Corporate Strategy in Construction

Steven McCabe, Senior Lecturer in construction management, University of Central England

• Foreword PrefaceAbout the AuthorAcknowledgementsDedicationChapter 1 Introduction1.1 Trying to predict the future – a task fraught with risk1.2 A journey towards strategy: art or science?1.3 Strategy, a problem of expectation?1.4 The dilemmas of a formal definition of strategy1.5 The context of construction – a truly unique industry?1.6 Developing an understanding of who ‘consumes’ construction1.7 The structure of this bookChapter 2 Strategic management theory: its origins, development and relevance to contemporary organisations2.1 Objectives of this chapter2.2 Early origins2.3 The rise and rise of strategy as a corporate tool2.4 So what are the main concepts of strategy – back to the problems of definition?2.5 Mintzberg’s ‘Five Ps’ conceptualisation of strategy2.6 The hierarchy of strategy2.7 Terms associated with strategy2.8 Attaining success: the importance of analysis, development and implementation2.9 The three essentials of strategic decision-making2.10 Lynch’s text of ‘good’ strategy2.11 What will really work? An exploration of major theoretical perspectives2.12 The relevance of strategic theory and some considerations of Whittington’s generic perspective2.13 ConclusionChapter 3 A short socio-historical analysis of the development of the British construction industry3.1 Objectives of this chapter3.2 Early origins – the beginnings of civilisation3.3 The Roman influence3.4 Medieval organisation – the emergence of the guild system3.5 The malign influence of merchants3.6 The end of artisans and the emergence of alternative arrangements3.7 Contracting and its long-term effects on people, processes and production3.8 The rise and fall of trade unionism in construction3.9 The National Building Strike and its long-term consequences3.10 Time for change?3.11 Government intervention – the impact of the ‘Latham’ and Rethinking Construction reports3.12 So where is construction currently and what is next?3.13 ConclusionChapter 4 Understanding the environment – markets and competition4.1 Objectives of this chapter4.2 Appreciating the context of construction4.3 How are markets considered?4.4 Appreciating the dynamics of markets and competition4.5 Overall analysis of the environment4.6 What are the dynamics of competition? 714.7 Analysing competitive behaviour – a consideration of adaptive strategy4.8 How do markets grow?4.9 Competitive advantage4.10 ConclusionChapter 5 Strategy and its connection with consumers and customers – the keys to success5.1 Objectives of this chapter5.2 Defining consumers and customers5.3 Customers – who are they and what do they want?5.4 The use of ‘customer-profiling’5.5 Customer–competitor matrix5.6 Importance–performance analysis5.7 Market segmentation5.8 Revisiting Miles and Snow’s analytical model of competitive behaviour5.9 Using the BCG matrix to analyse customers5.10 The McKinsey Directional Policy Matrix5.11 Considering the value of these matrices5.12 Making connections with consumers – the importance of communication and feedback5.13 The emergence of the concept of customer as ‘king’ – what the Japanese taught the west and how it has been developed5.14 ConclusionChapter 6 Developing and maintaining organisational resources – the basis for delivering strategy6.1 Objectives of this chapter6.2 Resource usage – an overview6.3 A contemporary consideration of how organisations use resources6.4 The objective of adding value to resources6.5 How resources are valued – applying ‘economic rent’6.6 How organisations develop capability based on their resources –an appreciation of the importance of the resource-based perspective (RBV)6.7 Resources and their place in the structure6.8 Using VRIO framework to decide on resource application6.9 The importance of resources, distinctive capability and core competences6.10 Developing an understanding of people, productive capability and finance6.11 Using integration as a tactic to obtain resources6.12 ConclusionChapter 7 ‘Organisation[al] matters’ – a strategic perspective of the importance of how to manage people7.1 Objectives of this chapter – what is organisation?7.2 Organisation and structure – a consideration of contemporary changes in perception7.3 Structure, processes and relationships – virtuous combinations?7.4 Purpose and organisation7.5 Setting objectives – the importance of mission7.6 Organisational configuration7.7 Leadership7.8 Getting the best from people – the ‘secret’ of really successful organisations7.9 The importance of organisational culture7.10 ConclusionChapter 8 Knowledge, innovation and technology – the ‘keys’ to the future8.1 Objectives of this chapter8.2 Knowing and doing – linking them together to ensure appropriate action8.3 The context of construction8.4 Defining knowledge8.5 Learning as a way of organisational life8.6 What is innovation?8.7 The importance of technology8.8 ConclusionChapter 9 Change – the only constant in strategy9.1 Objectives of this chapter9.2 The theoretical basis of change management9.3 Strategic change in organisations – deriving an understanding of what is involved9.4 Types of strategic change9.5 The causes of change9.6 How to manage change9.7 A change for the better? Challenging the assumptions of the planned approach9.8 Emergent models of change9.9 The role of managers in change9.10 Strategic leadership approaches9.11 Changing the way things are really done9.12 Communicating change9.13 Potential problems with change9.14 ConclusionChapter 10 Considering the development of strategic options10.1 Objectives of this chapter10.2 What to do?10.3 The importance of resources in making choice10.4 Using the value chain to consider resources10.5 Andrews and SWOT10.6 The use of a resource-based view10.7 The importance of core competences10.8 Using the six criteria to judge strategy10.9 The ADL Matrix10.10 Who makes the decision?10.11 Using scenarios10.12 The importance of context10.13 ConclusionChapter 11 Implementing the strategy – issues, dilemmas and delivery of strategic outcomes11.1 Objectives of this chapter 22311.2 Getting to the end – the difference between ‘intended’ and ‘realised’ strategy11.3 The influence of purpose and dynamics on resources used11.4 Planning for action11.5 Making it happen – the influence of Kaplan and Norton11.6 Communication and approaches11.7 Strategic control11.8 Dealing with failure11.9 How to recover11.10 Retrenchment strategies11.11 Turnaround strategies11.12 Managing in recession and decline11.13 What about turbulent markets?11.14 A general review of how to ensure that strategy remains coherent11.15 ConclusionChapter 12 Turning theory into practice – some empirical examples of strategy in construction organisations12.1 Introduction to this chapter12.2 An overview of the contributions of strategic practice12.3 Continual improvement in Thomas Vale as a way of life12.4 Past, present and future – survival strategies in the face of a global downturn in construction work12.5 ‘Specialisation vs generalisation in the construction industry –a strategic overview’: Adonis construction12.6 Interserve12.7 Innovation and creativity in Morgan Ashurst12.8 As safe as houses – the importance of the NHBC12.9 Strategic management and change in construction: ‘The Argent Perspective’12.10 Wates Construction12.11 Strategic collaborative framework partnerships in Birmingham Urban Design12.12 Is it possible for a small quantity surveying consultancy to survive and thrive in an economic crisis?12.13 Strategic management in a micro-organisationReferencesFurther ReadingGlossaryIndex

“This new text is a valiant effort by McCabe to present the main theories of corporate strategy and discuss their application to the construction industry—all in 11 chapters (plus a chapter of corporate case examples).”  (Construction Management and Economics, 1January 2012)