Recession as a force of change

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Introduction
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C K Lau : General Manager, Project Management Department, Henderson Real Estate Agency Limited, Hong Kong David Yau : Assistant General Manager, Project Management Department, Henderson Real Estate Agency Limited, Hong Kong

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Changes in recession
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The construction costs must be kept low The quality must be kept equally high Time must be reduced

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Practices to cope with change

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Team building Value Management Research and development Interactive project management

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Team building
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Each party is likely to give primacy to certain aspects of the whole: The developers seek to maximize gross floor area (profits) while minimizing cost and time The ultimate occupant may want a building that is attractive to staff and visitors, convenient to use and comfortable to occupy

Facility engineers focus on work-flow, 9/8/12 adjacency and furniture layout

Value management
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It can be defined as a structured, systematic and analytical process which seeks to achieve value for money by providing all necessary functions at the lowest total cost consistent with the required levels of quality and performance of the development

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Benefits of VM
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Appropriate quality for the project Responsiveness to clients priorities An opportunity for the client and users to formally participate in the design process Clients and users insight into the project Improved communication among stakeholders and team building

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VM workshops
Construction and phasing strategy Site formation and design development Program review Assessment of precast alternatives Phase 3 construction sequence Logistic issues 1998 January 1998 June 1998 December 1999 March and May 1999 June 2001 June

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Research and Development

There is a need for us to learn of new innovations and to improve our construction methods and practices in order to achieve our goals of being both efficient and effective in our projects by:
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Building faster Building cheaper better quality

o Building 9/8/12

Technical visits

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To USA to learn more about data centers and e-management To Europe to learn more about system formwork and its applications To Australia to learn more about precast concrete systems Singapore to learn about

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Interactive project management

The Project Management Department Intranet or PM Net was set up in early 2000 after a couple of workshops with the project managers, secretaries and assistants to brainstorm on the requirements of a document management system. This was then passed onto Electronic Data Processing Department to develop the system internally.
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Aim
As a start, they set up the system with the following aims:
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Manage, Monitor and Report progress Manage, distribute and share data Reduce waste/cost and improve efficiency

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Document management system (DMS)

Document Management System (DMS) enables the centralization of documents by collecting, managing and organizing documents from various sources such as e-mail, soft copies, hard copies and fax. Documents are saved centralized server through into a

scanning devices or directly from soft 9/8/12 copies. They are then

Management challenge implementing changes

Using the tools we have mentioned (VM, team building, R&D and iPM), we have created an environment of open dialogue, encouragement and praise. From this we can implement change by:
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Learning about new ideas and studying the departments needs Plan changes Gain management support for change

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Conclusion
Implementing change can be difficult and painful, particularly to streamline efficiency and effectiveness, but is a necessity in a time of recession. We can use technical visits, team building, value management and the like to provide the environment for change as well as equipping project managers with new knowledge management
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Merger and Acquisition as the force of change

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Why Merger and Acquisition?

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Excessive capacity . Neighboring market expansion. New product or market investment . Research and development. Leveraging to create new industries.

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Problem with Myspace

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When News Corp paid $500 million for MySpace in July 2006, it set off a number of voices of concern at what the effect of this acquisition would be on the way MySpace operated. Anderson and DeWolfe are under real pressure to make MySpace a strong commercial operation.

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The Changes, Myspace had gone through

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Cost savings. Cultural adjustment. Balancing change and continuity. Due diligence. Contingency planning. Power structure. Communication.

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International and domestic competition as the forces of change

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Trends Globalization Diversity

Tensions Global versus Local Heterogeneity versus Homogeneity Flexibility versus stability Centralization versus Decentralization Interdependence versus Independence

Flexibility Flat

Network
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GLOBALIZATION
To stay competitive, more organizations are embracing offshore outsourcing. Many functions shifted to India, the Philippines, are being

Malaysia, and other countries for their low labor costs, high levels of workforce education, advantages and technological

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DIVERSITY
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Cultural intelligence". Debate between theheterogenistsand thehomogenistsconcerning the impact of greater diversity in organizations.

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Flexibility
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Flex-time Change without pain

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FLAT
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Flat organizations make decisions more quickly because each person is closer to the ultimate decision-makers. There are fewer levels of management, and workers are empowered to make decisions. Decision-making becomes decentralized. Organizations are caught between the opposing forces of centralization and decentralization.

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NETWORKS
The garment industry in Italy, strong relationships have developed between manufacturers and suppliers (and other manufacturers), so that considerable work is done without a contract and without even working out a firm price.

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