1) The New Economic Model has exposed serious shortcomings. This is useful as it enables some clear identification of what needs to be done.
2) Over the past 30 years, Foreign Direct Investments (FDIs) have brought changes to the livelihoods of many in Malaysia. However, the country would now seem to need a range of different strategies.
3) The advantage of low cost is now with the likes of China and Vietnam. The small and medium sized enterprises (SMEs) have focused on serving the needs of the multinationals. This has lead to production efficiencies, but has not seen these businesses moving into the higher-value activites such as product design and research and development which would have been a driver for future revenues and growth.
4) If we look at what has been happening elsewhere in Asia, for example, South Korea and Taiwan, policies have been focused on domestic investment and niche strategies for growing their own multinationals and conglomerates. Examples are in automotive and shipbuilding sectors in Korea and semiconductors in Taiwan.
5) In many of these other Asian nations, FDI has supplemented domestic direct investment, unlike in many countries in SE Asia, like Malaysia, that has been too heavily reliant on FDIs.
Twitter Updates
The New Economic Model (NEM); the Challenge is in Implementation.
1. Part One of The New Economic Model, launched this week by the Primeminister of Malaysia, Datuk Seri Mohd Najib Tun Razak, provides a framework for drastic transformation, not only of the approach to the economy, but to the culture of the nation.
2. The private sector is expected to be in the driving seat of the economy. With a focus on seeking opportunities and competition regionally and internationally, the emphasis must be on "business friendly" policies and encouraging much more entrepreneurship. Liberalization will continue to promote greater productivity and efficiency. It is expected that the services sector will expand and lead the growth.
3. There is a skills shortage and what is needed are the right market-centric policies and incentives to get the country up to the higher income level. People with high level qualifications and skills have been leaving Malaysia. To help retain skilled personnel, the focus has to be on higher technology and value-added industries.
4. New business opportunities will be opened up in new technologies and automation. An example is telecommunications. Moving from basic call services through to Internet and data businesses. People in the telecommunications sector have had to develop and learn new skills to enable provision of these new services in an increasingly competitive market place.
5. Implementation of the new Model will demand a change in the "culture" for everyone, both in the public and private sectors. The business environment needs to be transformed. Corruption and inefficiencies in all sections of the economy will have to be tackled. This will require significant courage on behalf of the Government and people.
6. The benefits of the realization of a higher income economy to the "rakyat" (people) and "businesses" must be clearly communicated and understood.
7. For the "rakyat", the key messages would seem to be that with higher purchasing power comes a better quality of life, opportunities for upward mobility, better living and working conditions and an improved and sustainable environment and growth across the whole nation.
8. For the business community, the benefits should be greater efficiency, improved access to funds, (particularly for the SME), greater market transparency, fair market pricing and competition, a barrier free market place, and more opportunities for public-private partnerships.
9. The NEM is very bold and challenging. It demands the detailed attention of the business community, but in terms of implementation, it also requires a serious and determined approach on the part of the civil service.
10 In the words of the Senior Business Editor of The Star "A powerful issue to be addressed is skepticism on the ground, especially among the older generation that has long observed certain unsatisfactory developments or those who could have been subjected to a regime that favored certain ingrained practices of preferences. A proper model...is required in both private and public sectors, after taking into account all the stumbling blocks and impediments to change. ...the cultural and mindset of the past will require more time and possibly substantial effort to overcome age-old attitudes, mistrust and fear"
Key References
Download the New Economic Model Part 1
A growing resource of articles on the NEM from The Star newspaper
2. The private sector is expected to be in the driving seat of the economy. With a focus on seeking opportunities and competition regionally and internationally, the emphasis must be on "business friendly" policies and encouraging much more entrepreneurship. Liberalization will continue to promote greater productivity and efficiency. It is expected that the services sector will expand and lead the growth.
3. There is a skills shortage and what is needed are the right market-centric policies and incentives to get the country up to the higher income level. People with high level qualifications and skills have been leaving Malaysia. To help retain skilled personnel, the focus has to be on higher technology and value-added industries.
4. New business opportunities will be opened up in new technologies and automation. An example is telecommunications. Moving from basic call services through to Internet and data businesses. People in the telecommunications sector have had to develop and learn new skills to enable provision of these new services in an increasingly competitive market place.
5. Implementation of the new Model will demand a change in the "culture" for everyone, both in the public and private sectors. The business environment needs to be transformed. Corruption and inefficiencies in all sections of the economy will have to be tackled. This will require significant courage on behalf of the Government and people.
6. The benefits of the realization of a higher income economy to the "rakyat" (people) and "businesses" must be clearly communicated and understood.
7. For the "rakyat", the key messages would seem to be that with higher purchasing power comes a better quality of life, opportunities for upward mobility, better living and working conditions and an improved and sustainable environment and growth across the whole nation.
8. For the business community, the benefits should be greater efficiency, improved access to funds, (particularly for the SME), greater market transparency, fair market pricing and competition, a barrier free market place, and more opportunities for public-private partnerships.
9. The NEM is very bold and challenging. It demands the detailed attention of the business community, but in terms of implementation, it also requires a serious and determined approach on the part of the civil service.
10 In the words of the Senior Business Editor of The Star "A powerful issue to be addressed is skepticism on the ground, especially among the older generation that has long observed certain unsatisfactory developments or those who could have been subjected to a regime that favored certain ingrained practices of preferences. A proper model...is required in both private and public sectors, after taking into account all the stumbling blocks and impediments to change. ...the cultural and mindset of the past will require more time and possibly substantial effort to overcome age-old attitudes, mistrust and fear"
Key References
Download the New Economic Model Part 1
A growing resource of articles on the NEM from The Star newspaper
New CIOB Report Stresses Key Role of the Built Environment in the New Economy
A timely new report from the Chartered Institute of Building provides a practical agenda for the Industry and Government. The following is a brief summary of the key points.
To deliver "a low carbon economy and provide a 'value for money' return on investment in relation to the built environment, the industry in partnership with government must strive to achieve the following goals:
- Maintain construction commitments in programmes such as education and infrastructure renewal to achieve long term national economic benefits.
- Promote future job creation and skills development in the workforce by sustaining training and apprenticeships during the economic downturn.
- Secure 'value for money' by properly resourced maintenance programmes, quality design and construction and efficient procurement processes
- Balance speed and fairness in the planning system at al levels, from the massive changes needed to facilitate large-scale power generation through to the local level.
- Achieve carbon reduction targets and job creation by pro-actively upgrading the energy efficiency of the existing building stock, a self financing exercise as long term savings result.
- Support construction by means of a smoothly run financial system backed by policies on taxation which promote enterprise and growth.
- Think in longer time frames to achieve the long term changes we need in transport, energy and sustainability, as opposed to stop/start cycles.
- Appoint a full-time Minister of Construction and give the new Chief Construction Adviser a fully resourced office to achieve a 'joined up' approach which will back up major government programmes in housing, education, health, infrastructure and carbon reduction.
- Promote access to construction jobs to all sections of society to achieve a diverse vibrant industry.
- Pursue a policy of zero tolerance of fatalities and injuries." CLICK HERE FOR A LINK TO THE FULL REPORT
Announcement
I am very pleased to announce that I have accepted an offer of the post of Professor from Universiti Teknologi Malaysia (UTM).
My appointment will commence in July 2010 and I will be based at the Business Advanced Techology Centre (BATC), International Campus, Kuala Lumpur, Malaysia.
It has been a very rewarding and productive two years with the Department of Quantity Surveying in the Kulliyyah of Architecture and Environmental Design, International Islamic University Malaysia (IIUM).
Since 2008 I have been engaged in a number of important projects. Most notably these have included, the launch of the Journal of Quantity Surveying & Construction Business, and the organisation and hosting of three international conferences (QS Academia, Construction in the Muslim World and the 5th Joint Ventures in Construction conference in collaboration with Kyoto University, Japan).
In addition, I have enjoyed being involved in the on-going development of a new Masters programme in Quantity Surveying, and research projects under the Procurement and Project Delivery System Research Unit.
I would like to thank the Dean and all colleagues in the Kulliyyah for their help and support.
I would especially like to pay tribute to Professor Sr Dr Khairuddin Abdul Rashid for his leadership, encouragement and friendship. I hope we can continue some of our projects and collaborate in the future.
Last, but by no means least, I would like to wish all the best to the past and present students and graduates of IIUM. I have enjoyed teaching you, organizing your visits, (we always seemed to be going to JB and Singapore for some reason), and supervising your final year projects. I hope we will all keep in touch through Facebook! Thankyou and Salam.
My appointment will commence in July 2010 and I will be based at the Business Advanced Techology Centre (BATC), International Campus, Kuala Lumpur, Malaysia.
It has been a very rewarding and productive two years with the Department of Quantity Surveying in the Kulliyyah of Architecture and Environmental Design, International Islamic University Malaysia (IIUM).
Since 2008 I have been engaged in a number of important projects. Most notably these have included, the launch of the Journal of Quantity Surveying & Construction Business, and the organisation and hosting of three international conferences (QS Academia, Construction in the Muslim World and the 5th Joint Ventures in Construction conference in collaboration with Kyoto University, Japan).
In addition, I have enjoyed being involved in the on-going development of a new Masters programme in Quantity Surveying, and research projects under the Procurement and Project Delivery System Research Unit.
I would like to thank the Dean and all colleagues in the Kulliyyah for their help and support.
I would especially like to pay tribute to Professor Sr Dr Khairuddin Abdul Rashid for his leadership, encouragement and friendship. I hope we can continue some of our projects and collaborate in the future.
Last, but by no means least, I would like to wish all the best to the past and present students and graduates of IIUM. I have enjoyed teaching you, organizing your visits, (we always seemed to be going to JB and Singapore for some reason), and supervising your final year projects. I hope we will all keep in touch through Facebook! Thankyou and Salam.
Importance of Collaboration Between Academia & Industry For the Future of Construction Research (PART 2)
1. Types of Academic/Industrial Collaboration - Two appropriate models; Continuing Education, Research
2. One of the core competencies of academic institutions is teaching. Many institutes engaged in education at the high end, have the courseware and ability to provide training for high-end manpower development. Therefore, a natural collaboration possibility is for the academic faculty and institutes to conduct training in topics of interest for industry. This model has existed for a long time and is reasonably well understood. This form of relationship is also beneficial to both.
3. Today in the world driven by Intellectual Property, there is an increased interest in collaboration in the area of research. For the purposes of our discussion, research can be considered as the activity of creating new knowledge. Though academicians in most good institutes engage in research, collaboration in this area is possible only if the industry has a need for research. Though the goal of research is to create new knowledge, the purpose of research in a company is to create new knowledge that can be used to improve the business.
2. One of the core competencies of academic institutions is teaching. Many institutes engaged in education at the high end, have the courseware and ability to provide training for high-end manpower development. Therefore, a natural collaboration possibility is for the academic faculty and institutes to conduct training in topics of interest for industry. This model has existed for a long time and is reasonably well understood. This form of relationship is also beneficial to both.
3. Today in the world driven by Intellectual Property, there is an increased interest in collaboration in the area of research. For the purposes of our discussion, research can be considered as the activity of creating new knowledge. Though academicians in most good institutes engage in research, collaboration in this area is possible only if the industry has a need for research. Though the goal of research is to create new knowledge, the purpose of research in a company is to create new knowledge that can be used to improve the business.
Importance of Collaboration Between Academia & Industry For the Future of Construction Research (PART 1)
1. Why do we need collaboration? What are the benefits? How can we do it? What are the challenges to be overcome? SOME PRACTICAL CONSIDERTATIONS IN TERMS OF COLLABORATIVE WORKING...
2. "Collaboration between industry and academia will continue to play an increasingly central role in helping us deliver on our shared vision for the future of technology…..Microsoft is constantly deepening its partnership with academia, and is committed to jointly developing new ideas and solving many of the key challenges in computing.“ Bill Gates 24 July 2001
3. What is the “shared vision” in construction?
4. Since October 2001, the UK has invested almost 300 million GBP (444 million euro) in knowledge transfer, enabling universities, colleges and hospitals to increase their research and development potential and build strong links with industry. 213 new spin-off companies were set up in 2005, compared to an average of 70 a year before the Higher Education Innovation Fund was set up. The turnover of spin-off firms increased from 212 to 289 million GBP (314 to 428 million euro), while the number of people employed by such companies went from 10,500 to 12,000. Furthermore, over the same period, the income received from intellectual property by Higher Education Institutions (HEIs) increased by 83 per cent, and the number of patents recorded by HEIs rose by eight per cent. HEI income from contract research for business increased from 266 to 328 million GBP (394 to 485 million euro), while HEI income from consultancy increased from 103 to 122 million GBP (152 to 181 million euro).
5. 'Such encouraging results demonstrate what universities and business can achieve when they work together,' Alan Johnson, Minister for Lifelong Learning, Further and Higher Education.
…….'We have always maintained our commitment to encouraging effective university-business collaboration. I am confident that the increased resources we are providing through the Higher Education Innovation Fund will go a long way in boosting and increasing the success already recorded in this area‘…..
6. The Research Assessment Exercise (RAE) – a bigger driver for the “research-led” universities
A significant part of the assessment related to involvement with Industry in terms of research
Those Departments/Universities that scored highly had significant involvement with Industry through research projects.
2. "Collaboration between industry and academia will continue to play an increasingly central role in helping us deliver on our shared vision for the future of technology…..Microsoft is constantly deepening its partnership with academia, and is committed to jointly developing new ideas and solving many of the key challenges in computing.“ Bill Gates 24 July 2001
3. What is the “shared vision” in construction?
4. Since October 2001, the UK has invested almost 300 million GBP (444 million euro) in knowledge transfer, enabling universities, colleges and hospitals to increase their research and development potential and build strong links with industry. 213 new spin-off companies were set up in 2005, compared to an average of 70 a year before the Higher Education Innovation Fund was set up. The turnover of spin-off firms increased from 212 to 289 million GBP (314 to 428 million euro), while the number of people employed by such companies went from 10,500 to 12,000. Furthermore, over the same period, the income received from intellectual property by Higher Education Institutions (HEIs) increased by 83 per cent, and the number of patents recorded by HEIs rose by eight per cent. HEI income from contract research for business increased from 266 to 328 million GBP (394 to 485 million euro), while HEI income from consultancy increased from 103 to 122 million GBP (152 to 181 million euro).
5. 'Such encouraging results demonstrate what universities and business can achieve when they work together,' Alan Johnson, Minister for Lifelong Learning, Further and Higher Education.
…….'We have always maintained our commitment to encouraging effective university-business collaboration. I am confident that the increased resources we are providing through the Higher Education Innovation Fund will go a long way in boosting and increasing the success already recorded in this area‘…..
6. The Research Assessment Exercise (RAE) – a bigger driver for the “research-led” universities
A significant part of the assessment related to involvement with Industry in terms of research
Those Departments/Universities that scored highly had significant involvement with Industry through research projects.
Up-date on Iskandar Development Zone in South Johor
In my previous message I mentioned the special economic zones in Malaysia and specifically Iskandar.
The special economic zone of Iskandar Malaysia grew out of a 2005 government requested feasibility study by the Khazanah Nasional which found that the development of such a zone would be economically, socially and developmentally beneficial.
A series of informative articles have appeared in the Star Online Business today as follows;
From Vision To Action
Johor MB's Views on Iskandar
How Khazanah Masterminded Iskandar
Iskanda Investments Change Strategies
UEM Land's Aspirations for Iskandar
FOR FURTHER INFORMATION ON THE SPECIAL ECONOMIC ZONES
Northern Corridor Economic Region
East Coast Economic Region
Sabah Development Corridor
Sarawak Corridor of Renewable Energy
The special economic zone of Iskandar Malaysia grew out of a 2005 government requested feasibility study by the Khazanah Nasional which found that the development of such a zone would be economically, socially and developmentally beneficial.
A series of informative articles have appeared in the Star Online Business today as follows;
From Vision To Action
Johor MB's Views on Iskandar
How Khazanah Masterminded Iskandar
Iskanda Investments Change Strategies
UEM Land's Aspirations for Iskandar
FOR FURTHER INFORMATION ON THE SPECIAL ECONOMIC ZONES
Northern Corridor Economic Region
East Coast Economic Region
Sabah Development Corridor
Sarawak Corridor of Renewable Energy
Malaysia's marketing opportunities and biggest challenges
1. Despite recent events that have been broadcast far and wide, Malaysia is still considered to be a safe, peaceful and happy place to live.
2. Malaysia's greatest strength has to be it's people who want continued economic development. There are many marketing opportunities for this country which hopefully will be part of the realisation of the "new economic model". But these opportunities mean facing up to some big challenges. For example, a lack of a highly skilled workforce, too little research and development, an over-dependence on oil revenue, not enough innovation and creativity in the private sector.
3. How can Malaysia become a high income nation based on innovation?
2. Malaysia's greatest strength has to be it's people who want continued economic development. There are many marketing opportunities for this country which hopefully will be part of the realisation of the "new economic model". But these opportunities mean facing up to some big challenges. For example, a lack of a highly skilled workforce, too little research and development, an over-dependence on oil revenue, not enough innovation and creativity in the private sector.
3. How can Malaysia become a high income nation based on innovation?
Reputation = Performance = Reputation
1. Good reputation in business, particularly for professional and contractual services in the construction sector, is crucial.
2. A corporate reputation takes ages to develop and preserve, and yet can be weakened or destroyed over night.
3. The reputation of the construction industry has been very poor. Perhaps it is misunderstanding or ignorance of what this important sector contributes to the economy and society as a whole. This could be due to media preoccupation with the "disasters" and bad news stories.
4. There is no doubt that "people" and "communities", which include our key business stakeholders, have the impression that construction is poor value for money, polluting and corrupt.
5. Many construction businesses are finding the market environment to be tougher, and competition intense, due to economic downturn. This will continue for some time to come.
2. A corporate reputation takes ages to develop and preserve, and yet can be weakened or destroyed over night.
3. The reputation of the construction industry has been very poor. Perhaps it is misunderstanding or ignorance of what this important sector contributes to the economy and society as a whole. This could be due to media preoccupation with the "disasters" and bad news stories.
4. There is no doubt that "people" and "communities", which include our key business stakeholders, have the impression that construction is poor value for money, polluting and corrupt.
5. Many construction businesses are finding the market environment to be tougher, and competition intense, due to economic downturn. This will continue for some time to come.
A new year - challenges and opportunities
1. 2009 was a challenging year for the economies of most countries across the globe. Whilst the financial crisis started in the last quarter of 2008, its impact was felt by the middle of last year.
2. Many companies were resilient and have survived so far.
3. For the Malaysian economy, foreign direct investments (FDIs) have been relatively low for the whole of the last decade. The average FDI being about 4% compared to Singapore, Thailand, Indonesia and Vietnam, whose performance was in the region of 15% to 25%.
4. Increased FDI's leads to an increase in skilled expatriate population, generate more demand for housing and office space and higher value employment opportunities.
5. Malaysia's global competitiveness is also affected by security, government delivery systems, corruption, market size, productivity of the workforce etc.
2. Many companies were resilient and have survived so far.
3. For the Malaysian economy, foreign direct investments (FDIs) have been relatively low for the whole of the last decade. The average FDI being about 4% compared to Singapore, Thailand, Indonesia and Vietnam, whose performance was in the region of 15% to 25%.
4. Increased FDI's leads to an increase in skilled expatriate population, generate more demand for housing and office space and higher value employment opportunities.
5. Malaysia's global competitiveness is also affected by security, government delivery systems, corruption, market size, productivity of the workforce etc.
How can we stop the corruption pandemic?
Corruption is like a virus that continues to spread throughout the developed and developing nations of the world. Corrupt practices in the construction industry include bribery and fraud throughout all phases of a project.
In an industry as important as construction, with a local and increasingly global reach, the impact of corruption is significant.
Corruption is bad for the economies of developed and developing countries. It can result in projects that are unnecessary, unsuitable and defective. Commonly important development work is over-priced, severely delayed and are bad for the reputation of their owners/clients, sponsors, contractors, consultants, suppliers and sub-contractors.
Corruption disadvantages those that finance and insure projects such as commercial banks, surety companies, guarantors etc. Corruption results in losses, false claims and reputational risk.
For the construction supply chain, corruption results in wasted tender expenses, increased project costs, economic damage, blackmail, criminal proceedings etc.
Individual directors, partners and managers within the project supply chain businesses, may face criminal prosecutions and loss of professional status.
In an industry as important as construction, with a local and increasingly global reach, the impact of corruption is significant.
Corruption is bad for the economies of developed and developing countries. It can result in projects that are unnecessary, unsuitable and defective. Commonly important development work is over-priced, severely delayed and are bad for the reputation of their owners/clients, sponsors, contractors, consultants, suppliers and sub-contractors.
Corruption disadvantages those that finance and insure projects such as commercial banks, surety companies, guarantors etc. Corruption results in losses, false claims and reputational risk.
For the construction supply chain, corruption results in wasted tender expenses, increased project costs, economic damage, blackmail, criminal proceedings etc.
Individual directors, partners and managers within the project supply chain businesses, may face criminal prosecutions and loss of professional status.
China Wins Gold in the Global Construction "Olympics"
The Engineering News Record's (ENR) annual ranking of the world's Top 225 Global Contractors has been published recently, and shows that the fastest growing bloc of national contractors that have increased their dominance in global construction are from the Peoples Republic of China. Six out of the top ten ranked according to total contracting revenues are from China as follows;
1) VINCI (France)
2) China Railway Group
3) Bouygues (France)
4) China Railway Construction Corp.
5) HOCHTIEF (Germany)
6) China State Construction Engineering Corp (CSCEC)
7) China Communications Construction Group
8) Grupo ACS (Spain)
9) China Metallurgical Group Corp
10)Bechtel (USA)
1) VINCI (France)
2) China Railway Group
3) Bouygues (France)
4) China Railway Construction Corp.
5) HOCHTIEF (Germany)
6) China State Construction Engineering Corp (CSCEC)
7) China Communications Construction Group
8) Grupo ACS (Spain)
9) China Metallurgical Group Corp
10)Bechtel (USA)
Two presentations at CIRIAC 2009
I am due to present two papers at the 2nd Construction Industry Research Achievement International Conference organised by the University of Malaya and the Construction Industry Development Board Malaysia. This will be held at the Legend Hotel in Kuala Lumpur between 3rd to 5th November 2009.
My papers are entitled "Approaches to Client Orientation in the Construction Industry" and "Corporate Social Responsibility Perspectives for Construction Organisations".
Link to conference website
My papers are entitled "Approaches to Client Orientation in the Construction Industry" and "Corporate Social Responsibility Perspectives for Construction Organisations".
Link to conference website
October Conferences in Malaysia 2009
We are pleased to announce that the Kulliyyah of Architecture and
Environmental Design (KAED) in collaboration with Kyoto University and
GCOE Programme of Kyoto University (Global Center for Education and
Research on Human Security Engineering for Asian Megacities)is hosting
the following conferences at the Kulliyyah of Architecture and Environmental Design(KAED)from 21st to 23rd October:-
1. Inaugural Construction in the Muslim World Conference(21st October
2009)
2. The 5th International Conference on Multi-National Joint Ventures for Construction Works (21st October and 22nd October 2009)
3. 2nd Construction, Law and Economics Circle in Asia & Pacific (CLECAP)International Conference(23rd October 2009)
Please find attached full details of the Conferences together with
registration form click here.
For further details, please click on the following websites:-
http://www.constructioninthemuslimworld.blogspot. com
http://psa2.kuciv.kyoto-u.ac.jp/5thjvconf2009/
http://www.gsm.kyoto-u.ac.jp/clecap/index.php/
For registration please contact Sis. Alhana/ Sis. Zurida at 03-61965266/ 5277 or email to kaed_qsconf@ iiu.edu.my
Environmental Design (KAED) in collaboration with Kyoto University and
GCOE Programme of Kyoto University (Global Center for Education and
Research on Human Security Engineering for Asian Megacities)is hosting
the following conferences at the Kulliyyah of Architecture and Environmental Design(KAED)from 21st to 23rd October:-
1. Inaugural Construction in the Muslim World Conference(21st October
2009)
2. The 5th International Conference on Multi-National Joint Ventures for Construction Works (21st October and 22nd October 2009)
3. 2nd Construction, Law and Economics Circle in Asia & Pacific (CLECAP)International Conference(23rd October 2009)
Please find attached full details of the Conferences together with
registration form click here.
For further details, please click on the following websites:-
http://www.constructioninthemuslimworld.blogspot. com
http://psa2.kuciv.kyoto-u.ac.jp/5thjvconf2009/
http://www.gsm.kyoto-u.ac.jp/clecap/index.php/
For registration please contact Sis. Alhana/ Sis. Zurida at 03-61965266/ 5277 or email to kaed_qsconf@ iiu.edu.my
How effective is your website?
This week I presented a paper to the 13th Pacific Association of Quantity Surveyors Congress in Kuala Lumpur where I revealed the results of on-going research investigating the brand/marketing management of QS practices in Malaysia, in particular the use of company websites. The paper and presentation will be available in full on the PAQS website shortly. (http://www.paqs.net/)
Why are we interested in QS practice websites?
The quantity surveying sector in Malaysia has become very competitive and fast moving. Quantity surveying businesses are faced with the challenge of professional regulation of their marketing approaches together with a need to communicate clear corporate brands with a range of potential stakeholders from existing and potential clients, to investors and potential recruits.
Website branding strategies are now a part of the marketing and corporate communication of any business. Recent research with QS practices in Malaysia has identified that websites are perceived as being an increasingly important part of the marketing mix (Preece, C N, Roziha, C H, Handzalah, A and Saiful, N M S 2008).
Download the Design & Construction Report
I discovered recently that one of my articles on my blog has been mentioned in a couple of places. First, in an online magazine called the "Design and Construction Report" (See http://www.dcnreport.com/choice.htm) and on another blog entitled "Construction Marketing Ideas"
(See http://constructionmarketingideas.blogspot.com/2009/06/branding-eh.html). Both these sources are based in the USA and stem from a number of very useful networks with thousands of business contacts. One that I have recently joined is called LinkedIn.com. There a many different groups on LinkedIn.com that are related to construction, management, design, quantity surveying etc.
Some cause for optimism?
As the World continues to deal with probably the worst economic depression in history, has a battle on it's hands with the H1N1 pandemic and is engaged in various on-going military conflicts, a review of the international economies in terms of construction opportunities may give some cause to be optimistic.
According to David Smith's article in the International Construction Review, and quoting research by IHS Global Insight, some sectors are proving to be more resistent to the spreading crisis.
Australia has huge natural resources and has benefited from demand from China. As China grows so does Australia. Even so, construction spending decelerated at the end of 2008 and business conditions are "subdued" and investors and banks are "cautious". The situtation in New Zealand is similar although the National Government has pledged to increase borrowing to fund major infrastructure projects.
According to David Smith's article in the International Construction Review, and quoting research by IHS Global Insight, some sectors are proving to be more resistent to the spreading crisis.
Australia has huge natural resources and has benefited from demand from China. As China grows so does Australia. Even so, construction spending decelerated at the end of 2008 and business conditions are "subdued" and investors and banks are "cautious". The situtation in New Zealand is similar although the National Government has pledged to increase borrowing to fund major infrastructure projects.
Do we need to rebrand branding?
Disney chairman Michael Eisner calls the term "brand", "overused, sterile and unimaginative." Indeed branding has had something of a bad press in recent years.
The arguments against branding are encapsulated in "No Logo: Taking Aim at the Brand Bullies" by Naomi Klein. The book argues that brands have become divorced from the products they represent. For example, Nike has moved from being a sneaker manufacturer to a brand that represented a lifestyle characterized by the "essence of athleticism."
Companies such as Nike abandoned production, outsourcing production and other areas to Asia and Latin America. Disconnecting product attributes from the "brand" also forced manufacturers to create an "image," usually by ubiquitous advertising.
Klein quotes Jonathan Bond and Richard Kirshenbaum in their book, "Under the Radar--Talking to Today's Cynical Consumer:" "Consumers are like roaches. We spray them with marketing, and for a time it works. Then, inevitably, they develop an immunity, a resistance".
Branding has also seemingly become something to use to censor and run to the Courts with. Wal-Mart will remove a publisher from its shelves if a magazine or album cover offends it. McDonald's used its enormous legal resources against a two-person Web site in U.K. that criticized its anti-environmental practices.
The anti-globalisation movement has been gaining momentum and influence. So how are companies responding?
In their book, "Driving Customer Equity," Roland Rust, Valarie Zeithaml, Katherine Lemon point out that ethics is one of the drivers of brand equity: "In considering whether to do business with a firm on a long-term, basis, customers will examine the extent to which the values of the brand or of the firm are consistent with their values." Brands must represent good corporate citizens who support their communities, live by their ethics and promote environmentalism. Remember that the Cadbury and Kellogg's brands started with the way the firms treated employees and their local communities.
David Meerman Scott asserts that "branding is only for cattle"! His arguement is that marketers who "obsess about brand usually focus on aesthetics over buyers. They are more interested in the colour scheme of the Web site than in meeting their buyers' needs with a content marketing strategy. They care about logos not buyers."
Whilst I feel David is harsh in saying that "marketers are a bunch of flaky wimps", he does make very sensible points for those engaged in marketing and branding in the business-to-business market space. He maintains that "while the rest of the organization is focused on metrics and revenue and ROI and reaching buyers, these ineffective marketers are worried about how the T-shirts look."
So is it time that we start to rebrand branding? There is much misunderstanding about what branding is, or should be, even among marketers let alone hard-nosed CEO's and engineers.
Interesting reference sources
Jonathan Salem Baskin (2008) Branding Only Works on Cattle: The New Way to Get Known (and drive your competitors crazy) published by Business Plus
http://www.webinknow.com/2007/03/branding_is_for.html
Rust R, Zeithaml V, Lemon K(2000) Driving Customer Equity : How Customer Lifetime Value is Reshaping Corporate Strategy, Published by Free Press
Klien N (2002) No Logo: Taking Aim at the Brand Bullies, Published by Riemann Verlag
Bond J and Kirshenbaum R (1998) Under the Radar; Talking to Today's Cynical Consumer, published by John Wiley & Sons Inc
The arguments against branding are encapsulated in "No Logo: Taking Aim at the Brand Bullies" by Naomi Klein. The book argues that brands have become divorced from the products they represent. For example, Nike has moved from being a sneaker manufacturer to a brand that represented a lifestyle characterized by the "essence of athleticism."
Companies such as Nike abandoned production, outsourcing production and other areas to Asia and Latin America. Disconnecting product attributes from the "brand" also forced manufacturers to create an "image," usually by ubiquitous advertising.
Klein quotes Jonathan Bond and Richard Kirshenbaum in their book, "Under the Radar--Talking to Today's Cynical Consumer:" "Consumers are like roaches. We spray them with marketing, and for a time it works. Then, inevitably, they develop an immunity, a resistance".
Branding has also seemingly become something to use to censor and run to the Courts with. Wal-Mart will remove a publisher from its shelves if a magazine or album cover offends it. McDonald's used its enormous legal resources against a two-person Web site in U.K. that criticized its anti-environmental practices.
The anti-globalisation movement has been gaining momentum and influence. So how are companies responding?
In their book, "Driving Customer Equity," Roland Rust, Valarie Zeithaml, Katherine Lemon point out that ethics is one of the drivers of brand equity: "In considering whether to do business with a firm on a long-term, basis, customers will examine the extent to which the values of the brand or of the firm are consistent with their values." Brands must represent good corporate citizens who support their communities, live by their ethics and promote environmentalism. Remember that the Cadbury and Kellogg's brands started with the way the firms treated employees and their local communities.
David Meerman Scott asserts that "branding is only for cattle"! His arguement is that marketers who "obsess about brand usually focus on aesthetics over buyers. They are more interested in the colour scheme of the Web site than in meeting their buyers' needs with a content marketing strategy. They care about logos not buyers."
Whilst I feel David is harsh in saying that "marketers are a bunch of flaky wimps", he does make very sensible points for those engaged in marketing and branding in the business-to-business market space. He maintains that "while the rest of the organization is focused on metrics and revenue and ROI and reaching buyers, these ineffective marketers are worried about how the T-shirts look."
So is it time that we start to rebrand branding? There is much misunderstanding about what branding is, or should be, even among marketers let alone hard-nosed CEO's and engineers.
Interesting reference sources
Jonathan Salem Baskin (2008) Branding Only Works on Cattle: The New Way to Get Known (and drive your competitors crazy) published by Business Plus
http://www.webinknow.com/2007/03/branding_is_for.html
Rust R, Zeithaml V, Lemon K(2000) Driving Customer Equity : How Customer Lifetime Value is Reshaping Corporate Strategy, Published by Free Press
Klien N (2002) No Logo: Taking Aim at the Brand Bullies, Published by Riemann Verlag
Bond J and Kirshenbaum R (1998) Under the Radar; Talking to Today's Cynical Consumer, published by John Wiley & Sons Inc
Why we should stop wasting our time
Now is the time to stop chasing clients/customers who are not in a position to place contracts or orders with us. Times are tough and could get even tougher as the global economic downturn continues. Consumers have their wallets tightly shut. What we should be doing is more marketing. Yes you heard that right. Its not a time to cut marketing budgets or downsize marketing departments. Now is the time to invest in more marketing in terms of segmentation and research. Not for now, but in the future when things start to pick up, as they inevitably will. What will our market space look like then? Who will have gone under and who will be the survivors? Will we be in a position to offer what the market will be demanding by then in terms of services or product or both? Will we have the appropriate people with the right training and technology to deliver what clients will be looking for?
And what about now? Some of our clients are still placing orders. They should be the focus of our efforts. Let us make sure we know as much about them as possible. Can we sell more of our services/products to them? We need intensive relationship building, all the corporate hospitality we can muster. A charm offensive the like we have never seen before! After-all, these people and organisations are our best 'marketers'. They will go around talking about us to their "friends" and will help promote us without a cent of our hard-earned profits being spent on so-called traditional advertising.
Now is the right time to bring our business organisations together. People are in fear for their jobs and livelihoods. Now is the time to unite and pull together in one big marketing effort focused on more than just survival, but on building the brand strategy for the future. And this means focusing on our most important clients/customers, not chasing after those elusive big spending clients that don't exist right now.
And what about now? Some of our clients are still placing orders. They should be the focus of our efforts. Let us make sure we know as much about them as possible. Can we sell more of our services/products to them? We need intensive relationship building, all the corporate hospitality we can muster. A charm offensive the like we have never seen before! After-all, these people and organisations are our best 'marketers'. They will go around talking about us to their "friends" and will help promote us without a cent of our hard-earned profits being spent on so-called traditional advertising.
Now is the right time to bring our business organisations together. People are in fear for their jobs and livelihoods. Now is the time to unite and pull together in one big marketing effort focused on more than just survival, but on building the brand strategy for the future. And this means focusing on our most important clients/customers, not chasing after those elusive big spending clients that don't exist right now.
Why are people talking about me?
Who is talking about me? What are they saying? Who are they talking to? Where are they talking? Perhaps people are saying nice things? But what if they are not? Am I getting paranoid? If people are not talking about me, why not?
As a construction business, whether small, medium or large, domestic or international, consultant, contractor or manufacturer, if people aren't talking about you then you have a problem.
Word-of-mouth marketing is the key marketing tool for construction professionals in the business-to-business marketplace. You can spend your hard earned profits on so-called traditional marketing techniques, but at the end of the day, you are as good as your last job. Reputation building IS brand building in the construction industry. Word-of-mouth marketing is a challenge to manage. But manage it we must.
According to wikipedia, "word-of-mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication,(literally words from the mouth), but now includes any type of human communication, such as face to face, telephone, email, and text messaging".
There are many types of word-of-mouth techniques being applied today including "buzz", "blog", "viral", "grassroots", "cause influencers" and "social media marketing". If you are skeptical about the impact of all this, consider why politicians in particular, have got increasingly concerned about a shift away from traditional broadcasting, towards this form of communication. People are able to get information from a whole range of different traditional and online sources. They no longer rely on "official" or "controlled" media.
The same applies in the business/commercial world. Consumers and other key stakeholders are looking for testimony and reviews of products and companies before they buy or invest.
So what is the "buzz" about your company? Have you stopped to consider how your company is perceived by your clients and other key stakeholders? In times of economic slow down perhaps its time to take a good look at ourselves in readiness for better days ahead. The opportunity and challenge is to start to influence the "buzz".
Some useful references on the impact of word-of-mouth marketing include -
Renée Dye, 'The Buzz on Buzz,' Harvard Business Review, November-December, 2000.
Rajdeep Grewal, Thomas W. Cline, and Antony Davies, 'Early-Entrant Advantage, Word-of-Mouth Communication, Brand Similarity, and the Consumer Decision-Making Process,' Journal of Consumer Psychology, October, 2003.
Frederick F. Reichheld, 'The One Number You Need to Grow,' Harvard Business Review, December, 2003.
Yubo Chen and Jinhong Xie, 'Online Consumer Review: A New Element of Marketing Communications Mix,' http://ssrn.com/abstract=618782, July, 2004.
Florian v Wangenheim and Tomás Bayón, 'The effect of word of mouth on services switching: Measurement and moderating variables,' European Journal of Marketing, September, 2004.
Paul Marsden, Alain Samson, and Neville Upton, 'Advocacy Drives Growth,' Brand Strategy, December, 2005
As a construction business, whether small, medium or large, domestic or international, consultant, contractor or manufacturer, if people aren't talking about you then you have a problem.
Word-of-mouth marketing is the key marketing tool for construction professionals in the business-to-business marketplace. You can spend your hard earned profits on so-called traditional marketing techniques, but at the end of the day, you are as good as your last job. Reputation building IS brand building in the construction industry. Word-of-mouth marketing is a challenge to manage. But manage it we must.
According to wikipedia, "word-of-mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication,(literally words from the mouth), but now includes any type of human communication, such as face to face, telephone, email, and text messaging".
There are many types of word-of-mouth techniques being applied today including "buzz", "blog", "viral", "grassroots", "cause influencers" and "social media marketing". If you are skeptical about the impact of all this, consider why politicians in particular, have got increasingly concerned about a shift away from traditional broadcasting, towards this form of communication. People are able to get information from a whole range of different traditional and online sources. They no longer rely on "official" or "controlled" media.
The same applies in the business/commercial world. Consumers and other key stakeholders are looking for testimony and reviews of products and companies before they buy or invest.
So what is the "buzz" about your company? Have you stopped to consider how your company is perceived by your clients and other key stakeholders? In times of economic slow down perhaps its time to take a good look at ourselves in readiness for better days ahead. The opportunity and challenge is to start to influence the "buzz".
Some useful references on the impact of word-of-mouth marketing include -
Renée Dye, 'The Buzz on Buzz,' Harvard Business Review, November-December, 2000.
Rajdeep Grewal, Thomas W. Cline, and Antony Davies, 'Early-Entrant Advantage, Word-of-Mouth Communication, Brand Similarity, and the Consumer Decision-Making Process,' Journal of Consumer Psychology, October, 2003.
Frederick F. Reichheld, 'The One Number You Need to Grow,' Harvard Business Review, December, 2003.
Yubo Chen and Jinhong Xie, 'Online Consumer Review: A New Element of Marketing Communications Mix,' http://ssrn.com/abstract=618782, July, 2004.
Florian v Wangenheim and Tomás Bayón, 'The effect of word of mouth on services switching: Measurement and moderating variables,' European Journal of Marketing, September, 2004.
Paul Marsden, Alain Samson, and Neville Upton, 'Advocacy Drives Growth,' Brand Strategy, December, 2005
