Business Strategy

Identify and list building uses or functions. These may include uses such as:

Retail

Institutional

Instructional

Medical

Storage

Food service

Recreational

Research

Multimedia

Office

Light manufacturing

A description of other options which could also meet the facility need should be defined. (As an example, was renovating existing space rather than building new space considered?) A listing of current facilities that will be vacated due to the new project should be produced.

Identify driving forces for the project and specify what is most important from the viewpoint of the owner including both needs and expectations. Address items such as:

Need date
Target consumers
Building utilization justification
Possible competitors
Level of amenities
Location
Sales or rental levels
Market capacity
Use flexibility
Number of lessons/occupant types
Support new business initiatives
Facility replacement/consolidation

A project strategy should be developed that supports the business justification in relation to the following items:

Funding availability
Cost and financing
Schedule milestones (including known deadlines)
Types and sources of project funds
Related/resulting projects

An economic model should be developed to determine the viability of the venture. The model should acknowledge uncertainty and outline the boundaries of the analysis. It should acknowledge items such as:

Design life
Building ownership
Tax implications of investment including length of ownership
Long-term operating and maintenance costs
Resale/lease potential or in the case of institutional buildings, long-term use plans
Analysis of capital and operating cost versus sales or occupancy and profitability

Facility size requirements are many times determined by applicable code and are often driven by occupancy. Note that this analysis is at the macro level. Some considerations are listed below:

Number of occupants
Volume
Net and gross square footage by area uses
Support infrastructure
Classroom size
Linear feet of display space
Number of laboratory stations
Occupant accommodation requirements (i.e., number of hospital beds, number of desks, number of workstations, on-site child care, on-site medical care, cot space, etc.)

The possibility of expansion and/or alteration of the site and building should be considered for facility design. These considerations consist of a list of items that will facilitate the expansion or evolution of building use including adaptability/flexibility.

Evaluation criteria may include:

Provisions for site space in case of possible future expansion up or out
Technologically advanced facility requirements
Are departments or functional areas intended to “grow in place” during the future phase?
If there will not be a future expansion of the building, how will departments or areas expand?
Are any functional areas more likely than others to move out of the building in the future to allow others to expand or move in?
Who will occupy the building in five, 10, 15, 20 years?
Flexibility or adaptability for future uses.
Future phasing plan

Evaluation of sites should address issues relative to different locations (i.e., global, country, or local). This evaluation may take into consideration existing buildings or properties, as well as new locations. The selection criteria include items such as:

General geographic location

Access to the targeted market area
Local availability and cost of skilled labor (e.g., construction, operation)
Available utilities
Existing facilities
Economic incentive zones
Tax

Land availability and developed costs
Legal constraints
Unusual financing requirements in region/locality
Domestic culture vs. international culture
Community relations
Labor relations
Government relations
Political issues/constraints
Education/training
Safety and health considerations
Environmental issues
Symbolic and aesthetic
Historic preservation
Weather/climate
Permitting Schedule

This statement defines the project objectives and priorities for meeting the business strategy. It should be clear, concise, measurable, and specific to the project. It is desirable to obtain total agreement from the entire project team regarding these objectives and priorities to ensure alignment. Specifically, the priorities among cost, schedule, and value-added quality features should be clear. The objectives also should comply with any master plans if applicable.