Project management is the process that involves the use of relevant knowledge and skills, tools and techniques to accomplish the activities intended to meet the project requirement. The development of real estate industry depends on the massive use of labor resource. Therefore, the project managers tackle the elements of strategic advancements in a manner that facilitate smooth operation in the business. The portfolios enable the organization to perform core duties at a minimal cost but with highest added value. The current status of complexity in the market encourages competition for the teams in terms challenges and opportunities within the sector. Strategic positioning of the resources used in the business gives the group a competitive advantage over the other rival firms operating in the same line. The steady analysis of the micro-control policies subjecting the real estate industry to increasing competition explores the factors like scarcity of land. The operations in buildings incorporate multi-participation where the production processes occur simultaneously facilitating the need for strategic planning of resources used in production. The research investigates the prominent strategic management theories that relate to the project portfolios managements and program managements (Manganelli, 2015).
The adoption of real estate enterprise sustains the portfolio selection, generation of project plans and the implementation of checkpoints for the project. Project management concepts are the basic parameters that regulate real estate industry where the competitive market structures make the management departments in the companies to develop and maintain alignment with general environment. The set of strategies designed by the Directorate enables the organization to fit in the firm and environment to be in a position of retaining new customers. The paper adopts strategic management to express the prominent plans used for property management in real estate business. The paper aims at structuring the organization to conform to strategic pathways and highlights important strategic management paths involved in real estate asset management (Bhandari & Verma, 2013). The prominent strategies adopted in the business environment includes the short-term action plans, formulation of relevant policies, procedures, resource allocation plans and programs and projects of particular interest to the management
Research Objective and Question
The concept of project management with reject to economic globalization and technological innovations increases the relevancy of implementation of strategic project management. Expansion in business sizes incorporate4 more projects in the real estate business where the management practices used conform to the modern trends of project management. The responsibility of senior managers increases in complexity on how to make appropriate choices in the manner of organizing and coordinating factors of production that include human resource, materials and financial aspect (Hill & Jones, 2008). The limitation of the research report to the secondary source of information limits the research to qualitative with limited analysis on the quantitative management components. The understanding of strategic management’s practices will enable the research to answer the questions as;
- Means of selecting the best portfolio that consumes little resources but generates maximum benefit for the enterprise?
- What types of organizations are suitable for the implementation of strategic project management?
- How to conduct performance assessment for strategic project management team in the organization?
The research incorporated analyses made from reputable secondary data sources that highlight the views of industry managements on the effective strategies to adopt in the real estate sector and achieve significant growth based on the selected management models. The information facilitates selection of appropriate strategies for the company that operates efficiently in the existing business environment (Dubey, 2012). The understanding of strategic project management in the context of real estate development analyses the external context or strategic environment and the internal context referred to as organizational demands.
The strategic management of projects is a vital tool that coordinates the projects in the company and it project the future trends in project managements. The implementation of strategic management policy in the compound project increases the overall benefits realized from the project. Implementation of strategic project management relies on the project selection conducted with consideration of urgency and relevancy of project activities that facilitate efficient operations for maximum return on investment (Clelandn & Ireland, 2007). Proper selection of activities prioritizes project elements that increase risk efficiency, revenue for both client and organization, as well as the learning opportunity for new employees. The practice of good organization strategy facilitates efficient communication within the team through sharing, collaborating and optimizing data in conformity with the strategic plans in place. The cultural elements provided a platform that harmonizes the management perspectives about project implementation strategies for the realization of optimal performance.
The success in research presentation relied on the analysis of presented data facilitated harmonization of concepts based on similar analogy. The adoption of stratified sampling techniques among the selects real estate companies provides significant information on the manner company management board adopted the strategic project management policy in facilitating the progress achieves in property management plans. The implementation of purposeful sampling provided significant data that specifically relate to the research requirements that focuses on restructuring the organization to implement strategic management’s policies. That selection of the samples relied on the reliability of selected enterprises in the real estate industry (Hill & Jones, 2008). The categories adopted in the research relied on the close margin of revenue as the greater disparity in income influence the management strategies adopted in the business.
Table: Participating companies (Hill & Jones, 2008)
The research findings in the level of implementation of strategic management policy complimented the analytical data captured in the annual reports relating the performance of the companies sampled. The data collected through interviews involved the response from management who are well conversant with strategic management’s procedure in the organization (Manganelli, 2015). The data provided an important starting point in evaluating the impact of initiation new strategy in real estate project management plans.
For rapid data analysis, the use of Excel and SPSS accomplished the process after transferring data into soft copies. Data transfer while securing the rough draft data sheets and counter checking the entries made facilitated the realization of data accuracy. The replay of tapes recorded during interviews harmonizes the data and eliminate the possibility of error due to duplication of omission (Clelandn & Ireland, 2007). Comparison of data collected verse data gathered from literature projected the advancement in the implementation of strategic management principle in companies operating in the real estate environment.
The idea of portfolio accelerates formalization of appropriate management strategies that are of benefit to the organization as it compares the link between the variables based on the data obtained through interviews, observation of project progress and survey supported with secondary sources of information. The analysis of present business environment affects the portfolio characteristics in business. The selection of strategy relies on the potential impact of the project to the organization. At some point, the policy adopted bears significantly change to input and output of the project (Hill & Jones, 2008). The decision-making plans operate on two projects taking minimal cost with shorter completion intervals thus enabling the organization to benefits from the economy of scale policy.
The variation in resource consumption in a project run under strategic management and those not operated under a similar arrangement. In reality strategic project management economically utilizes resources thus sustains optimal choices and share relevant resources like the planner, sales representatives, hardware and other appropriate production resources. The use of support matrix provides a valuable analytical tool for projecting resource consumption in the business strategic management business model (Clelandn & Ireland, 2007).
The benefit interaction provides a reflection the project has on another through substitution, synergism principle, repulsion and prerequisite management factors. The interpretation of related projects increases the total benefits realized by the Directorate is the synergism as substitution refers to the reduction in the total benefits achieved from the project upon implementation of new management strategy. The concept of repulsion dictates the implementation of projects where the undertaking of one activity restrain the happening of another one while the prerequisite displays the relationship that exists between activities in the project. The explanation of profit can follow the matrix profile (Manganelli, 2015).
Technical interaction reveals the existence of probability of association where the occurrence of one activity in the project presents significant influence on the outcome of another. Like the in cases where the implementation of one activity increases the success probability of another activity in the project. The management department relies on such factors to focus on the adoption of a new strategy in the arrangement (Cattani, 2011).
Display of Interdependency
Strategic management of resources incorporates increased interdependency between departments in the same company that attracts several activities to a coordination point and subjecting them to a single management concept for increased benefits. Development of project estimates before undertaking the assignment provides the management with relevant information regarding the project cost and expected benefits (Hill & Jones, 2008). The principle of business forecasting is the preliminary survey that presents the paints the actual performance requirements to the management who uses relevant technology in handling the condition. The nature of the modern business environment and the use of improved technology accelerate interdependency in the organization since the presence of professional workforce over rely on the technology making them access several sectors of the enterprise thus expedite the level of information sharing in the discipline. Interdependency solves the scarcity in the supply of professional skills within the organization operating under strategic management platform that utilizes the available resource thus reduces the prominent indirect and direct costs incurred under conventional management models.
Strategic project management enables the company heads to achieve remarkable commendations based on the positive progress the business makes as a result of the implementation of strategic management in conducting a business operation in the real estate fields. Timely completion of contracts and other assignments cement the trust the company attracts from the public thus improves the financial performance and benefits the shareholders. The strategic management is a useful tool that accelerates the organization’s reputation thus influences the future of business encounters the firm makes in line with business ambitions (Cattani, 2011).
The location of assets within the company’s premise presents significant impact to the performance attained between interdepartmental coordination. The wider separation distance increases coordination time though projected no impact on the operation styles adopted by the departments and achievement of their objectives. Location of premises plays a minor role in their visibility in the market compared to the impact realized by management strategies adopted. The level of risk and safety policy implementation improves the profile of a company in the labor market since professionals prefer working in organizations that uphold high standards of security and health standards. The size of the department influence the objective destined for achievement while the smaller agencies may not have clear goals for the department. The smaller units rarely benefit from the action of larger departments in the organization (Dubey, 2012).
The level of flexibility displayed by the departments in conformity to strategic management enhances their performance in the group. The strategic management further aliens the departments to their potential activities for maximum return on capital invested in the system. The management trends accommodate departmental autonomy in a larger organization that have every department as an entity that accounts for the services rendered to the other departments within the organization. The financial harmonization among the agencies is important since it dictates the performance of every team. Centralization of finances in the organization enhances management and policy implementation (Bhandari & Verma, 2013).
The strategic project management is a new concept the accelerate project progress regarding resource allocation and profit generated from the project. The application of the concept in real estate business enabled the firms to achieve substantial benefits through harmonization of factors of production to the extent of extracting potential advantages. The strategic managements enable the companies to retain their visibility in the market regardless of their physical location. The strategic management harmonizes the four elements that dictate the performance of organizations in the real estate sector for the benefit of the company. The components include resource allocation to relevant factors of production, the benefits realized from the efficient use of factors of production and the project outcome that reflect the level of expertise involved in generating the product every component is important as in dictate the performance of the other.
The matrix analysis of the progress of new management technique exposes the significant roles played by the departments based on the size of the organization as larger group increasingly adopt new technology in their management operations compared to upcoming companies. The control unit is a vital organ or the enterprise regarding policy formulation and implementation. Therefore, the management must consist of a team of professionals’ with an understanding of the principle objective of the organization. The efficient resource allocation by the Directorate tends departmental performance thus enable the organization to achieve its primary goals. The future research will be relevant in developing risk management strategies while implementing the strategic management policies within the real estate business sector.
Cattani, G. (2011). Project-Based Organizing and Strategic Management. Bingley, U.K: Emerald.
Cleland, D. L., & Ireland, L. R. (2007). Project Management: Strategic Design and Implementation Instructor’s Guide. 5th Ed. New York: McGraw-Hill.
Dubey, S. S. (2012). It Services Business Management: Concepts Processes and Practices. Amsterdam: EG Books.
Hill, C. W., & Jones, G. R. (2008). Strategic Management: An Integrated Approach. Boston: Houghton Mifflin.
Manganelli, B. (2015). Real Estate Investing: Market Analysis, Valuation Techniques, and Risk Management. Cham: Springer International Publishing.