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Functional models for project management activities from position of different interested parties

FEATURED PAPER

Vladimir I. Voropayev, Oxana A. Klimenko and Yan Gelrud

Russian Project Management Association “SOVNET”, Moscow

NRU Higher School of Economics, Moscow

South Ural State University, Chelyabinsk

Russia
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Abstract

The article is devoted to the development of functional models for different interested parties that fulfill different functions in project management activity. The article analyzes requirements of the key interested parties of the project to the functional models, including the models for project management team, investor, customer, general contractor, supplier, regulatory and supervisory authorities, and commercial service.

The use of the functional models described in this article raises the efficiency of their activity, provides to fulfill their functions more efficiently. The functional models have to be further developed and realized in the form of the electronic automatic systems, the software.

Key words: interested parties, stakeholder, project management activity, functional models, project management and governance.

Introduction

In modern world project managers carry out various activities for managing the creation of a new project product and apply well-known methods and tools for this purpose. At the same time, the number of unsuccessful projects in percent relation to successful ones reaches from 40% to 60% by different estimates [7]. This might be interpreted like almost half of the projects either do not achieve the planned results or do not meet the requirements that different interested parties want to have. The reasons of such low effectiveness are various, but all of them could be divided into two larger groups. First, the technologies, methods and tools for managing the project activity existing today, need to be reviewed and improved. Second, new methodologies, methods and tools need to be developed.

In modern project management there exist a number of approaches, methods and tools for managing projects, programmes and portfolios. The application of these methodologies helps project management professionals to execute the projects, reaching their goals and objectives within the given limitations and constrains. All tools applied today are good, but insufficient. It is necessary to identify the main possible shortcomings of existing technologies.

1. Inadequacy of existing models for project management activity

First of all, the model has to be correspondent to the object it simulates. All human activities possess such properties as alternativeness, stochasticity, probability of this or that event or/and scenario. First, we consider the project to be the management object from the point of view of project manager. Today the view on the project as an object of management is realized in creating the model convenient for the project manager to fulfill the necessary functions leading to the results. Existing models are developed on the basis of the project management standards which are set at creation and calculation of network diagrams and project schedules. Standards and norms which are available for certain work packages (for example, bricks laying), are outputs from the accumulated statistics. Further a statistical row on which there is an expectation is being developed. Thus, models used in modern project management are determined and do not consider the listed above properties of the management object, such as alternativeness, stochasticity, probability. In other words, applied models for managing the project do not correspond to the object itself while modeling and developing.

All existing methodologies of project management [8-10] to manage projects, programs and portfolios are built under the determined network diagram models which are focused on the operational level, i.e. the lowest level of execution the project management activities. In fact, the methodologies known today in the world as well as the standards – PMBOK, PRINCE2, IPMA ICB, P2M, have been developed  on this basic principle – models are intended to be used by the project manager and project management team. The existing certification systems based on these standards, allow assessing and confirming the level of compliance of the candidate’s competence to the requirements of the standards. It is good, but not enough. Except the project manager and the project management team, there are many other interested parties (stakeholders) taking active part in project management activities. They make decisions at tactical and strategic levels of management, i.e. fulfill governance functions. Whether it be investor, customer, general contractor or other, all of them use the determined models, focused on operational level of management for a decision making process of higher level.

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About the Authors

vladamir-voropajev-bioVladimir Voropajevflag-russia

Author, Professor, International PM Expert

Founder, Former President, Chair – SOVNET

Former Vice President – IPMA

Full Member, Russian Academy of Natural Sciences

Moscow, Russia

Professor Vladimir Voropajev, PhD. is Founder and former President and Chairman of the Board of the Russian Association of Project Management, SOVNET. Dr. Voropajev is professor of Project Management at the State University of Management, Moscow, Russia.  He is also Head of the Program and Project Management Faculty for the Russian State Academy’s Program for Professional Retraining and Professional Skill Development for Executives and Specialists in Investment Fields.

He is a full member of the Russian Academy of Natural Sciences on Information Science and Cybernetics, and of the International Academy of Investments and Economy in Construction. From 1991 to 2001, he was Vice-president and a member of the Executive Board of the International Project Management Association (IPMA), the global federation of national PM associations based in Zurich, Switzerland. He is the First Assessor for several IPMA certification bodies. In 2005 he was awarded IPMA Honorary Fellowship Award. He is also an honorary Fellow of the Indian Project Management Association and a past member of the Global Project Management Forum Steering Committee.

During his 40 years of engineering, scientific, teaching and consulting activities, he has published over 250 scientific research works including 7 monographs and 5 textbooks about the organization and planning of construction, information systems, and project management.  Vladimir serves on the editorial boards of several international project management journals, is a frequent participant in PM conferences worldwide, and provides ongoing counsel and support to PM professional leaders in Azerbaijan, Kazakhstan, Ukraine, Yugoslavia and several other countries.  Professor Voropajev can be reached at [email protected]u

To see more works by Professor Voropayev, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/professor-vladimir-voropajev/

pmwj25-aug2014-Voropajev-AUTHOR2 KLIMENKOOxana Klimenkoflag-VLADIMIR-VOROPAJEV

Moscow, Russia

Oxana Klimenko is a consultant on project management and a certified project management professional, level C – IPMA, certified program and portfolio management consultant , level PPMC – IPMA level,  Regional director of the International Center for Complex Project Management – ICCPM in Russia and CIS countries. She worked as a Director of the certification body of Russian Project Management Association SOVNET (2011 – 2013). At present she is a senior lecturer on project management at the PM chair at National Research University “Higher School of Economics” in Moscow.  Oxana is delivering MBA programs at Real estate Institute of National Research University “Higher School of Economics”.

Ms. Klimenko provides training, consulting sessions, moderations, lectures and seminars in English. She is organizer and Director of the yearly International Youth Scientific and Practical Project Management Conferences “Youth and Management of Projects in Russia”, Moscow (2011- till present).

She is also a project management team member, developing the international standard on management of projects of the International Association of Management of the IPMA projects (2010 – till present). As a team member she took part in developing IPMA Delta organizational – technological competence model in IPMA. As IPMA Delta manager in Russia she led the assessments for four organizations:

  • Sberbank of Russia (2010), class 2
  • Ekaterinburg electric grid company (2012), class 2
  • Nizhny Tagil Plant of metal Designs (2012), class 2
  • TNK-BP (2012), class 1

Here experience of development and delivering trainings, seminars, training programs is more than 18 years.  In consulting  – more than 8 years.  More than 25 consulting projects in various companies (from small enterprises to large corporations) as the leading consultant of projects are realized.  More than 500 trainings and seminars in Moscow and other cities of Russia held.

Among clients: British American Tobacco, EFES, COWI CONSULT, KNIGHT FRANK, KUEHNE+NAGEL, OZON, SHL, SG Group, AZIYa, Garant, Dominanta Energy, INKOM-Nedvizhimost, Inteco, Intrek, Komstrin region, Megafon, Miel, bank “Otkritie”, Peresvet Group, Portal, ROSNO, Rosneft, Rusfinance Bank (Société Générale group), Rusagro, Rufil, Settelekom, bank Sberbank, Grazhdanstroyproyekt, Stroygalerey, TVEL Stroy, Transmashholding, Esset Management, Triumph, Finam, Central Telegraph, Elara, Elkod,  others.

Yakov-GelrudYan D. Gelrudflag-VLADIMIR-VOROPAJEV

Professor, South Ural State University

Chelyabinsk, Russia

Mr. Yan Gelrud was born in 1947 in Birobidjan (Khabarovsk Territory). In 1965 he finished a school of mathematics and physics at Novosibirsk. In 1970 he graduated from the mathematical faculty of university at Novosibirsk on “Mathematics” speciality. From 1970 to 1991 Yakov was working in the Research Institute of automated control systems as a head of mathematical division. He took part in creation and adoption of more than 100 automated control systems in different branches of industry.

From 1991 to 1997 Mr. Gelrud was doing business, being director general of “URAL-ASCО-SERVICE”.  Since the 1st of September 1997 till now he works as a professor of the “Enterprise and management” department in South Ural State University. He teaches a multitude of disciplines, such as “Mathematics”, “Theory of probability and mathematical statistics”, “Econometrics”, “Economic and mathematical methods”, “Mathematical methods of decision-making”, “Bases of decision-making methodology”, “Economical evaluation of investments”, “Mathematical methods and models of project management”, “Studies of managerial systems.”

Yan Gelrud has more than 100 publications and speeches on seminars and conferences of different level. His monograph “Project management in conditions of risk and uncertainty” was published recently.  He can be contacted at [email protected]

To see more works by Professor Gelrud, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/yakov-gelrud/.