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Finland Project Management Roundup for February 2019

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

 

REPORT

By Dr Jouko Vaskimo

International Correspondent & Senior Contributing Editor

Espoo, Finland

 


INTRODUCTION

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

PROJECT MANAGEMENT ASSOCIATION FINLAND

Project Management Association Finland (PMAF), Projektiyhdistys ry in Finnish, is a not-for-profit organization, and the International Project Management Association (IPMA) Member Association (MA) in Finland. Founded in 1978, PMAF promotes the interaction, project-oriented thinking, and exchange and development of practical and theoretical knowledge among project management professionals with 4000 individual and over 600 organizational members.

PMAF promotes the development and dissemination of project and project management knowledge. PMAF members are able to enjoy information sharing, workgroups, development projects, project management forums, conferences and certification services PMAF provides. PMAF organizes two annual conferences: Project Days (Projektipäivät in Finnish) in early November, and 3PMO in early June. Please navigate to www.pry.fi/en, https://www.oppia.fi/events/3pmo/?lang=en and www.projektipaivat.fi for further information on PMAF and its main events.

PMI FINLAND CHAPTER

PMI Finland Chapter is a not-for-profit organization providing project practitioners in Finland continuous learning, networking and community support. The Chapter was founded in 2005. Today, with more than 400 members, the chapter is increasingly recognized as place where its members can enhance their project management and leadership skills, as well as network with other project management professionals.

PMI Finland Chapter hosts a number of events such as Breakfast Round Tables, regular meetings taking place once a month in Helsinki and occasionally also in other locations. The chapter members have the opportunity to attend events for free or with a discount and the chapter sends its members a regular newsletter with localized content on project management. Additionally, the Chapter supports its members in their professional development and training.

PMI Chapter Finland organizes an annual conference in the spring. In 2019 the conference takes place on May 23rd, with an overarching theme “Inspire”. Please navigate to www.pmifinland.org and www.conference.pmifinland.org for further information on the PMI Finland Chapter and its main events.

OLKILUOTO 3

The 1 600 MW Olkiluoto 3 nuclear power plant, originally contracted to be built by consortium comprising Areva and Siemens for Teollisuuden Voima (TVO) at Olkiluoto, Finland, is expected to be connected to the Finnish national power grid in October 2019, and to commence commercial power generation in January 2020. The previous plan was for the unit to start commercial operations in September 2019, however, the unexpected challenges encountered during the final testing procedures forced the commissioning to be postponed up until January 2020.

The delivery of Olkiluoto 3 power plant has been subject to a substantial number of challenges. In March 2018 an agreement was reached between TVO and Areva regarding the overruns in project budget and time schedule. According to TVO, Areva has agreed to compensate 450 M€ assuming the power plant is fully operational by the end of 2019. If the plant is not fully operational at that time, Areva will compensate a further 400 M€. As part of the agreement, both contractual parties agreed to dispend any further judicial acts.

Once completed, Olkiluoto 3 will be the largest nuclear power plant in the world. TVO has been understandably disappointed about the fact that the plant is almost 200 % over original budget and more than 10 years behind the original time schedule.

The contract for building the Olkiluoto 3 power plant was signed in 2003 for 3 000 M€, and construction began in 2005, targeting completion in June 2009. Due to numerous challenges during the planning and construction phases, the target date has been pushed forward several times, finally to January 2020 – nearly eleven years in total. The delays have pushed the total cost up to 8 500 M€.

While the Olkiluoto 3 plant is nearing commercial operation, the Finnish Council of State has approved the extension of Olkiluoto 1 and Olkiluoto 2 power plant operation until 2038. Olkiluoto 1 and 2 are each rated at 900 MW electrical power, and annually produce a combined 15 TWh of electrical power to the Finnish power grid. This is approximately 23 % of electrical power annually produced, and approximately 18 % of electrical power annually consumed in Finland.

Olkiluoto 3 power plant at left, and original plants 1 and 2 at right. (photo courtesy TVO)

 

HANHIKIVI 1

The start of the construction works of the 1 200 MW Hanhikivi 1 nuclear power plant, contracted to be built by Rosatom for Fennovoima at Pyhäjoki, is still waiting for the main nuclear power station building permit. According to Fennovoima, the completion of the Hanhikivi 1 power unit has been delayed by four years – from 2024 up until 2028. This estimate is based on information from the Russian power plant supplier Raos Project, which is part of RosatomSäteilyturvakeskus (STUK), the Radiation and Nuclear Safety Authority in Finland, announced earlier the building permit will be delayed as Fennovoima has not delivered the documentation necessary for the building permit to be appropriately addressed. Further to this, STUK has announced that the safety culture of the Russian plant supplier Raos Project and main contractor Titan 2 is not at the appropriate level. STUK has also instructed for Fennovoima to take a stronger position towards Rosatom when demanding the safety documents required for the main building permit.

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How to cite this report: Vaskimo, J. (2019). Finland Project Management Roundup for February 2019, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Vaskimo-Finland-Project-Management-Roundup-report.pdf

 



About the Author


Dr Jouko Vaskimo

Espoo, Finland

 

 

 

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

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

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

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

 

 

Change Management in Large and Complex Civil Infrastructure Projects

District of Columbia Clean Rivers Project

 

FEATURED PAPER

By Stephen D. Lisse

DCCR Project Commercial Manager
McKissack and McKissack, Inc.

Virginia, USA

 



Abstract

Change management is essential for any organization designing and constructing complex multi-million dollar civil infrastructure projects. The District of Columbia Clean Rivers Project change management plan uses the Primavera Contract Management Version 14 (CM14) system to identify, track, and manage Design-Build and Construction contract changes. This process starts at the early design stage and continues through construction and system startup on a divisional contract basis. This paper describes the step by step approach used in the DC Clean Rivers Project to manage changes at different stages of the project (design and construction/startup) on multiple contracts delivered by either the Design-Build or Design-Bid-Build approach. It also describes how trend analysis is used for updating the cost to completion.

Keywords:  change management, change order, work change directive, contingency, trend analysis, minor change.

Introduction

This paper describes the approach to change management for a large and complex civil infrastructure program, namely the District of Columbia Clean Rivers (DCCR) Project.  It describes the scope and objectives of the change management effort, the methodologies and tools used throughout execution of the change management plan.

The key aspects of the project change management plan include:

  • Change Management Approach,
  • Change Log Updating and Management, and
  • Program Change Analysis of Cost and Schedule Impacts.

For this study, the definition of change is taken from Page 229 of Total Cost Management Framework (2012), “Changes are alterations or variations to the scope of work and/or any other approved or baseline project control plan (e.g., schedule, budget, resource plans, etc.).”

Background

The DCCR Project is comprised of a system of tunnels for the Anacostia River, Rock Creek, Piney Branch and the Potomac River that will capture combined sewer flows for treatment at Blue Plains. About one-third of the district sewer system is a combined system and annual discharges into local waterway are estimated at 2 billion gallons. The Anacostia River receives 1.3 billion gallons, the Potomac River receives 640 million gal­lons and Rock Creek 50 million gallons of overflow each year.  The schedule for completing the Project is included in a Federal Court Consent Decree between the United States, the District Government and DC Water.

The Anacostia River Projects (ARP) include 12.8 miles (20.7 km) of deep tunnels with approximately 16 shafts, several pumping stations, and several river crossings. The Anacostia River Projects are broken into four main tunneling contracts. Geographically from south to north, these are the Blue Plains Tunnel (BPT), the Anacostia River Tunnel (ART), the Northeast Boundary Tunnel (NEBT), and the First Street Tunnel (FST).

Implementation of the ARP is divided into two phases.  Phase 1 of the Program includes the BPT, ART, and several diversion structures and is required to be completed by March 2018. Phase 2 of the Program, consisting of the NEBT and FST, along with the Potomac River and Rock Creek projects, must be completed by March 2025.

Project Delivery Method

DC Water regulations allow DCCR contracts to be procured by either using the traditional Design-Bid-Build (DBB) or the Design-Build (DB) with early contractor involvement (ECI). In December 2013, a hybrid delivery method that combines the traditional DBB approach and DB with ECI was added to the mix. Having these different project delivery methods available allows flexibility in project management requirements.

The twenty contract divisions representing the Anacostia River, Rock Creek and Potomac River Projects applicable to the DCCR change management approach are listed in Table 1.

More…

To read entire paper, click here

 

How to cite this paper: Lisse, S. D. (2019). Change Management in Large and Complex Civil Infrastructure Projects:  District of Columbia Clean Rivers Project; PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Lisse-Change-Management-in-Large-Complex-Civil-Infrastructure-Projects.pdf

 



About the Author


Stephen D. Lisse

Virginia, USA

 

 

 

 

Stephen D. Lisse, P.E. is the DCCR Commercial Manager at McKissack and McKissack, Inc. and a PhD Student in the Industrial & Systems Engineering Department at Virginia Polytechnic Institute and State University. The author enlisted in the US Navy in 1968 and was selected for the Navy Enlisted Scientific Education Program where he was awarded a BSME with Highest Distinction at Purdue University. He was designated a Surface Warfare Officer onboard USS MIDWAY CVA-41 and selected for lateral transfer to the Civil Engineer Corps. He had various public works and contracting assignments and also a tour as the Mobile Utilities Support Equipment Director. He returned to Purdue University under the Naval Postgraduate Education Program where he was designated a Purdue Fellow and received his MSME. Prior to retirement in 1988, he was a Special Assistant to the Navy Undersecretary for Safety and Survivability and implemented the Non Developmental Item process. He subsequently has over thirty years program/project management experience on large and complex integrated projects valued up to $6 billion. The author can be contacted at [email protected].

To learn more about the DC Clean Rivers Project, click here.

 

 

Income as Incentive

An Examination of Money as a Motivator Among Top Tier Employees

 

FEATURED PAPER

By Steve Ford

Colorado, USA

 



Abstract

The question of how managers can utilize monetary motivational methods to effectively inspire top-tier employees ($75,000/yr or greater) is examined based upon a literature review of the body of knowledge. The literature suggests that motivation by compensation can be effective for low-interest workers but is relatively ineffective for top-tier employees. Rather, the consensus is that monetary compensation can only be effective if narrowly tailored to empower employees to satisfy their higher needs. Thus, by enabling their top-tier workers to reach their overarching life goals, managers can effectively motivate them, resulting in greater levels of organizational success with lower employee turnover.

Introduction

Motivating top-tier employees is a complicated prospect. Educated, highly skilled employees and managers have historically presented conflicting research data versus lower skilled employees regarding monetary compensation and motivation. This problem of effectively utilizing monetary compensation to motivate top-tier employees is the focus of this work. Top tier employees are defined as earning more than $75,000 in salary. The purpose of this paper is to utilize recent research to demonstrate that compensation packages can, under certain circumstances, be utilized to motivate top-tier employees. The body of knowledge surrounding monetary incentivization, in general, is extensive and well-established. Scientific research of motivation theory in the early 1900s led to several breakthroughs regarding motivation science in the mid-twentieth century. Recent research built upon these foundations to further our understanding of motivation, its constituent parts, and how monetary compensation factors into the comprehensive motivational construct. These theories have recently been applied to workers earning more than seventy-five thousand dollars per year, with findings suggesting that it can be useful within narrow parameters.

This researcher’s conclusions include exploring a causal chain between the hierarchy of needs, emotional well-being, intrinsic motivation, job performance/satisfaction, and achieving organizational goals with lower turnover among top-tier employees. Potentially, these findings provide managers with a theoretical base from which to motivate their top-tier personnel, yielding higher goal achievement and lower turnover. Further recommendations include a series of studies focused on verifying this causal chain, affective and cognitive components of motivation, and specific methods to motivate top-tier employees.

Questions Explored in the Research

Reviewed research generally addresses a version of the following two research questions when examining monetary incentives in motivation theory. These questions are 1) Under what conditions can money be an effective motivator and 2) How can one motivate highly-paid, highly-skilled top-tier employees?

Literature Review

Taylor (1914) argued that pay mainly motivates workers via his scientific management theory. He based his model off of certain assumptions regarding the workforce in general. First, he argued that workers do not like to work and therefore require high levels of control. In other words, the controlling phase of management plays a large role in Taylor’s (1914) theories. Secondly, he stated that workers are more efficient when given small repetitive tasks and appropriate tools and training to accomplish those tasks. Simply put, Taylor (1914) recommended specializing workers on a single task and training them on how to accomplish the task as efficiently as possible. Thus, each worker and subtask is completed as quickly and accurately as possible, yielding efficient master tasks. Third, he argued that workers should be paid for each task completed or piece produced, not hourly (Dean, 1997). In this way, the worker in a low-interest tasking is motivated purely by compensation. Furthermore, Taylor (1914) argued that workers should not be punished for small mistakes, but rather rewarded for small successes. Various manufacturers applied Taylor’s techniques to assembly-line operations, most notably at Henry Ford’s, with great success (Riley, 2018).  However, one must note this theory and its success applied only to the line-worker level of the organization, not the management team (Dean, 1997). Furthermore, there are some critiques of Taylor’s work regarding the relegation of workers to essentially robots (Riley, 2018). Taylor’s (1914) theories are seen by Riley (2018) as highly effective for assembly-line applications, but not for traditional management problems. In other words, one cannot use scientific management if one expects subordinates to be part of a creative team. In any case, from Taylor’s foundation, research began to build towards the human relations school of thought.

Mayo, considered by some to be the father of human resources, first presented his theory of employee motivation in 1933 (Dininni, 2017). He based it on his now-famous Hawthorne studies. His theory differed from Taylor’s in that Mayo stated that employees are motivated significantly more by intrinsic than extrinsic factors, particularly compensation. Notably, Mayo found that workers desired to fulfill what Maslow would later term “higher needs.” …

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How to cite this paper: Ford, S. (2019). Income as Incentive: An Examination of Money as a Motivator Among Top Tier Employees; PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Ford-Income-as-Incentive-featured-paper.pdf

 



About the Author


Steve Ford

Colorado, USA

 

 

 

Steve Ford holds a BS from the US Air Force Academy (2004), an MS in Space Studies from the University of North Dakota (2009), and is currently in the Doctorate of Management- Project Management program at Colorado Technical University (2021). Steve is currently the managing member of Advanced Applied Project Management Solutions (LLC), a project management consultant firm. He holds numerous project management-related qualifications, including Project Management Professional (PMP), Lean Six Sigma Black Belt Professional, Project Management- Lean Process Certified, Lean Supply Chain Management Certified, and Lean Culture Certified. He has more than 18 years of aerospace and construction experience in project management.

 

 

Agile Contracts: Effective Procurement

for Enhanced Project Success in the Entertainment Industry

 

FEATURED PAPER

By Sarra Messai

SKEMA Business School

Paris, France

 


 
ABSTRACT

Carrying great promises, Agile methods nevertheless imply rights and duties, which must be enshrined in an adequate legal framework; especially in an industry like the Entertainment where large risks are at stake, contract and trust-issues are numerous, and flexibility is a key to remain competitive. Thus, we will explore Agile contracts to evaluate their ability to cope with the main issues that often hurdle entertainment projects and be an asset to support projects within the entertainment industry. Throughout this paper we will consider five types of contracts; to rank those feasible alternatives, we will evaluate them using several criteria and undertake a qualitative and quantitative analysis. In the end, we will observe that Target-Cost and Incremental Project Delivery contracts stand out, as both strongly support the implementation of Agile methods, while being singularly helpful for Entertainment companies. Indeed, those two types of contract can be a shield against many pitfalls and foster some vital key success factors. In addition, we will study some best practices regarding performance monitoring. Ultimately, we will state a simple yet essential idea: where proper Contract Management goes, project success follows.

Keywords: Agile, Contract, Entertainment, Incremental Delivery, Target Cost, Risk, Flexibility, Collaboration, Project, Management

INTRODUCTION

Agile contract. Those two words may easily seem utterly antithetical. On the one-hand contracts revolve around rigor and obligations, on the other hand Agile methods are all about iteration and adaptability. Thus, it seems hard to fathom what an agile contract could be.

Nonetheless, the legal area has not been spared by the Agile trend sweeping throughout every sector over the past two decades. Indeed, from start-ups to big size companies, from local to international businesses, it feels like everyone is talking about Agile and integrating those methods into their processes.

It all started seventeen years ago during a ski weekend in Utah. 17 software developers gathered to exchange ideas and try to improve the traditional Waterfall project management approach[1]. Inspired by the Scientific Method[2] of the 12th century, and determined to operate a shift in project management, they ultimately created the Agile Manifesto to describe the Agile philosophy, values, and principles[3]: “a focus on delivering value for customers, working in small teams in short cycles, and networked organizational arrangements rather than top-down bureaucracy and silos”[4]. And to this day, the adoption rate of Agile methods keeps growing[5], as explained by Stephen Denning: “The Manifesto remains a landmark in software development but increasingly also for management innovation more generally, a radical new way of managing business complexity”[6]. Three companies out of four (71%) report using Agile approaches for their projects[7]. In 2017, Forbes interviewed more than 500 senior executives around the world and the results are unequivocal; 92% said they believe organizational agility is critical to business success[8].

More…

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Editor’s note: This paper was prepared 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].

How to cite this paper: Messai, S. (2019). Agile Contracts: Effective Procurement for Enhanced Project Success in the Entertainment Industry, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Messai-Agile-Contracts-featured-paper.pdf

 



About the Author


Sarra Messai

Paris, France

 

 

 

 

Sarra Messaï is a young Project Manager and a former PGE Student at SKEMA Business School where she did the MSC Project and Program Management and Business Development. She has a strong international background since she lived in France, Brazil, and England.

After graduating from High school and passed her scientific “baccalaureate” with honors, she did a Preparatory class for competitive entrance into French Business School during 2 years in Paris. She integrated the “Programme Grande Ecole” of SKEMA BS in Management in 2015. During her time in SKEMA BS, Sarra also had several significant work experiences. She started from being President of the main Student Club of her school in Lille, then did an internship for an Oil&Gas startup in London and worked as a Project Manager Assistant for Publics Conseil in Paris afterward. She is now working as a Project Manager for a consulting company based in Paris specialized in Project Management and Business Analysis for IT projects.

Sarra Messaï lives in Paris, France, and can be contacted at [email protected], you can also send her a message via her Linkedin: https://www.linkedin.com/in/sarra-messai-57801312b/

 

[1] Jim Highsmith, for the Agile Alliance, History: The Agile Manifesto (2001). Retrieved from: http://agilemanifesto.org/history.html

[2] Dr Jaap Van Ede, Scientific Method: Core of all improvement methods (2017). Retrieved from:  https://www.business-improvement.eu/worldclass/scientific_method_process_improvement.php

[3] Agile Alliance, Manifesto for Agile Software Development (2001). Retrieved from: http://agilemanifesto.org/

[4] Steve Denning, Why Agile Is Eating The World (2018). https://www.forbes.com/sites/stevedenning/2018/01/02/why-agile-is-eating-the-world​​/#19ed085a4a5b

[5] Max Steinmetz, 9 Agile Statistics That Actually Empower Teams (2018). Retrieved from : https://www.targetprocess.com/blog/agile-statistics/

[6] Stephen Denning Updating the Agile Manifesto (2015). Retrieved from : https://www-emeraldinsight-com.ezp.skema.edu/doi/full/10.1108/SL-07-2015-0058

[7] Project Management Institute, Pulse of the Profession 2017 (2017). Retried from : https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pulse-of-the-profession-2017.pdf

[8] Forbes Insights, Achieving Greater Agility (2017). Retrieved from : https://www.forbes.com/forbes-insights/our-work/achieving-greater-agility/  

 

 

 

How performance indicators and maintenance

will become project managers’ best assets in the industry 4.0

 

FEATURED PAPER

By Claire Lopez

SKEMA Business School

Lille, France

 



ABSTRACT

The technological and organizational effervescence of both companies and state governments toward the 4.0 Industry is a source of finance and jobs. The purpose of this work is to get an overview of decision-making tools of this new era and how to face the automation in factories. First, I have used a Multi-Attribute Decision Making and second, a compensatory model for weighting the result. My work has highlighted the importance of bringing the maintenance activity in house and the flexibility of the ad-hoc report. To conclude, I would advise to closely follow the modularization trend in the construction and auto sector.

Keywords: 4.0. Industry, Virtual team, Decision maker, Problem solver, Knowledge sharing, Management tools

INTRODUCTION

The concept of 4.0. Industry or the industry of the future represents a new way of organizing the means of production in a factory. This new industry is emerging as the convergence of world digitalization and consumption growth. The great promises of this fourth industrial revolution are to seduce consumers with unique and personalized products, and despite lower manufacturing volumes, to maintain high gains. With the use of the Internet of Things and cyber-physical systems, that is virtual networks used to control physical objects, the intelligent factory is characterized by continuous and instant communication between the different tools and integrated workstations in production and supply chains. In the context of industrial automation, it is described by the addition of sensors that are the essential elements of data acquisition and control systems. Many different aspects of our modern societies are affected by this fourth industrial revolution. New issues emerge through this new way of producing.

The image below shows the main characteristics of each evolution of the industry. It goes from the creation of steam engines to nowadays cyber-physical systems.

1/ Industry evolution[1]

Nowadays, the interconnection and the importance of information transparency allow the industries to make day to day decisions both from inside and outside of production facilities. The process of decision making is entirely decentralized. At the same time, we need to consider the local and global information. Furthermore, the industry of the future changes human roles in a factory from an operator to a problem solver. Workers get the help of assistance system software to solve urgent problems in short and medium notice. These two changes in the role of a worker in a plant, from an operator to a decision maker and problem solver.

The current context of the industry of the future can be sum up in the root cause analysis below.

More…

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Editor’s note: This paper was prepared 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].

How to cite this paper: Lopez, C. (2019). How performance indicators and maintenance will become project managers’ best assets in the industry 4.0, PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Lopez-high-performance-indicators-and-maintenance-in-industry-4.0.pdf

 



About the Author


Claire Lopez

Lille, France

 

 

 

Claire Lopez is a 5th year student at ITEEM, an engineer manager and entrepreneur school which enhances her overall industry expertise as well as develops her background in management strategy. Her school provides her a dual competence in engineering and commerce and allows her to be entirely able to work in a complex environment. The engineering competences are delivered by l’Ecole Centrale de Lille whereas the project and her master “MSc Project and Programme Management & Business Development” is part of SKEMA Business School. She is certified Prince2, Agile and passed the TOEIC (925/990). She integrated Axway Australia and Axway Singapore for her 8-month internship. She assisted the Marketing Department for activities undertaken in APAC region and helped create an Axway Partner Journey and its associated Certification Program.

Through many projects in different fields, she developed a strong experience in project management and business development. She is optimistic, engaged and hard-working. She is a great team member but is also able to manage a long-term project and demonstrate leadership.

Claire lives in Lille, France and can be contacted at [email protected]

You can have further information about his experience on her LinkedIn profile: https://www.linkedin.com/in/claire-lopez/

 

[1] Christoph Roser. (n.d.). Illustration of industry 4.0. Retrieved from https://en.wikipedia.org/wiki/Industry_4.0#/media/File:Industry_4.0.png

 

 

Which organizational structure

will facilitate the success of your project?

 

FEATURED PAPER

By Ying Li

SKEMA Business School

China and France

 


 
ABSTRACT

Doing business has existed almost forever, and still, the human being cannot find one and only one way to manage people because people are too, so the management also needs complexity to manage the people correctly and efficiently. The lot different structures which exist prove that there is not only one way to structure a company; it is way more difficult than this and that is the reason why many authors write about how to structure the companies, about the advantages and disadvantages of the different structures.

This paper presents an extensive literature analysis to find the best alternatives and solutions to support managers who try to find out what should be their structure to get successful projects, successful company, and successful teams.

Keywords: organizational structure, management, project, team, skills, conflicts, The efficiency.

INTRODUCTION[1]

Famous authors like Taylor, Fayol, and Sloan investigated to find out the most efficient structure for the company.

Different structures exist in companies with more or less common structures. Among them, functional (Divide the tasks with managers which are expert in their subjects), divisional (company divided into smaller companies called divisions responsible for its division), matrix, team, and finally network structure.

All those structures are different and will define what the head of the company wants to do with the company. It is essential to divide task and jobs among the company to make it work out.

The structure will determine the future success or failure of the company, and that is why this choice is fundamental.

The basic definition of a structure is “A system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization.”[2] This structure will indeed allow the management to develop into the company according to the hierarchy.

Management is a set of tools to make people invest themselves in projects for the company with different teams, different rewards and make them use their maximum potential to deal with this project. More a team is larger and more the management issue will be about managing people than smaller where managers need to be aware with the technical issues. [3]

The Cross-functional structure is an organizational structure in which we find matrix management and cross-functional teams composed by members from different departments of the company which are put together for a specific purpose or specific goals.

Matrix has to be carefully used by organizations. It has to be because there is a real business need for this organization to develop a cross-functional structure and a need for more coordination between the teams. They also wrote that it is essential for the teams to have reasons to collaborate.

Another condition for matrix success is to limit the size of the matrix (« 2 teams maximum and not too many different levels »).

Matrix advantage is that it is not needed to escalate issues to the top manager cause the matrix team is supposed to solve the daily issues independently from the rest of the company and efficiently. (Of course, sometimes, it would be needed to escalate in case of sensitive subjects or VIP costumers …).

Once the company built the matrices built, the manager needs to do his best to motivate the employee’s lines putting them all with the same level of importance for the project role.

It is difficult to manage people in a cross-functional organization because the leader needs to have a bunch of quality to deal with a team in the cross-functional organization: empathy, conflict management, influence or also self-awareness.

Consequently, the companies need to get the leaders who get all of those competencies. About this, there is one good news and a bad one: The bad one is that very few people have all of those or not enough. The good news is that the leaders can improve these competencies with practice and time

The importance of this research is to synthesize the solutions for the managers to help them understand how to manage those people who come from different areas.

In this paper, we will bring different organizational structures as solutions to help companies make better choices for the projects based on their actual situation.

Therefore, the following question will be the focus of this paper:  What is the most effective organizational structure for projects to be successful?

More…

To read entire paper, click here

 

Editor’s note: This paper was prepared 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].

How to cite this paper: Li, Y. (2019). Which organizational structure will facilitate the success of your project? PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Li-which-organization-structure-will-facilitate-project-success.pdf

 



About the Author


Ying Li

Paris, France

 

 

 

 

Ying Li is currently an MSc student in Project and Programme Management & Business Development (PPMBD) in Skema business school. She born in China and graduated from Yunnan Normal University (China) and holds a bachelor’s economics major: international economics & trade. She has worked for China resources healthcare group ltd. – Strategic development dept as an assistant manager. And she was a volunteer of the 7th Chinese Bridge – Chinese Proficiency Competition for Foreign Middle School Students. Helped the disciplines and security of outdoor activities. She has both project management and economy study background.

Ying Li lives in Paris, France now, and can be contacted at [email protected]

 

[1] Making Matrix Organizations Actually Work. (2016, March 1). Retrieved from https://hbr.org/2016/03/making-matrix-organizations-actually-work

[2] 4 Types of Organizational Structures. (2018, February 22). Retrieved from https://online.pointpark.edu/business/types-of-organizational-structures/

[3] GUILD OF PROJECT CONTROLS COMPENDIUM and REFERENCE (CaR) | Project Controls – planning, scheduling, cost management and forensic analysis (Planning Planet). (n.d.). Retrieved from http://www.planningplanet.com/guild/gpccar/acquiring-manpower-for-the-project

 

 

The Rise of Legal Project Management

The Importance of project management to law firms

 

FEATURED PAPER

By Tzuyu Lai

SKEMA Business School

Taiwan and France

 


 
ABSTRACT

We can’t ignore the rise of legal project management; however, we have to understand how important it is, and what are the advantages if we apply legal project management in law firms.

In the paper, we see through the definitions of legal project management and the application of project management in the law industry. After we get the main concepts, we refer to criteria which are important to evaluate a law firm’s performance to discover how important it is for lawyers and law firms to apply legal project management. Through MADM (Non-dimensional data technique), by methods of quantitative and qualitative analysis, we compare the different ways to manage law firms. Finally, we conclude that to train your in-house lawyers with project management knowledge would be the best alternative for law firms, especially for a large law firm dealing international cases.

Keywords: Legal project management (LPM), project management, risk management, plan, cost control

INTRODUCTION

Have you heard of Legal project management? It is a new trend among law firms, to run the firm with project management.[1] The goal of a law firm is to offer the work with high quality via efficient team work with limited budget and time, therefore it would be important for lawyers, partners of law firms to realize the importance to practice professional project management in their daily work.

For legal industry, to run a law firm, the company needs to take care of each project. “Legal project management (LPM) can be thought of as fitting between legal processes and legal practice management”.[2] In legal project management, the aims are to reduce waste and improve efficiency, and organizing and developing broad programs.

When organizations practice LPM with right direction, LPM can provide program management, helping to manage several strategically related projects.

According to the Guild, there are four types of programs: strategic programs, operational programs, multi-project programs, and mega projects. For legal industry, it can be multi-project programs and operational programs, since the existence of legal project management is to minimize the negative effect on suit case also get the benefits from synergies of multiple projects.

For larger law firms, they might start to strategically manage multiple programs when the program management gets mature. It can also be portfolio management.

“The objective being to minimize the risk and optimize the return,”[3] a portfolio of projects can be used to develop the best outcome of projects via “mix“ of projects that generate the preferable returns on assets.

An asset is either tangible or intangible, which law firms own and expect to bring future benefits. For a law firm, each lawsuit case is regarded as a project, and when a law firm has more than one case from the same client, we can consider it an operational program.

And for law firms which only focus on specialized areas, for example the firms only taking divorce cases, all the cases are relevant, then we can assume it is a portfolio.

There are many positions in law firms; all the human resources are viewed as their assets.  Furthermore, the reputation, equipment, fixed cost, cash flow, and initial investments are law firms’ portfolio assets. Especially the reputation for law firms and individual lawyers which they work so hard to get is an important intangible asset.

According to the Guild of Project Controls’ compendium and reference, “a contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits’’[4]

Furthermore, we can see that the elements needed to be a contract are offer, acceptance, exchange, capacity, legality.

In a case between a client and law firm, it includes all of the above; therefore, we view each case as a contract, and law firms sign contracts with clients in the first stage after consultation. Contracts between lawyers and clients are Contracts by specialty or under seal.

As we can see from the research, more and more law firms offer the position of legal project manager due to their awareness of how it will impact positively on their relationship with clients, also the efficiency and accuracy of lawsuits. By using project management, law firms get benefits in aspects of litigation, transactions, compliance work. Each case is a project, or a program depending on the scope, for lawyers. Lawyers need to know what clients want from them, how much time they will have to reach the goal, and what resources they can use during the litigation. When law firms try to reach the goal, they will have to manage many plans and people involved. Clients prefer to consult in a law firm which can help them comprehensively with better price and quicker service.  Therefore, law firms normally have strong connections with other firms to ensure their service is beyond the standard. And that requires portfolio / project management.

We all know that project management is being practiced in many kinds of industries.  For law firms, the cases are increasingly complex, especially the cross-border lawsuits and commercial lawsuits. Lawyers need to be a scheduled consultant for their clients, some of them realized if they proceed the litigation including the preparation in a more structured, disciplined way, the possibility to succeed within budget and time limit is higher. As a result, the rise of legal project management is for sure in this decade.   In the paper, we will figure out why it is important for law firms to adequate project management and how we conduct project management in law firms.

More…

To read entire paper, click here

 

Editor’s note: This paper was prepared 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].

How to cite this paper: Lai, T. (2019). The Rise of Legal Project Management: Importance of project management to law firms, PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Lai-the-rise-of-legal-project-management.pdf

 



About the Author


Tzuyu Lai

Paris, France

 

 

 

Tzuyu Lai is a student in SKEMA Business school for her master degree of Project and programme management and business development. She has a bachelor’s degree in law from Chengchi University (NCCU, Taiwan), during her five years of university, she went to University of Seoul, Korea and University of Konstanz, Germany as exchange student. Afterwards, she did internships in an E-commerce startups as a marketing assistant.

The experience broadened her mind and made her decide to come to France for her Master’s degree. As an international talent, she is willing to take any challenge out of her comfy zone. She is interested in working in an international environment and a career that combines her bachelor and master background. She has training on PRINCE2, Agile, CAPM and other project management knowledge in her master’s degree program.

She lives in Paris France, and she can be contacted by [email protected] or by Linkedin https://www.linkedin.com/in/tzuyu-lai/

 

[1] Clasen, S. (2018, May 4). The Profitable Benefits of Legal Project Management. Retrieved from https://www.attorneyatwork.com/the-profitable-benefits-of-legal-project-management/

[2] Ruhl, J. B. (2017, August 9). The Rise of legal project management. Retrieved from https://www.americanbar.org/groups/young_lawyers/publications/tyl/topics/law-practice-2050/rise-legal-project-management/\

[3] Guild of project controls compendium and reference. Retrieved from http://www.planningplanet.com/guild/GPCCAR-modules

[4] A. Lowery  (2014, July 2). Guild of project controls compendium and reference. Retrieved from http://www.planningplanet.com/guild/GPCCAR-modules

 

 

Investigation of different alternatives

in order to improve the motivation within a project team

 

FEATURED PAPER

By Charlotte Zago

SKEMA Business School

Lille, France

 


 
ABSTRACT

The purpose of this paper is to analyse the most important factors that influence motivation within a project team, to link them to international contracts and to find the best recommendation for project managers. Indeed, our research question is “How to motivate people on a project team?”.

In order to achieve that goal, we have analysed the causes of demotivation within a project team. Then, we have established some alternatives and we have evaluated each of them by creating a Multi-Attribute Decision Making. The last step was to make a quantitative analysis of the alternatives using the additive weighting technique.

This methodology led us to the conclusion that the best alternative to increase the motivation in a project team is to implement a personal development plan.

Keywords:  Motivation, reward, project team, performance, incentives, recognition, contract, processes.

INTRODUCTION

Motivating is the “process of inducing an individual to work toward achieving an organization’s objectives while also working to achieve personal objectives” [1]. Everyone needs motivation in order to achieve something, personal or professional, and sometimes you need to be motivated by someone else, an external source of motivation. For example, it’s often the case in a company. Employees need to have someone who will motivate them to achieve their goals. This person is usually called the manager.  We all know that if the motivation of a person or an employee is high, the performance will also be high and on the contrary if at some time the motivation decreases, the performance will do the same. In fact, performance is closely linked to motivation. A recent study shows that “72% of the respondents agreed that recognition and appraisal for work done motivates employees to improve their performance”[2].

The motivation within a project team is also a big challenge that can impact the performance and the results of the project. Unfortunately, there isn’t a “magic potion” to keep motivation high during the whole project. However, project managers can find some ways to keep the motivation of his or her team, especially through a contract.

We have to make the distinction between group work and teamwork.   “A group in the workplace is usually made up of three or more people who recognize themselves as a distinct unit or department, but who actually work independently of each other.”[3]

On the contrary, “With a team, individuals recognize the expertise and talents of others needed to achieve the team’s goal. Additionally, teams are often formed for temporary assignments with one specific goal, focus or outcome in mind.”[4] That’s why it is important to think, before the project begins, about how you will motivate your team: what can you give them? Which techniques can you use when the motivation decreases? How can you manage conflicts? It is a lot easier to manage those things when you’ve thought about it before and you have a defined protocol that every team member is aware of. Obviously, a way to structure it is to formalize it in writing, through a contract.

In order to find an effective way to motivate a project team, it’s important to understand what can cause a decrease in the motivation in the team. You can see below a root-cause analysis that highlights some of the most important factors which cause demotivation within a project team.

More…

To read entire paper, click here

 

Editor’s note: This paper was prepared 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].

How to cite this paper: Zago, C. (2019). Investigation of different alternatives in order to improve the motivation within a project team, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Zago-alternatives-to-improve-motivation-in-a-project-team.pdf

 



About the Author


Charlotte Zago

Lille, France

 

 

 

Charlotte Zago is a student at Skema Business School in the MSc PPMBD « Project and Programme Management & Business Development ».  Born in the north of France, she first studied at the Catholic University of Lille during five years. She studied a dual competence: Business and Sciences and was graduated in 2018.  She decided then to embark on a new adventure: Project Management.  She will be graduated of this programme at the beginning of 2019 and wants to work in the healthcare sector as a Project Manager.  This Paper is her first publication. She wrote it under the tutorage of Dr Paul D. Giammalvo to complete the course on International Contracts.

Charlotte lives in Lille, France and can be contacted at: [email protected]

 

[1] Wideman Comparative Glossary of Project Management Terms v5.5. (n.d.). Retrieved November 2, 2018, from http://www.maxwideman.com/pmglossary/PMG_M05.htm

[2] Nurun Nabi, Islam M, Dip TM, Hossain AA (2017) Impact of Motivation on Employee Performances: A Case Study of Karmasangsthan Bank Limited, Bangladesh. Arabian J Bus Manag Review 7: 293, from https://www.omicsonline.org/open-access/impact-of-motivation-on-employee-performances-a-case-study-of-karmasangsthan-bank-limited-bangladesh-.php?aid=86681

[3] Fritz, Robin. “Differences Between Group Work & Team Work.” Small Business – Chron.com, http://smallbusiness.chron.com/differences-between-group-work-team-work-11004.html.  30 June 2018.

[4] Fritz, Robin. “Differences Between Group Work & Team Work.” Small Business – Chron.com, http://smallbusiness.chron.com/differences-between-group-work-team-work-11004.html.  30 June 2018.

 

 

A perspective on project success levels

in an organisational strategic management context

 

FEATURED PAPER

By Alan Stretton, PhD (Hon)

Sydney, Australia

 



INTRODUCTION

In an article in last month’s issue of this journal (Stretton 2019a) I focused on the other strategic work component of organisational strategic initiatives, which, in addition to projects, is normally required to help organisations achieve their strategic objectives.

That article discussed differing views on how management of other strategic work relates to the project management (PM) component, and to organisational strategic management at large. It was noted that these three are highly intertwined, which led to a conclusion that a broader study of managerial responsibility for the various entities of the organisational strategic management framework might help sort out some of the grey areas of such responsibilities.

I also signalled an intention to address this topic in a later issue of this journal, and still propose to do so. However, in this article I would like to present a further perspective on the management of the project component of organisational strategic initiatives, which hopefully might help in future discussions of the latter topic.

In some recent articles in this journal (e.g. Stretton 2018a, 2018k), I have been discussing causes of so-called “project” failure in the context of a basic organisational strategic management framework, and found that around half the causes of were not related directly to projects – which, in itself, somewhat complicates an appreciation of intertwined management issues in the strategic context.

In this article I will be adding discussions of “project” success/failure in the context of three levels of “project success” criteria proposed by Cooke-Davies 2004, which I will be relating to the same basic strategic framework. The criteria attached to these three levels are strongly management-related, and hopefully may give further insights into sorting out management issues in organisational strategic management, particularly as they relate to component projects.

COOKE-DAVIES’ THREE LEVELS OF PROJECT SUCCESS

In a very substantial discussion of the nature of project success, Cooke-Davies 2004 distinguished between three levels of success criteria, as follows.

L1: Project management success: Was the project done right?

L2: Project success: Was the right project done?

L3: Consistent project success: Were the right projects done right, time after time?

Although it has a strong colloquial element, I like the descriptor “right”, because it can be applied to a wide variety of contexts, but still convey a meaning which is readily interpretable for any particular context. Some other writers have also been using this descriptor – for example Bucero 2018, with his exhortations to

  • Do the right projects and programs!
  • Do the projects and programs right!

As indicated in the Introduction, in two recent issues of this journal (Stretton 2018a, 2018k) I have discussed causes of so-called “project” failures in the context of an organisational strategic management framework. These articles found that project management could be held accountable for no more than about one half of all such failures. The remaining “project” failures were actually failures in other areas of the strategic management framework, for which non-project people or groups were responsible.

Relating this back to Cooke-Davies levels of success, it can be seen that he uses the descriptor “project” in the title of each level. This might be interpreted as implying that project management has direct responsibilities for successes and failures at each level. However, in the light of the above findings, this would appear to be a doubtful interpretation. We will investigate this further by relating Cooke-Davies’ three levels of project success to the organisational strategic management framework used in that article, and see what emerges.

Before doing this, we look at how I have recently been depicting how projects relate to an organisational strategic management framework, via a basic project life-cycle.

More…

To read entire article, click here

 

How to cite this paper: Stretton, A. (2019). A perspective on project success levels in an organisational strategic management context, PM World Journal, Volume VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Stretton-perspective-on-project-success-levels-featured-paper.pdf

 



About the Author


Alan Stretton, PhD      

Faculty Corps, University of Management
and Technology, Arlington, VA (USA)
Life Fellow, AIPM (Australia)

 


Alan Stretton
is one of the pioneers of modern project management.  He is currently a member of the Faculty Corps for the University of Management & Technology (UMT), USA.  In 2006 he retired from a position as Adjunct Professor of Project Management in the Faculty of Design, Architecture and Building at the University of Technology, Sydney (UTS), Australia, which he joined in 1988 to develop and deliver a Master of Project Management program.   Prior to joining UTS, Mr. Stretton worked in the building and construction industries in Australia, New Zealand and the USA for some 38 years, which included the project management of construction, R&D, introduction of information and control systems, internal management education programs and organizational change projects.  He has degrees in Civil Engineering (BE, Tasmania) and Mathematics (MA, Oxford), and an honorary PhD in strategy, programme and project management (ESC, Lille, France).  Alan was Chairman of the Standards (PMBOK) Committee of the Project Management Institute (PMI®) from late 1989 to early 1992.  He held a similar position with the Australian Institute of Project Management (AIPM), and was elected a Life Fellow of AIPM in 1996.  He was a member of the Core Working Group in the development of the Australian National Competency Standards for Project Management.  He has published over 200 professional articles and papers.  Alan can be contacted at [email protected].

To see more works by Alan Stretton, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/alan-stretton/.

 

 

Capitalizing on Complexity in Modern Business Environments

A Network-Based Perspective for Projects and Organizations

 

FEATURED PAPER

By David Tain

Alberta, Canada

 



The advancement of technology has substantially changed the way knowledge is created and transmitted. Modern interaction platforms allow information to expand at proportions and speeds without precedents, enhancing the potential to access and combine perspectives from different settings and shaping the mechanisms of collaboration and competition. Furthermore, these advancements have progressively unleashed important networks effects across multiple sides of the market, creating innovative business models that, in some cases, are orthogonal to scale and have led to the rise of niche activities: E-bay, for instance, connects groups of buyers and small sellers scattered across the globe (Teece, 2018). A global oil corporation engaging technological initiatives with competitors, individuals joining efforts to advance an open source software, a student that obtains an online degree or simply the guy that learns how to repair a leak in a fridge via YouTube are just a few examples that show how interconnectivity has progressively shaped business environments in the last decades.

The evolution of modern business environments has made more evident the agent-based nature of knowledge creation and has challenged the linearity in traditional models where growth is visualized as the combined effect of aggregated contributions of agents, the efficiency of adequate organizational structures and the optimization of resources. Furthermore, the creation and transfer of knowledge catalyzes strategic transformation: massive flows of available information and the actions of other agents are determinant in replacing old assumptions, triggering adaptation modes in organizations and projects that do not follow basic notions of linearity, rationality and equilibrium. Essentially, knowledge is no longer “caged” within institutions (e.g.: universities, corporations), and it does not always follow structured processes of inductive or deductive analysis.

Traditional approaches to design organizational and project structures are insufficient. They don’t account for non-linearity (results greater than the sum of the parts of a system) or the behavior of agents into larger schemes. By building on the characteristics and dynamics of Networks, it is possible to engineer organizational architectures that induce transformation and dynamically capitalize on changes in the business environment, strategically adjusting structures and synchronizing organizational growth with the evolution of internal and external contexts. To achieve this, it is necessary to adopt an open-systems approach that allows visualizing the dynamics and permanent reconfiguration of organizational networks, understanding the role and contributions of agents in these reconfigurations and setting strategic initiatives to effectively orchestrate information flows and resources.

Linearity in Traditional Frameworks: A Brief Overview

From a traditional neoclassical perspective, markets are formed and shaped based on aggregated contributions of individuals that, by acting rationally, seeking their own interests. The division of labor and specialization are considered the most basic mechanism for economic growth and sustainability [Note 1], thus organizations are conceptualized as market entities that, through mechanisms of coordination and hierarchization, reduce transactional costs of activities carried out by individuals acting alone (Coase, 1937). The specific constraints of a region and the outputs of organizations operating locally will shape supply and demand, characterizing the market and defining the growth prospects for each organization.

Keeping in mind that economic growth is the key indicator for the performance of organizations and projects, multiple economics models have attempted to predict how growth occurs. One of the most notable, Robert Solow’s growth model, built on previous econometric models to parametrize output as a function of two key resources: Capital and Labor (Solow’s model also accounts for productivity gains due to technological progress). However, as resource utilization increase, inefficiencies will naturally emerge around coordination, specialization and space, progressively reducing the potential of these resources to generate value. This negative effect, known as the Law of Diminishing returns to scale (a key result from Solow’s model [Note 2]), is self-intuitive when organizations are observed as closed systems: Suppose the execution of an activity needs to be optimized (e.g. transporting goods, production line, construction, etc.) using a particular strategy or technology. A marginal point will be reached where adding more resources is counterproductive (e.g.: limitations in space will generate conflicts between laborers, simultaneous operations will reach a maximum, equipment capacities will be reached, changing technology is not economical, etc.)

From traditional models, contemporary management were conceptualized around the optimal allocation of resources as a vehicle to generate competitiveness and growth in organizations. Progressively, a myriad of management and strategy frameworks appeared in the 20th century, notably Taylor’s principles of Scientific Management on human productivity (Taylor, 1911) Fayol’s Administrative theory on command and control (Fayol, 1949)] and Weber’s on strategic hierarchization (Weber and Wittich, 1978)] among others. As markets evolved and became more turbulent, process-oriented organizational frameworks emerged to address the increased complexity of competition, focusing on efficiency and competitiveness and shaping the way we see strategic organization today. Some of the most remarkable frameworks include Penrose’s resource-based view of the firm (Penrose, 1959), Porter’s five competitive forces (Porter, 1979), Deming’s quality framework (Deming, 1986)] among others. In a nutshell, these frameworks aimed on generating superior capabilities in the organization that, by guiding the strategic configuration of its internal resources and investments, increase the value generation potential and protect the organization from external threats and competitors.

It is important to highlight is that, when most of these frameworks emerged, sophisticated forms communication like Internet were not yet available. Knowledge transmission and the interconnectedness of agents was limited to regions, sectors and industries. Processes for knowledge generation, absorption and assimilation in the organization depended on a “dominant logic” comprised by influential individuals such as leaders and executives. As a result, Decision-making was framed on personal preconceptions and beliefs of these individuals as “guardians” of the strategic vision, hence loss of corporate knowledge (e.g.: a key employee quits, information leakage, etc) demonstrated to have significant negative effects, compared to the loss of other type of asset in the organization. A remarkable evidence of this effect was experienced by Delta Airlines: in 1991, a high number of experienced mechanics left the company due to the implementation of salary reductions across the organization to offset losses. Senior positions were filled with less experienced workforce, resulting in longer time for the diagnostics and repair of airplanes and other significant inefficiencies. All this translated into substantial flights delays and unhappy customers switching business to competitors (Parisse, Cross and Davenport, 2006).

More…

To read entire paper, click here

 

How to cite this paper: Tain, D. (2019). Capitalizing on Complexity in Modern Business Environments: A Network-Based Perspective for Projects and Organizations; PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Tain-capitalizing-on-complexity-in-modern-business-featured-paper.pdf

 



About the Author


David Tain, MSc., P.Eng., PMP

Alberta, Canada

 

 

 

David Tain is a Principal Consultant for Project Management and Strategy Execution and a Director at Septentrion Strategic Solutions. For almost two decades, David has worked extensively in the development, execution and start-up of major industrial facilities in North and South America. He has held multiple leadership positions for national and international oil operators, engineering firms and construction organizations. Some of his areas of expertise include project and portfolio management, engineering management, risk management, decision analysis, organizational strategy design, leadership and negotiation with emphasis in human behavior in project settings. David is a Project Management Professional (PMP) and a Professional Engineer (P.Eng.) in the province of Alberta, Canada.

David holds a MSc. in Management from the University of Liverpool and a professional certificate in Strategic Decision and Risk Management Program from Stanford University. He obtained his BSc. in Civil Engineering in Venezuela and progressively expanded his technical knowledge in Project Management, Project Development and Strategy through multiple programs from recognized institutions across the globe, remarkably the Institut Français du Pétrole (IFP) in Paris and Villanova University in the US. David can be contacted at [email protected]

Septentrion Strategic Solutions LTD. helps corporations to achieve their vision and increase competitiveness in today’s markets. With specialized solutions, we enhance operations and decision-making, creating and unlocking value at any stage. Using world-class techniques and innovation, we capitalize on complexity to design customized strategies and management processes, optimizing resources and enhancing organizational interactions to ensure the best possible outcomes for your projects and organizations.

For more information, visit  www.septentrioncanada.com

To view other works by David Tain, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/david-tain/

 

 

The Impact of Project Management Methodologies on Project Success

A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain

 

FEATURED PAPER

By Hazem Hasan Abdulla

and

Prof Mukhtar Al-Hashimi

Kingdom of Bahrain

 



ABSTRACT

This study assessed the impact of Project Management Methodologies (PMMs) on project success in the oil and gas industry in the Kingdom of Bahrain. It also explored the different project methodologies used along with their strengths and weaknesses. Pragmatism paradigm, using mixed research methods, was adopted to achieve the objectives of this research. A total of 95 survey responses were received and 17 interviews were conducted.

This study revealed that comprehensive and applied PMMs have significant impact on project success whereas supplemented PMMs have insignificant relationship with project success. The analysis showed that one-unit change in the application of relevant PMM elements throughout the project life cycle has 32.3% impact on project success whereas one-unit change in the application of comprehensive PMM elements has 27% impact on project success.

Projects in the oil and gas industry are more about safety than speed and hence, the use of comprehensive methodologies and applying the relevant methodology elements are important for oil and gas projects. Furthermore, the companies in the oil and gas industry in Bahrain have to pay more attention to their project management methodologies and get it evolved and improved over time to achieve higher project success rates.

Keywords: Project success, Project management methodologies, oil and gas, Kingdom of Bahrain.

1.0 Introduction

Organizations convert the arising business and technological opportunities into projects in order to grow and achieve their strategic goals. Project success is the ultimate objective of all organizations and stakeholders and hence, achieving project success is an obsession of every organization. Despite the research in this field and the increased knowledge associated with project success and failure, projects continue to fail in satisfying the needs of different stakeholders (Cooke-Davies, 2002; Joslin and Muller, 2015). The Standish Group (2010) conducted a study that revealed only 32% of the investigated projects were successful against 44% challenged and 24% failed.

PMI (2017) defines project management as “the applications of the relevant knowledge, tools, skills and techniques to project activities to meet the project objectives”, and adhering to Project Management Methodologies (PMMs) reduces the risk, cuts the costs and improves the success rates (PMI, 2010). That’s why different PMMs have been employed by different organizations in order to increase the efficiency and effectiveness of their projects. However, Wells (2012) conducted a study that revealed 47.9% of project managers do not get what they expect from applying project methodologies. On the contrary, Joslin and Muller (2015) showed that PMMs contribute 22.3% to project success which supports Berssaneti and Carvalho (2015) in that adopting well established methodologies improve project performance.

Furthermore, cost overruns and schedule delays are the common themes in the oil and gas projects which impact the project’s efficiency (Halari, 2010). Since proper project management contributes to the success of projects, this study will explore the project management methodologies in the major oil and gas companies in Bahrain. The oil and gas industry in the Kingdom of Bahrain was selected for this study as it is the most vital sector in Bahrain. Currently, and as a result of the sharp drop in the oil and gas prices locally and internationally, there is a greater need to achieve project success by timely completion of activities, adhering to approved budgets, delivering the agreed specifications and satisfying the different stakeholders.

The aim of this cross-sectional study is to assess the impact of PMMs on project success in the oil and gas industry in Bahrain and to explore the different methodologies including their weaknesses and strength points. Consequently, the following research questions were developed:

  1. What is the impact of PMMs on project success in the oil and gas industry in Bahrain?
  2. What are the different PMMs used in the oil and gas industry in Bahrain?
  3. What are the strengths and weaknesses of each methodology?

As there is a little literature about project success in the oil and gas industry, this study will contribute to the literature of project success and project management practices in the oil and gas industry in general and particularly in Bahrain. Furthermore, it will provide more insights to practitioners by exploring the PMMs that are used in the oil and gas industry in Bahrain. It will also improve the understanding of the impact of PMMs on project success. Additionally, it will provide insights to decision makers, project managers and other project stakeholders into which methodology is more effective for achieving project success.

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How to cite this paper: Hasan, H. and Al-Hashimi, M. (2019). The Impact of Project Management Methodologies on Project Success: A Case Study of the Oil and Gas Industry in the Kingdom of Bahrain; PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Hasan-AlHashimi-impact-of-project-management-methodologies-on-project-success.pdf

 



About the Authors


Hazem Hasan Abdulla

Corresponding Author
Kingdom of Bahrain

 

 

 

Hazem Abdulla is a PMP® certified senior project engineer at the Bahrain Petroleum Company with 14 years’ experience in the oil and gas context. He is currently doing his Doctoral degree in Business Administration, with concentration in project management within the oil and gas industry, at Teesside University, UK. Hazem holds MSc in Engineering Management from The George Washington University and BSc in Mechanical Engineering from the University of Bahrain. He can be contacted at [email protected]; [email protected]

 


Professor Mukhtar Al-Hashimi

Kingdom of Bahrain

 

 

 

 

Prof. Mukhtar Al-Hashimi is a Bahraini national, who has four degrees: undergraduate, two master’s degrees and a PhD from the well-reputed University of Utah and Indiana State University, USA. During the last 25 years, he has served as an academic, advisor, director and executive member for a number of government and non-government organizations. He is currently working as an academic professor at Ahlia University, Bahrain. Professor Al-Hashmi’s experiences are rich and a blend of academic, managerial and administrative activities at both government and private organizations. He gained much recognition for the development of a comprehensive medical information system “Al-Care System”.

 

 

Review and comparison of various training

effectiveness evaluation models for R & D Organization performance

 

FEATURED PAPER

Gopa B Choudhury a and Vedna Sharma b

  1. Scientist ‘E’
  2. Junior Research Fellow,

Institute of Technology Management, DRDO 

Mussoorie, India

 



Abstract

The present study concentrates on reviewing various models for training effectiveness evaluation and then identifies the most suitable model for research and development (R&D) Organizations. If training is provided for any team or any organization, and then there is a need to probably know how important it is to measure its effectiveness. After all, time or money is spent on training so there is need to measure it provide a good return or not. There are various models are given to measure effectiveness of training for employee or organization. The purpose of this paper is to evaluate all models of training effectiveness and compare them to each other.

Keywords: Effective Training, Evaluation, Evaluation Models

Introduction

Training is a process of bridging the gap between desired and actual level of performance. Role of training may be seen as “ensuring that the organization has the people with the correct mix of attributes, through providing appropriate learning opportunities and motivating people to learn, and thus enabling them to perform to the highest levels of quality and service”. There are some criteria for measuring the success of training; direct cost, indirect cost, efficiency, performance to schedule, behavior change, reactions, learning and performance change. When the organization is executing a training programme, there should be an ideal evaluation scheme, to measure the effectiveness of training and development activities.

Evaluation of training literally means the assessment of value or worth.  It would simply mean the act of judging whether or not the activity to be evaluated is worthwhile in terms of set Criteria.

Evaluations mainly of two different types “formative” and “summative”. A formative evaluation is usually conducted in the early stages of a programme and addresses questions about implementation and ongoing planning. Summative evaluations assess programme outcomes or impacts (e.g., basic data, test scores).

There are dozens of learning evaluation models currently in practice. Each model has its own advantages & disadvantages. In this paper we analyze each model of training effectiveness measurement and compare its features. This paper provides overview of 7 evaluation models that will find most useful: Kirkpatrick, The Five Level Approaches: Hamblin, Kaufman, Philips Model, ROI (Return on Investment Model), Hamblin Model, CIRO Model.

Training Evaluation: Purpose and need & basic premise

With the technology changes, training is necessary to keep pace with these changes. Training is one of the most important HRD activities in organizations today. Evaluation of training and development means assessment of the impact of training on trainee’s performance and behaviour. The process of evaluating training and development has been defined by Hamblin (1974) as, “any attempt to obtain information (feedback) on the effects of training programme and to assess the value of the training in the light of that information”.

The training evaluation is hinged upon the following premise:

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How to cite this paper: Choudhury, G.B. and Sharma, V. (2019). Review and comparison of various training effectiveness evaluation models for R & D Organization performance; PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Choudhury-Sharma-comparison-of-training-effectiveness-models-for-rd.pdf

 



About the Authors


Gopa B. Choudhury

Mussoorie, India

 

 

 Gopa B Choudhury, Scientist ‘E’, is working at Institute of Technology Management, DRDO, Mussoorie as a faculty in Organizational Behaviour and Project Management. She is also working as Divisional Head of Academic Division of ITM & is responsible for conducting customized techno-managerial training courses for DRDO Scientists/Officers, etc.

 


Vedna Sharma

Mussoorie, India

 

 

Vedna Sharma has received M.tech & B.tech degrees in Computer Science from Himachal Pradesh Technical University & HPU Shimla respectively. She is currently working as Junior Research Fellow (JRF) at the Institute of Technology Management Mussoorie Defense Research Development & Organization, India.

 

 

Improving Environmental Health Hazards

Emanating from Indiscriminate Dumping of Solid Waste through Leadership Approach: A Case of Benin City, Nigeria

 

FEATURED PAPER

Victor Nnannaya Okorie1 and Oludolapo Ibrahim Olanrewaju2

1,2Department of Quantity Surveying, University of Benin, Edo State, Nigeria

2Dollahills Research Consult, Lagos State, Nigeria
2Dollasoft Technologies, Lagos State, Nigeria

 



ABSTRACT

Causes of environmental health hazards have been exclusively focused on the inadequacies of environmental laws, regulations and poor policies with less attention given to leadership and leaders’ behaviour. This study seeks to examine the relevance of leadership and leaders’ behaviour in improving environmental health hazards in Benin City. Questionnaire survey was structured from literature and administered to managers, workers and truck drivers of Edo State Waste Management Board (ESWMB). IBM SPSS version 23 and Microsoft Excel were used for data analysis while Microsoft Visio was used to design the models. The study revealed that there is a link between effective leadership and worker performance in term of regular collection and disposal of solid waste from the illegal dumpsites to recycling sites. Kindness with mean score value of 4.057 was ranked highest among the leadership qualities that could motivate workers for exceptional performance. The paper concludes that with visible and transparent leadership, diseases associated with indiscriminate dumping of solid waste in Edo State will be reduced leading to improved public health.  The study therefore recommends that selection and appointment of Chief Executives to ESWMB should be on leadership skills not on political allegiance.

Keyword: Dumpsite, Environmental, hazard, health, leadership, solid wast

1.0  INTRODUCTION

Causes of environmental health hazards have been exclusively focused on the inadequacies of environmental laws, regulations and poor policies with less attention given to leadership and leaders behaviour. According to Yukl (2011) leadership and leaders’ behaviour have been linked to organisational success. Naoum (2011) contends that organisational exceptional performance including productivity and profitability depends on the quality of leadership.  Achua and Lussier (2010) confirmed the link between high performance and leadership in the United States by developing a leadership model where the leaders’ traits/charismas were found to give rise to influence, inspiration and motivation, leading to exceptionally high commitment and willingness to achieve organisational goals/ tasks.

It could be argued that one of the reasons why World conventions and summits on environmental issues since 1952 have not achieved significant improvement in the areas of public health is not absence of laws and policies but poor leadership. On this note, Taylor (2011) stated that there is a high demand for leadership rather than managers to manage environmental issues. According to Ogbuigwe (2015) legislation, laws and regulations alone cannot bring about healthy environment; it is only committed and visible leadership that can bring about improvement public health emanating from indiscriminate dumping of solid waste in Nigerian urban cities. Thus, there is a paradigm shift from management to leadership to keep pace with today competitive business world.  In support of the paradigm shift from management to leadership, Lees and Austin (2011) maintain that success of any organisation is dependent upon the quality of leadership not by voluminous rules and regulations that do fail.

However, there is natural tendency for people to believe that enacting a law automatically leads to rectification of the problem it was meant to address. Nonetheless, in sub-Sahara Africa countries, this seen contrast because of low levels of education and cultural differences. Even so, Ogbuigwe (2015) argues that no matter how good the laws and regulations may be, it cannot work by itself, that it needs committed leaders to direct the affairs of the organisation.

Much have been researched in the areas of environmental management and pollution in Nigeria such as challenges of effective environmental enforcement (Edo, 2010), environmental pollution in Nigeria (Hyavyar and Tyav, 2010), waste dumps and their management (Aderogba and Afelumo, 2012) and effective solid waste management (Ikemike, 2015). However, there is little or no research in the area of leadership and environmental health hazards emanating from indiscriminate dumping of solid waste in Nigeria. Therefore, this paper tends to fill in this gap by examining the relevance of leadership and leaders’ behaviour relative to environmental health hazards in Nigeria.

2.0 LITERATURE REVIEW

2.1 Concept of leadership

Leadership has no single definition as it cuts across different disciplines. This means that the term ‘leadership’ is defined according to situation and context. To Western (2008) ‘leadership’ is the art of motivating a group of people to act towards achieving a common goal. While, Northouse (2010) describes leadership as personality traits, behaviour, power and influence. To Yukl (2010) ‘leadership’ in an organization is used to describe a certain type of social interaction between people, while the term leader is used to denote a person who has influence over others.

Tracy and Chee (2013) argued that leadership is action not position. Our concern of leadership in this context is to relate leadership action in a corporate body like Edo State Waste Management Board. This corporate entity called Edo State Waste Management Board is responsible for collection and disposal of solid waste generated within Benin Urban City. Therefore, the person whose actions are to bring about effective or ineffective in meeting the company’s needs is called the leader. Arguably, prevention of health hazards and diseases emanating from indiscriminating dumping of solid waste in Nigerian major urban cities like Benin City could be improved through committed and visible leadership.

2.2 Leadership and Environmental health management

Leadership and leaders behaviour revolve around directing and guiding people, influencing their thoughts and behaviour, motivating and controlling them to work towards goals that are regarded by the group and organisation as desirable and achievable (Naoum, 2011). Improve health hazards and diseases emanating from indiscriminate dumping of solid/industrial wastes in Nigerian urban cities falls within the ambit of what leaders can do. Leadership in the area of environmental management is relatively new. Perhaps, not until the 1988 Koko toxic waste dumping saga that forced the Federal government of Nigeria to establish the Federal Environmental Protection Agency (FEPA), Federal Ministry of Environment and other relevant agencies to control and manage all environmentally related issues in the country (Ikemike, 2015).

Regrettably, these institutional legal frameworks and other mitigating measures by Nigerian governments have not yielded enough positive results. For instance, in all major roads in Nigerian urban cities there will be over 1000 illegal dumpsite. The most pertinent question now, is it the lack of intuitional and legal framework that are responsible for the indiscriminate dumping of solid waste along all major roads in our urban cities?

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How to cite this paper: Okorie, V. N. and Olanrewaju, O. I. (2019). Improving Environmental Health Hazards Emanating from Indiscriminate Dumping of Solid Waste through Leadership Approach: A Case of Benin City, Nigeria. PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Okorie-Olanrewaju-Improving-Environmental-Health-through-Leadership.pdf

 



About the Authors


Dr. Victor Nnannaya Okorie

University of Benin Ugbowo
Edo State, Nigeria

 


Dr. Victor Nnannaya Okorie
is a Senior Lecturer and currently serving as the Assistant Dean of Faculty of Environmental Sciences, University of Benin. He holds a Doctor of Philosophy Degree in Construction Management from the Nelson Mandela Metropolitan University, Port Elizabeth, South Africa in 2014.  His research interest is on construction health and safety (H&S) with focus on culture, behaviour and leadership in relation to construction health and safety performance. Dr Victor can be contacted on [email protected], [email protected].

 


Oludolapo Ibrahim Olanrewaju

University of Benin Ugbowo, Edo State, Nigeria
Dollahills Research Consult, Lagos, Nigeria
Dollasoft Technologies, Lagos, Nigeria

 

 

Oludolapo Ibrahim Olanrewaju is a young multitalented Quantity surveyor, researcher and programmer. He attended Federal University of Technology, Minna where he studied Bachelor of Technology in Quantity surveying and graduated in 2017. He graduated with a First Class and emerged the best graduating student in department of Quantity surveying for 2017 set.  Oludolapo has a strong passion for ICT and he has been involved in series of software projects like DOLLAQUESS (Quantity surveying software he designed), decision support systems, inventory manager and others. He works with Dollasoft Technologies as a Freelance Software Developer and Dollahills Research Consult as a Freelance Data analyst and Researcher, and he is currently observing his one-year mandatory National Youth Service Corp (NYSC) at Department of Quantity surveying, Univeristy of Benin, Edo State. His research interests are on environmental health, building information modelling, construction informatics, construction health and safety (H&S), construction management, construction emissions, green construction, etc. Oludolapo can be contacted on [email protected], [email protected].

 

 

Elements of the Mathematical Theory of Human Systems

Part 6: Human Life as a Project (The differential equation of human life)

 

FEATURED PAPER

Pavel Barseghyan, PhD

Texas and Armenia

 



Abstract

One of the main trends in modern methods of social management are the attempts to consider social life as a process of implementing large and small projects.

From this point of view, human life and the whole civilization can also be viewed as projects of various scales that have a beginning, a course of life and its end.

If we consider the life of different scale of human systems from the point of view of the dynamics of their abilities and skills, we can easily notice that these abilities grow from the birth of a person or from the appearance of larger human systems, at some age or after some time they reach a maximum. and then follows their decline, aging, and the end of life or activity.

This paper is devoted to mathematical modeling of the entire human life cycle using static and dynamic approaches for this purpose.

Key words: mathematical model of human life, differential equation of human life, logistic function, dynamics of human abilities, institutional model of human systems, quantitative modeling of the human aging process.

Introduction: Human life as a project

The rapid development of methods and approaches to planning and implementing projects gradually creates a convenient environment for further generalizations of model representations of projects that can be used to promote quantitative methods in other areas of human activity [1].

In particular, we are talking about the fact that over time the number of attempts to consider the life of society as a process of implementing various types of projects increases.

These trends, in turn, create a favorable environment and a clear platform for the further development of methods in project management.

In addition, there are a number of fundamental ideas and approaches through which it is possible within the framework of the same methodology to consider not only the key problems of quantitative description of projects, but also many issues related to public life, which still do not have adequate quantitative solutions.

The idea of such a fundamental nature is the process of implementing projects and various manifestations of social life as a process of growth and accumulation, combined with the development of appropriate quantitative methods and models.

In particular, a similar idea was implemented in [2], where the project implementation process is considered as a growth process using logistic differential equations.

Typically, the methodologies used for project management assume that people’s performance remains unchanged during project implementation.

This statement is acceptable only for those projects that have a relatively short duration, during which the productivity of people does not change significantly.

But if we are talking about long-term projects, or other long-term actions and activities of people, the statement about the constancy of their performance no longer corresponds to reality, which, in turn, causes incorrect estimates and decisions.

Such a long-term project can be considered the life of a person also, during which his/her abilities, which in a particular case can be identified with his/her productivity in a normal working process, are subject to significant changes with age.

This means that in order to view society’s life as a set of parallel projects, it is first necessary to be able to do the same at the human level, since the person is a cell and unit of social life.

Having as a platform a quantitative model of human life from birth to the end of life, one can proceed to more complex cases of the dynamic representation of the coexistence of people and the life of society as a whole.

Since the basis of human activity are the abilities and possibilities of people, then human life should be viewed as a unity of the processes of growth of his abilities, and then their decline after a certain age.

To achieve this goal, namely, to describe the process of human life from birth to its end, it is necessary to have a flexible mathematical model that can adequately describe the slow growth of a person’s abilities and skills after birth, their rapid growth during the period of maturity and peaking at a young age and then presenting their decrease due to aging.

The mathematical model of human life must be so flexible that it can also reflect such phenomena as early maturation and late maturation of a person, as well as various rates of aging.

But on the other hand, consideration of these and many other circumstances can lead to insurmountable and unnecessary mathematical difficulties in building a comprehensive quantitative model of the growth and then the decline of human abilities and skills.

Therefore, in the mathematical modeling of such complex phenomena, it is advisable to follow the principle of the gradual complication of the model under development.

This means that at the first stage it is necessary to limit ourselves to building a simple structural model of the phenomenon being studied, provided that the developed model will adequately reflect at least the qualitative aspects of the problem.

Based on these considerations, we consider the dynamics of human capabilities depending on age as a single process, without breaking them into separate components.

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How to cite this paper: Barseghyan, P. (2019). Elements of the Mathematical Theory of Human Systems – Part 6: Human Life as a Project (The differential equation of human life); PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Barseghyan-the-differential-equation-of-human-life-featured-paper.pdf

 



About the Author


Pavel Barseghyan, PhD

Yerevan, Armenia
Plano, Texas, USA

 

 

 

Dr. Pavel Barseghyan is a consultant in the field of quantitative project management, project data mining and organizational science. Has over 45 years’ experience in academia, the electronics industry, the EDA industry and Project Management Research and tools development. During the period of 1999-2010 he was the Vice President of Research for Numetrics Management Systems. Prior to joining Numetrics, Dr. Barseghyan worked as an R&D manager at Infinite Technology Corp. in Texas. He was also a founder and the president of an EDA start-up company, DAN Technologies, Ltd. that focused on high-level chip design planning and RTL structural floor planning technologies. Before joining ITC, Dr. Barseghyan was head of the Electronic Design and CAD department at the State Engineering University of Armenia, focusing on development of the Theory of Massively Interconnected Systems and its applications to electronic design. During the period of 1975-1990, he was also a member of the University Educational Policy Commission for Electronic Design and CAD Direction in the Higher Education Ministry of the former USSR. Earlier in his career he was a senior researcher in Yerevan Research and Development Institute of Mathematical Machines (Armenia). He is an author of nine monographs and textbooks and more than 100 scientific articles in the area of quantitative project management, mathematical theory of human work, electronic design and EDA methodologies, and tools development. More than 10 Ph.D. degrees have been awarded under his supervision. Dr. Barseghyan holds an MS in Electrical Engineering (1967) and Ph.D. (1972) and Doctor of Technical Sciences (1990) in Computer Engineering from Yerevan Polytechnic Institute (Armenia).  Pavel’s publications can be found here: http://www.scribd.com/pbarseghyan and here: http://pavelbarseghyan.wordpress.com/.  Pavel can be contacted at [email protected]

 

 

 

 

SITProMP

A Simplistic Approach towards Managing IT Projects

 

FEATURED PAPER

By Monjur Ahmed, Arthur Maria do Valle and Guss Wilkinson

Waikato Institute of Technology (Wintec)

Hamilton, New Zealand

 



Abstract

Simplistic IT Project Management Practice (SITProMP) is a generic framework towards IT Project Management or ITPM. ITPM is somewhat different than Project Management in other fields. There exists several principles, methodologies and approaches for managing projects. SITProMP considers existing approaches towards PM and presents a simplistic principle-based framework for ITPM. SITProMP offers agility and proposes to manage IT projects through any suitable methodology, tools or approaches towards PM that may fit in. SITProMP complements all existing approaches and principles for ITPM; and can encapsulate all existing tools and technologies for ITPM. Though primary focus of SITProMP is on IT projects, it can be adapted to projects in any other fields, and thus customizable. The foundation for SITProMP is the existing knowledge bases in PM.

Keywords: IT Project, IT Project Management, Project Management, Project Management Principle.

Introduction

Project Management (PM) needs solid planned approach to maximise the probability of project success; as failure in IT projects largely are management related (Schmidt, Lyytinen, Keil & Cule, 1996). Projects are unique and there are several factors that must be planned to manage a project. PM has been given great deal of thought and research. Several tools, methodologies, principles and frameworks are available for PM. Summer (1999) states the PM methodology as a critical success factor. To the best of our knowledge, adequate research does not exist to find out the impact of using simplistic or complex approach towards PM and its subsequent impact on project success do.

To follow any specific framework or methodology, it is important that all the members of a project team should become familiar with the framework or methodology. It is a reality that people move around organisations, and people leave one to join another. The training to learn any PM framework or methodology incurs some overheads as they are not related to the projects themselves. Besides, when people switch to another job, if the organisation they join uses a different framework or methodology, they need to re-educate themselves to cope with the new job. This may not only be inconvenient for an employee but may also be an indirect contributing factor towards lower employee morale that does not essentially originating from any work environment; but rather from an overall context of the job marketplace and industry. A simple principle-based framework that does not require extensive training or rely on any of the existing tools for PM may help to overcome this issue. Besides, if a framework exists on which only a project manager is required to have expertise on and releases the necessity of extensive training for the rest of a project team; it might help a project team to focus more on the project activities instead of caring about the bits and pieces of the framework they are following. This is the motivation behind proposing SITProMP.

The rest of the paper is organised as follows: Existing approaches towards PM are discussed and analysed in Literature Review. The section SITProMP illustrates the framework presented in this paper. We discuss possible and planned further research in Future Developments section.

Literature Review

There are several structured approaches towards project management, either in the form of methodology, framework or principle. Each approach comes with its own standards, procedures and jargons. IT projects are distinct in that, technologies play an important role in IT projects (Orlikowski & Lacono, 2001). Unlike projects in all other fields, IT projects can be accomplished by a team of geographically dispersed people (Maznevski & Chudoba, 2008). Martinic, Fertalj and Kalpic (2012) argue that existing PM methodologies are not entirely suitable for IT projects involving virtual team (i.e. a geographically dispersed project team).

Some of the leading PM methodology of frameworks are PMBOK, PRINCE2 and CMMI. PMBOK is a widely accepted standard in PM which has 42 processes. All these processes are organised in five process groups (Fitsilis, 2007; Rdiouat, Nakabi, Kahtani & Semma, 2012). PRINCE2, which is a process-based approach towards PM, is structured around principles, themes and processes. It has seven principles, seven themes and seven processes (TSO, 2018). CMMI provides a PM framework for engineering projects. It comes with 22 process areas (Rdiouat et al. 2012).

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How to cite this paper: Ahmed, M; Valle, A.M.d.; Wilkiinson, G. (2019). SITProMP: A Simplistic Approach towards Managing IT Projects; PM World Journal, Vol. VIII, Issue I (January).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Ahmed-Valle-Wilkinson-SITProMP.pdf

 



About the Authors


Monjur Ahmed

Hamilton, New Zealand

 

 

 

Monjur Ahmed is a Lecturer at Centre for Information Technology (CFIT), Waikato Institute of Technology (Wintec), New Zealand. He holds BSc (Hons) in Computing and Information Systems from London Metropolitan University, UK; MS in Telecommunications from University of Information Technology & Sciences, Bangladesh; MSc in Electronics and Communications Engineering from University of Greenwich, UK; and PhD from Auckland University of Technology, New Zealand. His doctoral research was on a distributed and decentralised security model for Cloud Computing. Monjur is an active researcher. His research interests are in IT/IS security focusing on both technological and human aspects, mainly in contemporary computing approaches (e.g. Cloud and Decentralised Computing, IoT, and Big Data). Monjur has over 10 years of teaching experience in New Zealand, United Kingdom, China and Bangladesh. He has also facilitated several workshops globally. Monjur can be contacted at [email protected]

 


Arthur Valle

New Zealand

 

 

 

Arthur Maria do Valle is a Senior Academic Staff Member in the Centre for Information Technology (CFIT) at Waikato Institute of Technology (Wintec), where he is also the IT Research Leader. Arthur has a PhD in Production and System Engineering from Pontifical Catholic University of Parana (PUCPR) in Brazil. As his thesis, he developed a method for applying Process Mining techniques in software process assessments. Arthur has industry and academic background in topics such as Lean Six Sigma; Continuous Improvement; Business Process Management; Software Development; Quality Management; Operations Management; Performance Measurement, Project Management; Service Management and Strategy. As a former senior IT consultant for the last 18 years, Arthur had been involved in 15+ successful CMMI-based improvement programs in Brazil and abroad. Arthur can be contacted at [email protected]

 


Guss Wilkinson

New Zealand

 

 

 

 Gustav (Guss) Wilkinson is a Chartered IT Professional with 18-years’ experience in management, governance, business analysis and project management within the utilities, health and education sectors. Originally from Stockholm, Sweden, Guss started his career as an Optometrist but re-educated on moving to New Zealand in the end of 1996, gaining a PhD in Management systems. Guss can be contacted at [email protected]

 

 

 

The Best Project Financing Option

for Infrastructure Projects in Developing Nations

 

FEATURED PAPER

By Sisira Lohawiboonkij

Thailand and France

 



ABSTRACT

Around the world, infrastructure investment gaps have been a significant problem, and even more severe in developing nations where the needs for more infrastructure facilities are particularly massive. Thus, to address the investment gaps, this paper revolves around infrastructure financing options in the developing world, using a Multi-Attribute Decision Making (MADM) analysis to analyze various financing mechanisms used in infrastructure projects and rank them according to selected criteria and their relative importance. Subsequently, the non-dimensional data technique is applied to, finally, determine the best financing option for infrastructure projects in developing economies. The findings of the paper reveal that project finance is the most preferred financing alternative for infrastructure projects mainly due to its risk allocation feature.

Keywords: Project financing, project funding, infrastructure projects, construction, developing nations, public-private partnerships, infrastructure finance

 

INTRODUCTION

Infrastructure is, undeniably, a highly important element for the development of a nation. The quality and number of accumulated infrastructure facilities differentiate developed from developing countries regarding economic performance and growth, living standard, and social development. Investment in infrastructure has always been the center of policy discussions for the governments across the globe to keep pace with economic and demographic growth. In 2015, the world spent $9.5 trillion—14 percent of global GDP—on infrastructure.

As the needs for infrastructure facilities are rising continuously across the globe while governments’ budgets are limited, investment gaps have become a serious issue, particularly in developing countries where the infrastructure needs and deficits are particularly huge. By 2035, the global investment need has been estimated to reach $69.4 trillion, 63 percent of which will be in emerging economies, due to an improved GDP growth outlook and some technical improvements. Despite a recent increase in investment in economic infrastructure, the gaps remain.[1] Governments and organizations are working to fill in the gaps by searching for alternative funding sources to make sure infrastructure projects are realized.

Every project needs money to start with. As capital-intensive as an infrastructure project is, financing is the essence of the project success; a gap in funding poses a significant obstacle to the execution and the delivery of the infrastructure project. Therefore, it is highly essential that the project has enough funding at disposal at the right time to perform project activities that mark the way to the completion and success of the project. Accordingly, in project management view, choosing the proper financing mechanism helps ensure the sound execution and success of an infrastructure project.

The slow development of infrastructure facilities in developing nations stems from many factors, from political, economic, financial, to environmental causes.[2] One main reason is the fact that the local governments have limited budget or do not have the incentive to invest in the public infrastructure. The latter can, in turn, be linked to corruption problems in the developing countries.[3] Another critical factor that slows the infrastructure development in the developing world is the limited alternative financing sources, given current constraints on traditional sources of public and private financing.[4] In construction projects, the EPC (engineering, procurement, and construction) phase is often risky. Banks have become more careful when making a loan decision, and their lending capacity has grown limited since the Great Financial Crisis in 2008.[5] The riskier the project is, the higher the debt financing cost.

Consequently, debt financing is not an ideal option for poor governments. Finally, the lack of technical expertise and managerial competency in managing infrastructure projects also impede the infrastructure development in the emerging economies. These factors combine to give rise to the need for an innovative financing mechanism that serves to address these causes of the problem the tradition government budget financing has failed to solve.

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How to cite this paper: Lohawiboonkij, S. (2019). The Best Project Financing Option for Infrastructure Projects in Developing Nations, PM World Journal, Vol. VIII, Issue I (January). Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Lohawiboonkij-best-project-financing-options-for-infrastructure.pdf

Editor’s note: This paper was prepared 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, at [email protected].

 



About the Author


Sisira Lohawiboonkij

Thailand and Paris, France

 

 

 

Sisira Lohawiboonkij is from Thailand and currently an MSc student in Project, Program & Portfolio Management and Business Development at SKEMA Business School in Paris, where she had a Contract Management course under the tutorage of Dr. Paul D. Giammalvo, an active member of Guild of Project Controls. She has a Bachelor’s Degree in Business Administration and Finance from Ludwig Maximilian University in Munich, Germany where she, after graduation, worked in Finance at Deutsche Bank as a Financial Analyst. Afterward, she embarked on another career path in Education Technology at Klett Group in Stuttgart where she worked on a school administration software project until 2018 before moving to Paris to pursue a Master’s Degree in Project Management. She is also an active member of PMI® and The Guild of Project Controls.

Sisira has recently attained various Project Management-related certifications, such as CAPM, Lean Six Sigma, AgilePM, PRINCE2, and IPMA Project Excellence certifications. She is currently based in Paris, France and can be contacted at [email protected]

 

[1] Woetzel, J., Garemo, N., Mischke, J., Kamra, P., & Palter, R. (2017, October). McKinsey Global Institute Bridging Infrastructure Gaps – Has the world made progress? Discussion Paper in Collaboration with McKinsey’s Capital Projects and Infrastructure Practice. Retrieved from https://www.mckinsey.com/~/media/mckinsey/industries/capital%20projects%20and%20infrastructure/our%20insights/bridging%20infrastructure%20gaps%20has%20the%20world%20made%20progress/bridging%20infrastructure%20gaps%20how%20has%20the%20world%20made%20progress%20v2/mgi-bridging-infrastructure-gaps-discussion-paper.ashx

[2] Root cause analysis by author (Figure 1)

[3] Hausmann, R. (2018, April 30). The PPP Concerto. Project Syndicate The World’s Opinion Page. Retrieved from https://www.project-syndicate.org/commentary/improving-public-private-partnerships-infrastructure-by-ricardo-hausmann-2018-04  

[4] Inderst, G., & Stewart, F. (2014, March). Institutional Investment in Infrastructure in Emerging Markets and Developing Economies. Public-Private Infrastructure Advisory Facility (PPIAF), 4. Retrieved from http://documents.worldbank.org/curated/en/748551468337163636/pdf/913070BR0SecM20itutional0investment.pdf

[5] Posener, M. (2013, April). Funding options Alternative Financing for Infrastructure Development April 2013. Deloitte, 2. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/au/Documents/public-sector/deloitte-au-ps-funding-options-alternative-financing-infrastructure-development-170914.pdf

 

 

How will the Internet of Things (IoT)

revolutionize contract management for Projects and Programs Management?

 

FEATURED PAPER

By Thibault Kibler

Lille, France

 



INTRODUCTION

The Internet of Things (IoT) is the extension of the Internet to things and places in the physical world. While the Internet does not usually extend beyond the electronic world, the IoT represents the exchange of information and data from real-world devices over the Internet. It takes on a character universal for objects connected to various uses, in the field of e-health, home automation, retailed and so forth. Every company starts looking into it; it is an incredible golden goose. Starting from Google to Apple, start-ups or SME, everyone is now running for IoT.

 

Figure 1: What is IoT?[1]

Previsions said that by 2025, there would be 75.4 billion connected devices, equivalent to 10 IoT devices for every person on earth. It looks great. It can also be applied in companies, for example in the supply chain. It shows that it can increase the performance by 36%! This medium is undoubtedly incredible, and the booming is understandable. With more and more IoT devise, some questions start to rise such as data security, cyber attack, hacking, and so on. Now imagine that just by clicking on an object you sign a contract, how is this referred to? Can IoT devices function as agents? Meaning, are they legally allowed to create contracts on a user’s behalf? So many questions and danger, and no real answer.

Following the definition of the Max Wideman’s Comparative Glossary (MWCG), “In project management, that part of an organization responsible for managing a project from inception to closure as evidenced by successful delivery and transfer of the project’s product into the care, custody and control of the Client or Customer”[2]. It is now clear that during the process of project management, time should be allocated to contract management! Because there is no real law yet on IoT, the contract management team aims to find a solution to frame it, every danger for the contractor must be analyzed to protect him, and on the overhand, contractees are not aware of the danger or internet. At a larger scale, we can look into program management, here the definition from MWCG: Program management is “the effective management of […]a collection of projects that together achieve a beneficial change for an organization” [3]. Everyone is running to get some cash from the golden goose. Moreover, these are not just simple projects; it is a real program and a change for companies to move into IoT. It is confined not only in one area; every sector is looking for IoT: construction, retail, bank, health, industry, and so forth. You need to be the best to not be flooded by concurrence.

Ten years ago IoT was a blue ocean but nowadays, this is a bit dangerous and scary red ocean[4]. Good and healthy program management is a must have, especially to take care of the data security, the more project you have, the bigger the risks.  Many issues are raising such as:  How should the courts assess the consent of the consumer when contracts are made using IOT devices? How manage all the data generated through thousands and thousands of IoT devices? Consent to mass consumption contracts was, of course, a problem even before the IOT. This has become a bigger problem with wrap contracts – where clicking, dragging and tapping were considered sufficient to sign an online contract. The IoT is threatening to make contractual agreement online even more fantastic with the introduction of e-agents. Each device can be a contract, and the consumer does not know it. “The more removed the consumer is from the act of contracting and the harder it is to access the actual terms, the less real the consequences of that contract seem”[5]. How will you react if by just clicking on an app you are accepting that a company can use the tape of your connected camera? IoT is starting to get out of control: at the most basic level, many IoT devices have not incorporated computer security or hacking risks into their design. This leaves many weak points and flaws through which hackers and other cybercriminals can infiltrate information systems. Over the past two years, AT & T’s[6] (American company) security operations center has experienced a 458% increase in IoT device vulnerability assessments.

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How to cite this paper: Kibler, T.G.A. (2019). How will the Internet of Things (IoT) revolutionize contract management for Projects and Programs Management? PM World Journal, Vol. VIII, Issue I (January). Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Kibler-how-will-internet-of-things-revolutionize-contract-management.pdf

Editor’s note: This paper was prepared 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, at [email protected].

 



About the Author


Thibault G.A. Kibler

Lille, France

 

 




Thibault Kibler
is a 5th year student at Iteem in France. It’s an entrepreneurial graduate school providing a dual competence in engineering and management and a 5-year Master’s degree awarded jointly by Centrale Lille and SKEMA Business School. He is also doing a double degree with Skema Business School: “MSc Project and Programme Management & Business Development”.  He made also some certifications: Prince2 Certifications, Agile certification and TOEIC certification (with a score of 955, equivalent to C1 English-level). He made an 8-months internship in London at Bouygues Construction UK in Linkcity, the real estate development subsidiary of Bouygues Construction.  He was UK referent for IoT and create a brand-new offer for student housing. He was also member of several association during his studies, in the position of secretary. Because of these atypical experiences, he a strong experience in project management. He is above all someone ambitious, dynamic, organized and sociable. He has the ability to work in team, manage a long-term project and a strong capacity of adaptation.

Thibault lives in Lille, France and be reached at [email protected].

You can have further information about his experience or contact through his Linkedin profile: https://www.linkedin.com/in/thibaultkibler/

 

[1] Abendroth, B., Kleiner, A., & Nicholas, P. (2017). Cybersecurity policy for the internet of things. Microsoft.

[2] Wideman Comparative Glossary of Project Management Terms v5.5. (n.d.). Retrieved from http://www.maxwideman.com/pmglossary/PMG_P16.htm#Project%20Manager

[3] Wideman Comparative Glossary of Project Management Terms v5.5. (n.d.). Retrieved from http://www.maxwideman.com/pmglossary/PMG_P11.htm#Program%20Management

[4] More information about this marketing strategy:  Kim, W. C., & Mauborgne, R. (2016). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant.

[5] Is Contract Law Ready for the Internet of Things? – Contracts. (2016, December 5). Retrieved from https://contracts.jotwell.com/is-contract-law-ready-for-the-internet-of-things/

[6] AT&T® Official – Entertainment, TV, Wireless & Internet – 6.4. (n.d.). Retrieved from https://www.att.com/

 

 

New Mechanism

for BOT Contract Dispute Resolution in China

 

FEATURED PAPER

By Yuan Yuan

China and France

 



ABSTRACT

Nowadays, the BOT project became the core infrastructure construction method in China. Because of the complexity of the BOT project, there will be many different disputes along with the project construction. Especially, most disputes came from the contract. Therefore, the purpose of this paper is, to propose a new mechanism of the BOT project to maximize efficiency to resolve contract disputes and make BOT projects develop sustainably. ADR is a common way to solve the disputes in different area. Therefore, based on research and study kinds of relevant literature. This paper presents Alternatives Dispute Resolution as the main solution as well, and to find out the best dispute resolution in ADR process of BOT project by combining the characteristics of the BOT project.

In order to find out the best resolution. Firstly, to select relevant attributes which based on literature analysis and review, these are critical indicators in project dispute in China. Secondly, to explore five alternatives in the ADR process, and analyze the outcomes and features. Finally, based on six critical attributes to make comparisons with these five alternatives by using different methodologies. Finally, after deep and close comparisons, to find out the prevention as the best resolution and summarize the best dispute resolution process of the BOT project at the same time.

Keywords: BOT, infrastructure, the disputes in China, ADR, Prevention, Mediation

INTRODUCTION

In recent year, with the rapid development of China’s economy and the improvement of infrastructure demand. China began to refer to the construction results of the BOT (Build-Operation-Transfer) model in Western countries, and gradually began infrastructure construction in China with the BOT model. To encourage private enterprises, private capital to cooperate with the government and participate in the construction of public infrastructure is a new urbanization development strategy in China. The BOT project has had significant developments in China, and it is called ‘Concession’ project as well. The Chinese government actively guides and encourages social capitalists to participate in construction projects with incentive policy and forms a sustainable capital investment mechanism. The Concession Agreement is a typical contract of the BOT project. It refers to two parties. One is the government, and another is the franchisees. Most franchisees could be a project company at the end of the BOT project.

Although the BOT projects have been adopted in the field of infrastructure construction widely. Because of the imperfect law in China, it is inevitable to has the disputes in BOT contract. Especially, to solve these disputes requires a long process and high cost, so that the private capital does not intend to participate in the BOT project, they cannot have an adequate return. From 2013 to 2016, BOT disputes increased by 71%. According to statistics, there are 85.54% of civil cases, 2.7% of administrative cases and 11.76% of criminal cases. Civil cases mainly include contracts, property, infringement and financial disputes, of which contract disputes accounted for 78.22%.[1]

In China, there has been much controversy over how to resolve the BOT project disputes. Therefore, in this research, to analyze and build a new mechanism is vital to solving the disputes in BOT contract disputes.

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How to cite this paper: Yuan, Y. (2019). New Mechanism for BOT Contract Dispute Resolution in China, PM World Journal, Vol. VIII, Issue I (January).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Yuan-bot-dispute-resolution-in-china.pdf

Editor’s note: This paper was prepared 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, at [email protected].

 



About the Author


Yuan Yuan

China and France

 

 

 

Yuan Yuan is a Master of Science (MSC) student in SKEMA business school, majoring in Program Project Management and Business Development. She used to work for China Lustre United Consulting Llc. Participated in some PPP projects consulting work, and have a good experience of PPP project. In 2018, She participated in the performance evaluation of special funds of Yunnan Province Industrial Information Development Committee. After that, she as a consultant to participate in the preparation of the China Financial Performance Evaluation Operation, thus, she has an excellent ability of project performance management aspect. She is highly recommended by the project manager, as executor, and project team leader.

Yuan Yuan lives in China, and France. She can be contacted at [email protected]

 

[1] Supreme People’s Court Monitor. (2018.3.21). Public-private partnership disputes in the Chinese courts. Retrieved from https://supremepeoplescourtmonitor.com/2018/03/21/public-private-partnership-disputes-in-the-chinese-courts/

 

 

Exploring Event Project Cancellations

through the Multi-Attribute Decision Making Models

 

FEATURED PAPER

By Janette Chea

Paris, France

 



Abstract

Event management has always been one of the biggest challenges when it comes to managing a project because it is one of those sectors where the risk of cancellation is omnipresent. Because of this reason, event planners must protect themselves against the risk of excessive cancellation that could results to non-payment. A cancellation clause defines what can be considered as a valid cancellation and protects the work that has been done. Given this definition, this paper aims to determine the best options for event planners to prevent their works from cancellation. As many different contract clauses exist, this analysis relies on the Multi-Attribute Decision Making Models to compare them and to provide complete information to help Event planners to choose the best options that can protect them from cancellation. Resulting from this analysis, the cancellation clause is considered as the best option but event planners should always optimize its protection and it is recommended to use several protection clauses.

Keywords: Contract cancellation, Event management, Cancellation clause, Event planning, Terms and conditions, Indemnification, Contract negotiation

Introduction

Project management can be compared to the preferred option to create, acquire, update, maintain expand and eventually dispose of organizational asset1. Event management has always been one of the biggest challenges when it comes to project management, it includes project management’s five keys processes: the initiation process, the event planning process, the executing process, the monitoring and controlling process and the event closing process. Through these steps, the project manager of the event, also known as the project manager, will have to plan the event, create it, control it and maintain it using the available resources or assets.

An asset is a tangible or intangible resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit [1], and by using those, the project manager of the event does expect to gain a certain benefit at the end of the event.

But event management has always been one of the biggest challenges when it comes to project management. This is due to the uncertainty of the sector, as the project does not always goes as the project’s manager plan and has a large scope of risk. The Guild of Project Control gives a definition of risk as “a probability or threat of damage, injury, liability, loss, or any other negative occurrence that is causes by external or internal vulnerabilities, and that may be avoided through preemptive action[2]. Given this definition, it is understandable that the risk of cancellation in an event project can be avoided thanks to anticipated action done by the event manager. This is why the project manager needs to take into account all the risks that could happen and prevent the good proceedings of the event to avoid cancellation or re-scheduling. We can never know how things are going to be, and it is impossible to plan an alternative to every situation that could negatively affect an event. As a consequence, events do not go as planner and could, thus, even be cancelled.

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How to cite this paper: Chea, J. (2019). Exploring Event Project Cancellations through the Multi-Attribute Decision Making Models, PM World Journal, Vol. VIII, Issue I (January). Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Chea-exploring-event-project-cancellations-featured-paper.pdf

Editor’s note: This paper was prepared 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, at [email protected].

 



About the Author


Janette Chea

Paris, France

 

 

 

Janette Chea is a 23 year old French student currently completing a Master of Project and Program Management and Business Development degree at Skema Business School.  She has a multicultural profile thanks to her Asian origins, her education in France and multiple experiences abroad such as an internship of several months in London. She is able to speak 4 languages: French, English, Mandarin Chinese and Teochew Chinese. She is now aiming at an international career for the future and is interested in opportunities in Project Management. She has always been willing to learn and develop her skills and started to work at a young age.

After working for many years in the retail sector, she also got the opportunity to work as an assistant manager before doing an internship in London as an Office Manager and Business Developer in an International Company. It gave her the opportunity to manage her own team and to develop a good sense for business. These multiple experiences allowed her to improve her organizational skills, her self-confidence, her communication and interpersonal skills and to develop a keen eye for details.  In line with her career development, she is looking for opportunities in France as project manager in an international environment.

Janette Chea can be contacted at [email protected][email protected] or https://www.linkedin.com/in/janettechea/

 

[1] Guild of Project Controls Compendium and Reference (2015, November 02). Managing project controls. Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls

[2] Guild of Project Controls Compendium and Reference (2015, November 02). Managing project controls. Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls

 

 

What are the affirmative defenses

to a breach of contract for Project Managers?

 

FEATURED PAPER

By Raphaël de La Salmonière

Paris, France

 



Abstract

Uncertainty is a major component of project management, as in contract management. Therefore, since the numbers of breach of contract are so constant and high, it is relevant to try to diminish the uncertainty caused by these breaches through the prism of defenses to a breach of contract a company can use.

However, each breach can be defended with various defenses which have themselves advantages and drawbacks.

To determine and explain the leading causes of breach, and what are the best solutions included in affirmative defenses, we will use several tools such as the root cause analysis, qualitative and quantitative methods. The results brought by the models will help a Project Manager to determine which affirmative defense is the most likely to suit their different problematics according to the characteristics of each alternative.

Keywords: Breach of contract, defendants, contracts, lawyer, faults, complainant, affirmative defenses.

Introduction

Have you ever been tempted to breach a contract with one of your employees? Companies do that all time and between them. In 2018, “Brickstreet Mutual Insurance Company sued A & B Logging LLC for breaching a contract because of a non-payment”[1]. In 2015, in a whole different sector, “Maintenance Enterprises sued Orascom E&C USA”, two American companies, “for a breach of contract”[2] due to their bad practices and their refusal to supply them with materials. To be more exhaustive, statistic highlighted that since 2002, the percentage of failure of contracts oscillates between 20% and 30% per year[3].

Indeed, every arrangement between two parties must be translated into a tangible contract. Conducting a project without can lead to disastrous consequences. However, situations can be worst. Imagine, driving a project when suddenly, the other parts brutally stopped their works, and blame you for this unbearable situation. In fact, there isn’t any project that can be interrupted without damages. Strangely, the high proportion of breach of contract makes this situation quite common. Those cases of breach of contract are known as judicial litigation and are solved in court. The penalties generated by these lawsuits is counted in hundreds of millions or more. However, these practices are far from unusual in business and they cost a fortune to companies each year.

Therefore, Project Managers must integrate into their practices that a breach of contract is a plausible eventuality concerning the end of their project. An eventuality that implies many hazardous consequences and these consequences may be anticipated during the project. A project manager must set up boards of control to avoid getting trapped into an unexpected end of their project. The project, defined as a process for conducting  work that produces a new product of one sort or another. However, the other point of view would be to consider a breach of contract as a strategic move. Either way, Project Manager would benefit from learning how to properly risk manage their projects.

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How to cite this paper: Salmonière, R.d.L. (2019). What are the affirmative defenses to a breach of contract for Project Managers? PM World Journal, Vol. VIII, Issue I (January). Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Salmoniere-affirmative-defenses-to-breach-of-contract.pdf

Editor’s note: This paper was prepared 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, at [email protected].

 



About the Author


Raphaël de La Salmonière

Paris, France

 

 

 

Raphaël Goguet de La Salmonière is a student of Project and Programme Management and Business Development in Skema Business School (Paris, France). He started his university studies with a bachelor’s degree in financial markets. He has various professional experience in wealth management, press agency, or database reliability. His experience in project management started during his bachelor studies when he created and directed a market finance association with 30 members during 2 years. Soon he will be AGIL & Prince2 certified.  He can be contacted at [email protected]

 

[1] Insurance company sues an employer for breach of contract (12/10/2018) West Virginia Record. Retrieved from https://wvrecord.com/stories/511590842-insurance-company-sues-employer-for-breach-of-contract

[2] Louisiana contractor wins $62M in a lawsuit against $3B southeast Iowa fertilizer plant’s general contractor (15/10/2018) Associated Press. Retrieved from https://eu.desmoinesregister.com/story/money/business/development/2018/10/15/louisiana-contractor-wins-lawsuit-against-orascom/1655486002/

[3] Why do contractors fail? (2015) retrieved from https://c.ymcdn.com/sites/www.surety.org/resource/resmgr/learnaboutsurety/why_do_contractors_fail.pdf