MANAGEMENT FOR DESIGN SUMMER RELEASE 2019
Business Conditions Survey According to our Annual Business Conditions Survey, Australian businesses in the Architecture, Engineering, and Built Environment Sector have an increased level of uncertainty for the year ahead. However, there is only a slight reduction in confidence levels from 12 months ago, as our respondents continue to remain optimistic moving forward. Have we turned a corner and we don’t know where that road is heading? Not according to our respondents (or not yet!)
Key insights from this year’s survey include: • After years of continuous increasing revenues, there is only a minor tapering in growth expectations for businesses in our industry • The overwhelming majority of our respondents are still expecting to improve their business performance over the next 3 years • Two-thirds of our respondents are still expecting to have a skills shortage moving forward If you would like to look at the full report and results, please click here.
Systems Survey How effective are your business systems and what should you be using? In November, we conducted an important business systems review of professional service businesses, in partnership with the Association of Consulting Architects Australia. This review was done to assess the use and effectiveness of the various business systems across the architecture, engineering, and consultants industry. There are a myriad of business management systems available to businesses and the industry to manage your finances, projects, clients, and documents. We have collated the results to review the effectiveness of business systems across accounting, time and invoicing, project control, resource management, contact/ client management, project information, and contract administration.
Insights from this year’s survey include: • Xero is the only accounting system considered “very effective” • There are a number of systems that manage time and invoicing that are considered “effective” or “very effective” • There are many project control systems that are used and not considered “effective” • 41% of respondents did not have a resource management system in place • Almost 60% of businesses don’t have a system for managing client relationships • More than 40% of businesses don’t have a formal document management system • There are no systems across project control, resource management, and client management that are consistently rated “very effective” by our respondents To view the full report and results, please click here.
The Growth of BIM When seeking to achieve excellence in the engineering, architecture, design, or consulting industry, businesses can never rest on their laurels. What was cutting edge one day, will quickly become the standard, and then before long you’re using a legacy system that’s been superseded. Building Information Modelling (BIM), is a term that you’re already familiar with, however few Australian firms have truly integrated it into their way of working. And while Australia still has a long way to go before mandating BIM on a national scale, the direction the industry is heading is clear, with plenty to gain for motivated and proactive technology focused practices. From a business standpoint, multiple studies have found that BIM implementation can result in positive ROI for practices through:
• Faster and more efficient processes • Increased productivity and speeds up delivery • Reduced uncertainty • Controlled whole-life costs and environmental data • Avoidance of rework costs • Improved safety; opportunity to secure government contracts • Reduced on-site waste • The prevention of errors. To really understand the importance of BIM, it’s necessary to understand that it’s more than just a tool or software, but an evolving system for managing the entire life-cycle of infrastructure and buildings. BIM’s scope and scale will grow through staged developments, commonly referred to as the “dimensions” of BIM.
The current and conventional model of three-dimensional (3D) BIM is evolving into a 4D, 5D, 6D, or even 7D model, and, in the future, eight-dimensional (8D) versions based on the application of PLM (Product Lifecycle Management) to construction. This solution is known as BLM (Building Lifecycle Management) or unified project management. • 4D: A virtual model of the built structure with construction plans and work progress control capability; with additional possibility to prospectively visualize a virtually constructed building in any moment in time. • 5D: Cost data is fed into a 3D model, coupled with the construction schedule. Benefits of the fifth dimension of BIM may consist in the higher precision and predictability of changes occurring in the project together with a more reliable cost analysis of different construction scenarios. • 6D: Introduction of sustainable development principles into the investment process with an emphasis on energy efficiency. The sixth dimension of BIM allows for obtaining information about the building’s projected energy consumption at a very early (concept) stage. • 7D: Integration of the Facility Management concept into BIM. It allows tracking of the status of given building components, their specifications and guarantee periods. The seventh dimension of BIM encompasses the management of the full life cycle of a building from the concept to the demolition. • 8D: Supplementing the model with security and healthcare information. This dimension focuses on three tasks: identification of threats resulting from chosen design and construction solutions, indication of alternatives to the riskiest solutions, signalling the need to control specific risks on the construction site. [Reizgevicius, M.; Ustinovicius, L.; Cibulskiene, D.; Kutut, V.; and Nazarko, L. ‘Promoting Sustainability through investment in Building Information Modelling (BIM) Technologies: A Design Company Perspective’, 2018.]
With the rise of this level of data and the integration of Geographic Information Systems (GIS), it’s reasonable to assume that entire neighbourhoods and public infrastructure will eventually share data, creating entire cities managed under these types of models, totally revolutionising all aspects of the built environment. This emerging idea is becoming known as city information modelling (CIM). BIM Standards The UK is really at the forefront of BIM adaptation. The British Standards Institution (BSI) has started to publish international standards for building information modelling (BIM), the first two of which were published in 2018, with the second two due for release in 2020. Management for Design will be hosting a event in Sydney in the coming months, aimed at helping you to realise the potential of BIM in your business. If you’re interested in attending one of our events, would like to learn more, please contact Dinesh Rajalingam on DRajalingam@m4d.com.au.
An Insider’s Guide to the Property Market Networking Event At the end of 2018, we were excited to welcome back Andrew Leoncelli, industry-leading, Managing Director of Residential Projects Victoria at CBRE, for An Insider’s View of the Property Market. This was a follow up to an event we conducted a year before, and again it was both insightful and engaging. With the residential industry under pressure from challenges such as tax increases, tighter controls on personal expenses-serviceability, and lending restrictions on foreign purchases of real estate, Andrew maintained that Melbourne’s macro fundamentals were very positive, and should prove resilient. We’d like to thank everyone who joined us for the event, it was fantastic to talk to you all. To ensure you hear about upcoming events, please subscribe to our newsletter here.
Management for Design Global Expansion Management for Design are excited to announce that we have recently expanded our presence in Australia and globally with our people now based in Brisbane and London.
Being close to our clients is a core component of our strategy of delivering the best outcomes. Known for our expertise in Financial and Business Management, Technology, Business Systems, and Leadership Development, our teams in Brisbane and London will play a key role in assisting our clients to focus “on their core capabilities of designing and delivering deliver great work” enabling them to build successful and sustainable businesses. “Establishing a physical presence in London is an exciting development for us, and one that positions us to continue to grow our influence and service offerings. London is a bridge to the world and a central hub for Architecture, Engineering, BIM, Finance, and Technology,“ said Carla Dexheimer, M4D Finance Director. “We are now closer to the challenges of clients in the region and this will allow us to be even more responsive to our clients’ needs, particularly at an uncertain time as businesses navigate challenges following the U.K.’s vote to exit the European Union,” Carla said. As part of establishing a physical presence in London and Brisbane, Management for Design will be: • Expanding the number of people in the region: One of our key people, Swan Ong, has recently relocated to London to spearhead our operation. Swan is an expert in Financial Management and the link between accurate, timely information and business performance • Running more events: For example, Management for Design recently presented at London Build on the “Profitability and Growth for Architects”. We will be conducting follow up events into the New year
• Increasing thought leadership output specific to the region: This will entail research specific to the market on topics around leading through digital transformation and other aspects of business leadership Being experts in Technology and Innovation has allowed us to quickly and seamlessly build the infrastructure and capability to enable us to provide our services anywhere, anytime We look forward to extending the partnerships we’ve been privileged to build with clients here — and to working with many new leaders and organizations as well. As Management for Design continues to expand into the global market, our clients and company culture will remain the priority.
Resourcing Re-imagined
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The recruitment industry needs a shake up — it needs to be disrupted
” Are you... • Tired of recruitment agencies • Tired of paying 10-25% placement fees • Tired of not getting the right candidates • Tired of your new people not being the same person you interviewed and appointed • Tired of not getting a return on your investment • Tired of “placement guarantees” • Tired of your new people not having the skills and capability you thought you were getting • Tired of paying upfront fees
• Tired of paying fees before you realise you chose the wrong person • Tired of all care—no responsibility • Tired of the work involved • Tired of nothing changing. So were we... That was until we re-imagined how the recruitment industry should work • Forget endless CV’s—that aren’t accurate • Forget LinkedIn—that’s written by the candidate • Forget references—who ever provided a “bad reference” • Forget trawling through endless CVs and conducting untold interviews • Forget making a decision on your most important asset based on a one-hour conversation (no matter how good that is) • Forget making an assessment based on psychometric test There is a new way. And this is how it works: • We partner with you—think of us as your in-house recruitment manager • By partnering with you we guarantee that we will improve the calibre of your people • You pay after the candidate work outs • You don’t have to attend endless interviews • We test and assess behaviours in real time situations • We assess your candidates for business acumen, communication, Project management, management (time and people), capability, and cultural fit • We work with you to develop your people after you have employed them Who does this for you? No one except us! Contact Robert Peake or Gordana Milosevska at Management for Design—your recruitment business partner—if you agree there is a better way forward.
Reading List Freakonomics: A Rogue Economist Explores the Hidden Side of Everything Steven D. Levitt Freakonomics is at the heart of everything we see and do and the subjects that bedevil us daily: from parenting to crime, sport to politics, fat to cheating, fear to traffic jams.
Key Person of Influence Daniel Priestley Many people think it takes decades of hard work, academic qualifications and a generous measure of good luck to become a Key Person of Influence. This book shows you that there is a five-step strategy for fast-tracking your way to the inner circle of the industry you love.
Making It Happen: Reflections on Leadership John Harvey Jones Reflecting on his years as chairman of ICI, and on his experience of leadership in the Royal Navy, the author offers common sense advice on all aspects of business life and management.
Mastery Robert Grene Around the globe, people are facing the same problem- that we are born as individuals but are forced to conform to the rules of society if we want to succeed. To see our uniqueness expressed in our achievements, we must first learn the rules- and then how to change them completely.
The Old Ways: A Journey on Foot Robert Macfarlane The genre-defining book by acclaimed nature writer Robert Macfarlane: travel Britain’s ancient paths and discover the secrets of this beautiful, under appreciated landscape.
Photo John Gollings
