Rudderless RICS urged to reform after crisis

In the aftermath of a damning report by Alison Levitt QC into a governance row at the RICS, interim chair of governing council Nick Maclean’s schedule has been packed with video calls. One such meeting, a Zoom call hosted by Maclean late on 14 September and attended by some 15 past presidents, lasted “well over an hour”. “The past presidents on the call were overall very supportive of the changes and of Nick Maclean and his team,” past president Simon Pott tells EG. “We are unanimously prepared to be involved in the process of putting RICS back on the straight and narrow. There is a real will to help. “This is an extraordinary opportunity. Most professional bodies don’t have this opportunity – to assess what must be done to put it in a position where it is fit for purpose.” Like its past presidents, the wider real estate industry is keen for the RICS to move past what one sector boss labels “a total sh*tshow”, since revelations emerged that four non-executive directors had been fired after they criticised the handling of an internal report. Now, with Levitt’s report made public, chief executive Sean Tompkins, president Kathleen Fontana, governing council chair Chris Brooke and chair of the management board Paul Marcuse are all stepping down. “The non-executive directors have gone through the mill,” says the real estate executive. “The right scalps have gone to rectify the situation, but they didn’t half make a mountain out of a molehill.” New vision George Roberts, head of UK and Ireland at Cushman & Wakefield and chair of the Property Advisors Forum (previously the Windsor Group), says he welcomed Levitt’s findings and “the open approach the RICS has taken in publishing the recommendations in full, in acknowledging shortcomings and, most importantly, the imperative for change”. “The key now is for RICS to move fast to put right issues highlighted and, most importantly, in defining a compelling vision for its influence in the built environment,” he says. “The vision must be matched by clear and accountable, measurable outcomes.” This sentiment is echoed by the NEDs at the heart of the scandal. “The prolonged period since our termination has been very difficult and worrying, both personally and professionally,” they said in a statement shared with EG last week. “We are pleased that the issues about which we first raised concerns in 2019 have now been accepted by the institution and that it has committed to making far-reaching reforms to re-establish trust. “We are hopeful that in adopting and implementing Alison Levitt’s positive recommendations, the RICS will be strengthened in the future to operate in the very best interests of the public it was created to serve.” Calls for an influential frontman Levitt has recommended a “retired civil servant of impeccable reputation” to lead a fresh external review into the RICS’ governance and purpose. The organisation itself also needs new leadership, which the industry hopes will be a major industry player. Suggestions for a potential candidate in guiding its future have ranged from the likes of former chancellor Philip Hammond – as an example of a person whose voice is heard by government – to Levitt herself. Pott points out that the latter “now probably knows the RICS better than anyone”. During their call with Maclean, the past presidents emphasised how important it is for him not to rush the recruitment process. “Rome was not built in a day,” says Pott, who adds that the RICS should be run by people with senior roles at their own firms with “detailed” knowledge of the organisation. Such individuals should “make themselves available for a role on governing council and to hold it to account, to be in charge of the process of delivering a modern RICS that’s fit for purpose,” he says. Not everyone agrees with this perspective. One industry chief says the RICS needs “someone young and energetic – more future-minded, not ‘ye olde’ style”. Either way, industry figures are eager to see new representation on the governing council. “There is an enormous amount [governing council] needs to do to rectify this horrid episode in RICS’ history; they need to allow a new, accountable group to step up with full membership support,” says a source close to the situation. Tapping a ‘reservoir’ of expertise With the past presidents possessing an “amazing reservoir of knowledge” on RICS’ issues, Pott also suggests it could select a team of around three people to serve as a “touchstone” for the next leadership team. “The new structure has to be fully co-ordinated,” adds Pott. “It can’t be that different bits of the structure work autonomously – it must be approached as a whole. [And] the president can’t hold just an ambassadorial role, as it appears to have become.” While many of the individuals culpable for the events in 2018 and 2019 are leaving RICS, Maclean and his team are facing pressure to make any further necessary cuts swiftly and ruthlessly to enable a fresh start. “Things have gone wrong, RICS has become slack and bloated,” says Pott. “Such was the level of control at RICS that it was not something we could break through in recent times to get to where the problem lay. “Some of those people involved have gone, and there may well be others. I say if you’re going to cut, cut hard and then start to build the organisation back up again. There’s no point in death by a thousand cuts.” Rebuilding relevance Notwithstanding the huge tasks of replenishing the bench, establishing an efficient governance structure, instilling a new internal culture and repairing the RICS’ reputation, the organisation’s new leadership must deal with the plethora of outstanding issues produced by the existing regime. Transparency over finances, particularly where membership fees are channelled, remains a concern. Another issue the industry is keen for the RICS to rethink is its status as an educator. Several senior sources have pointed to the need for the organisation to update its “antiquated” training courses to ensure it appeals to young professionals deciding on a career path. There is also the question of whether privy council will reconsider the RICS’ status as a self-regulating organisation within the property industry. And any future leader will have to deal with the possibility of a member exodus if they perceive that the standards they have been held to by the organisation are not upheld by the institution itself. Above all, the new leader turning the RICS’ fortunes around would do well to remember that no matter what, the membership should always come first. “The RICS is the servant, not the master,” says Pott. “The masters are the members.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Photo: Jeff Blackler/Shutterstock