be 27112002

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Richard Saxon be 26-06-03
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THE INDUSTRY FORMERLY KNOWN AS CONSTRUCTION
Richard Saxon CBE Director,
Building Design Partnership Chairman,
Be Vice President, RIBA
AEC Conference, June 25-27th 2003
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Construction should
be seen as central to a better quality of
life for everyone, and concerned with a
sustainable future. It needs to develop its
vision, get widespread buy-in and communicate it
to all stakeholders. Sir John Fairclough, 2002
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A Mission Statement
To add value for customers and society by shaping
and delivering the built environment to meet
their needs.
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Climate for the Next 5 Years

• Strong public sector demandRecovering private
  sector low interest rates
• Customers seeking expert and comprehensiveservice
  
• Business seeking new markets and better returns
• Society seeking quality of life and
  sustainability
• Marked shortage of talent joining the industry

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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Excellence Model Analysis
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Results for a Successful Industry

• Customers getting support for theirvalue
  propositions
• Society getting sustainable quality of life
• People being attracted into the industry
• Business growing and profitable

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Key Enablers of Success

• Leadership - transforming vision and values
• Strategy - focussing on customer andsociety
  value
• Resources - collaborative networks, ICT backed
• People - delivering on safety, respect and IIP
• Process - lean, integrated, whole life-cycle

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Key Enablers of Success

• Leadership - transforming vision and values
• Strategy - focussing on customer and society
  value
• Resources - collaborative networks, ICT backed
• People - delivering on safety, respect and IIP
• Process - lean, integrated, whole life-cycle

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What is Value?

• "It is unwise to pay too much, but it's worse to
  pay too little. When you pay too much, you lose
  a little money - that is all. When you pay too
  little, you sometimes lose everything, because
  the thing you bought was incapable of doing the
  thing it was bought to do. The common law of
  business balance prohibits paying a little and
  getting a lot - it can't be done. If you deal
  with the lowest bidder, it is well to add
  something for the risk you run. And if you do
  that, you will have enough to pay for something
  better. John Ruskin 1860

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What is Value?

• There is hardly anything in the world thatsome
  men cannot make a little worse anda little
  cheaper and the people who considerprice only
  are that mans lawful prey
  John
  Ruskin
• A cynic is a man who knows the priceof
  everything and the value of nothing
  
  Oscar Wilde

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What is Value?

• Value Benefit over Cost
• Benefits Functionality, Build Quality,
  Impact
• Costs Money cost over lifetime, Environmental
  , Social, Time, Opportunity, Risk

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Design QualityIndicator
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How Value Flows
(250)
200
5
1
(0.1)
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Value Stream Integrators

• Consult and Value Manage - Gleeds
• Develop, GM, Estate Manage - Slough, Stanhope,
  Canary Wharf
• Develop, Build, Operate - Bovis Lend Lease,
  Jarvis, Carillion
• Consult, Design, Operate - Atkins
• Design Led Construction - BDP

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Solution Provider
Integrated Solutions Added value - the
key measure of company performance - is
the difference between the market value of a
firms output and the costs of its inputs.
Value accumulates at each stage of the process
of production to make up the overall value chain.
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Integrated Solutions
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Integrated Solutions THE COMPONENT SKILLS
Capabilities Framework The diagram suggests
the relative importance of the four capabilities
in this context. As the diagram suggests, all
solutions providers have systems integration
capabilities, most have operational service
capabilities to maintain and operate systems,
while only some have capabilities in business
consulting and financing.
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Integrated solutions THE VALUE OF OPERATING
Closing the loop- the system-service innovation
cycle
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Integrated Cycle
BUSINESS CASE
EVALUATION
PROCUREMENT
KNOWLEDGE BASE
BRIEF DESIGN
USE
MANUFACTURE
OPERATION
CONSTRUCTION
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Built Environment Solution Provider The Scenario

• Integrating Business Consultancy,Property,
  Design, Construction and FM
• Forming sector specialist BESPs
• Taking long-termist views of qualityand
  sustainability
• Developing supply teams and their people
• Generating sound income streamand growth
• Satisfying all stakeholders

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The Business Case

• Construction is 7 of GDP
• BESP could be double that withstable income and
  growth potential
• Be actually leverages the restof the economy
• Youre not building a wallYoure building UK plc

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Strategy for the New Policy

• Identify benefit for customersand society
• Attacking costs throughcollaboration
• Developing the BESP scenario

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• I just look for the figurewithin the stone
  andrelease it
  Michaelangelo

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• I just look for the figurewithin the stone
  andrelease it
  Michaelangelo

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THE INDUSTRY FORMERLY KNOWN AS CONSTRUCTION
Richard Saxon CBE Director,
Building Design Partnership Chairman,
Be Vice President, RIBA
AEC Conference, June 25-27th 2003
36
Richard Saxon be 26-06-03