RBA’s Operational Strategy and Vision
In 2012 RBA set a number of key operational stretch targets for 2017.
- constructing and selling 5 000 houses and/or rental units per year; and
- significantly increasing the revenue per client through generating financial services income from related products such as insurance on household contents, homeowners’ insurance, credit life cover, home loan origination, etc.
In order to operationalise these objectives in a sustainable fashion, a number of core strategies were adopted by the company in 2013:
Ensure societal demands are met and our licence to operate is maintained by:
- complying with all applicable laws;
- being a good corporate citizen and meet the expectations of its various stakeholders;
- being aware of the broader context in which it operates and take this into consideration in its business planning e.g. the National Development Plan;
- operating in a manner that does not harm our employees, clients or communities;
- operating in an environmentally responsible manner; and
- achieving black economic empowerment that is supportive of its business objectives.
Maximise operating profit revenue through:
- ensuring that RBA is a trusted brand by making sure that clients’ expectations are met in terms of product design, value, quality and on time delivery;
- ensuring that there are sufficient secured land development opportunities in well-located areas;
- effective marketing and sales;
- an effective construction and project management system designed to ensure the required delivery of product; and
- a procurement function that is able to reliably source quality raw materials for construction at competitive prices.
Ensure that our working capital is minimised by:
- increasing the speed of execution of projects and construction;
- focusing on continuous improvement in processes and systems to reduce rework to a minimum; and
- ensuring that RBA does not hold any non-core assets.
Controlling operating expenses by:
- putting in place well-designed systems and processes where the costs of these will not increase linearly with growth in the business; and
- focusing on continuously reducing unnecessary cost or waste.
Business risks are managed as far as possible by:
- ensuring the appropriate levels of gearing and cash reserves;
- having diversified revenue streams;
- having standard processes and procedures that are enhanced through ongoing learning and continuous improvement;
- continual risk identification and management; and
- a mature corporate governance structure that is ingrained in the business culture.
Provide employees with a satisfying and safe working environment where they are well-rewarded and empowered to contribute to the business.
These, together with the detailed action plans to support each objective, form the basis for measurement of the group’s progress toward meeting its 2017 targets and also form the basis of the group’s risk management system that is aimed at ensuring that risks to achieving the business objectives are identified and, where necessary, appropriate action is taken.