mission definition is strategic management

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II Defining the Project Mission

• mission definition is strategic management
• why strategic ?
• relationship of client to environment
• allocation of scarce resources
• longer term future of client
• strategy implementation
• why strategies ?
• definition process
• communication of intent
• baseline for planning and control

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3 Deciding What the Client Wants
the project was assembled round a hole like a
Polo mint..there was no client driving it
forward with a vision of what the operator needed
to have Sir Alastair Morton
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Deciding What the Client Wants

• understanding the business
• justifying the investment
• defining the project mission

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Understanding the Business

• four types of business process
• information flows
• resource flows
• material flows
• people flows
• people and material flows inherently spatial
• spatial configuration
• indoor environmental quality
• symbolic value
• life-cycle costs

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Spatial Configuration

• staff interaction
• shopper browsing
• pedestrian movement
• patterns of crime

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Indoor Environmental Quality

• personal control
• speedy response
• natural light
• work group spatial definition

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Symbolic Value

• defining values
• God or mammon
• attracting key staff
• attracting the right customers
• contributing to the urban culture

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Justifying the Investment

• net present value
• does the project add value?
• cost/benefit analysis
• can all value be quantified?
• uncertainty in the calculation
• benefits
• costs

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Net Present Value
discounted cash flow is
S
where Cout is the (negative) cash flow Cin is
the (positive) return r is the rate of
return expected by investors
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Problems with NPV

• both incomes and outgoings are uncertain
• many costs and benefits cannot be priced
• corporate image
• national solidarity
• fashion consciousness
• leffet du prince
• urban regeneration
• social prestige
• cost/benefit analysis

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Cost/Benefit Analysis

• poor price signals
• markets distorted
• cost and/or benefits not traded
• shadow pricing
• net gain or loss associated with having one unit
  more or less of the asset
• problems
• how do we value a human life?
• how do we value a view?

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Defining the Project Mission

• quality of conception
• symbolic aspects - delight
• quality of specification
• functional aspects firmness and commodity
• quality of realisation
• service aspects
• a model of product integrity

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Product Integrity
quality of conception
quality of specification
quality of realisation
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The Project Mission at The University of York
symbolic buildings
quality of conception
departmental buildings
halls of residence
quality of specification
quality of realisation
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The Development of Concession

• combining finance, construction and operations
• the problem of life-cycle costs
• the problem of defining services, not facilities
• the output specification