D39BU – Business Management in the Built Environment Lesson Two : Environmental scanning and STEEP Analysis Adapted from the Heriot Watt University ppt slides

Diagram showing the process of strategic planning – a 7-step model D39BU – Business Management in the Built Environment Diagram showing the process of strategic planning – a 7-step model Vision & mission Swot analysis STEEP & Scenarios Planning feedback Strategic analysis & options decision making feedback implementation Evaluation & monitoring

Strategy Implementation Business Management in the Built Environment A Model of Strategy Process The Built Environment Environment Resource Capability Strategic Analysis Strategic Capability Identifying Options Strategy Implementation RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Strategic Choice Stakeholder Expectations Organisational Structure Selecting a Strategy 3

Business Management in the Built Environment Environmental analysis Macro environment STEEP Analysis Industry Environment Suppliers Competitors Customers SOCIAL POLITICAL TECHNOLOGICAL RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. ENVIRONMENTAL ECONOMICS Pg 4 unit 5 4

Business Management in the Built Environment Auditing Environment Influences Strategic Analysis STEEP ANALYSIS RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. POLITICAL SOCIAL TECHNOLOGICAL ECONOMICS ENVIRONMENTAL 5

Business Management in the Built Environment Environmental analysis: The STEEP ANALYSIS SOCIAL values / demographics / life styles TECHNOLOGICAL new products / innovations / technological trends ENVIRONMENTAL pressure groups / energy efficiency / resources RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. ECONOMICS recession / interest rates / inflation / tax POLITICAL election / policy / budget / legislation 6

Business Management in the Built Environment Auditing Environment Influences Strategic Analysis STEEP ANALYSIS RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. When Should STEEP be used? Times of Uncertainty Times of Information Overload Times of Disorganization 7

Business Management in the Built Environment Auditing Environment Influences Strategic Analysis STEEP ANALYSIS Comprehend the element of the environment Assess interrelationships between trends Relate trends to issues Forecast the future direction of issues Derive implications RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. 8

Business Management in the Built Environment Auditing the Built Environment SOCIAL Strategic Analysis Affordable Housing POLITICAL PFI / PPP ENVIRONMENTAL TECHNOLOGICAL RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Waste Management ECONOMICS Systems Building Recession Note:* PFI = Private Finance Initiatives PPP = Public Private Partnerships 9

Business Management in the Built Environment Auditing the Built Environment Affordable Housing Strategic Analysis *PFI / PPP Systems Building Recession RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Waste Management Note:* PFI = Private Finance Initiatives PPP = Public Private Partnerships 10

Business Management in the Built Environment Resource & Strategic Capabilities Strategic Analysis SWOT ANALYSIS RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. STRENGTHS THREATS WEAKNESSES OPPORTUNITIES 11

Business Management in the Built Environment Resource & Strategic Capabilities Internal Audit STRENGTHS WEAKNESSES (Potentially) Negative Factors Positive Factors RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. OPPORTUNITIES THREATS External Audit 12

Business Management in the Built Environment Resource & Strategic Capabilities STRENGTHS WEAKNESSES OPPORTUNITIES THREATS STAFF TURNOVER PROFIT GROWTH STAFF POOR MARKET LOW PROFIT INNOVATION DIVERSIFY ALLIANCES SKILLS FUNDING ECONOMY STAFF LEAVE TECHNOLOGY CASH FLOW RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. SWOT Summary STEEP & SWOT Analysis / Interpretation 13

Business Management in the Built Environment STEEP & SWOT Analysis & Interpretation STEEP & SWOT Analysis / Interpretation Use in conjunction with other techniques Porter’s Five Forces RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Porter’s Generic Strategies Boston Consulting Group Matrix Diversification Analysis 14

Analysis of strategic position of the organisation Business Management in the Built Environment Analysis of strategic position of the organisation Identify key Forces through 5-Forces structural analysis Audit the envm influences Strategic position Identify the firm’s position In the industry Examine and idendify Opportunities and threats Through SWOT Examine the nature of envm Pg 2 of Unit 5

Analysis of strategic position of the organisation Business Management in the Built Environment Analysis of strategic position of the organisation Identify key Forces through 5-Forces structural analysis Audit the envm influences Strategic position Identify the firm’s position In the industry Examine and idendify Opportunities and threats Through SWOT Examine the nature of envm Pg 2 of Unit 5

Michael Porter’s 5 forces Business Management in the Built Environment Michael Porter’s 5 forces Potential Entrants Threat of Entrants Suppliers COMPETITIVE RIVALRY Buyers Bargaining Power Bargaining Power RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Threat of Substitutes Substitutes 17

Business Management in the Built Environment MICHAEL PORTER’S 5 FORCES MODEL /THEORY FOR STRUCTURAL ANALYSIS OF COMPETITIVE ENVIRONMENT

Business Management in the Built Environment Exam question: (for discussion) Critically appraise Porter’s five forces model, provide a view on the school of thought that underpins the model and explain how the model could be used by a built environment organisation to develop organisational strategy. REFER TO Pg : 4-7 OF UNIT 5 (TEXT) This question will be discussed in lesson 5

The UK Construction Industry (GDP) Business Management in the Built Environment The Built Environment: The UK Construction Industry (GDP) STEEP ANALYSIS Public / Private (Spending) RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Civils Construction Housing R & M Strategic Direction (Markets / Portfolio / Competition) 20

The Singapore Construction Industry (GDP)? Business Management in the Built Environment The Built Environment: The Singapore Construction Industry (GDP)? STEEP ANALYSIS Public / Private (Spending) RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. Civils Construction Housing R & M Strategic Direction (Markets / Portfolio / Competition) 21

Business Management in the Built Environment Challenges in the Built Environment Industry Statistics:(Companies / Employment) Client Involvement:(Novice / Enlightened) Characteristics:(Project-based / Sub-Contracting) Procurement:(Contractual Governance / Route) Modern Methods of Construction:(incl. Environmental) Future Strategies:(Consolidation / Merger / Acquisition) RATIONALE: THE BASIC PREMISE FOR THIS STUDY WAS TO FIRST ESTABLISH EVIDENCE THAT TEAMS REALLY DO INFLUENCE PERFORMANCE AND IN THIS CASE AT A PROJECT LEVEL WITHIN THE CONSTRUCTION ENVIRONMENT. SECONDLY, PROVIDE A FRAMEWORK THAT PERMITS ANALYSIS WHILST AT THE SAME TIME PROVIDES INSIGHT, IDENTIFING STRENGTHS AND WEAKNESSES WITHIN THE TEAM DYNAMIC THAT ALLOWS MANAGEMENT TO MAKE INFORMED DECISIONS DIRECTLY RELATED TO ENHANCING THE PERFORMANCE OF CROSS-FUNCTIONAL TEAMWORKING (HPXfT). TEAM WORKING: IS A RESILIENT MANAGEMENT THEME WITH A LONG HISTORY OF RESEARCH. THE VOLUME OF TEAM WORKING MATERIAL IS TESTIMONY TO THE ENDURING APPEAL OF TEAM WORKING PHILOSOPHIES. IN RECENT YEARS THE TRADITIONAL PERSPECTIVE WHICH WAS IN SOMEPART BENEVOLENT IN NATURE HAS BEEN REPLACED WITH A MORE BUSINESS ORIENTATED FOCUS. IN OTHER WORDS ‘TODAY, THE OBJECTIVE IS STRATEGIC RATHER THAN OPERATIONAL’. PERFORMANCE MANAGEMENT: ALONG WITH THE CHANGE IN TEAM IDEALS, PERFORMANCE MANAGEMENT HAS DEVELOPED AS A SPECIFIC CORPORATE DISCIPLINE. HISTORICALLY PERFORMANCE MANAGEMENT HAS FOCUSED ON THE FINANCIAL ASPECTS OF BUSINESS. IN 1992 KAPLAN & NORTON DEVELOPED THE ‘BALANCED SCORECARD’ CONCEPT IN ORDER TO PROVIDE A MORE HOLISTIC MEASUREMENT OF CORPORATE WELL-BEING. IDENTIFYING FOUR DISTINCT PERSPECTIVES THAT DRIVE PERFORMANCE. TEAM & PERFORMANCE: AT PRESENT THERE ARE SOME CONTRADICTIONS IN BUSINESS PRACTICE FOR EXAMPLE TEAMWORKING STRUCTURES (AT A PROJECT LEVEL) MATCHED WITH INDIVIDUAL APPRAISAL AND REWARDS AT A COMPANY LEVEL. 22

As the senior executive of a built environment Business Management in the Built Environment Discussion & assignment (exam Question) As the senior executive of a built environment firm, critically appraise and discuss what you consider to be the key issues and their impact upon the environment within which the organisation competes. Furthermore clearly explain how these issues affect the organisation’s strategy.