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(From Gulf Construction)
Do project managers ask for and understand the business drivers behind construction projects? Or do they merely take a client brief and deliver? asks EC Harris International Limited as it highlights the key factors in good project management
High-value strategic project management is the key to providing business-driven high-return developments whether for commercial or municipal projects, or for the development of business infrastructures. This can only be achieved through the proper representation of the client's business case, and it is not just in the process of creating the asset
The project manager must explore and clarify the business case and be flexible in its application in a dynamic environment
So what are some of the business drivers that may initiate the development process? - Profit and a high rate of return against the opportunity cost of investment; - Increase in operational efficiency; - Saleable assets; - Environment for creativity and innovation; - Flexibility to respond to the demands of market conditions; - Attraction of investment; - Speed to market; - Long-term income stream; and - Social utility
The strategy for delivering to the drivers is where the high-value project manager genuinely delivers a solutions-based service and not an off-the-shelf process. Clearly, profit is at the forefront of most commercial developments. The strategy needs to focus on what delivers that client the return. It could be speed to market, to get a product such as residential into the market to maximise the return on sales or leasing. Likewise, low capital cost is always at the front of corporate thinking. But what about the long term? Low operation and maintenance costs can produce a sustainable profit stream. Particularly in the corporate arena, long-term operational costs through facilities management, can be effectively managed and controlled at the inception of a development. Capital employed front end can create a flexible economical operational asset that enhances business performance. But how often do we genuinely consider this and incorporate it into the brief? Too often, the project management function focuses on 'the project' and not the wider issues
This is not 'rocket science', more a greater appreciation of the business world and how we can embrace the dynamics. The processes and systems we possess, combined with the intellect required for effective project management, arm us with the ability to give our clients a better-value service - a service in which they will be prepared to invest more. If project managers can demonstrate that a more client-focussed approach can deliver better value results, then clients will be prepared to pay for a solutions-based service and not a commodity