TURNAROUND STRATEGY FOR THE ESTATE AGENCY AFFAIRS

Transcript:TURNAROUND STRATEGY FOR THE ESTATE AGENCY AFFAIRS:
TURNAROUND STRATEGY FOR THE ESTATE AGENCY AFFAIRS BOARD (“EAAB”) 23 October 2017 2017/10/30 1 TABLE OF CONTENTS Identifying the underlying causes of the problem Maintaining Organisational flexibility in the implementation of the turnaround strategy Implementing the efficiency turnaround strategy for the EAAB Diagnosing the fundamental challenges leading to the underperformance of the EAAB Addressing identified operational challenges through the implementation of an efficiency turnaround strategy Recommendations Proposed efficiency strategy to restructure financing Fundamental challenges to effective financial performance by the EAAB Revenue generation strategy Long-term revenue generating strategy Cost containment strategy – administration expenses Cost containment strategy – employee costs – short term Cost containment strategy – employee costs – medium to long term The asset reduction strategy Asset reduction strategy – long term Asset reduction strategy – short term Delivery strategy 2017/10/30 2 2017/10/30 3 After careful consideration of the above typology, and taking all relevant factors into account, management concluded that the EAAB was presently underperforming and that the organisation was neither in a distress or crisis situation. It was, thus, necessary to consider the introduction of an effective turnaround strategy to remedy an underperforming organisation. 2017/10/30 4 The different identified strategies available in this regard could be classified as follows: 2017/10/30 5 2017/10/30 6 It was, accordingly, resolved that the creation and implementation of an appropriate efficiency strategy, as more fully set forth herein, was urgently required to restore the EAAB to a well performing organisation. 2017/10/30 7 Maintaining organisational flexibility in the implementation of the turnaround strategy Organisational flexibility, or the long-term ability of the EAAB to identify, generate and maintain different strategic options while responding to volatile environmental changes and uncertainties, is important for the successful implementation of the chosen turnaround strategy. The EAAB must retain the capability to recognise environmental changes and to commit resources and take appropriate and timely actions to meet ever-evolving demands. 2017/10/30 8 2017/10/30 9 The EAAB must, in addition, retain the strategic flexibility of proactivity in the allocation and reconfiguration of organisational resources, processes and strategies to ensure that it does not again become reactive and stalled. The EAAB must always be able to identify, create and maintain options encompassing resources, perspective and flexibility thereby enabling it to build and implement an optimal set of strategic and operational options to cope with change and ensure that it always a well performing organisation. Implementing the efficiency turnaround strategy for the