the use of social media in disseminating information and sensemaking sf nov 2011

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TowardsMaking sense of the Building Industry:

The use of social media in disseminating information and sensemaking

Dr. Llewellyn B. LewisNovember 2011

THE STRATEGIC FORUM

A place of assembly for strategic conversations

THE STRATEGIC FORUMwww.strategicforum.co.za

BMI

Studium Ad Prosperandum

Voluntas in Conveniendum

BUILDING RESEARCHSTRATEGY CONSULTINGUNIT cc

Reg. No. 2002/105109/23

•BMI




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Reg. No. 2002/105109/23

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http://www.strategicforum.co.za/

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PLAYERSDemand creatorsFuture orientedProactiveInnovativeEntrepreneurialRisk Takers

RESERVESDemand RespondersCurrent orientationReactiveResponsiveService orientedRisk Managers

ONLOOKERSDemand observersPast orientationPassiveRisk Avoiders

REFEREESDemand FacilitatorsCurrent orientationReactiveResponsiveMediatingGatekeepersRisk Averse

BYSTANDERS ACTORS

STAKEHOLDER ANALYSIS

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PLAYERSIn the Know

RESERVESKeep Informed

CROWDMinimal Effort

REFEREESKeep Satisfied

BYSTANDERS ACTORS


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PLAYERSIn the Know


CROWDMinimal Effort


BYSTANDERS ACTORSTEN FORCES THAT FLATTENED THE WORLD

1. 11/9/89. When the walls came down and the Windows went up

2. 8/9/95. When Netscape went Public3. Work Flow Software4. Open Sourcing (Self-organising Collaborative

communities)5. Outsourcing6. Offshoring7. Supply Chaining8. Insourcing9. In-forming10. The Steroids (Digital, Mobile, Personal and

Virtual)(Thomas Friedman: The world is flat: 2005)


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CROWDMinimal Effort


BYSTANDERS ACTORS

THE TRIPLE CONVERGENCEAround the year 2000, all ten of the flatteners started to converge and work together in ways that created a new, flatter, global playing field. This was the FIRST CONVERGENCE. As this new playing field became established, both businesses and individuals began to adopt new habits, skills, and processes to get the most out of it. They moved from largely vertical means of creating value to more horizontal ones. The merger of this new playing field for doing business with the new ways of doing business was the SECOND CONVERGENCE, and it actually helped to flatten the world even further. (Thomas Friedman: The world is flat: 2005)


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PLAYERSIn the Know


CROWDMinimal Effort


BYSTANDERS ACTORSTHE TRIPLE CONVERGENCEFinally, just when all of this flattening was happening, a whole new group of people, several billion, in fact, walked onto the playing field from China, India, and the former Soviet Empire. Thanks to the new flat world, and its new tools, some of them were quickly able to collaborate and compete directly with everyone else. This was the third convergence. (Thomas Friedman: The world is flat: 2005)


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http://www.amazon.com/gp/reader/0374159750/ref=sib_dp_pt#reader-link

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Formal Customers Informal Customers

Revenue per Customer

Customer/Revenue Contribution models

(Based on C.K. Prahalad: The fortune at the bottom of the Pyramid: 2005)

In 1994 another 36 million customers walked onto

the SA playing field!


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Attack the causes of poverty and you remove the roots of conflict - that was the message the Nobel Committee sent out by awarding its peace

prize to the creator of a micro-credit scheme, which benefits millions - - - .

(Star, 17 October, 2006)

Bangladeshi economist Muhammad Yunus, the so-called "Banker to the Poor", and the Grameen Bank he founded three decades ago were the winners of the award for pioneering a system of small-scale loans that has helped 6,6-million

people escape the grind of poverty.(Star, 17 October, 2006)


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The bank, - - - targets women because it

believes they are better than men at running family finances - - - .

"I think it's quite possible to eradicate poverty from this world. I think we can halve the poverty level in

Bangladesh by 2015 - - - " (Star, 16 October 2006)


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A new mindset is taking hold.

Where once the poor were commonly seen as passive victims, microfinance recognizes that the poor people are remarkable reservoirs of energy and knowledge.

UN Secretary-General Kofi Annan’s remarks at Microfinance Symposium: Investing Private Capital in Micro & Small Business Finance.

Geneva, 10 October 2005


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South Africa has 811839 Stokvels with a total estimated value of R44 Billion.

The population of a city made up of all the Stokvel Members would be larger than any of the major metros, including Joburg, Pretoria, Cape Town and Durban.

Business Day, 22 November 2011


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(Based on C.K. Prahalad: The fortune at the bottom of the Pyramid: Eradicating poverty through profits: 2005)

SOCIAL RESPONSIBILTY AND BUSINESS OPPORTUNITY

Government:• Resources

• Control/Standards• Power/Influence

• Concern for constituency

Private Sector:• Products• Processes• Solutions• Expertise

Community:• Housing• Dignity

• Family Life• QOL

BOP StrategyWorking together

WIN-WINrelationship


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(Based on C.K. Prahalad: The fortune at the bottom of the Pyramid: Eradicating poverty through profits: 2005)

SOCIAL RESPONSIBILTY AND BUSINESS OPPORTUNITY

Government:• Resources

• Control/Standards• Power/Influence

• Concern for constituency

Private Sector:• Products• Processes• Solutions• Expertise

Community:• Housing• Dignity

• Family Life• QOL

BOP StrategyWorking together

WIN-WINrelationship



GFCFR521,6 BILLION(22% OF GDP)

BUILDING INV.R108,5* BILLION(20,8% OF GFCF)

CONSTR. INV.R174,9 BILLION(33,5% OF GDFI)

GDPR2663 BILLION

GOVERNMENT BUDGETR798,9 BILLION(30% OF GDP)

TRANSFER DUTYR8- R9 BILLION PA

FTHB SUBSIDIES(1,9% OF BUDGET = R13,8 BILLION)

(500 000 HOUSING UNITS)INVESTMENT IN AFFORDABLE HOUSING

(R1,4 TRILLION 2010-2020)

RESIDENTIAL AND NON RES BPP AND

BUILDINGS COMPLETED (BC)

PRIMARY AND SECONDARY PROPERTY MARKET

R267 BILLION PA MORTGAGE ADVANCES PA

R1000 BIO MORTGAGES O/S

LISTED PROPERTY SECTOR MARKET CAPITALISATION

> R100 BILLION

ANNUAL HOUSINGNEED

(POP. GROWTH ONLY)250 000

INTEGRATED HOUSING

EMPLOYMENTIN BUILDING & CONSTRUCTION

> 1 000 000 PEOPLE

* When the UNRECORDED Home Improvement and Affordable Housing is taken into account Building Investment = 30,5% of GFCF

PROPERTY OWNERSHIPENGINE FOR GROWTH

AND WEALTH CREATIONR3,8 TRILLION RES PROPERTY

R1,3 TRILLION NON RES PROPERTY

URBAN HOUSINGBACKLOG > 1,5 MILLION

UNITS IN 2010

GOVERNMENT INFRASTRUCTURE SPEND (R846 BILLION 2010-2020)

THE ROLE OF BUILDING, CONSTRUCTION AND PROPERTY IN THE ECONOMY: 2010www.strategicforum.co.za



GFCFR521,6 BILLION(22% OF GDP)

BUILDING INV.R108,5* BILLION(20,8% OF GFCF)

CONSTR. INV.R174,9 BILLION(33,5% OF GDFI)

GDPR2663 BILLION

GOVERNMENT BUDGETR798,9 BILLION(30% OF GDP)

TRANSFER DUTYR8- R9 BILLION PA

FTHB SUBSIDIES(1,9% OF BUDGET = R13,8 BILLION)

(500 000 HOUSING UNITS)INVESTMENT IN AFFORDABLE HOUSING

(R1,4 TRILLION 2010-2020)

RESIDENTIAL AND NON RES BPP AND

BUILDINGS COMPLETED (BC)

PRIMARY AND SECONDARY PROPERTY MARKET

R267 BILLION PA MORTGAGE ADVANCES PA

R1000 BIO MORTGAGES O/S

LISTED PROPERTY SECTOR MARKET CAPITALISATION

> R100 BILLION

ANNUAL HOUSINGNEED

(POP. GROWTH ONLY)250 000

INTEGRATED HOUSING

EMPLOYMENTIN BUILDING & CONSTRUCTION

> 1 000 000 PEOPLE

* When the UNRECORDED Home Improvement and Affordable Housing is taken into account Building Investment = 30,5% of GFCF

PROPERTY OWNERSHIPENGINE FOR GROWTH

AND WEALTH CREATIONR3,8 TRILLION RES PROPERTY

R1,3 TRILLION NON RES PROPERTY

URBAN HOUSINGBACKLOG > 1,5 MILLION

UNITS IN 2010

GOVERNMENT INFRASTRUCTURE SPEND (R846 BILLION 2010-2020)

THE ROLE OF BUILDING, CONSTRUCTION AND PROPERTY IN THE ECONOMY: 2010www.strategicforum.co.za

It is estimated that for every R1 spent on infrastructure, R1.40 is added to a country’s gross domestic product. PPP’s are the ideal vehicle for funding the gaps in infrastructure in Africa. (Deloittes research, May 2011)

“Unless the Housing Market recovers, the Economy will not recover.” (Warren Buffet, CNN, 4 October 2011)

The UK Government plan to promote building. “It clearly has recognised the need to boost house building, both to address the housing crisis and to create jobs.” (Business Day, 22 November 2011)


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BUILDING FOR GROWTHwww.strategicforum.co.za

The Daily Telegraph, 21 November 2011


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Taxpayers will underwrite mortgages totalling hundreds of millions of pounds under plans to “unblock” the housing market and revive the flagging economy.

Britain has been “under building” for decades and a radical and unashamedly ambitious strategy is needed to shake up the housing market.The housing market is one of the biggest victims of the credit crunch; lenders won’t lend, so builders can’t build and buyers can’t buy.

With this strategy we will unlock the housing market, get Britain building again, and give many more people the satisfaction and security that comes with stepping over their own threshold


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Housing Strategy:• Mortgage guarantee• Subsidising construction• Pension funds used to finance

infrastructure• Lower deposits• Discount for council tenants• Build for growth, with property

companies able to bid for public funding to finish developments that have stalled

• A classical PPP strategy.


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DWELLING UNITS OWNED OR OCCUPIED BY RACIAL GROUP: 2010: UNITS(Total = 13 328 591)

(Source: StatsSA, Census 2007; Extrapolation t 2009 by BMI-BRSCU Workings)

Black, 10,246,202, 77%

Coloured, 999,542, 7%

Asian, 336,830, 3%

White, 1,746,017, 13%

BLACKS OWN OR OCCUPY 77% OF THE

DWELLINGS IN SA BY NUMBER



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THE AGE OF THE UNTHINKABLEwww.strategicforum.co.za

If we had to think about the nature of our global financial markets all over again, how would we change what we did and did not do? (Ramo: 2009: 205)

If we had to think about the nature of our global financial markets all over again, how would we change what we did and did not do? (Ramo: 2009: 205)


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In the summer of 2007 William Browder’s habit of living on his toes, of looking for any sign that the landscape around him was about to avalanche away, drew his attention to a news item in the papers.

In New York an auction of debt from leveraged buy-out deals had failed to draw enough bidders and was shut down.

To most of the investing world this looked simply like a small hiccup in an otherwise well functioning financial system. But Browder

recognised it for what it was: a sign that the world had run out of the ability to absorb new debt. It was the end of a Ponzi-like scheme and he knew, the start of an avalanche that might reach a historic, tragic scale.

Almost immediately he began stockpiling cash, reducing his exposure to stocks as much as he could, and moving his investor’s money into any safe haven he could find. (Ramo: 2009: 56,57)

THE AGE OF THE UNTHINKABLEwww.strategicforum.co.za


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Demand and Supply Equilibrium

COINCIDE WITH ECONOMICDOWNSWING


1111

1212COMMODITIESCOMMODITIES

CASHCASH

BONDSPROPERTYBONDSPROPERTY

EQUITIESPROPERTYEQUITIESPROPERTYEQUITIESEQUITIES

BONDSBONDS

COINCIDE WITH ECONOMICUPSWING


(Based on the Barings Liquidity Model : The Economist : 19 Nov. 1994)

What did we see in July 2007?

Which leaves us with the least sexy asset class of all —

cash. (Business Day, 6 July 2007)

STRATEGY IN COMPLEX SYSTEMS: ECONOMY

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1111


CASHCASH



BONDSBONDS




What did we see in July 2007?With borrowers starting to default on housing debts in the US, bond markets there and in Europe are trembling. More bad news about

sub-prime mortgages could create global panic and our bond market would be affected. (Business Day, 6 July 2007)

Which leaves us with the least sexy asset class of all —

cash. (Business Day, 6 July 2007)


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1111


CASHCASH



BONDSBONDS




What did we see in July 2007?

Why were we all taken so completely by surprise?

(July 2007)


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WHEN TO HOLD

6

9 3

12

GROWTH MARKET

Saturated MarketFunding Available

Increasing Dividends

Increasing Absorption

Rent ConcessionExcess Funding

Tightened Funding

Reduced Funding

RECESSION

RECOVERY DECLINE

(July 2007)

EQUITIES PROPERTY

COMMODITIES

CASH

BONDS PROPERTY

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WHEN TO HOLD

6

9 3

12

GROWTH MARKET





Tightened Funding

Reduced Funding

RECESSION

RECOVERY DECLINE

(July 2007)

EQUITIES PROPERTY

COMMODITIES

CASH

BONDS PROPERTY

“. . . the failure of collective imagination of many bright people”.

What the economists lacked was the imagination to see that it could all explode into a crisis. They preferred to believe that trends would continue . . .

“The signs were there. Did we ACT rapidly enough?”

But it wasn’t just a failure of imagination. It was a failure of courage. It takes a brave soul to foresee the worst, and go out and warn people. . . .

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STRATEGY IN COMPLEX SYSTEMS




1111

1212

COMMODITIESCOMMODITIES

CASHCASH



BONDSBONDS




November 2011

What do we see in Nov 2011?

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WHEN TO HOLD

6

9 3

12

BOOM MARKET





Tightened Funding

Reduced Funding

RECESSION

RECOVERY DECLINE

CASH

BONDS PROPERTY

EQUITIES PROPERTY

COMMODITIES

STRATEGY IN COMPLEX SYSTEMS

November 2011

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The crisis in the financial markets that I had anticipated arrived in force on August 9, 2007. It came from an area we hadn’t expected – housing – and the damage it caused was much deeper and much longer lasting than any of us could have imagined. (Paulson: 2010: 61)

Encouraging high rates of homeownership had long been a cornerstone of US domestic policy – for Democrats and Republicans alike. Homeownership it is commonly believed helps family’s build wealth, stabilizes neighbourhoods, creates jobs, and promotes growth. (Paulson: 2010: 64)

All bubbles involve speculation, excessive borrowing and risk taking, negligence, a lack of transparency, and outright fraud, but few bubbles ever burst as spectacularly as this one would(Paulson: 2010: 65)

THE PROPERTY MARKET AND COMPLEXITY

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The Sub-Prime crisis is the name

for what is a historic turning point in our economy and culture. It is at its core, the result of a speculative bubble in the housing market that began to burst in the United States in 2006 and has now caused ruptures across many other countries in the form of financial failure and a global credit crunch. (Shiller, Robert J. 2008 : 1)


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In terms of threats to economic confidence, the current sub-prime crisis in some ways resembles the onset of the Great Depression (Shiller: 2008: 97)

Fractional Reserve Banking involves multiple equilibria: People trust their Banks, and thus the banks come to be seen as trustworthy. But, conversely, if people lose trust in their banks, withdraw their funds, and cause the banks to fail, the lack of trust becomes a self fulfilling prophecy. (Shiller: 2008: 102)


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BYSTANDERS ACTORS

Low HighPOWER

PLAYERSProperty Entrepreneurs, developers, Public Sector,FINANCIAL INSTITUTIONS(Mortgage Origination, Approval, Advances, Repossessions, Auctions)

RESERVESArchitects, Specifiers,Manufacturers, Distributors,Contractors,FINANCIAL INSTITUTIONSDeposits, Repayments, Insurance) CROWDLabour, Unions,Consumer bodies,FINANCIAL INSTITUTIONS(Property Values, Property reports (HPI), Statistics)

REFEREESGovt Prov-, Local-Authorities, CIDB, NHBRC, SABS, Agrement Board, MBA’S, SARB, State Tender Board,FINANCIAL INSTITUTIONS (Valuations, LTV ratios, Mortgage Rate, term, Affordability)

Building Industry Stakeholder Analysis


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THE PROPERTY MARKET AND COMPLEXITYFinancial Institutions have INORDINATE Power and Interest. They play in all the quadrants of the Stakeholder Matrix and are SIMULTANEOUSLY PLAYERS, RESERVES, REFEREES and CROWD.They make the rules of the game and influence every facet of it.

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COMPETING WITH THEIR CUSTOMERS – AND THE BUILDING INDUSTRY?


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ANIMAL SPIRITS AND CONFIDENCEwww.strategicforum.co.za

Animal Spirits drive almost everything. Animal Spirits are more than just confidence as measured by confidence indicators.

Declining Animal Spirits are the principal reason for the recent severe economic crisis.

And despite the recent positive

economic indicators, we see no clear indication that these spirits are yet revived. (Akerlof and Shiller: 2009: vii)


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We are facing the same problem today that we faced in the later years of the Great Depression – business today is inhibited by uncertainty about the future, about the tolerance of an angry public, about a disaffected labour force, and about what further government actions may be coming.

Animal Spirits are the forces that drives all of this, and to understand animal spirits we have to use methodologies outside of traditional economics, leading us to other social sciences.

Five psychological factors are of particular importance;

1. Confidence;2. Fairness;3. Corruption and bad faith;4. Money illusion; and

5. Stories. (Akerlof and Shiller: 2009: ix)


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RES

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Non Economic EconomicMOTIVES

Conventional Economic Theory

Economic theory incorporating “Animal Spirits”.



How the Macro Economy behaves



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Non Economic EconomicMOTIVES

Conventional Economic Theory




How the Macro Economy behaves


Akerlof & Shiller believe that the answers to the most important questions regarding how the macro economy behaves and what we ought to do when it misbehaves lie largely (though not exclusively) within the three white boxes)


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The MFA CLIBI has moved sideways for four quarters, still reflecting widespread pessimism in the South African building industry … this is the first time that it has moved sideways for more than two quarters, an unprecedented occurrence … a recovery-in-waiting?

MFA COMPOSITE LEADING INDICATOR (CLIBI)FOR THE SOUTH AFRICAN BUILDING INDUSTRY

0

10

20

30

40

50

60

70

80

90

100

| 71 | 74 | 77 | 80 | 83 | 86 | 89 | 92 | 95 | 98 | 01 | 04 | 07 | 10 | 13

Source: FNB / BER; SARB; MFA DATABASE

PE

SS

IMIS

M <

50

> O

PT

IMIS

M

OPTIMISM

PESSIMISM


?


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The theory of animal spirits provides an answer to a conundrum:

1. Why did most of us utterly fail to foresee the current economic crisis?2. How can we understand this crisis, when it seems to have come out of the blue with no cause?3. Why have the measures to forestall it falling short, while the economic authorities publically express surprise at their ineffectiveness?

We need to answer these questions if we are to feel any confidence in economic policy in the (future). (Akerlof and Shiller: 2009: 167)

The real problem is the conventional wisdom that underlies so much of current economic theory. So many members of the macro economics and finance profession have gone so far in the direction of rational expectations and efficient markets, that they fail to consider the most important dynamics underlying economic crises. Failing to incorporate animal spirits into the model, can blind us to the real sources of trouble. (Akerlof & Shiller : 2009 : 167)

What has happened in the current financial crisis, corresponds to what causes most of our economic ups and downs: over-confidence followed by under-confidence. The story in this case was that the price of housing had never declined (that is only a story, and it is actually untrue) and therefore, that it would just continue to go up and up. There was nothing to lose. This is the story of our time; it is the story of the business cycle that began in 2001. (Akerlof & Shiller, 2009 : 170)


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For some reason in the late 1990s and early 2000s, the idea that homes and apartments were spectacular investments, gained a stronghold on the public imagination in the United States and many other countries as well.

Not only did prices escalate, but there was palpable excitement about real estate investments; one could see the animal spirits in action everywhere.

It was the biggest home price boom in U.S. history. It extended over nearly a decade, beginning in the late 1990s.

Prices nearly doubled before the bust began in 2006. While it lasted, this spectacular boom mirrored in other countries as well, helped drive the entire world economy and its stock markets.

In its wake, it has left the biggest real estate crisis since the 1930s. The so-called sub-prime crisis, as well as a global financial crisis, the full dimensions of which still have to be grasped. (Akerlof and Shiller: 2009: 149)


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Stage 1Hubris bornOf success

Stage 2Undisciplined

Pursuit of More

Stage 3Denial of Risk

and Peril

Stage 4Grasping for

Salvation

Stage 5Recovery and

Renewal

WELL FOUNDED HOPE ?

?

What will it take?

(Source: Based on Collins: How the Mighty Fall: 2009)

LOOKING TO THE FUTURE

What can we do to restore growth when one part of the Industry wants to save (and not spend) and the other wants to stop spending (and save)?

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Drivers of Change and the Housing Scenario Map

Investment Climate

NOW, 2Q 2010

Muddling along as we

are, or change . . .

NOW, 2Q 2010

Muddling along as we

are, or change . . .

Government intervention,

PPP’s; Subsidies,

Infrastructure

SA Social Capitalism;

Growth through Redistribution;

The Golden Triangle.

SA Social Democracy; Redistribution

with Growth

SA Communism; Redistribution with or without growth

SA – A Third World Country

SA Communism; Redistribution with or without growth

SA – A Third World Country

1. The High Road

2. Upper Middle Road

3. Lower Middle Road

PROPERTY A POOR INVESTMENT / AVERAGE / GOOD / A PREFERRED INVESTMENTParadigm Regression Paradigm Paralysis Paradigm Shift Paradigm Reinvention

BOUYANT GROWTH> 5 % PA

GDFI > 25 % OF GDP

SUBSIDIES3 - 5 % OF BUDGET

AVERAGE GROWTH 2 - 5 % PA

GDFI 20 - 25 %OF GDP


LOW GROWTH0 - 2 % PA

GDFI 15 - 20 %OF GDP


NEGATIVE GROWTH< 0 % PA

GDFI < 15 %OF GDP

SUBSIDIES< 1 % OF BUDGET

NO

CO

NF

IDE

NC

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4. The Low Road

(Based on Gerald Harris: The Art of Quantum Planning: 2009)


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DECLINE

Credit andCapital markets

CLOSED

GROWTH

Credit andCapital markets

OPEN

High Road

Low Road

Lower MiddleRoad

Upper Middle Road

10%40%

30% 20%


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LOOKING TO THE FUTURE: RESIDENTIAL

UNDERSUPPLYDemand exceeds supplyPrices increaseBuyer resistance developsMarket tightens

OVERSUPPLYSupply exceeds demandCompetition increasesPrices moderateMarket loosens

RECESSIONReduced Funding Less constructionTightened Funding

OverbuildingRent ConcessionSaturated MarketDECLINE

RECOVERY Increasing rents Stabilising rents Increasing Absorption

BOOM MARKET Funding Available

Increasing constructionExcess funding

Legend:AH - Affordable HousingDH<80 – Dwelling Houses < 80 m2DH>80 – Dwelling Houses > 80 m2F&TH – Flats & TownhousesA&A – Additions & Alterations

AH

F&TH

DH>80

DH<80

AA

Demand and Supply EquilibriumRESRES

1111

1212

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6

9 3

12

BOOM MARKET

Saturated Market

Increasing Construction

Funding Available

Increasing Rents

Stablizing Rents


Overbuilding

Rent Concession

Excess Funding

Tightened Funding

Less Construction

Reduced Funding

RECESSION

RECOVERY DECLINEDH<80

DH>80

F&TH

AH

AA

RESRES

LOOKING TO THE FUTURE: RESIDENTIAL

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UNDERSUPPLYDemand exceeds supplyPrices increaseBuyer resistance developsMarket tightens

OVERSUPPLYSupply exceeds demandCompetition increasesPrices moderateMarket loosens


OfficesShops

IWH

PNR

RECESSIONReduced Funding Less constructionTightened Funding

OverbuildingRent ConcessionSaturated MarketDECLINE

RECOVERY Increasing rents Stabilising rents Increasing Absorption

What do we see in Nov 2011?

NON RESNON RES

1111

1212

Funding AvailableIncreasing constructionExcess fundingGROWTH MARKET

LOOKING TO THE FUTURE: NON RESIDENTIAL

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6

9 3

12

BOOM MARKET

Saturated Market

Increasing Construction

Funding Available

Increasing Rents

Stablizing Rents


Overbuilding

Rent Concession

Excess Funding

Tightened Funding

Less Construction

Reduced Funding

RECESSION

RECOVERY

Offices

Shops

I&WH

Public NR

DECLINE

LOOKING TO THE FUTURE: NON RESIDENTIAL


HOUSING MARKET PER LSM GROUP: 2010: UNITS(Source: StatsSA, AMPS 2010, BMI-BRSCU Workings)

4,29

2 7,68

0

34,4

49

11,4

08

16,7

16

20,5

57

37,7

25

29,1

41

14,9

09

3,84

0 6,55

1

7,68

0

7,90

6

8,81

0

5,42

2

4,29

2

4,51

8

0

10,000

20,000

30,000

40,000

SH

ELP

1

SH

ELP

2

INC

/SH

EC

H

INC

/SH

ES

H

CO

NV

/LIS

H

CO

NV

/LA

SH

ST

D/M

ISH

ST

D/M

AS

H

ST

D/M

US

H

LUX

/LU

SH

1-499 500-799

800-1499

1500-1999

2000-2499

2500-3499

3500-5999

6000-8999

9000-10999

11000-11999

12000-13999

14000-15999

16000-19999

20000-24999

25000-29999

30000-39999

40000+

UN

ITS

GAP Market102 332 Units

Affordable Rental Social Housing(95,225 units)

Entrepreneurial Rental Social

Housing(77,234 units)

LOOKING TO THE FUTURE: RESIDENTIAL AH


AFFORDABLE HOUSING DELIVERY AND BACKLOG: 2002-2010LOWER MIDDLE ROAD SOYUZ AND HIGH ROAD COLUMBUS SCENARIO: 2011-2020

(Source: StatsSA and BMI-BRSCU Workings)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

AN

NU

AL

HO

US

ING

DE

LIV

ER

Y (

UN

ITS

)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2,400,000

2,600,000

2,800,000

3,000,000

3,200,000

AN

NU

AL

HO

US

ING

BA

KL

OG

(U

NIT

S)

DOH Delivery: Lower Middle Road Soyuz Scenario DOH Delivery: High Road Columbus Scenario

Annual Housing Backlog under Columbus Scenario Annual Housing Backlog under Soyuz Scenario



AFFORDABLE HOUSING DELIVERY AND BACKLOG: 2002-2010LOWER MIDDLE ROAD SOYUZ AND HIGH ROAD COLUMBUS SCENARIO: 2011-2020

(Source: StatsSA and BMI-BRSCU Workings)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

AN

NU

AL

HO

US

ING

DE

LIV

ER

Y (

UN

ITS

)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2,400,000

2,600,000

2,800,000

3,000,000

3,200,000

AN

NU

AL

HO

US

ING

BA

KL

OG

(U

NIT

S)

DOH Delivery: Lower Middle Road Soyuz Scenario DOH Delivery: High Road Columbus Scenario

Annual Housing Backlog under Columbus Scenario Annual Housing Backlog under Soyuz Scenario

3,12 Million houses built in next 10 years and

Backlog reduced to I million by 2020.

The target must be the eradication of all slums, or informal settlements, by 2020. For this to happen, some 500 000 new units a year must become available.



SUBSIDIES GRANTED: 2002-2010LOWER MIDDLE ROAD SOYUZ AND HIGH ROAD COLUMBUS SCENARIOS: 2011-2015 (R BILLIONS)

(Source: DHS and BMI-BRSCU Workings)

0

5

10

15

20

25

30

35

40

45

50

R B

ILL

ION

S (

CU

RR

EN

T 2

01

0 V

AL

UE

S)

Subsidies granted: Lower Middle Road Soyuz Scenario 7.86 7.79 7.50 7.25 9.16 9.67 10.67 13.22 18.74 20.92 21.25 20.88 19.75 19.37 19.66 20.05 20.55 21.17 20.76

Subsidies granted: High Road Columbus Scenario 7.86 7.79 7.50 7.25 9.16 9.67 10.67 13.22 18.74 20.92 23.02 26.47 30.44 35.00 40.26 43.27 46.52 50.01 52.51

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Redistribution through Growth and Growth through Redistribution.An APPROPRIATE STRATEGY in a Developing Country.



CUM SUBSIDIES GRANTED: 2002-2020 (R Billions)(Source: DOH and BMI-BRSCU Workings)

0

40

80

120

160

200

240

280

320

360

400

440

480

R B

ILL

ION

S (

CU

RR

EN

T 2

01

0 V

AL

UE

S)

Subsidies granted: Lower Middle Road Soyuz Scenario 8 16 23 30 40 49 60 73 92 113 134 155 175 194 214 234 254 275 296

Subsidies granted: High Road Columbus Scenario 8 16 23 30 40 49 60 73 92 113 136 162 193 228 268 311 358 408 460

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Taxpayer Contribution of R296 – R460 Billion OVER NEXT 10 YEARS IN THE PROVISION OF OVER 3 MILLION Affordable Housing Units and creating employment in the process by Growth through Redistribution.

The credit belongs to both Government, in providing the leadership and vision, and the Taxpayer in providing the finance.


58

Zoning Type Density )Gross) Units m2/Unit Total m2 R/m2 R/Unit Stand Total R Million* %Giveaway RDP Residential 2 Row Housing 90 Units/Ha 298,627 45 13,550,203 2,192 99,450 9,945 109,395 29,699 3.01%Giveaway RDP Residential 3 Walk-ups 125 Units/Ha 1,327,838 45 60,250,643 2,192 99,450 9,945 109,395 132,054 13.39%Upgraded RDP Residential 1 1 House/Stand 200 m2-450 m2 1,038,567 68 70,622,574 4,422 300,685 30,069 330,754 312,282 31.68%GAP Housing Residential 1 Semi-Detatched 190 m2 304,865 113 34,297,280 4,422 497,457 49,746 547,203 151,657 15.38%

Residential 1 1 House/Stand 1 per 350 m2 148,924 180 26,806,263 4,422 795,931 79,593 875,524 118,533 12.02%3,118,821 42 131,726,117 5,650 238,624 23,862 238,624 744,224 75.49%

744,224

Zoning Units m2/Unit Total m2 R/m2 R/Unit Stand Total R Million* %Business 3,000 5,000 25,000,000 6,151 30,756,224 3,075,622 33,831,847 92,269 9.36%Industrial 3,000 5,000 25,000,000 4,039 20,195,000 2,019,500 22,214,500 60,585 6.15%Business 6,000 5,000 50,000,000 2,960 14,800,000 1,480,000 16,280,000 88,800 9.01%

12,000 8,333 100,000,000 2,417 20,137,806 6,575,122 72,326,347 241,654 24.51%

231,726,117 985,878 100.00%

* Land excludedEmployment created per annum for Total Market 180,151Employment created per annum for Affordable Housing Market 135,993Employment created per annum for one Affordable House 0.0436Employment vreated per annum for 1000000 Affordable Houses 43604.01

(Source: BMI-BRSCU Estimate)

Non Residential (m2)Offices & Banking

Grand Total

Industrial and WarehousingShopping & CommercialTotal Non Residential Total Non Residential

Grand Total

ESTIMATED NON RESIDENTIAL INVESTMENT IN SUSTAINABLE INTEGRATED DEVELOPMENTS

ESTIMATED RESIDENTIAL INVESTMENT IN SUSTAINABLE INTEGRATED DEVELOPMENTSResidential

Bonded (FSC)Total Residential

BNG Housing

© BMI-BRSCU© BMI-BRSCU

*) Subsidy and stand included because affordability is determined in this way.

If the 3.12 million houses can be built in the next 10 years this will result in investment of R986 Billion (land excluded).And . . . Create 136 000 additional jobs in the process.

Growth through Redistribution


59

A major initiative to mobilise South African society in COLLABORATIVE Public, Private Sector Cooperation and social responsibility behind a COMPELLING VISION of Wealth Creation, Nation building and reconciliation through Homeownership.

To inspire society it is imperative to give credit to the Public (in providing the finance through taxation) as well as the Private Sector for building most of the 3 million houses.It has been a cooperative effort – Government cannot assume all the credit.



The Department of Human Settlements was unable to address the burden of the housing backlog on its own, Sexwale said at the launch

of the “Each One Settle One” campaign at the JSE yesterday.

The campaign aims to mobilise various stakeholders, including the top 200 JSE-listed companies, to assist the

department in providing decent shelter to more than 2 million households living in squatter camps, as well as in informal settlements.

Sexwale said the number of informal settlements in the country had grown from 800 when he was Gauteng premier to 2 500 today.

The housing backlog under his watch had increased from 2.1

million houses when he became minister to 2.3 million, despite his

department building 200 000 houses a year.

Sexwale attributed this situation to the increasing number of households and the decrease in the size of households, admitting that the government had got itself into “a very tight situation since 1994” by providing free houses for the poor.

“It was not the best thing to do. We can’t provide free housing forever but we have got to do that because we can’t turn our backs against the poor. It’s not their fault they are in that situation,” Sexwale said.

“ . . . housing is not just a social expenditure item but an economic dynamo because it contributes massively to economic growth.”


61

Sexwale warned that if there was a second recession in the country it would introduce social instability.

“The protests of our people are beginning to get violent every day. It’s worrying. The police are shooting every day. Let’s work together to try and stem the tide.”

Sexwale said housing was not just a social expenditure item but an economic dynamo because it contributed massively to economic growth.

“It stimulates the whole financial system and when it doesn’t happen, the world starts burning and we just don’t know where it ends.”

He said it was easy for firms to hide behind corporate social investment but it would “not keep this problem at bay”.

A social investment desk had been created in the department to manage the activities of the campaign and projects on a project-by-project basis.

Khanyisile Kweyama, the executive head of human resources at Anglo American Platinum, said it embraced the

campaign and was contributing R1.4 billion towards facilitating the building of 20 000 houses for its employees over the next 10 years. Leon van Schalkwyk, the group executive of strategic finance at Impala Platinum, said it had a proven track record in community-based housing solutions through its extensive home ownership programme in the North

West to uplift its employees, which had resulted in the construction of more than 1 500 freestanding units over a three-year period. (Business Report, 30 September, 2011)

© BMI-BRSCU© BMI-BRSCU


62 © BMI-BRSCU

THE EDGE OF CHAOSwww.strategicforum.co.za


63 © BMI-BRSCU

SELF-DIRECTED TRANSFORMATION

CRITICAL MESSRISKRUDE AWAKENING

CHAOSUNCERTAINTY

FIRST CURVE

SECOND CURVECREATING THE FUTUREIMPOSSIBLE RESULTS

EMERGENCESTRANGE ATTRACTORS

(Based on Handy : 1994)

THE BUTTERFLY EFFECT

THEEDGE OF CHAOS

COMPLEXITYFIELD THEORY

ZONE OF CREATIVITY

AND ADAPTABILITY

ENVIRONMENTAL CHANGE



64

PresentPast Future

The Edge of Time

Chaos Edge of Chaos Structure

The Edge of Chaos

(Source: Brown and Eisenhardt: 1998)

COMPETING ON THE EDGE OF CHAOS

THE EDGE OF CHAOS

65

PresentPast Future

The Edge of Time

Chaos Edge of Chaos Structure

The Edge of Chaos

(Source: Brown and Eisenhardt: 1998)

COMPETING ON THE EDGE OF CHAOS

THE EDGE OF CHAOS

New order can emerge from chaos. Complexity theory argues that nothing innovative can emerge from systems with a high degree of order and stability (eg regulated industries);

similarly, completely chaotic systems (eg riots) are incapable of functioning or creating anything.

Somewhere on the boundary between order and disorder, control and chaos, sits creativity, innovation, self-renewal and growth.

Pascale (1999) calls this point “the edge of chaos”. (OUBS, Strategy: Unit 8: 28)

66 © BMI-BRSCU

INDUSTRY AND COMPLEXITYTHE EDGE OF CHAOS

(Source: Based on Johnson and Scholes: 2002)

First curve

Second curve CreativityEmergence

CreativityEmergence

Intuitive capacity Permeable boundaries

Mind forged MANACLES

Status Quo

FutureCHAOSChallenge the

Mindsets.

67 © BMI-BRSCU

Competing on the edge rests on the assumption that the marketplace is in constant flux.

The assumption of static equilibrium no longer applies.

Rather the view is that competitors come and go. Markets emerge, close, shrink, split, collide and grow.

Today’s collaborators are tomorrow’s competitors . . . or both.

Technology is constantly shifting. Getting to the market early matters.

In complexity parlance, the marketplace is a continuously deforming landscape.

The image of this kind of landscape is of a terrain richly contoured by peaks and valleys.

And it is continuously reshaped by warp-speed change.



69


© BMI-BRSCU(Source: Brown and Eisenhardt: 1998: 23)

Building Blocks

Roll out new branches, source and develop new products, develop new markets,discover new customers, Reconfigure the Value Chain,diversify.LEAD CHANGE.


70 © BMI-BRSCU

Available on Amazon.comTHE GREAT RESET

www.strategicforum.co.za

“This economic crisis doesn’t represent the cycle, it represents a reset. It’s an emotional, raw, social, economic reset.” (General Electric CEO Jeffrey Immelt)“People who understand that, will prosper; those who don’t will be left behind.”


71 © BMI-BRSCU

Prolonged ECONOMIC DOWNTURNS like

• the Great Depression of the 1930s and

• the Long Depression of the late nineteenth century, are viewed in terms of the crisis and pain they cause.

OPPORTUNITIES

• to remake our economy and society and

• to generate whole new eras of economic growth and prosperity.

In terms of innovation, invention and energetic risk-taking, these periods of creative destruction have been some of the most fertile in history and the changes they put into motion can set the stage for full-scale recovery.

THE GREAT RESETwww.strategicforum.co.za


72 © BMI-BRSCU

Economic development expert Richard Florida, examines these previous ECONOMIC EPOCHS, OR RESETS.

He distills the DEEP FORCES that have altered physical and social landscapes and eventually reshaped economies and societies.

LOOKING TOWARD THE FUTURE, he identifies the patterns that will drive the next Great Reset and TRANSFORM virtually every aspect of our lives – from how and where we live, to how we work, to how we invest in individuals and infrastructure, to how we shape our cities and regions.

These forces, when combined, will spur a fresh era of growth and prosperity, define a new geography of progress and create surprising opportunities for all.

THE GREAT RESETwww.strategicforum.co.za


73 © BMI-BRSCU

The bubble was so big in the 1920s, that after it popped during the Great Depression, it would take 22 years for non-residential construction investment to regain its precrash peak and 24 years for real spending on residential construction to recover to its pre-crisis highs.

THE GREAT RESET IN AMERICAwww.strategicforum.co.za


74 © BMI-BRSCU

THE GREAT RESET IN THE UK

“The World has never been faced with such a complex global economic challenge – such fast financial

reversals, such great banking threats, and such pronounced economic instabilities – as it faced in 2008.” (Gordon Brown: 3: 2010)

“We tend to think of the sweep of destiny as stretching across many months and years – as if each minute leads inevitably to the next, before culminating in one of those decisive moments we call history.

But sometimes the defining moments of history appear suddenly and without warning.” (Gordon Brown: 3: 2010)

75 © BMI-BRSCU


In July 2008 Treasury Secretary Hank Paulson was having to negotiate with

Congress for support for Fannie Mae and Freddie Mac (which together owned or guaranteed $5 Trillion worth of homeloans).

In Britain’s housing market the Council of Mortgage Lenders announced on

July 18 that lending had declined by 32% from June 2007.

These figures made my blood run cold. I knew what they

meant: people and business stuck without credit and possibly a bad recession (Gordon Brown: 35: 2010)

In South Africa the decline from 2007-2008 was 33% followed by a decline of 29% in 2009!

Total Morgages Advanced: 2000-2009(Source: SARB; BMI-BRSCU Workings)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

R M

illi

on

s (

Cu

rre

nt

Va

lue

s)

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Y/Y

Pe

rcen

tag

e C

ha

ng

e

Total Mortgages Advanced 80,492 105,724 123,007 152,612 232,235 335,348 422,942 441,410 294,512 208,488

Y/Y Percentage Change 45.16% 31.35% 16.35% 24.07% 52.17% 44.40% 26.12% 4.37% -33.28% -29.21%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

76 © BMI-BRSCU


The removal of credit was happening very suddenly, and I realised I had not been thinking out of the box enough. I had expected to push and nudge the system back to order, but it was not happening. (Gordon Brown: 35: 2010)

The information I had been looking at in the past weeks (October 2008) was as

stark as it was serious:

we were facing a situation that risked becoming worse than 1929.

No one trusted anyone in the banking system, and people

were predicting not a recession but a depression.

People were panicking, asking which would be the next bank to collapse. The financial system was looking over an abyss. (Gordon Brown: 59: 2010)

77 © BMI-BRSCU


The removal of credit was happening very suddenly, and I realised I had not been thinking out of the box enough. I had expected to push and nudge the system back to order, but it was not happening. (Gordon Brown: 35: 2010)

The information I had been looking at in the past weeks (October 2008) was as

stark as it was serious:

we were facing a situation that risked becoming worse than 1929.

No one trusted anyone in the banking system, and people

were predicting not a recession but a depression.

People were panicking, asking which would be the next bank to collapse. The financial system was looking over an abyss. (Gordon Brown: 59: 2010)

. . . The years 1929-32 are known forever as the Great Depression and the years 2008-9 will be known as the Great Recession. (Gordon Brown: 129: 2010)

78 © BMI-BRSCU

THE GREAT RESET IN TECHNOLOGYwww.strategicforum.co.za

Today, the highways of major cities and mega regions are veritable parking lots;

at the same time, ideas can travel all around the world almost instantaneously on a digital highway and if you are willing to pay enough, you can send a package anywhere virtually overnight.

A single key stroke can send insight and creativity spreading through society, and that single phenomenon has revolutionized the way we live.

The looming challenge is to speed the physical movement of goods, services and people – the tangible bits of the real world – so that they are more in line with the lightning fast flow of electronic information in the virtual world.


79 © BMI-BRSCU


Today, the highways of major cities and mega regions are veritable parking lots;

at the same time, ideas can travel all around the world almost instantaneously on a digital highway and if you are willing to pay enough, you can send a package anywhere virtually overnight.

A single key stroke can send insight and creativity spreading through society, and that single phenomenon has revolutionized the way we live.

The looming challenge is to speed the physical movement of goods, services and people – the tangible bits of the real world – so that they are more in line with the lightning fast flow of electronic information in the virtual world.

Mark Zucherberg, 26, founder and CEO of Facebook,500 million users, $25 Billion valuation


80 © BMI-BRSCU

The knowledge, resources and computing power of billions of people are self organising into a massive new collective force. Interconnected and orchestrated through blogs, wikis, chat rooms, peer-to-peer networks and personal broadcasting, the internet is being reinvented to provide the first ever global platform for collaboration.

Mass collaboration encourages consumers, employees, suppliers, partners and competitors alike to share information and ideas, and marks a profound change in the way business is conducted. It looks set to alter radically the future of cooperative architecture, strategy and management. Wikinomics is the definitive investigation into how small businesses can achieve success in this emerging, networked economy.



81 © BMI-BRSCU

• Slideshare (The World’s largest community for sharing presentations, 55 million monthly viewers, 120 million monthly page views). Slideshare helps content go VIRAL;

• Facebook (500 million users, 45 Trillion pieces of content shared per month and yet with only 1,5 million active business users),

• Twitter (with 156 million registered users, 54 million updates per month and 30% of users following a brand); and

• Linkedin (containing profiles of Fortune 500 businesses and leading entrepreneurs).



82 © BMI-BRSCU

Forms an igniting purpose can take(Based on Gratton: 2007:102)

HOTSPOT SCENARIO FOR THE BUILDING INDUSTRYwww.strategicforum.co.za


83 © BMI-BRSCU

Forms an igniting purpose can take(Based on Gratton: 2007:102)

Develop deep strategic understanding of the Current Reality of the Building Industry Environment

Turning Data into Wisdom,Exposing Paradigm Blindspots, and challenging the Industry to REINVENT continuously.

Building: The Engine for Growth and Wealth Creation

Where does the Vision come from?



84 © BMI-BRSCU

Productive capacity

Alliances,Joint

Ventures

Cross functional

Networking

Enterprise Development,

BEE

Skills Training and

Development

Leadership,Lobbying,Advocacy

Modeling cooperative behaviour

REINVENTION

The Hot Spot Scenario: mapping emergence(Based on Gratton: 2007: 145)

Management Training and Development

PRIVATE SECTOR

Public Sector Labour



85 © BMI-BRSCU

Productive capacity

Alliances,Joint

Ventures

Cross functional

Networking

Enterprise Development,

BEE

Skills Training and

Development

Leadership,Lobbying,Advocacy

Modeling cooperative behaviour

REINVENTION

The Hot Spot Scenario: mapping emergence(Based on Gratton: 2007: 145)

Building: The Engine for Growth and Wealth

Creation.

Management Training and Development

PRIVATE SECTOR

Public Sector Labour

The GOLDEN Triangle

Research has indicated that we can create jobs in six

priority areas. These are infrastructuredevelopment, agriculture, mining and beneficiation,

manufacturing, the green economy and tourism.

We cannot create these jobs alone. We have to work with business, labour and the communityconstituencies. (Pres Jacob Zuma: SONA: 2011)

The Private Sector accounts for 56% of Building activity and the Public Sector 44%.

In Construction the Public Sector accounts for 65% of activity and the Private Sector 35%. (BMI-BRSCU estimates: 2011)

The Private Sector accounts for 56% of Building activity and the Public Sector 44%.

In Construction the Public Sector accounts for 65% of activity and the Private Sector 35%. (BMI-BRSCU estimates: 2011)



86 © BMI-BRSCU

Points of inflection in organisations: shifting from old rules to new(Gratton: 2007: 145)

The challenge for executives is that many are leading companies which are themselves at a point of inflection

The point of inflection occurs when what has served well in the past will not serve well in the future.



87


© BMI-BRSCU

The context in which we work has changed fundamentally as technology joins up the world and globalisation opens up new markets for capital, talent, products and services.

Many companies are beginning to approach the

apex of the first curve, when simply doing more of the same is not increasing the value of their companay.

To do so they will have to abandon some of the old rules, and begin to build competence and energy

around the new rules of the second curve.

Those that fail to do so will see a gradual but

consistent decline in the capacity to create value.

At the heart of the second curve are the rules of Hot

Spots – the idea that energy can be ignited, that

relationships and networks are crucial, that

commitments and conversations can replace

rules and directives.

This is no easy challenge. As leaders and members of

organisations, we often find ourselves at points of

inflection. What worked in the past is not working so

well anymore.



88


© BMI-BRSCU


Many companies are beginning to approach the

apex of the first curve, when simply doing more of the same is not increasing the value of their companay.

To do so they will have to abandon some of the old rules, and begin to build competence and energy

around the new rules of the second curve.

Those that fail to do so will see a gradual but

consistent decline in the capacity to create value.

At the heart of the second curve are the rules of Hot

Spots – the idea that energy can be ignited, that

relationships and networks are crucial, that

commitments and conversations can replace

rules and directives.

This is no easy challenge. As leaders and members of

organisations, we often find ourselves at points of

inflection. What worked in the past is not working so

well anymore.



Real progress demands a revolution. You can’t shuffle your way onto the next S Curve. You have to leap. You have to vault over your preconceived notions, over everyone’s best practices, over the advice of all the experts, and over your own doubts. (Gary Hamel, The Future of Management: 2008)


89 © BMI-BRSCU

NATIONAL ISSUES

GROWTH WEALTHEMPLOYMENT PROPERTY

ORGANISATION’S ROLE

INVESTMENT ENVIRONMENT

MARKETING LOGISTICS

VISIONBuilding is the engine for growth and wealth creation through Property Ownership and THE ORGANISATION is the preferred Partner for good as the green BUILDING solution of choice.

MANUFACTURING

BUILDING INDUSTRY AN ENGINE OF GROWTH

REINVENTIONDoing well while

doing good.

REINVENTIONDoing well while

doing good.

YESTERDAY’S ECONOMY

TOMORROW’SECONOMY

NARROW FOCUS ON COMPANY

NARROW FOCUS ON COMPANY

BROAD FOCUS ON CONTRIBUTION TO NATIONAL ISSUES

BROAD FOCUS ON CONTRIBUTION TO NATIONAL ISSUES

Overarching vision aligned with National Issues, adapted and customised by the organisation for their own vision and values. MISSION

Developing and growing competitive awareness, knowledge and support of END USERS and maintaining consistent standards in the environmentally friendly production of PRODUCTS for good value and performance in building.

VALUESThe Organisation has an igniting vision, a culture, or mind set of co-operation, collaboration and cross-boundary networking; and a production capability to facilitate delivery of fit for purpose products and

solutions and based on the unashamedly ethical values and code of conduct of:• Respect• Responsibility• Honesty• Integrity• Accountability• Collaboration

BORROWBUY BURN

ENVIRONMENTALSUSTAINABILITY

SOCIALSUSTAINABILITY

ECONOMICSUSTAINABILITY



90 © BMI-BRSCU

TowardsBuilding: The Engine for Growth and Wealth Creation

Dr. Llewellyn B. LewisNovember 2011

THE STRATEGIC FORUM

A place of assembly for strategic conversations

THE STRATEGIC FORUMwww.strategicforum.co.za

BMI




Reg. No. 2002/105109/23

•BMI




•BMI

•BMI

•BMI

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Reg. No. 2002/105109/23

•BMI




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the use of social media in disseminating information and sensemaking sf nov 2011

Business

stakeholder analysisattack

stakeholder analysisi

stakeholder analysis9

stakeholder analysis11

new tools

new mindset

global playing field

poverty fromthis world