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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
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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 II : Defining the Project Mission
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 II : Defining the Project Mission
Deciding What the Client Wants • understanding the business • justifying the investment • defining the project mission II : Defining the Project Mission
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 II : Defining the Project Mission
Spatial Configuration • staff interaction • shopper browsing • pedestrian movement • patterns of crime II : Defining the Project Mission
Indoor Environmental Quality • personal control • speedy response • natural light • work group spatial definition II : Defining the Project Mission
Symbolic Value • defining values • God or mammon • attracting key staff • attracting the right customers • contributing to the urban culture II : Defining the Project Mission
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 II : Defining the Project Mission
Net Present Value discounted cash flow is : Σ where Cout is the (negative) cash flow Cin is the (positive) return r is the rate of return expected by investors II : Defining the Project Mission
Problems with NPV • both incomes and outgoings are uncertain • many costs and benefits cannot be priced • corporate image • national solidarity • fashion consciousness • l’effet du prince • urban regeneration • social prestige • cost/benefit analysis II : Defining the Project Mission
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? II : Defining the Project Mission
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 II : Defining the Project Mission
Product Integrity quality of conception quality of specification quality of realisation II : Defining the Project Mission
The Project Mission at The University of York symbolic buildings quality of conception departmental buildings halls of residence quality of specification quality of realisation II : Defining the Project Mission
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 II : Defining the Project Mission