Project Leadership Guru™

Real Estate Financial Modeling (REFM)

on December 18, 2010 by admin in Project Management, Real Estate, Real Estate Finance, Strategic Management, Training Leave a comment

I am pleased to introduce a new member to our Center of Excellence, Real Estate Financial Modeling (REFM) – http://www.realestatefinancialmodeling.com/

REFM is the premier provider of Excel financial spreadsheet models, financial modeling education and financial modeling consulting for real estate transactions of all types. Its founder and Managing Principal, Mr. Bruce Kirsch, will be featured as a permanent member of this blog and will be a regular contributor to its content.

REFM provides its customers with the advanced financial modeling knowledge, tools and skills they need to successfully model their transactions and present them with confidence internally and to potential partners, lenders and investors. REFM’s educational training is offered through digital Video Tutorials, Live Group Training seminars, and through the Urban Land Institute. REFM also provides Private Consulting Services.

Based in Arlington, VA, REFM was founded by Bruce Kirsch in 2009. Mr. Kirsch is a recognized expert in and top instructor of Microsoft Excel-based financial modeling for real estate transactions. Through REFM, Kirsch has trained both new and experienced real estate professionals in financial modeling from a wide variety of real estate businesses, organizations and institutions, including private equity, development, brokerage, trade groups and government.

In addition, REFM has given on-campus real estate financial modeling training sessions to Undergraduate, Masters and MBA students from top schools including The Wharton School, The University of Pennsylvania School of Design, Harvard Business School, Harvard Graduate School of Design, Massachusetts Institute of Technology, MIT Sloan, UCLA, USC, Georgetown University, Cornell University, University of Chicago and George Washington University.

REFM is a member of the District of Columbia Building Industry Association.

Tagged with blog, contributor, education, excellence, Financial, financial spreadsheet, harvard business school, harvard graduate school, harvard graduate school of design, knowledge, massachusetts institute of technology, massachusetts institute of technology mit, modeling education, Principal, real estate transactions, spreadsheet models, training, Tutorials, University, urban land institute |

Credibility (from the Architect’s Corner)

on November 1, 2010 by admin in Project Leadership Leave a comment

Matthew Barhdyt, AIA, LEED AP

mbarhydt@adparchitects.com

Principal, Acheson Doyle Partners Architects

Talent is not enough. In an economy where opportunity still seems to be more of a promise than a reality, credibility can make the difference between winning or losing the job–if you’re the architect on the street looking to grab that rare opening of employment–or if you’re a leader in your firm sweating to bring in the next project. Credibility gets you the unexpected reference from someone you worked with only tangentially and who recommends you to a potential new client or a potential new employer. Credibility gets you the new project from an old client without having to compete. You have proven yourself before and no doubt you will prove yourself again. It is your word, your reputation, your experience, your conviction–and yes, your talent– that you carry with you as an individual. Find these same qualities embodied in every member of a practice and you’ll know what it takes to be successful.

Tagged with Acheson, aia, Architect, arhitect, Auto, client, com, conviction, Corner, credibility, DOyle, Draft, economy, employer, experience, individual, job, leader, LEED, member, no doubt, partners architects, Principal, reputation, someone, street, tangentially |

The Importance of Alignment in Project Management

on October 22, 2010 by admin in Project Governance & Reporting, Project Leadership, Project Management Leave a comment

Alignment of interests is a key trait of successful projects. Alignment is required at several levels. The objectives and actions of project teams must be aligned with those of the organization. Similarly, project teams must be aligned with clients. Proper alignment ensures that surprises are minimized and information flows in a transparent manner. Proper alignment between project teams, their organizations and their clients is not easy to achieve. It is a result of a consistent effort to promote open communication, timely reporting, and honest assessments. This requires a high level of maturity and leadership at the project level and at the senior management level.

Failure to achieve alignment can cause gaps in information, increased mistrust, erosion of relationships and set the stage for antagonism and defensive attitudes that undermine project success.

Tagged with alignment, antagonism, Auto, Communication, consistent effort, Draft, effort, erosion, honest assessments, Information, information flows, Leadership, level, management, management level, maturity, mistrust, open communication, organization, Project Management, project success, proper alignment, result, senior management, stage, transparent manner |

LDs vs. Incentives on Projects

on September 3, 2010 by admin in Construction Economics, Construction Management, Program Management, Project Management, Strategic Management 1 Comment

I have a nagging question which I cannot answer. Why do some Owners (including Government institutions) insist on including LDs (liquidated damages) in contracts? Based on my experience and on informal surveys I have taken, LDs, in general, DO NOT work. They make no sense from an economic viewpoint. Incentives make much more sense. Here’s my rationale -

1. LDs raise costs for the owner. The purpose of well prepared and properly adminstered contracts is to increase value, not raise costs. LDs run contrary to common sense and do not stand up to the rigor of analysis.

- Bidders have to factor in the risk of LDs. That’s the first layer of added cost.

- LDs create an adversarial relationship wherein the contractor and owner jockey for position to “manage” the LD process. The focus of the contractor is on defending against potential LD claims. So naturally, the contractor diverts attention and resources to establish claims which counteract potential LDs. This “contractual behavior” adds cost to all parties.

- It is VERY difficult for an Owner to successfully extract LDs. The burden of proof weighs heavily in the favor of the contractor. A savvy contractor is usually able to assert counterclaims against the owner, especially on a complex project.

- Adversarial relationships undermine the spirit of cooperation, knowledge sharing, communication and transparency that are essential on large and complex projects.

2. Incentives work much better because they appeal to stronger, commonly shared economic interests.

- The owner gains economically when a project is successful. Incentives are a vehicle to share in these gains.

- Incentives are a net positive for bidders, therefore, they do not drive up the cost of bids. If anything, they should drive bids down for confident bidders.

- The opportunity to earn an incentive or bonus can be shared by the contractor with the project team and subcontractors. This creates a solid potential to align interests. When the owner’s interests are aligned with the project team, good things happen.

3. Common Sense.

- Would you tell an employee that if their performance was low, they would have to return money at the end of the year? Or would you establish performance-driven bonus targets?

I’d like to hear your opinions in this matter. What experiences have you had which either support or refute my arguments?

Tagged with adversarial relationship, analysis, Auto, Bidders, burden of proof, complex project, Draft, economic interests, economic viewpoint, experience, focus, government institutions, incentive, Incentives, informal surveys, LDs, NOT, position, poten, purpose, rationale, rigor, risk, value |

Project Management Innovation

on August 15, 2010 by admin in Program Management, Project Leadership, Project Management Leave a comment

I am pondering several interesting concepts related to project management innovation. These drive at the heart of team building, organizational excellence and project performance.

1. Can we address project management innovation in a general way?

2. Can mid-size companies strive to evolve along the path of project management maturity in an economical manner?

3. How can businesses use project management innovation to to increase profitability?

I welcome responses from readers of this blog.

Tagged with Auto, blog, Building, Draft, drive, economical manner, excellence, heart, management, management innovation, maturity, mid size companies, organizational excellence, performance, profitability, project management maturity, project performance, team, team building, way |

Business Relationships are Key

on August 10, 2010 by admin in Design, Project Leadership Leave a comment

Architectural Insight…by Matthew Barhydt, AIA, LEED AP

I recently received a phone call from a former colleague with whom I worked many years ago. I probably hadn’t seen him in at least 10 years but when I picked up the phone and he said, “Matt, this is _____ _____,” I suddenly had an image of him in my mind and I remembered the firm where we had worked, the projects we had been on together, and even a bit about his family. We spent a couple of minutes catching up, which led to the reason for his call.

Working now for a prominent Owner’s Rep, he was asking me if my firm wanted to be included on an RFP he was about to send out for a new project. It wasn’t that he just decided to renew an old relationship. It turns out that we had presented to his firm and a client they were representing last fall and been short listed by them for his client’s project (which we ultimately lost out on). So we had already made a favorable impression. And in searching for another architectural firm to include on the RFP list, he got in touch with an engineer with whom he was working on a related project. In fact, this engineer and I are very friendly and we try to do a lot of co-marketing together; he immediately recommended my firm and me. Hence, the phone call.

We’re now putting together a proposal and we’ll see if we get the project. The lesson that I’ve taken from this–and it’s a lesson I’ve learned now many times—is that your best opportunities start with people you know. The big city is really not so big and you never know whom you’re going to run into from your past, especially once you begin to accumulate some years in your career. The professionalism with which you must always cloak yourself is critical but filter it through your own personal approach; you want people to remember you.

Matt Barhydt 8.7.10

Tagged with aia, architectural firm, Auto, business relationships, call, client, couple, couple of minutes, Draft, family, favorable impression, insight, Key, LEED, personal approach, phone, professionalism, reason, related project, rfp, Working |

Project Management and Project Leadership Training

on August 8, 2010 by admin in Program Management, Project Leadership, Project Management, Training Leave a comment

There are so many courses and programs today on the subject of project management and project leadership. How does an organization choose from the dizzying array? I have some thoughts which I hope can clarify the decision-making process. While many programs are good at delivering on specific issues such as risk management, scheduling, communication and integration etc…, few are good at addressing the questions and concerns that corporate executives, PMO directors and stakeholders raise.

1. How does the program integrate the nuts of bolts of project management training in a way that translates into a useful experience?

2. How does the program provide a wholistic learning experience that yields leadership insight and tools that can be used right away?

3. How does the program add value by provoking a higher order of thinking among seasoned project managers and project leaders?

4. Does the program provide significant lessons that justify the expense?

5. Does the program inspire learning, communication, dialogue, dissent and debate? Or does it merely deliver information?

In today’s hyper-competitive market, organizations, both private and public, are looking for superlative value for their training dollars. Before they spend any money on project management training, they must buy into the value proposition.

Tagged with Auto, competitive market, corporate executives, dialogue, Draft, insight, leadership training, management, organization, project leaders, Project Leadership, project management training, project managers, proposition, risk, Risk Management, Scheduling, subject, superlative value, today, value proposition, way |

Architectural Insight

on August 1, 2010 by admin in Design, Program Management, Project Consulting Leave a comment

The Architect’s Corner will feature writings by Architects on topics relevant to our readers. I am pleased to announce that Mr. Matthew Barhydt has joined this blog, and will offer his insights and views on design, construction and project management.

Matthew Barhdyt, AIA, LEED AP

mbarhydt@adparchitects.com

Principal, Acheson Doyle Partners Architects

Matthew Barhydt has over 27 years of experience across a wide range of new construction, historic rehabilitation, renovation and interior design projects. Mr. Barhydt’s work with Acheson Doyle Partners includes leading the firm’s effort for the design and construction of a new Retail Pavilion at Liberty Island; a multi-million dollar condominium conversion project, Miraval Living, on Manhattan’s Upper East Side; the design and construction of a new Chapel for the Archdiocese of New York; and the renovation of the food service facilities at Ellis Island. He oversees all of the firm’s work with the National Park Service, including the rehabilitation of the National Park Service’s Floyd Bennett Field 1930’s airport terminal building, and several smaller rehabilitation projects at Ft. Wadsworth on Staten Island; at Ft. Hancock in Sandy Hook, New Jersey; and at the National Historic Park Morristown Museum in New Jersey.

Tagged with airport, Archdiocese, archdiocese of new york, Auto, blog, condominium conversion, conversion, conversion project, Corner, dollar, DOyle, Draft, experience, floyd bennett field, food service facilities, interior design projects, LEED, liberty island, Miraval, Park, partners architects, Principal, range, rehabilitation renovation, retail pavilion, sandy hook new jersey, terminal, Upper |

The Four Cs of Good Project Management Practice

on July 17, 2010 by admin in Program Management, Project Leadership, Project Management Leave a comment

So many theories on project management, so little time. How do we distill all of the advice, ideas and principles into an elegant summary? In the real world, we know that there are no packaged solutions for complex problems. There are, however, experience-tested frameworks which act as underlying threads to guide good project management practice.

I have wrestled with the question of outlining good project management practice and have reflected on the established doctrines. For the past several weeks, as I introduced principles and best practices to my summer project management class at NYU, I began to see how many of these principles have common references and recurring themes. While there are no magic pills or summary level treatises which capture the full range of project management discourse, there are underlying concepts which clarify project management behavior. Here are a few powerful common denominators to project success that stand out after the background noise is filtered out:

1. Clarity…project managers and project teams that practice clarity are better equipped to succeed. Promoting a culture of clarity requires active direction and support from top of the organization. If senior management is not committed, there can be no clarity; the default scenario in that case is ambiguity and chaos.

2. Communication…this was, in a way, too easy a common denominator to miss. Simple, yet very powerful. Project managers, their stakeholders and their teams must appreciate and embrace the need for proper, timely, concise and relevant communication.

3. Commitment…One of the key roles of a project manager / leader is securing the commitment of the project team. The project leader cannot do this until she has demonstrated the same level of commitment that is demanded and required from the project team.

4. Credibility…This goes hand-in-hand with trust. You cannot convey your arguments if you are not credible. You cannot achieve credibility if your integrity is suspect. There are no short cuts to credibility.

This is not a comprehensive list and is just a very tiny snapshot from one viewpoint. I’d like to get other views and thoughts which could expand on this. Your comments and perspectives are welcome.

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