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Business Architecture for the Development of Land

Situation

  • The company is a leading building holding in one of the biggest southern regions of Russia, with its core business being the construction of large-scale city housing
  • The shareholders of the company acquired a large area of land not far from the administrative center of the region with good 
  • The owners developed a preliminary development strategy for the land plot, though were not confident in its ability to fulfil their aims, which were: guaranteeing maximum income within a short payback period while maintaining control over the land and focusing on the upper segment of the market
  • Despite the aims, the shareholders were not prepared to invest a large amount of their own funds and management resources into realizing this development project

Goal

  • To develop a business architecture for development of the land taking into account the clients full range of demands, as well as preparing a plan to allow clients to choose the business plan

Our approach

  • On the basis of market research and interviews with experts, a detailed map of the area was produced to allow for all options regarding the development of the land plot to be explored
  • As part of a brainstorm with the client, ideas for the development of the land were identified. Based on these, a portfolio of possible business architecture option plans were developed
  • The business architecture was analyzed from the point of view of costs, risk and ease of implementation via use of financial models and input from sector experts. In accordance with the clients’ demands, proposals were developed to minimize the amount of capital needed. On the basis of analysis provided by Strategy Partners Group, the client chose three business architectural models for development
  • Analysis of the chosen business architecture showed that only one of the three could deliver the highest levels of satisfaction to the most clients, guaranteeing the optimal relationship between attractiveness and implementation against a moderate level of risk
  • In addition to the chosen business architecture, a detailed plan to implement the development project was also formed. This included recommendations on how to close gaps in the missing competencies, sort the high-level management system, and organize scheduled events

Results

  • The company’s shareholders adopted the entire business architecture for the land complex along with the detailed plan to implement it 

 

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