Global Performance Report 2016-17
Q4
rics.org
Introduction Market adoption and demand for our standards is central to enhancing and promoting the value and long-term relevance of the profession. We recognise our profession’s central role in shaping and building the world around us for future generations. We take pride in the public interest role embedded in our Royal Charter and we value the trust and confidence society places in us to set and enforce professional standards. We believe demand for our profession will continue to grow as the forecast pace of global urbanisation builds to 2050, coupled with an increasing and shifting population, climate change and rising pressures on food, water and energy supplies. Professionals must lead the way in addressing these trends, working to consistent technical standards and upholding the highest standards of ethics. A willing acceptance of and adherence to independent self-regulation and scrutiny distinguishes RICS and the profession around the world. As a body aspiring to create standards of global relevance, our collaboration with like-minded organisations is essential to set a framework of standards that will help us realise our vision to create confidence in markets and effect positive change in the built and natural environments. In June, we launched the first phase of our collaboration with the Australian Property Institute (API). More than 3,500 Australian valuers will sign up to RICS Valuer Registration from January 2018, doubling the number of professionals complying with our standards and regulation in Australia. In July, we were proud to launch International Construction Measurement Standards (ICMS) in Vancouver, along with 45 other professional bodies. Without it, governments and investors would continue to struggle to compare construction project costs with confidence.
2
Q4 - Global Performance Report 2016-17
As part of our collaboration with IFMA (the International Facility Management Association), we have positioned Facility Management (FM) as an attractive career, with support for professionals from entry level to advanced. The route to Chartered status opens doors for FM professionals to take on larger, international-facing roles as strategic leaders with opportunities to stand out in the wider real estate and built environment sectors. Our latest six-monthly survey of the profession (July 2017) shows that pride amongst the profession remains very high at 89%, with the profession retaining high levels of confidence in RICS’ self-regulation at 83%. Across a range of measures there are differences across generations. Younger members of the profession expressed higher levels of satisfaction and agreement than those born before 1980 (see page 5). Our worldwide audit of perceptions of our brand and the profession’s contribution amongst external stakeholders, including major end-users, employers and governments, shows an upward trend with 83% agreeing with RICS’ direction (from 74% in 2016) and 77% agreeing that RICS is showing thought leadership on globally significant issues (from 66% in 2016). One of our organisational priorities was to implement a new property strategy for our existing operations in Coventry so that our workplace facilities provide greater flexibility to
adapt and support our desire to embrace new digital ways of working and unlock access to a greater potential future workforce. We also wanted to achieve greater brand prominence and become more market facing. With our advisers, we have concluded that a move to new premises in Birmingham City Centre supports the strategy, and we hope to complete the move by the end of this year. This Q4 report is a summary of RICS’ worldwide performance against our objectives and strategic goals in the fourth quarter of the 2016/2017 financial year (May 2017 – July 2017). It is available to all RICS professionals, employees and other key stakeholders. We welcome all comments on this report.
Paul Marcuse Chairman, RICS Management Board Sean Tompkins Chief Executive Officer, RICS e contactrics@rics.org t +44 (0)24 7686 8555
Context To achieve Governing Council’s vision, Management Board established seven long-term strategic goals for the 2016-19 business plan period:
Strategic goals: • Our Performance – Agile To improve our performance and agility to deliver globally against all our business plan objectives.
• Our Standards – Recognised To gain market recognition of RICS standards in the key economic and political centres of the world.
• Our Leadership – Endorsed To take a leadership role in the development, regulation and monitoring of standards.
• Our Reputation – Enhanced
“The profession needs to start thinking about buildings as business platforms and not just buildings anymore.” Philip Ross, UnGroup and Cordless Group Founder and CEO
To be a role model as a responsible organisation in the eyes of all our stakeholders.
• Our Role – Understood To ensure that the profession understands the direction of RICS and takes pride in its status.
• Our Profession – Trusted To grow the profession in strategically important markets.
• Our Product Range – Valued To ensure the profession continues to develop through the provision of leading-edge training, knowledge and information.
Q4 - Global Performance Report 2016-17
3
Key achievements this quarter Our top strategic goal: RICS standards and qualifications continue to be widely adopted and demanded
United Nations agencies and the World Bank view land acquisition and fair compensation as a major global issue, so International Land Measurement Standards (ILMS), as a principles-based land transfer and reporting enabling standard, has arrived at just the right time. The ILMS Standards Setting Committee met for a special session in Q4, making significant progress on the scope and remit of ILMS and on the technical aspects. The consultation draft is expected for autumn 2017 and global consultation expected in early 2018.
Governments: The Portuguese Government’s legislation to implement the EU’s Mortgage Credit Directive requires RICS standards and International Valuation Standards (IVS) to be applied.
New supporters and partners of the International Standards Coalitions include The Arab Union of Surveyors (covering 15 countries), The Association for the Advancement of Cost Engineering (AACE), Botswana Surveying and Mapping Association, Honos Property Pty Limited (Australia), International Cost Engineering Council, International Society of City and Regional Planners and JLL.
Employers and national bodies: AECOM (Dubai), Altus (Canada), ARUP, BTY Group (Canada), Fulcrum (US), Gleeds, and Turner and Townsend. Major end users: EY (US), The International Property Securities Exchange (UK), Link REIT, the first real estate investment trust listed in Hong Kong, Lloyds Bank, Rio Tinto (Asia), Schneider Global Smart Cities Division (Singapore) and Unilever. Members of this profession now sit on the boards of the six leading banks in the Netherlands.
Adoption of RICS Red Book European Central Bank guidelines on non-performing loans recognise the Red Book. HSBC (Poland) has adopted the Red Book as the sole standard in commercial property valuation reports and Bank of China has confirmed its use of the Red Book in the UK. The National Australia Bank has adopted the Red Book for all valuations relating to mortgage loans, and our partnership with the Australian Property Institute will result in more than 3,500 new valuers adopting the Red Book as the standard.
Standards we are developing International Construction Measurement Standards (ICMS) launched in Vancouver in July. ICMS, delivered through professionals, promises to reduce risk by giving clear and comparative figures on project cost. Early adopters include ARUP, Turner & Townsend, Arcadis, Network Rail (UK), Faithful & Gould, Gardiner and Theobald, Gleeds, RLB and EY.
4
Q4 - Global Performance Report 2016-17
Influence We welcomed some 450 experts and decision makers to our annual Americas and UK Summits in Chicago and London. Both events feed into RICS’ World Built Environment Forum. Topics included land use, infrastructure development and trends driving growth in the USA and UK. Delegates discussed how Blockchain technology might drive the move to digital currency, its impact on the property sector and how wellbeing is driving a transformation in workplace and living space requirements. In addition: - We presented international standards on construction measurement, land measurement, ethics, and valuation to over 800 surveying delegates at the International Federation of Surveyors (FIG) Working Week in Helsinki in June. - The European Commission requested RICS participation in webinars on the impact of energy efficiency on mortgages. - The UK Government invited RICS President Amanda Clack onto its Independent Expert Advisory Group following the Grenfell Tower fire. - We continued to strengthen our profile in risk management with further Risk Management Forum meetings of industry leaders in Europe, Asia and North America.
Our performance in numbers We regularly survey both the profession and key external stakeholders to continually assess relevance across a number of areas. External stakeholder sentiment increased over the previous year and there were marked generational differences in the views of the profession itself. We are carrying out further analysis to gain deeper insight into these differences.
Survey of the profession July 2017 Proud to be a member of RICS
Global (%)
89
Age 22-37 (%)
91
92
Age 38 plus (%)
89
90
Stakeholder survey June 2017
84% 79% July 2016
Agree with what RICS is trying to achieve
70
81
84
67
68
RICS effectively regulates the profession
83
86
89
81
81
understand what RICS is trying to achieve
83% 74% July 2016
agree with what RICS is trying to do
RICS acts responsibly as an organisation
88
81
92
87
85
RICS increases the status and recognition of professional standards
72
77
81
75
70
RICS shows leading-edge thinking on issues of global significance
64
70
72
62
63
82% 82% July 2016
agree RICS increases status and recognition of professional standards
77% 66% July 2016
Recommend joining RICS to a friend or colleague
81
88
85
81
Profession statistics based on weighted responses from 6,090 RICS professionals in May/June/July 2017 online survey, percentages shown are averages.
80
believe RICS shows leading-edge thinking on issues of global significance Based on interviews with 376 global senior stakeholders from commercial, government, academic and media sectors in June/July 2017
Q4 - Global Performance Report 2016-17
5
65,874
receive RICS News globally
82,002 followers on Twitter
78,006
people in the global LinkedIn group and 58,388 followers
23,301 fans on Facebook
4,153
followers on Instagram
3,271
subscribers on YouTube
6
Q4 - Global Performance Report 2016-17
“As we continue to grow and build, it is important that we do so in a manner that balances sustainability with prosperity.” Justin Trudeau, Prime Minister of Canada, at the ICMS launch conference.
7,480 trainees embarked on the journey to become professionally qualified
5,136
new professionals were awarded RICS designations in the financial year
106,781
RICS-qualified professionals worldwide
11,753 22%
Gender diversity improved to for both trainees and newly qualified
Operating surplus in excess of
£2 million (subject to external audit)
providing the ability to continue to reinvest in our vision
55%
of newly qualified professionals are based outside the UK and Ireland, notably mainland Europe (15%), China (14%), East Asia (6%) and South Asia (7%)
candidates (in 104 countries) now using our online assessment resource to prepare for their professional assessments
99% of service complaints resolved within five days
Q4 - Global Performance Report 2016-17
7
Confidence through professional standards
We accredit 125,000 professionals and any individual or firm registered with RICS is subject to our quality assurance. Their expertise covers property, asset valuation and real estate management; the costing and leadership of construction projects; the development of infrastructure; and the management of natural resources, such as mining, farms and woodland. From environmental assessments and building controls to negotiating land rights in an emerging economy; if our professionals are involved the same standards and ethics apply.
We believe that standards underpin effective markets. With up to seventy per cent of the world’s wealth bound up in land and real estate, our sector is vital to economic development, helping to support stable, sustainable investment and growth around the globe. With offices covering the major political and financial centres of the world, our market presence means we are ideally placed to influence policy and embed professional standards. We work at a cross-governmental level, delivering international standards that will support a safe and vibrant marketplace in land, real estate, construction and infrastructure, for the benefit of all. We are proud of our reputation and we guard it fiercely, so clients who work with an RICS professional can have confidence in the quality and ethics of the services they receive.
United Kingdom RICS HQ
Ireland
Europe
Middle East
Africa
Americas
Parliament Square, London SW1P 3AD United Kingdom t +44 (0)24 7686 8555 f +44 (0)20 7334 3811 contactrics@rics.org Media enquiries pressoffice@rics.org
38 Merrion Square, Dublin 2, Ireland t +353 1 644 5500 f +353 1 661 1797 ricsireland@rics.org
(excluding UK and Ireland) Rue Ducale 67, 1000 Brussels, Belgium t +32 2 733 10 19 f +32 2 742 97 48 ricseurope@rics.org
Office B303, The Design House, Sufouh Gardens, Dubai, UAE PO Box 502986 t +971 4 446 2808 ricsmena@rics.org
PO Box 3400, Witkoppen 2068, South Africa t +27 11 467 2857 f +27 86 514 0655 ricsafrica@rics.org
One Grand Central Place, 60 East 42nd Street, Suite #542, New York 10165 – 2811, USA t +1 212 847 7400 f +1 212 847 7401 ricsamericas@rics.org
South America
Oceania
East Asia
China (Shanghai)
China (Beijing)
Japan
Rua Maranhão, 584 – cj 104, São Paulo – SP, Brasil t +55 11 2925 0068 ricsbrasil@rics.org
Suite 1, Level 9, 1 Castlereagh Street, Sydney NSW 2000. Australia t +61 2 9216 2333 f +61 2 9232 5591 oceania@rics.org
3707 Hopewell Centre, 183 Queen’s Road East Wanchai, Hong Kong t +852 2537 7117 f +852 2537 2756 ricseastasia@rics.org
Room 2006, Garden Square, 968 Beijing Road West, Shanghai, China t +86 21 5243 3090 f +86 21 5243 3091 ricschina@rics.org
Room 2507-2508B, Jing Guang Centre, No.1 Hu Jia Lou Road, Chaoyang District Beijing 100020, China t +86 10 6597 8586 f +86 10 6581 0021 ricschina@rics.org
Level 14 Hibiya Central Building, 1-2-9 Nishi Shimbashi Minato-Ku, Tokyo 105-0003, Japan t +81 3 5532 8813 f +81 3 5532 8814 ricsjapan@rics.org
ASEAN
South Asia
#27-16, International Plaza, 10 Anson Road, Singapore 079903 t +65 6812 8188 f +65 6221 9269 ricssingapore@rics.org
48 & 49 Centrum Plaza, Sector Road, Sector 53, Gurgaon – 122002, India t +91 124 459 5400 f +91 124 459 5402 ricsindia@rics.org
GLOBAL/SEPTEMBER 2017/DML/22471/QUARTERLY REPORT Q4
RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve.