BUSINESS MANAGEMENT AND

APPLICATION FOR ARCHITECTURE 2

This course builds upon the foundational concepts introduced in BMA 1. It focuses on advanced
topics such as project risk management, sustainable practices, international business, and strategic
planning within the context of architecture.
 CONTENT

01 What is Business Management 02 Key Components

03 Business Management in Architecture

WHAT IS BUSINESS MANAGEMENT?
• Business management is the process of
planning, organizing, directing, and controlling
the activities of a business or organization to
achieve its goals and objectives.
• It involves overseeing all aspects of a
business, from finance and operations to
marketing and human resources.
KEY COMPONENTS OF BUSINESS
MANAGEMENT
§ Planning: Setting goals, defining strategies,
and developing action plans to achieve
objectives. This involves anticipating future
challenges and opportunities.

§ Organizing: Structuring the resources and

tasks within the organization. This includes
defining roles and responsibilities, creating
organizational charts, and establishing
communication channels.
KEY COMPONENTS ...
• Leading/Directing: Guiding and motivating
employees to achieve organizational goals.
Leadership involves effective communication,
decision-making, and fostering a positive work
environment.

• Controlling: Monitoring and evaluating

performance to ensure that the organization is
on track to meet its objectives. This involves
measuring results, comparing them to the
planned goals, and making necessary
adjustments.
KEY COMPONENTS ...

• Decision-Making: Making informed choices

based on available information and analysis.
Decision-making is a crucial aspect of
business management, and it often involves
assessing risks and benefits.
• Coordination: Ensuring that different
departments and teams work together
seamlessly to achieve common goals.
Effective coordination helps avoid conflicts
a n d e n h a n c e s o v e r a l l e f f i c i e n c y.
KEY COMPONENTS ...

• Resource Management: Efficiently utilizing

resources such as finances, human capital,
t e c h n o l o g y, a n d t i m e t o m a x i m i z e p r o d u c t i v i t y
and achieve organizational objectives.
While Business Management and Architecture are distinct fields,
there are several ways in which business management principles
can be applied to architecture:
Project Management Resource Allocation
Business management principles, such as Efficient allocation of resources is crucial in
planning, organizing, leading, and controlling, architecture, where resources include not only
can be applied to manage architectural financial capital but also human resources,
projects efficiently. time, and materials.

Client Relations Strategic Planning

Business management emphasizes the Business management principles guide
importance of building and maintaining client architects in developing a clear vision, mission,
relationships, understanding client needs, and and strategy for their architectural practice or
delivering value. projects.
While Business Management and Architecture ...

Risk Management Marketing and Branding

Architects can apply risk management Architects can utilize business management
principles to identify potential challenges, principles in marketing their services and
assess their impact, and develop strategies to building a strong brand.
mitigate or respond to risks.

Leadership and Team

Financial Management Management
Business management principles provide tools Architects often work in teams, and effective
for financial planning, budgeting, accounting, leadership and team management are
and financial analysis, helping architects make essential. Business management principles
informed decisions about their projects and guide architects in fostering a positive work
firms. culture, motivating team members, and
promoting collaboration.
 MODULE 01
Advanced Project Management
 What is RIsk Assessment in Project Management Plan?

Project risk
assessment and
management Advanced project
scheduling
techniques

Quality control and

assurance
 What Is Risk Assessment?
Identifying, assessing, and controlling hazards and risks in the systematic
process.

Determining which safeguards are in place—or ought to be—to eliminate or

manage risk in the workplace in any conceivable circumstance is the
responsibility of a competent person.

These evaluations aid in identifying these innate risks and offer

countermeasures, procedures, and controls to lessen their adverse effects
on business operations.
 Why Do We Need Risk Management?
• The project risk management plan addresses the process behind risk
management and the risk assessment meeting allows the project team to
identify, categorize, prioritize, and mitigate or avoid these risks ahead of
time.
• Risk assessment is a step in a risk management procedure. Risk
assessment is the determination of quantitative or qualitative value of risk
related to a concrete situation and a recognized threat.
• Risk assessment involves measuring the probability that a risk will
become a reality.
But in any project, risk assessment is not a project manager's sole responsibility. A
special meeting has to be conducted to bring in the ideas of the entire team or at a
minimum the following -
• Project Manager: acts as the chairperson and facilitates the risk assessment
meeting
• Project Team: the project manager must assign members of the project team
the roles of recorder and timekeeper
• Key Stakeholders: those identified that may bring value in the identification of
project risks and/or mitigation and avoidance strategies
• Subject Matter Experts: those identified that may specialize in a certain project
activity but are not formally assigned to the project but may add value
• Project Sponsor: may participate depending on the size and scope of the
project
 Risk Identification
• Before plunging into risk assessment, the project manager will have
compiled a list of risks from previous project experiences. These will be
reviewed at the beginning of the project as a way to identify some
common risks. This will also give an insight to the members to predict
possible risks. While there are many methods for identifying risks, the
Crawford Slip method is very common and effective. Each risk identified
and discussed should be stated in a complete sentence which states the
cause of the risk, the risk, and the effect that the risk has on the project.
 How to Manage Risk?
It's critical to start with a specific definition of what your project is expected to
deliver to manage risk:

• create a comprehensive project charter that includes your project's vision, objectives,
scope, and deliverables. In this manner, hazards can be found at every project step.
• conduct a risk identification session with the complete project team, your client's
representatives, and vendors to accurately plot project risk.
• Using a risk tracking template, prioritize the amount of risk for each risk you define.
• develop a risk management strategy that outlines the benefits and drawbacks of the
project as well as the activities you will take to address each.
• schedule periodic meetings to monitor risk As the project advances.
 Risk Assessment Examples
• A sort of risk assessment called a "health and safety risk assessment" is
used by safety managers to identify health and safety concerns related to a
job, the workplace, and present processes. There are various types of
hazards, including biological, chemical, energy, environmental, and others.
• "Workplace risk assessment" is a method used by office managers and
school administrators to ensure there are no workplace health and safety
hazards. Additionally, this evaluation raises productivity and morale among
workers.
• Construction risk assessment is a crucial evaluation performed on
construction sites to assist stakeholders in adhering to safety requirements
and help safety teams undertake remedial measures.
 Example:
1. Risk: Budget Overrun
Description: Unforeseen cost increases during construction.
Impact: Delays in project completion, strained financial resources, potential
need for additional funding.
Mitigation: Regularly update cost estimates, include contingency funds in the
budget, conduct thorough vendor assessments.
2. Risk: Design Changes
Description: Frequent changes in project requirements or design specifications.
Impact: Delays in construction, increased costs, potential conflict with
contractors and architects.
Mitigation: Clearly define project requirements from the start, obtain
stakeholder buy-in, establish a formal change control process.
3. Risk: Talent Shortage
Description: Difficulty in finding skilled labor for construction.
Impact: Delays in project completion, potential increase in labor costs.
Mitigation: Develop a talent acquisition plan, invest in training programs, build
relationships with trade schools and unions.
THANKS