VERBAL ANALYSIS AS AN EFFECTIVE TOOL OF INVESTMENT STRATEGY MANAGEMENT Vladislav Kutut 1 , Leonas Ustinovichius 1 , Dmitry Kochin 2 , Zenonas Turskis 1 1 Vilnius Gediminas Technical University, Civil engineering faculty, Department of Construction Technology and Management, Saulėtekio al. 11, LT-2040 Vilnius, Lithuania, E-mail: zenonas.turskis@st.vtul.lt 2 Institute for System Analysis RAS, The Theory and Methods of Decision Making Department, Prospect 60 let Octiabria 9, Moscow, Russia, E-mail: dco@mail.ru Abstract. In project development it is hardly possible to get exhaustive and accurate information. As a result, the situations occur, the consequences of which can be very damaging to the project. Inaccurate evaluation of the strategy related to capital investment and project implementation is one of the reasons why such estimates are not required in practice. Instead, a classification approach may be used for this purpose. Classification is a very important aspect of decision making. This means the prescription of objects to particular classes. Classified objects are described by various criteria that can be quantitatively or qualitatively evaluated. In multi-attribute environment it is hardly possible to achieve this without resorting to special techniques. A new way to solve the problem – the CLARA method (Classification of Real Alternatives) is offered. The paper presents a feasibility study of using verbal classification for determining a better strategy, depending on the evaluated strategy level. Keywords: strategy, investment, efficiency, assessment, multi-attribute, classification, decision making, CLARA. 1. Introduction Investigation and discussion of problems associated with the old town renovation have intensified since the 1990s. The heated debates on sustainable urban development in the world are going on now, and a compact city appears to be one of the best options for sustainable development [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11]. G. Munda [in 12] states that sustainable development is a multidimensional concept, including various perspectives. He showed that multi-attribute decision analysis is an adequate approach to deal with sustainability conflicts at both micro and macro levels of analysis. The assessment and measurement of economic values provided by Cultural Built Heritage has been increasingly recognised as a fundamental part of cultural policy [13, 14]. Cultural heritage has economic importance because the state of conservation management and access conditions influence human well being [15, 16, 17, 18, 19]. The argument in support of a multi- dimensional framework, is reinforced by Ver Eecke [20, 21]. Economic value does not deny the importance of other value dimensions, but has a specific role to play in cultural policy toward heritage fruition, enhancement and conservation [22]. Old Town is rich in historic resources and is second in the number of historic districts and well designed historic buildings. There is a great number of interested parties involved in the old town conservation, development and renewal. They embrace old town residents, offices, companies, travel agencies as well as historians, architects, urban developers, etc. Old town includes various neighbourhoods, individual houses and their groups. In addition, it has a complicated system of engineering structures and service lines often going through the remaining foundations of old buildings and communication lines. All of them have been formed under various conditions at various periods of time. Despite the intention of many heritage organizations to identify models that can be used for managing decision-making in urban conservation areas, there is as yet no information model that is capable of integrating different levels of analysis of data structures and their relevant characteristics. The lack of such a model has exacerbated the difficulties and conflict in the selection and assessment of alternative intervention strategies in urban conservation areas [23, 24]. Generally, buildings, structures, objects, districts and