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Welcome to the November 2017 PMWJ

Complexities, Size Matters, the Death of Simple Project Management, and… Welcome to the November edition of the PM World Journal

By David L. Pells

Managing Editor

Addison, Texas, USA

 



Welcome to the November 2017 edition of the PM World Journal (PMWJ), the 64th uninterrupted monthly edition.  This edition contains 26 original articles, papers and other works by 28 different authors in 16 different countries.  News articles about projects and project management around the world are also included. Since the primary mission of this journal is to support the global sharing of knowledge, please share this month’s edition with others in your network, wherever in the world they may be.

For the past year I have used this opportunity to discuss important trends or issues that I see as journal editor.  This month, I want to discuss complexity, not in depth but from my perspective.  Increasing complexity in programs and projects has been a major topic in project management for the last ten years. It has been the subject of many papers and conferences, and is now mentioned by the Project Management Institute (PMI®) in various standards and white papers.  Nevertheless, I think there are still some doubters that complexity is anything new, perhaps especially in the project controls field where estimators, planners, schedulers and earned value management professionals have been working on complex programs and projects in aerospace, defense, energy and other industries for decades.

Complexity itself, however, is not a simple topic.  It has many dimensions, changes and increases with the size and nature of a project, and has led to new perspectives on the nature of project management.  This in turn is leading to some fundamental changes in the project management field.

Complexities – some dimensions and perspectives

Consider complexity related to a few major topics in PMI’s PMBOK Guide and most other standards, guides and books on project management – just for single projects.

Scope management complexities – Project scope management has long been associated with complexity.  Yes, technical complexity is real and has been an important aspect of scope management for decades, in some industries more than others.  But today there are two trends magnifying the complexity: rapid rates of change in most technologies, and the increasing amount of information technology (IT) on nearly every project.  Since IT is one of the most rapidly changing technologies in the world, these two trends alone can multiply complexity on many projects. Longer term planning is more difficult.  And supply chains, contracts and organizational relationships can be affected, all in turn affecting scope. Complexity is also compounded by the digitalization of projects.  Every element of a project, including tasks, materials, components, software, suppliers, resources, designs, responsibilities and everything else has a digital record.  Every project of any size creates massive databases that must be managed; every project now includes IT, database administration and cybersecurity both as additional scope and resource requirements.  And these digital records and databases must be planned, administered and managed, either by specialized experts or by project team members. It can all get complicated in a hurry.

Contracting and procurement complexities – Most projects involve contracts, and procurement of materials, equipment, services or other resources.  Large organizations have procurement departments to deal with contracts, procurement processes and supplier relations.  But every project manager is responsible for identifying and planning the contracts and purchases needed for her or his project.  How many of you prepare your own contract documents, or read every line in those prepared by your contacts department. Now consider the entire supply chain for a project, the contracts and legal issues involved, and the potential impact on your project if issues arise.  And then consider international supply chains, different laws and regulations in different countries or jurisdictions, translation issues, disputes and claims by sub-contractors or suppliers (anywhere in the supply chain).  What could possibly go wrong?

Leadership, human factors complexities – One of the primary topics in the PM field for decades, leadership of teams may be the most important aspect of successful project or programme management.  But combine leadership with  psychology, emotional intelligence, cultural intelligence, virtual teams, multiple generations, multiple primary languages, multiple work schedules and time zones, multiple organizations and organizational relationships, multiple personal and group communication issues, etc.  And how do such complexities need to be addressed in different locations and cultures, on cross-border projects, with truly complex mixtures of teams and human resources. You get the picture.

Stakeholder complexities – It seems difficult enough sometimes dealing with a single stakeholder. Today, projects stakeholders are generally defined as any person or organization that can have a negative or positive impact on the progress or outcome of a project.  Typical project stakeholders include senior management, customers (internal or external), employees, contractors and suppliers, regulators and often the general public or external groups.  Effective stakeholder engagement generally requires a project manager to identify key stakeholders, determine (and understand) both their interests and potential impact on the projects, and plan an appropriate engagement strategy for each.  And engagement means more than one-way communication; it can include meetings, discussions, media relations, legal and political considerations, and often executive actions. For large (or even many small) public projects, and certainly any involving public services, stakeholder engagement can be complicated, time consuming and important. For many project teams, this process is neither easy nor much fun.

Logic, interfaces, schedule complexities – We are all familiar with critical path planning, project logic, activity networks and resultant project schedules. Complexities and unintended consequences can arise from many aspects of planning and scheduling, including the experience, knowledge and capabilities of project planners, capabilities and capacities of software systems and tools, planning assumptions, information available, external factors and other issues.  Perhaps the biggest issue related to schedule complexity (and risk) however is related to coupling in project networks and potential perturbations. Bob Prieto addresses these complexities and risks in detail in his latest paper [1].  He describes nine categories of couplings: control, co-dependent, assumption, constraint, external, stakeholder, message, temporal and uncoupling. According to Prieto, “The greater the coupling between activities, the greater the complexity and the likelihood of propagating disruptions…” [1] These are significant complexity measures (issues) that are almost entirely overlooked in most projects, in my opinion. The underlying complexities and risks associated with second and third order coupling is often completely unknown.

More…

To read entire paper, click here

 



About the Author


David L. Pells

Managing Editor, PMWJ
Managing Director, PMWL

 

 

David L. Pells is Managing Editor of the PM World Journal (www.pmworldjournal.net) and Managing Director of the PM World Library (www.pmworldlibrary.net). David is an internationally recognized leader in the field of professional project management with more than 35 years of experience on a variety of programs and projects, including engineering, construction, energy, defense, transit, technology and nuclear security, and project sizes ranging from thousands to billions of dollars. He occasionally acts as project management advisor for U.S. national laboratories and international programs, and currently serves as an independent advisor for a major U.S. national nuclear security program.

David Pells has been an active professional leader in the United States since the 1980s, serving on the board of directors of the Project Management Institute (PMI®) twice.  He was founder and chair of the Global Project Management Forum (1995-2000), an annual meeting of leaders of PM associations from around the world. David was awarded PMI’s Person of the Year award in 1998 and Fellow Award, PMI’s highest honor, in 1999. He is also an Honorary Fellow of the Association for Project Management (APM) in the UK; Project Management Associates (PMA – India); and Russian Project Management Association.  Since 2010 he is an honorary member of the Project Management Association of Nepal.

Former managing editor of PM World Today, he is the creator, editor and publisher of the PM World Journal (since 2012).  David has a BA in Business Administration from the University of Washington and an MBA from Idaho State University in the USA.  He has published widely and spoken at conferences and events worldwide.  David lives near Dallas, Texas and can be contacted at [email protected]

To see other works by David Pells, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/david-l-pells/

 

 

Evaluation of Nigerian Construction Industry Preparedness to Adopt Supply Chain Management

STUDENT PAPER

By Emmanuel Abah

and

Anita Dzikiwi Adamu, PhD

Federal University of Technology

Minna, Niger State, Nigeria 

 


 
ABSTRACT

Supply chain management has received a lot of attention in the third world countries since the latham and Egans report due to benefits such as streamlining extensive cost and time overruns which have besieged the Nigerian construction industry, in Nigeria however, it is yet to receive such attention. This research through the use of questionnaire administered to professionals in the built environment sought to elicit information on their level of awareness, level of involvement in supply chain management, the benefit so derived from the adoption of supply chain management and limitation to its full adoption as well as the degree of preparedness of the industry as a whole to adopt supply chain management. Of the 385 questionnaires distributed 200 were returned (52%).It indicates that professionals to certain degree are aware of supply chain management practices with the top three being relationship development, management leadership, and information sharing. Professionals are also involved in supply chain management practices with the top three being information sharing, early appointment of partners, and relationship development. Top three benefits of supply chain management according to respondents are better resources utilization, Cost saving and improved productivity while the limitation to adoption of supply chain management has lack of management support, dearth in understanding of supply chain management concept and poor organisation structure as top three. The level of preparedness of the construction industry was determined using VERDICT readiness assessment model and reveals that the industry has achieved process readiness but is yet to achieve management, people and technology readiness.

1.0 INTRODUCTION

The idea of Supply Chain Management (SCM) originated from the manufacturing industry with its first visible signs traced to Toyota Motor Factory which used the concept to regulate supply (Vrijhoef & Koskela, 2000). The construction industry possesses a lot of similarity with manufacturing industry which makes SCM adoptable to the construction industry (Aloini, et al 2012).  Its goal was to greatly decrease inventory, reduce cost and duration of project thus improving project performance, to transfer site activities offsite to a more favourable condition, and to use of integrated management options so as to effectively regulate supplier interaction (Saka &Mudi, 2007). The Nigerian construction industry is however known for high inventory, absence of formal relationship and interaction with supplier (Saka &Mudi 2007), and cost and time overruns (Babalolaet al 2012).

The Nigeria construction industry faces an immense challenge in the managing its supply chain which is critical to a successful project delivery Saka &Mudi (2007). These challenges in the opinion Ajeet al (2015) could have resulted from paucity of awareness or paucity of involvement in supply chain management practices by various professionals.  Ajeet al (2015) surveyed the extent of awareness and involvement of quantity surveyors in supply chain management practices and concluded that though the awareness was high, the level of involvement of quantity surveyors was however low, this is a result of inadequate infrastructure in information Technology. The extent of awareness and extent of involvement of other professionals is the Nigeria construction industry is yet to be determined.

The implementation of supply chain management is limited by paucity of understanding of supply chain management concept, unclear strategic benefits to the organisation; lack of trust among other limitations which has restrains its adoption and application in the Nigeria construction industry (Amadeet al, 2016). Supply Chain management in Nigeria is also restricted by the difficulty of operating in the business environment in Nigeria which is characterized by poor infrastructure such as bad road, the unstable socio-political environment in Nigeria, corruption  pandemic even among security and law enforcement agencies further limits the adoption of supply chain management in Nigeria.

Aje et al (2015) found out that though, there is an average level of awareness of supply chain management practices among quantity surveyors, the level of involvement in supply chain management practices by quantity surveyors is still low. This could be an outcome of the degree of preparedness of organisations in the construction segment to adopt supply chain management practices which Saad, et al (2002) opined that is a fundamental issue that affects the effective adoption of supply chain management.

1.2       PROBLEM STATEMENT

Supply chain management is a network of organizations or entity, that are tied through an upstream and downstream linkages via different processes and activities with a view to producing valuable goods and services to satisfy end users Tiwari et al (2014). Supply chain management is therefore important to satisfying the clients and end-users. This highlights the need for professionals to be aware, and fully involved in supply chain management encouraged by an industry prepared to fully adopt the innovation.

Ajeet al (2015) investigated the level of quantity surveyors awareness of supply chain management praxis; the research similarly examined involvement extent of quantity surveyors and factors constraining their involvement in supply chain management activities. Amade et al (2016) asserts that paucity of understanding of supply chain management concept alongside unclear strategic benefits is the major constraints to the deployment of supply chain management. construction industry’s Supply chain management is however not narrowed to quantity surveyors alone as all parties plays a crucial role it is therefore imperative to investigate the extent of awareness of other professionals in the built environment and construction practices, their level of involvement in supply chain management activities alongside the constraints to successful adoption of supply chain management practices.

Saadet al (2002) identified and raised a fundamental issue related to the effective implementation of supply chain management practices which is the degree of preparedness of the organisation to adopt supply chain management practices. This was confirmed in Ajeet al (2015) where there was an average level of awareness of supply chain management practices among quantity surveyors however; there was low level of participation and involvement of quantity surveyors in supply chain management practices. This could be attributed to the degree of preparedness of the organisation towards adopting supply chain management practices.

It is consequently imperative to ascertain the degree of preparedness of organization towards adopting supply chain management practices alongside barriers that restrain the effective implementation of supply chain management despite the benefits of this innovation

More…

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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs. This paper was prepared in 2017 as a deliverable in the Master of Technology Degree (M.Tech) in Quantity Surveying program at the Federal University of Technology, Minna, Nigeria. The supervisor is Dr. A. D. Adamu.



About the Authors


Emmanuel Abah

Federal University of Technology
Minna, Niger State, Nigeria

 


Emmanuel ABAH
is a Quantity Surveyor by training, and is studying for a Master of Technology Degree (M.Tech) in Quantity Surveying at the Federal University of Technology, Minna. He holds a National Diploma (ND) in Quantity Surveying from the Federal Polytechnic, Idah- Kogi State, and a Bachelor of Technology (B.Tech) in Quantity Surveying from the Federal University of Technology, Akure-Ondo State. You can reach him on [email protected].

 


Anita Dzikiwi Adamu, PhD
     

Federal University of Technology
Minna, Niger State, Nigeria

 

 

Anita Dzikiwi ADAMU is a lecturer in the department of Quantity Surveying, Federal University of Technology, Minna. She holds a Bachelor of Technology Degree (B.Tech) in Quantity Surveying from the Federal University of Technology, Minna, a Master of Science Degree (M.Sc) from Ahmadu Bello University Zaria-Nigeria, and a Ph.D. from Nelson Mandela University, Port Elizabeth, South Africa. Her research areas include Construction Management, Facility Management and Maintenance Management. You can reach her on [email protected]

 

 

Why Business Schools keep neglecting Project Management competencies

FEATURED PAPER

By Prof Antonio Neito-Rodriguez
Belgium

And

Prof Marco Sampietro, PhD
SDA Bocconi School of Management
Milan, Italy

 



Digitalization, mergers & acquisitions, international expansion, business model redesign, new product launch, cultural transformation.

All these strategic initiatives are common projects undertaken to stay alive in the current unpredictable markets. Today, to be successful, organizations require leaders with strong project management competencies.

Yet, according to our research, only 4% of the Top 200 Business Schools in the world offer project management as part of their MBA core curriculums.

If you are looking for an MBA that will teach you one of the most relevant competencies in the next twenty years, forget about Harvard Business School, Insead, MIT, Columbia, Wharton, IMD, Instituto de Empresa or London Business School.

Look for the following leading edge business schools: Alliance Manchester Business School, BI Norwegian Business School, Cranfield School of Management, SDA Bocconi – School of Management, Shanghai Jiao Tong University, Singapore Management University, Lee Kong Chian, St. Gallen, Temple University – Fox School of Business

The 2020 Business Model – From Process driven to Project driven Organizations

If we summarize what all companies and organizations around the world do, we can state that they perform two types of activities: they execute processes to produce, sell, and distribute products and services, and they implement projects to ensure that the organization survives and keeps growing in the mid and long term.

While most traditional organizations are process-based, it is hard to find an organization that does not perform projects as well.

Yet, over the past decade, organizations have been relying more and more on projects. The reason is quite simple: fierce competition and customer preferences have shortened product life-cycles thus new products become commodities much faster and new or enhanced products or services are required more frequently, and processes have to be improved and updated (significant process improvements, such as digitalization, or business model transformation, represent huge transformation projects).

In theory, in order to perform these two types of activities successfully, organizations would need to split into two separate entities as the respective business models are quite different, often conflicting. Yet, this does not often happen. According to some thought leaders, such as Costas Markidis or Julian Birkinshaw, this is one of the main reasons why organizations fail in implementing their strategies.

It is worth mentioning that managing projects does not only refer to planning, executing, monitoring and controlling one single initiative. In fact, organizations:

  • Run hundreds of projects in parallel, often sharing resources. If resources are not properly allocated among projects, conflicts and performance issues will most likely arise.
  • Run projects that alone might have limited value, while when grouped with other projects they are able to deliver much greater impact and benefits to the organization. This means shifting from projects to programs.
  • Run projects that are synergic at times and at other times conflicting. In this case having an overall view of the project portfolio is beneficial.
  • Have to select which projects must be carried out. In most cases, the number of ideas outweighs the organization’s capacity to implement them. As we have seen with companies that failed in the past (Kodak, Nokia…) selecting the most valuable projects can represent the difference between keeping the company alive or not.
  • Run projects and processes in parallel: the issues on one side are reflected on the other side. Again, having a broad view of the portfolio of initiatives (projects and processes) may help in correctly allocating the resources and managing the different relations between projects and processes.

For the above-mentioned reasons, project management should be a core skill for many employees, managers and executives. However, while for the former the need for project management training is well understood, for the latter we have enough evidence and extensive experience in executive education to know that the development needs are not well understood. There is general misconception about the role that managers and executives play in project management. Normally, the perspective is that project management can be fully delegated to good employees while managers, executives and board directors play a limited role.

More…

To read entire paper, click here

 



About the Authors


Antonio Nieto-Rodriguez

Belgium

 



Antonio Nieto-Rodriguez
(antonionietorodriguez.com) is the world’s leading champion of Project Management and Strategy Implementation. He is the creator of concepts such as the Hierarchy of Purpose featured by Harvard Business Review, or the Project Manifesto; which argues that Projects are the lingua franca of the business and personal worlds from the C-suite to managing your career or relationships. Antonio was nominated Thinker of the Month by the prestigious Thinkers50.com, who identifies the most influential management thinkers in the world, inc. Michael Porter, Clayton Christensen, Rita McGrath.

Author of the best-selling book “The Focused Organization” and a much in-demand speaker at events worldwide, Antonio has presented at more than 160 conferences over the past 15 years, regularly evaluated as the best speaker. European Business Summit, Gartner Summit, TEDx, and EU Cohesion Policy Conference with EU President Donald Tusk; are some of the events he has delivered inspirational speeches. A pioneer and leading authority in teaching strategy execution and project management to senior executives at top Business Schools; currently visiting professor at Duke CE, Instituto de Empresa, Solvay, Vlerick, Ecole des Ponts and Skolkovo. Email: [email protected]



Marco Sampietro

Milan, Italy




Marco Sampietro obtained a Ph.D. at the University of Bremen, Germany. Since 2000 he has been a professor at SDA Bocconi School of Management, Milan, Italy. SDA Bocconi School of Management is ranked among the top Business Schools in the world (Financial Times, Forbes, Bloomberg, and The Economist rankings). He is a Core Faculty Member at SDA Bocconi School of Management and teaches Project Management in the MBA – Master of Business Administration, and GEMBA – Global Executive Master of Business Administration programs. He is Faculty Member at MISB – Mumbai International School of Business, the Indian subsidiary of Bocconi University, and Visiting Professor at IHU – International Hellenic University, Greece. He is also a Contract Professor at Bocconi University and Milano Fashion Institute for the Project Management courses.

He was a speaker at the NASA Project Management Challenge 2007, 2008, and 2011, in the USA, and a speaker at the PMI Global European Congress, Italy, 2010.

He is Member of the Steering Committee of IPMA-Italy. He is co-author and/or editor of 10 books on project management and 7 books on IT management. Among them: Empowering Project Teams. Using Project Followership to Improve Performance. CRC Press, 2014. He is the author of award-winning case studies and papers. Dr. Sampietro can be contacted at: [email protected]

To see other works by Marco Sampietro, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/marco-sampietro/

 

 

Leading Project Teams Across Corporate Borders

Project Business Management

SERIES ARTICLE

By Oliver F. Lehmann

Munich, Germany

 


 

“Confusion is the charlatan’s friend, noise its accessory”            
– Carole Cadwalladr



Summary

The majority of projects today are not performed solely by internal teams. Project work is handed over partially or in full to external vendors who can build complex Project supply networks (PSNs), and project managers need to massively improve their skills to manage such PSNs professionally. Creating a “Mission Success Culture” based on a “Completing over competing” approach is an essential element of these skills.

 

From “Simple” Procurement Management to Complex Project Supply Networks (PSNs)

Case Story: An Uncomfortable Surprise in a Project Supply Network

Tarantula SE. (1) is a European manufacturer of machines for logistics and transportation purposes that are cutting edge technology and convince with low Total cost of ownership (TCO) in combination with high productivity. Located in Netherlands, they share the marketplace with a direct US-American competitor, Scorpio Corp., which has similar products, and like Tarantula invests heavily in new technologies, new applications for already existing advanced technologies and also tries to expand into future markets. For the development of a new machine type, a strategic decision was made to outsource more than the traditional 15% to 20%, in order to speed up the implementation time for innovations, tap external resources and reduce the need for management attention. The percentage of outsourced development rose during the project to about 60%, and the expectation was that this approach would shorten the product’s Time to market by 25% to 40%.

One of the contractors hired was a Canadian company Lobster Ltd. that was awarded a contract to develop and later produce an intricate component made from carbon fiber reinforced polymer (CFRP). Lobster soon noticed that it would not be able to do the project, given the challenging specifications agreed with Tarantula, the customer, on the product. The number of companies that can make such products is small, and in the market, most companies know each other, so they talked with a third company, Bee Queen S.A. from France, who soon became the subcontractor for the business. Figure 1 depicts the relationships of the companies mentioned above.

Figure 1: The layout of the small Project supply network in the case story.

The tight deadline for the component development forced Lobster’s project manager to ask Bee Queen to start development work, while the two companies were still in negotiations particularly on the price for the product development and for successive manufacturing. The two companies had a year-long business relation, and trust into Lobster and the desire to win the long-term business on Bee Queen’s side were strong incentives for the subcontractor to accept the business risk.

During these negotiations, it became clear for Lobster that the business would not be attractive for them at all. Between the price they would get paid by Tarantula and the costs of outsourcing to Bee Queen, the achieved margin became very thin. To make things worse: While the development project at Bee Queen was progressing fast and the deadline set by Tarantula was coming nearer and nearer, Lobster’s negotiation position deteriorated further. At a given time, the company was no more be able to switch to another supplier, but the price with the subcontractor was still not fixed. The thin margin would not only have to cover Lobster’s costs of managing the relation between the customer and the subcontractor, Lobster was also bearing the risk of missing the Start of production (SOP) deadline or of non-compliance with the specifications on the product, which would lead to contractual penalty payments that they would not be able to pass on to the subcontractor. To make things worse, the project blocked management resources at Lobster Ltd. that would be spent more wisely in winning and performing new business that would provide better margins. Lobster therefore made a decision to get out of the business and let Tarantula work directly with Bee Queen S.A.

A meeting was set up with the project managers and other representatives of the three companies. Tarantula had already some knowledge that Lobster Ltd. had subcontracted parts of the development work, but has so far not been interested in more details of this business. They considered the development project in good hands and gave Lobster the freedom to perform the project in a way that would ensure meeting the deadline and the technical requirements. Tarantula assumed that the outsourcing to a trusted contractor allowed them to focus their management attention on other parts of the new machine. To ensure that progress was rely on a number of maturity reviews called “Quality gates” (2), to give assurance that the development is on schedule, which it was. The development approach is sometimes referred to as “Rainbow model”, because as depicted in colors as shown (see Figure 2), there is some faint resemblance to a rainbow. The rainbow model can replace classical phase-gate models, allowing for asynchronous development at high speed, but poses a major challenge on project management.

More….

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Author’s note 1: All names changed in this article.
Author’s note 2: The term “Quality gate” or “Q-gate” is a misnomer but is quite common in in Europe.

Editor’s note: This is the 4th in a series of articles by Oliver Lehmann, author of the book “Situational Project Management: The Dynamics of Success and Failure” (ISBN 9781498722612), published by Auerbach / Taylor & Francis in 2016. See author profile below.



About the Author


Oliver F. Lehmann

Munich, Germany

 



Oliver F. Lehmann
, MSc., PMP, is a project management author, consultant, speaker and teacher. He studied Linguistics, Literature and History at the University of Stuttgart and Project Management at the University of Liverpool, UK, where he holds a Master of Science Degree. Oliver has trained thousands of project managers in Europe, USA and Asia in methodological project management with a focus on certification preparation. In addition, he is a visiting lecturer at the Technical University of Munich.

He has been a member and volunteer at PMI, the Project Management Institute, since 1998, and serves currently as the President of the PMI Southern Germany Chapter. Between 2004 and 2006, he contributed to PMI’s PM Network magazine, for which he provided a monthly editorial on page 1 called “Launch”, analyzing troubled projects around the world.

Oliver believes in three driving forces for personal improvement in project management: formal learning, experience and observations. He resides in Munich, Bavaria, Germany and can be contacted at [email protected].

Oliver Lehmann is the author of the book “Situational Project Management: The Dynamics of Success and Failure” (ISBN 9781498722612), published by Auerbach / Taylor & Francis in 2016.

To view other works by Oliver Lehmann, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/oliver-f-lehmann/

 

 

Developing Leadership Agility

Different Projects, Different Approaches

Advances in Project Management Series

SERIES ARTICLE

By Ron Meyer
Professor of Strategic Leadership, Tilburg University
Tilburg, The Netherlands

and

Ronald Meijers
Senior Partner Leadership, Transformation & Governance, Deloitte
Amsterdam, The Netherlands

 



Every project manager knows that each project is essentially unique. The mix of different people, different objectives, different agendas, different circumstances and different unfolding events leads to a different dynamic that project managers ignore at their peril. One trick ponies never do well – only the agile flourish. To be successful, project managers need to be flexible, that is, they need to have a broad repertoire of potential behaviors and problem-solving approaches that they can tap into. But preferably they should also be adaptive, in other words, have the ability to learn new behaviors and problem-solving approaches if the current set is not sufficient. At the same time, this flexibility and adaptability should be coupled with responsiveness to the situational demands, meaning that they should quickly and accurately sense what the circumstances require and adjust their behavior accordingly. Only where project managers master flexibility, adaptability and responsiveness will they be truly agile and ready to deal with the unpredictable nature of project work.

For leaders in a project setting the need for agility is even higher. Not only is each project unique and shifting over time, but the people involved in projects have become increasingly more diverse. Not only does the workforce come from a wider variety of cultural backgrounds, but there is also a richer mix of genders, affiliations, lifestyles and career paths, each requiring leaders to adjust their behavior to be able to strike the right chord and win hearts and minds in the most effective way. With so many different situations and different people, all demanding a different approach, to be successful leaders must exhibit leadership agility – have the capacity to flexibly switch between leadership styles, and adaptively master new ones, in rapid response to the specific needs of the people and the situation they want to influence.

Yet, the fundamental question is which leadership styles exist that leaders could potentially make use of, what the advantages and disadvantages are of each, and under which conditions one would be preferable over the others. As this is a huge question, this article will limit itself to mapping twenty important leadership styles, grouped into ten pairs of opposite styles (see figure 1 for an overview). For the reader the question is whether you master all twenty and can easily switch between them depending on the needs of the circumstances. That would make you highly agile. The more likely reality is that you will be better at some than at others, leading to the question of whether there are some leadership styles that you need to improve to become more agile. Generally, people tend to exhibit a preference for one side of a pair (we call this their ‘default style’), making the other side of the pair the style requiring further development. If you would like to determine your own default styles, table 1 provides a ‘quick and dirty’ assessment tool.

These ten dimensions are not the only ways in which leadership styles can differ, but they do represent the most important balancing acts faced by leaders in their drive to effectively influence people around them. The ten can be divided into five clusters, depending on the leadership domain involved. The first two dimensions fall into the domain of interpersonal leadership, which deals with how leaders interact with other individuals to achieve certain results. The second pair is concerned with organizational leadership, focusing on the ways in which leaders can get individuals to work together as a strong team. The third set of dimensions is concerned with strategic leadership, dealing with the question of which role a leader plays in the formulation and implementation of strategy. The fourth pair falls into the category of leadership & mission, which deals with the type of purpose that leaders emphasize to mobilize people to follow. And finally the fifth pair of dimensions revolves around the way in which a person deals with being a leader and behaves towards leadership challenges  – leadership and self.

More…

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Editor’s note: The Advances in Project Management series includes articles by authors of program and project management books previously published by Gower in UK and now by Routledge worldwide. Information about Routledge project management books can be found here. 



About the Authors


Ron Meyer, PhD

Canada and The Netherlands

 




Ron Meyer
is managing director of the Center for Strategy & Leadership, an international consulting and management development organization, dedicated to improving companies’ competences in the areas of strategic thinking, leadership, organizational development, business innovation and change management. Ron is also Professor of Strategic Leadership at Tias School for Business & Society, Tilburg University, where he conducts research in the areas of strategy, innovation and leadership, and teaches in a variety of post-experience educational programs.

Ron studied Political Science at the University of Alberta in his native Canada and got his MBA and PhD at the Erasmus University in Rotterdam. From 1987 to 1998 he was assistant professor of strategic management at the Rotterdam School of Management. During this period he taught strategy in 15 countries, at universities and in companies, and acted as consultant to a wide variety of firms. For two years he was also Associate Director of RSM, in charge of managing the MBA Program.

Since 1998, at the Center for Strategy & Leadership and its predecessors, Ron has combined boardroom consultancy work with in-company trainings and applied management research. As consultant he works with many top international companies on such topics as corporate strategy, business innovation, strategic alliances and strategies for growth. As trainer he has given seminars and training courses to hundreds of companies around the world and lectured at more than 30 universities.

He has (co-)authored numerous articles and books, among which the internationally leading textbook on strategic management, Strategy – Process, Content, Context: An International Perspective. Over 250.000 copies have been sold so far and the book is used at more than 200 business schools around the world. The 5th edition was recently published, together with the 4th edition of his textbook Strategy Synthesis: Resolving Strategy Paradoxes to Create Competitive Advantage.

 


Ronald Meijers

The Netherlands

 

 

 Ronald Meijers is senior partner Leadership, Transformation and Governance at Deloitte. For years, Ronald has been engaged in boardroom coaching and consulting, while fulfilling various management roles in professional services firms, such as co-chairman of the executive board of Krauthammer. He sits on various supervisory and advisory boards, e.g. at Dunamare, an education group. He gives key-notes on topics such as corporate culture, organizational collaboration, change management, creative thinking, leadership and governance. He has (co-) authored numerous articles, books and columns, among others in Management Team and Management Scope.

Ron Meyer and Ronald Meijers are the authors of the book Leadership Agility: Developing Your Repertoire of Leadership Styles, recently published by Routledge.

 

Cost Esimating against GAO and NPS

Indonesian State Owned Oil and Gas Company Cost Estimating against GAO and NPS Best Practice: A benchmarking study

FEATURED PAPER

By Ardiansyah

Medan, Indonesia

 



ABSTRACT

The estimation is an important part of the process of a project stage, where this process contributes to the success of a project. The company is always faced with the problem of a low estimated value of the value offered by the contractor, consequently is the objective of the project to be completed on time to be hampered. In this paper, a comparative study has been conducted using the approach of both the US Government Accountability Office (GAO) and the US National Park Services (US-NPS). Based on benchmarking study company estimation process must be improved by considering GAO best practice (1) conduct risk and uncertainty analysis, (2) conduct sensitivity analysis and (3) Identify ground rules and assumptions, and based on US-NPS Estimation Template company suggest to considering (1) Design Contingencies, (2) General Conditions and (3) Bonds & Permits for reliable estimate.

Keywords : cost estimate, benchmarking, oil and gas construction project, national park services (NPS), government accountability office (GAO), estimation process, estimation template

  1. Introduction

1.1 Indonesia Oil and Gas Project Downstream Sector

Indonesian state oil and gas company is obliged to fulfill fossil energy needs in all regions of Indonesia. In order to maintain the continuity of supply of fuel, one effort that can be done is by improving the infrastructure and addition of new facilities. The decline in world oil prices to below US$40/bl requires companies to innovate by making variants of products that the market needs in the downstream oil industry. The downstream oil industry in Indonesia has an important role in providing energy sustainability throughout Indonesia. The characteristics of Indonesia which is a country with thousands of islands make the distribution of oil to every tip of Indonesia becomes a challenge and complicated. Development projects in the form of upgrading facilities at the downstream oil industry are routinely conducted to support the increase and reliability of oil distribution. The dynamics of changes in the market in Indonesia’s downstream oil industry led to an increase in the number of projects.

1.2    Project Cost Estimation

Each project will pass through the estimation phase, a process that has an important role in producing a successful project. Each project has purpose and methodology and how far the project defines. The Project Estimating process is not a stand-alone process, it depends on results of execution of other processes and in many cases it runs simultaneously. On Figure-1 and Figure-2 adopted from GPACar it explains each level of estimate class, how far the project scope definition classifies and estimating tools/technique to used.

Figure-1 Level of Cost Estimation from Various Guidelines

There are two approaches in the estimation process, namely top-down approaches and bottom-up approach. The top-down approach puts forward the whole process in one project which is then estimated. However, in the bottom-up approach, the estimator prepares the job breakdown from the bottom or in other words a Work Breakdown Structure / WBS.

More…

To read entire paper, click here

 



About the Author


Ardiansyah

Medan, Indonesia

 

 

Ardiansyah is a senior project engineer, working in state owned oil and gas company in Indonesia, has experience in oil and gas project for 9 years. He holds a bachelor degree in Gas and Petrohemical Engineering from University of Indonesia (UI) and a master degree with honour in Project Management from Institut Teknologi Sepuluh Nopember (ITS). He lives in Medan, Indonesia and can be contacted at [email protected]

 

 

Incentivizing Early Completion of Major Oil and Gas Projects

FEATURED PAPER

By Stephen J.C. Paterson

HuaHin, Thailand

 



Abstract

Incentives, the carrot that an Owner dangles in front of a Contractor when the project starts to drift off track in an attempt to bring things back in line. More often than not a system is quickly cobbled together as a quick fix, usually leaving both sets of management teams who are administering it with differing views with regards achievement of the financial recompense.  The US Department of Transportation’s document “Work Zone Road User Costs Concepts and Applications” addresses the concepts of incentives and disincentives for their traffic projects. It is this concept that this paper addresses by substituting “Lost Opportunity costs” in place of the “Road User Costs Concept” and testing against a simplistic conceptual Oil and Gas project. It explores the initial concept, applies this to a similar model developed specifically for project and arrives at an incentive/disincentive scheme for acceleration or lost opportunities which can be implemented during the contract development stage outlining the “daily bonuses or penalties” to be applied.

Keywords: Accuracy, Budgets, Cost Estimates, Duration, Guild of Project Controls, Lost Opportunities, Opportunities, Precision, Reliability

Introduction

Lost Opportunities and their associated costs, what are they? In all forms of business there are opportunities and most are overlooked when the decision-making process kicks in. Be it a small home project or a multi-billion-dollar industrial project one of the items that rarely draws attention is the cost of opportunities as the focus is on the main issue, how to fund the project.

Setting aside the project for a moment, the topic of ‘Opportunity Cost’ and what is the formula to calculate it? Before discussing in detail, the formula in business investment is; [Equation 1] Return of the most lucrative option minus the Return of the chosen option. That is in a business environment but does opportunity cost appear in our daily routines? The direct answer is “Yes”, almost everything we do be it, a house purchase, car purchase, decision to going to university, buying clothes, buying a takeaway meal, all encompass some form of opportunity, although we might not recognize it does.

For example; purchasing a home, most people will research the pros and cons before making the final decision, but not all the potential opportunities will be explored. Another example: many people purchase a fast food meal occasionally, however if they purchased a meal every day for the rest of their working life (30 years), they would miss several cost opportunities. Aside for the weight gain and the unhealthy side effects of fast food meals, had the money spent each day $72,000 (assuming $10/day) been invested it would have made a decent return. This is just two of many examples in our daily routine.

This subject raised itself during review of the GPCCAR’s “Module 08-7 Validate the Time and Cost Trade-offs” and was immediately drawn to the interesting illustration (figure 6) which depicted the schedule vs time optimization, the source of which came from the US Department of Transportation (DoT), Federal Highway Agency’s document “Work Zone Road User Costs Concepts and Applications”.  Refer to figure 1.

Figure 1 – Relationship between project cost and duration

Figure 1 depicts how the contractor’s cost to complete the project, which is represented by the cost curve for construction is at its lowest at the baseline duration (point CL), and any deviation to the baseline schedule results in increased costs. Be it incentives to advance the schedule or penalties due to a delayed schedule the costs of construction increase if the schedule deviates from the baseline schedule. The document, “Work Zone Road User Costs Concepts and Applications” was produced by two consultants under sponsorship of the government agency which in turn, disseminated the document for information exchange.

More…

To read entire paper (with footnotes and references), click here

 



About the Author


Stephen J.C. Paterson

HuaHin, Thailand





Stephen Paterson
is an Oil and Gas professional with 35+ years of experience in project controls and construction management. Born in the Highlands of Scotland, he served an apprenticeship and gained a Higher National Certificate in Civil Engineering in the UK, before embarking on the adventure of expat living, working worldwide; Middle East, North & South America, Russia, Middle East, Far East, South East Asia, China and Australia. He just completed his last assignment in February of 2017, and currently, furthering his education by way of a distance learning mentoring course, under the tutorage of Dr Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Guild of Project Controls certification.

Stephen lives in HuaHin, Thailand and can be contacted at [email protected]

To view other works by Stephen Paterson, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/stephen-j-c-paterson/

 

 

Essentials of Managing Risk

BOOK REVIEW

Book Title: The Essentials of Managing Risk for Projects and Programmes
Author:  John Bartlett
Publisher:  Routledge
List Price:   $50.95
Format:  Paperback, 120 pages
Publication Date:   2017    
ISBN: 978-1-138-28831-7
Reviewer:     Jen Duenhoelter
Review Date:   October 2017

 

 



Introduction

Risk is obvious to everyone.  Politicians, businessmen, educators, media, and health professionals highlight risk every day.  It inundates our life.  Much less is said about the process we use to understand and respond to risk.

Overview of Book’s Structure

The book flows in a logical order of chapters covering identification of risk, logging it fully, the appropriate response once risk is known, and tools for analysis so that risk can be managed before it becomes an issue.  Those tools help provide project and program managers risk avoidance strategies that help them deal with uncertainty.

Highlights

Bartlett highlights the path between risks, issues and necessary change and emphasizes the cost impact when we do not effectively deal with risk when it is first identified.  This increased cost is a key motivation to deploy appropriate tools and techniques necessary to effectively manage risk so that we can avoid the later expense of remediation.

The leading chapters describe the initial mechanism for identifying and reporting new risks and the corresponding identification of cause.  Project teams, including my own, sometimes have difficulty in expressing risk so that others can fully comprehend what is at stake.  The goal is to have Risk Registers that fully outline cause, the event (i.e. the risk), and the impact.  For it to have any value, they should have more than just the statement of the event.  Expressing risk is fundamental to identifying it.  Bartlett directs the reader to focus areas and on drivers of risk also known as potential trigger points for risk.  One technique fully outlined in the chapter was how to execute risk identification workshops.

Responding to risk with an appropriate action plan and strategy was highlighted as one of the most important aspects of Risk Management.   The risk assessment layer deals with the likelihood of occurrence, its impact to the project and the cost of its impact.   Adding these details to the risk register allows for reporting that enable appropriate control of the actions to deal with the risk.

Once you have the right data, analysis and reporting of that data enable views that drive decision making.  Bartlett provides great examples on how to use Risk Concept Mapping, Cause and Effect Diagramming, Influence Diagrams / Decision Trees, Risk Radar Charts, and a number of charts that show data easily so that the team can clarify where patterns emerge.

More…

To read entire Book Review, click here

 



About the Reviewer


Jen Duenhoelter, PMP, SSGB

Texas, USA

 


Jen Duenhoelter
, PMP, SGB is a Vice President Account Executive and National Program Management Executive at SWBC in Texas.  Ms. Duenhoelter currently lives in north Texas and can be contacted at [email protected] or www.linkedin.com/in/jen-duenhoelter-pmp-ssgb-378a527

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Dallas Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.  Chapter members are generally mid-career professionals, the audience for most project management books. 

 If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected]

 

 

Adapting to Change

BOOK REVIEW

Book Title: Adapting to Change: The Business of Climate Resilience
Author:  Ann Goodman
Publisher:  Business Expert Express
List Price: $34.95/$19.95
Format:  paperback, e-book
Publication Date:   2016    
ISBN: 978-1-63157-144-2
Reviewer: Heather Creer-Rygalski, PMP        
Review Date:   October 2017

 



Introduction

Floods, fires, earthquakes, tornadoes and hurricanes. What do these catastrophic events all have in common? They are all obviously natural disasters but did you know companies such as Citi, Sprint, ConAgra, Stoneybrook Farms, Sprint and IBM have all established company programs to not only mitigate the effects of the catastrophic events but also save the company money as well as cut down on greenhouse gases?

Overview of Book’s Structure

From the preface to the conclusion, Ann Goodman shares examples of big name companies who today are positively impacting the environment. These are companies are cutting out waste, planning for catastrophic events, cutting down greenhouse gases, and finding ways to save the company money while still maintaining high standards of customer service. From banks to telecommunications to the food industry, companies are making sound changes to their current processes.

One of these companies is Citi bank. Citi is “targeting reductions of up to 35 percent in greenhouse gas emissions, 30 percent in water and energy use and 60 percent in waste. Their long term goal is to reduce greenhouse gases by 80 percent by 2050” (pg. 5). How will they accomplish some of these lofty goals? Through the focused areas for supplier engagement and supply chain policy; paper, IT, hardware as well as evaluate the disposal and most closely related to greenhouse gases, travel and logistics (pg. 16).

In the telecommunications area, Sprint’s sustainability and related climate resilience measures have earned the organization numerous awards including it is the only telecommunications company as of the time of publication, that belongs to WWF Climate Savers Program and Coalition for Environmentally Responsible Economies.

In the food industry, ConAgra created initiatives to “improve sustainability in all aspects of the business, from limiting water usage by the suppliers (farmers) at the source to limiting waste throughout the processing and transport of the products such as diverting waste from landfill, often to productive processes” (pg. 45).

These are just a few examples of the many companies described who have made positive impacts within their organizations.

Highlights

2017 was wrought with natural disasters and in some cases, events that were mere days between one another. But what can companies really do about it?  “A lot of climate resilience is about creativity about hope and life and the future” (Preface xiv).

Companies are recognizing the need to deal with a “likely increase and intensity of climate related events worldwide” (pg. 3). With new employee programs as well as through the use of consultants, the companies described throughout this book have set the standard for others who are lagging in the area of preparedness and environmental responsibility.

More…

To read entire Book Review, click here

 



About the Reviewer


Heather Creer-Rygalski, PMP

North Texas, USA

 


Heather Creer-Rygalski
, PMP has more than 20 years of experience working in training and development departments both in the corporate arena and within the public school system using her project management training for all of her projects. She has a BA in Psychology and a M.Ed., both from Texas State University.

Heather can be contacted at [email protected]

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Dallas Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.  Chapter members are generally mid-career professionals, the audience for most project management books. 

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected]

 

 

Succeeding with Senior Management

BOOK REVIEW

Book Title: Succeeding with Senior Management: Getting the right support at the right time for your project  
Author:  G. Michael Campbell, PMP
Publisher:  American Management Association
List Price:   $24.95
Format:  Softcover, 224 pages
Publication Date:   2017    
ISBN: 978-0-8144-3850-3
Reviewer:     Maryanne Coelln, PMP
Review Date:   October/2017

 



Introduction

This book lived up to its title in providing tips on how to best communicate with senior leadership in any company. The author highlighted the perspective in which projects were evaluated at the top levels of a company, the politics involved, and real life experiences to help illustrate his points.

Overview of Book’s Structure

The book is broken into 22 chapters with specific areas of focus. Starting with Understanding the Facts of Life for Executives, Mr. Campbell introduces the reader to what matters most to executives and how projects fit in with running the business. This sets the tone for the rest of the book. Examples abound in each chapter from his own experiences, taking the reader from concepts such as “managing up”, communicating with Stakeholders on a variety of perspectives and gaining Sponsor support.

The chapters have relative illustrations for the visual reader to help describe the points he is making. Each chapter has a “Points to Remember” section with key bulleted items to help reinforce the key points covered in each chapter. After reading the book, these would be helpful to flip to when looking for a refresh of key ideas in your own work environment.

Highlights

Mr. Campbell concisely describes business principles for those of us who didn’t learn them in school or on the job. What could take a lifetime of misunderstandings to learn about stakeholder management he has captured and shared openly from his personal experiences in an easy-to-read format.

In the chapter “Understanding the Facts of Life for Executives” Mr. Campbell lists four key questions that management must have the answers to, such as “Do we have the confidence that we can get the right return on investment once we turn over this new product or service to operations.” Project managers may focus too much on the success of the project delivering the scope on time and within budget. To an executive, unless the business itself is improved by the delivery of the project it may not be a successful project. Or it may not be a success if the completion of the project doesn’t enhance the executive’s aspirations for career advancement! Mr. Campbell stresses that the project’s key performance indicators must be well defined in advance and that the project manager must ensure that the goals expected by the executives approving the project will be met throughout the project.

More…

To read entire Book Review, click here

 




About the Reviewer


Maryanne Coelln, PMP

North Texas, USA

 



Maryanne Coelln
, PMP, is Director of Project Delivery for the American Airlines Federal Credit Union.  Maryanne has a B.S.C. degree in Marketing from Santa Clara University, California and earned her PMP in 2003. She has over 15 years of experience in leading technical project teams and is focused on developing practical methodologies. She has been an active member in the PMI Dallas Chapter for many years.

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Dallas Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.  Chapter members are generally mid-career professionals, the audience for most project management books. 

 If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected]

 

 

Rethinking Innovation and Design

BOOK REVIEW

Book Title:     Rethinking Innovation and Design For Emerging Markets: Inside the Renault Kwid Project
Author:  Christophe Midler, Bernard Jullien, Yannick Lung
Publisher:  Auerbach Publications
List Price:   $59.95
Format:  Hard cover, 164 pages
Publication Date:   May 15, 2017
ISBN: 978-1-138-03720-5
Reviewer:     Stephen Fierbaugh, PMP
Review Date:   10/2017

 



Introduction

Coming up with new methods of design and manufacture to reach the “next billion” has wide application across a variety of consumer products.  Too often, Emerging Markets just get the hand-me downs, rejects, or old tooling from North America or Europe.  To truly reach the emerging markets will require creativity on an industrial scale.

Rethinking Innovation and Design for Emerging Markets is a case study of the inexpensive Renault Kwid automobile, successfully developed in and for the Indian market.

Overview of Book’s Structure

The first half of the book is a conventional case study of the Kwid project.  Because I knew little of automotive industrial design, this part of the book was very informative.  The Renault and Nissan alliance created a project to build a vehicle tailored for the Indian market.  It had a target price of one-half of the price of most small vehicles in the market.

The second half of the book is an exploration of the “fractal innovation” strategy pursued by the project team.  It is heavily documented with references to prior studies and academic papers.

This book is an English translation from the French, Innover à l’envers, repenser lat stratégie et la conception dans un monde frugal (Dunod, 2017, EAN13: 9782100759880).  That occasionally gives rise to awkward turns of phrase such as, “…inspired by the Indian success of the Duster, which had just been launched in India.” (p12)

About half of the charts in the book are Powerpoint slides whose readability suffers from their resizing and lack of color.  This is especially noticeable in the first half of the book.

Highlights

The Kwid retails in India for about $3500, and is far nicer than anything similarly priced.  In order to achieve astonishing target price goals, a fundamental paradigm shift had to occur in the way that Renault designs and develops automobiles.

The first change is that most vehicles are developed at headquarters design centers featuring an long development cycle and a cast of hundreds, if not thousands, of skilled engineers, then are frozen and transferred to a manufacturing team to develop unchanged.  The Kwid team worked as a much smaller independent team with authority to challenge any corporate regulations.

Based in India, the team was able to practice fractal innovation and frugal engineering.  Fractal innovation means reconsidering every cost and engineering structure at every level, both large and small; nothing was considered sacred or off-the-table.  Frugal engineering means designing to cost rather than the other way around.  The team considered the tiniest changes to reduce costs, involved engineering early, and kept simplifying designs much later than typical in the manufacturing cycle.

More…

To read entire Book Review, click here

 



About the Reviewer


Stephen Fierbaugh, PMP

Texas, USA

 


Stephen Fierbaugh has a MA in Intercultural Studies with a focus on ICT and is a Project Management Professional (PMP).  He leads global teams and projects facing challenging partnerships and cross-cultural or remote participation.

Stephen can be contacted at [email protected] 

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Dallas Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.  Chapter members are generally mid-career professionals, the audience for most project management books. 

 If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Let the Story do the Work

BOOK REVIEW

Book Title: Let the Story do the Work: The Art of Storytelling for Business Success
Author:  Esther K. Choy
Publisher:  American Management Association
List Price: $24.95
Format: Hard Cover, 256 pages
Publication Date:  2017     
ISBN: 9780814438022
Reviewer: Edward Raibick, PMP
Review Date: October 2017

 



Introduction

The book titled Let the Story do the Work introduces the reader to storytelling as a tool to motivate, influence and communicate sometimes complex issues and ideas to the listener.

Overview of Book’s Structure

  • Chapter 1 introduces the reader to the principle elements of storytelling.
  • Chapter 2 covers the five basic plots of business communication.
  • Chapter 3 mentors the reader on knowing your target audience and ways to inspire and take action on your message.
  • Chapter 4 discusses tools and methods for telling stories with data.
  • Chapter 5 addresses communicating complex details and issues.
  • Chapter 6 introduces the use of visuals to communicate your message.
  • Chapter 7 discusses collecting stories from everywhere for your toolkit.
  • Chapter 8 covers using your own story to gain connection and credibility.
  • Chapter 9 introduces storytelling as a network tool.
  • Chapter 10 discusses using stories to sell the impact of non-profits.
  • Chapter 11 reviews a case study in the healthcare industry.

Highlights

The Let the Story do the Work book provides documented processes and methods for analyzing, preparing and conveying thoughts and ideas through the use of storytelling. Utilizing the tools in this book can put the story listener at ease and quickly establish “common ground” for future communications. It teaches the reader to know their audience and provides ways to communicate thoughts and ideas in a most effective manner. It also discusses situations where complex issues and ideas can be simplified via storytelling and the use of visuals to enhance the story.

Highlights: What I liked

This book was a quick and easy read, chock full of tools and information that can be quickly utilized by the reader. Its content is not exclusive to just the business world but in all areas of one’s life where communication is part of our everyday activities.

The books also discusses the “elevator pitch” scenario where time is of the utmost importance in go-no go decisions, and presents effective methods for success in these situations.

More…

To read entire Book Review, click here

 



About the Reviewer


Edward Raibick, PMP

North Texas, USA

 


Edward Raibick, PMP
is a Project Management Consultant with extensive experience software engineering, managerial and IT Project Management. Edward holds a Master’s degree in Information Technology with a concentration in Internet and IT security, a Bachelor’s degree in Information Technology and an Associate in Specialized Technology degree in Electronics. His career includes over 10 years with the IBM Corporation and over 15 years with Texas Instruments. Edward is a member of the Project Management Institute, Dallas Chapter, having acquired his PMP certification in 2011.

Email address: [email protected]

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Dallas Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.  Chapter members are generally mid-career professionals, the audience for most project management books. 

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

The Entrepreneurial Project Manager

BOOK REVIEW

Book Title: The Entrepreneurial Project Manager: Best Practices and Advances in Project Management Series
Author: Christopher Cross
Publisher:  CRC Press / Auerbach Publications
List Price:   $69.95          Format:  Hard Cover, 196 pages
Publication Date:   August 2017
ISBN: 9781498782357
Reviewer: Rohit Tammana         
Review Date:   10/2017

 



Introduction

Decisions are an integral part of a project manager and this book takes an interesting view of how Stoicism and Taoism can help navigate the complex decision making and judgement involved for every project manager. It is unfortunate that philosophy has not been made integral to fields like engineering, business etc. This book beautifully ties philosophy with project management and the lessons are very valuable even if you are not a project manager. Having an entrepreneurial mindset coupled with the frameworks established under aforementioned philosophies will help establish a powerful tool to handle any situation.

Overview of Book’s Structure

The chapter contents of the book flow in an efficient manner. It starts off by describing the traditional mindset of every project manager and an organization. It highlights the wasteful efforts which managers tend to make in the real world. The examples chosen to explain are not limited to organization, but also to sports etc. which make the reading more engaging. How do you challenge the status quo, the “best practices” that don’t remain the best if not revisited often, the mental techniques on how to frame and redirect thoughts effectively are discussed.

The organizational strategy section talks about how leadership qualities are essential to execute a business strategy and how leaders act as influencers for an organization. It talks about the common organizational mistakes and how to avoid them. How to perceive challenges as opportunities and how to go about exploiting them, how to freeze-thaw ones challenges, ask better questions and an engaging conversation are central to any project manager and this section hits the mark.

The optimistic pessimistic approach and the art of saying no, decisions making based on information, how to skim information, communicate with the team are discussed with various frameworks throughout the rest of the book.

Highlights

Stoicism: The impediment to action advances action. What stands in the way becomes the way – Marcus Aurelius, Meditations

This is a very profound quote that summarizes any life struggle. We need to acknowledge any problem in life and such problems should motivate one to move forward and create a new path. This will teach you to embrace problems that any entrepreneur will encounter. In a project manager’s role, obstacles are encountered every day. If you accept the problem and take necessary actions despite setbacks, this opens up a whole new perspective on being successful.

More…

To read entire Book Review, click here

 



About the Reviewer


Rohit Tammana

Texas, USA

 


Rohit Tammana
is a senior lead project manager specializing in business strategic development and execution, new product introduction, project financials and P&L oversight. He has successfully planned, launched and managed several new products, and led highly effective R&D teams. He has also spearheaded various operational improvements to drive productivity, reduce costs and improve operational ratios and has a track record of providing client-centric services with deep knowledge of firm’s strengths and capabilities. Rohit has a Bachelor’s and a Master’s degree in mechanical engineering and a MBA in Information and Operation Management. Email address: [email protected]

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Dallas Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.  Chapter members are generally mid-career professionals, the audience for most project management books. 

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

November 2017 Report from Spain

Spain represented at PMI LIM in Chicago; Alfonso Bucero wins PMI Eric Jenett Excellence Award

REPORT

By Alfonso Bucero

International Correspondent & Editorial Advisor

Madrid, Spain

 



Spain was represented at the PMI LIM in Chicago

This year ten Spanish project professionals attended the PMI LIM sessions. It has been a pleasure to see how the Spanish presence has been increased over the last years. The PMI Madrid Chapter was one of the three finalists of the PMI Chapter of the year Award. Unfortunately, it was not the winner, but the Chapter was honored to be so close to win. The PMI Madrid Chapter, founded in 2003, is counting more than 1800 active members.

Alfonso Bucero was awarded with the PMI Eric Jenett Escellence Award

Alfonso Bucero, MSc, CPS, PMP, PMI-RMp, PfMp, PMI Fellow was recognized with the 2017 PMI Eric Jenett Excellence Award at the PMI Gala Dinner in Chicago on October 28th 2017. That award recognizes project professionals worldwide who contributed over the years to project management excellence. It was great to have 10 Spanish colleagues attending the Award ceremony.

More…

To read entire report, click here for (English) or (Spanish)

 



About the Author


Alfonso Bucero

Contributing Editor

International Correspondent – Spain

 

 

Alfonso Bucero, MSc, PMP, PMI-RMP, PfMP, PMI Fellow, is an International Correspondent and Contributing Editor for the PM World Journal in Madrid, Spain. Mr. Bucero is also founder and Managing Partner of BUCERO PM Consulting.  Alfonso was the founder, sponsor and president of the PMI Barcelona Chapter until April 2005, and belongs to PMI’s LIAG (Leadership Institute Advisory Group).  He was the past President of the PMI Madrid Spain Chapter, and now nominated as a PMI EMEA Region 8 Component Mentor. Alfonso has a Computer Science Engineering degree from Universidad Politécnica in Madrid and is studying for his Ph.D. in Project Management. He has 29 years of practical experience and is actively engaged in advancing the PM profession in Spain and throughout Europe. He received the PMI Distinguished Contribution Award on October 9th, 2010 and the PMI Fellow Award on October 22nd 2011.  Mr. Bucero can be contacted at [email protected].

To see other works by Alfonso Bucero, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/alfonso-bucero/

 

 

November 2017 Update from Buenos Aires

PMI Tour Cono Sur 2017 in 4 Argentine Cities in November (Project Management Report from Argentina)

REGIONAL REPORT

By Cecilia Boggi, PMP

International Correspondent

Buenos Aires, Argentina

 



The most important local news during the month of November for the project management community in Argentina, is undoubtedly the realization of the International Congress called PMI Tour Cono Sur 2017, which this year will be held in four important Argentine cities: Mendoza, Rosario, Buenos Aires and Cordoba.

Arriving from Paraguay and Uruguay, the PMI Tour Cono Sur 2017 begins in Argentina in the beautiful city of Mendoza, organized by the PMI Nuevo Cuyo Chapter, on Friday 3rd and Saturday 4th, November.

The welcome to the congress, held at the National University of Cuyo, is made by the Project Management of the event, Juan Ignacio Haudet, and then, Lorena Lemos, current President of the PMI Nuevo Cuyo Chapter, gives the opening remarks.

The day has the participation of important exhibitors of recognized experience, among which are José Martín, Iris Gastañaga, Fernando Bolado, Jorge Estrella, Leonardo Vázquez, Belén Povedano, Guillermo Navarro Sanz, Germán Martínez and Javier Ferreyra, with the closure of the Day in charge of Eduardo Noello, President-elect of the PMI Nuevo Cuyo Chapter for year 2018.

On Saturday, November 4th, an outdoor activity is carried out, as is customary in this congress, which takes place in Solo Contigo Winery, including the visit to the winery and a workshop about Stakeholders Management, facilitated by Gustavo Albera and Mauricio Garay. PMI Tour Cono Sur Mendoza 2017 closes with a toast in the same winery.

Continuing with the PMI Cono Sur Tour 2017, on Wednesday, November 8th, it will take place in the Argentine Catholic University of the City of Rosario, organized by the Rosario Community of the PMI Buenos Aires Chapter, and Chapter in Formation, again with renowned international exhibitors, such as Víctor Villar, from Peru, Enrique Aparicio from Bolivia, Jorge Gadze and Gustavo Albera from Argentina.

Then, the Tour will continue, organized by PMI Buenos Aires Chapter, in the city of Buenos Aires, on Thursday, November 9th

More…

To read entire report click here for (English) or (Spanish)

 



About the Author


Cecilia Boggi

International Correspondent

Buenos Aires, Argentina

 

 

Cecilia Boggi, PMP is founder and Executive Director of activePMO, giving consulting services and training in Project Management and Leadership skills in Argentina and Latin America.

After graduating with a degree in Computer Science Engineering from Universidad de Buenos Aires, Argentina, she has managed software development projects and PMO implementation projects for more than 20 years both in the government and private sector. Cecilia has an Executive Master in Business Administration from Universidad Francisco de Vitoria, Spain and also has graduated from an Executive Program in Business Management at Universidad del CEMA. She holds the Project Management Professional (PMP®) credential since 2003, is certified as SDI Facilitator from Personal Strengths©, is a Professional Executive Coach accredited by Association for Coaching, UK, and alumni of the PMI Leadership Institute Master Class 2012.  Ms. Boggi is Past President of the PMI Buenos Aires Argentina Chapter, and is a founding member of the PMI Nuevo Cuyo Chapter and PMI Santa Cruz Bolivia Chapter. She has been designated by PMI in the role of Mentor of Region 13, Latin America South, for the years 2014-2016.  Cecilia has participated in the development of PMBOK® Guide 5th Edition, leading the Chapter 9, Human Resource Management, content team and she is professor of Project Management and Leadership in some Universities and Institutes in Latin America.

She can be contacted at [email protected] and www.activepmo.com

To view other works by Cecilia Boggi, visit her author showcase in the PM World Library at http://pmworldlibrary.net/authors/cecilia-boggi/.

 

 

November 2017 UK Project Management Round Up

Project Successes, New Trains, Heathrow Third Runway Inquiry, Bloodhound SSC Low Speed Trial

REGIONAL REPORT

By Miles Shepherd

Executive Advisor & International Correspondent

Salisbury, England, UK

 



INTRODUCTION

This month’s report comes to you from sunny Helsinki where I am attending the Finnish Project Management Association’s Annual Conference.  You can read Jouko Vaskimo’s report on this elsewhere in this issue, so I will just say that it is being held in the same venue that IPMA used in 2007 for its World Congress and the weather is wonderful (today at least – more snow forecast but not till after I return to UK).  It is with some pride that I can report that report is my 60th for PM World Journal.  I have missed several months over the 6 years since we launched but hope some of you are still reading these notes – and so to business, reporting on the project world from UK.

Brexit still dominates press headlines, conversations in pubs and at the school gate.  Like so many things in life, the impact of Brexit is all a matter of conjecture and everyone will be wise after the event, so I will not waste any more space on it until we are much further along in the negotiations.  All I will say is that ‘they’ need a Project Manager to run the whole programme.

This month sees a series of transport related projects and programmes ranging from the re-opening of the Heathrow Third Runway Inquiry, the first public outing for Bloodhound SSC and something I would have commented on last month, the successful project delivery by Network Rail over the August Bank Holiday.

RAIL SUCCESSES

Network Rail has a very large portfolio of rail projects that cover everything from track improvements through updating signaling, replacing road bridges over tracks to replacing stations.  Carrying out work on and around the tracks is a critical safety related activity so the opportunities are few and always require closure of the lines so Network Rail usually take the reduction of travel at Public Holiday weekends to carry out major upgrades.  The August Bank Holiday weekend was no exception with work taking place on London Bridge, Bolton and London Waterloo Stations as well as further High Speed 2 work related to Euston Station.

Work at London Bridge Photo: PA Images

As Simon Blanchflower, Network Rail’s Major Programme Director said during the platform work in 2016, “we try our best to minimise the impact on passengers and do most of the work behind the scenes, but there are big pieces of work that can only be completed when the railway is clear of trains and people”.

London Bridge is the oldest major station in the capital. And has 54 million passengers travelling through it each year.  Platform 6 is reckoned to be the busiest in Europe, with 18 trains an hour.  London Bridge’s new concourse covers an area greater than Wembley’s pitch.  Further work is expected at Christmas when major signalling upgrades are scheduled.

Elsewhere, HS2 preparation works at Euston station saw a new power supply installed as well as trackside and station clean-up and general maintenance.  While further north, critical signalling, track, civils and electrification works were completed in the Bolton station area as part of North West Electrification programme.  All this amounts to the largest programme of August bank holiday works ever undertaken and was delivered on time and as planned over the bank holiday weekend (Saturday 26 August to Monday 28 August), thanks to more than 17,000 members of the Orange Army working throughout the long weekend.

More…

To read entire report, click here

 



About the Author


Miles Shepherd

Salisbury, UK


 
Miles Shepherd is an executive editorial advisor and international correspondent for PM World Journal in the United Kingdom. He is also managing director for MS Projects Ltd, a consulting company supporting various UK and overseas Government agencies, nuclear industry organisations and other businesses.  Miles has over 30 years’ experience on a variety of projects in UK, Eastern Europe and Russia.  His PM experience includes defence, major IT projects, decommissioning of nuclear reactors, nuclear security, rail and business projects for the UK Government and EU.   Past Chair and Fellow of the Association for Project Management (APM), Miles is also past president and chair of the International Project Management Association (IPMA).  He is currently a Director for PMI’s Global Accreditation Centre and is immediate past Chair of the ISO committee developing new international standards for Project Management and for Program/Portfolio Management.  He was involved in setting up APM’s team developing guidelines for project management oversight and governance.  Miles is based in Salisbury, England and can be contacted at [email protected].

To view other works by Miles Shepherd, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/miles-shepherd/.

 

 

Finland Project Management Roundup for October 2017

Updates on Project Management Association Finland; PMI Finland Chapter; Olkiluoto 3 nuclear power plant; Hanhikivi 1 nuclear power plant; Helsinki’s Länsimetro extension; Raide-Jokeri light rail transit project

REPORT

By Dr Jouko Vaskimo

International Correspondent & Senior Contributing Editor

Espoo, Finland

 



INTRODUCTION

This roundup continues the coverage of Project Management Association Finland, PMI Finland Chapter, and the key projects currently going on in Finland.

PROJECT MANAGEMENT ASSOCIATION FINLAND

Project Management Association Finland (PMAF), Projektiyhdistys ry in Finnish, is a not-for-profit organization, and the International Project Management Association (IPMA) Member Association (MA) in Finland. Founded in 1978, PMAF promotes the interaction, project-oriented thinking, and exchange and development of practical and theoretical knowledge among project management professionals with over 4000 individual and 200 organizational members.

PMAF promotes the development and dissemination of project and project management knowledge. PMAF members are able to enjoy information sharing, workgroups, development projects, project management forums, conferences and certification services PMAF provides. PMAF organizes two annual conferences: Project Days (Projektipäivät in Finnish) in early November, and 3PMO in early June. This year the Project Days conference took place on 31.10. – 1.11.2017 in the Helsinki Expo and Convention Centre. The conference program included plenary sessions with state-of-the-art keynotes, and several parallel tracks with a total of over 70 keynote and paper presentations. The conference was attended by over 920 participants, including many of the best-known Finnish project management practitioners.

On morning of the first conference day, Mr Ville Saksi, the CEO of Länsimetro Ltd, delivered his keynote presentation Kokemuksia Länsimetron rakentamisesta (Experiences from the westward metro extension), summarizing the actions taken to get the Länsimetro project under control.

In the photograph: Mr Ville Saksi delivering his keynote presentation

On the afternoon of the first conference day Mr Karri Kivi, a renowned Finnish ice-hockey coach, delivered his keynote presentation Kuinka dream team sitoutetaan samaan tavoitteeseen ja onnistumaan (How a dream team is engaged to the same target and to success) explaining how to build a well-performing team from individuals.

More…

To read entire report, click here

 



About the Author


Dr Jouko Vaskimo

Espoo, Finland

 


Jouko Vaskimo
is an International Correspondent and Senior Contributing Editor for PM World in Finland. Jouko graduated M.Sc. (Tech.) from Helsinki University of Technology in 1992, and D.Sc. (Tech.) from Aalto University in 2016. He has held several project management related positions with increasing levels for responsibility. Jouko holds a number of professional certificates in the field of project management, such as the IPMA Level C (Project Manager), IPMA Level B (Senior Project Manager), PMP, PRINCE2 Foundation, and PRINCE2 Practitioner. Jouko is also a Certified Scrum Master and SAFe Agilist.

Jouko is a member of the Project Management Association Finland, a founding member of PMI Finland Chapter, and the immediate past chairman of the Finnish IPMA Certification Body operating IPMA certification in Finland. Since October 2007, he has been heading the Finnish delegation to ISO/TC 258.

Jouko resides in Espoo, Finland and can be best contacted at [email protected]. For more information please navigate to www.linkedin.com/in/jouko-vaskimo-6285b51.

To view other works by Jouko Vaskimo, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/jouko-vaskimo/

 

 

Is your privacy in danger when using social networks?

An analysis of the contractual terms and conditions using Multi-Attribute Decision making

STUDENT PAPER

By Racha Temraoui

Paris, France

 



ABSTRACT

Social network users may not realize what they agreed to when they clicked on « I read and accept the terms and conditions » while creating their accounts. With the rise of social networks, the content and quantity of information is now generated by individuals from all over the world, and it is therefore increasingly difficult to control all the information that circulates. Thus, numerous problems arise as regards to the protection of individual’s privacy. We analyzed the privacy policies of three different social networks using Multi-Attribute Decision making. And as a result, we discovered that social networks describe their relationship with their users trying to explain in their privacy terms the processing of their personal information and how they can control it. In line with our analysis, we chose Facebook’s privacy terms as the best provided to users in comparison with Twitter and LinkedIn. And, we identified that the length, terminologies and design of social networks privacy terms have a significant impact on the number of users who read these terms. Social networks can surely find creative ways to present their information and social networks’ users should think carefully of what they are committing to before signing up.

KEY WORDS

Internet, Social media, Social networks, personal data, private life, laws, terms and conditions

INTRODUCTION

In the sociological sense, the term « social network » refers to a set of web sites allowing interaction between actors. From the 1990s, the concept of social networking appeared on the Internet through the creation of blogs where individuals interact by exchanging content about professional, non-professional information or about their private life. The technological revolution allowed the accelerated development of the search engines, and at that time the social networks were born. Despite the fact that the creation of social networks is still recent, their number has only increased during the last ten years to finally become indispensable to society.

Indeed, social networks have been set up so that Internet users can maintain a virtual contact with many people. In addition, this new type of communication spreads information at high speed. Today proving to be very practical and even indispensable to everyday life, individuals become dependent on these communication tools. However, it seems that social networks are starting to control people’s lives since they act on many levels: social, political, economic and professional. Thus, numerous problems arise in particular as regards to the protection of individual’s privacy. On one hand, with the rise of social networks, the content and quantity of information is now generated by individuals from all over the world by who have an account on these networks. It is therefore increasingly difficult to control all the information that circulates.

On the other hand, traditionally, laws did not take these issues into consideration. Indeed, there is a discrepancy since the laws have not had time to adapt to large technological evolutions and consequently to the emergence of social networks. Therefore, Judges have been confronted with a number of situations where individuals have presented complaints against social networks because they do not make enough effort to protect the privacy of their users.

1-     Problem definition

Hence, due to many problematic situations related to the presence of personal data of members on social networks and the fact that this information is made available to the world, legal authorities are aware that the laws did not have answer to all these questions. But aren’t social network users also responsible for this? Did they read the terms and conditions before they have joined Facebook, Twitter or Linked In? Are they aware that by just clicking on « sign up », they actually agree to their terms of service? Do they know that these terms and conditions are in fact a contract between them and social media? Thus, is users’ privacy in danger when using social networks?

To summarize, this paper has been designed to research, analyze and answer the following questions:

1)     How social networks deal with privacy in their terms of service?
2)     Which social network between Facebook, Twitter and LinkedIn provide the best privacy policies to its users?
3)     Why most social network users do not read the terms and conditions before joining these services?

2-     Identify the feasible alternatives

We chose three social networks that have different purposes to compare and analyze their privacy terms and conditions.

First, Facebook which is typically a social network website that allows its users to stay in contact with people wherever they are and to share with them messages, pictures, videos and stories.

Second, Twitter which is another social network website that enables its users to send what they call “Tweets” that are messages they can send to their followers and friends. It enables them to express their feelings or opinions about anything they want to a large audience whenever they want.

And third, LinkedIn is also a social network website but it is mainly oriented towards business and employment, and it is generally used as an interaction between job seekers who post their Curriculum Vitae and other professional information and employees who post job opportunities.

3-     Development of the outcome for alternatives

It is actually easy to access the privacy terms and conditions of these three social networks since they are shown directly on the registry page.

More…

To read entire paper, click here

 

Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].



About the Author


Racha Temraoui

Paris, France




Racha Temraoui
, Lebanese economist graduate from Saint-Joseph University (USJ), studying Masters in Management at Ecole Supérieure des Affaires (ESA business School) and currently enrolled in an exchange semester at SKEMA Business School in France pursuing the specialization “Msc Project and Program Management and Business Development”. A Project Manager to be…

Racha can be contacted at [email protected] or www.linkedin.com/in/racha-temraoui

 

 

Benchmarking Final Payment Terms

Benchmarking the Final Payment Terms and Conditions of FIDIC, AIA, EJCDC and Consensus Docs Contracts

STUDENT PAPER

By Danlei Jiang

SKEMA Business School

Lille, France

 



ABSTRACT

Architects professional service in a construction project usually takes a long period, it may contain several months or even several years. During such long term, the project may occur a lot of changes which may influent the final payment. However, there are few terms of final payment in the construction contract. Therefore, this paper is developed to analyze the issue and use Dominance method to compare different standard forms such as the American Institute of Architects (AIA), the Construction Specifications Institute (CSI), International Federation of Consulting Engineers (FIDIC), Engineers Joint Contract Documents Committee (EJCDC) and Consensus Docs. Based on the analysis, the author suggests use final payment certificate and set a deadline to guarantee the payment. In addition, the owner and contractor shall constitute a waiver of claims after made the final payment.

KEY WORDS: construction contract, architect professional service, final payment, owner and contractor, Dominance method, payment certificate

INTRODUCTION

With the rapid development of globalization, more and more construction companies and architects start to work in an international environment with people from different countries and cultures. As we all know, contract as the basis and of a project or program, plays a very important role from beginning to end, especially for an international construction, because it is more multiple and complicated to control the whole duration. Therefore, this paper is developed to analyze an important part of the architect professional services contract, final payment, with different organization standards such as AIA, CSI, FIDIC, EJCDC and Consensus Docs.

In this paper, the author uses Dominance method as a tool to compare the different statement about final payment between the contract “Architectural and Engineering Services Agreement” and the other organizations’ standard form which showed above. Then, this paper will analyze the problems and opportunities what this construction contract has in the final payment part and try to find out a perfect solution and give several suggestions in order to make the contract more comprehensive and practical.

When should the final payment due by the owner and contractor? Is there something they must double confirm before the final payment? Do they need a deadline or time limitation for the final payment even some changes happened? All these kinds of questions should be thought in more details and well listed in the construction contract. However, in the contract we chose for analysis, it just stated that all stage’s final payment need an acceptance written by the owner. Obviously, this contract missed a lot of important statement about the final payment such as the questions list above. It is too vague to clearly articulate the responsibilities, rights and interests for both owner and contractor. Therefore, this paper is developed to analyze the statement of final payment in FIDIC, AIA, EJCDC and Consensus Docs and find a better one which could suit more for the construction contract we were chosen.

METHODOLOGY

In the analysis of this paper, the author uses Dominance method as the main methodology. Dominance method as one of the Multi-Attribute Decision Making (MADM) methods, is more useful and practical especially when there are subjective attributes. As mentioned before, we planned to compare the final payment terms in different standard forms such as CSI, AIA, EJCDC and so on. By using Dominance method, we could easily find out a better or the best term in their statement, and clearly know how to consummate the construction contract we were chosen.

FINDINGS

  1. Compare with the baseline: CSI

In this paper, we use CSI as the baseline for the construction contract. There are many clear terms in CSI’s statement. And it could be very helpful to consummate the final payment part in the construction contract if we refer the terms in CSI. There are three terms talking about final payment.

More…

To read entire paper, click here

 

Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared as a deliverable for the course “International Contract Management” facilitated by Dr Paul D. Giammalvo of PT Mitratata Citragraha, Jakarta, Indonesia as an Adjunct Professor under contract to SKEMA Business School for the program Master of Science in Project and Programme Management and Business Development.  http://www.skema.edu/programmes/masters-of-science. For more information on this global program (Lille and Paris in France; Belo Horizonte in Brazil), contact Dr Paul Gardiner, Global Programme Director [email protected].



About the Author


Danlei Jiang

Lille, France

 

 


Danlei Jiang
is a MSc student in SKEMA Business School, major in Project and Programme Management & Business Development (PPMBD). She graduated from Soochow University, China and holds a Bachelor’s degree in Public Finance. In 2016, she has worked for Eaton, a power management company as finance assistant in Suzhou, China. She has both project management and finance education background. She lives in Lille, France now, and can be contacted at [email protected].

 

 

Considerations for Information Security in Projects

SECOND EDITION

By Neelov Kar

Dallas, Texas, USA

 



Abstract

Use of information in our daily life has become essential in the 21st century. Projects are planned and executed based on a plethora of information that has accumulated in the past or has been generated during the process. Information processing has become a part and parcel of any project, whether it is constructing a high rise condo, building a nuclear submarine, developing a new application, building a new hospital or manufacturing a self-driving car. On one hand information helps us to develop a sophisticated service but at the same time it becomes our responsibility to protect it from unauthorized access.

We deal with sensitive information such as intellectual property or personally identifiable information. For example, we cannot think of building a new hospital without an integrated information processing system that is interfaced with the medical devices used in different departments such as radiology or pathology etc., as well as the front office where patient registration happens. At every step of the way we are either receiving sensitive information from the patient or generating new information during the service or storing the information for future use.

During the project planning we must analyze the security exposer and should plan to protect the information. Some of the international standards define this as mandatory requirements.

The author would like to provide the basic requirements from different international standards such as ISO 27001, ISO 27018, PCI, SSAE16 and CSA STAR that are relevant for project initiation, planning, execution, control and closing phases.

Introduction

Information technology is part of our daily life. As a project manager we use social media, web based application and other IT tools to manage our projects. People are biggest risk for information security. We need to be careful about who we recruit and how we maintain the information security discipline in the team. We not only have to protect the project information but also need to analyze if there is any security vulnerability that can impact information security of the project. Here are some examples that can happen to your projects.

More…

To read entire paper, click here

 

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the 11th Annual UT Dallas Project Management Symposium in August 2017.  It is republished here with the permission of the authors and conference organizers.



About the Author


Neelov Kar

Dallas, Texas, USA

 

 


Neelov Kar
has been working as Account Manager (Client Executive) in Perot Systems since 1998, where he has been instrumental in opening new accounts and managing and expanding existing accounts at different client sites with different technologies and domain expertise. As an Account Manager/ Program Manager he has implemented multiple large projects on mainframe and client server environment.  He was also involved in recruiting and training/ mentoring the project managers and helped them in their career progression.

He is a PMP, RABQSA certified ISO 9000 Lead Auditor, ISO 14001 Lead Auditor, ISO 27000 Lead Auditor, ISO/IEC 20000 certified, Six Sigma Certified, CSA STAR certified and a Certified Quality Analyst.  Neelov can be contacted at [email protected]