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Welcome to the January 2018 PMWJ

Global Citizens, Project Earth Revisited (again), Solving Global Problems and… Welcome to the January edition of the PM World Journal


By David Pells

Managing Editor, PMWJ

Addison, Texas, USA

 



Welcome to the January 2018 edition of the PM World Journal (PMWJ), the 66th uninterrupted monthly edition.  This issue contains 34 original articles, papers and other works by 39 different authors in 14 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 space to discuss important trends or issues that I see as journal editor.  Last month, we launched the first Editor’s Choice Awards for outstanding articles and papers published in the PMWJ in 2017.  This month I go even bigger picture, solving global problems. What are we as project management professionals, either individually or as professional organizations, doing to help address pressing global problems?  Sometimes I think that is asking too much; how can we make a difference when the issues and problems seem so great? Now as I approach the end of my career, I am asking myself why I did not try to do more.

Recent Context

In September, in the aftermath of Hurricane Harvey which devastated the Texas coast, I led an initiative in partnership with the Dallas and Fort Worth Texas PMI chapters to help PMI members affected by that category 4 storm.  Because PMI and its various chapters in the USA are not registered as charities, we were restricted from raising money or providing financial assistance to individuals.  I explored options for creating a new charity for helping those in the PM field recover from natural disasters, but the legal and bureaucratic barriers were significant.  Instead, over three months we collected just over $2,000 worth of gift cards to grocery stores, restaurants and hardware stores, shipped to PMI chapter leaders in the Houston areas for distribution to PMI members whose homes were damaged by the hurricane.  Needless to say, those who received the gift cards, as small as they were, were extremely grateful. At least we did something! [1]

In November, APM published a remarkable report authored by Prof Peter Morris, one of the world’s most respected experts on modern project management. The report was titled “Climate Change and What the Project Management Profession Should be Doing about It: A UK Perspective.”  As stated in the report’s introduction: ‘Research on climate change has so far been led predominantly by physical scientists, but addressing how to mitigate and adapt to it will also require management and social science skills. Those expert in the world of projects and their management should have a significant role in this. This essay by Professor Peter Morris provides an initial scoping of where and how project management as a profession might address the implications and consequences of climate change.’ Peter ends the report in section 8.4, “So what should project management be doing?”, with suggestions for actions at the individual, enterprise, international and professional levels. [2]

Over the years, I have been involved with many discussions and a few initiatives to address some global problems; I’ve written some papers.  I decided to do something more this month.  But first, a little more context!

Global Citizens

Over the last few months, I have noticed television ads on CNN, NBC and a few other media channels in the United States by an organization called “Global Citizen”.  Founded in 2008 by three bright guys in New York who decided to try to make a difference, Global Citizen is now a major social action platform for those who want to help solve the world’s biggest challenges. Global Citizen is headquartered in New York, with offices in Canada, Australia and the UK. On their platform you can learn about issues, take action on what matters most and join a community committed to social change. Through their mix of content and events, grassroots organizing and extensive reach through digital channels, Global Citizen is building the world’s largest movement for social action. They organize massive global campaigns to amplify the actions of Global Citizens from around the world.  With millions of members and the support of many high-profile celebrities, they have organized concerts and events in New York’s Central Park and other places worldwide in recent years. [3]

Global Citizen is not the only group or global initiative underway, launched by concerned and motivated individuals worldwide.  While politicians have argued, made global agreements, established goals, and committed support and money, it often seems like they have done little to actually solve the problems.  It seems that individuals and online communities are now doing more and having a greater impact.  The message to me was “just do something”.

Project Earth Revisited (Again)

Believe it or not, “Project Earth” was the name of an initiative within the project management professional world launched in 1990 in Calgary, Canada following a keynote speech by Dr. Frank King, former chair of the 1988 Calgary Winter Olympic Games, at the PMI’90 Global Congress (The event was called Seminars/Symposium at that time).  In his dramatic presentation, Dr. King painted a dire picture of the damage being done to the planet by humans in recent years.  While global warming and climate change were not yet so front-and-center, significant environmental problems were well publicized and visible worldwide.  Dr. King challenged us as individuals and as a profession to do something about it.

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/

 

 

Freelance Web Developer

How to be Well Protected?

 

STUDENT PAPER

By Lucas Louf

SKEMA Business School

Lille, France

 



ABSTRACT

Nowadays, lots of developers decide to work as a freelancer and it will certainly increase in the next years. Those developers are technically good, but they often have no legal backgrounds and, so they have no ideas on how to write a contract and what should be included in it. The aims of this paper are to identify the most important clauses in a freelance developer contract and compare those ones in the most popular templates. This analysis will help us to conclude that the template written by the AIGA, an American organization, is the best one to protect the freelance developers.

Key words: Contract, Web Developer, Intellectual Property, Freelance, Templates, Payment

INTRODUCTION

The first references to “Freelance” date back to the 18th century. It was made up of two words at that time as written in the book Ivanhoe by Sir Walter Scott and it made a reference to mercenaries: « I offered Richard the service of my free lances […] ». Though the term still refers to the provision of services by independent people, it’s not limited anymore to the military field. With the advent of the Internet, new professions have significantly developed around freelance such as web developer or web designer. They represent today a large part of the 60 million freelancers in the United States. For companies wishing for more competencies and flexibility, and workers for more liberty, this trend is rising.

Even if freelancers are skillful in their respective areas, they are rarely armed to deal with negotiations and even less with contracts drafting while all their work relies primarily on these few sheets of papers. Although the contacts with the clients are often cordial, it is not unusual to face unscrupulous people and so to go to court for copyright case or disagreements on the post-project responsibilities. So, it is very important to have a tailored contract as detailed as possible about the service that will be proposed. We could consider being assisted by a lawyer, but this is rarely profitable for a freelancer or at least for a “new” one. Fortunately, nowadays lots of websites offer templates for different kind of contracts. This is the most suitable solution. However, they should be carefully chosen and eventually modified because they are not always exhaustive.

STEP 1- OBJECTIVE STATEMENT

To summarize, we will identify the most important clauses and compare them in 5 of the most popular templates for freelance developers.

METHODOLOGY

STEP 2- FEASIBLE ALTERNATIVES

There are not as many contract templates as in the building field. However, some professional associations and some freelancers have written and shared contract templates. Here is the list of templates (for each of them, a link is provided in the bibliography), we will compare:

  1. AIGA
  2. Andy Clarke’s contract
  3. Jeremy Smith’s contract
  4. Ross Kimbarovsky’s contract
  5. Eric Adler’s contract

STEP 3- ATTRIBUTE TO EVALUATE ALTERNATIVES

The attributes selected are the most important clauses regarding this kind of contract.

  1. Expectations and Responsibilities
  2. Independent contractor clause
  3. Work report
  4. Payment terms
  5. IP Rights
  6. Termination
  7. Legal Protection

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


Lucas Louf

SKEMA Business School

Lille, France

 

 

Lucas LOUF is a French student passionate about web development and new technologies. He first trains as a general engineer at Iteem (Centrale Lille). During these studies, he does several internships as a web developer in e-business companies in both France and Netherlands helping him to obtain experience and technical skills in this field. He also discovers there the management of a web project with an Agile approach. In his final year of studies, this encourages him to follow a Master of Science in project management (PPMBD) at SKEMA Business School in parallel to an E-Business master at Centrale Lille.

 

 

Best Resolutions for Construction Contractual Disputes

 

STUDENT PAPER

By Jad Karakira

SKEMA Business School

Paris, France

 



ABSTRACT

The paper reviews different kinds of alternative dispute resolution processes that would allow more understanding to the reader and develop an understanding on what process to choose when dealing with construction contractual disputes. Dozens of alternative dispute resolution processes has been introduced to the world in the recent years which every player claims his process is the best out there, which shows after research that this is a false claim concerning construction contractual disputes. The paper reviews different kinds of dispute resolution processes out there and compare them to each other after developing the right criteria parties take into account when facing construction contractual disputes. In the first section of the paper the author develop every process by its own giving the advantages and disadvantages of it; after than the author developed a multi attribute table to compare processes to each other and in what cases every process is used for.

Additionally, the paper shows why is a selected process better than others focusing on the important attributes developed and benefits perceived from it. The final results of the paper shows that some processes have way more benefits then others and less disadvantages compared to other processes; on a parallel view there are some process which tend to be the worst to be practiced when dealing with construction contractual disputes. It is hoped that the study will inform readers that mediation is the best dispute resolution process when it comes to construction disputes, and arbitration and litigation are the worst.

Key words: ADR “Alternative Dispute Resolution”, Arbitration , Mediation, Litigation Expert, determination , Adjudication, Conciliation

INTRODUCTION

Construction contracts are one of the highest ones which may form a dispute, at the beginning, during, or at delivery of any project. Costing hundreds of millions of dollars every year, and putting thousands of families at risk who benefit from working for the project. ADR came to sight to solve disputes between each party without going to court, and without going into the extremely high costs with putting time and future work at risk like the traditional way of dispute resolutions.

Alternative dispute resolution (ADR) is one of the ways to deal with disputes claims with the help of a neutral third party, with a lot less time, saving a lot of money, getting a high success and satisfaction rate, keeping disputes private, and preserving relationships by helping people co-operate instead of doing a winner-loser game, and a lot other benefits which keeps construction contract holders choose it over other ways for resolving their claims.

ADR may not be suitable for every dispute though; construction disputes are the subject we’ll talk about and ADR is one of the best practices to resolve disputes in this field. There are many kinds of ADR including mediation, arbitration, and conciliation which will talk about in details later on. So what we’ll do in this project is to understand why ADR is a better choice for construction contractual disputes understanding what’s the benefit of it, and introduce different kinds of ADRs and what is the best to worst (ADR) processes to be practices with construction contractual disputes.

  1. Problem Recognition

Construction projects don’t seem to be strangers to disputes. Payment disputes, workmanship disputes, scope-of-work disputes, and a lot of others will all cause projects (or components of projects) to grind to a halt. Upon many other dispute resolution processes, and with developing specific criteria for grading; we will score the processes to choose which is the best process to choose for construction contractual disputes.

This document aims at, first what an (ADR) is all about and why it is used widely in the whole universe, and then to identify and analyze, what are the best (ADR) practices to be used for construction contractual disputes, how managing request for change can be a challenge.

Considering this, we will be able to answer the following questions:

–        What are the most important criteria for choosing a dispute resolution process?

–        On which basis are the criteria selected and how is the level of importance of each one determined?

–        What are the best/worst dispute resolution processes to be used for construction contractual disputes?

–        Are there better dispute resolution processes than other processes for construction contractual disputes?

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


Jad Karakira

SKEMA Business School
Paris, France

 


Jad Karakira
is currently in his final year completing a Master of Science in Project Management and Business Development at Skema Business School in Pôle Universitaire Léonard de Vinci La Defense Paris area. He previously acquired a Bachelor in Business Marketing at the American University of Science and Technology in 2016, Beirut, Lebanon. As an undergraduate, he has gained a wealth of knowledge through freelance work and internships that reinforced his pursuit of a career in project management. Consequently, the potent amalgamation of a business background and management skills served as great motive for him to further his education with a masters. During his graduate studies, Jad also partook project management roles in support of start-up contracting companies in Lebanon. His particular interest in the construction field inspired him to write about dispute resolution in construction contracts.

 

 

How can managing change in construction projects improve productivity?

 

STUDENT PAPER

By Ferdinand Huc

SKEMA Business School

Lille, France

 



ABSTRACT

In construction industry, productivity as always been a challenge and change a constant. Correlation between these two elements is evidence. In term of change management, thousands of methods are used throughout the different construction companies, and these different methods achieved different results. The aim of this paper is by using tools as MADM and additive weighing technique to determine which is the most efficient method to manage change by limiting its impact on productivity. Based on the analysis, company needs a clear and precise communication which goes thru well defined and structured forms.

Key words: Change processes, Construction industry, Rework, Managing change, Overruns

INTRODUCTION

Construction is one of the largest industries worldwide. It has grown from US$7.4 trillion in 2010 to US$8.5 trillion in 2015 and with the expected growth in population, it is forecast that the volume of construction output will grow by 85%. This market is a real opportunity for contractors, but isn’t has easy as it appears.

Even with a grow in activity this big, construction industry struggle to adopt and integrate new technologies, no major transformation has been undertaken leading in a stagnation of the productivity if not a decline. Changes correlation to productivity is to blame. Study shows that approximately 40% of construction projects encounter 10% of change. When change exceed 20% then productivity never achieve expected rates opposed as when change stays below 5%, productivity is always better than expected. This correlation between productivity and change also affects planning and budget. Productivity being linked to performance; a reduction of productivity could result in a delay in the planning and then a cost overrun to overtake this delay.

Illustrations of these phenomena are numerous; the recently built Kuala Lumpur International Airport 2 exceeded its target price by more than RM 2.3 Billion and opened three years behind schedule. The reason for it was new design concepts and a non-structured information flow compromising a clear change process. It is already difficult to achieve an on time, on budget and on scope construction project on Earth, you could imagine how went the construction project of the international space station. The project was first initiated in 1984 with a cost estimation of US$8 Billion. Uncontrolled revision and changes over the years propelled the budget to twelve times the first estimate and the station in schedule to be finished in 2018.

As Heraclitus, the Greek philosopher, once said: “change is the only constant in construction projects.” Then change management becomes critical to every construction project.

STEP 1 – OBJECTIVE STATEMENT

This paper will discuss how to improve construction projects by answering to these questions:

–        How to minimize impact from change order process on productivity?

–        What must a change order form contain?

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


Ferdinand Huc

SKEMA Business School
Lille, France

 

 

Ferdinand Huc is a pupil from Toulon, in the south of France. From a navy dad, he has lived in his youth 2 years in New-Caledonia before moving to Belgium at 11 years old, where he lived 10 years attending the French Lycée of Brussels. In 2011 Ferdinand integrated after succeeding the entry exam the Navy lycée in Brest, at a boarding school, where he stayed only a year before going back to Brussels. After graduating high school in 2013 he decided to start his engineer study back in France, in Lille. He integrated a formation of the Ecole Centrale Lille named ITEEM where engineering is mixed up with business management and entrepreneurship. As a part of his study, Ferdinand spent 8 months in New-Zealand for some internships. Now in his final year of study, Ferdinand specialized himself in Production System Management on the engineering side and choose to do at the same time a MSc in project management and business development at SKEMA. Graduating in April 2018, he is now looking for new opportunities. Ferdinand can be contacted at: [email protected]

 

 

Handling Conflicts in Performing Art Co-Productions

A Managerial Challenge for Contractors

 

STUDENT PAPER

Marine Kuhn

SKEMA Business Schoo

Paris, France

 



ABSTRACT

Because of the increase of co-producers supporting a project in the performing art sector, it becomes more difficult for them to converge their interest and to find common agreements through a co-production contract. Undoubtedly, conflicts and disputes tend to arise. However, most of the time co-producers do not know which dispute resolution method is best adapted to their needs.

That is why this paper will aim at proposing to co-production contractors which dispute resolution method they should choose and how they should handle conflict resolution in their contracts.

The methodology used is a comparative analysis, using multi-attribute decision making, of the different alternates dispute resolution through the performing art‘s co-production contractors’ needs. And, as a result, negotiation followed by mediation, best answer contractors’ needs, in terms of cost, speed, privacy and confidentiality, preservation of relationship and adapted to multiple parties.

Thus, co-production contractors in the performing art sector, in case of conflict or dispute should first implement direct negotiation between them. If no mutual agreements are found, then they should go further in a facilitated resolution stage through mediation. They need to have in mind that litigation has always to be chosen in a very last choice and this process has to be contractualized in their co-production contracts in an article “Claim and Dispute”.

Key words: Conflict, Dispute, Conflict resolution, Dispute resolution, Disagreement, Conflict of interest

INTRODUCTION

A project, according to Max WIDEMAN, “encompasses an entire set of activities having a definable starting point and well-defined objectives the delivery of which signal the completion of the project. Projects are usually required to be accomplished within limited resources”. [1]

In that sense, producing a show is a project since producers have the objective to produce a show within a fixed period of time and limited resources.

The producer of the show “La Despida,” that has been represented during the Festival Sens Interdits on October 2017, told me “without the support of all our co-producers, the theatre company Mapa Teatro would never play in France. All the difficulty is to find a common interest and to avoid conflicts”. Indeed, there are four different co-producers engaged for the show “La Despedida”. To succeed in agreeing and implementing a co-production contract, strong competencies in management and conflict management are now required in Performing Art co-production contracts. However, few researchs neither studies have yet been conducted on this subject.

First of all, performing arts point out several artistic ways of expression in which artists perform a live show in front an audience. Under “performing arts”, theatre, dance, live music, circus art, street art, opera, street show and the arts of puppetry are considered.

In this sector, due to the internationalization of the artistical projects and the continuous need for financial support, the most common contract used in order to produce a creation, a show or an event, is the co-production contract.

According to the International co-production manual[2], “a co-production in the performing arts involves two or more producing partners entering into a contractual agreement to support the creation and distribution of a production or process-orientated project”. The objective of a co-production is to gather the financial means to succeed in financing an artistic project. It is a partnership collaboration between co-producers, who are committed to a common project.

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


Marine Kuhn

SKEMA Business School
Paris, France

 

 

Marine Kuhn is currently studying in SKEMA Business School Paris, major in Project and Programme Management and Business Development (PPMBD) and International Marketing and Business Development (IMBD). She will be graduated in April 2018.  She joined SKEMA Business School for her Master degree 1 and she spends the second semester in Suzhou on the Chinese campus of SKEMA. Before joining SKEMA Business School, Marine KUHN studied two year technical courses in Marketing and Sales and had been enrolled in an exchange programme for 1 year in Norway.

Thanks to her professional experiences, she has a lot of competencies in communication, sponsorship, partnership and event organization.  She realized a 6 months internship in GL events, the international leader in the event sector. From September 2016 to February 2017, she was Project Manager Assistant for SIRHA 2016. SIRHA is the world biggest exhibition for food and hospitality industries. She was in charge of the French bakery cup. Then, from April to June 2017, she realised an internship in the organization of the music fest “Ardèche Aluna Festival”. She was in charge of the 42 exhibitors.

Now, she is currently looking for an end-of-study internship as Partnership Manager and Business Developer in the cultural sector.  Marine can be contacted at [email protected] or https://fr.linkedin.com/in/marine-kuhn-b916a790

 

 

Is Cumulative Impact Assessment and Management (CIAM) a Myth?

 

STUDENT PAPER

By Victor Labrousse

SKEMA Business School

Lille, France

 



ABSTRACT

This paper has been conducted through the course entitled “International Project Contract”, for the Master of Science “Programme and Project Management and Business development” of Skema Business School.

The Purpose of this paper is to discuss the possibility and the options to perform a Cumulative Impact Assessment (CIA), as this is key to project success, especially within the construction industry. The lack of CIA can result either in Project cost increasing, Project delays, or eventually Project failure. Assessing potential Cumulative Impact resulting from the high number of Change Orders this industry requires seems to be a tremendous task, and needs to be done methodologically.

In order to conduct an effective CIA, Project’s stakeholders may consider several options, the most efficient being the Matrix of Interactions, the Loop analysis, and System Dynamics. SD is the best method but it is the hardest to implement, thus for smaller projects, the Loop analysis and the Matrix of Interaction may be sufficient to have an overall overview of the Cumulative Impact.

CIA is far from being a myth. It is rather a complex key success factor that needs to be taken into account when considering doing a construction Project, in the continuously changing environment the world is.

Key words: Contract / Projects / CIA / Change Order / Cumulative Impact / Risks / Productivity

INTRODUCTION

It is highly common, within the construction industry, that Owners of a project requests Change orders, as the projects evolve. Such Change orders are often very useful and have a positive impact on the project. They are paid by the Owner, and formally accepted by the Contractor, by signing off a Change Order Form. As a result, the changes affecting the said project are measurable and logged so that the changes are quantifiable. What if the Owner keeps on requesting Chang Orders? Such a behavior will result in potential loss of time, money, productivity, and altogether, the Cumulative impact will deeply change the project. As a result, a good assessment of the cumulative impact will be a clear success factor on a project life.

Cumulative impacts assessment and management should be a key point of concern in the construction industry. A cumulative impact is an effect resulting from successive actions on a project when added to other existing, or planned ones. It is a real challenge in the construction industry to have these potential cumulative impacts assessed, and mitigated when possible. Before requesting too many change order, an Owner has to assess the potential consequences of it, as for the project and for the Contractor. But when assessing those, he must not forget to take into account the previous nor future change orders he has or will request, if he wants to have a glimpse of the bigger picture, and have a chance to control the ripple effect he is initiating.

There are several questions this paper will try to find the answer to:

1)     Are the consequences of cumulative impact foreseeable?

2)     How can we assess them? What can the Owner or the Contractor do in order to avoid or limit the impact of change orders and their potential cumulative impact?

The answer to those questions is critical to maintain a good high-level assessment of the risks and maintain a good project health. Maybe those impacts are going to be small so that dealing with them would be too painful to be worth it. Maybe we will find a way to make project change order so that there is an overall positive cumulative impact. This paper aims at providing a clear understanding of the objectives and challenges the parties involved in a construction project face, and provide a concrete way of dealing with cumulative impacts.

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


Victor Labrousse

SKEMA Business School
Lille, France

 

 

Victor Labrousse is a MSc student in SKEMA Business School, major in Project and Programme Management & Business Development (PPMBD). He has a strong background mainly in Business development and in Project Management. In 2016, He has worked eight months for Sony Professional Solutions Europe in England as a Process and Project Manager Assistant. Sony PSE is the leading supplier of AV/IT solutions to businesses across a wide variety of sectors. He has project management and business development background. He is currently in his final year and lives in Lille, France. He can be contacted using his personal and school mail address; [email protected] and [email protected].

Linkedin: https://www.linkedin.com/in/victor-labrousse-b75637116/

 

 

What are the Cultural Impacts on a Contract Negotiation?

 

STUDENT PAPER

By Marie Lanvin

SKEMA Business School

Paris, France

 



ABSTRACT

With the globalization, it is often needed to work in international environment, thus to negotiate with people who have different cultural backgrounds. And these differences cannot be ignored, because of their impacts. So, the aim of this paper is to show the cultural influences on the negotiation, and what can be done to improve our way to negotiate. Therefore, the different behaviors that we can adopt during a negotiation were analyzed and compared thanks to the Dominance method. At the end of this study, the suggestion is to do an important pre-work before international negotiations to understand the other culture better and adapt our dialogue. This could be the solution to a better communication and better results in terms of outcomes at the end of the negotiation.

Key words: Culture, backgrounds, contract, impact, negotiation, conflict, understanding, differences, communication

INTRODUCTION

1. Cultural differences have impacts on our lives every day. It is obviously the case in international negotiation too. These differences and the backgrounds of the parties in the negotiation can be a barrier or an asset. But people often don’t have enough or have bad knowledge of cultural differences, and they don’t know how to manage them well. In the negotiation of a contract, we should be aware of those differences to build strong relationships and to have a productive dialogue. Moreover, being aware of these differences means being able to take advantage of the negotiation and eventually to lead it.

1.1  Culture and Contract negotiation:

Hoefstede shew that the culture influences “how people think, communicate and behave”[1]. And Salacuse defines it as “composed of the socially transmitted behavior patterns, attitudes, norms and values of a given community”[2]. So, cultural differences have an impact on how people communicate and on their attitudes when they are with people from other communities.

A common definition of a contract is “a voluntary, deliberate and legally binding agreement between two or more competent parties.”[3] And a negotiation consists in a “bargaining process between two or more parties (each with its own aims) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern”[4]. So, the negotiation of a contract is based on a good communication to be effective and mutual understanding.

1.2  So, the aim of this paper is to ask some questions about the cultural impacts on a project contract. The J.W. Salacuse’s research will help to understand the cultural differences that we can identify in international negotiations. Then we will go further to think about the impacts that they have, to finally prove that a good understanding of these differences offers a significant improvement on contract negotiations.

OPPORTUNITY OF THIS PAPER

To summarize, the objective of this paper is to answer the following questions:

1) What impacts have cultural differences on contract negotiations for projects?

2) How can we improve international contract negotiations?

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


Marie Lanvin

SKEMA Business School
Paris, France




Marie Lanvin
is a MSc student in SKEMA Business School, majoring in Project and Programme Management & Business Development (PPMBD). She did an exchange with the University of Sherbrooke (Canada), and with North Carolina State University, Raleigh (USA). In 2016, she worked for a French SME, as event project manager. In 2017, she assisted a startup CEO to develop his business. She can be contacted at [email protected].

 

 

Hosted Fundraising Event: How to secure your funds

 

STUDENT PAPER

By Christelle Leonetti

SKEMA Business School

Lille, France

 



ABSTRACT

­Nonprofit organizations and non-governmental organizations (NGOs) represent more than 10 million organizations throughout the world and most of them use fundraising to collect money for their programs. However, they do not use the same methods or have the same results. Fundraising can fail and let the organization without fund and with a negative cashflow depending of the method used and the event planned. Therefore, this paper is developed to analyze the different methods used to raise funds using Multi-Attribute Decision making and determine which one is the best and most effective to use to create a fundraising contract. Based on the analysis, only using one method ensures a low rate of success therefore organizations must be creative when creating their fundraising strategy and aimed at organizations as well as individuals.

Key Words: fundraising, event planning, termination, funds, contract, relative weighting

INTRODUCTION

The American Association of Fundraising Professionals’ 2016 “the Fundraising Effectiveness Survey” report states that the amount raised between 2014 and 2015 by 9,922 nonprofit organizations in the United States is $8,628,240,699. How do those organizations raise so much money?

They use online fundraising (Causes, Crowdrise), grants, financial endowment or they use their network to communicate directly with potential donors by organizing events that combine a just cause with a moment of sharing. Those events can be categorized in 3 different types: self-managed events that the organization manages by itself to raise money, one of the most famous being the “Monaco Red Cross Ball” organized yearly since 1948 by the Red Cross. Participatory events that the organization manages but that require the participation of supporters and hosted events where the supporters host the events for you.

Hosted events usually collect less funds that self-managed events since the host is usually a smaller organization so why so many organizations use them to collect funds? What are the benefits of letting someone else hosts your fundraising event? Well, it expands the organization’s network since the participants of the events come from the host network and not directly from the organization one and it is less risky for the organization because it does not take part in the creation of the event therefore there is no direct cost for the organization.

Considering the small impact of those events of their own, nonprofit organizations use partnership programs in order to use hosted events on a regular basis (several events a year). The organization does not manage those events in contrary of the other two categories so how can they make sure that the money collected by the host will be donated to them at the end of the event? And how much? This is where organizations use contracts to clarify the specifications of those events.

This paper will answer two questions from the nonprofit organization point of view:

– What should a “hosted fundraising event” contract contain?

– What happens to the funds collected in case of termination?

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


Christelle Leonetti

SKEMA Business School
Lille, France





Christelle Leonetti
is a French student in the “Grande Ecole” Program at SKEMA Business School in France, majoring in Project and Programme Management & Business Development (Msc). She used to be the treasurer of two humanitarian student associations. She is interested in the work of nonprofit organizations and event planning. She wants to be a project manager in the event industry. She currently lives in Lille, France and can be contacted at [email protected] or https://www.linkedin.com/in/christelle-leonetti/

 

 

Comparison of Contractual Payment Terms and Conditions

 

STUDENT PAPER

By Lore Paganet

SKEMA Business School

Paris, France

 



ABSTRACT

Payments between two parties have always existed, and for many centuries this information has been gathered into contracts. A contract is an agreement between private parties creating mutual obligations enforceable by law. The Terms and Conditions (T&C) are here to explain every level of details in each clause, in order to avoid conflicts between the parties.

This paper is important because we will focus on the payments terms and conditions, a risky clause because this is one of the main source of conflict. There is a huge amount of contract written every day, and they all have this clause included. The matter of this paper is to show how many differentiations we can find about this clause, and which scientific document can help a lawyer to write perfectly the payments clause.

Three scientific documents have been compared, two have been eliminated thanks to the use of Multi-Attribute Decision Making (MADM method). The final most completed document that has been kept is the Engineers’ Joint Contract Document Committee (EJCDC) document.

This paper helps us understand how many information this clause should contain, and may help the owner of an organization to understand how to write the perfect payments terms and conditions without forgetting any details.

Key words: Contract, clause, price, cost, owner/contractor, reimbursement, Engineers’ Joint Contract Document Committee

INTRODUCTION

Nowadays, a conflict can easily arise between two parties, before or after the signature of the contract. A contract is the first document that links the two parties together, so this is the opportunity to add as much details as possible.  The Terms and Conditions (T&C) are written in order to be clear between the Owner and the Contractor but sometimes some elements are missing, and create conflicts.

This topic is based on the payment clause of a recruitment agreement contract from a Sydney-based start-up. The scope of this paper is a specific situation because it’s a comparison between contractual payment term & conditions from an existing contract and a baseline such as the American Institute of Architects (AIA), the Engineers’ Joint Contract Document Committee (EJCDC) document and the International Federation of Consulting Engineers (FIDIC). The comparison will help the reader to understand that some main points can be forgotten in a contract, and it’s important to add a lot of details to avoid future eventual conflicts about payment terms.

  • Problem definition

This paper is important but difficult as well because there are not two similar contracts. The T&C are all the time different from one to another, and especially the payment terms since it depends on what is the work that needs to be done, how it will be delivered, and how much does it cost to be done. It is also an important part of the contract because it includes the reimbursement of the work if it hasn’t been delivered. This paper aims at, first defining the “contractual payment terms and conditions” clause, then to identify this clause in three different documents and analyse them, and see what’s the preferable solution to be sure the clause is perfect from the owner and contractor’s perspective.
Once this analyse done, we will be able to answer the question:

  • How is “contractual payment terms and conditions” defined in three professional documents?
  • What is the best document that will help as a support to perfectly write this clause?

METHODOLOGY

This paper is using the Multi-Attribute Decision Making, also referred as MADM, which is a tool that evaluates several conflicting measures in a decision making. This will help us to understand which is the most favourable solutions between three different documents that will be used as a comparison baseline.

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


Lore Paganet

SKEMA Business School
Paris, France

 


Lore Paganet
is a business school student specialised in Project and Programme Management & Business Development. After a Higher National Diploma (HND) in Hospitality and Catering, she decided to level up her knowledge at SKEMA Business School, one of the Top Ten French Business School. With several previous activities in Human Resources and Contracts Management, she gathered a lot of information about contracts of any type. She is now fully dedicated to her Project Management studies and has just been certificated (AgilePM and Prince2, and more to come) in this field.

She will work as a Transformation Project Manager at AXA Partners in Paris, starting in January 2018, and remain available for any enquiries. Lore can be contacted at [email protected]

 

 

Engineering Consulting – The new golden era?

 

STUDENT PAPER

Lucien Rock

SKEMA Business School

Lille, France

 



ABSTRACT

This paper is about the growing scene of engineering consultancy around the world and all the impacts related to contracts between the client and the consultants. To compare the impact of the different contracts, I have based my paper around the organizations who are creating standardized templates for engineering and ranked them upon determined criterion.

The conclusion clears the fact that no contract is perfect and that these organizations are providing a solid source upon which you can improve it taking care of the more specific clauses of the project studied.

In the case of mechanical engineering, the contracts from FIDIC seem to be the most appropriate ones.

Key words: Liability, Disputes, Delays, Responsibility, Intellectual property, Engineering Consulting

INTRODUCTION

The engineering services market generates today $711bn of revenue, employs 3.9 million people across more than 700 000 companies. This sector is booming regarding the new economic models of companies and their willingness to outsource. They realize that in most cases, it’s more profitable to outsource to specialists than hiring them.

This multiplication of interaction between companies has raised another concerned, the number of disputes.

These disputes are usually about the outputs created by the consultants towards the companies.  In fact, the issues and disputes raised are mainly because of the contract itself more than what the consultant has produced and result in cost escalation, damages, unpaid change orders, etc. The contracts are sometime written by technical people who are not experts in this field so mistakes can easily be done. The main areas of disputes are the liability, the delays, the responsibility and the intellectual property. To get rid of these common and recurrent mistakes, organizations like FIDIC (International Federation of consulting engineers), EJCDC (Engineers Joint Contract Documents Committee), etc. have created standardized contracts. By creating these contract, they aim to become ‘best tested and proven practices’ and to be used among entire industries. A lower chance of a successful claim, a fairness between the parties are the primary advantages of using these templates. As well as creating these templates, these organization are more and more involved in the creation of new standards such as ISO (International Standards Organization) thanks to the worldwide network of practitioner they constitute.

Another fact to point is the concentration of consultants into single companies. Altran is the European leading company in engineering consultancy with a turnover of €2,120bn and 29 106 employees. In the USA, we can point out Fluor with a turnover of $19.04bn and 61 551 employees. This trend isn’t going to slow down because the development of these firms overseas is done through takeover of local companies.

STEP 1: Objective Statement

In this paper, we will identify 2 sources of mechanical engineering consulting contracts and compare them to the standardized ones regarding the keywords stated at the beginning.

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


Lucien Rock

Lille, France

 



Lucien ROCK
is a student from Lille, North of France. He spent most of his young life living in France, from primary school to high school. After graduating with honours, he took the opportunity to join a special engineering school named ITEEM in France. This formation is a great joint venture between the Ecole Centrale de Lille and Skema Business School to offer a unique double competence degree in 5 years. During his studies, he had the amazing opportunity to take an internship in India for 8 months and discover a whole new world.

Now in his last year of study, Lucien specialized in Advanced Mechanics on the engineering side and choose to do at the same time a MSc in Project and Program Management and Business Development at Skema Business School. He will graduate in April 2018 and is looking for new opportunity in a foreign country in the project management and engineering field. Lucien can be contacted at: [email protected].

 

 

What is the challenge for real estate purchasing?

 

STUDENT PAPER

By Clémence Simon

SKEMA Business School

Lille, France

 



ABSTRACT

Nowadays, buying real estate has become a real challenge. Indeed, the contracts become complex and the taxes important. This is why the percentage of profitability drops and young people are less and less attracted by the purchase. This article presents the different aspects concerning the contract and the payment for a property

Key words: Real estate, Purchasing, Investment, Leasing, Property, Warranties

INTRODUCTION

What is better, leasing or purchasing property? It’s an eternal debate and for which there is no right or wrong answer, but we are sure about one point: the decision must be part of a life plan. Indeed, everybody requires a place to live; however the concept of owning propriety is becoming increasingly rare. It’s an essential and complex question that everyone has to think about, especially for generation Y (people born between 1980 and 2000), young people who are starting to save money.

Does becoming a real estate owner still make Generation Y dream? Generation Y also called, “rental generation” is outdated by the concept of ownership. Why own a car or an apartment at the time of Uber and Airbnb? Concepts more and more present in our life that induces us to have nothing more. More, a Nielsen survey found that 62% of Millennials “prefer to live in dense and diverse urban villages where social interaction is within reach.” To be able to afford this lifestyle, Generation Y has no choice but to rent. Other factors can deter the Generation Y from owning a home. They don’t want to maintain a home and take responsibility for selling.

Between 2000 and 2010, buying a house was quickly more interesting than renting it. What is the situation today? The answer is not so simple. And if real-estate prices remain globally high, they are trading!

The most important factor is the cost and profitability of the investment. In each case, there are advantages and disadvantages to both options, and the decision requires lots of analysis and planning. Both contracts are complicated and determine the up-front cost, monthly recurring cost, taxes, warranties and notices. So we are going to analyze them to see what can be profitable or not and what can be an inconvenient or not.

If you decide to purchase a real estate, you need to establish different contracts for the transaction. The contract determines different terms such as title to the property, earnest money deposit, improvements and fixtures included, purchase price and conditions of payment, real-estate taxes, assessments, and adjustments, special conditions and other statements. When you sign a purchase real-estate contract, you have to initial a lot of pages and sign different pages. What is important in these complex contracts? In this article, different terms will be described in order to explain what is relevant.

Objective statements

The objectives of this paper are to answer to the following questions regarding the payment:

  1. What if the transaction cannot be made?
  2. How secure is the payment?

METHODOLOGY

Step 2 → feasible alternatives solution

  1. Identify retraction times and impacts on the cost of the transaction: time for retraction and condition precedent to obtaining a loan
  2. Protect your future real estate by making an inventory and indicate who has to pay the different costs (closing costs, house inventory)
  3. Build your own contract of purchase of your property with the necessary clauses to secure the payment of the transaction

Step 3 → developments of outcomes

  • Identify retraction times and impacts on the cost of the transaction: time for retraction and condition precedent to obtaining a loan

The purchase of real estate is done mainly through personal contributions but also with the contribution of a bank loan. However when a sales contract is signed there are several deadlines to respect. At the first signature, a period of 7 days is available to retract without any necessary reason. A loan is granted in a longer period of time to allow the bank to verify the ability to repay the loan if there is a problem and assess the risk of this problem occurring.

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 paul.gardin[email protected]



About the Author


Clémence Simon

SKEMA Business School
Lille, France

 

 

Clémence Simon was born in 1995 in Lille. She grew up with her 5 brothers and sisters in a familial house in Lambersart next to Lille and went to the high school nearby. She was a motivated and dynamic child. She practiced gymnastic during 13 years, tennis during 10 years, played the piano and was involved in the “Scout de France”. Clémence is a dynamic and spontaneous girl; her main values are respect, dynamism, family and trust.

She loves being part of projects that’s why in 2012, after high school she went to a school named “Iteem”. Iteem is an engineering school of Centrale Lille co-directed by Skema Business School which trains its students in engineering, but also management and entrepreneurship. During her studies Clémence undertook projects such as a humanitarian project in Cambodia, treasurer of an association that participates in sailing races, member of the student’s office…

Clémence likes to travel and discover new cultures. She has had the opportunity to experience many countries but also to live in independence. In 2015, she went on an 8-month internship in Singapore working with a Luxury Cosmetics SME.

Today, Clémence is in the 5th year of study during which she mixes her master’s degree in engineering at Centrale Lille with a Master of Project and Program Management and Business Development at Skema Business School. During school, she also had the opportunity to do in total 15 months of internship. That’s why she had a business culture and knows about the world of business. This last year is a real challenge because in addition to being a complete year, it will culminate in the launch of her professional career. If you want to know more about Clémence Simon, you can contact her at [email protected]

 

 

Clean Water as a Human Right!

Implications for Project Management

 

SECOND EDITION

By David Pells

Managing Editor, PMWJ

Addison, Texas, USA

 



On July 28, 2010, the United Nations General Assembly approved a motion making access to clean water a basic human right.  Although the motion was non binding on member countries, and 41 countries did not vote for the resolution, it was nonetheless significant.  Access to clean water is now considered a human right, along with access to food and a non-violent environment.  So what does this have to do with project management?  With nearly a billion people without access to clean water and nearly 2.5 billion without clean toilets and wastewater treatment, for one thing it means massive investment in water related projects in coming years.

But there are many other considerations as well, for example, the economics, politics and social impact of water-related projects in some parts of the world.  Even in some parts of the Northern Hemisphere, where water is generally more plentiful, there are water shortages – for example, in California where agricultural use of available water is now resulting in potential problems.

At the same time, on a planet that is 80% covered with water, it seems ironic that there are shortages.  The old adage, “water water everywhere, but not a drop to drink” comes to mind.  So what are the issues?

I have been thinking about water off and on since reading the announcement about the UN vote in late July.  It seems that there has been nothing written about this in the project management field, and very little in the press, even though access to clean water is widely recognized as a global social and economic issue.  In some countries, the lack of clean water is already at a crisis level.

I am not an engineer, scientist or expert on water or wastewater topics.  Nevertheless, I have had some experience in this industry.  One of my first jobs as a teenager, summer work after high school and before leaving home for university, I worked for the city engineer in my small home town.  He was responsible for maintaining all city utilities and infrastructure, including roads, lighting, wastewater (sewers) and water system.  I learned to mix chemicals for the water plant, clean and maintain the sewage treatment plant, and lay pipes and fire hydrants in a new residential development.  I have never forgotten those experiences over 40 years ago.

More recently during 1993-1995, I represented two Texas-based water technology companies that were pursuing project opportunities in Russia and the former Soviet Union.  One company was an engineering firm that specialized in the design of water and wastewater treatments plants, and in solutions for those types of projects.  The second company sold equipment for water and wastewater plants, including pumps, valves, piping, etc.  On their behalf, I met with Vodocanal executives in Moscow, Sochi and St. Petersburg, toured big water and sewage plants, discussed projects to build new facilities, and learned a great deal.  I learned that nearly every Russian town and city needed new or better water treatment facilities.  I also learned the hard way, becoming quite ill several times, that water borne diseases occur even in modern cities and hotels.

As I have gotten older, it seems that I drink more water.  And when I am traveling, I have become much more careful to have water with me, whether traveling by auto, air, train or taxi.  I have become more aware of the body’s need for water, both for survival and better health.  Water is a personal need, a very personal topic, not just an industrial, economic or social issue.  It deserves more attention.  Here in North America, and I think in most fully developed countries, water is taken for granted.  It’s considered free or cheap, because it is generally readily available.

This is a huge mistake, in my opinion.  So this month I want to discuss some aspects of the clean water issue that may often be overlooked, or unknown to too many in the project management profession.

Some Issues and Perspectives

Here are some issues that are discussed in more detail below:

  • The Human Rights Aspect
  • Global Demand – Water Projects as a Growth Field for PM
  • Water Projects as a Base Global Industry
  • Water Projects in Economic Development Programmes
  • Water Projects for Emergencies and Natural Disasters
  • Industrial Wastewater Treatment
  • The Supply Chain – Projects in Related Industries
  • Clean Water Technologies – R&D Projects
  • Complexity Issues – The non-technical factors
  • Economics of Water – other uses for water (industry, etc.)
  • The Politics of Water
  • The Ultimate Solution – Water & Energy
  • Drinking Water for Your Project Team
  • The Water Tower – An American Icon

Qualification: this paper is not a fully researched treatise but rather includes my personal observations and opinions.  If I err with facts, I think they will be close enough and the message should be clear.  Water is a huge global topic and we need to take it more seriously.

More…

To read entire paper, click here

 

Editor’s note 1: Although this paper was written more than seven years ago, the topic seems more relevant than ever.  All of the issues addressed still apply; if anything, the problems are more acute as climate change has led to more drought-stricken regions around the world.  And here in the United States, the recently headlined lead-tainted water system in Flint, Michigan has been a disaster, with serious local health, economic, legal and political repercussions.  The project management profession can play a unique role in solving these and other global problems.  Hopefully this paper will stimulate more thinking and action in that regard.

Editor’s note 2: 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 published in the December 2010 edition of PM World Today.  It is republished here with the author’s permission.



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

 

 

Find the Fire

BOOK REVIEW

Book Title:    Find the Fire: Ignite Your Inspiration and Make Work Exciting Again
Author:  Scott Mautz
Publisher:  American Management Association (AMACOM)
List Price:   $24.95
Format:  Hard cover, 240 pages
Publication Date:  Oct 2017        
ISBN: 978-0-8144-3822-0
Reviewer: Binny Malik
Review Date:   January 2018



Introduction

Each one of us at some point or the other felt the inspiration that once drove us has been sapped out of us and more often than not we tend to blame our environment, bad boss, difficult team, or just the nature of work itself etc. for this lack of enthusiasm. Find The Fire is a good read that tries best to answer why we lose inspiration and how exactly we can reconnect with ourselves. The Author tries to give a new perspective to everything that saps our energy and that at some level we know has always been out there by listing it all out & loud. Even better than just identifying the problem as Anti Muses, the narration provides fantastic solutions to the problems as Anti Dotes. As a reader, I feel that you come out being little bit more mindful on how to keep your fire ignited.

Overview of Book’s Structure

The book starts with the understanding the distinction between motivations and inspirations followed by list of 9 inspiration killers that I believe each one of us recognize at some level – a) Fear; b)Settling & Boredom; c) Inundation; d) Loss of Control; e) Dwindling Self Belief; f) Disconnectedness; g) Dearth of Creating; h) Insignificance; and i) Lack of Evocation. Each of these are organized into separate chapters with in depth explanation

The humor seems to be misplaced at certian times and flow of the content does get slow at places. The book seems to be written in a manner as if the author is ready to use the exact script (including the humor) word-to-word in a motivational speach somewhere some place. This is both good and bad but personally, it does take a bit of imagination as if some one is speaking to you directly and you are taking the que for some introspection

Highlights

The book is organized into 11 chapters with the first and last being the introduction and conclusion respectively. Chapter 2 through 10 detail out each of the anti-muses and explains why these are anti muses and how we can fight them. The author seems to have put much thought in deliberating each of these topics and has provided lot of depth on how these anti-musers matter and slow us down. There is lot of fodder for introspection and plenty of take aways from each of the chapters depending on how many of these anti-musers apply to you respectively.

More…

To read entire Book Review, click here

 



About the Reviewer


Binny Malik

North Texas, USA




Binny Malik
has work experience of about eight years, six of which have been in deployments and project delivery. She is currently working as an IT Release Manager at MoneyGram International handing project delivery of various software projects across organizational business spectrum.

 

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]

 

 

Improving Executive Sponsorship of Projects

BOOK REVIEW

Book Title:  Improving Executive Sponsorship of Projects: A Holistic Approach
Author:  Dawne E. Chandler, Payson Hall
Publisher:  Business Expert Press
List Price:   $34.95
Format:  Paperback, 157 Pages
Publication Date:   2017    
ISBN: 978-1-63157-411-5
Reviewer:     Mats Malmström
Review Date: December 2017

 



Introduction

This book highlights the importance of the executive project sponsorship and its crucial function in the organization for ensuring project success.

Improving Executive Sponsorship of projects is a comprehensive guide equipping the reader with insights about the benefits and the challenges of project sponsorship together with a practical approach of how to address and successfully build an effective executive sponsorship practice in an organization over time.

Overview of Book’s Structure

The book is divided into nine chapters.

Chapter 1 – Approach to Improving Executive Project Sponsorship
Chapter 2 – Executive Sponsorship Matters
Chapter 3 – Cultural Influences on Executive Sponsorship
Chapter 4 – Importance of Project management standards
Chapter 5 – Desirable Executive Sponsor Characteristics
Chapter 6 – Sponsor Readiness
Chapter 7 – Roadmap to Organizational Readiness
Chapter 8 – A plan to Enhance Executive Sponsorship
Chapter 9 – Summary

The authors take you through a learning journey built on research and their own experience. Each chapter discuss each topic thoroughly and highlights key areas to be addressed. The reader will find useful questionnaires, discussion points, templates and processes to assess their current situations and to devise action plans. At the end of each chapter the authors provide some considerations from the PMO and project manager perspectives.

Highlights

A framework for assessing the current and desired characteristic for executive sponsorship built on Global Alliance for Project and Performance Standard (GAPPS) is presented. It focuses on three key traits of executive sponsorship: Taking accountability for the project, supporting the project manager and supporting the project.

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About the Reviewer


Mats Malmström

North Texas, USA

 




Mats Malmström
is a multidisciplinary project management advocate with more than 25 years leading and sponsoring international high-profile projects and programs within product development and market introduction, business development, organizational development and sales in the information and communication technology sector. Today, Mats Malmström is the head of consulting and learning services for North America and Latin America at LYM Innovation Consulting, coaching and training companies in many verticals to boost their project business performance. Mats holds an executive MBA in international business from Uppsala University in Sweden and is a member of the PMI chapters in Dallas and in Panama. Mats 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]

 

 

Leading and Motivating Global Teams

BOOK REVIEW

Book Title:    Leading and Motivating Global Teams: Integrating Offshore Centers and Head Office
Author:  Vimal Kumar Khanna
Publisher:  CRC Press, Taylor & Francis Group
List Price:   $79.95
Format:  Hard cover, 186 pages
Publication Date:   May 2017      
ISBN: 978-1-4987-8474-0
Reviewer:     Masood Said, PMP
Review Date:   January 2018

 



Introduction

This book is about managing off-shore offices. This has become quite common in managing projects in various domains especially Information Technology.  Many companies in the developed world have established off-shore offices in countries such as India, Pakistan, Bangladesh, Sri Lanka.  Many of these offshore offices are used for carrying out work related to software development.

This book discusses, in practical details, issues faced in managing such offices with special reference to India.  It discusses the relationship between the Head Office and the Offshore Offices and the issues faced. This book would be of interest to all companies who have offshore offices in other countries as it will give them suggested solutions for common issues.

Overview of Book’s Structure

The book consists of 12 chapters which are spread over 166 pages. Abbreviations and Acronyms and Index are at the end of book on pages 167-169.

There are 8 case studies included in the book.  These case studies are used to explain issues and problems in managing relationship between Head Office and Offshore Offices. This method of using case studies is indeed a good way of creating an understanding of various issues and their solutions.

The book is written in a very simple manner with explanations and case studies that can be understood easily.  Issues and problems are described in a very simple and practical manner, suggesting solutions that can be understood easily.

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About the Reviewer


Masood Said, PMP

Lahore, Pakistan


 

Engr. Masood Said, PMP, PMI-RMP, PMI-ACP, BS.C (Mech. Engr.; MS-IT; EMBA-HR Mngt.) is a Mechanical Engineer with over 35 years of Project Management Experience. He has worked in Pakistan and the Middle East on various Oil and Gas projects. He has been a member of PMI since 2002.  Presently he is a trainer for PMP®; PMI-RMP®; PMI-ACP® certification courses. He also advises companies on optimization and improvement in processes.  Based in Lahore, Pakistan, he also travels to Dallas, TX frequently and is a member of PMI Dallas Chapter.  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]

 

 

 

Off the Beaten Path

BOOK REVIEW

Book Title: Off the Beaten Path: A Project Management Field Guide
Author: Nicholas James Errico
Publisher:  CreateSpace Independent Publishing Platform
List Price:   $22.95
Format:  Paperback
Publication Date:   February 2017
ISBN-13: 9781539992530
ISBN-10: 1539992535
Reviewer: Marta B. Santos, PhD
Review Date: December 2017

 



Introduction

“Off the Beaten Path: A Project Management Field Guide” by Nicholas James Errico, is a book that draws you into the world of project managers. Project management is a beaten path by its nature and numbers. The realm of aligning customer’s needs, team dynamics and conflicting business interests is a challenging terrain which often brings no public recognition. It demands an unwavering moral character and the ability to gracefully recognize the need to improve and change. Errico, who successfully trod the path for almost 20 years, has incredible insights from his experiences, tools/methods used, and attitudes embraced. His concise and to-the-point book could set you on the course of consistent and outstanding project results.

Overview of Book’s Structure

The author shares interesting details about himself while presenting his reasons for writing the book. In his opinion, the overall state of the Project Management business is of concern. He challenges you to rate the profession’s success over the last 20 years and emphasizes the importance of adhering to a methodology. Whether it be the PMBOK or other valid method.

As you read the first few pages, if you still believe that Project Management is the role you want to enter or remain in, you are invited into self-analysis. Truly understanding who you are, your capabilities, aspirations, expectations, and limitations is key to success. Being able to self-manage and endure a “thankless job” are pre-requisites to getting started with typical project manager’s tasks. Learning to use a tool is as important as not using the right tool for the wrong purpose or using a great tool that brings no value to the settings.

Errico takes you through the often overlooked yet essential aspects of contract, WBS, and schedule. He shows how to create and track a Schedule Model that will work for you and your customer. Managing what you have created is the next step. It will require experience, wisdom or a sixth sense, and even learning how to “play poker” with your customer. In essence, you gain knowledge on how to awaken your senses to cues and how to embrace the moment that will facilitate future exchanges between you and your clients. It takes being human and walking on customer’ shoes.

The two subsequent book sections, “Food for Thought” and “Metrics and Reward Systems”, contain real-life examples and suggestions on proven success strategies for project managers and organizations. The author bids his readers farewell as he urges project managers to love the profession or move on to something else.

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About the Reviewer


Marta Santos, PhD, CAPM, LSSGB

Texas, USA




Marta B. Santos
currently serves on a global Cybersecurity Transformation Program as a Project Coordinator – IT Security. Marta previously served on a global IT Infrastructure Refresh Project after transitioning from a productive career in the Life Sciences as a Research Scientist and author on major scientific journals. She is looking forward to growing in and contributing to the Project Management profession. This is her first book review for the PM World Journal. Naturalized American from Brazil, Marta currently lives in the Dallas area.  Email address: www.linkedin.com/in/martabsantos  

 

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].

 

 

Experience of Handling a Team

 

COMMENTARY

By Anil Seth

Gurgaon, India

 



I have no special talents. I am only passionately curious.

~Albert Einstein

Ever since I graduated from university and started my profession career there was an irresistible desire to work for a multinational company like Fluor Corp. The desire was to learn and master the techniques of Project Management being used in Fluor Corp to resolve complex situations.

When I joined Fluor Corp in 2014, I realized that International Project Management gives a wholesome diversified perspective to managing and adds another dimension to resolution techniques. It does not take long to settle and resolve the problem if you have dealt with complex scenarios in the past; however the situation emerging by virtue of problems requires “experience of handling”. This “experience of handling” can be ours or borrowed from peers, mentors, friends or superiors.

I vividly remember one of my assignments where my Project Manager asked me to look into a peculiar scenario wherein the problem was made complex as both the teams (design and fabrication executor) were seeing a new process and hence each one was doubtful on the resolution and approach. To add to it the teams had diversity in culture and execution. I believe every problem has hidden factors/solutions, i.e. there is a synergy between those factors that drives you, once you have found the right direction, your unique excellence shines through and the stage is set for developing solutions and thereafter continuous development. This experience taught me a lesson …. any problem has only three basic steps for recovery and resolution (and how hard we try, we cannot add any other step to this),these are

  1. Identification
  2. Rectification
  3. Modification of Rectification to avoid recurrence in future

The key is to exploit and use synergy to settle the problem on two fronts:

1)     By emotionally engaging the team.

2)     By technically engaging the team. *

*2) to always be successor of 1).

If this sequence is reversed the result is extremely unfavorable. Why? …Because first by engaging the team emotionally, we create “Synergy Aura” to break diversity. This is a strong tool and hence requires penetration efforts at large in the team.

Therefore the first rule is to know your team. Here analyzing the team through principles of SWOT(1) is required. Once the SWOT composition of team is visible, the technical challenges or ASPECT(2)  can be assigned to the right worker for timely solution(s) which in fact is the Step 2 of three basic steps.

The team will always have an arrogant basic nature, i.e. the team will provide multiple solutions. Therefore the task of the leader is to select the direction which favors Step 3 and guides the team utilizing the theory “Ascent with modifications”.

The case study which was published earlier is for those who prefer adventures and likes to nose dive into exploring the complex situation through lucid dreaming.

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About the Author


Anil Seth

Gurgaon, India

 

 


Mr. Anil Seth is working as Project Manager in Fluor’s Indian office at Gurgaon. Fluor Daniel India Private Limited (Fluor India) provides a full range of engineering, design, procurement, and construction management services to Indian and overseas clients. Fluor India is an established quality provider of engineering, procurement, construction management (EPC) and project management services for Fluor’s energy and chemicals, power, mining, and industrial projects, and is a key support office for Fluor facilities located in North America, Africa, the Middle East, Europe, and Asia Pacific

Earlier to Fluor, was in Larsen & Toubro Ltd. at Faridabad, India and managing the Project Engineering Manager Portfolio for hydrocarbon projects. Before joining Larsen & Toubro Engineering and construction division he has worked for Indian Petrochemicals Corporation Limited. He holds B.E. degree with Honors in CHEMICAL Engineering from Panjab University Chandigarh India and has also done Diploma in Environmental Management. He is certified for Harvard Manage Mentor and specializes in Building High Performance cross functional Task Force as well as Converting Breakeven Projects to Profitable scenario. He can be reached at [email protected] or [email protected]

To see other works by Anil Seth, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/mr-anil-seth/

 

 

Look to 2018: Trends in Project Management

 

By Yu Yanjuan, Journalist

Project Management Review Magazine

China

 



Editor’s note: This article was originally published in Project Management Review in China in January 2018. “Project Management Review” Magazine is sponsored by State Grid Yingda Media Investment Group. The magazine provides an all-dimensional multi-perspective introduction to latest domestic and international project management research advances and application cases. Main columns: Cover Articles, Top Interview, Foresight, Chief Viewpoint, International Perspective, Special Research, Career Pulse, PM+, etc. For more information, please visit: http://www.pmreview.com.cn/  or contact us at [email protected]

Stacy Goff: past President of IPMA-USA / 2015 IPMA Honorary Fellow / ProjectExperts CEO / Speaker / Author / Consultant 曾任IPMA美国分会主席、IPMA荣誉会员、CEO、作者、演讲者

Chinese way of managing projects. In December 2014, a monumental IPMA Research event, in Tianjin, covered a range of interesting topics that asserted the following: China has five major literary foundations, going back over 2,000 years, for a Chinese way of managing projects, that, while including Western approaches, is rich with more advanced ways of integrating China’s strengths. This is potentially, greater than a trend!

More focus on application rather than certification only. In too many countries, the majority of training in project management for the last 20 years has focused on exam preparation. Because the half-life of learning-not-applied is cited as 2-6 weeks, most of this has little performance improvement in projects. Knowledge alone is inadequate for project performance. Skill (applied knowledge) and mentored application (experience, with coaching), resulting in true competence, is the performance advantage for those who use their learning funding wisely. Smart organizations understand this.

Emphasis on soft skills. While project and program processes (and methods, a subset) are important, their effective delivery depends on the “soft side”. Leadership, interpersonal skills, and team-building have much more to do with project success and business success with projects than all processes and methods. And the smartest organizations not only understand this, but it is their competitive advantage, as they use projects and programs as their change agents to deliver their strategic plans.

Reinhard Wagner: IPMA 2018 Chairman of the Council IPMA2018年主席

Change. The world is changing rapidly, which increases the pressure on organizations to change. Change is performed through projects and programs. The management of a change project means to organise change activities, plan them in regards of time, cost and resources and monitor and control the success of its implementation. Change management activities make sure that the people actually understand the reason for change and what’s in for them, to overcome potential resistance to change through collaboration, communication and coordination between all stakeholders involved.

Agile. A second key trend is the need for agile management, which does not mean a new methodology, but a mindset, which means changing the way of thinking and acting. The governance framework allows the project teams to be more flexible and adaptive to the context of their activities.

Mark Dickson: Chairman of PMI board of Directors PMI 2017年度董事会主席

Project management trends depend to some extent on the industry.

Rise of mega projects. In the infrastructure or construction industries the most significant trend has been the rise of the mega project. Mega projects require more sophisticated project control systems and broader management and leadership skills from the project managers. Project managers can no longer rely on their specialist technical skills and need to be able to understand and communicate across disciplines and even industries and lead large teams.

Rise of agile methodologies. In the information systems and particularly in the software industry the most significant trend has been the rise of agile methodologies.

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Revisit of Reference Class Forecasting (RCF)

Estimating Costs of Infrastructure Projects

 

ADVISORY ARTICLE

By Dr. Clifford Gray

Oregon, USA

 



Executive Summary

The majority of infrastructure projects funded by taxpayer dollars generally result in cost and schedule overruns.  Managers should revisit reference class forecasting (RCF) to focus on how its use improves forecast accuracy.  Key managerial actions supporting use of RCF are suggested.   Will your organization accept the challenge of reducing overruns?

Introduction

The Boston Consulting Group estimates that $35 trillion to $40 trillion will be required by 2030 to satisfy the growing global need for infrastructure development. BCG also estimates that, at best, worldwide governments will be able to fund almost half the requirement, leaving a shortfall as large as $20 trillion to $25 trillion alone.1 The US alone will need 5.4 trillion to improve infrastructure of roads, rail, water, and electricity by 2030.2   Governments will fund most of these projects.   Given the magnitude of the numbers and their impact on governments and society, the historical problem of horrendous over spending needs to be addressed and changed. Taxpayers deserve better.

Unfortunately past cost overruns in megaprojects have resulted in scandalous errors with projects finishing significantly higher than original estimated budgets.  The literature abounds with examples. In general these studies agree that nine out of ten projects exceeded budget.  “Overruns of 50% are common; cost overruns over 50% are not uncommon.” 3   A few famous cost overruns are listed here: (1 ibid)

Lake Placid Winter Olympics                                 550 %
Boston Big-Dig Tunnel                                          220 %
Denver Airport                                                      200 %
Minneapolis Light Rail                                           190 %
Channel Tunnel                                                      80 %
Bangkok Metro line                                                 70 %                          

The cost overrun problem is very much alive today.  Why are original cost estimates so far from actual costs?  What are the causes of such large estimating errors? What can be done to make cost estimates more realistic?  Could rigorous use of reference class forecasting (RCF) and management changes reduce those errors and save billions of taxpayers’ money?

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About the Author


Dr. Clifford Gray

Oregon, USA

 

 


Cliff Gray
, emeritus professor from Oregon State University, has long been a project management advocate.  Cliff taught student and executive classes on all aspects of project management.  He has been active in the PMI organization for decades; he was one of two founders of the Portland, Oregon chapter.   He has published numerous research and applied management papers. Cliff has published three project management texts.  The latest book is, Project Management:  The Managerial Process, 7th Edition, coauthored with Erik Larson of Oregon State University and is printed in five languages.  The text presents a careful balance of the technical processes and the socio-cultural environment in which project managers operate.

Cliff can be contacted at [email protected].

 

 

Why culture really matters

The hidden perils of acculturation

 

Advances in Project Management

SERIES ARTICLE

By Prof Darren Dalcher

Director, National Centre for Project Management

University of Hertfordshire

United Kingdom

 



According to the Merriam Webster Dictionary, acculturation is defined as the cultural modification of an individual, group, or people by adapting to or borrowing traits from another culture. The phenomenon refers to the cultural change that stems from intentional blending between cultures, which aims to alter a pre-existing perspective, approach or way of thinking and replace it with a preferred, and more highly valued alternative response pattern.

A ‘giant’ new kid on the block

The 1984 breakup of AT&T in the US, resulted in the creation of seven independent telecoms companies that were formed from the original twenty-two AT&T controlled members of the Bell system. Pacific Bell, controlled by the holding group, Pacific Telesis Group, was considered by many to be the weakest of the emerging new organisations.

“Of all the Bell regional holding companies, Pacific Telephone holds the most risk for investors. The company’s record of poor earnings and its long-running feud with the California Public Utilities Commission make it a risky investment at best.” New York Times, 1985

Finding itself within the new and fiercely competitive Californian telecommunications marketplace, Bell Pacific had to reform itself into a savvy and successful organisation, much removed from its Bell origins. Bell Pacific launched aggressive marketing campaigns to capture a significant share of the burgeoning market. However, the company quickly found itself enmeshed in controversy for selling unneeded telephone services to non-English speaking customers who did not understand what they were buying. As tales of the dubious sales tactics of the company became public knowledge, morale within the organisation plummeted and its reputation, increasingly on par with that of a dubious used car dealership, also took a hit (Kirp, 1989).

Bell Pacific decided to turn its attention to transforming the organisation into a modern and efficient conglomerate. Modernising the company would require the shaking up of its massive workforce of 62,000 workers and drastically reshuffling the rigidly hierarchical structure, described as a steep pyramid with 14 very precisely delineated levels.

In search of a new culture

More crucially, management also targeted the total transformation of the culture within the organisation. They were worried that Pacific Bell did not have the right culture and competitive attitude and concerned that employees were not sufficiently entrepreneurial for the corporation to be able to succeed in its new environment.

Looking for direction, they turned to a well-known, local Californian recluse and organisational development consultant, Charles Krone. Years earlier, Krone made his fame as an internal specialist within the Proctor & Gamble soap division, for which he set up a liquid detergent plant in Lima, Ohio, that outperformed every other soap plant in the company (Rose, 1990). His counterpart, Herb Stokes, who had since become a corporate consultant and rancher in Abilene, Texas — led a similarly successful effort at a P&G paper products plant he organised in Albany, Georgia. Krone’s methodology was based on a mélange of systems theory, socio-tech thinking, sufi mysticism and the writing of 20th Century Armenian Mystic George I. Gurdieff who believed that most humans spent their days in ‘waking sleep’ and that is only by shedding ingrained habits of thinking that individuals could liberate their inner potential.

Krone’s work was supposed to teach people to think more precisely, but it was jargon-laden and off-putting (Rose, 1990). Pacific Bell contracted with two associates of Charles Krone for $40 million worth of leadership development and personal-growth training (Kirp, 1989), to acculturate the workforce and embed the new culture. Some reports suggest that the full figure was closer to $147 million…

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Editor’s note: The PMWJ Advances in Project Management series includes articles by authors of program and project management books published by Gower and other publishers in the Routledge family.  Each month an introduction to the current article is provided by series editor Prof Darren Dalcher, who is also the editor of the Gower/Routledge Advances in Project Management series of books on new and emerging concepts in PM.  Prof Dalcher’s article is an introduction to the invited paper this month in the PMWJ. 



About the Author


Darren Dalcher, PhD

Series Editor
Director, National Centre for Project Management
University of Hertfordshire, UK

 

 

Darren Dalcher, Ph.D. HonFAPM, FRSA, FBCS, CITP, FCMI, SMIEEE, SFHEA is Professor of Project Management at the University of Hertfordshire, and founder and Director of the National Centre for Project Management (NCPM) in the UK.  He has been named by the Association for Project Management (APM) as one of the top 10 “movers and shapers” in project management in 2008 and was voted Project Magazine’s “Academic of the Year” for his contribution in “integrating and weaving academic work with practice”. In October 2011 he was awarded a prestigious lifetime Honorary Fellowship from the Association for Project Management for outstanding contribution to the discipline of project management. Following industrial and consultancy experience in managing IT projects, Professor Dalcher gained his PhD in Software Engineering from King’s College, University of London.

Professor Dalcher has delivered lectures and courses in many leading institutions worldwide, and has won multiple awards and prizes. He has written over 200 papers and book chapters on project management and software engineering and published over 30 books. He is Editor-in-Chief of the Journal of Software: Evolution and Process published by John Wiley. He is the editor of the book series, Advances in Project Management, published by Routledge and of the companion series, Fundamentals of Project Management. Heavily involved in a variety of research projects and subjects, Professor Dalcher has built a reputation as leader and innovator in the areas of practice-based education and reflection in project management. He works with many major industrial and commercial organisations and government bodies in the UK and beyond.

Darren is an Honorary Fellow of the APM, a Chartered Fellow of the British Computer Society, a Fellow of the Chartered Management Institute, and the Royal Society of Arts, a Senior Member of the Institute for Electrical and Electronics Engineers, a Senior Fellow of the Higher Education Academy and a Member of the Project Management Institute (PMI), the Academy of Management, and the British Academy of Management. He is a Chartered IT Practitioner. He is a Member of the PMI Advisory Board responsible for the prestigious David I. Cleland project management award and of the APM Professional Development Board.  Prof Dalcher is an academic advisor for the PM World Journal.  He can be contacted at [email protected].

To see other works by Prof Darren Dalcher, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/darren-dalcher/.