In pursuit of Excellence

Wael Allan
[More Images]

Operational effectiveness

“So I believe operational effectiveness is absolutely key, and that is what we are trying to do in all our sectors: to improve performance, to do things better with less cost and shorter time, and obviously then you have got to balance those parameters depending on the client needs. I think another thing that has really changed in terms of ensuring growth in the future is that we as professionals tend to define excellence from our own perspective, when excellence really has to be defined by what the clients think excellence is. Some clients may want quality at any cost; other clients may require a specific level of quality for a certain cost; we have to customise our offering to suit client needs, rather than what we define as their needs,” says Allan.

Being a multinational is an added advantage as well. “That is a great differentiator,” concurs Allan. “We can bring to the table state-of-the-art techniques and knowledge and know-how with the ability to deliver locally; unlike local companies, which may have the local knowledge but not the multinational expertise. I think that is a transformation bound to happen: only multinationals, in my view, will survive in the long run, because they have the ability to bring in knowledge and know-how from everywhere – especially in the Middle East, where expectations are becoming higher, and certain nations are becoming wealthier, and with that comes a much higher expectation of the end product.”

Hyder is also actively pursuing global design solutions, with a global design centre in Manilla in the Philippines dealing with property, transport and infrastructure, and one in Bangalore in India dealing with water and specific elements such as rail. “Standardised design is absolutely key,” says Allan. “If some items are off-the-shelf, you are not reinventing the wheel every day and can focus on what is important to the client.” Just how important is the Middle East to Hyder in the bigger picture? “Almost 68% of Hyder’s revenue is international, with about 34% generated in the Middle East. The Middle East is a very significant part of our business. We have experienced growth in the Middle East during 2008-9. Going forward, in terms of the focus for 2010, we will sustain growth, and probably improve on it slightly, because now the focus is not on the top line and more on the bottom line as a business,” says Allan.

“We really do not see the Middle East as very different to any other market. Each market generally has its distinctive local flavour, but as a multinational we are familiar with dealing with different types of projects in different environments. We have been in the Middle East for over 45 years, so we have the experience and know-how of the local issues. We will always remain committed to the Dubai market, but I think with a much more controlled growth. We do not anticipate the kind of growth experienced in the last three to five years, at least for the foreseeable future definitely. I think 2010 will be a tough year. A lot of the backlog of companies has been exhausted, so they are looking for new work. And I think companies that have reacted properly to the slowdown will survive and do well.”

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

Challenging year

Allan says he has just returned from a visit to the US, where the majority consensus is that 2010 will be a “challenging” year. But a welcome caveat is that “if there is any region to be in during a recession, I would say the Middle East offers the best opportunity, compared to much more developed economies like the US and the UK.” Allan says the construction industry has made great strides in Dubai in a very short space of time. “I would say they have done a very reasonable job considering the time scale and where Dubai was and where Dubai is now.

“I think though value now has got to be brought in through optimum solutions for clients. At Hyder we are looking at the lifecycle model of an asset – that asset being a building or a piece of machinery. Buying the cheapest is not necessarily the best – that is a challenge for us as a multinational, faced with clients saying you are more expensive than a local, what value do you bring? We will work with clients so they can recognise the value proposition we bring to the table.

That value is through an optimum asset selection rather than through what is the cheapest capital expenditure. It is really looking at capex versus opex, and how we deal with this on behalf of our clients,” concludes Allan.