Trust And Stakeholder Value

CMP 2007 Presentation Building trust in the delivery process Trust as a sustainable driver of stakeholder value Theme: Construction Business Development Class of 2007

Introduction: Where are we now? ,[object Object],Master Servant Legacy “ Flawed” traditional procurement model? ,[object Object],[object Object],[object Object],[object Object],1 Fragmented market

Approach 2 1 Hypothesis 2 How does trust affect the market ? 3 Why is trust a driver of sustainable value ? 4 How can trust create sustainable value?

[object Object],[object Object],[object Object],[object Object],[object Object],1.0 Hypothesis 3

[object Object],1/1. Hypothesis ,[object Object],[object Object],[object Object],Trust underpins investment in the global marketplace 4

[object Object],1/2. Hypothesis A dominant pessimistic outlook fosters survival instincts 5

[object Object],1/3. Hypothesis 6 Time Quality Cost Cost Utility Schedule Quality Stakeholders

Egan ,[object Object],2.0 How does trust affect the market ? Illustrates the possibilities in a climate of trust 7 THE PAVEMENT TEAM “ .. The efficiency of project delivery is constrained by the separated processes through which they are planned, designed and constructed..” “ .. long term relationships based on clear measurement of performance and sustained improvements in quality and efficiency..” (adapted from Egan Report)

[object Object],3.0 Why is trust a driver of sustainable value ? 8 IMPACTS PREDICTABILITY HIGH LOW GLOBAL RECESSION CROSS BORDER INSTABILITY EXCHANGE RATE (FOREIGN) ECONOMIC GROWTH EXCHANGE RATE (LOCAL) POLITICAL STABILITY HIV - AIDS INFRASTUCTURE LIMITATIONS Lack of Trust MATERIAL INFLATION SKILLS SHORTAGE MOVE TO THE EAST GLOBAL WARMING EFFICIENCY AVIAN FLU LOW HIGH

[object Object],3.1 Why is trust a driver of sustainable value ? ,[object Object],DIRE STRAIGHTS TRUST - MARKET - TRUST + 8 PRESSURE COOKER $$ JACKPOT $$ RETRENCH BENCH Social Capital Morale Capital

[object Object],4.0 How can trust create sustainable value ? Stakeholder Value Supply Chain Integration 9 Revenue Growth Operating Margin Asset Efficiency Expectations Company Strengths Improve Delivery Capabilities Operational Excellence Partnership & Collaboration Relationship Strength Agility & Flexibility Strategic Asset Shareholder Value

A move from TRADITIONAL open market to COLLABORATION Degree of INTEGRATION and COLLAROATION Degree of supply chain EFFECTIVENESS and EFFICIENCY ,[object Object],4.1 How can trust create sustainable value ? 10

Conclusions 11 Building trust in the delivery process Trust as a sustainable driver of stakeholder value CMP Class of 2007

Trust And Stakeholder Value

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