17.9 Integrated Master Planning for Destination Development - Part 9 – Operations Management

First before getting into the Operations Management lets remind ourselves what Integrated Master Planning is all about.

Integrated Master Planning - the process of Orchestrating the vast range of technical and professional disciplines in order to execute a development. This includes marketing, environmental analysis, programing, physical planning, economic planning, social planning, execution and operations planning.

In discussing each part of the Integrated Master Planning for Destination Development process, I will use the same methodology which is answering the following questions.

1.   What is the objective of this phase of the process?

To deliver the product conceived to the end users with the established level of quality and consistency conceived within the budgeted means.  This includes the operations financial management, estate property management, marketing, customer service and overall feedback monitoring.  As part of an overall Integrated Master Planning process end user feedback is important to input back into future development planning.     

2.  What expertise is involved in this phase of the process?

Generally the operations team which includes the estate manager, marketing manager, finance manager, customer service manager and to a certain extent anyone in operations that can provide constructive feedback.   

3.  What are some of the common mistakes?

Too often operations is not involved in the initial planning and design phase and hence lots of conflicts occur during operations between the operating and planning / development team. 

The other common mistake is there is a lot of ground knowledge that can be generated from operations and if there is no system to record and pass this feedback to the future planning team, real opportunities are wasted that can directly impact the bottom line.

4.  Any other issues that relate to this phase?

In large Integrated Destination Developments, the initial operations phase is perhaps the most crucial as well as the time with the most “start up problems”.   

Large Master Planned Destinations in the initial stages need to experience 2 initial successes in order to establish themselves for a long term financially sustainable future.  First the concept, planning, management and physical execution has to be convincing so first time operators, tenants, buyers will buy into the development and provide life once opened. 

The selection of the first set of tenants, operators and buyers ultimately need to deliver in operations so the Destination become the vision realized and therefore the future Destination / land value will be established. 

It makes no sense for a huge profit on the initial sales or leases if the mix and products are wrong and the Destination becomes a “White Elephant” and can no longer attract investment into the remaining 80% of the development.  

Go to previous parts of the series and look for future parts.

Part 1 – Need for a Methodology?

Part 2 – Environmental / SiteAnalysis

Part 3 – Market Analysis
Part 4 – Product Development
Part 5 -  Physical Planning / Design
Part 6 -  Cost Plan
Part 7 -  Business Master Plan
Part 8 -  Site Execution
Part 9 – Operations Management
Part 10 - Review and Revise


Jiwa Studio
Singapore, December 2011
http://jiwastudioweb.blogspot.com/