Strategic Management of Architectural Projects - Term Paper Example

STRATEGIC MANAGEMENT OF ARCHITECTURAL PROJECTS SECTION A Introduction Strategy is a topic which has required extensive thought and effort and has been used in several sectors that encompass the political, economic, social and military dimensions. Strategy is the formulation of an approach that has been used for centuries. The earliest known instances when the concept of strategy was used effectively was in the case of military generals in the Roman civilization, who attempted to outline the various options that were available to them for waging a battle of conquest and how they could be exploited with an aim to win the battle. The requirement for the need to devise strategies in businesses can be gauged simply from the amount of literature that exists on the subject. Most of the theories and techniques to devise strategies in a constructive manner have been developed by theorists and researchers. However, the usefulness, credibility and success rate of a strategic approach can only be certified by the practitioners who implement it. The construction sector is no exception to this fundamental principle of devising a strategy as several parameters need to be managed effectively in order to affect a project within the constraints of time, resources and money. Several researchers such as Channon, Grinyer and Newcombe have contributed immensely to the field of strategic management in the field of construction and architectural design. Complexities in construction Construction is an important sector of the economy and comprises the involvement of several critical entities. Among these, the architecture is extremely important as it not only helps provide a suitable design of the construction, but also helps determine several details that go into it such as the structure of the building, the dimensions of the construction, the materials that need to be used as well as the way in which each constituents of the construction should be aligned with each other to provide rigidity. Additionally, a major responsibility of the architecture team is to help determine the feasibility of the construction in correlated with the devised architecture. The financial viability of the project along with the benefits that can be obtained also need to be determined by the architect. A construction is the involvement of several activities and stages that progress over a period of time. The project needs a regular and thorough oversight that can assess the costs and quality of the construction at all stages. In order to be able to do this at a constant pace, the architect devises a development plan that outlines the various indicators that need to be assessed as required. Providing a course for ensuring the safety and health of the workers is also an important aspect under construction management to ensure smooth work and avoid any lapses or delays (Joseph A. Demkin, 2001). The description of the above requirements of an architectural project not only determine the extensive range of requirements that need to be fulfilled, but also goes to show the intricate manner in which several key parameters are intertwined with each other. Thus, any flavor of management within this scenario needs to adopt an approach that provides a suitable solution to every aspect of the project and must additionally be in a position to fulfill all of them satisfactorily. Strategic management is an innovative method to tackling complex projects that has been accepted as an industry wide standard. Strategic management Before discussing the details of the need for implementing strategic management into architectural initiatives, it is important to introduce the basic meaning of strategic management. Managing on the basis of a well defined strategy simply refers to a systematic procedure that transforms the target process towards more challenging phases thereby allowing the company to relate with its environment in a manner that ensures continued success at every phase, where the process additionally accommodates any kind of surprises that may come along the way. Strategic management begins with deciding a devised approach and outlining a plan to implement the devised strategy within a specific time frame. Strategic management comprises three definitive phases, each of which is crucial for the effectiveness of the resultant strategy. The initial approach towards creating strategy begins with a preliminary strategic analysis. In this phase, the task of a strategist is to assess and understand the current position of the firm with respect to the target environment. This involves a detailed analysis of the scenario in which the company is operating; the objectives that it needs to accomplish in order to determine a project as completed. A company faces several challenges in the case of architectural development. Considerations such as the correct estimation of all the required dimensions of the project, the resources available, the range of designs and variations that can be included in the project in a match with all other required parameters are all considerations that must be given due credence as part of the strategic analysis phase (D. A. Langford, Steven Male, 2001). At the end of the analysis, the project manager is usually faced with a number of choices, each of which needs to be compared against the final parameters that are required to be fulfilled. The work of the project manager at this juncture it to make a strategic choice, wherein the selected option is determined to be the best fit among the available choices to complete the project. This involves the development of a requisite course of action that needs to be followed during the design of the architecture. With the choice made, the next step under the strategic approach is to go about identifying the pattern and combination in which each of the steps in the action plan need to be implemented. It is during this strategic implementation phase where each of the steps outlined in the action plan are studied to outline their interdependence to help identify which stage needs to be performed before another can be undertaken. This is usually done through analysis techniques such as path analysis where a set of nodes, links and weights goes much beyond simply determining a course for strategic implementation by providing a critical oversight over important parameters such as phase cost, schedule, resources available etc (R. Howes, J. H. M. Tah, 2003). In the case of the ‘pavilion’ project, the assessment of the various resources required for construction has been assessed against issues such as sustainability and environmental friendliness. Additional arrangements have also been planned that would allow for maximum light into the construction along with proper ventilation. Such considerations are common questions in architecture, which need to be solved in order to provide a favorable design to the client. The successful implementation of each of the three phases under strategic management is essential for the qualitative performance of an architectural project, which cannot otherwise be undertaken simply by a group of technically trained architects working together. The reasons for the need to have specialist management personnel for managing architectural projects and the preference of construction companies to go along these lines is highlighted in the next section. SECTION B Managing a construction project is a highly skilled profession, and requires to be handled by an individual with years of experience proven by accomplishments and best practices adopted all along. As has been mentioned in the preceding section, the primary requirement for managing an architectural project is to be able to create a positive impact in all areas concerned ranging from the technological, financial and resource aspects to estimation, planning and resolving problems. However, most of the times, the completion of the project and the benefits generated in the end are all that matter to the owner of the construction, who is the client in this case. As such, despite the extensive range over which a project manager operates and tried to satisfy, the metrics for success are ultimately quite thin and demanding (Chuck Thomsen, 1989). Strategic construction management When a client entrusts a project to an architectural project, their only concern is to benefit from a resulting design that is aesthetically appealing and structurally strong. However, the client is also interested in achieving this with utmost scrutiny on the finances. Thus, as is the case with any business, the ultimate motive behind an architectural project is to derive maximum benefit at the least cost. One of the parameters that come under assessment while considering costs is the schedule that depends on the design and structure of the construction. Time and budget are therefore important consideration while designing the architecture of a building, which are critical to the success of the project and impact the profit margin as well as the cost benefits. An architect is a technical professional involved in planning and designing buildings apart from undertaking the responsibility of supervising the construction activity. Thus, an architectural project comprises the roles of designing as well as overseeing the construction. The creativity of the architect comes to the forefront through the design of buildings that comply with legal jurisdiction apart from providing arrangements for height, dimensions, transparency and several other aspects to the building. However, the creative element of architecture is limited until this point and does not contribute to allowing an architect to monitor and steer the construction process along the metrics that are critical to the success of the project. In fact, in the absence of a well defined management strategy, the project can lose track of its ultimate goals and may even miss its actual objectives in the case of mismanagement. One of the problems associated with managing construction is the amount of information that needs to be assessed, which often leads people to conclusions without making a sincere and dedicated approach to understanding the total extent of the problems (Joseph A. Wilkes, Robert T. Packard, 1988). Cost is one of the major factors in construction and its management can be a lucrative or disastrous element for the project and the company handling the project. Most construction projects are let out with an extremely tight budget and timeframe, failing which the construction firm has to pay a lot of hefty fines as default fee. In the case of cost management, the construction manager has to obtain an oversight over several frontiers in order to manage the budget. Firstly, the manager needs to have a clear figure over the amount of available funds and be able to use it in an optimum manner, which is only possible with a control over the entire scope of the work. Secondly, a construction involves phases, each of which needs to be studied for the time, budget and resources required (Hojjat Adeli, Asim Karim, 2001). The architecture firm also needs to have a clear idea of possible delays and must be able to have flexibility in procuring and contracting the required resources. Additionally, a management oversight also needs to be aware of the cash flow within the project. Architecture management The extent and expertise needed to manage all these requirements for managing an architectural project cannot be fulfilled by merely being creating enough and possessing all the skills required to produce a worthy design. The lack of any skill in managing a construction process can severely beset a company from the business needs required for the success of the project. The expertise is also enhanced only by practical exposure over a number of years, which is also the reason why several construction firms undertake construction activity under the supervision of an architect with several years of experience. Traditional construction involved the collaboration of four parties namely: a client, an architect, a builder and the government (Stanley Goldhaber, Chandra K. Jha, Manuel C. Macedo, 1977). The construction industry in recent times has begun to include a fifth additional entity that oversees the construction in all phases. The benefits of the inclusion of a construction management firm as the fifth element has its inherent advantages that aims to satisfy both the client as well as the builder, which is also the reason for it to be preferred everywhere. Most construction projects are accompanied by a commitment from the manager to deliver the constructed project within a GMP (Guaranteed maximum price). An architect with a technical oversight has no means to arrive at any such price, which puts the firm at risk of defaulting. A construction manager fulfills the role of consulting between the client as well as the builder. The collaboration with the clients is during the initial phases of design and evaluation, while the role moves towards the builders during the construction phase. The presence of a GMP required that the manager must control and manage all construction costs. The manager is also responsible for conferring with both parties to estimate the costs and the financial risks involved. In case of any cost discrepancies, a manager must also have the knowledge to provide alternatives that help make a smooth and fast decision. The role of management also comes into prominence when any modifications to design need to be done in a fast and efficient manner, wherein a manager becomes a critical interface between the client and the designer (architect) (W. D. McGeorge, Angela Palmer, Kerry London, 2002). The above advantages are some of the primary reasons due to which clients prefer to entrust the task of designing the architecture to a manager rather than a simple architect simply due to the fact that the role requires knowledge and experience over several domains, which cannot be fulfilled by mere creativity or technical know-how. As such, the enhancement of an architect towards understanding the managerial aspects of design and construction can go a long way in benefiting the project in a significant manner. REFERENCES 1. Joseph A. Demkin (2001), The architects handbook of professional practice. New York: John Wiley. 2. Chuck Thomsen (1989), Managing Brainpower: Organizing, Measuring Performance and Selling in Architecture, Engineering, and Construction Management Companies. Chicago: American Institute of Architects Press. 3. Joseph A. Wilkes, Robert T. Packard (1988), Encyclopedia of Architecture: Design, Engineering & Construction. Univrsity of Michigan. 4. Hojjat Adeli, Asim Karim (2001), Construction Scheduling, Cost Optimization, and Management: A New Model Based on Neurocomputing and Object Technologies. London: Taylor & Francis. 5. W. D. McGeorge, Angela Palmer, Kerry London (2002), Construction management: new directions. London: Blackwell. 6. Stanley Goldhaber, Chandra K. Jha, Manuel C. Macedo (1977), Construction Management: Principles and Practices. New York: Wiley. 7. D. A. Langford, Steven Male (2001), Strategic management in construction. New York: Wiley. 8. R. Howes, J. H. M. Tah (2003), Strategic management applied to international construction. London: Thomas Telford. Read More