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The Entrepreneurial Project Manager

 

BOOK REVIEW

Book Title: The Entrepreneurial Project Manager
Author:  Christopher Cook
Publisher: CRC Press, Taylor & Francis Group, Auerbach
List Price: $69.95
Format:  Hardcover, 196 pages
Publication Date:  August 2017   
ISBN: 978-1-4987-8235-7
Reviewer: Patt Chowdhury, MBA, MM, CAPM®
Review Date: September 2018

 


 
Introduction

Based on the title, I expected a book with a formula or blueprint for a new approach to managing both a project and a project team.  After reading it, I found this wasn’t exactly the case. The author has a unique perspective.

The author views the entrepreneurial mindset as the best approach for any project manager. This means that project managers will be as dependent upon on common sense, their life lessons, and observations of a variety of philosophers, elementary school teachers, pets, business leaders, sports figures and well-known athletic coaches as they are on the PMBOK. This sort of thinking will uncover opportunities for problem seeking, problem solving and professional growth for project managers engaged in traditional, agile and hybrid projects.

Overview of Book’s Structure

This book is arranged into 12 chapters of three to 16 sections that illustrate the theme of the chapter title but may not relate in any particular way to the other chapters. The assortment of topics provides insight to a wide variety of approaches, situations, and challenges. The common thread among the chapters is that most discuss Stoicism, Taoism and Sales.

Chapter 1:   Introduction
Chapter 2:   Traditional Mindset
Chapter 3:   Entrepreneurial Mindset
Chapter 4:   Organizational Strategy
Chapter 5:   Exploit Challenges
Chapter 6:   Entrepreneurial Agile Management
Chapter 7:   Pessimistic Optimist
Chapter 8:   80/20 Technique
Chapter 9:   Internalize Failure and Success
Chapter 10: Speaking and Influencing
Chapter 11: It Is What It Is Not
Chapter 12: Giving Back

Highlights

Philosophy is this author’s guidepost; he opines that “…philosophy provides the mental tools to handle most situations.” (p.5) He is also of the belief that while philosophy teaches us how to handle most people, sales skills teach us “…how to get what we want from those individuals.” (p.7)

Along with the maxims of Stoicism and Taoism, there are a number of everyday references, from a wide range of sources, that he believes project managers can add to their arsenals of tools and techniques to bring their projects in on time and on budget.  He discusses the 80/20 rule and removing emotions from decision making; identifies and explains a variety of biases with which we deal; the importance of keeping things simple; methods of critical thinking with de Bono’s Six Thinking Hats; and the importance of being human and the importance of recognition. Most project managers can draw from these lessons.

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About the Reviewer


Patt Chowdhury
, MBA, MM, CAPM®

North Texas, USA

 

 

 

Patt Chowdhury, Managing Principal and Consultant at Patt Chowdhury Advisors LLC, is a marketing executive and cross-functional senior manager with extensive experience in program and project management, marketing operations, product management, process development and information technology at iconic Fortune 500 brands in the information technology and travel and transportation industries. She is an adjunct faculty member at the University of Dallas Gupta College of Business where she teaches marketing and management courses in the MBA and MS programs. Patt is a Certified Associate in Project Management (CAPM®) and a Six Sigma Black Belt. She is a member of the PMI Dallas Chapter where she serves as Director, Lunch and Learn Program Series.

Patt can be contacted at [email protected]

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Borderless Leadership

 

BOOK REVIEW

Book Title:  Borderless Leadership: Global Skills for Personal and Business Success
Author:  Zlatica Kraljevic
Publisher:  CRC Press
List Price:  $62.96
Format:  Hardcover, 224 pages
Publication Date:  May 2018
ISBN: 9781138591493
Reviewer: Dr. Charles Y. Chen, PMP
Review Date:  August 2018

 



Introduction

Studies consistently show how international partnerships between organizations fail, mostly to the lack of trust among people at all levels of the organization. This is also seen in leading and managing a multi-national team. After all, ignoring culture sensitivities raises imperceptible barriers that kill trust and relationships that otherwise may have been fruitful. Borderless Leadership describes the five-step methodology to develop the right mindset in how we see the world. Using real-life examples, the author illustrates how one can build the trust and rapport with strangers of a different nationality and culture background and establish the kind of relationships that help the business.

This is a timely book not only because the Western world looks at the fast-growing emerging markets as future profitable opportunities, but also the western workplace has become more heterogeneous. Understanding the differences that exists between the ways that the West and other cultures conduct business is ever more important.

Overview of Book’s Structure

This 9 chapter book is divided into five parts: awareness, understanding, knowledge, internalization, and practice. Each part discusses a new skill required to better understand the multi-national surroundings in the world that we live in today. The five parts are summarized as follows:

  • Awareness represents the impact of the transformation of the global market in the last two decades on traditional business. The author discusses techniques of how to look upon others as individuals with interest and needs likely to be very similar to your own, even though he / she may be of a different nationality.
  • Understanding describes how the world has changed from the 20th to the 21st century. The author offers the benefits of capturing the essence of the realities, interests, and needs of those you meet.
  • Knowledge advances a new approach to seeing the world so as to enhance your decision making skills. The author points out the negative impact of our own personal false bias and misconception of others, and how to mitigate them via reasoning.
  • Internalization exemplifies how leaders can effectively apply their updated view of the world to achieve success in a multinational marketplace.
  • Practice describes a wide range of real-life situations that the author experiences visiting a foreign country.

Highlights

The author draws upon her decades of international business experience and distilled it into a five-step paradigm of business skills and practices. The book provides concrete and compelling examples of business successes and failures in light of this paradigm. Most importantly, Dr. Kraljevic highlights the changing global dynamics and challenges facing leaders today. For example, one of the primary barriers to developing trust and rapport with foreign nationals is our lack of familiarity with other culture and the apprehension and anxiety associated with the unfamiliar.  This is also true in a heterogeneous workplace where the team is composed of multi-national members all with a different cultural background.

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About the Reviewer


Dr. Charles Y. Chen

Texas, USA

 

 

Dr. Charles Y. Chen, PMP has had the privilege of leading teams of engineers and scientists to transform ideas into viable products. His career began at Northrop Grumman, initially as a systems engineer and then as a program manager, he led matrixed teams of engineers to innovate, mature, and produce new electronic sensor technologies and algorithms. Energetics Incorporated introduced Charlie to the world of management consulting. Initially as a director then as the Chief Strategy Officer, he led teams to help clients transition ideas developed in the laboratory to the marketplace, overcoming the so-called valley of death. At Hover Energy, Dr. Chen led the key activities to build a new wind turbine designed for the urban environment. He is currently an Engineering Fellow and a member of the Chief Technologist’s Technical Staff at the Raytheon Company.

Dr. Chen received his B.S. and Ph.D. degrees in Electrical Engineering from Cornell University. He received his Executive Education from University of Chicago Booth School of Business. As a PMP, he looks forward to leading his next team to achieve the impossible.

Email address: [email protected].

https://www.linkedin.com/in/charlesychenphd/

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Achieve PMP Exam Success

 

BOOK REVIEW

Book Title:   Achieve PMP Exam Success, 6th Ed: A Concise Study Guide for the Busy Project Manager
Authors:  Diane Buckley-Altwies, PMP; Diane White, PMP
Publisher:  J Ross Publishing
List Price:  $79.95
Format:  Soft cover, 526 pages
Publication Date: 2018
ISBN: 978-160427-152-2
Reviewer: Robert Goldstein
Review Date: Aug 2018

 



Introduction

The book Achieve PMP Exam Success 6th Edition, together with the PMP PMBOK Guide, has been written to help prepare for the successfully passing of the Project Management Professional (PMP) Certification Exam.  The book provides “A Concise Study Guide for the Busy Project Manager”

Overview of Book’s Structure

The book covers all subjects addressed on the PMP exam.  Each Chapter of the book is focused on key concepts covered on the exam:

  • Understanding the role of the Project Manager
  • Integration Management
  • Scope Management
  • Schedule Management
  • Cost Management
  • Quality Management
  • Resource Management
  • Communication and Risk Management
  • Stakeholder Management

Highlights

  • The first chapter of the book contains a 50-question assessment.  It is suggested by the authors to complete the assessment before proceeding with additional chapters in the preparation guide.  The assessment is designed to help the student focus on areas that require additional knowledge.  Students should still consider skimming other chapters for completeness.
  • A 50-question final exam is included that helps the student determine if they have  a good understanding of the material presented in the book.
  • The book helps to build skills focusing on using tools and techniques used in project management.  An understanding of how the tools can be used to manage projects is presented throughout the study guide.
  • Each chapter is structured to provide a list of tasks needed to pass the PMP exam.  The authors utilized input on passing the exam from:
    • Their experience helping others prepare for the exam
    • Input from workshop participants that they felt were useful in passing the exam.
  • The study guide’s objective is to add value to the to the PMBOK Guide through explanations and examples. The book should not be considered  a replacement for actual PMPBOK Guide.

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About the Reviewer


Robert Goldstein

Texas, USA

 

 

Robert Goldstein is a highly accomplished and results-oriented information technology executive with demonstrated expertise in system design/implementation, Agile/Scrum methodology, IT security, infrastructure design, data/voice design, KPIs, data center design, business reengineering, regulatory compliance/auditing, business intelligence, and healthcare cost accounting.

Robert can be contacted at [email protected]

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Agile Approaches

 

BOOK REVIEW

Book Title: Agile Approaches on Large Projects in Large Organizations
Author:  Brian Hobbs & Yvan Petit
Publisher:  Project Management Institute, Inc
List Price:  $24.95
Format:  Softcover, 133 pages
Publication Date: 2017
ISBN: 978-1-62825-175-3
Reviewer: Thomas Goller
Review Date: September 2018

 



Introduction

This book tackles a topic for which not much research and information is available, how the Agile methodology has been applied to large projects in large organizations and challenges faced by those projects and organizations.  The authors have completed some excellent research and the book is the sharing of the research and conclusions based on their analysis.  Also included are the actual surveys used and an extensive list of references which will be of interest to the reader desiring a deeper dive into areas and topics discussed.

The analysis of existing literature shares a brief overview of Agile and potential benefits that entice companies to use Agile as well as the challenges associated with transformation, company investment, implementation of the methodology, teaming, existing management practices/culture and requirements management.  This produces the context for the case studies and questionnaire used for research.

The research methodology and empirical results are presented, and definite themes emerge that large organizations with large projects will want to be aware of, especially if they are planning or in the process of implementing Agile.  The depth of the analysis will raise important questions in the reader’s mind and provide insight into challenges they face within their organization.

Overview of Book’s Structure

Starting with a brief but effective overview of the Agile methodology, a base understanding is provided which provides the reader with a foundation to effectively interpret the remainder of the book.

Sharing the details of the research premise, organizations targeted, results and the actual questionnaire is done in such a way that it flows very nicely.  The style in which it is presented is extremely informative and enjoyable as it builds upon what was read earlier.  In addition to the research, the authors share insights into deeper aspects to consider which are especially useful in the reader is in a transition situation and especially if they are leading such a transition

This is followed by a discussion and conclusion section which brings the research filled journey to a completion and insights into where to go next with future research.

The book then closes with the actual questionnaire used and references section which will prove invaluable as the reader will likely thirst for more facts.

Highlights

The book takes on a daunting topic, the challenges faced when the Agile Methodology (which is extremely effective in small to medium sized environments) is applied by large organizations for large projects.  The challenges associated with scale are not to be underestimated and go beyond how to guides, training challenges, and the issues associated with the project.  There are very real challenges associated with transformation, culture, investment and leadership in large organizations that have equally large consequences.

To provide real insight, research an analysis of existing literature as well as case studies and questionnaire results across a broad enough sample is required.  The authors leverage existing literature and research to formulate a very solid understanding of the challenges faced by large organizations and large projects.  The authors provide real data, real analysis to show the seriousness of the challenges and potential impacts.  Key data points are correlated across the case studies and questionnaire feedback with an explanation on how they relate and support the premises stated in the book.

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About the Reviewer


Thomas Goller

Texas, USA

 

 

 

Thomas Goller is a PMP certified project manager who holds a Bachelor’s degree from the University of Colorado.  Mr. Goller has over 25 years of experience in the communications industry ranging from R&D Product Development to Operations and IT projects.   He has been privileged to lead teams from 5 to 800, using both Waterfall and Agile methods, and helped successfully transition from Waterfall to Agile for an organization of over 500 engineers.  Mr. Goller’s current project is a pilot project which starts the transition to Agile for his current organization.

Thomas can be contacted at [email protected]

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Megaproject Organization and Performance

 

BOOK REVIEW

Book Title: Megaproject Organization and Performance: The Myth and Political Reality        
Author:  Professor Nuno Gil; Dr. Colm Lundrigan, PhD; Professor Jeffrey K. Pinto; Professor Phanish Puranam
Publisher:  Project Management Institute (PMI)
List Price:  $34.95 USD
Format:  Soft Cover, 170 pages
Publication Date: June 2017
ISBN: 978-1-62825-176-0
Reviewer:  Sharon R Holland, PMP, PgMP
Review Date: September 2018

 



Introduction

Success for any project is measured by its performance and achieved outcomes.  Megaproject Organization and Performance provides insight into the performance challenges encountered on megaprojects, primarily involving infrastructure builds where land acquisition is a component.  The insights shared in this book can, however, give project and program managers, of any large undertaking, ideas and techniques for recognizing, adjusting to and counter acting performance challenges related to stakeholders, and the resources and influence they bring.

Overview of Book’s Structure

Megaproject Organization and Performance consists of five case-study like chapters that attempt to apply mega-organization performance theory to megaproject organizations.  Each chapter provides background on the megaproject being studied, the data collection process, the analytical approach taken by the study group, and a summary of their findings.

Chapters one, through four, focus on real megaprojects in the UK.  It introduces the challenges and complexities of an environment with multiple strategic decision makers that bring their own perspectives of the design and long-term usability of the final product.  It further considers their impact to strategic decisions, and the related performance measures, due to the addition of new members to this core group.

Chapter five switches focus to megaprojects in developing economies where governmental regulations and societal norms are very different from those of more developed nations.  These norms include more opaqueness, and other core group complexities, that result in ever-shifting balances of power and attempts to gain control over project outcomes.  The impact of the absence of foundational rules of fairness is seen in the difficulty of gaining consensus on the product’s scope, and the resulting significant slippages in completion dates and budget.

Highlights

The book introduces the concept of the Core (pluralistic strategic layer) vs. Peripheral stakeholders (implementation layer).  MegaProject Organization and Performance discusses how the core is formed, and reformed; and how the process of formation can impact strategic decisions which in turn impact implementation.  It considers how the need to obtain decision-making evidence, from the peripheral stakeholders, leads to entering contracts early in the strategic process which inherently locks in design choices that are likely to result in change orders later.

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About the Reviewer


Sharon Holland

North Texas, USA

 

 

Sharon R Holland, PMP, PgMP has led projects and programs of all sizes.  She began her career as a programmer with a small financial services software company, where she immediately began managing small projects.  She received formal project management training and significant experience while with Cap Gemini.  With her current employer where she has tenure for 15+ years, and has established PMOs and enterprise resource management, has managed mulitple programs and numerous projects.  Sharon has also facilitated the strategic planning process for two non-profit organizations.  She currently serves on the board of directors for one of those non-profits.

Sharon earned a B.Sc. in Comptuer Science from the University of North Texas and an M.Sc. in Information Systems Management from Boston University.  She earned the Project Management Professional (PMP) designation in May 2000 and the Program Management Professional (PgMP) designation designation in October 2017.

Sharon can be contacted at [email protected] or www.linkedin.com/in/sharonrholland

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

The Age of Agile

 

BOOK REVIEW

Book Title:  The Age of Agile: How Smart Companies are Transforming the Way Work Gets Done
Author:  Stephen Denning
Publisher:  American Management Association
List Price:  $28.00
Format: Hard cover, 336 pages
Publication Date: Feb 2018
ISBN: 9780814439098
Reviewer:  Alvin Keen, MBA, MPM, SCPM, LSSBB, GB, CCIM, CFM, FMA
Review Date:  August 2018

 



Introduction

The Age of Agile is a book that is very relevant and applicable for all industries that are dealing with change in their markets, customers, competition regarding product development, implementation, support and continued evolution of product lines.   It addresses how Agile evolve in the software industry and is both morphing and impacting product lines (both hardware and software) in other industries as to the rate of product development and implementation timelines.

As one reads Agile, you will think of many firms that floundered, failed, and equally many that are presently struggling transforming their organizations and products to be more Agile for increasing customer demands.   The customer now no longer has longevity in loyalty with products if these do not meet increasing functionality capabilities to support the Customer.  Companies now face competition that can erode established market presence through faster compressed product development and implementing to catch the customer’s attention.   Welcome to the Agile World.

Overview of Book’s Structure

The Age of Agile book is organized into two main sections which are Agile Management and Management Traps.

Section One — we get some background history of Agile evolution in software.   The background of Agile is to harness through collaboration, smaller work pieces, rapid implementation, smaller and tighter team cohesion, and sharing-learning through cross functions (reductions in silo’s) to help fuel the Agile team culture and performance.

The 3 main laws in Agile are identified as:

  • Law of Small Team – smaller autonomous teams, smaller work batches, and adaptive learning attitude
  • Law of Customer – Customer is “now the center” for business universe to focus upon to produce products with the “wow” factor in fit, form and functions for customers.
  • Law of Network – adaptive, evolution, cellular networks for organizing, resourcing, and supporting teams.

Section Two – discusses management traps and how firms deal with these in an Agile climate.  These traps are:

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About the Reviewer


Alvin Keen

Texas, USA

 

 

Alvin Keen has earned a MBA in Finance, Master of Science in Project Management, Stanford Certified Project Manager (SCPM), DOD DAWIA – Level II Program Management and Level II in Contract Management certifications, Graduate of DOD Program Manager College.   He earned Lean Six Sigma Black Belt and Green Belt (LSSBB and GB) and has served in project management in aerospace, oil and gas, and military industries. He currently serves as adjunct professor teaching corporate finance, project management, quality systems, and organization theories.

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Dallas Chapter. Authors and publishers provide the books to PM World; books are delivered to the PMI Dallas Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Managing Project Competence

 

BOOK REVIEW

Book Title: Managing Project Competence: The Lemon and the Loop   
Author: Rolf Medina
Publisher: CRC / Auerbach Publications
List Price: $89.95
Format: Hard cover, 170 pages
Publication Date:  January 2018
ISBN: 978-1-4987-8438-2
Reviewer: David Johnson Jr, Student
Review Date: September 2018

 

 



Introduction

As a college student looking to acquire a degree in Project Management, I loved this book. It was an easy read and very informative on concepts and practices of acquiring and developing new competence. It is a guide to understanding how competence evolves in an organization and gives illustration and tables to make concepts tangible. It is a resource that students and executive professionals alike, will utilize in the daily work environment.

Overview of Book’s Structure

Managing Project Competence: The Lemon and the Loop, is a list book that breaks the information down in two six chapters. The first deals with the different dimensions of competence, while the second deals with the framework for effective competence management. The third and fourth chapters deal with competence as learning arenas and the methodology for generating competence respectively. The fifth chapter is illustrative and deals with the model of project management as a kite and the role of the PMO office. The sixth chapter supplies the do’s and don’ts of competence management in practice.

Highlights

The book starts out by introducing the reader to the concept of the competence lemon. The lemon is broken down into six dimensions of competence, knowledge and experience; personal capability; social capability; leadership qualities; ability to learn; and ability to manage complexity. He also explains factors that impact generating new competence and how it is influenced by context.

The second chapter gives the reader the framework for efficient competence management. It explains core and dynamic competencies, competence management, the competence loop and breaks down the mechanisms associated with the loop. Finally, Rolf Medina supplies the reader with learning strategies to make use of the competence loop.

The real meat of this book lies within the third and fourth chapters. In these chapters, Rolf Medina looks at competence management from a knowledge intensive and project intensive perspective. He introduces a methodology for generating new competence called REPI and discusses how the six dimensions of the competence lemon are associated with reflection, elaboration, participation/practice and investigation. He then explains how to utilize REPI in teaching, coaching, competence development, performance management, and team building.

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About the Reviewer


David Johnson

San Antonio, Texas, USA

 

 

 

David Johnson was Honorably Discharged from the United States Army on November 20, 2013. He served From November 20, 2005 until his discharge as a MOS 12T, Technical Engineering Sergeant. David spent 30 months in Afghanistan conquering the hot sands and austere conditions to perform his job as a surveyor, draftsmen, material tester and quality assurance representative.

Through all of David’s military experience he had to learn, adapt and progress in environments that were new to him. Much like when in the sands of Afghanistan, David is now set upon learning, adapting and progressing in a professional environment.

David is a student member of the Alamo chapter of PMI, San Antonio, Texas. He looks forward to gaining PMP certification upon completion of his degree.

David can be contacted at [email protected]

 

Editor’s note:  Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the Alamo PMI Chapter in San Antonio, Texas. Authors and publishers provide the books to PM World; books are delivered to the PMI Alamo Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Alamo Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.   If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Q&As for the PMBOK Guide

 

BOOK REVIEW

Book Title:    Q&As for the PMBOK Guide, 6th edition
Author: Ray Alton, et al
Publisher: Project Management Institute, Inc.
List Price: $23.95
Format: Spiral Bound, 352 pages
Publication Date: 2017
ISBN: 978-1-62825-461-7
Reviewer: Rodger L. Martin, PMP, ACP
Review Date: October 2018

 



Introduction

The Project Management Institute issued PM Body of Knowledge, 6th edition and started new testing for PMP certification in March 2018.  This book provides Questions and Answer’s on the new PMBOK 6th edition.  It is in a 4 inch by 6 inch spiral bound book, which makes for easy review as flash cards.

Overview of Book’s Structure

The book contains 277 questions and answers with explanations and references to the PMBOK 6th edition.  All 13 sections of the PMBOK have targeted questions.  Since sprinkled into each Knowledge areas are sections for Agile/Adaptive environments, Key Concepts for the Knowledge area, and Tailoring Considerations, there are also targeted questions for those topics.  There is also a question/answer section for the Glossary.

Highlights

What better place to get practice questions than from the organization that prepares the exam?  The questions do not target just the updates.  It is a realistic test preparation situation.  The actual test may only be 200 questions with 175 scored, but the books goes beyond that and provides 77 more questions.

Highlights: What I liked!

The book is purely a set of Questions and a set of Answers.  Not only is the correct answer with a PMBOK 6 reference given, but the associated text from the PMBOK 6 is also given.  Doing practice tests is an excellent preparation to the exam.  There are no extra opinions.  All of the answers are supported by the PMBOK.

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About the Reviewer


Rodger L. Martin, JD, MBA, BSEE, PMP, PMP-ACP

Texas, USA

 

 

Rodger L. Martin has a broad background in business, law, engineering and Project Management, both predictive/plan driven and Agile/adaptive.  He is a retired US Air Force officer and a licensed attorney. He acquired his PMP certification in 2007 and his PMP-ACP in 2015.  He is also a certified Mediator.  He is currently the Book Review Director for the Alamo Chapter of PMI and previously served as the Book Review Director for the Dallas Chapter of PMI.

Rodger Martin can be contacted at [email protected]

 

Editor’s note:  Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the Alamo PMI Chapter in San Antonio, Texas. Authors and publishers provide the books to PM World; books are delivered to the PMI Alamo Chapter, where they are offered free to PMI members to review; book reviews are published in the PM World Journal and PM World Library.  PMI Alamo Chapter members can keep the books as well as claim PDUs for PMP recertification when their reviews are published.   If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact [email protected].

 

 

Best Practices

How to reveal all the potential of Monte Carlo Analysis

 

STUDENT PAPER

By Julie Luso

SKEMA Business School

Paris, France

 



ABSTRACT

Decision making is still a struggling topic for companies. The aim of Monte Carlo Analysis is to answer to it but the goal is still not completely reached. This paper aims to give the key points to improve the use of Monte Carlo Analysis through software to help decision making which is a vital topic. In order to found out those keys we used a multi attribute-decision-analysis comparing different Monte Carlo software. Thanks to this method, we could highlight the importance of the documentations and the help support to permit a full knowingly use of the software by the user. Thanks to a strong help user services that can answer to every questions, it appears that anyone can use a Monte Carlo Analysis and be efficient to his decision-making.

Keywords: Monte Carlo simulation, Forecasting model, Benefit Monte Carlo Analysis, Mathematics for business, Risk assessment, Decision Making, Parameters, Variables.


INTRODUCTION

Omit probable scope and risks and unrealistic optimistic assumptions are responsible for 74% of Cost Growth according to a RAND Study[1]. Naturally, a Cost Growth is an important break for the development of a project jeopardizing it until his total failure. This highlights the need to simulate uncertainties as best as possible to improve the assurance of the success of the project. The main goal of the well-known Monte Carlo Simulation Software (MCS), created and first used by scientists working on the atomic bomb in the 40’s, was to answer at this need. It must help in quantitative analysis and decision making taking in regard the risk thanks to mathematics.

In order to implement it, the user has to follow 6 steps: “Identify the key project risk variables, Identify the range limits for these project variables, Specify probability weights for this range of values, Establish the relationships for the correlated variables, Perform simulation runs based on the identified variables and the correlations, Statistically analyze the results of the simulation run.”[2]

Motivation

In theory, based on his knowledge and his experiences, the user should be able to fill those steps and so properly use the MCS to receive a great forecast of the likelihood of his different options. Thanks to this, the user can forecast risk or try different decision and finally choose the best one according to the different result of the MCS.

The MCS is designed to be easy to use in order to be a great assistant of the decision making. Practically, as the RAND STUDY told us, risk assessment is still a vital and spread issue that many companies are struggling with. So, regarding to this, it is surprising that the MCS built such a strong reputation of success.

Problem definition

There are 2 possible sources of mistakes that can explain a misuse of Monte Carlo Analysis that deceives companies: the software and the human mistake.

Normally, one of the roles of software is to guide the user for a free-mistake right and efficient use. If this role is not made in a convenient way, the risk for a higher mistake that will make a wrong forecast leading to a wrong decision is higher as well. So the 2 possible sources are linked.

To summarize, this paper has been designed to research, analyze and answer the following two questions in order to find a response to these mistakes to help the companies in their decision-making:

  • How can we effectively use and apply Monte Carlo Simulation Software?
  • What can we consider as a good Monte Carlo Software?

More…

To read entire paper, click here

 

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

How to cite this paper: Luso, J. (2018). Best Practices: How reveal all the potential of the Monte Carlo Analysis, PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Luso-how-to-reveal-potential-of-monte-carlo-analysis.pdf

 



About the Author


Julie Luso

Paris, France

 

 

 

Julie Luso, French Swiss of 24 years old, studied at SKEMA in MSc Project and Program Management and Business Development, graduating in April 2018. After 2 years in preparatory class, Julie integrated SKEMA Business School (ranked top 8 France in 2017). The first year in Sophia Antipolis (Nice) was dedicated to association activities adding to the classes. After this, she left France for a few months to live in Thailand for a communication internship and discover a new world.

She came back to school the next scholar year starting by Brazil (Belo Horizonte) in a SKEMA campus to go then for the next semester in China (into the SKEMA Campus in Suzhou) where she participated in a humanitarian association for children before travelling alone during 2 months over there. Julie then used her gap year to return to Brazil for a stronger cultural immersion. To reach that goal, Julie chose to work in a Farm hotel far from famous places to discover a hidden Brazil and to control the language. Enjoying contrasts, after this experience Julie worked for 6 months in Paris Champs-Elysées at Ogilvy Paris, an international advertising agency. Working in the Public Relations unit, Julie was part of a development team working to improve the (e-)reputation of great corporations creating and implementing communication campaigns targeting journalists and influencers and so readers and communities. Following this gap year, Julie started then her MSc. at Skema in Paris.

Currently certificated by AgilePM and Prince2 for PM, Julie has worked during this MSc to actively improve her assets by organizing event like the Video Games day and participating to the *Amazon Campus Challenges 2017 adding to her class, assignments and Thesis.  (*The Amazon Campus Challenge is a challenge that asks by team to find a startup to create and implement its Amazon e-store and make a commercial strategy to boost its sells during 6 months.)

Julie’s main long term goal is to be able to help ethical and environmentally friendly organizations to grow in a complex market as an accomplished and ethical Project Manager. Challenger, passionate, expressive and audacious are her personal assets that will help her to reach her goals.  Julie can be contacted at [email protected] or www.linkedin.com/in/julie-iuso

 

[1]Edward W. Werrow. (1983). Cost Growth In New Process Facilities. Retrieved from https://www.rand.org/content/dam/rand/pubs/papers/2005/P6869.pdf

[2]Marom , S. (2010, July 8). Project Risk Management and the application of Monte Carlo Simulation. Retrieved from http://quantmleap.com/blog/2010/07/project-risk-management-and-the-application-of-monte-carlo-simulation/

 

 

Assumption of Risk

Who Takes Responsibility? Owner? Contractor? Or the Party Best Able to Manage the Risk?

 

STUDENT PAPER

By Marie Osée Tchoyo Agoume

SKEMA Business School

Paris, France

 



ABSTRACT

Appropriate risk management in projects counts for at least 50% of its success. As such, clearly identifying, qualifying, determining the risk probability and giving adequate responses is the base for risk management. However, attributing a risk responsibility between present parties i.e. the owner and the contractor will enable a better control of the risk. The aim of this paper is to show who takes responsibility of a risk between the owner and the contractor. The owner and the contractor can either assume all risk solely, they can share the risk evenly or split it based on which party can best manage the risk. The result of the analyses carried out shows that, it is better to split the risk based on who is best able to manage it or share the risk among both parties, depending on the type of contract and risk.  The paper goes further to give some recommendations on how to reduce risk occurrence.

Keywords: Risk management, Contractor responsibility, Owner responsibility, Project risks, Responsibility, Risks, Parties, Contractor and owner responsibilities, Best able to manage


INTRODUCTION

It is a natural tendency to worry about risks. The PMI define risks as “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.” Therefore, to successfully manage a risk, it must first be identified, assessed, prioritized and later acted for. So, identifying risks in projects helps the project manager to anticipate responses or avoid bad scenarios, that might lead to an early closure of the project. A clear risk owner and risk “actionee”[1] should therefore be identify, to better attribute responsibility between the owner and the contractor.

“A project owner bears the owner rights and owner responsibilities of the project”[2]. The business dictionary defines the contractor as an independent entity that agrees to furnish certain number or quantity of goods, to another independent entity called project owner. As such, there are generally at least two parties in contracts, and depending on the risk type, one or both parties take responsibility, as risks could be potential loss for the project. This can either be the contractor or the project owner.

Moreover, “Project success depends, among other factors, on the ability to successfully manage the interaction between the key stakeholders—namely, the project owners and management team of each project”[3]. It is therefore not bold to say project success highly depend on the ability of both the contractor and the owner to take appropriate corrective actions vis-à-vis a risk in a project, to help reduce its chances of occurring.

However, should the risk occur, someone must take responsibility for it. The project owner or the contractor? The aim of this paper is to answer the following questions:

  • What are the limits of the owner’s responsibility in risk management?
  • What are the limits of the contractor’s responsibility?
  • In which case both parties can manage risk together based on who can best manage the risk?
  • In which case can both parties they can split the risk?
  • What actions should be taken to reduce risk occurrence on both the contractor and the owner side?

The above questions can be summarized into two main questions: Should risk occur in projects, who takes responsibility?

The expected result of this paper is, on the one hand to show the responsibility of each party in risk management approach and on the second hand, to recommend preventive actions to reduce risk for each party.

More…

To read entire paper, click here

 

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

How to cite this paper: Tchoyo Agoume, M. O. (2018). Assumption of Risk: Who Takes Responsibility? Owner? Contractor? Or the Party Best Able to Manage the Risk? PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Tchoyo-Agoume-assumption-of-risk-student-paper.pdf

 



About the Author


Marie Osée Tchoyo Agoume

Paris, France

 

 


Highly motivated to be a good and respected project manager tomorrow, Marie Osée TCHOYO AGOUME is a young Cameroonian who began her studies in her native country, Cameroon, where she got a bachelor’s degree in advertising and a master’s degree in corporate communication and marketing at the Advanced School of Mass Communication. In 2015, she went forward to pursue her studies in France at SKEMA business school, where she is enrolled in a Master’s degree program in project and programme management and business development. She likes working in a multicultural environment as well as facing the challenges of complex projects. In her previous role, she had the opportunity to work in CRM projects as an assistant in customer retention. Her dream is to work with one of the UN humanitarian organisms, as she is very interested in working with refugees, disabled and homeless people.

 

[1] The Risk Actionee is someone who is assigned to carry out a particular action and they support the Risk Owner. (PRINCE2 wiki)

[2] Olsson, N., & Berg-Johansen, G. (2015). Project ownership in theory and practice. Project owners type 1 and type 2.

[3] Krane, H. P., Olsson, N. O. E., & Rolstadås, A. (2012). How project manager-project owner interaction can work within and influence project risk management – (Turner & Mueller, 2004)

 

 

The Importance of Customer Focus

in Project Management

 

STUDENT PAPER

By Nédale Triyeh

SKEMA Business School

Paris, France

 



ABSTRACT

We cannot manage what we cannot measure and that’s the main purpose of this article. Nowadays, the customer’s focus approach during project management is overshadowed by other issues on which project teams will more pay attention. However, it could be really easy and interesting to familiarize Project Managers with some Key Performance Indicators that concern customers and above all customer’s satisfaction. It is possible to use some metrics to highlight and evaluates customer’s loyalty, customer’s happiness and customer’s effort. Through this paper, three scores will be analysed; the Net Promoter Score (NPS), the Customer Satisfaction Score (CSAT) and the Customer Effort Score (CES) to understand their impact and to determine which is the most relevant.

Keywords: Customer focus; customer centered orientation; customer’s loyalty; customer satisfaction; customer relationship management; customer service; customer complaints


INTRODUCTION

There is no successful project without a satisfied customer. Nowadays, customers have more than ever a huge importance in business. The customers are the party who will receive or consume a product or a service. They represent the most unpredictable stakeholder for a company because it is hard to know if the product or the service offered to them will meet their expectations and so if the company will make benefits.

Furthermore, companies consider customers as a whole and not just as individuals. Even if it is true that generally marketing departments and customer relationship management develop special customer oriented actions, it has to be enhanced to ensure to each project and to each company a good understanding about customer’s needs and expectations. For instance, when a Project Manager is asked to create a product and a service, the risks concerning the project will be analysed. And even if the Project Manager is not involved anymore after the project, the product deliverables will be evaluated by the final customers who are also source of expected benefits.

The point is that customer experience does not stop with the sale of the product. Companies need to know how they can enhance their relationship with customers and how they can keep them in long term. It is important to think about how companies can keep its customers in long term. Keeping an old customer is easier and less expensive than getting new ones. Companies have a vested interest in satisfying the customers in all levels and so the satisfaction even after the sale should be strongly considered. It is now well-common to notice a real awareness about the importance of customer service, the way to take into consideration customers’ complaints and the way to care about their opinions

  • Problem definition

Nowadays, different tools have been developed to quantify customer’s satisfaction. But the fact is that each indicator measures this satisfaction in a different approach or each indicator can be measured in different ways. These elements can demonstrate how vague is the method to define clearly the customer’s satisfaction and so, it can halt the Project Managers to be interested in using the customer satisfaction measurement. The goal of this paper will be to demonstrate how efficient these tools can be, and highlight which one could be the most useful for a Project.

How customer orientation is important in projects and contracts to strengthen customer’s loyalty?

Through this research paper, we will try to understand:

  • How it is possible to contribute to customer’s loyalty.
  • See how far this customer’s orientation can be implemented and if it is really efficient.

More…

To read entire paper, click here

 

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

How to cite this paper: Triyeh, N. (2018). The Importance of Customer Focus in Project Management, PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Triyeh-the-importance-of-customer-focus-in-project-management.pdf

 



About the Author


Nédale Triyeh

Paris, France

 

 

Nédale TRIYEH, French, who after 4 years of studies in Public and Business Law is now currently enrolled in a Master Programme Grande Ecole, specialized in “Project and Programme Management and Business Development for Business Excellence” at SKEMA BUSINESS SCHOOL in Paris and also strongly interested in customer relationship management. Several experiences in customer care departments of luxury brands strengthen her willingness to keep a customer focus approach through each Project where she is involved. Nédale can be contacted at [email protected] or www.linkedin.com/in/nédale-triyeh-3b524a108.

 

 

Flexible Contracts for NWOWS Implementation

A Good Idea Only at First

 

STUDENT PAPER

By Clémence Lambin

SKEMA Business School

Paris, France

 



ABSTRACT

New Ways of Working (NWOWs) bring a fresh look to the methods of work, with the great development of teleworking, co-working in third places and non-fixed offices. Their implementation by companies through a project brings a question about the management of contracts with the different stakeholders of this project. We analyse and compare the traditional approach of negotiating contracts, a new approach based on flexibility, and the possibility to create an informal change. This paper shows that even if the project is about a flexible and innovative product/service implementation, the traditional negotiation of every need and outcomes of contracts with every stakeholder is still an appropriate approach.

Keywords: Adapting contract, Project management, Co-working & teleworking, Big company, Flexible contracts, Third places, Change management


INTRODUCTION

In 2011, a study revealed that between 20 and 35% of employees of Anglo-Saxon companies were working at home, according to Felix Traoré. Teleworking is an increasing practice and is considered as part of the New Ways Of Working (NWOWs). NWOWs especially correspond to a global change in the ways of working, promoting flexibility in terms of time, space and management, autonomy, and nomadism.

This model, used to be mostly attributed to start-ups and small companies may be visible with teleworking, co-working and creation of third places for example. Since about a decade, NWOWs (New Ways Of Working) are being more and more implemented in big companies.

In this context, the promotion of these new practices to employees passes through a project in the company. In big companies, it is usually upon the wish of top management or the Human Resources (HR) division, and covers many aspects of the company’s life. Indeed, NWOWs may be implemented for example through the authorizing and / or the promotion of teleworking, co-working in third places or even creating a third place within the company’s building, and the abandonment of fixed offices for employees within the building. These examples constitute the physical and visible aspects of the NWOWs, to which interest is given in this paper.

A project toward NWOWs implies to reconsider existing contracts, and to establish new ones, especially in terms of Information Technology (IT), HR, Procurement and Facility Management. It is thus considered that Contract Management becomes an important part of the said-project. Unlikely, it mostly appears that each department arranges or adapts existing contracts, or creates new ones, by its side. Contract management should then inquire about the changing or new needs consequential of the establishment of NWOWs and then adapt contracts, or create new ones, in collaboration with departments.

  1. Problem definition

To summarize, this research paper aims to analyse and answer the following issues:

  • What areas of companies are the most affected by NWOWs?
  • What solutions may be used to be able to adapt contracts to the needs, quickly and simply?

More…

To read entire paper, click here

 

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

How to cite this paper: Lambin, C. (2018). Flexible Contracts for NWOWS Implementation: A Good Idea Only at First, PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Lambin-Flexible-Contracts-for-NWOWS-Implementation.pdf

 



About the Author


Clémence Lambin

Paris, France

 

 


Clémence Lambin
is a student of Project and Programme Management and Business Development in Skema Business School (Paris, France). She was previously studying hospitality and tourism. She thus combines competences and knowledge about these two domains, to enter the professional life. She can be contacted at [email protected].

 

 

Negotiating a Contract

 

STUDENT PAPER

By Raghu Kuppa

SKEMA Business School

Lille, France

 



ABSTRACT

The paper provides a procedural explanation of how a contract is negotiated. It explains the terms negotiation and leverage, and how gaining leverage is the main outcome of negotiating a contract. The paper looks into various negotiation tactics and analyzes them with reference to a survey. The final goal is to determine the best tactic to perform during negotiation. This is concluded upon the analysis which was done on all the tactics recognized by AMA survey. The paper mainly answers the questions – “what are the tactics followed by negotiators” and which is the best in terms of overall efficiency. A Multi Attribute Decision Making (MADM) based on satisfying conditions is used to approach the problem. A tactic by the name highball/lowball is concluded as the best tactic to follow by a negotiator. The paper also provides a post evaluation and performance monitoring for the result obtained. No negotiation tactic is more influential than the other however, under most of the conditions one of them is likely to perform better over the others if followed properly.

Keywords: Negotiation, Business Contract, Finance & Banking, Mergers & Strategic Transaction, Intellectual Property, Litigation & Disputes, Agreement.


INTRODUCTION

Negotiation is a discussion which aims at reaching an agreement by the contractor and the client. It is a process that is found as a part of contract management. Negotiation becomes a necessity as it is vital that the contractor and the client are on the same grounds when making decisions that can affect an organization or a company. The negotiator might encounter a few problems during negotiation which include falling into a dilemma due to the exposure to a large amount of facts and figures or might sacrifice the negotiation stance due to an unarguable offer.  In the process of negotiation, it necessary to take into consideration the views of the client and make deals that wouldn’t drastically effect the contractor as well. Hence it is vital to follow a certain rules and methodologies to negotiate successfully.

The concept of leverage is an influential part of negotiation. Leverage can be considered as the political advantage a contractor has over the counter-part which can help him/her seize the deal. It is directly proportional to the ability to award benefits to the counter-part. Gaining leverage is the final goal of negotiation. It is important to understand why the client may not agree with the contractor’s position to discover the client’s goals. It is also important to analyze the position of the counter-part. Another leverage point would be to align the contractor’s interest with that of the client’s necessities.

The contractor is compelled to understand the position of the counter-part by understanding the needs of the other party. A major problem is the misunderstanding of the position which might stall the negotiation. Not having a wide range of options might also be a problem because it aids in settling onto an agreement at a faster pace. One of the major problems also include ‘authority of negotiation’. It occurs when the contractor makes a deal with the counter-part without knowing if he/she has the authority to make decisions. This is a massive disadvantage to the negotiator as it is a waste of time and effort. Negotiations can be intimidating. Sarcasm and bully tactics are commonly used to make the party feel inferior and uncomfortable to gain one’s demands. In a negotiation, the purpose is to come to a mutual agreement. At times, aggressive behavior might build up a hostile environment and poor relationships. The two parties might not understand each other’s needs due to a rise in emotions which leads to concentrating on the needs of their own rather than coming to a common ground for settling an agreement.

More…

To read entire paper, click here

 

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

How to cite this paper: Kuppa, R. (2018). Negotiating a Contract, PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Kuppa-negotiating-a-contract-student-paper.pdf

 



About the Author


Raghu Kuppa

Paris, France

 

 

 

Raghu Kuppa is a design engineer currently pursuing a Master’s degree in Program and Project management and Business development in Skema Business School, Paris. He has an experience on managing a design project as the design lead for 2 years and two years as a design engineer at Premium Composite Technologies.  He has also designed high performance racing yachts IRC52, MAXI 72, TRANSPAC 52, MELGES 40 and CARKEEK 40 using polymers and composites and is especially experienced with plastics.

He also worked at Johnson Controls for one year and at L&T for 2 years. He is highly experienced in the field of design and has knowledge of 4 professional design software. He has an overall experience in design including Cars and Nuclear submarines. Most of his projects use carbon fiber as the fundamental material. Raghu has a knowledge of the software Catia V5, Rhino, AutoCAD and the Microsoft tools. He is also an RYA qualified Sailor and has participated in offshore races in Dubai and PRO-AM race from Volvo Ocean Race.

Raghu finished his education in Sanketika Vidya Parishad engineering college, Vizag, India, specializing in Mechanical engineering and has a vital experience in solid modelling, Assembly design, Reverse Engineering and output design.

 

 

The Development for BIM

Contract Management System in China

 

STUDENT PAPER

By Wenting Jing

SKEMA Business School

Paris, France

 



ABSTRACT

Building information modelling (BIM) is the management of information through the whole life cycle of a built asset through three-dimensional visual expression, 4D time, 5D effect and multi-dimensional performance, in-kind control and precise control of the project to increase the contract manager’s control of the project. At present, China(mainland) has not been specifically BIM contract management regulations. (Mainland of China has different management regulations with Hongkong, in this paper the author only analysis situation of mainland.) With the rapid development of China’s market economy, the construction industry has become increasingly prominent in the national economy. In order to give full play to the role of market economy system reform in the allocation of market resources, China need to establish an effective legal system of contract management system.

Keywords: BIM, contract management system, construction project, contract standard regulations, technical operations, contract relationship


INTRODUCTION

Building information modelling (BIM) is the management of information through the whole life cycle of a built asset through three-dimensional visual expression, 4D time, 5D effect and multi-dimensional performance, in-kind control and precise control of the project to increase the contract manager’s control of the project. Construction activities including the initial bidding and maintenance are the series performance combination of construction contracts, its consistency requires a high degree of legal awareness, contract of entire construction project plays an important role in the project management. All rights relationships between the management of each party based on contract, especially the contract management of large-scale construction projects which directly determine the progress of the project.

  1. Problem definition

In order to solve problems of BIM contract management, the American Institute of Architects (AIA) and Consensus Docs. put forward their own BIM contract standard form respectively AIA Document E202TM-2008 Building Information Modeling Protocol Exhibit and Consensus DOCS301 BIM. The construction contract in China is based on the standard form by the Ministry of Housing and Urban-Rural Development and the State Administration for Industry and Commerce. At present, China(mainland) has not been specifically BIM contract management regulations. (Mainland of China has different management regulations with Hongkong, in this paper the author only analysis situation of mainland.)

With the rapid development of China’s market economy, the construction industry has become increasingly prominent in the national economy. In order to give full play to the role of market economy system reform in the allocation of market resources, China need to establish an effective legal system.

To summarize, this paper will research and analyze the following questions:

  • The advantages of BIM contract management system compared to the traditional contract management system
  • Comparing between published BIM contract standard firm with Chinese situation.
  • Try to choose a sample system model that is suitable for China’s contract management.

More…

To read entire paper, click here

 

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

How to cite this paper: Jing, W. (2018). The Development for BIM Contract Management System in China, PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Jing-development-of-bim-contract-management-system-in-china.pdf

 



About the Author


Wenting Jing

Paris, France

 

 

 

Wenting JING is a MSc student in SKEMA Business School, major in Project and Programme Management & Business Development (PPMBD). She graduated from Fujian Agriculture and Forestry University and holds a Bachelor’s degree in Urban Planning. She has both business and engineering education background. Wenting has worked for Architectural Design & Research Institute and Consulting company in China. She lives in Paris now, Wenting can be contacted at or www.linkedin.com/in/wenting-jing

 

 

Contract management

a strategic impact on project management

 

STUDENT PAPER

By Meriem Harhad

SKEMA Business School

Paris, France

 



ABSTRACT

A project always starts with a signed contract detailing all expectations and deliverables in order to have the outcomes of the project.

However, the person with specialized skills and know-how in contract management, the contract manager, is not considered as a necessary key role in the project management field.

Indeed, many companies let the project manager manage the contract, even if he has not specialized experience in contract management. That is why contract management is a challenging concern within project management.

To understand, the best way companies can grasp the contract management within their projects and thus analyse how contract management can be handed within a project, we use different methods of quantitative and qualitative analysis and comparison.

Therefore, in this paper we demonstrate that having a dedicated contract manager in your project, and reorganize project’s teams in order to have a contract manager in each project undertaken, is the preferred alternative for running projects, especially large and complex projects, within companies of diverse fields.

Keywords: Contract manager, Success factors, Risk management, Project management, Contract management, Strategic role in project management, Contract’s adjustment, Contract life cycle, Project team organization.


INTRODUCTION

In the main implemented approaches to project management such as PMI, or PRINCE 2, there is no a defined role of a “contract manager” in the organization of the project in neither the management team level nor the executive one. Despite the contract management is a required competency to manage a project.

The contract manager work cannot be defined as to simply write the contract, and following it during the project. The contract life cycle management implies to efficiently manage the analysis of the contract, to minimise risks and maximise performance, which enables to achieve successfully the project. Moreover, as we can see in all project, to have a signed contract with the customer, is the starting point that launches the project and allows to having all customer’s expectations, which are the baseline of the project. Indeed, it permits to have a deep understanding of the products that will be delivered during the project, which is one of the keys to have a successful project. Besides, the project’s progresses can trigger variations and adjustments regarding the initial contract, hence the project is strongly linked to the contract and managing the project well involves to have a well-managed contract.

Therefore, we can consider contract management as a full part of project management. Indeed, for a large project, it has a strategic impact because it can be a part of the solution to complex projects, which makes the contract management a powerful tool for risks management, performance maximisation and communication management in project management

More often than not, the role of the “contract manager, is fulfilled by the project manager itself, but it is not his core competency. That is why we consider that having a person with a specific know-how in contract management, that is totally devoted to this part of the project’s aspect, is a key success factor for the project, and should be considered as a full role in the project team.

  1. Problem definition

To summarize, this research paper has been undertaken to analyse and answer the following questions:

  • What is the role of contract management in project management?
  • How the role of a contract manager create value to the project?
  • Is it worth to have a dedicated contract manager in the project team, and thus reconsider the roles of project team in main project management approaches? Or the project manager must be a contract manager.

More…

To read entire paper, click here

 

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

How to cite this paper: Harhad, M. (2018). Contract management: a strategic impact on project management, PM World Journal, Volume VII, Issue X – October. Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Harhad-contract-management-strategic-impact-on-project-management.pdf

 



About the Author


Meriem Harhad

Paris, France

 

 

Meriem Harhad is a student in SKEMA Business School, in the Master of Science Project and Programme Management and Business Development. She has a bachelor’s degree in management and economy. She has mild experience in business development, in the hospitality industry.

 

 

Handling natural disasters

in final payments and change orders

 

STUDENT PAPER

By Alice Créton

SKEMA Business School

Lille, France

 



ABSTRACT

Global warming is a phenomenon we need to face because it has consequences in many areas in our society, like in contracts. By increasing their intensity and frequency, global warming is fostering natural disasters which slow or even block companies’ activities causing tremendous losses. Although companies’ activity is responsible for most of worldwide gas emissions, feeding global warming, the losses are often offset by insurance companies. The paper aims to demonstrate that the uses of these insurance companies can be unfair as the size and benefits of an organization characterize their insurances options. Moreover, it takes responsibility away from companies. By using a Multi Attribute Decision Making process, regulating insurance companies will appear to be the best solution to tackle this issue.

Keywords: Final payment, Change order, Natural disasters, Global warming, Companies’ liability

 

INTRODUCTION

Each time a natural catastrophe hits a place in the world, it has great financial impacts on companies. According to the Financial Times, the recent hurricane IRMA that hits the Eastern coast of the USA on September 2017, is costing 20 billion dollars to insurances. However, the forecast was much higher – 100 billion dollars estimation – as it was supposed to hit Miami much harder. Because of global warming, these kinds of natural disasters have been increasing steadily over the years in term of number but also intensity. One day, a hurricane hitting Miami as hard, or even harder, as it was forecast by insurers for Irma is a credible assumption, and it will cost a tremendous amount of money.

Nowadays, a natural disaster is considered as an Act of God – that is to say, a hazardous event. Thus, its consequences can be covered by a particular clause: The Force Majeure Clause. This clause withdraws a party’s liability if an unpredictable event happens and prevents this party from performing the tasks predicted in the contract. The final payment in the contract is changed, so is the order.

Nevertheless, in a recent article of the Guardian, only 100 companies are being accounted for 70% of the world’s greenhouse gas emissions which represents the first cause of global warming. Their main responsibilities in global warming link them to the increase of natural catastrophes around the world. Can we still excuse these companies for their loss in environmental damage? Even if every natural catastrophe remains unpredictable in long term, companies play an important role in their occurrence and they should not be completely excused when they cannot respect a contract because of a natural disaster. They should face their liabilities depending on their impact on the global warming. This assumption is questioning the scope of the Force Majeure clause.

STEP 1 – OBJECTIVE STATEMENT

  1. How can we consider companies’ responsibility in the occurrence of natural disasters in contracts?
  2. How does it impact final payment and change order in contracts when natural disasters occur?

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

How to cite this paper: Créton, A. (2018). Handling natural disasters in final payments and change orders, PM World Journal, Volume VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Créton-handling-natural-disasters-student-paper.pdf

 



About the Author


Alice Créton

Lille, France

 

 

 

Alice Créton is a French student in the “Grande Ecole” Program at SKEMA Business School France. She is doing a Master of Science in Program and Project Management and Business Development. She was appointed general secretary of two student unions in SKEMA, both combining her interests in environmental and humanitarian issues. She involved herself in the management of several projects and is interesting in becoming a project manager in those fields. Alice can be contacted at [email protected]

 

 

ISO TC 258 Meeting in Peru

ISO/TC 258, ISO Technical Committee for Project, Program, and      Portfolio Management, convenes in Lima

 

REPORT

By Dr Jouko Vaskimo

International Correspondent & Senior Contributing Editor

Espoo, Finland

 



ISO/TC 258
, the Technical Committee (TC) of the International Organization for Standardization (ISO) set up to work with standards in the field of project, program, and portfolio management, convened for the ninth plenary meeting at Lima, Peru, on September 10th … 11th 2018. The plenary participants – 45 representing 18 national standardization bodies – were warmly welcomed to Lima and to Pontificia Universidad Católica del Perú by Dr Rosario Uría, the Director of National Standards at Instituto Nacional de Calidad (INACAL), the national standardization body of Peru, and by Mr Juan Verástegui, Head of the Peruvian Delegation, hosting the ISO/TC 258 plenary meeting in Lima. Subsequent to the TC plenary, the ISO/TC 258 active working groups convened in Lima on September 12th … 14th.

ISO/TC 258 Lima plenary meeting participants (photos courtesy Jouko Vaskimo)

ISO/TC 258 main initiatives include Working Group WG3 working towards a harmonized vocabulary for project, program and portfolio management, WG9 working towards a revision of ISO 21500 (which will be called – as per ISO/TC 258 decision – ISO 21502 in the future), WG10, working towards an overarching ISO standard explaining context and concepts for project, program and portfolio management (which will be called – as per ISO/TC 258 decision – ISO 21500 in the future), and Ad-Hoc Group AHG8 investigating the development of ISO standard on project management competences.

At the time of the Lima plenary meeting ISO/TC 258 had 39 participating (P) members, 16 observing (O) members, and 14 liaisons.

Argentina, Australia, Austria, Barbados, Belgium, Brazil, Bulgaria, Cameroon, Canada, Chile, China, Colombia, Costa Rica, Cyprus, Finland, France, Germany, Greece, Hungary, India, Italy, Japan, Korea, Latvia, Luxembourg, Netherlands, Norway, Pakistan, Panama, Peru, Portugal, Russia, Slovakia, South Africa, Spain, Sweden, Ukraine, United Kingdom, and United States are current ISO/TC 258 P – members.

Belarus, Czech Republic, Egypt, Hong Kong, Iran, Iraq, Israel, Kenya, Lithuania, Mauritania, Morocco, New Zealand, Poland, Romania, Uganda and Uzbekistan are current ISO/TC 258 O – members.

Association for the Advancement of Cost Engineering international (AACEi), College of Performance Management (CPM), Global Alliance for the Project ProfessionS (GAPPS), International Project Management Association (IPMA), and Project Management Institute (PMI) are ISO/TC 258 liaison organizations.

ISO/IEC JTC1, Information Technology, ISO/IEC JTC1/SC7, Software and systems engineering, ISO/TC20, Aircraft and space vehicles, ISO/TC176/SC2, Quality systems and ISO/TC309, Governance of Organizations are the current liaison committees to ISO/TC 258.

ISO/IEC JTC1/SC7, Software and systems engineering, ISO/TC20, Aircraft and space vehicles, ISO/TC176/SC1, Concepts and terminology and ISO/TC176/SC2, Quality systems are the current liaison committees from ISO/TC 258.

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How to cite this report: Vaskimo, J. (2018). ISO/TC 258, ISO Technical Committee for Project, Program, and      Portfolio Management, convenes in Lima, PM World Journal, Vol. VII, Issue X – October. Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Vaskimo-ISO-TC258-report-from-Lima.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/

 

 

 

Finland Project Management Roundup for October 2018

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 over 4000 individual and 200 organizational members.

PMAF promotes the development and dissemination of project and project management knowledge. PMAF members are able to enjoy information sharing, workgroups, development projects, project management forums, conferences and certification services PMAF provides. PMAF organizes two annual conferences: Project Days (Projektipäivät in Finnish) in early November, and 3PMO in early June. This year Project Days takes place on 30 … 31.10. with an overarching theme Lessons Learned? 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. This year the conference took place on May 17th, in Otaniemi, Espoo, with an overarching theme “Grow!”. 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 commence commercial operation in September 2019.

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 have 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 well over 100 % over original budget and 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 September 2019 – over ten 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 existing plants 1 and 2 at right. (photo courtesy TVO)

 

HANHIKIVI 1

The preliminary construction works of the 1 200 MW Hanhikivi 1 nuclear power plant, contracted to be built by Rosatom for Fennovoima at Pyhäjoki, are proceeding despite the lack of the main nuclear power station building permit. Säteilyturvakeskus (STUK), the Radiation and Nuclear Safety Authority in Finland, announced late last year it will demand enhancements in the Hanhikivi nuclear power plant project. Most importantly, STUK says the safety culture of the Russian plant supplier Raos Project and main contractor Titan 2 are not at the appropriate level. Previously STUK had instructed for Fennovoima to take a stronger position towards Rosatom when demanding the safety documents required for the main building permit. In mid-February STUK estimated that most of the material – even as far as to 90 % – required for processing the main nuclear power station building permit is missing. STUK had estimated earlier that the main building permit cannot be granted before 2019 due to the inaccuracies in the Rosatom technical documentation. Now even this time schedule appears unrealistic.

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How to cite this report: Vaskimo, J. (2018). Finland Project Management Roundup for October 2018, PM World Journal, Vol. VII, Issue IX – October. Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-oct2018-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/

 

 

 

A Deeper Insight into the Human Factor

in Project Risk Management

 

SECOND EDITION

By Prof. Dr. Wolfgang Tysiak

University of Applied Sciences and Arts

Dortmund, Germany

 



Abstract

A fundamental understanding of risk, risk attitudes, risk ethics etc. is the basis of each risk management approach – not only in project management. Risk management requires human judgement, and this is often influenced and distorted by individual perceptions. After presenting the historic development of the human perception of risk and the individual psychological attempts to handle this matter, we try to work out necessary consequences to project risk management.

This paper can be seen as a continuation of a contribution to a former conference of the same format here in Riga (Tysiak (2013)).

Key words: project management, risk management, cognitive bias, simulation

JEL codes: D91, O22, C63

Introduction and Background

In every project there is the need to implement some kind of risk management (cf. PMI (2013), Kerzner (2009), Schelle/Ottmann/Pfeiffer (2006)), which normally contains the following phases:

(1) risk management planning,

(2) risk identification,

(3) qualitative risk analysis,

(4) quantitative risk analysis,

(5) risk response planning, and

(6) risk monitoring and control.

Since this approach is more or less similar in a lot of disciplines that apply risk management (like financial engineering, software development, supply chain management etc.), let us first broaden our view and look at risk management in general and not only related to projects.

The tasks (2) to (6) have to be seen as a chain/loop that you permanently have to work through simultaneously. But, as always, a chain is as weak as the weakest link: If you are not able to identify the crucial risks, there is nothing to analyze. If you are not able to evaluate the risks and therefore cannot plan how to respond in an adequate way, you cannot handle the risks.

Especially while applying the tasks (2) to (4), we have to be aware that they are of course performed by human beings and therefore by people with different attitudes in risk acceptance, risk handling, risk culture etc. The term “risk” in this context is a little misleading: In everyday language this term is associated with a negative outcome of an uncertain event, whereas a positive outcome is normally denoted by “chance” or “opportunity”. In risk management the term “risk” is used as a synonym of “uncertainty” (cf. the definitions in PMI (2013), Schelle/Ottmann/Pfeiffer (2006)) and therefore covers positive and negative aspects. Following, we will identify possible reasons for the disparities in human behavior in the context of uncertainty handling and thus try to provide support to manage it.

We want to start with a short reflection about the historic development of the cultural relation to uncertainty and then look at the individual way how human beings estimate probabilities. The first part is mainly based on the interesting book by Peter L. Bernstein “Against the Gods” (Bernstein (1996)), whereas the second part is based on the findings of Daniel Kahneman and Amos Tversky (Kahneman/Tversky (1974), (1979), (2000)) and originates from several psychological textbooks (cf. Esgate/Groome (2005), Fetchenhauer (2011), McKenna (2000)). Subsequently we want to determine what we can learn from this in general and conclude, which consequences result from this, especially for risk management in projects.

Historic Development of the Relation to Uncertainty

In the book “Against the Gods” by Peter L. Bernstein (1996), the historic development is divided into four phases:

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Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the most recent Scientific Conference on Project Management in the Baltic States at the University of Latvia in Riga in April 2018.  It is republished here with the permission of the authors and conference organizers

How to cite this paper: Tysiak, W. (2018). A Deeper Insight into the Human Factor in Project Risk Management; Proceedings of the 7th Scientific Conference on Project Management in the Baltic States, University of Latvia, Riga, Latvia, April 2018; republished in the PM World Journal, Vol. VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Tysiak-Deeper-Insight-Human-into-Factor-in-Project-Risk-Management.pdf

 



About the Author


Prof Dr. Wolfgang Tysiak

Dortmund, Germany

 

 

 

In 1995 Wolfgang Tysiak became professor at the University of Applied Sciences and Arts in Dortmund. After studying mathematics, statistics, and business administration at the University Siegen, he received a doctoral degree from the University Wuppertal. After that he worked in the private sector for 12 years, mainly in a consulting firm. During this period most of his work was organized in projects and therefore he gained a lot of experience in applied project management.

At the UAS Dortmund he is a core member of the faculty of business administration. In the EuroMPM (European Master in Project Management) study program, he is mainly responsible for teaching risk management in project.

Wolfgang Tysiak is author/co-author of more than 40 publications, including books, articles in journals, and contributions to conferences.

Wolfgang Tysiak can be contacted at: [email protected].

 

 

Why hybrid projects fail

Development of a retrospective assessment method for hybrid projects

 

SECOND EDITION

By Benjamin Auer and Philipp Rosenberger

Vienna, Austria

 



Abstract

The project business in the IT sector is constantly growing and the budgets of IT departments are getting bigger and bigger, even though according to studies only 16,2% of all projects are successful. (Standish Group, 2015) There is a trend that tries to mix the classic and agile project methods. The target of this approach is to apply best practices of those two methods (e.g. faster “time to market” and flexibility) while trying to keep the organizational structures and -processes (Komus et al., 2015). A difficulty is that there is no exact definition of how a hybrid project should be executed. Another problem is that the role of project manager does not exist in the agile approach.

The other challenge is that projects are normally measured based on key performance indicators. But there is no clear definition on what a key performance indicator is and what it is not. Therefore, projects are not comparable with the use of key performance indicators. (Parmenter 2015). Do to this lack of measuring, project risks are increasingly threatening project success (Csiszarik-Kocsir et al 2017). According to studies there are eight reasons why projects fail and by means of expert interviews those eight reasons have been confirmed and the list was expanded, including four additional reasons (Coolman A. 2016).

This paper presents a review system for hybrid projects with which it is possible to check if projects have failed due to known obstacles. In addition, two possible definition models for hybrid projects are presented in detail, as well as the possible results of each individual phase (start, execution and close-down) that every project passes through. By means of literature research and interviews, stumbling blocks were identified as to why projects could fail. Based on these stumbling blocks, questions were developed for a retrospective assessment method. Based on these questions, an expert can evaluate whether the failure of the project coincides with one of the identified obstacles/reasons. In an excurs, possible key figures for hybrid projects are presented.

Key words: hybrid project, projects fail, key performance indicators,

JEL code: H43 (project evaluation)

Introduction

The 2015 Chaos Report found that only 16.2 percent of all projects could be considered successful. An additional 52.7 percent has come to an end, but at least one of the aspects was outside the magic triangle (quality, time and cost). The remaining projects were never completed and stopped in between. (Standish Group, 2015)

When the study published by the German Project Management Association (GPM) is used, 39 percent of the projects in the surveyed companies are executed with using a hybrid approach. In 25 percent of the projects, a situational approach is selected (classic, agile or hybrid). If one assumes that the 25 percent can be split linearly, one recognizes that more than 47 percent of the projects in the surveyed companies are handled with a hybrid approach. (Komus et al., 2015)

The challenge of hybrid projects is that they try to do the splits between two mythologies. On the one side, there are the existing structures and organizations of a company, on the other side one tries to use the advantages of the agile approach. For this purpose, an attempt by Mr. Habermann was published, in which the interaction between an agile approach and a classical approach in a laboratory simulation was recreated. (Habermann 2013) The result of this simulation containing 26 teams and showed, that a hybrid approach was superior to full agile or full classical project approaches. Based on this conclusion, it seems that hybrid models can become more common in the future.

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Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the most recent Scientific Conference on Project Management in the Baltic States at the University of Latvia in Riga in April 2018.  It is republished here with the permission of the authors and conference organizers

How to cite this paper: Auer, B., and Rosenberger, P. (2018). Why hybrid projects fail – Development of a retrospective assessment method for hybrid projects; Proceedings of the 7th Scientific Conference on Project Management in the Baltic States, University of Latvia, Riga, Latvia, April 2018; republished in the PM World Journal, Vol. VII, Issue X – October.  Available online at https://pmworldjournal.net/wp-content/uploads/2018/10/pmwj75-Oct2018-Auer-Rosenberger-Why-Hybrid-Projects-Fail.pdf

 



About the Authors


Benjamin Auer

Vienna, Austria

 

 

 

Since 2006 Benjamin Auer has been working as a team leader and project manager in various projects and industries. Currently he is working in the insurance sector as an IT project manager in a program that replaces the existing ECM group-wide. Before that he was an IT project manager in the field of individual software development with a focus on the introduction of ERP systems. Prior to that he worked as project manager for a tunnel construction project in the field of communications engineering. He holds a Bachelor of Arts in project management and IT and a Master of Science in technical management.  Benjamin Auer can be contacted at [email protected]

 


Philipp Rosenberger

Vienna, Austria

 

 

 

Philipp Rosenberger is a lecturer at FH Campus Vienna at master program technical management focusing on IT project management in an agile development context. After many years in aftersales and business consulting as well as project management and especially IT project management development in Europe and China, he got into the financial sector, managing the implementation of a current account financial product implementation project at ING DiBa Online bank in Vienna and in parallel starting his consulting company ROSCON.at. Philipp now focuses on scientific research of hybrid IT project management models, fulfilling the both needs of a tightly managed classical project regarding budget, cost, quality, predictability and reliability, as well as the needs of an agile culture in the development part of the project. Philipp can be contacted at mailto:[email protected]