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Maturity in Project Management Series: Impact of PPPM Maturity on the Success of Construction Industry Projects in Brazil

SERIES ARTICLE

By Russell D. Archibald

San Miguel de Allende, Mexico

Darci Prado

Minas Gerais, Brazil
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The Brazilian Experience with PPPM (Portfolio, Program and Project Management) Maturity is distinguished by longevity of the research (since 2005); by frank acceptance by the PPPM community and the broad range of participants; by the huge amount of results made available on the web site: and by the consistency of those results. In this article we will show the impact of PPPM Maturity on construction industry projects in Brazil.

This PPPM research program was initiated by the authors in 2005 and by 2012 it had involved 434 participating organizations, including companies, governmental agencies (both directly managed and indirectly managed), and non-governmental organizations/NGOs. The total of projects involved was 8,680. Four major reports are available for download free on-line (www.maturityresearch.com):

  • General Report: includes analysis of all types of organizations, all categories of projects and all business areas;
  • I. T. Report: dedicated only to the I.T. category of projects;
  • Construction Industry Report: dedicated only to Engineering & Construction categories of projects;
  • Organizational Change Report: dedicated only to transformational projects that are related with redesign of processes and the business, reduction of expenses, acquisition and integration of competing companies, etc.

In this article we will continue to show some results in the 2012 survey related to the  Construction Industry. This is a very important business sector in Brazil and represents about 5% of Brazil’s GNP. But, despite the good moment in many businesses in Brazil over the last 8 years, the construction sector is not in good shape: expenditures rose higher than incomes. A survey conducted by Ernest & Young and University of São Paulo [1] showed that, for the building construction sector, the EBTIDA (earnings before taxes, interest, depreciation and amortization) indicator dropped from 21% to 16% in the period of 2007-2011. Among the levers to increase productivity, improved project management is highlighted.

In the 2012 PM maturity research there were 60 participating organizations from this area, with 1,020 projects. Final results showed an average maturity of 2.68. In the Table 1 we show how this group (Construction Industry) is deployed in subcategories.

Project Subcategory Participants Maturity
Building Construction 12 2,53
Heavy Construction for private customers 19 2,93
Heavy Construction for government 5 2,61
Engineering(design or engineering projects) 10 2,87
Owner’s Engineer 5 3,28
Other subcategories (Architecture, etc.) 9 1,85
Total 60 2,68

Table 1. Project Sub-Categories within the Major Construction Industry Group [2]

In this article we will show some Construction Industry results in the 2012 PM maturity research related to leading indicators and some of the groups that the database records. The indicators are:

  • Maturity
  • Success
  • Delay
  • Cost Overrun.

Besides these indicators and to better understand this category of projects, we will show two other studies that point in the same direction.

This article is divided into two main parts:

  1. Summary results for  Construction Industry
  2. Analysis of these results in four groups:
  • Organization Types
  • Project Subcategories
  • Businesses Areas
  • Organization Sizes

To fully understand the Prado-PM Maturity Model, it would be better if the reader could read the third article (March 2014) of this series that describes the model in some detail. To facilitate the understanding, we include at the end of this article a summary of the Prado-PMMM and Archibald Project Categorization Model.

More…

To read entire article (click here)

Editor’s note: The Project Management Maturity series of articles by Russell Archibald & Prof Darci Prado is based on their extensive research on this topic in Brazil, the United States and other countries.  Russ is one of the pioneers in the project management field and the originator of the Archibald Project Categorization Model.  Darci is the developer of the Prado Project Management Maturity Model which has been successfully implemented by many organizations in Brazil.  More about this model and related research can be found at http://www.maturityresearch.com/. 

About the Authors

russell d archibaldRussell D. Archibaldflag-usa-mexico

San Miguel de Allende, Mexico

Russell D. Archibald: PhD (Hon) ESC-Lille (Fr), MSc (U of Texas) & BS (U of Missouri) Mechanical Engineering, PMP, Fellow PMI and Honorary Fellow APM/IPMA (member of the Board of IPMA/INTERNET 1974-83), held engineering and executive positions in aerospace, petroleum, telecommunications, and automotive industries in the USA, France, Mexico and Venezuela (1948-1982). Russ also had 9 years of active duty as a pilot officer with the U.S. Army Air Corps (1943-46) and as a Senior Pilot and Project Engineer with the U. S. Air Force (1951-58.) Since 1982 he has consulted to companies, agencies and development banks in 16 countries on 4 continents, and has taught project management principles and practices to thousands of managers and specialists around the world. He is co-author (with Shane Archibald) of Leading and Managing Innovation: What Every Executive Team Must Know About Project, Program, and Portfolio Management (2013); author of Managing High-Technology Programs and Projects (3rd Edition 2003), also published in Russian, Italian, and Chinese; other books (in English, Italian, Japanese, and Hungarian); and many papers on project management. Web-site: http://russarchibald.com  E-mail: [email protected]

To see other works by Russ Archibald, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/russell-d-archibald/

pmwj18-jan2014-archibald-PHOTO PRADODarci Prado, PhD flag-brazil

Minas Gerais, Brazil

Darci Prado is a consultant and partner of INDG in Brazil. He is an engineer, with graduate studies in Economical Engineering at UCMG and PhD in Project Management from UNICAMP, Brazil. He has worked for IBM for 25 years and with UFMG Engineering School for 32 years. He holds the IPMA Level B Certification. He was one of the founders of Minas Gerais State and Parana State PMI chapters, and he was member of Board Directors of Minas Gerais State PMI chapter during 1998-2002 and member of the Consulting Board during 2003-2009. He was also the president of IPMA Minas Gerais State chapter during 2006-2008. He is conducting a Project Management maturity research in Brazil, Italy, Spain and Portugal together with Russell Archibald. He is author of nine books on project management and is also author of a methodology, a software application, and a maturity model for project management.  Darci can be contacted at [email protected].

To see other works by Darcy Prado, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/darci-prado-phd/