Strategic Management in the Built Environment

1. sl/BMBE/2017 Business Management in the Built Environment D39BU LESSON ONE:INTRODUCTION TO Business Management in built environment (bmbe)

2. sl/BMBE/2017 D39BU – Business Management in the Built Environment Lesson One : Introduction , outline of module & Overview of Strategic Management Approaches Adapted from HW University ‘s notes from Dr Scott Fennie & Dr Turker Bayrak

3. sl/BMBE/2017 Why is this course relevant ? • Fundamental to the success and professionalism of their members education (you) and their own success – the bodies themselves are an organisation! • Vital for our career development within the organisation hierarchy to know the Art of War with regards to strategy • Crucial for graduates with only technical skills to become high quality professionals who are capable of independent thought, taking the initiative, debating and communicating complex ideas.

4. sl/BMBE/2017 Relevance of strategic management • The course is engaging. • It provides you with a platform to understand the complexities of the organisational world and most importantly, strategy. • It challenges you to think in a very different way from the dominant paradigm used in your technical education. • It foster understanding of and to develop strategic management qualities sets you out for promotion. It makes a huge difference to your future

5. sl/BMBE/2017 Aims of this module • Broadly introduce Business management (planning in a sense) issues (with a capital B) • To explore the strategic arena in which the BIG decisions are made • To introduce strategic management theories • To provoke you into thinking more broadly and strategically about your industry and its relation to the strategic management literature • To explore briefly the changes and challenges that MAY face your industry • To further develop your academic knowledge and research skills • To develop your professional knowledge of organisations

6. sl/BMBE/2017 D39BU – Business Management in the Built Environment Our module catchphrase? “Think Squirrels. Think nuts.” “Some Strategic advice: What does a squirrel do in summer? It buries nuts. Why? Well, in wintertime it’ll have something to eat and won’t die. So, collecting nuts in the summer is worthwhile work. Every task you do at work, think… Would a squirrel do that?” Clegg et al. (2005), p409

7. sl/BMBE/2017 REASONS FOR STRATEGIC BUSINESS MANAGEMENT: D39BU – Business Management in the Built Environment • TO INCREASE SHAREHOLDER VALUE • TO ACHIEVE GROWTH WITHIN THE MARKETPLACE; • TO IMPROVE PROFITS AND MAXIMISE SUCCESS • TO SATISFY CUSTOMERS • TO PROVIDE EMPLOYMENT

8. sl/BMBE/2017 D39BU – Business Management in the Built Environment Objectives & Aims of this module • Broadly introduce Business management (planning in a sense) issues (with a capital B) • To explore the strategic arena in which the BIG decisions are made • To introduce strategic management theories • To provoke you into thinking more broadly and strategically about your industry and its relation to the strategic management literature • To explore briefly the changes and challenges that MAY face your industry • To further develop your academic knowledge and research skills • To develop your professional knowledge of organisations

9. sl/BMBE/2017 D39BU – Business Management in the Built Environment Broad themes to be covered in module(refer to Textbook ) • Introduction • Schools of thought (1) • The strategic management process • Strategic analysis & Strategic Choice • Change in construction Industry • Implementation and feedback • Q&A feedback sessions

10. sl/BMBE/2017 D39BU – Business Management in the Built Environment Let’s start off with the meaning of “Built Environment “ Built environment refers to the human-made surroundings that provide the setting for human activity , ranging in scale from personal shelters and buildings to neighborhoods and cities that can often include their supporting infrastructures, such as water supply or energy networks etc..

11. sl/BMBE/2017 D39BU – Business Management in the Built Environment 3 main areas in Built Environment • Architecture & Environmental Psychology • Landscape Architecture • Urban Planning • The field of Built Environment is generally not regarded as a traditional profession or academic discipline in its own right, instead drawing upon areas such as economics, law, public policy, management, design, technology, and environmental sustainability.

12. sl/BMBE/2017 Real Estate Industry is a strategic balance of several activities D39BU – Business Management in the Built Environment Capital Risk –huge sums of money involved Ownership risk Development risk – vertical and horizontal Management risk

13. sl/BMBE/2017 Real Estate Industry Roles in the economy D39BU – Business Management in the Built Environment • Land speculation - land /property brokers • land development – technical prof/financial prof/consultants/general management people • Building development- construction management/leasing prof/brokers • Ownership of a stabilized asset development – property owners/stakeholders such as portfolio management/asset management prof/property management prof/consultants/maintenance services professionals

14. sl/BMBE/2017 Business Management in the Built Environment The nature of construction business • Involves a complex array of independent activities, materials and people with the following challenges: • The demand for construction is inconsistent • Work is seasonal not continuous • Wide range of designs and lack of uniform in presentation • Technological challenges • High risk of unforeseen circumstances such as natural disasters, calamities and human errors • Challenge of getting the right manpower and labour • Output is also dependent on many factors in spite of good design (Refer to pg 7 of Unit 1 )

15. sl/BMBE/2017 Business Management in the Built Environment Understanding management principles • The roles of a manager in a built environment setting; • Development of management thinking and philosophy • Traits of a good manager • Leadership and theories • Traits of a good leader

16. sl/BMBE/2017 Business Management in the Built Environment WHAT IS MANAGEMENT? Some definitions of management includes the following: • Running things properly and efficiently • Getting things done through people – • Making decisions to achieve goals set by organisation

17. sl/BMBE/2017 Business Management in the Built Environment Development of Management Thinking Frederick Taylor – Father of Scientific Management : His principles were: • Develop a systematic and consistent approach (or science) for each operational activity • Replace “ad-hoc” or “rule of thumb” practice • Determine accurately the most suitable method and allowable time for each task • Establish an organisation structure in which management is responsible for managing workers, who will do the actual job performance • Use systematic or scientific recruitment and training of the workforce, so that the best available staff are trained to perform their tasks most efficiently

18. sl/BMBE/2017 Business Management in the Built Environment What makes a good manager? Essential Traits of a Manager • List at least 4 qualities of what you think makes a good manager?

19. sl/BMBE/2017 Business Management in the Built Environment ESSENTIAL TRAITS OF MANAGERS? Let’s take a look at Pg6

20. sl/BMBE/2017 Business Management in the Built Environment Define LEADERSHIP pg 9 of unit 1 A GOOD LEADER IS ONE WHO POSSESS THE FOLLOWING: • ABILITY TO CREATE VISION AND MOTIVATION • ABILITY TO COMMUNICATE EFFECTIVELY • ABILITY TO EMPOWER SUBORDINATES BY SHARING POWER • ABILITY TO ORGANISE TEAMS BASED ON THE STRENGTHS AND WEAKNESSES OF EACH PERSON

21. sl/BMBE/2017 LEADERS VS MANAGERS Business Management in the Built Environment TRAITS OF A GOOD LEADER? A brainstorming session Then, discuss: Critically analyze the traits which characterize a successful leader /entrepreneur

22. sl/BMBE/2017 Business Management in the Built Environment Tannenbaum & Schmidt’s leadership continuum Refer to Fig 1.3 : PG 11 OF Chapter 1 (draw the diagram) tight flexible The manager’s use of authority Subordinate’s scope for discretion Mgr consults group first Mgr & group Discuss & decides Mgr makes Decisions alone Subordinates Makes decisions

23. sl/BMBE/2017 Business Management in the Built Environment Leadership Styles pg 10 Unit 1

24. sl/BMBE/2017 Business Management in the Built Environment Situational Leadership Model: Hersey & Blanchard Refer to Pg 13 of Unit 1 And discuss the scenarios from the construction industry about the different types of leadership style with this model in mind ..

25. sl/BMBE/2017 Business Management in the Built Environment Exam questions related to leadership 1 A) Reflecting upon Tannenbaum and Schmidt (1973) leadership style continuum theory, evaluate how two world famous leaders of your choice would be classified? B) Critically assess the long term implications of leadership style in staff retention. 2A) Different types of leaders derive their powers from different sources. Reflecting upon the types of leaders you are familiar with; B) Analyse the weaknesses and strengths of each of these leader types possess 3.What are the differences between Japanese construction companies and Western Construction companies?

26. sl/BMBE/2017 References for reading • Bennis, W. (1989). On Becoming a Leader. New York: Addison Wesley. • Fryer, B. (2004). The Practice of Construction Management. Bodmin, Cornwall: MPG Books Ltd. • Ganaway, N. B. (2006). Construction Business Management "A guide to Contracting for Business Success". Oxford: Elsevier. • Hawkes, D. (2011). A Report Exploring Skills in the UK Construction Industry. Englemere, Berkshire, UK: Chartered Institute of Building (CIOB). • Kerzner, H. (2009). Project Management : A Systems Approach to Planning, Scheduling, and Controlling. New York: Wiley. • Schaufelberger, J. (2009). Construction Business Management. New Jersey: Pearson. • Volpe, S. P., & Volpe, P. J. (1991). Construction Business Management. USA: Wiley.