Harvard Case - Shanties in the Skyline Addressing Unauthorized Building Works in Hong Kong
"Shanties in the Skyline Addressing Unauthorized Building Works in Hong Kong" Harvard business case study is written by Howard Husock, Gaylen Moore, Jorrit de Jong. It deals with the challenges in the field of Operations Management. The case study is 6 page(s) long and it was first published on : Mar 26, 2019
At Fern Fort University, we recommend a multi-pronged approach to address the issue of unauthorized building works in Hong Kong, focusing on prevention, detection, and enforcement. This strategy involves a combination of technology and analytics, process improvements, and community engagement to create a more sustainable and compliant building environment in the city.
2. Background
The case study focuses on the persistent problem of unauthorized building works in Hong Kong, which poses significant risks to public safety, property values, and the city's overall aesthetic. The Building Department (BD) faces challenges in effectively detecting and enforcing compliance due to limited resources, bureaucratic processes, and a lack of real-time data. This has led to a cycle of non-compliance and escalating enforcement actions, creating a burden on both the BD and residents.
The main protagonists are the BD, struggling to manage the growing problem, and the residents, caught in the middle of the conflict between compliance and practicality. The case study highlights the need for a more proactive and collaborative approach to address this issue.
3. Analysis of the Case Study
We can analyze the case through the lens of operations strategy, focusing on the BD's ability to effectively manage its resources and processes to achieve its goals. The current system suffers from several weaknesses:
- Inefficient Operations: The manual inspection process is time-consuming and resource-intensive, leading to delays in detection and enforcement.
- Lack of Data-Driven Decision Making: The BD lacks real-time data on building works, making it difficult to identify high-risk areas and prioritize enforcement efforts.
- Limited Collaboration: There is a lack of effective communication and collaboration between the BD, residents, and other stakeholders.
- Reactive Approach: The BD primarily focuses on enforcement after unauthorized works have been completed, rather than proactive prevention.
4. Recommendations
To address these weaknesses, we recommend the following:
1. Implement a Data-Driven Approach:
- Technology and Analytics: Utilize drones, aerial imagery, and AI-powered image recognition to automate building inspection processes, enabling real-time monitoring and early detection of unauthorized works.
- Data Management System: Develop a centralized data management system to collect, analyze, and share information on building works, including permits, inspections, and complaints.
- Predictive Analytics: Leverage data analytics to identify high-risk areas and buildings prone to unauthorized works, allowing for targeted inspections and proactive interventions.
2. Enhance Process Efficiency:
- Process Reengineering: Streamline the permitting process, reducing bureaucratic hurdles and making it easier for residents to comply with regulations.
- Digital Transformation: Implement online platforms for permit applications, inspections, and communication, improving transparency and efficiency.
- Capacity Planning: Optimize resource allocation, ensuring sufficient personnel and equipment for effective inspection and enforcement.
3. Foster Collaboration and Community Engagement:
- Public Awareness Campaigns: Educate residents on building regulations and the consequences of unauthorized works, promoting a culture of compliance.
- Community Forums: Establish platforms for dialogue between the BD, residents, and stakeholders, facilitating open communication and addressing concerns.
- Incentivize Compliance: Implement incentives for compliant building owners, such as faster permit approvals or reduced inspection fees.
4. Leverage Technology for Enforcement:
- Real-time Monitoring: Utilize sensor networks and IoT devices to monitor building activities and detect unauthorized works in real-time.
- Automated Enforcement: Implement automated systems for issuing fines or initiating legal action based on detected violations.
- Mobile Applications: Develop mobile applications for residents to report unauthorized works, providing a direct channel for communication with the BD.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the BD's mission to ensure public safety and uphold building regulations.
- External Customers and Internal Clients: The recommendations address the needs of both residents and the BD, fostering a more collaborative and efficient system.
- Competitors: While not directly applicable, the recommendations can be benchmarked against other cities facing similar challenges, adopting best practices in building regulation and enforcement.
- Attractiveness: The recommendations are expected to result in improved efficiency, reduced costs, and increased compliance, ultimately leading to a safer and more sustainable building environment.
6. Conclusion
By implementing these recommendations, the BD can transform its approach to unauthorized building works from reactive to proactive, leveraging technology and data to enhance efficiency, improve communication, and promote a culture of compliance. This will lead to a safer and more sustainable building environment in Hong Kong, benefiting both residents and the city as a whole.
7. Discussion
Other alternatives include:
- Increased Fines and Penalties: This approach may deter some individuals but could lead to higher enforcement costs and potential social injustices.
- Demolition of Unauthorized Works: This is a drastic measure that can cause significant financial and emotional hardship for residents.
Key assumptions include:
- Public Acceptance: The success of the recommendations depends on public acceptance and participation in the new system.
- Technological Advancement: The effectiveness of technology-driven solutions relies on ongoing innovation and development.
- Resource Allocation: The BD needs sufficient resources to implement and maintain the proposed changes.
8. Next Steps
- Pilot Program: Implement a pilot program in a selected district to test the effectiveness of the proposed solutions.
- Stakeholder Engagement: Engage with residents, developers, and other stakeholders to gather feedback and build consensus.
- Resource Allocation: Secure funding and allocate resources for the implementation of the recommendations.
- Continuous Improvement: Regularly monitor the effectiveness of the new system and make adjustments based on data and feedback.
By taking these steps, the BD can effectively address the challenge of unauthorized building works in Hong Kong, creating a safer and more sustainable city for all.
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Case Description
Throughout the 1980s and 1990s, high atop a great many of the older, concrete-block buildings in lower-income areas of central Hong Kong and the neighborhoods of the Kowloon peninsula, informal metal-framed wooden structures housed thousands of families in austere, inexpensive quarters. These rooftop dwellings created a sort of shantytown in the air and, though built illegally, were nonetheless bought, sold, and rented on the open market. These structures were just one example of the larger phenomenon of so-called unauthorized building works (UBWs) in Hong Kong. These included balconies added to windows-sometimes used for beds-as well as hundreds of thousands of storefront street signs and canopy extensions on buildings in commercial districts, used to create rental space below for stores and restaurants on the ground floor. By 1999, the total number of UBWs was estimated at 800,000. By one assessment, if authorities continued enforcing the laws in the manner they had been, it would take more than 130 years to remove all such structures-assuming that new ones were not built in their place. This case raises questions about how to respond effectively to a complex problem that has arisen as a solution to other problems. [This case is an abridgment of "Law Enforcement and Unauthorized Building Works: Illegal Structures and the Hong Kong Buildings Department," by Howard Husock for Herman "Dutch" Leonard (HKS), published by the HKS Case Program in 2001.]
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