Business Planning - Part II

Business Planning for RICS APC Candidates – Part II

A guide to help you prepare for the business planning competency in the RICS APC assessment.

1        Introduction

Business planning is a cornerstone of success for professionals seeking chartered status in the Royal Institution of Chartered Surveyors (RICS). Whether you're embarking on the Assessment of Professional Competence (APC) journey or seeking to refine your business acumen, understanding the intricacies of business planning is essential. This blog post serves as a comprehensive guide for RICS APC candidates, exploring vital components such as legislation, types of business structures, strategic planning, market analysis, and more. By delving into real-life examples and referencing RICS guidance notes alongside UK laws, we aim to equip aspiring chartered surveyors with the knowledge and insights necessary to navigate the complexities of business planning effectively.

This blogpost covers the following titles:

• Resourcing – recruitment, training, financing, accommodation

• SWOT analysis

• Human resources

• Data management

• Administration

• Health and safety

• Equality

2        Resourcing – recruitment, training, financing, accommodation

Resourcing is the process of planning, allocating, and managing the resources that you need to achieve your objectives. Resources can include human, financial, physical, or technological assets, such as staff, money, equipment, or software. Resourcing is a crucial part of business planning, as it ensures that you have the right resources, in the right quantity, quality, and time, to deliver your services and products effectively and efficiently.

Some of the key aspects of resourcing that construction professionals may need to consider for their business plan are recruitment, training, financing, and accommodation. These aspects can be described as follows:

• Recruitment: The process of finding, hiring, and retaining the best talent for your business, based on your staffing needs and objectives

• Training: The process of providing learning and development opportunities for your staff, to enhance their skills, knowledge, and performance

• Financing: The process of securing and managing the funds that you need to run your business, such as loans, grants, equity, or revenue

• Accommodation: The process of finding and maintaining the suitable premises for your business, such as offices, warehouses, or sites. [2], [3]

An example of resourcing strategies for each of these aspects could be:

• Recruitment: To use a variety of methods to attract and recruit staff, such as online platforms, referrals, or agencies, and to offer competitive remuneration and benefits, such as salary, bonus, pension, or health insurance

• Training: To conduct a training needs analysis for each staff member, and to provide a range of training and development options, such as courses, workshops, mentoring, or coaching

• Financing: To prepare a realistic and detailed budget and cash flow forecast for each project and for the business as a whole, and to seek and compare different sources of financing, such as banks, investors, or clients

• Accommodation: To assess the space and location requirements for each project and for the business as a whole, and to negotiate and secure the best deals for renting, leasing, or buying the premises, taking into account the costs, benefits, and risks

3        SWOT analysis

A SWOT analysis is a tool that helps you to identify the strengths, weaknesses, opportunities and threats of your business or project. It can help you to assess your current position, set realistic goals, and devise strategies to achieve them. A SWOT analysis can also help you to anticipate and mitigate potential risks, and to exploit and create new opportunities. You can use a SWOT analysis at any stage of your business or project, but it is especially useful at the start, when you are defining your objectives and scope, and at the end, when you are evaluating your performance and outcomes.

According to the RICS guidance note on business planning (2019), a SWOT analysis should be based on factual evidence and data, and should be reviewed and updated regularly. It should also be aligned with the vision, mission and values of your organisation or client, and should take into account the external and internal factors that may affect your business or project. Some of the external factors that you need to consider are the political, economic, social, technological, environmental and legal (PESTEL) aspects of your context, such as the market conditions, the regulations, the customer needs, the competitors, the innovations, and the sustainability issues. Some of the internal factors that you need to consider are the resources, capabilities, processes, culture and structure of your organisation or project team, such as the skills, knowledge, experience, equipment, finance, quality, communication, and leadership. [1], [4]

A real-life example of how a SWOT analysis can be used in business planning is the case of a construction company that wanted to expand its services to a new geographical area. The company conducted a SWOT analysis to identify the following aspects:

• Strengths: the company had a strong reputation, a loyal customer base, a high-quality service, and a skilled and experienced workforce.

• Weaknesses: the company had a limited financial capacity, a lack of local knowledge, and a dependence on a few key suppliers.

• Opportunities: the new area had a high demand for construction services, a low level of competition, and a favourable regulatory environment.

• Threats: the new area had a high level of political instability, a volatile economic situation, and a potential environmental impact.

Based on the SWOT analysis, the company decided to pursue the opportunity of expanding its services to the new area, but also to take some measures to address its weaknesses and threats, such as securing additional funding, hiring local experts, diversifying its suppliers, and conducting a risk assessment and a stakeholder analysis.

4        Human resources

Human resources are the people who work for your organisation or project, and who are essential for the delivery of your services or products. Human resources management involves the planning, recruitment, development, retention and motivation of your staff, as well as the management of their performance, wellbeing and relations. Human resources management is a key aspect of business planning, as it can help you to achieve your objectives, enhance your reputation, and comply with the legal and ethical requirements.

According to the RICS guidance note on business planning (2019), human resources management should be based on the principles of equality, diversity and inclusion, and should follow the best practices of the industry. It should also be aligned with the strategic goals and values of your organisation or client, and should take into account the needs and expectations of your staff, as well as the feedback and appraisal that you receive from them. Some of the aspects that you need to consider in human resources management are the following:

• The size, structure and composition of your organisation or project team, and how they fit with the scope, scale and complexity of your services or products.

• The skills, knowledge, experience and qualifications that you need to deliver your services or products, and how you can attract, recruit and retain the best talent for your organisation or project.

• The training, development and mentoring that you need to provide to your staff, and how you can support their continuous learning and professional growth.

• The remuneration, benefits and incentives that you need to offer to your staff, and how you can reward their performance and contribution.

• The policies, procedures and systems that you need to implement to manage your staff, and how you can ensure their compliance, accountability and responsibility.

• The culture, values and behaviours that you need to promote in your organisation or project, and how you can foster a positive, collaborative and respectful working environment.

• The health, safety and wellbeing of your staff, and how you can protect them from any physical, mental or emotional harm.

• The communication, consultation and engagement that you need to maintain with your staff, and how you can encourage their feedback, participation and empowerment. [1], [4], [5], [6]

A real-life example of how human resources management can be used in business planning is the case of a construction project that involved the refurbishment of a historic building. The project manager conducted a human resources management plan to identify the following aspects:

• The project team consisted of 20 staff members, including architects, engineers, surveyors, contractors, and consultants, who had different roles, responsibilities and reporting lines.

• The project required a high level of technical, creative and managerial skills, as well as a deep understanding of the historical and cultural significance of the building. The project manager recruited the staff members based on their qualifications, experience and reputation, and offered them competitive salaries and bonuses.

• The project provided the staff members with opportunities to develop their skills and knowledge, as well as to gain recognition and accreditation from the RICS and other professional bodies. The project manager arranged regular training sessions, workshops and site visits, and assigned mentors and coaches to the staff members.

• The project rewarded the staff members for their performance and contribution, and recognised their achievements and innovations. The project manager conducted periodic appraisals, feedback and reviews, and gave awards and certificates to the staff members.

• The project followed the policies, procedures and systems of the RICS and the client, and ensured that the staff members complied with them. The project manager monitored and controlled the quality, cost and time of the project, and reported and documented the progress and outcomes.

• The project promoted a culture of excellence, professionalism and integrity, and encouraged the staff members to adhere to the RICS ethical standards and code of conduct. The project manager fostered a collaborative, respectful and supportive working environment, and resolved any conflicts or issues that arose.

• The project ensured the health, safety and wellbeing of the staff members, and protected them from any hazards or risks that the site or the building posed. The project manager conducted a health and safety plan, a risk assessment and a contingency plan, and provided the staff members with the necessary equipment, insurance and support.

• The project maintained a constant and effective communication, consultation and engagement with the staff members, and involved them in the decision-making and problem-solving processes. The project manager used various channels and methods of communication, such as meetings, emails, phone calls, and newsletters, and solicited and responded to the staff members' feedback, suggestions and complaints.

5        Data management

Data management is the process of collecting, storing, processing, analysing and sharing the data that is relevant for your business or project. Data can include any information, facts, figures, records or documents that can help you to plan, monitor, evaluate and improve your services or products. Data management is a crucial aspect of business planning, as it can help you to make informed decisions, measure your performance, identify your risks and opportunities, and communicate your results and impacts.

According to the RICS guidance note on business planning (2019), data management should be based on the principles of accuracy, reliability, validity, relevance, timeliness, completeness, consistency, security and confidentiality. It should also follow the best practices of the industry, and comply with the legal and ethical requirements. Some of the aspects that you need to consider in data management are the following:

• The sources, methods and tools that you use to collect your data, and how you ensure their quality, validity and reliability.

• The systems, formats and standards that you use to store your data, and how you ensure their accessibility, compatibility and security.

• The techniques, software and models that you use to process and analyse your data, and how you ensure their accuracy, relevance and timeliness.

• The outputs, reports and presentations that you use to share your data, and how you ensure their clarity, consistency and confidentiality. [1], [4], [7], [8], [9]

A real-life example of how data management can be used in business planning is the case of a construction project that involved the construction of a new office building. The project manager conducted a data management plan to identify the following aspects:

• The project collected data from various sources, such as the client, the stakeholders, the market, the site, the design, the procurement, the construction, and the handover. The project used various methods and tools to collect the data, such as surveys, interviews, observations, measurements, drawings, specifications, contracts, invoices, and certificates. The project ensured the quality, validity and reliability of the data by verifying, validating and cross-checking them.

• The project stored the data in various systems, such as the cloud, the server, the database, the spreadsheet, the document, and the folder. The project used various formats and standards to store the data, such as the PDF, the CSV, the XML, the BIM, and the RICS. The project ensured the accessibility, compatibility and security of the data by backing up, encrypting and password-protecting them.

• The project processed and analysed the data using various techniques, software and models, such as the statistics, the graphs, the charts, the tables, the dashboards, the Excel, the SPSS, the Primavera, and the Monte Carlo. The project ensured the accuracy, relevance and timeliness of the data by cleaning, sorting, filtering and updating them.

• The project shared the data using various outputs, reports and presentations, such as the summary, the analysis, the evaluation, the recommendation, the progress, the outcome, the impact, the PowerPoint, the Word, and the PDF. The project ensured the clarity, consistency and confidentiality of the data by formatting, referencing and anonymising them.

6        Administration

Administration is the process of organising, coordinating and managing the resources, activities and tasks that are required for your business or project. Administration can include any aspect of your business or project that is not directly related to the delivery of your services or products, but that supports and facilitates their execution and completion. Administration is an important aspect of business planning, as it can help you to optimise your efficiency, effectiveness and quality, and to comply with the legal and ethical requirements.

According to the RICS guidance note on business planning (2019), administration should be based on the principles of simplicity, transparency, accountability and responsibility. It should also follow the best practices of the industry, and comply with the legal and ethical requirements. Some of the aspects that you need to consider in administration are the following:

• The budget, finance and accounting that you need to manage for your business or project, and how you ensure their accuracy, completeness and timeliness.

• The contracts, agreements and terms and conditions that you need to establish and maintain for your business or project, and how you ensure their clarity, consistency and compliance.

• The records, documents and files that you need to create and keep for your business or project, and how you ensure their organisation, accessibility and security.

• The communication, correspondence and reporting that you need to conduct and receive for your business or project, and how you ensure their effectiveness, professionalism and confidentiality. [1], [4], [10]

A real-life example of how administration can be used in business planning is the case of a construction project that involved the renovation of a residential property. The project manager conducted an administration plan to identify the following aspects:

• The project had a budget of £100,000, which included the costs of labour, materials, equipment, fees, taxes, and contingencies. The project managed the budget, finance and accounting using a spreadsheet, a software and a bank account, and ensured their accuracy, completeness and timeliness by tracking, recording and auditing them.

• The project had contracts, agreements and terms and conditions with the client, the stakeholders, the suppliers, the subcontractors, and the consultants, which defined the scope, schedule, quality, cost and risk of the project. The project established and maintained the contracts, agreements and terms and conditions using a template, a software and a lawyer, and ensured their clarity, consistency and compliance by reviewing, signing and updating them.

• The project had records, documents and files that contained the information, data and evidence of the project, such as the plans, drawings, specifications, invoices, certificates, photos, and emails. The project created and kept the records, documents and files using a folder, a cloud and a database, and ensured their organisation, accessibility and security by naming, sorting and backing up them.

• The project had communication, correspondence and reporting that involved the exchange of information, data and feedback with the client, the stakeholders, the suppliers, the subcontractors, and the consultants, such as the meetings, phone calls, emails, letters, and reports. The project conducted and received the communication, correspondence and reporting using a phone, a computer and a software, and ensured their effectiveness, professionalism and confidentiality by planning, documenting and encrypting them.

7        Health and safety

Health and safety is a fundamental duty of every employer and employee in the construction industry. It involves identifying and managing the risks and hazards associated with the design, construction, operation and maintenance of buildings and infrastructure. RICS APC candidates need to show that they understand the principles and practices of health and safety management, and that they can apply them to their own projects and activities.

One of the key sources of guidance for health and safety in the UK is the Health and Safety at Work etc. Act 1974, which sets out the general duties and responsibilities of employers and employees, as well as the role and powers of the Health and Safety Executive (HSE). The HSE also publishes a range of approved codes of practice (ACOPs) and guidance notes that provide more specific advice on how to comply with the law. For example, the Construction (Design and Management) Regulations 2015 (CDM 2015) provide a framework for managing health and safety throughout the life cycle of a construction project, from pre-construction to post-construction. [11], [12], [13]

A real-life example of how health and safety can be integrated into business planning is the use of the Plan, Do, Check, Act (PDCA) cycle. This is a simple and effective way of ensuring that health and safety objectives are set, implemented, monitored and reviewed on a regular basis. The PDCA cycle can be applied at different levels of the organisation, from the strategic to the operational, and can help to identify and address any gaps or weaknesses in the health and safety performance.

8        Equality

Equality is another essential aspect of business planning that RICS APC candidates need to demonstrate. It refers to the promotion of equal opportunities and fair treatment for all people, regardless of their protected characteristics, such as age, disability, gender, race, religion, sexual orientation, etc. Equality is not only a moral and social responsibility, but also a legal and business one. It can help to attract and retain a diverse and talented workforce, enhance the reputation and image of the organisation, and avoid costly and damaging discrimination claims.

One of the main sources of guidance for equality in the UK is the Equality Act 2010, which consolidates and simplifies the previous anti-discrimination laws and introduces new provisions to protect people from unfair treatment. The Equality Act 2010 also imposes a public sector equality duty (PSED) on public authorities and organisations that carry out public functions, which requires them to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations between different groups of people. [14], [15], [16], [17]

A real-life example of how equality can be incorporated into business planning is the use of an equality impact assessment (EIA). This is a tool that helps to assess the potential effects of a policy, project, service or decision on different groups of people, and to identify and mitigate any negative or adverse impacts. An EIA can be conducted at different stages of the planning process, from the initial scoping to the final evaluation, and can help to ensure that the organisation meets its legal obligations and its equality objectives.

9        Conclusion

In conclusion, mastering the art of business planning is paramount for RICS APC candidates aspiring to excel in their careers. By adhering to legislative requirements, understanding various business structures, crafting robust short and long-term strategies, conducting thorough market analyses, and setting clear objectives, candidates can lay the groundwork for sustainable success. Real-life examples illustrate the practical application of these concepts, emphasizing the importance of integrating RICS guidance notes and UK laws into business planning endeavors. As future chartered surveyors, proficiency in areas such as resourcing, SWOT analysis, human resources management, data management, administration, health and safety, and equality will not only enhance professional competence but also contribute to the advancement of the profession as a whole. By embracing the principles outlined in this blog post, RICS APC candidates can confidently navigate the intricacies of business planning, setting themselves on a trajectory towards fulfilling and impactful careers in the field of surveying.

10   References

1. RICS (2019). Business planning. Guidance note, 1st edition. Available at: https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/sector-standards/construction/business-planning-1st-edition-rics.pdf

2. RICS (2017). Business planning. 1st edition. RICS guidance note. London: RICS.

3. Business Wales (2020). Business planning. Available at: https://businesswales.gov.wales/starting-up/business-planning (Accessed: 15 October 2020).

4. RICS Professional statement on ethics and professional behaviour (2021). Available at: https://www.rics.org/content/dam/ricsglobal/documents/standards/2021_roc_en.pdf

5. RICS Guidance note on Manging Design Delivery (2016).Available at: https://www.isurv.com/downloads/file/3395/managing_the_design_delivery

6. RICS Guidance note on health and safety (2018). Available at: https://www.rics.org/content/dam/ricsglobal/documents/standards/November_2018_Surveying_Safely_Health_And_Safety_Principles_For_Property_Professionals_2nd_Edition.pdf

7. RICS – Data Security and Retention. Available at: https://www.rics.org/profession-standards/rics-standards-and-guidance/conduct-competence/client-relationships-and-handling-data/data-security-and-retention#:~:text=Firms%20should%20consider%20and%20document,employee%20mistakes

8. RICS – Data Handling. Available at: https://www.rics.org/profession-standards/rics-standards-and-guidance/conduct-competence/client-relationships-and-handling-data/data-handling

9. RICS – BIM for cost managers: Requirements from the BIM Model, 1st edition (2015). Available at: https://www.rics.org/content/dam/ricsglobal/documents/standards/bim_for_cost_managers_1st_edition_rics.pdf

10. RICS guidance note on Contract Administration (2022). Available at: https://www.rics.org/content/dam/ricsglobal/documents/standards/building-surveying-standards/standard-forms-of-consultation/6-contract-administration-services_ew_may-2022.pdf

11. Health and Safety at Work etc. Act 1974. Available at: https://www.legislation.gov.uk/ukpga/1974/37

12. Health and Safety Executive (HSE). (2015). Managing health and safety in construction: Construction (Design and Management) Regulations 2015: Guidance on Regulations. Available at: https://www.hse.gov.uk/pubns/priced/l153.pdf

13. Health and Safety Executive (HSE). (n.d.). Plan, Do, Check, Act: An introduction to managing for health and safety. Available at: https://www.hse.gov.uk/simple-health-safety/pdca.htm

14. Equality Act 2010. Available at: https://www.legislation.gov.uk/ukpga/2010/15/contents

15. Equality and Human Rights Commission (EHRC). (2014). Technical guidance on the public sector equality duty: England. Available at: https://www.equalityhumanrights.com/sites/default/files/technical_guidance_on_the_public_sector_equality_duty_england.pdf

16. Equality and Human Rights Commission (EHRC). (n.d.). Equality impact assessment guidance. Available at: https://www.equalityhumanrights.com/en/advice-and-guidance/equality-impact-assessment-guidance

17. Royal Institution of Chartered Surveyors (RICS). (2018). APC candidate guide: UK and Ireland. Available at: https://www.rics.org/globalassets/rics-website/media/upholding-professional-standards/regulation/apc/apc-candidate-guide-uk-and-ireland.pdf