Distinctive features of corporate development projects management compared to commercial development projects

Abstract

Based on the main essence of development project management, i.e. managing efficiency of such projects, the authors have analyzed the existing approaches to defining the concept of efficiency. As a result of the analysis it was concluded that the existing approaches to the definition of the concept of efficiency are not fully applicable in the context of corporate development project management. Therefore, based on the existing approaches and taking into account the specifics of activities, the concept of efficiency was formed in relation to corporate development projects. In addition, taking into account peculiarities of business processes of corporations and development activities within them, the organizational structure of interaction between participants of corporate development projects was clarified. Taking into consideration connection of corporate development projects with corporate strategy, managerial decision-making algorithm was developed in the process of controlling activities. Given the focus of corporate development projects exclusively on corporate strategy objectives, it was found that the standard indicators used in commercial development projects are not fully applicable to corporate development project performance evaluation. This fact creates a need to develop new methods to assess the effectiveness of such projects. One of the parameters which can be used to quantify the economic efficiency of corporate development projects is the total cost of ownership of real estate. This study outlines the general principles for determining this parameter for corporate development projects. Given the complex function of real estate objects in a corporation's portfolio, a social return on investment parameter is proposed to assess the positive effect of projects.

Keywords

• project management
• corporate real estate development
• development efficiency