CSF 1 : Successful in Managing IBS Stakeholders

Business is about how customers, suppliers, employees, financiers (stockholders, bondholders, banks, etc.), communities, the media, and managers interact and create value. In any project, and especially in construction projects, many different and sometimes discrepant interests must be considered. Representatives of these interests are referred to as the project stakeholders. A project stakeholder is a person or group of people who have a vested interest in the success of a project and the environment within which the project operates. The implication is that a stakeholder is any individual or group with the power to be a threat or a benefit. Successful IBS companies manage their stakeholders effectively. The main strategy is to involve indirect (e.g. public, mortgage, lenders, insurers, planning authorities and building control) as well as direct stakeholders (e.g. designer, manufacture, and supplier) in the whole project duration to ensure project success (Pan, 2008). Lack of focus to indirect stakeholders will lead to a mismatch between technology possibilities and market demand (Tushmann and Moore, 1988). One of the way get to know and understand that expectation the requirement of the sector is to involve stakeholders from the beginning, gathering and analyzing the requirement (Hervas, 2007). It also important to establish better understanding with client to recognize indirect savings in the aspect of reduce site labour, less disruption and better quality control (Gibb, 2003). It may lead to overall understanding to IBS concept and provide justification in the selection of construction method. In other case, constructors need to manage clients resistant towards new constructing method. The strategy is to engage client at the design stage of construction (Pan, 2008) and establish the understanding. Partnering is one of the plausible solutions. Successful IBS companies focus on customers and create customer driven market (CIDB, 2003). Despite the under-supply of new housing, many in the industry feel that customers are becoming better informed, more demanding and less tolerant of poor service and construction defects (Barlow and Ozaki, 2003). It is important to obtain customer loyalty is in ensuring continuing profitability (ibid). Re-orienting construction industry requires constructors to resolve tensions between their traditional focus on driving down construction costs and emphasizing the value of their products to customers. Moving towards a more customized supply model will require firms to adopt business processes which integrate production and sales functions more closely. This in turn may require the resolution of conflicting priorities, such as those between volume building and an emphasis on the achievement of premium prices by adding value through greater product choice (Barlow and Ozaki, 2005). IBS companies establish customer-orientation using survey and investigation to catch customer needs and priorities or marketing orientation (Martinez, 2007). A clear focus on the customer is a necessity to ensure that the right products, with the right quality to the right cost are produced for the end-customer (Lessing et al, 2005). As such, high levels of customer satisfaction are underpinned by good communications structures, employee satisfaction and an ability to elicit and resolve complaints effectively (Barlow and Ozaki, 2003). Tools and technique such as stakeholder analysis (Newcombe, 2003), stakeholders mapping (Johnson et. al, 2005) and process protocol (Pan, 2008) are often used to develop knowledge about stakeholders.

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