Project Management - Individual Assignment

Suburban Homes realizes the importance of maintaining excellent relations with all its key stakeholders. Among the stakeholders are clients who purchase homes, local law enforcement agencies, potential buyers, county and state agencies for real estate development, environmental regula- tory agencies, both local and federal, community leaders, contractors, subcontractors, local construction material sup- pliers, and the list goes on.

Suburban Homes decided to build a new community of 120 homes in a suburb of Atlanta. It has acquired 15 acres of land for this purpose. It also has submitted a preliminary plan to the local county government for approval.

Suburban Homes is thinking of hiring a consultant for developing a stakeholder management plan and

communication plan. For its stakeholder management plan, they would like to identify all the stakeholders and develop a stakeholder register. Further, it is considering selection of at least six key stakeholders for a detailed analysis of a priori- tization matrix, as shown Exhibit 6.2, and to develop a stake- holder matrix, as shown in Exhibit 6.4.

As a consultant to Suburban Homes, you are asked to develop a stakeholder engagement plan (Exhibit 6.5) and a comprehensive stakeholder management plan after develop- ing the stakeholder prioritization matrix and stakeholder matrix, as shown in Exhibits 6.2 and 6.4, respectively.

Using the stakeholder management plan, the company has also requested you to develop a communication plan that makes use of Exhibits 6.8 and 6.9

SUBURBAN HOMES CONSTRUCTION PROJECT

Purchasing a new home is the single largest investment most of us will make in our lifetime. You can either purchase the home from a reputed real estate building company or manage the construction of your home using project management principles that you have mastered. The latter approach can save significant amounts of money over the life of a typical 30-year mortgage. Additionally, it is likely to provide you with one of the most satisfying experiences in your life because you will get an opportunity to see the results of choices you made in building your home.1 However, on the downside, if you manage the project poorly, it also has the potential on many levels to be a disaster.

The experience of managing the construction of a single-family home provides a coherent account of costs, benefits, other considerations related to construction, risks, hazards, and critical decisions. The experience also has the potential for joy if the project is a successful endeavor.

Suburban Homes is a medium-sized, fast-growing con- struction company in the Midwest region of the United States. Due to its significant growth and good reputation for building quality single-family homes and townhomes, the

company decided to expand its business to several Southern states in the United States. However, Suburban Homes rec- ognized the scope for managing resources effectively and efficiently to increase profits. It has decided to formalize proj- ect management practices by developing and implementing standard and promising processes, tools, and techniques. For this purpose, the company was looking for a competent project manager to manage its projects. They hired Adam Smith as their new project manager.

Adam Smith had worked for several years in the construc- tion industry and supplemented his experience with project management education. Consequently, he gained considerable experience and developed expertise in managing construction projects. Adam believes in managing projects by adhering to various project management processes, tools, and techniques. In his new position as the project manager, Adam s primary task is to improve the performance of project management and increase the project success rate.

What advice would you offer to Adam Smith?

Suburban Homes, like any other real estate company, has many strategic directions to pursue to expand the company operation and increase revenue and profits. To explore and pursue various investment opportunities that would eventually translate into projects, the company developed strategic directions to suc- cessfully invest in real estate. It identified six options for portfolio project management. They are investments in purchasing land for future development, communities for single-family homes, multifamily properties, small-scale apartment buildings, large- scale apartment complexes, and commercial investments.

1. Purchasing land in areas that have potential for future growth makes sense, as the cost of land tends to be sub- stantially cheaper 10 20 years before it is turned into a developed suburban area. At an appropriate opportunity, the land can be improved to add value, or it can be leased or rented to create cash flow. Further, the land can be divided and parts of it can be sold for a profit. However, this option requires a vision for future growth and devel- opment and consequently, risks are also associated with this strategic direction.

2. Building single-family homes in suburban areas is one of the best and most popular strategic directions for growth for companies like Suburban Homes. Most of the clients who are interested in a quality life and view their home as an investment prefer buying single-family homes. Clients realize that it is easy to rent, sell, and finance.

3. Small multifamily properties usually consist of two to four units. They also present similar advantages that are asso- ciated with a single-family home such as easy financing and being a wise investment option for clients while pro- viding a good residence for their family.

4. Small apartment buildings usually consist of 5 to 50 units for clients to reside in. They are more popular among those who prefer urban areas and a busy social life.

Clients are usually unmarried or married with no children. These properties can be more difficult to finance because they rely on commercial lending standards. For this invest- ment option, Suburban Homes must look for investment opportunities closer to densely populated areas, and the investor must provide parking areas.

5. Large apartment complexes require that you include pools, a gym, tennis courts, and parking facilities, in addition to other attractions that lure people to choose the complex as a residence. Such a complex requires full-time staff to manage the property, provide safety and security, and pro- vide good customer service. These properties can be very expensive to purchase. However, this investment option provides steady revenue flow.

6. Commercial investment, in its truest sense, is an invest- ment for growth and diversity in a portfolio. The aim of this investment is to lease the property for business. Size, style, and purpose also vary. Clients could range from small business owners to large malls and mega office complexes. This investment option offers a consis- tent cash flow. However, occupancy would depend largely on the local economy and could prove to be risky. Further, investments are of higher magnitude and Suburban Homes is seriously considering this option after establish- ing steady growth in the residential market and improving their financial stability and growth.

Given these six options, Suburban Homes has approached you to develop a project selection model to maintain a balanced portfolio.

Reference

https://www.biggerpockets.com/real-estate-investing/strate- gies-niches

Scope Overview

Building a single-family, partially custom-designed home as required by Mrs. and Mr. John Thomas on Strath Dr., Alpharetta, Georgia. The single-family home will have the following features:

3,200 square-feet home with 4 bedrooms and 2.5 bathrooms Flooring hard wood in the first floor, tiles in the kitchen and bathrooms, carpet in bedrooms

Granite kitchen countertops, GE appliances in the kitchen 3-car garage and external landscaping Ceiling 10 in first floor and vaulted 9 ceilings in bedrooms

Business Case

Suburban Homes is in the business of constructing high- quality homes at an affordable cost with luxury options to pro- vide quality of life for families. The business strategy is to use the best construction technologies and practices to enhance productivity and increase profits, while offering cost-effective and best-value homes for all its customers simultaneously. The current project, Suburban Park Homes, is aimed to expand business operations in Georgia.

Milestone Schedule and Deliverables

CM Construction Manager; PM Project Manager

Suburban Homes, once a medium-sized company, is rapidly ex- panding its business to southern states and is focused on main- taining its status as the fastest-growing construction company in

the Midwest region of the United States. Its significant growth and good reputatation for building quality single-family homes and townhomes presents both challenges and opportunities.

Suburban Homes is considering various options to expand its operations while retaining its focus on managing resources effectively and efficiently to increase profits:

Given the nature of its projects, Suburban Homes is con- sidering either a projectized or matrix organization struc- ture. However, a functional organization structure has not been ruled out.

With its focus on maintaining high quality in its construction tasks and end-product (home for the customer) as well as quality assurance in implementing project management pro- cesses, the company is actively considering a combination

of the DMAIC model with a traditional project life-cycle approach. Organization culture plays an important role in sustaining and promoting efficiency. The culture, in turn, is influenced by the organization structure. Suburban Homes is highly committed to employee development and functional exper- tise through training, mentoring, and collaborative learning.

Which type of organization structure is more suitable as Suburban Homes opens new offices in other states? What is your advice to the company to address all these issues com- prehensively and coherently?

Suburban Homes, a medium-sized, fast-growing construction company, has an ambitious plan to expand its business to several southern states in the United States as a result of its significant growth and good reputation for building quality single-family homes and townhomes.

As a project manager, Adam Smith worked for several years in the construction industry and supplemented his experience with project management education. From his ini- tial realization that managing projects successfully requires implementation of various project management processes,

tools, and techniques, Adam recognized the importance of building project teams composed of well-trained staff. From his experience managing a few projects in the Midwest and based on the lessons learned from these projects, it was evi- dent to Adam that Suburban Homes did not place a strong emphasis on people-related factors and team development. Adam recognized the scope for improvement in managing and developing high-performance teams and decided to act on this knowledge immediately.

Adam s primary task was to improve the performance of project management and increase the project success rate, so he wanted to address project team selection and the team development processes. Further, he realized that employee turnover and the expansion of the business in southern states led Suburban Homes to recruit more employees. Many of these new recruits have prior experi- ence in the construction industry. In addition, the workforce now represents different work cultures, attitudes, commit- ment, and work ethics.

Adam recognized the immediate need to manage human resources effectively and efficiently. He decided to formalize

project team selection, development, and management so that all the locations in the Midwest and South will have sim- ilar team management philosophy and practices. To achieve these purposes, Adam has considered the following:

1. Train project managers as leaders. Also, project managers must be trained to identify talent, select project team members, and nurture their growth.

2. Develop a team charter so that all the team members are aware of performance expectations, professional behavior, and other team norms. The charter should also help in training newly recruited employees to improve productivity, collaboration, coordination, communications, and conflict resolution.

3. Develop a conflict management plan and prepare guide- lines for all employees to identify and manage conflicts.

4. Design and implement a decision-making protocol for all the projects and in all locations.

5. Develop norms for high-performing teams.