I worked for a major systems integrator building and delivering document management solutions for the pharmaceutical industry. You will not be surprised (and probably relieved to learn) that pharmaceutical companies demand quality at each step of the process something that puzzled me about housing.  

 When we go through a procurement exercise, we quite rightly hold workshops with the users, document a set of requirements and follow a rigorous selection process. Perfect so far, then we start the project. It is at this point things go wrong! 

 As highlighted previously a project will have a typical set of milestones and if you are following something like PRINCE you will be familiar with the typical project documentation, but do we truly run the technical implementation in this way?  

 In my experience, everything should be documented. These are some of the components I would typically expect:  

• Database design document 
• Architecture design 
• High Level Specification 
• Design Specification  
• Test documentation including a test plan, test scripts and cross references against the requirements. 
• PID, Risk Registers, Issues logs  

This not only protects the organisation, it protects the supplier. I’ve seen the output from the workshop documented in the consultants’ notebook and when what is delivered isn’t what the client thought they’d asked for, the fun starts! Much better for all when the term change request is used that you can point to the section in the documentation which was signed off with what you asked for originally. Better for both supplier and client. 

And Housing Associations don’t really understand the concept of testing. They do a bit here and there on top of the day job and if you don’t have a signed off specification how do you know what to test against and whether it’s right or wrong.  

Then what happens when you change your mind! Let’s face it, this is very likely to happen which hardly helps you get the project over the line.  

And if you make it this far and go-live, how can anyone truly support the system if there is no official documentation for what was built? And version control and change management is a whole topic in itself.  

So please before you choose the right supplier make sure they follow proper project methodology, asses them before you buy during the procurement, and suppliers, please make sure you build quality into your implementations every step of the way.' 

As well as the extremely important project documentation and processes mentioned above there are also the business processes and procedures, and their design, governance and application are critical to the successful operation of any landlord. My experience tells me that again, a project looking to implement a new housing management system is the ideal opportunity to look at your processes in light of perhaps updating and improving. 

Geraint continued:

Just to be clear, Housing Association staff all have a very different view of the business process, and all have their own opinions. I’ve sat in meetings where I felt like a referee. Please don’t try and get the new system to do exactly what the old system did and please suppliers, tell your client NO. Be prepared to simplify your process and don’t add complexity for the what if’s. Handle the exceptions by process or reporting if you have to, but never build into the software. Make sure you have the right people who can run the workshops and document the output to be signed off . Don’t ask the techy! Done properly you will simplify your processes, produce a solution that is easier to build and less frustrating to use. It’s little wonder users forget that on the 2nd Tuesday of every month with an ‘R’ in it, the process is different .

OTHER SYSTEMS 

We’ve been focusing on housing management systems in the main, but similar principles apply to other systems and projects. A popular option for some landlords has been Microsoft’s Dynamics. We are lucky to have a #DBFriend in @Chris Roberts an expert in this field within the sector, Chris gives us his thoughts below: 

'Let's be honest Dynamics implementations have also had good and bad news stories attached to them but how do they differ from old school HMS ones and what lessons have I learnt since I did my first one back in 2010. 

 The team have covered the core points above from Data to process and CX/UX and these are certainly key elements of a Dynamics implementation BUT Dynamics/PowerApps and more generally the PowerPlatform give you one thing that HM systems certainly don’t…CHOICE. You can engage with a Microsoft Partner, individual contractors or complete the work in house. You can even have a mix of all of them! Now there are obviously pros and cons to each option but it does mean you can make the most of a global workforce that will help keep implementation and ongoing costs down. With Microsoft’s low code push you can quickly deliver solutions to some big business challenges but like everything this comes with T&C’s. So how could you overcome some of these challenges? 

1. Have a clear Road map (that links to a strategy/core processes) – this will help demonstrate where you are trying to get to, who’ll be impacted and highlight any process cross over. 
2. Map your processes. 
3. Work out the fields and flows that enable you to achieve the process, the reporting around it and any automation.   
4. Identify the core data required and then the appropriate approach – Is a full fat dynamics module the way forward or would canvas or model driven apps be the way to go? You can even mix and match. But beware of licence implications! 
5. Decide whether to do the work in house, give it to a supplier or even a hybrid approach. 
6. Own your Intellectual Property (IP) – I’ve heard several stories in the sector about Microsoft Partners who implement a solution and then lock it down, preventing them from making any improvements or harnessing the choice mentioned before. It also ties you in to ongoing costs for any changes, essentially turning your modern Microsoft App into a housing management system. Check contracts at the start of the procurement process.  
7. Share war stories and solutions – I love the housing sector, but the one thing that makes it unique is the fact we’ll share pretty much any information on our processes/ways of work, make the most of that. But why stop there, The Power Platform enables you to build technical solutions that can actually be shared! Saving the sector some money and helping to speed up your implementation.  For example, the ombudsman is clear on how we should manage complaints so let's create and share these solutions rather than all pay for the same thing? '

THE CUSTOMER EXPERIENCE 

We’ve covered a great deal so far across housing management systems as well as Dynamics, but there is one and I would say the most important area to consider when implementing a new system, no matter the technology.

Many will expect it is data. It is obvious data is key to the success of any system implementation and use. Seems like everyone is talking about data, and that is a good thing. However, we’ll leave data to others for now. We’re talking about the #CustomerExperience, CX, and its significance as probably the number one consideration. 

Everything we do at Digital Bark has the customer (the tenant) at heart. Why wouldn’t we? The social housing sector is a service industry in my opinion. It is pure and simple, it is all about the customer, the tenant, but tell me this, how may projects to procure and implement systems seriously put the customer experience at the top of the agenda?   

Who better to ask than Jo Leckie 🌟 (Assoc CIPD, Cert CIH) , a #DBFriend who is without doubt one of the sectors real experts in Cx. So, we asked Jo what she thought when it comes to systems and Cx. 

She said: 

'When we think about digital transformation, we tend to think about the impact of new technology on improving the customer experience. However, research and practice show that customer service, the human interaction, is a key driver of customer satisfaction not technology alone.   

• Amazon Web Services found that the three main barriers to successful digital transformation were culture, skills and siloed organisations. 
• MIT found that changes such as business skills and customer service training, incentives and operating models had 15 times more impact on the likelihood of success in digitisation than pure changes in technology. 
• A McKinsey report in 2017 found that cultural and behavioural issues were the biggest single challenge in meeting digital priorities. 

So, whilst we may desire to simplify and improve the customer experience through digital transformation, the human interface is the driver of success both in terms of successful implementation and ultimately customer satisfaction.  

 It is essential that, when driving technological change and implementing new systems, organisations engage internal and external customers early, so that they appreciate “what’s in it for them”. My observation is that landlords tend to inform rather than engage when it comes to implementing new technology and the information piece comes too late in the process.'  

RESOURCES

Before I summarise some of the areas we have discussed in this paper, another #DBFriend who has extensive experience in the sector, a great deal of this from the supplier side itself. Stewart Davison MSc has many years experience and gives us some insight on one particular project.

Stewart says:  

Having been involved in many implementations of HMS as well as smaller systems, as both a supplier but also as a project team member the one constant I have seen as a deciding factor for success or failure has been in the constitution of the implementation team and the resources given to said team. The most successful project I have been involved in was a long time ago in the early days of my working in the sector. It was a large HMS, Asset management and project contractor with a large Unitary Authority. From the outset the Authority had made the right decisions. They constituted a blend of highly experienced officers from within the departments, with external colleagues, hired into the Authority, specifically to work on the implementation. We ended up with a team of about 12 initially that expanded to approx 15 over the life of the project. This included a dedicated training team whose sole purpose was to get all the staff ready for Go Live, but most importantly to be there for continued follow up training and support. Importantly this team was maintained, with slightly fewer team members, for a sizeable number of years after the Go Live to update skills and cement knowledge delivered during the implementation. 

This costs time and money and on too many occasions Housing organisations skimp on this or think they do not need anyone after Go Live. These are all dangerous fallacies and on most occasions lead to an inevitable decline in the effective use of the systems implemented and the dreaded refrain I have heard too  times in this sector, It isn’t fit for purpose“  Your HMS if well specified, solidly implemented and then supported throughout its lifespan should really last you 10-12 years and only really need replacing if your supplier isn’t looking after you or your strategic use of technology differs so far from what your current system(s) is using. 

I must admit I get frustrated when witnessing or hearing about systems implementations that have taken too long, cost too much, missed their objectives, or failed totally. It is frustrating as they are usually all preventable. We have highlighted some reasons as to the failures, and we have talked a little about how to perhaps look at preventing them. But one thing is for sure, landlords need to think long and hard before jumping into the journey of buying and implementing a new system. 

There is the homework and prep that needs to be done. Prerequisites are critical.

There is the resourcing to consider carefully. Please think carefully about your team, back-filling, temporary, consultancy.

Get your communications and project governance sorted from the start. Dot the i's.

Seek advice, don't be afraid to ask others.

Don't underestimate the work you need to look at with processes and procedures. 

I could go on, but in reality, a great deal is best practice, yet it is this best practice that is so often missed.  

There are obviously many other areas that can be improved and need focus. Data, interfaces, training, testing etc all need considerable focus, but again, hopefully this article makes you think a bit instead of giving you a comprehensive check list.

However, on top of everything, and it's my number one priority, always ensure you put the customer experience as the raison d'etre. It is why we have the systems in the first place, to help us provide effective and efficient services to the customer, the tenant. 

Thanks.

The #DBFriends are: