SPONSORS

SPONSORS

Welcome to the October 2014 Edition of the PM World Journal

David Pells,

Managing Editor 

Addison, Texas, USA
________________________________________________________________________

Welcome to the October 2014 edition of the PM World Journal (PMWJ). This month’s edition contains 30 articles, papers, reports and book reviews by 36 different authors in 17 different countries. An additional 30+ news articles about projects and project management around the world are included. Around 30 countries are represented by authors or subjects this month. Readers in more than 100 countries visit the PMWJ website to read the contents on a regular basis. The primary mission of the journal is to support the sharing of information related to program and project management (P/PM), so please consider sharing this month’s edition with others in your network.

Invitation to Share Knowledge

We invite you to share your knowledge and experience related to program, project and project portfolio management. A wide variety of articles and papers, case studies and reports, book reviews and news stories are included in the PMWJ each month. Share knowledge and gain visibility for you or your organization; publish an article, paper or story in the PMWJ. See our Call for Papers in the news section of the PMWJ this month; if interested in submitting something for publication, check out the Author Guidelines on www.pmworldjournal.net, then just send your original work to me for the next edition at [email protected].

This month in the Journal

We begin this month with 7 Featured Papers, by authors in seven different countries. Professor Yan Gelrud in Russia has contributed a paper titled “The algorithm for generating an optimal investment portfolio.” Essam Lotffy in UAE has authored “Labor Productivity Improvements in Construction using WBS & OBS Integration”. Marco Sampietro in Italy has contributed “Project Followership: How Project Team Members can Contribute to Project Success.” Yosep Asro Wain in Indonesia has authored “Updating the Lang Factor and Testing its Accuracy, Reliability and Precision as a Stochastic Cost Estimating Method.” Dr. Ahmed El Ghanamy (Egypt/UK) and Prof Dimitrios P. Kamsaris (Greece/UK) are the authors of “Effective Contract Negotiation through Persuasion”. Bob Prieto, senior vice president at Fluor corporation in the US, is back with another paper titled “Classes of Factors to be Considered in Infrastructure Investment Priority.” And Patrick Weaver in Australia is back with another paper on project management history titled “The Origins of Hammocks and Ladders.” These are all serious, research-based papers that contribute to the literature and field of professional P/PM.

5 Series Articles are included this month, by authors in 5 different countries. Prof Darren Dalcher in UK is back with “Is it time to rethink project management?” This fascinating article is the latest instalment in our “Advances in Project Management” series by Gower authors. Another article in the series on the broad topic of Maturity in Project Management within organizations by Russell Archibald, PhD (Hon) (Mexico) and Darci Prado, PhD (Brazil) is included. Their paper, co-authored this month by Manuel Carvalho da Silva Neto and originally presented at the 8th annual UT Dallas PM Symposium in August, is titled “How to Increase Project Profitability – An Approach Using Maturity Concepts.” Don’t miss this new article on this important topic by leading authorities on the subject. Another Risk Doctor Briefing is included this month by Dr David Hillson, aka The Risk Doctor, titled “Risk Questions for the Board.” Alan Stretton, PhD (Hon) in Australia is the author of “Program/Project Types”, the third in his “Series on Project and Program Categorization.” Prof. Donncha Cavanagh in Dublin, Ireland is the author of “Project Management – ‘Trendslator’ or ‘Fashion Retailer’?”, the article provided by the IPMA Education and Training Board.

More…

To read entire paper (click here)

About the Author 

david-pellsDAVID PELLS flag-usa

Managing Editor, PMWJ 

David L. Pells is Managing Editor of the PM World Journal, a global eJournal for program and project management, and Executive Director of the PM World Library. David is an internationally recognized leader in the field of professional project management with more than 35 years of experience on a variety of programs and projects, including energy, engineering, construction, defense, transit, high technology and nuclear security, and project sizes ranging from several thousand to ten billion dollars. He has been an active professional leader in the United States since the 1980s, serving on the board of directors of the Project Management Institute (PMI®) twice. He was founder and chair of the Global Project Management Forum (1995-2000), an annual meeting of leaders of PM associations from around the world. David was awarded PMI’s Person of the Year award in 1998 and Fellow Award, PMI’s highest honor, in 1999. He is also an Honorary Fellow of the Association for Project Management (APM) in the UK; Project Management Associates (PMA – India); and Russian Project Management Association SOVNET. From June 2006 until March 2012, he was the managing editor of the globally acclaimed PM World Today eJournal. He occasionally provides high level advisory support for major programs and global organizations. David has published widely, spoken at conferences and events worldwide, and can be contacted at [email protected].

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

For more, visit www.pmworldjournal.net and www.pmworldlibrary.net.

Labor Productivity improvement in Construction projects using WBS & OBS Integration

FEATURED PAPER

By Essam Lotffy

United Arab Emirates
________________________________________________________________________

  1. ABSTRACT

Abu Dhabi is one of the cities in GCC where Construction field is booming very fast. This technical paper is intended to show the effects of labor productivity on construction projects profits, the factors which result in productivity loss and how to improve the productivity using WBS & OBS framework. The author seeks to illustrate how lost productivity will affect direct labor cost which may result in reducing project profits by using Earned Value management (Accomplished man-hours). Upon applying earned value calculations the negative deviation from planned man-hours will be analyzed along with root cause of productivity loss and how it may affect the direct labor cost. Hence establish WBS & OBS integration matrix to recover this loss. Examples and figures used in this report are adopted from an on-going construction project within Abu Dhabi city and estimated productivity rates are limited to this project only. The results of this study will show the effect of establishing WBS & OBS integration matrix to monitor the project performance and improve the labor productivity by assigning works to appropriate organizational units using right combination between responsibility assignments’ matrix and organizational breakdown structure by identifying the individual responsibility for performing the work.

  1. INTRODUCTION

Labor productivity is one of the most vital challenge during construction projects life cycle that concerns project managers, it was noticed that most of project managers can’t achieve neither planned labor productivity nor their organization strategic plans in this regard. Failure in achieving required or planned labor productivity may affect the direct labor cost and incurred huge losses to the project. In most of construction projects if the standard and or planned productivity rates are compared to actual accumulative accomplished productivity it may shows that the actual productivity is less than planned due to many circumstances’ illustrated later in this technical paper, which means that the actual manpower used to accomplished specific task is greater than the planned that should be used for the same task and this may escalate the labor direct cost and may affect the planned budget of the project, this can be cleared if simple Earned Value management is applied which will show that the project till specific period of its life cycle is over budget.

This difference of labor productivity may be because of lack of supervision and/or unavailability of foundation to assign work to appropriate organizational units to ensure right combination between project works and responsibility assignment matrix and organizational breakdown structure. Hereinafter this technical paper’s goal is to show how to achieve the labor productivity improvement using proper methodology, to analyze the weakness of labor productivity and how to improve it as well. In this technical paper the actual accomplished labor productivity will be compared to standard and/or planned productivity rates to analyze the deviation and its reasons, then study the effect of using WBS & OBS integration matrix to ensure that each work package will have a single point of responsibility. This will be used as main objective for controlling direct labor cost and to identify the individual responsibilities for performing the work to monitor the project performance.

More…

To read entire paper (click here)

About the Author

???????????????????????????????Essam Lotffy flag-uae

Abu Dhaby, UAE

Essam Lotffy is a Construction Manager-MEP at Trojan general contracting in Abu Dhabi, UAE. He received his BSc. degree in Electrical Engineering (Major) and Power Distribution (Minor) through Zagazig University, Zagazig, Egypt in 2001. Essam pursued and achieved his certificates in Project Management (PMP®) from PMI-USA in 2013, and certificate in Cost Management (CCP®) from AACE International in june-2014. He has 13 years of extensive hands on experience in various aspects of projects and project management within maintenance, power distribution networks monitoring and supervision and construction projects as well.

During his employment tenure with his past employers Suez Canal Electrical Distribution Company, United Engineering & Trading Company – ENTRACO, and TROJAN General Contracting, he has successfully managed various projects, in addition enhancing the process capabilities and organization performance as well. Essam Lotffy is actively pursuing potential opportunities in the project management field, where a room of growth and opportunities for advancement exists. He can be contacted at [email protected]m.

Series on Categorizing Projects and Programs: Program/Project Types

SERIES ARTICLE 

By Alan Stretton

Sydney, Australia
________________________________________________________________________

ABSTRACT

This is the third of a series of four working/discussion papers on categorizing projects and programs. The context of these papers is overall categorizations as they have appeared in the literature. These currently vary widely, and this series is concerned with exploring possibilities for bringing them closer together. The aim is to stimulate discussion and to encourage feedback, which might hopefully lead to the development of more widely acceptable and accepted categorizations.

The first paper (Stretton 2014f) focused on project categorizations, and the second (Stretton 2014g) on program categorizations. In both cases existing categorizations were found to be a mixture of industrial/ social sectors (Application Sectors) in which programs/projects are undertaken (e.g. aerospace, defence), and types of programs/ projects (Program/ Project Types) which are undertaken in many, if not most, of these Application Sectors (e.g. IT projects, R&D projects).

In each case the components of the categorizations were re-allocated into Application Sectors and Program/Project Types, and presented as a matrix illustrating the intersections between them. It was evident that some of the Program/Project Types were much more immediately relevant to some Application Sectors than to others. It would appear to be potentially useful to establish the nature and importance of such relevancies, and thence, hopefully, develop a better understanding of how individual Program/Project Types can benefit through sharing inter-Application-Sector data.

It was further identified that programs and projects shared five key Program/ Project Types. It was also noted that the listings of Application Sectors and Program/Project Types found so far are very incomplete. This series is somewhat more concerned with categorizations of Program/Project Types, and this third paper will discuss these further, and extend the listing of these Types. 

More…

To read entire article (click here)

Editor’s note: This series of articles on the categorization of projects and programs is by Alan Stretton, PhD (Hon), Life Fellow of AIPM (Australia), a pioneer in the field of professional project management and one of the most widely recognized voices in the practice of program and project management.   Long retired, Alan is still accepting some of the most challenging research and writing assignments; he is a frequent contributor to the PM World Journal. See his author profile below

About the Author

alan-strettonAlan Stretton, PhD flag-australia      

Faculty Corps, University of Management

and Technology, Arlington, VA (USA)

Life Fellow, AIPM (Australia) 

Alan Stretton is one of the pioneers of modern project management. He is currently a member of the Faculty Corps for the University of Management & Technology (UMT), USA. In 2006 he retired from a position as Adjunct Professor of Project Management in the Faculty of Design, Architecture and Building at the University of Technology, Sydney (UTS), Australia, which he joined in 1988 to develop and deliver a Master of Project Management program.   Prior to joining UTS, Mr. Stretton worked in the building and construction industries in Australia, New Zealand and the USA for some 38 years, which included the project management of construction, R&D, introduction of information and control systems, internal management education programs and organizational change projects. He has degrees in Civil Engineering (BE, Tasmania) and Mathematics (MA, Oxford), and an honorary PhD in strategy, programme and project management (ESC, Lille, France). Alan was Chairman of the Standards (PMBOK) Committee of the Project Management Institute (PMI®) from late 1989 to early 1992. He held a similar position with the Australian Institute of Project Management (AIPM), and was elected a Life Fellow of AIPM in 1996. He was a member of the Core Working Group in the development of the Australian National Competency Standards for Project Management. He has published over 140 professional articles and papers. Alan can be contacted at [email protected].

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

Risk Doctor Briefing: Questions for the Board about Risk

SERIES ARTICLE

Dr David Hillson PMI Fellow, HonFAPM, FIRM

The Risk Doctor Partnership

UK
________________________________________________________________________

It is quite common for risk professionals not to talk to senior executives or Board members. After all, they probably think we are technical staff, or analytical specialists, involved in the detail of the business, and not relevant to the strategic direction of the organisation. And perhaps we think that executives are too important or too busy to waste their valuable time listening to us. These two attitudes are both completely wrong!

The truth is that risk professionals hold crucial information on key threats and opportunities that could have a major effect on the overall business. Senior decision-makers who set the strategy for the organisation need to be aware of these risks in order to avoid potential pitfalls and create maximum value. So it is important for those of us who understand risk to have a voice at the highest level.

One way to ensure that we are heard by executives is to ask key risk-related questions that focus their attention on the uncertainties that matter to organisational strategy. We need to help them understand why risk is important to their role, and how understanding risk exposure can make their task easier. Here are seven questions to ask your Board next time you get the chance to mention risk:

  1. Is our overall strategy well defined and communicated?
  2. Is our risk appetite for this strategy understood and expressed in measurable risk thresholds?
  3. Are we considering a sufficiently broad range of risk sources in our “risk landscape”?
  4. Do we understand the key risks inherent in pursuing our chosen strategy, including both threats and opportunities?

More…

To read entire article (click here)

About the Author

Dr. David HillsonDr. David Hillsonflag-uk

The Risk Doctor

Dr David Hillson CMgr FRSA FIRM FCMI HonFAPM PMI-Fellow is The Risk Doctor (www.risk-doctor.com).  As an international risk consultant, David is recognised as a leading thinker and expert practitioner in risk management. He consults, writes and speaks widely on the topic and he has made several innovative contributions to the field. David’s motto is “Understand profoundly so you can explain simply”, ensuring that his work represents both sound thinking and practical application.

David Hillson has over 25 years’ experience in risk consulting and he has worked in more than 40 countries, providing support to clients in every major industry sector, including construction, mining, telecommunications, pharmaceutical, financial services, transport, fast-moving consumer goods, energy, IT, defence and government. David’s input includes strategic direction to organisations facing major risk challenges, as well as tactical advice on achieving value and competitive advantage from effectively managing risk.

David’s contributions to the risk discipline over many years have been recognised by a range of awards, including “Risk Personality of the Year” in 2010-11. He received both the PMI Fellow award and the PMI Distinguished Contribution Award from the Project Management Institute (PMI®) for his work in developing risk management. He is also an Honorary Fellow of the UK Association for Project Management (APM), where he has actively led risk developments for nearly 20 years. David Hillson is an active Fellow of the Institute of Risk Management (IRM), and he was elected a Fellow of the Royal Society of Arts (RSA) to contribute to its Risk Commission. He is also a Chartered Fellow of the Chartered Management Institute (CMI) and a Member of the Institute of Directors (IOD).

Dr Hillson can be contacted at [email protected].

To see other works previously published in the PM World Journal by Dr David Hillson, visit his author showcase at http://pmworldlibrary.net/authors/dr-david-hillson/

Advances in Project Management: Is it a time to rethink project management?

SERIES ARTICLE 

By Prof Darren Dalcher

Director, National Centre for Project Management

University of Hertfordshire

UK
________________________________________________________________________

 

On the evidence of the authors of the new Gower book Advances in Project Management: Narrated Journeys in Unchartered Territory, there is a sea change coming. That change will affect the way projects are perceived, lead and governed, particularly in the context of the wider organization to which they belong; whether that is in the public, private or not-for profit sectors.

The era of project management

Project management is increasingly being recognised as a key competence in many organisations in both the public and private sectors. Trends such as downsizing, reduced management layers, greater flexibility, distributed teams and the challenges of rapidly evolving technology have taken project management beyond its routes in the construction, engineering and aerospace industries and are playing a part in transforming the service, financial, IT and general management sectors. Academic courses, professional training and accreditation programmes are blossoming as practitioners seek to enhance their knowledge, skills and competencies. Television programs such as The Apprentice have made the acronym PM, representing a person, a role or a function, familiar to most viewers, while Fortune even rated project management as the number one career choice at the beginning of the twenty-first century.

Project management offers the discipline and framework required to help organisations to transform their mainstream operations and service performance. It is viewed as a way of organising for the future. Moreover, in an increasingly busy, stressful and uncertain world it has become necessary to manage multiple projects successfully at the same time.

Project management is a core competence required to deliver change measured in terms of achieving desired outcomes with associated benefits. With projects increasingly viewed as managing the change efforts of society, project management is increasingly called upon to cross functional, organisational and societal boundaries and handle the inherent complexity and uncertainty required to bring about a new reality.

Yet despite the growing interest, many organisations have struggled to apply the traditional models of project management to their new projects in the global environment. Anecdotal and evidence-based research confirms that projects continue to fail at an alarming rate. A major part of the build-up to failure is often recognized as the lack of adequate project management knowledge and experience.

More…

To read entire article (click here)

Editor’s note: The PMWJ Advances in Project Management series includes articles by authors of program and project management books published by Gower in the UK. Each month an introduction to the current article is provided by series editor Prof Darren Dalcher, who is also the editor of the Gower Advances in Project Management series of books on new and emerging concepts in PM. Prof Dalcher’s article is an introduction to the invited paper this month in the PMWJ. Information about the Gower series can be found at http://www.gowerpublishing.com/advancesinprojectmanagement

About the Author 

Darren Dalcher, PhDDarren Dalcher, PhD flag-uk

Series Editor

Director, National Centre for Project Management

University of Hertfordshire, UK

Darren Dalcher, Ph.D. HonFAPM, FRSA, FBCS, CITP, FCMI is Professor of Project Management at the University of Hertfordshire, and founder and Director of the National Centre for Project Management (NCPM) in the UK. He has been named by the Association for Project Management (APM) as one of the top 10 “movers and shapers” in project management in 2008 and was voted Project Magazine’s “Academic of the Year” for his contribution in “integrating and weaving academic work with practice”. Following industrial and consultancy experience in managing IT projects, Professor Dalcher gained his PhD in Software Engineering from King’s College, University of London. Professor Dalcher has written over 150 papers and book chapters on project management and software engineering. He is Editor-in-Chief of Software Process Improvement and Practice, an international journal focusing on capability, maturity, growth and improvement. He is the editor of the book series, Advances in Project Management, published by Gower Publishing of a new companion series Fundamentals of Project Management. Heavily involved in a variety of research projects and subjects, Professor Dalcher has built a reputation as leader and innovator in the areas of practice-based education and reflection in project management. He works with many major industrial and commercial organisations and government bodies in the UK and beyond. He is an Honorary Fellow of the APM, a Chartered Fellow of the British Computer Society, a Fellow of the Chartered Management Institute, and the Royal Society of Arts, and a Member of the Project Management Institute (PMI), the Academy of Management, the Institute for Electrical and Electronics Engineers, and the Association for Computing Machinery. He is a Chartered IT Practitioner. He is a Member of the PMI Advisory Board responsible for the prestigious David I. Cleland project management award and of the APM Professional Development Board. Prof Dalcher is an academic editorial advisor for the PM World Journal. He can be contacted at [email protected].

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

IPMA Education and Training Series: PROJECT MANAGEMENT – “TRENDSLATOR or FASHION RETAILER”?

SERIES ARTICLE 

By Donncha Kavanagh

Dublin, Ireland
________________________________________________________________________

This short paper is based on a study of the diffusion of project management, as a set of technologies, in different European countries. The study highlights the role of two distinct types of external change agents: Trendslators and Fashion Retailers.

Trendslators are centrally concerned with institution building and with creating a—not yet present—professional community that will prosper over the longer term and emulate longer-standing professions. Thus they either mimic or build linkages with other institutions, especially academic entities, and work hard at creating educational programs, research, newsletters, publications, public events, etc. Trendslators play a key role in advocating, educating and promoting a management technology.

Examples include the embryonic versions of the quasi–professional project management associations now present in many countries, as well as new academic units engaged in teaching and researching the subject.

A trendslator’s work is done once the formal institutions are in place and the movement has been institutionalised to the point where it re-generates itself. For instance, the discipline of accountancy is institutionalised to a much higher degree than project management, in that it is a business function, academic discipline (with well-established departments in universities), and profession (a profession being characterized by prolonged training, formal qualifications, strict regulations on practice, a regulatory body or bodies with disciplinary powers, and some monopoly rights).

Management consultancy firms are typically not understood as trendslators, unless they are centrally engaged in building institutions. However, a business guru might be considered a trendslator if he or she adopts the role of a prophet or evangelist, seeking to lead a new movement.

More…

To read entire article (click here)

Editor’s note: This series of articles is by members of the IPMA Education and Training (E&T) Board or other IPMA leaders on the subject of project management education, training, careers and related topics. More information about the IPMA E&T can be found at http://ipma.ch/education.

About the Author

??????????????????????????????????????????????????????????????????????????????????????Donncha Kavanaghflag-ireland

Dublin, Ireland

Donncha Kavanagh is Professor of Information & Organisation in the Business School at University College Dublin (UCD), Ireland; Director of UCD’s Centre for Innovation, Technology and Organisation and a member of the Management Information Systems subject area.  He is also Director of PhD Programmes in the Michael Smurfit School of Business in UCD.

His research interests include the sociology of knowledge and technology, temporality, phronesis, the history and philosophy of management thought, pre-modern and postmodern modes of organizing, play and creativity. He is especially interested in the nature of ‘management’ in atypical forms of organising, while his most recent publications have focused on the relationship between work and play in management theory and practice. He has published widely in the fields of information and organisation, management, marketing, organisation studies, and engineering in leading international journals such as Organization, Organization Studies and Journal of Business Research.  Prior to his academic career, he worked in a number of project management and project controller roles. Further details at http://donnchakavanagh.com

Maturity in Project Management Series: HOW TO INCREASE PROJECT PROFITABILITY – AN APPROACH USING MATURITY CONCEPTS

SERIES ARTICLE

By Russell D. Archibald

San Miguel de Allende, Mexico

Darci Prado

Minas Gerais, Brazil

Manuel Carvalho da Silva Neto

Minas Gerais, Brazil
________________________________________________________________________

ABSTRACT

The objective of this paper is to present an approach to increase project profitability using maturity concepts. The basis for the paper is the data obtained in recent maturity researches held in Brazil using the Prado PM Maturity Model. This research quantitatively proved that:

  • There is a direct positive relationship between total project success and the organization’s level of project management maturity.
  • There is an inverse relationship between project failure and PM maturity.
  • There is an inverse relationship between project delay and PM maturity; the higher the maturity, the lesser the delay.
  • There is an inverse relationship between cost overrun and PM Maturity; the higher the maturity, the lower the cost overrun.

Then, the paper shows how an organization can use such data to increase the profitability of their projects by:

  • Identifying your current maturity and your project/business performance indicators (profitability, delays, cost overrun, etc.).
  • Using the survey data in order to have a forecast of how much it could improve its performance by increasing the maturity;
  • Identifying the success factors offenders and where they are located;
  • Establishing a plan of attack for offenders to success in order to increase the maturity and increase performance indicators.

The importance of this approach is that it shows that there is a route to increase performance by means of the conclusions obtained from the maturity surveys.

This approach has been used successfully in Brazil by several Brazilian organizations.

More…

To read entire article (click here)

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

About the Authors

russell d archibaldRussell D. Archibaldflag-usa-mexico

San Miguel de Allende, Mexico

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

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

pmwj18-jan2014-archibald-PHOTO PRADODarci Prado, PhDflag-brazil

Minas Gerais, Brazil

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

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

Manuel-Carvalho-da-Silva-NetoManuel Carvalho da Silva Netoflag-brazil

Minas Gerais, Brazil 

Manuel Carvalho da Silva Neto, MSc, Mech. Engineer and PMP is Fundação Dom Cabral Invited Professor and also Consultant. He is a seasoned professional with over 39 years of experience in Project Management, Process Management and Strategy. Manuel has managed or participated in more than a hundred projects across different fields including Steel, Mining, IT, Telecom, Food Processing, Government and Construction to mention a few. He worked also in projects of PMO (Project Management Office) and Methodology of Project Management. He has also strong skills in Leading People and Finance. He served as Minas Gerais State Undersecretary for Planning and Budget, from 2007 to 2008. Manuel can be contacted at [email protected].

To view other works by Manuel da Silva Neto, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/manuel-carvalho-da-silva-neto/.

Designing a PMO

SECOND EDITION                                                         

Dan Vickers, PMP

Texas, USA
________________________________________________________________________

The design of a Project Management Office (PMO) is varied across industries, organizations and departments. But what if you were able to design your own PMO? What if you got to decide how the PMO would be structured, how it would be organized, and what services it would offer? Imagine yourself as the sponsor of your own PMO. What would you do differently? Would you add staff, change processes, or close it down?

The PMO in various settings has various purposes. How would you define the purpose of your PMO? What are the general guidelines for any PMO?

The PMO can be a highly effective means of focusing a department, an organization or an industry on the best way to conduct projects in its environment. Let’s spend some time imagining the ideal PMO for our organization and then determining some steps that we can take to influence the change needed within our PMO.

Types of PMO

There are several types of a PMO. Below is a general list of these types from Ricardo Viana Vargas, at Macro Solutions.

  • A Self-Contained PMO is used to manage an independent project or program
  • A Project Support Office provides
    • Project Tools (documents, workspaces, sharable sites, etc.)
    • Resource Management (availability, capacity, etc.)
    • Project Methodology (workflows, best practices, etc.)
    • Knowledge Management (document repository, lessons learned, etc.)
  • An Excellence Center provides
    • Sponsorship (support from corporate management)
    • Leadership (awareness and ability to manage and influence stakeholders)
    • Earned Value (demonstrates the benefits of adopting PM best practices)
    • Professional Development (develop competent PMs)
  • An Enterprise or Strategic PMO provides
    • Strategic planning of projects
    • Management of projects across business units
    • Corporate knowledge management
    • Carl Souchereau, of SNC Lavalin Transmission & Distribution says this about a Strategic PMO, “PMOs are being asked to master the important, yet tactical aspects of project management as well as take strategic responsibility for managing investment decisions to optimize spend and maximize return across the portfolio.”

Validating Assumptions of an Ideal PMO

An ideal PMO is as varied as there are people and as there are needs for a PMO. At the most basic level the purpose of a PMO could include things like: positive impact to the organization, increased project throughput, competitive edge in the marketplace, and increased project efficiency. With some assumptions (that should be validated in any organization) I presume that each of these could be a valid goal of any PMO.

Presuming these are valid starting points, let’s review how we can reach these goals in our individual PMOs.

More…

To read entire paper (click here)

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 8th Annual UT Dallas Project Management Symposium in Richardson, Texas, USA in August 2014. It is republished here with permission of the author and symposium organizers. For more about the annual UT Dallas PM Symposium, click here.

About the Author

???????????????????????????????Dan Vickers PMP flag-usa

Senior Project Manager

STARS (a Marsh Company)

Texas, USA

Dan Vickers, a project leader at STARS, has worked with a variety of clients in multiple industries: Banking, Insurance, Staffing and Manufacturing. He graduated from the University of Texas at Dallas in 1992, began in project management in 1996, was certified as a PMP in 2003, and has led hundreds of projects from start to finish. He works in a fast-moving, multi-client, multi-team environment delivering risk management software solutions to clients across the U.S. He has led project management webinars to other project managers from around the world, authored numerous blogs and has been published in several online trade journals. He has a passion for continuous improvement in all areas of project management. Dan can be contacted at [email protected].

When and How PM Change Agents Add Business Value

SECOND EDITION                                                         

Stacy Goff

ProjectExperts President

IPMA VP of Marketing & Events; asapm President

Colorado, USA
_______________________________________________________________________

Abstract

What parts, which actions, what results, of your projects add the greatest business value? Which results are you missing? Whose responsibility is to assure project value? And, if success means more than on time, within budget, and acceptable quality, how do we manage to our stakeholders’ expectations? These are the questions executives, functional managers, market leaders and great project managers have asked—and answered—hundreds of times in our experience as a Change Agent.

The Challenge: The most effective project managers have always known that you provide the greatest value when you move beyond merely managing “the triple constraint.” Now that this insight is (finally!) going mainstream, how will you stay ahead of the stampede? Many will clearly show how you have been leading the way all along. But it is often the newcomers who think they created each innovation. 

A Solution: It’s all about the timing and nature and results of effective stakeholder Engagement. This is a key insight, because without the right stakeholder engagement, needed business change does not occur, and the project’s value is diminished. Given that insight, the proper timing and processes for achieving early engagement can easily follow. Of course, the right roles must take responsibility for needed actions, and the ongoing care of their results, all the way through Benefits Realization.

The Result: Imagine a world where all projects succeed; where all stakeholders are satisfied; where all project-oriented enterprises thrive. This is the value delivered by competent and performing project managers, who seize your role as a Change Agent for your organization.

Key Topics

  1. Five Crucial Value-add Timings and Results
  2. It’s All About Our People, Isn’t It?
  3. Defining and Measuring Value
  4. The Change Agent’s Leadership Role

A. Five Crucial Value-add Timings and Results

Managing a project is much like piloting an aircraft. There are several crucial timings when deft leadership, talent, quick reactions and redirection are essential for success. There are other timings when we can run on “cruise control” and perhaps, even take part in completing project work packages or other actions.

And just when are those crucial timings?

More…

To read entire paper (click here)

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 8th Annual UT Dallas Project Management Symposium in Richardson, Texas, USA in August 2014. It is republished here with permission of the author and symposium organizers. For more about the annual UT Dallas PM Symposium, click here.

About the Author

pmwj23-jun2014-Goff-IMAGEStacy A. Goffflag-usa

ProjectExperts®

Colorado, USA

STACY A. GOFF, the PM Per4mance Coach, is President of ProjectExperts®, a Program and Project Management methods, consulting, tools and training company. A Project Management practitioner since 1970 and consultant since 1982, he helps improve Enterprise, Department or Project Team PM Competence, effectiveness and Performance.

In addition to his contributions to Project Management Institute since 1983, he is also co-founder and President of asapm, the American Society for the Advancement of Project Management, and has been Vice President of Marketing & Events for IPMA, the International Project Management Association, from 2011 through 2014.

An insightful consultant and dynamic speaker, Mr. Goff provides program and project consulting, training and coaching services. He presents at major industry conferences, and offers workshops of interest to Executives, Managers, Program and Project Managers and leaders, technical staff, and individual contributors. By 2000, he had exposed over 45,000 people to Project Management. Today, and his tools and methods are used by government agencies, Enterprises, consultancies and individuals on six continents. Contact Stacy through his website, www.ProjectExperts.com.

All trademarks are the property of their respective owners.

To view other works by Stacy Goff, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/stacy-goff/.

 

American Community Survey: Strategic Planning and Portfolio Management in a Federal Program

SECOND EDITION

James Treata, Christine Cordesb, Susan Hostettera

  1. U. S. Census Bureau, Washington, DC, USA
  2. MITRE corporation, McLean, Virginia, USA

________________________________________________________________________

Abstract

The American Community Survey (ACS) program has proactively sought to establish strategic management processes for developing a vision for the program, aligning current and future investments to that vision. This paper provides background on the ACS, a large data collection program at the U.S. Census Bureau, and describes the process the ACS program used to implement a formal strategic planning process and a formal portfolio management (PfM) process. The paper includes key lessons learned and an overview of the planned next steps in completing the implementation of a comprehensive strategic management system.

Background

The U.S. Census Bureau’s American Community Survey (ACS) is the largest household survey conducted in the United States, and the only survey that provides estimates for small geographic areas and small population groups (small communities). The survey collects information on social, economic, demographic, and housing characteristics. Federal Agencies use estimates from the survey in determining the allocation of over $400 billion annually. In addition to its Federal Government customers, communities, businesses and the American public utilize ACS estimates.

The survey began as a small research program in the early 1990’s that was focused on demonstrating the feasibility of a monthly survey to provide quality estimates on an annual basis in lieu of once-a-decade effort as part of the decennial census (what was known as the ‘Decennial Long Form’). In 2005, the survey moved from a research program into full implementation, collecting data in every county in the United States and every municipio in Puerto Rico. In December 2010 and May 2011, the ACS accomplished major program milestones with the first release of annual estimates for small geographic areas and small population groups, respectively.

The ACS evolved over time in both design and staffing levels from a research effort to a full production program. The ACS did not begin establishing mature strategic planning and portfolio management (PfM) processes until starting in 2011. Program managers used good management practices from the beginning, but did not always conduct them in a well-documented and consistent manner. After nearly two decades of research and early implementation, many of the original senior management and senior technical experts had left the program, taking with them their vision for the future of the ACS program. The remaining staff of highly skilled and specialized individuals continued to meet the program’s operational challenges, but they were under-resourced and had been through a number of transitions that had affected staff morale.

In January 2011, a new ACS program manager brought an outsider’s perspective to the needs of the program and began to assess the status of the program. He determined that the ACS program had several challenges:

More…

To read entire paper (click here)

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 1st Annual University of Maryland Project Management Symposium in College Park, Maryland, USA and included in the conference Proceedings in June 2014. It is republished here with permission of the author and the Project Management Center for Excellence at the University of Maryland.

About the Authors

pmwj27-oct2014-American-AUTHOR1 TREATJames Treatflag-usa

U.S. Census Bureau

Washington, DC, USA

James Treat is Chief of the American Community Survey Office at the U.S. Census Bureau in Washington, DC, USA. He is a sixteen-year veteran of managing risk, developing schedules, and planning for large-scale Federal Government programs. He is currently the program manager for the American Community Survey (ACS) at the U.S. Census Bureau.  He is passionate about providing staff with the resources, direction and support needed to achieve the program’s strategic objectives. Mr. Treat can be contacted at [email protected]

pmwj27-oct2014-American-AUTHOR2 CORDESChristine Cordesflag-usa

MITRE

McLean, Virginia, USA

Christine Cordes is an accomplished strategic planning professional with seventeen years of leadership experience in domestic and international strategy development and execution, portfolio management and change management. Christine began her career as a Market Analyst in the Aerospace and Defense Industry, first with Airbus Industrie of North America, then with BAE Systems’ North American Headquarters and the company’s global headquarters’ in London. She then transitioned to Strategic Consulting with the Palladium Group, the consulting group founded by the authors of the Balanced Scorecard book series, before joining MITRE. At MITRE, Christine has supported the Census Bureau’s American Community Survey in their implementation of Strategic Planning, Portfolio Management, Governance and most recently, Performance Management. She is a Group Leader in the K81A Business Strategy department and co-chair of the Enterprise Strategy & Transformation Technical Center’s Group Leader Community of Practice. Christine received her undergraduate degree from Mercer University and her Masters in Organizational Management from George Washington University.    Christine can be contacted at [email protected]

pmwj27-oct2014-American-AUTHOR3 HOSTETTERSusan Hostetterflag-usa

U.S. Census Bureau

Washington, DC, USA

Susan Hostetter, PMP is a Project Manager in the American Community Survey Office at the U.S. Census Bureau in Washington, DC, USA. She has spent twenty plus years at the U.S Census Bureau. Her current assignment is standing-up the American Community Survey’s program management office. She is a card-carrying data geek, but in the last five years has found her calling in the project management field. Susan can be contacted at [email protected].

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

REPORT

By Jouko Vaskimo

Advisor, correspondent

Helsinki, 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 fifth plenary meeting at Kyoto, Japan, on September 8th … 12th 2014. The participants – over 60 representing 19 national standardization agencies – were warmly welcomed by Professor Masami Tanaka, the former President of ISO, and Mr Miles Shepherd, the Chairman of ISO/TC 258.

pmwj27-oct2014-Vaskimo-IMAGE1 COMMITTEE

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

The main initiatives within ISO/TC 258 are Working Group (WG) 1, developing an ISO standard on portfolio management, WG2, developing an ISO standard on project, program and portfolio governance, WG3, developing a vocabulary document, and WG4, developing an ISO standard on program management.

ISO/TC 258 has, at the time of the Kyoto event, 36 participating (P) members, and 10 observing (O) members. ISO/TC 258 current P – members are Argentina, Australia, Austria, Barbados, Brazil, Bulgaria, Cameroon, Canada, China, Colombia, Costa Rica, Denmark, Egypt, Finland, France, Germany, Greece, India, Italy, Japan, Korea, Luxembourg, Morocco, Netherlands, Norway, Peru, Poland, Portugal, Romania, Russia, South Africa, Spain, Sweden, Ukraine, United Kingdom, and United States.

ISO/TC 258 current O – members are Belarus, Belgium, Czech Republic, Hungary, Iran, Iraq, Israel, Lithuania, New Zealand, Slovakia, and Uganda. Liaison committees to ISO/TC 258 are currently ISO/IEC JTC 1 (Information Technology), ISO/IEC JTC 1/SC 7 (Software and systems engineering), ISO/IEC JTC 1/SC 40 (Service Management and IT Governance) and ISO/TC 176/SC 2 (Quality systems).

Liaison committees from ISOTC 258 are currently Liaison Committees from ISO/TC 258 are ISO/IEC JTC 1/SC 7 (Software and systems engineering), ISO/IEC JTC 1/SC 40 (Service Management and IT Governance), ISO/TC 20 (Aircraft and space vehicles), ISO/TC 176 (Quality management and quality assurance), and ISO/TC 176/SC 2 (Quality systems).

Organizations in liaison with ISO/TC 258 are International Project Management Association (IPMA), Project Management Institute (PMI), and Global Alliance for Project Performance Standards (GAPPS).

ISO/TC 258 plenary sessions were run by Mr Miles Shepherd, ISO/TC 258 Chairman, serving British Standard Institution (BSI), and by Mr Karl Best, ISO/TC 258 Secretary, serving American National Standards Institute (ANSI).

More…

To read entire report, click here

About the Author

jouko vaskimoJouko Vaskimo

 flag-finland

 

Jouko Vaskimo works as Development Manager at Aalto PRO, the Professional Development unit of Aalto University in Espoo, Finland. He is also an International Correspondent and Editorial Advisor for PM World in Finland. Jouko graduated from Helsinki University of Technology in 1992. Since then he has held project management related assignments with increasing levels for responsibility at Sinebrychoff Ltd, the oldest brewery in Scandinavia; Kemira Engineering Ltd, the leading chemicals manufacturer Finland; DNA Finland Ltd, a large Finnish mobile phone operator; Nokia Business Infrastructure; and Ixonos PLC, one of the leading Finnish ICT consultancies. Jouko holds the IPMA Level C (Project Manager) and Level B (Senior Project Manager) certificates and is the chairman of the Finnish IPMA Certification Body operating IPMA certification in Finland. He is a founding member of PMI Finland Chapter. He received the PMP certificate in 2003. Since October 2007, Jouko has been heading the Finnish delegation to ISO/TC 258. Jouko resides in Espoo, Finland and can be best contacted at jouko.vaskimo“at”aalto.fi .  To view other works by Jouko Vaskimo, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/jouko-vaskimo/

Project Management Report from Belo Horizonte

REPORT 

By Manuel Carvalho da Silva Neto

International Correspondent 

Minas Gerais, Brazil
________________________________________________________________________

A Project Management Maturity Research

Professors Darci Pardo and Russell Archibald started on September 1st, their Project Management Maturity Research. This is the sixth time, since 2005, that this research is conducted.

This research has contributed a lot, in recent years, to understand Project Management in Brazil is going and to confirm the direct relationship between Maturity and Project Success.

To participate in the research (in Portuguese only) one must access the site www.maturityresearch.com subscribe and choose the Type of Interest (Tipo de Interesse) as Professional.

Thereafter one responds to 28 questions that categorize his/her organization, as informs revenues and number of employees and asked to estimate the success rate of the projects of the organization, among other things. Only then goes up actually in the evaluation of maturity, that is sectoral or departmental, answering up to 40 questions of multiple choice type.
The survey runs until December 31 and their results should be released between March and April next year.

Minas Gerais Project Management Congress presents trends and market practices

Stakeholders, PDCA, Practices and Management Models have been widely discussed in the 9th edition of the PMI – Minas Gerais Chapter Project Management Congress. Held on 22 and 23 September in Belo Horizonte, the event was titled “Projects, People and Results: Cultural Diversity to Management Strategies”. More than 500 participants attended the event which also celebrated 15 years of PMI-MG. Chapter with about 1,330 members. This Chapter received in March this year the Retention Award presented by PMI for more than 71% retention of professionals. “This is an unprecedented result in 15 years in the PMI state. Something that fills us with pride, as it reflects the effort of the whole group. It is the story of professionals who want to move increasingly towards project management in Brazil, “said chapter president, Myriam Moura during the opening ceremony

More…

To read entire report, click here

About the Author 

Manuel-Carvalho-da-Silva-NetoManuel Carvalho da Silva Netoflag-brazil

Minas Gerais, Brazil

Manuel Carvalho da Silva Neto, MSc, Mech. Engineer and PMP is Fundação Dom Cabral Invited Professor and also Consultant. He is a seasoned professional with over 39 years of experience in Project Management, Process Management and Strategy. Manuel has managed or participated in more than a hundred projects across different fields including Steel, Mining, IT, Telecom, Food Processing, Government and Construction to mention a few. He worked also in projects of PMO (Project Management Office) and Methodology of Project Management. He has also strong skills in Leading People and Finance. He served as Minas Gerais State Undersecretary for Planning and Budget, from 2007 to 2008. Manuel can be contacted at [email protected].

To view other works by Manuel da Silva Neto, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/manuel-carvalho-da-silva-neto/.

Project Management Update from Milan

REPORT 

By Luca Cavone

International Correspondent 

Milan, Italy
________________________________________________________________________

Interview with Ivan Calimani, Chairman of IPMA Young Crew Italy

“Project management: a development opportunity for young professionals”

We hear more and more about Project Management every day and not only in our professional life; this can be a solution to the crisis and above all a way to give perspective to young people who are struggling to enter the job market. Here is an interview with Ivan Calimani, Chairman of IPMA Young Crew Italy, providing his point of view.

pmwj27-oct2014-Cavone-IMAGE1 CALIMANI  

Ivan Calimani graduated from EDA in 2007; he worked for several years in London, dealing with the development and management of projects with social impact such as the construction of the main Islamic Cultural Center of the city. In 2010 he entered in Expo 2015 in Milan, where he currently manages programming work and international co-ordination with the many participating nations. He’s within IPMA YC Italy Board since 2011 being responsible for the partnerships. In 2012 he was appointed as Chairman of IPMA YC Italy.

Luca Cavone (Luca):          Ivan, let’s start with IPMA Young Crew, tell us about it:

Ivan Calimani (Ivan):           The Young Crew was founded as the youth section of the International Project Management Association, a non-profit organization operating in 55 countries around the world with the aim of seeking and promoting the development and standardization of a modern Project Management. As a youth section our mission is to create opportunities for exchange, share know-how and experience through participation in cultural initiatives and explore new areas in which to apply the Project Management methodologies to address the changes that the market is experiencing. 

More…

To read entire report, click here

About the Author

130923-cavone-150X184Luca Cavoneflag-italy

Milan, Italy

Luca Cavone is a Consultant at JMAC Europe, the Consulting firm of the Japan Management Association. He is mainly focused to support companies in Innovation Management and Product Development Projects typical of R&D and Marketing areas, with an interdisciplinary background of the business processes. In JMAC Luca follows also the study and development of project management methodologies based on the application of Lean Thinking approach. Before joining JMAC he worked several years in the Aerospace industry.  Since 2009 Luca has been actively involved with the International Project Management Association (IPMA); at that time he was between the founders of the Young Crew Italy and was appointed as first chairman. In 2011 he left the position to join the Young Crew Management Board, where he’s currently Head of Membership and Responsible for the Young Project Manager of the Year award. Since 2010 Luca is also a member of the Executive Board of IPMA Italy. Luca is an international correspondent for PM World in Italy; he can be contacted at [email protected].

To view other works by Luca Cavone, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/luca-cavone/.

Project Management in Spain – monthly report

REPORT 

By Alfonso Bucero

International Correspondent & Editorial Advisor

Madrid, Spain
________________________________________________________________________

Anual Project Management Encontro in Madrid

Construction Industry

AEDIP, as it is doing since 1999, was attending in Madrid to the Annual Project Management Meeting (Construction Industry) organized by Metros 2 and CESINE. This is one of the events that join all well-known and recognized Spanish project management firms from the construction industry.

The program consisted of a practical vision about the projects currently being managed by the specialized Consulting firms, with a high attendance from “Private Equity” firms; the challenge for the new projects in international markets.

That meeting, in its 16th edition, happened last September 17th, 2014, organized by CESINE Formación and Revista Metros2. That event was delivered from 9:00am to 14:00 at NH PRINCIPE DE VERGARA HOTEL (c/ Principe de Vergara 92, Madrid).

In that event participated well known professionals and firms From the Project Management, Construction Management industry, and from the Spanish Engineering Industry as Mr. Jordi Seguró (AEDIP President), Mr. Alberto de Frutos (DG de Bovies Lend Lease), Mr. Roberto Albaizar (DG de JACOBS), Mr. Marcos Uttley (D.G de Arcadis EC Harris) and several experts and friends giving some value to the event that were some of the keys for the future in the new market context, taking into account the market globalization. We counted on the special participation of Brigard & Urrutia firm that talked about some new opportunities and investments in Colombia.

More…

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

About the Author 

alfonso-buceroAlfonso Bucero flag-spain

Contributing Editor

International Correspondent – Spain

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

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

The Origins of Hammocks and Ladders

FEATURED PAPER 

By Patrick Weaver

Melbourne, Australia
________________________________________________________________________

Hammock and Ladders are activity types that were developed in the period 1961 to 1965. This paper is focused on outlining the development of these useful scheduling assets. However, it’s important to note Hammocks, LOE and Summary Activities are three completely different types of activity.

  • Summary Activities are a function of the coding structure in a schedule; at this time the origin of summary activities is uncertain, but the concept seems to have emerged in the mid-1980s as part of the move from DOS and text based scheduling tools to software designed to operate with the early Windows graphical user interface. The origins may be earlier (any advice on this will be welcome).
  • Level of Effort (LOE) activities are aligned with Level of Effort work packages in the WBS and Earned Value systems. Earned Value emerged in the 1970s.
  • Hammock activities are described in detail below.

All three activity types can be used to carry resources for a period of time (usually ‘overheads’ or supporting resources) and both Summary Activities and Hammocks can be used to create summary reports, but the differences in the way these three activity types are created and used is significant.

Hammock Activities

Hammocks are a cross between a link and an activity. A Hammock is an activity that spans between two points in a schedule. Having no set duration of its own, its duration is derived from the difference in time between the two ‘connection points’ in the schedule. It can be thought of as ‘hanging’ between these two points in the same way a normal hammock may hang between two trees.

More…

To read entire article (click here)

About the Author

patrick weaverPatrick Weaverflag-australia        

Melbourne, Australia

Patrick Weaver, PMP, PMI-SP, FAICD, FCIOB, is the Managing Director of Mosaic Project Services Pty Ltd, an Australian project management consultancy specialising in project control systems and a PMI Registered Education Provider. Patrick is also the business manager of Stakeholder Management Pty Ltd. He is a Fellow of the Chartered Institute of Building, Australasia (FCIOB) and a Fellow of the Australian Institute of Company Directors (FAICD). He is a member of the PMI College of Scheduling, and the PMI Melbourne Chapter (Australia), as well a full member of AIPM, APM (UK) and the College of Performance Management. Patrick has over 35 years experience in Project Management. His career was initially focused on the planning and managing of construction, engineering and infrastructure projects in the UK and Australia. The last 25 years has seen his businesses and experience expand to include the successful delivery of project scheduling services and PMOs in a range of government, ICT and business environments; with a strong focus on project management training. His consultancy work encompasses: developing and advising on project schedules, developing and presenting PM training courses, managing the development of internal project control systems for client organisations, and assisting with dispute resolution and claims management. He is a qualified Arbitrator. In the last few years, Patrick has sought to ‘give back’ to the industry he has participated in since leaving college through contributions to the development of the project management profession. In addition to his committee roles he has presented papers at a wide range of project management conferences in the USA, Europe, Asia and Australia, has an on-going role with the PMOZ conference in Australia and is part of the Australian delegation to ISO TC258. Patrick can be contacted at [email protected] or at www.mosaicprojects.com.au.

To see other works published in the PM World Journal by Patrick Weaver, visit his author showcase at http://pmworldlibrary.net/authors/patrick-weaver/

Updating the Lang Factor and Testing its Accuracy, Reliability and Precision as a Stochastic Cost Estimating Method

FEATURED PAPER 

By Yosep Asro Wain, CCP

Jakarta, Indonesia
________________________________________________________________________

ABSTRACT

The Lang factor is a one of the factored estimating techniques that is recommended American Association of Cost Engineers (AACE) International for class 4 and class 5 estimates. This method was proposed by Hans J. Lang in 1940’s use a simple formula: consist of a set of factor multiplied by the Total Equipment Cost (TEC) to obtain the Total Plant Cost (TPC). These factors are 3.10 for solid plant, 3.63 for solid-fluids plant and 4.74 for fluids plant.

Over the ensuing decades, several people tried to calculate the Lang factor by using their current data.

In this paper, the fluid plant Lang factor was updated and tested its accuracy, precision and reliability by using historical project data from a major Indonesian national oil company.

The result of updating and testing show that while the Lang factor is appropriate for use for Class 4-5 estimates, because it exhibits such a high degree of variability; it is not recommended for creating high accurate, reliable or precise of cost estimates.

Keywords: Lang factor, Factorized Estimating, Cost Estimating, Stochastic Cost Estimating, Parametric Cost Estimating, Equipment Factor Cost Estimating, Statistical Analysis, Monte Carlo Simulation.

  • Cost Estimation in the Project.

Cost estimating is the predictive process used to quantify, cost, and price the resources required by the scope of an investment option, activity, or project [1]. In that regard, cost estimating contains two thinks, namely resources quantification and resources pricing or costing. In resources quantification, the project scope definition in the form of the work breakdown structure (WBS) and the work statement may be used to identify the activities that make up the work, and further, each activity is decomposed into detailed items so that labor hours, material, equipment and subcontract are itemized and quantified [2]. In resources pricing, any methodology such as stochastic, factored, or deterministic may be used to cost the resources.

The cost estimating process is carried out during the entire of the project life cycle. At beginning of the project where scope definition is still roughly, the accuracy of the cost estimation is low. As the project definition go to more detail, then the accuracy of the cost estimation become higher. 

More…

To read entire paper (click here)

About the Author

pmwj27-oct2014-Wain-AUTHOR IMAGEYosep Asro Wain flag-indonesia

Jakarta, Indonesia

Yosep Asro Wain is a professional in oil and gas, especially in refinery fields with 20 years experiences. The most of his job are in the project management field, namely project engineering design, project budgeting, project cost estimating, project cost control, project scheduling and contract engineering. He is currently a cost engineering specialist at Engineering Center, Refinery Directorate of Pertamina. Yosep holds a bachelor degree in Electrical Engineering (in Control Engineering field) from Bandung Institute of Technology (ITB), and is a Certified Cost Professional (CCP-AACEI). He is also a senior process control and instrumentation engineer. He lives in Jakarta, Indonesia and can be contacted at [email protected].

Project Followership: How Project Team Members Can Contribute to Project Success

FEATURED PAPER

Marco Sampietro

Milan, Italy
________________________________________________________________________

INTRODUCTION

By screening the books addressing project management topics, it can be noted that most publications are aimed at project managers and, more generally, the people responsible for coordinating complex and innovative initiatives. In recent years, it was understood that without the support of senior management a project manager has greater difficulty in managing the project. For this reason other publications, targeted to senior management which commissions and sponsors the projects (Archibald and Archibald 2013, West 2010, Englund and Bucero 2006, Love and Love 2000), appeared.

Other publications, instead, recognize the importance of the project team as key player in project environments and they provide hints to the project managers on how to lead, motivate, and manage project teams (DeMarco and Lister 2013, Brown and Hyer 2009, Wong 2007).

It was only very recently that some companies and training providers realized it is necessary to work on the whole team in order to achieve positive results. The trend is moving toward a “widespread” project management where the project leadership is shared among the entire project team. For example, the Agile Project Management approach goes in this direction.

WHY PROJECT MANAGERS ARE NOT ENOUGH

The practice requires that each project be assigned to a project manager. The project manager, or project leader, is the key figure around which the entire project revolves and is the person formally responsible for completing the project in accordance with the objectives set in the project mandate.

The project manager is required to coordinate all the project management activities, from the start-up to closing, by way of planning and control. Project management is therefore inextricably linked to the project manager’s ability to coordinate.

More…

To read entire paper (click here) 

About the Author

pmwj27-oct2014-Sampietro-AUTHORMarco Sampietroflag-italy

Milan, Italy

Since 2000 he has been professor at SDA Bocconi School of Management, Bocconi University, Milan, Italy. SDA Bocconi School of Management is ranked among the top Business Schools in the world (Financial Times Rankings).

He is a Core Faculty Member at SDA Bocconi School of Management and teaches Project Management in the following programs: MBA – Master of Business Administration, EMBA – Executive Master of Business Administration, GEMBA – Global Executive Master of Business Administration. He is also responsible of the executive education course: IT Project Management. He is also a Faculty Member at MISB – Mumbai International School of Business, the Indian subsidiary of SDA Bocconi School of Management.

Since 2001 he has been a contract professor at Bocconi University where he teaches Project Management, IT Management, and Computer Skills for Economics. In 2008 and 2009 he has been Vice-Director of a Master Degree in IT Management at Bocconi University. He is also Contract Professor at the Milano Fashion Institute where he teaches Project Management. Some of his international experiences are: speaker at the NASA Project Management Challenge 2007, 2008, and 2011, USA; speaker at the PMI Global European Congress, 2010; speaker at the IPMA-GPM Young Crew Conference, 2008, Germany; visiting instructor at the University of Queensland, Australia.

He is co-author and/or editor of 10 books on project management and 7 books on IT management. Finally he is author of internationally published articles and award winning case studies. Dr Sampietro can be contacted at: [email protected]

Classes of Factors to be Considered in Infrastructure Investment Prioritization

FEATURED PAPER 

By Bob Prieto

Princeton, NJ, USA
________________________________________________________________________

The prioritization of infrastructure investment must be focused on achieving the strategic objectives of the implementing agency or governmental unit while recognizing the broad role that infrastructure plays in serving society and supporting adjacent regional and national networks. Clear, robust objectives must be established; continuously articulated; alignment with affected stakeholders achieved; performance metrics established and continuously monitored and measured; and, corrective actions and portfolio adjustments made based on performance and changed futures. Many of these performance metrics will be associated with the factors to be considered in initial prioritization.

The strategic objectives established for our infrastructure systems must as a minimum address the following objectives:

  • Economic – encompassing societal, agency (or governmental unit), and project considerations
    • Societal related economic considerations can include job creation; infrastructure efficiency; new opportunities created; level of quality of the system; contribution to directional desired change
    • Project level considerations focus more on the capital efficiency of the developed assets
  • Social – including stakeholder related concerns and desires; contextual and cultural appropriateness; compatibility with community goals and other social objectives. It is important to recognize that stakeholders may include non-local interests such as seen from national level NGO’s, trade unions and business interests.
  • Environmental – including both the environmental impacts associated with facility construction and operation but also the effects of longer term environmental factors including global climate change on our infrastructure facilities, systems and structures. Health, safety and security considerations may be considered in this context as well.
  • Political – infrastructure is an important political and policy tool and outcome; equity (impact and benefit distribution)
  • Sustaining Capacity and Capability – ensuring that public and user safety are sustained at acceptable levels and that operational and performance requirements are met throughout the life cycle by maintaining our infrastructure assets in a state of good repair. Emerging considerations around resilience as reflected in achievement of defined recovery timeframes represent new considerations for sustaining the capability and capacity of many infrastructure assets.
  • Improving Outcomes – importantly, demonstrating continuous substantial improvement in life cycle cost to support capital efficiency and achievement of the broader set of objectives articulated; and addressing future resilience needs including those related to climate change and other man made and naturally occurring “events of scale”

The final developed set of objectives should be distilled to the smallest set of objectives considering common attributes. This becomes particularly relevant as we are prioritizing sustaining capital investments or selecting among fundamentally similar projects.

More…

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

About the Author

bob prietoBob Prietoflag-usa

Senior Vice President

Fluor

Princeton, NJ, USA

Bob Prieto is a senior vice president of Fluor, one of the largest, publicly traded engineering and construction companies in the world. He focuses on the development and delivery of large, complex projects worldwide. Bob consults with owners of large engineering & construction capital construction programs across all market sectors in the development of programmatic delivery strategies encompassing planning, engineering, procurement, construction and financing. He is author of “Strategic Program Management”, “The Giga Factor: Program Management in the Engineering and Construction Industry” and “Application of Life Cycle Analysis in the Capital Assets Industry” published by the Construction Management Association of America (CMAA) and “Topics in Strategic Program Management” as well as over 500 other papers and presentations.

Bob is a member of the ASCE Industry Leaders Council, National Academy of Construction and a Fellow of the Construction Management Association of America. Bob served until 2006 as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC), working with U.S. and Asia-Pacific business leaders to shape the framework for trade and economic growth and had previously served as both as Chairman of the Engineering and Construction Governors of the World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. Previously, he served as Chairman at Parsons Brinckerhoff (PB), one of the world’s leading engineering companies. Bob Prieto can be contacted at [email protected].

To view other works by Bob Prieto, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/bob-prieto/

Effective Contract Negotiation through Persuasion

FEATURED PAPER

Dr. Ahmed El Ghanamy
Bilston Community College

Prof. Dimitrios P. Kamsaris
Bilston Community College

United Kingdom
________________________________________________________________________

1.    Introduction

The objective of this paper is to present a topic on Effective Contract Negotiation. The research objective is to attempt to identify the way in successfully negotiate contracts, deals and disputes while maintaining good relationships with the other party and their advisers. Also a variety of effective negotiating skills and styles coupled with a detailed analysis of negotiating techniques.

1.1.        Definitions

Contract: Effective contract negotiation is at the heart of commercial success. The art of Contract negotiation is just as important for the support team as it is for the up-front negotiator.

A contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. The agreement can be formal, informal, written, oral or just plainly understood. Some contracts are required to be in writing in order to be enforced.

A contract is also an agreement between two or more parties which creates obligations to do or not do the specific things that are the subject of that agreement. Simple examples of a contract are a lease, a promissory note, or a rental agreement

Negotiation: Negotiation to confer with another or others in order to come to terms or reach an agreement, to arrange or settle by discussion and mutual agreement

  1. Literature on Communication and Persuasion

Persuasion is approach started with ancient Greek Philosophers such as Aristotle (McGuire, 1969). Persuasion is a time consuming effort where symbols are used, and include the active involvement of the receiver of the message where people try to convince each other to change their behavior regarding an issue through the transmission of a message (Perloff, 2003). To practice persuasion, we must understand that other people have desires and beliefs, a mental state that is vulnerable to change, and has a different perspective than they do (Perloff, 2003). People’s commitment to an idea develops with understanding (Calfee & Ringold, 1994). 

More…

To read entire paper (click here)

About the Authors

pmwj22-may2014-Kamsaris-IMAGE3 GHANAMYDr. Ahmed El Ghanamy flag-egyptflag-uk

Birmingham, UK

Dr. Ahmed El Ghanamy is a Trainer of Management at Bilston Community College in the UK.  Dr. El Ghanamy has an extensive professional experience of more than thirty years in the petroleum industry. More specifically at the moment he holds the position of Financial General Manager Petroleum Marine Services Company (PMS) in Cairo, Egypt. Prior to that position he worked as a Head for Khalda Petroleum Company (KPC) in Egypt. Furthermore, he trains public & private sector executives in U.K, UAE, KSA, Qatar, and Egypt. Email: [email protected]

To view other works by Dr El Ghanamy, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/dr-ahmed-el-ghanamy/

dimitrios-kamsarisProf. Dimitrios P. Kamsaris flag-greeceflag-uk

Birmingham, UK

Prof. Dimitrios P. Kamsaris is the Chairman of the Academic Board and Vice President at Bilston Community College in the UK, responsible for the International Affairs. He is a Professor of Organizational Behavior in Switzerland and Visiting Professor of Management and Marketing at Business Schools in UK, Denmark, France, Cyprus, and Greece. Prof. Kamsaris has completed postdoctoral education at Harvard University. He held CEO and managerial positions at: Coca-Cola, Sherwin Williams, Olympic Games of 2004, Shell and D Constructions.

Today, he is a strategic consultant in major companies and trainer of public & private sector executives in the U.K., Denmark, KSA, UAE, Qatar, Oman, Cyprus, Greece and Pakistan. He is published in numerous business, academic journals and books. Email: [email protected]

To view other works by Prof Kamsaris, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/dr-dimitrios-p-kamsaris/

The algorithm for generating an optimal investment portfolio

FEATURED PAPER 

By Prof. Yan Gelrud

Chelyabinsk, Russia
________________________________________________________________________

Introduction

The term investment portfolio means a certain set of securities owned by a natural person or a legal entity which acts as a complete management object. The main problem that must be addressed when forming securities holdings is the task of distributing a certain amount of money on various alternative investments (such as shares, bonds, cash, etc.) by an investor so that their goals are achieved in the best way.

In the first place investor seeks to obtain maximum income by means of: benefit from a favorable shares exchange rate; dividends; receiving solid interest, etc. On the other hand, any capital investment is associated with not only the expectation of income, but also with the constant danger of loss. Therefore, it is essential to take risk into account when solving optimization problems of choice of the securities holdings. The meaning of the portfolio is to improve the investment environment, giving the aggregate of securities such investment characteristics that are unattainable from a position of individual securities and are only possible in their combination.

Income on portfolio investments are gross profit on the entire set of securities included in a particular portfolio taking risk into account. The problem of quantitative correspondence between profit and risk arises and it must be addressed promptly in order to continuously improve the structure of already built and building of new portfolios in accordance with the wishes of investors. Taking into account the investment qualities of securities we can generate a variety of portfolios, each of which will have its own balance between the existing risk acceptable to the owner of the portfolio, and the expected return (income) during a certain period of time. The ratio of these factors allows us to determine the type of portfolio securities.

One of the most effective methods of assessment in the preparation of the investment portfolio is modeling. Modeling allows one to obtain the required investment characteristics of a future portfolio depending on the prevailing market conditions in a short time.

More…

To read entire paper (click here)

About the Author

Yakov-GelrudYan D. Gelrudflag-russia

Professor, South Ural State University

Chelyabinsk, Russia

Mr. Yan Gelrud was born in 1947 in Birobidjan (Khabarovsk Territory). In 1965 he finished a school of mathematics and physics at Novosibirsk. In 1970 he graduated from the mathematical faculty of university at Novosibirsk on “Mathematics” speciality. From 1970 to 1991 Yakov was working in the Research Institute of automated control systems as a head of mathematical division. He took part in creation and adoption of more than 100 automated control systems in different branches of industry.

From 1991 to 1997 Mr. Gelrud was doing business, being director general of “URAL-ASCО-SERVICE”. Since the 1st of September 1997 till now he works as a professor of the “Enterprise and management” department in South Ural State University. He teaches a multitude of disciplines, such as “Mathematics”, “Theory of probability and mathematical statistics”, “Econometrics”, “Economic and mathematical methods”, “Mathematical methods of decision-making”, “Bases of decision-making methodology”, “Economical evaluation of investments”, “Mathematical methods and models of project management”, “Studies of managerial systems.”

Yan Gelrud has more than 100 publications and speeches on seminars and conferences of different level. His monograph “Project management in conditions of risk and uncertainty” was published recently. He can be contacted at [email protected]

To view other works by Prof Gelrud, see his author showcase in the PM World Library at http://pmworldlibrary.net/authors/yakov-gelrud/