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The Human Change BOK

 

BOOK REVIEW

Book Title:  The Human Change Management Body of Knowledge (HCMBOK), 3rd Edition
Author:  Vicente Goncalves, Carla Campos
Publisher:  CRC Press
List Price:  $59.95
Format:  Hard cover, 204 pages
Publication Date:   2018
ISBN: 978-1-138-57647-6
Reviewer: Danny Boswell
Review Date: December 2018

 



Introduction

Change Management has been acknowledged as an important organizational method, and several books address a multitude of tools to address the concept. It is not a new topic. About 2,500 years ago, the pre-Socratic philosopher Heraclitus stated that nothing is permanent, except change. Once that is accepted, the more important question is what is to be done about it.

Several systems have been created to address change, and there are various change processes, procedures, and best practices. Those can be useful, and result in a plethora of tools and artifacts to be applied or interpreted. Goncalves and Campos created a book that focuses on an often overlooked component – humans.

Overview of Book’s Structure

First and foremost, the book was created for project managers. The first chapter addresses the ever present concept of change, and even references Heraclitus, as many change books do. However, the authors fill in the 2,500 year gap by discussing different generations of change management in business as well as identifying contributions from social science, anthropology, and psychology.

The ensuing chapters are structured much like the PMBOK. The dot(.) format is applied – for example, 3.6.2 defines the Project Organization Chart. Also like the PMBOK, the charts and graphics are simple but effective. The familiarity of style enables project managers to focus on the material without wading through paragraphs of prose wondering how the concept applies to projects – there are chapters on Initiation and Planning, Execution, Implementation, and Closing. Further chapters address communication, conflicts, creativity, and competencies, as well as other topics. These discussions enable a PM to apply the addressed tools where they are most important, to the people.

Highlights

The driving force to the book is that every project, every organization, and every result has one thing in common – people. If a PM is not working with people, the project is already in trouble. All the project tools and reports will not help if the human aspect is not being addressed. The authors discuss the human element for every process and explain the reason behind their suggestions.

To enact the human that is reading their material, the authors include a list of activities after many of the sections. Rather than simply providing a lecture, these specific actions encourage a PM to enforce the message behind the words which can help personalize the message to each individual reader. These activities may include more tools to employ and are a tremendous way to engage one with the material beyond receiving it, but to also understanding it.

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About the Reviewer


Danny Boswell

Texas, USA

 

 

 

Danny Boswell has spent 25 years working within all aspects of IT project delivery – defining the project, securing the funding, designing the solution, coding, testing, deploying, and analyzing the result. Fifteen of those years have been on PM teams or program management. He is currently a cybersecurity program manager. Danny is a member of the Dallas PMI and has a business degree in Finance and an MA in History of Ideas.

 

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].

 

 

Driving Digital

 

BOOK REVIEW

Book Title: Driving Digital: The Leader’s Guide to Business Transformation through Technology
Author: Isaac Sacolick
Publisher: AMACOM
List Price: $29.95
Format: 305 pages, hardback
Publication Date: 2017
ISBN: 978-0814438602
Reviewer: Pranab Das, PMP
Review Date: December 2018

 



Introduction

Driving Digital by Isaac Sacolick is a leader’s guide to business transformation through technology. In this book, he shares his experience and best practices about formulating a digital strategy, transforming business and IT practices, aligning operations, promoting Agile methods, driving culture change, tracking the return of investment, strengthening data-driven decision making, expanding data science practices, cultivating strategic technology capabilities and develop innovative digital products faster. This book covers areas of management, e-commerce, entrepreneurship and strategic planning for digital transformation.

Overview of Book’s Structure

The chapters of Driving Digital are organized to walk the reader through the process of rolling out a digital transformation.

  • Chapter 1 The Transformation Imperative

Beginning Transformation—Every Day Is Day One
What is Digital Business?

  • Chapter 2 Agile Transformational Practices

Understanding Agile Practices
Agile Planning Practices
Aligning Software Development Life Cycle to Agile—What is your Minimal Viable Practice?
Release Lifecycle
Transformational Improvements Through Agile

  • Chapter 3 Technical Foundations for Transformation

Introducing the New IT Operations
Agile Operations Defined
Agile Architecture
IT Culture

  • Chapter 4 Agile Portfolio Management

What Is Everyone Working On?
Implementing Portfolio Management
Financial Portfolio Practices
Final Thoughts on Agile Portfolio Management

  • Chapter 5 Transforming to a Data-Driven Organization

To Become Data Driven, Start by Reviewing Our Past Data Sins
The Challenges of Enabling Big Data and Data Science
Transforming to a Big Data Organization
Transforming IT With Data Services
The Agile Data Organization
Summary of Data Governance
Data-Driven Culture Summary

  • Chapter 6 Driving Revenue Through Digital Products

Strategic Planning Digital Revenue Products
Product Strategy in Digital Transformation
From Strategy to Product Planning
From Product Planning to Development
What Digital Leaders Should Do to Enable Product Management

  • Chapter 7 Driving Digital: Smarter and Faster

The Cultural Underpinnings of Digital Organizations
Driving Digital—The Lens of Smarter-Faster

Highlights

I would start reading the chapters in serial order from beginning to end. The major sections of the book are:

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About the Reviewer


Pranab Das, PMP

Dallas, Texas

 

 

 

 Mr. Pranab Das is a seasoned IT professional with experience in various industries providing innovative IT solutions with best practices and positive ROIs. He is a results-oriented technology manager with demonstrated expertise in Cloud, IT infrastructure, project management, agile software development, systems engineering, enterprise architecture, cybersecurity, application development, IT risk management and technical product management. Pranab has a master’s degree in engineering and an MBA. He has obtained the Project Management Professional (PMP) certification and various IT project management certifications. He is a member of the Dallas chapter of the Project Management Institute (PMI).

 

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].

 

 

Implementing Project Portfolio Management

 

BOOK REVIEW

Book Title:  Implementing Project Portfolio Management
Author:  Dr. Te Wu & Dr. Panos Chatzipanos
Publisher:  Project Management Institute, Inc.
List Price:   $39.95
Format:  Paperback, 309 pages
Publication Date:  2018
ISBN: 978-1-62825-557-7
Reviewer: Nancy Everett, PMP
Review Date: December 2018

 



Introduction

It is helpful to define the target audiences for this book as it describes the “hows” of portfolio management. Since this is a growing field it is good that an overview is given on selecting the global committee members to tap into their expertise. What a great way to continue sharing the knowledge in this emerging field by establishing a website to share tools, techniques and templates.

Overview of Book’s Structure

The book is laid out in a good structure that provides high-level understanding of portfolio management and then walks you through the more detailed levels. This allows the reader to dive deep into areas that pertain more with their individual interest, as well as aligning with their organizational maturity in portfolio management.

The list of tables and figures is very helpful to quickly point you to specific information and samples. These can be easily reviewed and provide guidance on how to apply the processes, tools and techniques to your portfolio needs depending on how advanced you and your organization are in portfolio management.

Highlights

Aligning portfolio management with all change initiatives within the organization’s strategy makes senses, but it is sometimes difficult to implement. The guidance provided on principles, processes and practices gave me a best understanding on how to approach alignment within PMO and my organization.

The overview on tracking dependent components in dependency register and using the register to monitor was helpful. We implemented cross-project dependencies at my organization and leverage our PPM tool for tracking them. As Portfolio Manager, I follow up with project managers to ensure they are continuing to follow through on addressing the dependent component.

The look at the current and future trends in the industry is helpful to see how portfolio management is continuing to evolve and grow with emerging technologies, agile and change management.

Highlights: What I liked!

Providing more detailed information on the fundamental principles of Portfolio Management helped me to better understand all aspects. It allowed me to focus on areas that I am currently applying in my role as a Portfolio Manager and learn more on areas that I can introduce to my organization as we mature.

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About the Reviewer


Nancy Everett

North Texas, USA

 

 

Nancy Everett, PMP is currently working at Texas Capital Bank as VP, EPMO Portfolio Manager in Information Technology. Overseeing, monitoring and reporting on programs and projects across the organization. Performing strategic analysis on portfolio and identifying change impacts to clients and employees to improve adoption of change and the client experience. Applying years of experience in consulting, project management, business analysis and IT development to guide our teams to successful execution and delivery of solutions.

She previously worked as a consultant for Microsoft partners implementing Business Intelligence, SharePoint, CRM, ERP and custom development solutions across various industries. She received a B.B.A. degree from the University of Memphis and an M.B.A. from Southern Methodist University. Nancy obtained the Project Management Professional certification in 2005.

Nancy 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].

 

 

Breakthrough Project Portfolio Management

 

BOOK REVIEW

Book Title:  Breakthrough Project Portfolio Management: Achieving the Next Level of Capability and Optimization
Author:  Murali Kulathumani
Publisher:  J. Ross Publishing
List Price:  $59.95
Format:  Hard cover, 339 pages
Publication Date:   2018
ISBN: 9781604271492
Reviewer: Edward A. Haskin
Review Date: December 2018

 



Introduction

This book provides a new approach to transform your project portfolio by utilizing a new modified earned value management approach (mEVM). The author begins by describing the core tasks of portfolio management, then outlines the new (mEVM) approach, real-life implementation strategies and support systems that play a role in making your portfolio successful. Whether or not you have an existing portfolio or starting from scratch. The book can be used in many scenarios for guidance. The real-life applications and even political considerations are helpful guides for any level of portfolio maturity.

Overview of Book’s Structure

The book is divided into four parts. Part I covers key components of portfolio management, part II covers the (mEVM) approach, part III covers strategies for real-life implementation and part IV discusses additional support systems a portfolio manager would need for continued success. Each chapter follows a blueprint that is easy to follow and develops a rhythm that outlines the goals, introduces the topic, explains the topic, describes levels of capability maturity and concludes with a review of the learning objectives.

Some chapters will also include additional information on the need for the topic, additional elaboration, and “how-to” sections to develop the building blocks of a certain capability. Each chapter summary provided a quick synopsis of the contents and connected relevant pieces of information.

Highlights

It is obvious that the highlight of the book is the authors explanation of the (mEVM) method of using objective measures to assess and monitor projects within a project portfolio. The authors graphs and illustrations allow the reader to visualize how this would work in their situation. He provides steps to produce not only monthly but multi-year reporting. This forces the reader to think of using this method in the long-term. After the description of (mEVM), the author takes the reader down a carefully thought out path to roll-out such a program.

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About the Reviewer


Edward Haskin

Texas, USA

 

 

 

 Edward Haskin is an executive leader with an extensive and broad background in risk management, compliance and project management. He is also an author, entrepreneur, speaker, grant writer, and knows the value of a good ear hustle.

Edward’s experience and training have given him a unique ability to forge innovative approaches to meet the needs of today’s rapidly changing business environment. He is deeply committed to finding and implementing the tools, processes, and best practices necessary to minimize risk and identify the options that hold the most potential. He strives to give companies the tools and techniques they need to make faster, and less costly decisions so they can move forward efficiently to achieve their objectives.

Edward began his career as a mortgage banking compliance officer and quickly built his expertise to include project management, lean six-sigma, and risk management. He has successfully directed complex projects in government offices and public and private organizations in a variety of complex engagements.

Edward 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].

 

 

Achieve PMP Exam Success

 

BOOK REVIEW

Book Title:  Achieve PMP Exam Success, 6th Edition
Author:  Diane Altwies, PMP; Diane White, PMP
Publisher:   J. Ross Publishing
List Price:   $79.95
Format:  Softcover 7.5 x 9.25, 526 pages
Publication Date:   2018
ISBN: 978-1-60427-152-2
Reviewer: Ellie Sundstrom
Review Date: December 2018

 



Introduction

Achieve PMP Exam Success is an impressive study guide and very helpful in preparation for the PMP test. It is highly organized and offers great advice and a wealth of practical information for test taking success. The excellent memorization tools, in and of themselves, are worth the price of the book. The assessments or practice tests provide an excellent benchmark and reveal weak areas that need to be strengthened.

Overview of Book’s Structure

The book covers study tips for the four-hour PMP exam, important information about the environment, the project manager role, integration, scope, schedule, cost, quality, resources, communications, risk, procurement, stakeholders and finally appendices. The book is, understandably, highly organized and easy to follow and navigate since it was written by two talented project manager professionals with many years of experience. It offers a wealth of information in preparation for the PMP test.

It is easy to locate a specific area to further focus on because of the index. Despite being 526 pages, it is still an easy read with comfortable to read text and nice margins which are ideal for note taking.

Highlights

The practice test questions were very interesting to read over and evaluate my knowledge in the particular field. Reviewing the information is excellent preparation for the test and I wouldn’t want to take the test without going through the preparation offered in this book. When I was unfamiliar with specific terminology, I only had to refer to the vocabulary appendices in the back.

Highlights: What I liked!

I really liked the Vocabulary Appendices the most because I wanted to assure myself the commonly used terms were well defined and generally understood by all. I found it very educational and well written, direct and easy to understand. The vocabulary word section is a vital part of any area so that proper communication delivers understanding and not misunderstanding.

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About the Reviewer


Ellie Sundstrom

Texas, USA

 

 

 

Ellie Sundstrom is a project manager with years of experience with two successful startup companies in addition to successfully homeschooling her 6 children. She is presently with Fast Signs in Frisco, Texas.

Ellie 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].

 

 

Evolutionary Learning

in Strategy-Project Systems

 

BOOK REVIEW

Book Title:  Evolutionary Learning in Strategy-Project Systems
Authors:  Paul Gardiner, Adil Eltigani, Terence Williams, Richard Kirkham, Lixiong Ou, Antonio Calabrese, Jonas Soderlund
Publisher:  Project Management Institute, Inc.
List Price:   $34.95
Format:  Paperback, 277 pages
Publication Date:  2018
ISBN: 978-1-62825-484-6
Reviewer:   Sean M. Thomas, PMP
Review Date:  January 2019

 



Introduction

At its core, “Evolutionary Learning in Strategy-Project Systems” is a research study in what makes organizations of all shapes and sizes more effective and more efficient.  The focus becomes sharper when the research indicates that the individuals hold the key to success by means of their contributions toward organizational assets (ex: knowledge base establishment and use) and a concerted focus on serious reflections of results, as well as allusions to the three types of reflective practice.

There is a constant undercurrent of supported theory throughout these co-authored works that “moderately and highly mature organizations follow diverse models of learning with a focus on social interactions as a medium for learning.”  Re-stated simply, the more successful organizations are found to place stronger emphasis on multiple means of acquiring and utilizing their knowledge/organizational assets, whereas organizations of lesser discipline in this area are found to be quite the opposite, being far less effective and efficient in using their knowledge and abilities (human resources largely) to capture, review, learn from, and use results of the same.  This means mistakes are repetitious when unacknowledged.

Overview of Book’s Structure

This book begins with a Foreword by Dr. Edward J. Hoffman, Former NASA Chief Knowledge Officer, who explains through experience that the difference between practice and theory can be vast, but relevant.  While knowledge, in and of itself, is not new, the handling, processing, storage, and retrieval of knowledge is very much new, and relatively unexplored.  He explains that Knowledge officers, when brought into an organization, are largely and necessarily of a different background than the organizational mission itself, as well as the resources (human resources for example) it utilizes.  This fact places immediacy on the new knowledge officer to be presented with the mission, the processes, the plans and actions, and the needs/requirements of proper learning and knowledge handling/usage.  Finally, he calls for the strong focus on practice and capability development both, which will make findings such as the ones in this book, altogether relevant for organizations seeking greater excellence.

The books introduction begins be acknowledging the disparity in the Project Management field that there is a definite lack of unity on where project management is and where it’s going.  But “Evolutionary Learning in Strategy-Project Systems” shines a bright light on how organizations might effectively bring order out of Project Management chaos.  It draws on leading theories of top researchers to aid in stemming-the-tide of those chaos-sayers and malcontent-manufacturers.  It’s important, for the sake of perspective, to understand that there is a honest attempt here to re-think project management in terms of combining it with strategic management.  This theory embraces the idea that project management is complex, and therefore new paradigms are inevitable, particularly in systematically fostering learning and capability development.

Next the book delves into briefly explaining and dissecting the lucid works of past researchers such as Deming, Mintzberg and Waters, Leybourne, Almarri and Gardiner, Killen, Juille & Pollack, Laszlo, Giddens, and many more.  All aspects of business complexity, from Quality to Risk, Resources to Knowledge Acquisition, acknowledgment versus acceptance, and all other aspects and contributors to Organizational success, all point to the notion that complexity characterizes all human endeavors today (page 17).

The pilot research focused on issues of learning and value in complex projects (p. 45).  Different stakeholders in different organizations were used to collect the data used in this study, and results in support of the evolutionary learning theory are found at every level in each researched organization.  There are sharp distinctions made to distinguish the correct and incorrect use of technical verbiage, which elucidates the topic for the reader with effectiveness, without belaboring the ideas.  These distinctions afford the reader a definite ability to comprehend the ideas and findings with consistent immediacy.  The results of the study are 15 identified modes of learning that are “active in shaping and honing the strategy-project system for competitive advantage”.

Highlights

An interesting part of this literature is the summary of the main points of five central issues associated with capability building, which are as follows (p. 38):

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About the Reviewer


Sean M. Thomas, PMP

San Antonio, TX, USA

 

 

At present, Sean is the VP of Marketing for the Alamo Chapter of the Project Management Institute, located in San Antonio, Texas.  Sean holds an MBA from University of Texas at San Antonio as well as the PMI credentials PMP and PMI-ACP.  He is also a Lean Six Sigma Black Belt (LSSBB).  Through his company, he teaches PMP and PMI-ACP Exam Prep Courses all over the world for government and non-government organizations alike, his students boasting the world’s highest PMP and PMI-ACP exam first-time test-taking pass rate of 99.7% (a near 3-sigma standard), for all students who follow the careful course curriculum designed by Sean himself.

Sean helps companies/organizations get their projects back on track and deliver their results on time and on budget, and provides training for those organizations to empower them to achieve the same on future projects, endeavors, and operations.

Sean is an Adjunct Faculty/Professor for Hallmark University in San Antonio, TX, teaching for the Schools of Business and Information Technology, including Project Management, Macro and Micro Economics, Marketing, Resource Management, Entrepreneurism, Mathematics/Statistics, etc.  Sean has ten years experience in the US Army, both in demolitions and Armor (tank commander) having served two combat tours, and becoming badly wounded on his second while leading and protecting his troops.  After being medically retired out of the Army in 2008 at the rank of Captain, he continued his education and practiced consulting work for a wide range of organizations, which he continues to do, and in 2012 he started his own company called Project Vanguards LLC.

Sean can be reached at [email protected] and you can view his LinkedIn account at the web-link below, and his company information can be found at http://ProjectVanguards.com

LinkedIn Page:  https://www.linkedin.com/in/sean-m-thomas-85767913/

He can be contacted via email 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].

 

 

Commercial Project Management

 

BOOK REVIEW

Book Title: Commercial Project Management: A Guide for Selling and Delivering Professional Services
Author:  Robin Hornby

Publisher:  Routledge
List Price:  $55.00
Format:  Paperback, 250 pages
Publication Date:   2017
ISBN: 978-1138237681
Reviewer: Tanner Trigg, PMP
Review Date: December 2018

 



Introduction

Commercial Project Management dives deep into the concepts and ideas only slightly familiar to project managers across the globe. With the increase in outsourcing and the expectation that it will continue to increase, Hornby is able to share his knowledge from personal experience on how best to handle adding vendors to the equation. The book works us through different tactics and strategies useful in todays world of managing vendors for our projects. It focuses on the project managers view, allowing the perspective to be centered around product delivery and the insuring of a successful project.

Overview of Book’s Structure

The structure of this piece is unique in that Robin Hornby utilizes a plan of action before you begin diving into each chapter. It is discussed at the very beginning with chapter 1, the layout and overview of each chapter so that you have an idea of what you will be covering throughout the course of the book. The structure is as follows:

  • Chapter 1 – A summary of the guide
  • Chapter 2 – Introduction to the business of projects
  • Chapter 3 – Buyer and vendor integration
  • Chapter 4 – Evolution of a vendor lifecycle
  • Chapter 5 – Developing organization responsibilities
  • Chapter 6 – Risk as a guiding principle for management
  • Chapter 7 – Overcoming estimating anxieties
  • Chapter 8 – Solving the quality conundrum
  • Chapter 9 – Managing the resource pool
  • Chapter 10 – Finance matters
  • Chapter 11 – Building a successful services firm
  • Chapter 12 – Toward collaborative procurement of services

The flow of the chapters and sequence in which they come benefits the reader and their progressive learning. Each chapter picks up from the last one and flow directly into a new topic while relating to the ones you previously read. Small breaks in text are filled with visual aids that reinforce the material being read.

Highlights

This book touches a number of different topics that engage the reader and encourages them to apply it to their own similar situations. The content is practical and applicable to what project managers are faced with today in terms of managing their projects and the vendors in which they outsource to.

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About the Reviewer


Tanner Trigg

Texas, USA

 

 

Tanner Trigg, PMP is a seasoned project management professional working in the technology industry, music industry, and business. A member of the Dallas Chapter of the Project Management Institute, he has been a PMP since March of 2018 and the Director of Volunteers for his chapter. Tanner 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].

 

Alternative dispute resolution

in the contracts of international package delivery

 

STUDENT PAPER

By Shuoting Zheng

SKEMA Business School

Lille, France and China

 


 
ABSTRACT

As the rapid development of cross-border e-commerce, the industry of international package delivery is growing at a surprising speed. As contractual disputes within this industry are omnipresent and often lead to serious results, this paper is aimed at finding out the best resolution for these disputes. By the end of this paper, we will be able to know what the alternatives are for resolving disputes in the contract of international package delivery as well as which alternative is the most appropriate one to implement. In order to evaluate the six possible alternatives which are proposed, we give eleven different attributes that can assess the alternatives effectively. Throughout this paper, with the help of Disjunctive Reasoning Technique, Addictive Weight Technique, Pareto Analysis and other efficient techniques, we discover that prevention which focuses on the effective cooperation and information-sharing between the parties interested is the best alternative. However, if disputes have arisen, negotiation and standing neutral are the most appropriate dispute resolutions in the industry of international package delivery.

Keywords: Alternative Dispute Resolution/ADR, International package delivery, Cross-border e-commerce, Contract, Standing neutral, Arbitration, Negotiation, Prevention, Litigation.

INTRODUCTION

In recent years, with the rise and the rapid development of cross-border e-commerce, the industry of international package delivery is developing in a high speed: “it is growing at a rate of 10 billion pieces per year in China”.[1] “In 2014, the trading volume of international package delivery accounted for 24.6% of global GDP. Actually, this industry is driven by China, Japan and USA”.[2] “According to AliResearch, in 2020, the trading volume of global e-commerce will reach 3,4 trillion US dollars and the number of cross-border e-commerce users will be estimated to reach 2,1 billion.”[3] In addition, “the trading volume of global B2C e-commerce is expected to be 3,4 trillion US dollars and the logistics cost will reach 1,02 trillion US dollars”.[4]

Indeed, international package delivery is much more complex than we can imagine, it not only involves many people from customers to deliverers but also involves lots of processes like warehousing, transportation, distribution, taxation across national borders… In order to ensure the safe transportation of the cargo or define the related responsibilities, contracts are usually signed. Generally, a contract is the key to avoiding possible disputes in the coming future. However, the package delivery among countries is much more complex than that within a country, lots of possibilities will happen during the whole process.

“As a result, lots of serious conflicts arising between the related parties (the consignor, the carrier, the consignee, the insurer…) and contract usually can’t meet the demand to resolve this kind of complicated disputes among several related parties”.[5] Since disputes are common, one of the main objectives in international package delivery industry is to clarify the root causes of different disputes.

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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: Zheng, S. (2019). Alternative dispute resolution in the contracts of international package delivery, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Zheng-alternative-dispute-resolution-in-contracts.pdf

 



About the Author


Shuoting ZHENG

SKEMA Business School
Lille, France

 

 

 

Shuoting Zheng is a 22-year-old Chinese student, currently pursuing a Master of Science degree in Project & Programme management and Business Development at SKEMA Business School in France. She graduated from Central South University of Forestry and Technology in 2018 in China and obtained the Bachelor’s Degree of French Language. During the last year of her university, she had grasped the precious opportunity to study as an exchange student in University of Reims Champagne-Ardenne in Reims, France. Thanks to her educational background, she is a trilingual speaker.

During her period of university in China, she has worked as intern in several companies like China Telecom and earned lots of precious experiences of social practice.

She has excellent skills about problem-solving and adaptability. She is also good at communicating as well as listening and this makes her own strong ability to work in a team.

As a postgraduate student of Project Management, she has obtained some professional certifications like PRINCE2, AgilePM, GPM-b which prove that she is qualified to be a part of a project management team. View more about her on LinkedIn: Shuoting ZHENG.

Feel free to contact her on [email protected]u

 

[1] 2017 China Express Industry Development Overview. (n.d.). Retrieved from http://www.chyxx.com/industry/201711/586648.html

[2] China Post Bureau: The growth rate of express delivery is 6 times faster than GDP. (n.d.). Retrieved from http://politics.people.com.cn/n/2015/0327/c70731-26757161.html

[3] [Global Cross-border Logistics Industry Report] “Three Giants” and “Postal Network”. (n.d.). Retrieved from https://www.sohu.com/a/156041400_354900

[4] [Global Cross-border Logistics Industry Report] “Three Giants” and “Postal Network”. (n.d.). Retrieved from https://www.sohu.com/a/156041400_354900

[5] How to deal with disputes in delivery industry. (n.d.). Retrieved from http://www.66law.cn/fangan/anli_353/

 

Sustainable Construction

What must be included in sustainable contractual clauses

 

STUDENT PAPER

By Céleste Gonnon

SKEMA Business School

Paris, France

 


 
ABSTRACT

Because of the public pressure and the increase of social and environmental awareness, companies that are creating new projects must include sustainability-related clauses in their contracts. This is true for the construction field that has to respect the Corporate Social Responsibility during the construction process as well as deal with the impact the building will have on the future.

There are several elements that need to be considered in construction contracts in order to respect sustainable principles and be accredited as a green building. We will conduct a study on construction standards contracts (AIA, CSI, FIDIC, EJCDC and Consensus Docs) to determine which one suits the best for sustainability.

We will use the Multi-Attribute Decision Making method to analyze these standards contracts through the scoring attributes of the LEED Certification, which is a green building rating system. The method will show us that in the construction field, the Consensus Docs are the most complete about sustainability, as some clauses in these standards contracts are linked with the LEED.

Keywords: Contracts, sustainability, sustainable contractual clauses, project, project management, construction, Multi-Attribute Decision Making.

INTRODUCTION

“In 2011, Apple has been incriminated because of terrible working conditions in one of its factories in China. Indeed, from to 2010, many assembly-line workers began committing suicides, sometimes throwing themselves off the dorm building in daylight.”[1]  This phenomenon caused great scandal worldwide, the international media spread the information and Apple had to respond to its working conditions. The public wanted to know about the causes of such stress and depression at work and also what the multinational company was willing to do to redress the situation and what measures would be applied.  This example shows how the access to information has a huge impact on what companies do in the “privacy” of their business. Ethics, social and environment are now topics companies must be concerned about because citizens can hear about a scandal in seconds. “Private commercial contracts now cover public dimensions that can’t be ignored, for example, a wood exploitation exists to make profit but also has an impact on biodiversity”[2]. Because of this indirect pressure and the increase of social and environmental awareness, companies that are creating new projects must include these topics in their contracts.

The following fishbone diagram shows why it is now necessary to include sustainability as clear and systematic information in contracts:

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: Gonnon, C. (2019). Sustainable Construction: What must be included in sustainable contractual clauses, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Gonnon-sustainable-construction-student-paper.pdf

 



About the Author


Céleste Gonnon

Paris, France

 

 

 

Céleste Gonnon is a French student at SKEMA Business School. She studied one year and a half in Lille before doing an academic semester in Raleigh, North Carolina (United States of America). This is where she discovered the power of Project Management through efficient teamwork with international students.

Coming back to France, Céleste specialized in Project and Programme Management and Business Development. In 2019, she will write a Master’s thesis about Project Management in order to graduate with an MSc in that branch. She is also certified Prince2 and Agile PM.

Passionate about Project Management, she had several experiences in companies such as the bank ING Luxembourg, where she did a 6-month internship. She was in charge of launching new campaigns and dealing with the entire production process from brainstorming concept to implementing it with internal communication to all branches.

With the increasing awareness about climate issues, she has a keen interest in sustainability and wants to dedicate the rest of her carrier to green and social projects.

Céleste can be contacted at [email protected].

 

[1] Merchant, B. (2017, June 18). Life and death in Apple’s forbidden city. The Guardian.

[2] Mitkidis, K. P. (2014, January). Sustainability clauses in international supply chain contracts: regulation, enforceability and effects on ethical requirements. Nordic Journal of Commercial Law.

 

ADR, the new skyrocket

to solve e-commerce conflict

 

STUDENT PAPER

By Bastien Bonneau

SKEMA Business School

Paris, France

 


 
ABSTRACT

The e-commerce industry is expanding in the world. we are focusing in this paper on the binding contract dispute in the e-commerce industry. We found seven different alternatives methods of settlement among the most used extra-judicial ways of contract issues solving. After a brief description of each one, we have compared them regarding nine criteria specific to the e-commerce. Our analysis allowed us to affirm that the negotiation is the most efficient way to solve a contract dispute even if prevention is the most used by the different companies.

Keywords: E-commerce, Online buying, Dispute, dispute process, Dispute resolution, E-commerce project manager.

INTRODUCTION

The advent of the internet in the 2000s and e-commerce have led to several changes in the consumers’ minds. A shift has been observed in the consumer buying behaviour and a transformation of traditional stores into a virtual place called website. “According to a Wavestone study, in France, 58% of consumers interrogated, buy on the internet each month”[1]

“For e-commerce industry the main project is to sell products and services on the Internet via a platform and through a licence to operate. Even if your business doesn’t have a physical location, an asset that often has an intrinsic effect on the value of your business is its URL. The other assets are the platform, the traffic and all the product present in on the e-commerce platform.

The Programme will deliver assets and benefits that are critical to the sponsoring organization’s day to day operation, the role of the programme manager within the e-commerce company will be to ensure all stakeholders (internal & external) are engaged in the program, He will be responsible for shipping new features, for new product introductions. He will be involved in requirements analysis, functional and technical design discussions, testing, proof-of-concept and working with partners.

The portfolio of projects is no different than any investment portfolio; the objective is to minimize the risk and maximize the return. Any organization, be it Owner or Contractor, has a portfolio of assets (resources) available to dedicate to projects, with the objective being to develop the best “mix” of projects which will generate the most favorable return on those assets. In e-commerce they will create a safe platform, user friendly and simple to create.

The portfolio of assets constituted by the Information Assets are normally controlled by functional groups such as IT or Engineering; in e-commerce it will be all the information concerning the customer, their credit cards and e-mail. Human Assets are controlled by HR, it’s all the employees working for the e-commerce platform and finally the Financial Assets are controlled by accounting or finance that will record all the transactions in the platform.

The legal framework is created by the signature of a binding agreement between the platform, the sellers and the buyers. This agreement includes the Transactional Terms and the General Terms that describe the terms and conditions on which you can conclude online transactions for products and services by using the online transaction site.”[2]

However, conflict may arise between these 3 parts contracts. For the project managers, these problems are the result of misleading on product information, lack of checking, defective products or delivery delay due to an intentional misbehavior or mistake. The role of the project manager is a key liaison between the product, marketing, vendor and buyers. This position enables him to develop solutions to ensure that the internal and external resolution of conflict are the most suitable for the business, benefits customers, sellers and the e-commerce platform.  Logically, with an increase in the number and rapidity of contracts, traditional ways to solve conflict appear inefficient.

To preserve his company, interest the asset manager and the project manager must determine the asset allocation and balancing risk against performance and find the most suitable processes: the alternatives to resolve disputes in e-commerce platforms. They will have to identify several alternatives for dispute resolution in order to facilitate the process, take into account the cost, the flexibility of the procedures, the duration, the empowerment of the verdict and the discretion. It is imperative that the disputes are resolved adequately, to create a legal framework that secure both consumers and companies to do business in the e-commerce marketplace.

Through our paper we will answer these questions:

  • What are the different alternatives to resolve disputes on online purchasing on e-commerce platforms?
  • Which one of these alternatives is the most efficient and adapted to the e-commerce industry?

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: Bonneau, B. (2019). ADR, the new skyrocket to solve e-commerce conflict, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Bonneau-adr-the-new-skyrocket-to-solve-ecommerce-conflict.pdf

 



About the Author


Bastien Bonneau

Paris, France

 

 

Bastien Bonneau is currently an Msc student in Project and Program Development and Business Development at Skema Business School, Paris. After several experiences in the banking industry as a fixed term employee.  He realized that big companies need to reinvent their way of functioning to face new challenges. These experiences have developed his leadership and communications skills and sparked his interest in management consulting.  He has spent 5 months in New Zealand and 4 months in Taiwan.  He is currently looking for consulting/project management/HR opportunities in Taiwan.

Bastien can be contacted at [email protected]

And on LinkedIn at https://www.linkedin.com/in/22bastienbonneau22/

 

[1] 1 Echos, L. (n.d.). 58 % des consommateurs achètent sur internet chaque mois. Retrieved from https://business.lesechos.fr/directions-marketing/commercial/e-commerce/0301433984208-58-des-consommateurs-achetent-sur-internet-chaque-mois-319487.php

[2] 2 GUILD OF PROJECT CONTROLS COMPENDIUM and REFERENCE (CaR) | Project Controls – planning, scheduling, cost management and forensic analysis (Planning Planet). (n.d.). Retrieved from http://www.planningplanet.com/guild/gpccar/introduction-to-managing-project-controls

 

 

 

Comparison of the Payment Terms and Conditions

of FIDIC, AIA, EJCDC, CSI and Consensus Docs Contracts with an actual contract

 

STUDENT PAPER

By Yasmine Laraki

SKEMA Business School

Paris, France and Morocco

 


 
ABSTRACT

A contract is an agreement by which parties undertake and bind themselves to respect certain things. It usually includes several clauses, and we will mainly focus on the payment clause. Nowadays, a payment clause is often included in a contract, and present several terms and conditions which help the two parties to define exactly what they are expecting. Terms and Conditions help the contractor and the owner to avoid conflicts, thus they need to be as detailed as possible in order to make the situation clear between the two parties.

Our problem is that the payment terms and conditions is a delicate clause and it is a major source of disputes. This paper allows us to realize how complex this clause can be, and how we should pay attention to the details we write on it. In fact, millions of contracts are written daily and the terms and conditions differ from one contract to another. This paper aims to analyze the differences that we can find in the payment clause by the comparison of an actual contract and five scientific documents and find which is the best alternative to help us improve our baseline contract. By using the Multi-Attribute Decision Making (MADM method), we easily eliminate two alternatives, and then the additive weighting technique helped us to choose Engineers’ Joint Contract Document Committee (EJCDC) document as the best alternative. This document is the most suitable alternative and helps us improve our baseline document, it shows us how to perfectly write the payments terms and conditions and the level of details the clause should contain.

Keywords: Payment, owner/contractor, refund, contract, conflict, claims, milestones, clause, dispute, conditions.

INTRODUCTION

Every time we use the internet, we end up signing contracts meaning that we agree to some very long terms and conditions. In today’s world, when signing a contract, a conflict often occur between the contractor and the owner. Most of the time, the conflict arises regarding the method of payment clause which seems to be the main cause of the conflict. A contract is a voluntary commitment, formal or informal, between two or several parties. It is recognized and therefore sanctioned by the law and needs to be the more specific as possible. The clause of Terms and Conditions is mandatory in all contracts in order to make the situation clear between the two parties but in practices, several misunderstandings, missing elements, and ambiguity from the contract can cause disputes.

In order to avoid any potential conflict, contractors and owners should use the terms and conditions clause properly. Indeed, with complete and detailed contracts addressing specific conditions, the two parties can define clearly the responsibilities regarding a contractor payment issue. In fact, it can be about a default in payment from the contractor but it can also concern the owner.  To address, and mostly avoid, these potential conflicts, several new processes of payment have been created.

This paper addresses Requirements Agreement With Eligible Independent Providers/ Agencies for the Provision of Related Services to Students With Disabilities. The scope of the paper is the integrality of the information related to payment terms and conditions.  In fact, it is a comparison between the subject chosen contract’s payment term & conditions clause, compared to the four following documents: “the American Institute of Architects (AIA)”[1] , “the Engineers’ Joint Contract DocumentCommittee (EJCDC) “[2]the document, “the International Federation of Consulting Engineers (FIDIC) “[3] , the “CSI documents [4]”  and “the Consensus Docs” [5] . Regarding the scope of this paper, it will address first the analysis and comparisons of the payment terms, then the evaluation process of the conflict and lastly the potential ways to avoid it.

Disputes and conflicts arise inevitably in any type of projects and understand how to resolve them correctly is very important. It is very crucial to know how to write properly the payment terms and condition as it is an important cause of dispute in a contract of any type of projects.

Here we are going to compare the diverse ways to write payment terms and conditions and how to manage a conflict during a project and to choose the right way to write it according to the different comparative documents. Project Management help to deal with conflict and to avoid them it is also about paying attention to the possible risks and resolving conflicts in order that the payment terms and conditions are respected.

Studying here what is the best alternative for a conflict resolution in the payment terms and conditions, will afford us the needed tools, in order to best write payment terms and conditions, whatever type of market the contracts belongs to.

Step 1 Problem statement:

This Fishbone Diagram [6]below illustrates the problem and its main causes:

 

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: Laraki, Y. (2019). Comparison of the Payment Terms and Conditions of FIDIC, AIA, EJCDC, CSI and Consensus Docs Contracts with an actual contract, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Laraki-comparison-of-contract-terms-and-conditions.pdf

 



About the Author


Yasmine Laraki

Paris, France

 

 

Yasmine Laraki is an enthusiastic student in SKEMA Business School. Born in Morocco in 1994, she studied Economics in Montreal, Canada where she gratuated in 2016. She gained significant strategic consulting experience in a large consulting firm in Morocco in 2017. This experience consists in large consulting project as a development regional plan. Yasmine also worked as a community manager in the biggest mall of morocco and for a Canadian brand in New York City. She entered SKEMA Business School in 2018 for a one year Msc in Project and Programme Management and Business Development. During this master she is studying mainly project management and attending the following courses: portfolio management, leadership skills, sustainability, global project management and international contract management.

She can be contacted at [email protected] or [email protected]

 

[1] American Institute of Architects. (2009). The American Institute of Architects official guide to the 2007 AIA contract documents. Hoboken, NJ: John Wiley & Sons. General Conditions of the Contract for construction

[2] Engineers’ Joint Contract Documents Committee, Professional Engineers in Private Practice, American Consulting Engineers Council, American Society of Civil Engineers, & Construction Specifications Institute. (1996).

[3] International Federation of Consulting Engineers (1999). The Global Voice of Consulting Engineers.

[4] Construction Specifications Institute. (2005). The project resource manual: CSI manual of practice. New York: McGraw-Hill.

[5] Consensus Docs Standard Agreement and General Conditions Between owner and constructor Retrieved from https://www.consensusdocs.org/Downloads/Preview/629d61cb-ff79-494c-9b10-d7f231761e01?Initials=yl

[6] By author

 

 

Sustainability

When companies take over the state responsibility

 

STUDENT PAPER

By Victoire Berger

SKEMA Business School

Lille, France

 



ABSTRACT

This paper aims at finding solutions for companies to make sure that their business partners respect their clients’ always higher sustainability standards. Indeed, as the usual legal regulation are not law-binding enough, companies have to take the matter on their own hands.  To do so, we will first try and find the different possible alternatives and then, the best attributes to assess each of those alternatives. We will then use several Multi-Attribute Decision Making (MADM) methods to find out what is the best solution. We will finally show that the best solution is to include sustainable clauses in project management contracts, thanks to a Pareto analysis.

Keywords: Economic, Social, Environment, Transparency, Sustainability standards, Ethic, Law, Stakeholders, Business, Interests, Regulation, Planet, People, Profit, Obligation

INTRODUCTION

“By early August of each year (soon to be late July), humans will have consumed what the planet can regenerate. […] In all, we consume the natural resources of 1.7 earths a year.”[1] And the consequences are huge. The exponential growth of the global population and the ineffective use of the planet’s resources are the two main things responsible. All around the world, concerns are rising for the long-term viability of life-as-we-know-it. Global warming, deforestation, pollution, biodiversity losses are as many issues that need to be dealt with if we want our planet to remain viable. As lives are at stake – in 2012, around 6.5 million deaths were associated with air pollution[2] – people are becoming more and more willing to implement changes in order to adopt a more sustainable way of living. There is a real global trend towards a more transparent and respectful way to consume and produce. Companies that do not comply with the globally accepted sustainability standards suffer the consequences, such as taxes, benefices losses, and bad brand reputation.[3]

Sustainability is a broad and complex notion. The most often quoted definition comes from the UN World Commission on Environment and Development: “sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”[4]

For many specialists, the concept of sustainability is associated with three main pillars, namely, economic and social development and environment protection. All economic actor, should, if applying this concept, not only consider the economic impact of its actions but also their environmental and social consequences, companies included.[5] The future of our planet and the life of our grandchildren are at stake. Yet, it seems that without a compelling regulation, some economic actors will keep looking for a short-term economic profit. This is a big issue in project management. Indeed, in each large-scale project, stakeholders are numerous and often of different nationalities. The fact is that, depending on their culture, or their different interests, all stakeholders will not have the same sustainability and ethical standards. So, how can companies make sure that their business partners respect their clients’ always higher sustainability standards?

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: Berger, V. (2019). Sustainability: when companies take over the state responsibility, PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Berger-sustainability-when-companies-take-over-state-responsibilties.pdf

 



About the Author


Victoire Berger

Lille, France

 

 

 

Victoire Berger is a PGE Student at SKEMA Business School currently in Msc Project and Program Management and Business Development in Lille France.

After graduating from High school and passed her scientific “baccalaureate” with distinction, she did a Preparatory class for competitive entrance into French Business School during 2 years in the well-recognized “lycée du Parc” in Lyon. She integrated the “Programme Grande Ecole” of SKEMA BS in Management in 2016. After a year spent in Sophia Antipolis, she had the opportunity to go to Madagascar for a 2-months humanitarian internship. She spent the first semester of her Master’s degree in the famous Queen’s University in Kingston, Ontario, Canada and the second, on the Skema’s campus of Belo Horizonte, Brazil. She is currently finishing her Msc in Project and Program Management and Business Development in Lille, France, where she develops her leadership skills and project management knowledge. She is currently working on the PRINCE 2 and AGILE PM certifications.

Victoire can be contacted at victoire.berger@skema.edu, you can also send her a message via her Linkedin: https://www.linkedin.com/in/victoire-berger-a79b13128/

 

[1] Carboni, J., Duncan, W., Gonzalez, M., Milsom, P., & Young, M. (2018). Sustainable Project Management: The GPM Reference Guide (2nd ed.). Novi, USA: GPM Global.

[2] WHO releases country estimates on air pollution exposure and health impact. (2016, September 27). Retrieved on, October 23, 2018, from http://www.who.int/news-room/detail/27-09-2016-who-releases-country-estimates-on-air-pollution-exposure-and-health-impact

[3] Roberts, J. (n.d.). Lack of transparency – Writing for Strategic Communication Industries. Retrieved November 2, 2018, from https://ohiostate.pressbooks.pub/stratcommwriting/chapter/lack-of-transparency/

[4]What is Sustainability? | UCLA Sustainability. (n.d.). Retrieved on, October 23, 2018, from https://www.sustain.ucla.edu/about-us/what-is-sustainability/

[5] [Sustainability definition & criteria]. (n.d.). Retrieved November 2, 2018, from https://www.epa.gov/sites/production/files/2015-05/documents/sustainability_primer_v9.pdf

 

 

 

Analysis of construction disputes

shows what decision is the most suitable to undertake

 

STUDENT PAPER

By Ugo Grahek

SKEMA Business School

Paris, France

 


 
Abstract

In our days, construction projects are everywhere around the world, whether in depend on building a school, a building or even a house. However, this sector currently suffers from many big issues which are the disputes that occur in its very own project and contract management.

The main objectives are to identify and understand the leading causes of disputes in construction projects. To do so, we will have to establish a root cause analysis, then identify and analyze the different alternatives solutions that are suitable to deal with the latter. At the end of those research and analysis, it will result in an indication on a clear understanding of the issues and on what solution to implement in project management such as the arbitration alternative or the prevention of disputes.

Keywords: Construction disputes, contractors, owners, contract issues, causes of disputes, alternative solutions, justiciable issues.

Introduction

We all one day asked ourselves “How long is it going to take?”, “Is the construction not finish yet?” or even “Why is there anybody working on this site anymore?”. In our society, Construction sites aren’t uncommon nor unfamiliar to citizens and are now occupying a big part in the daily life of an inhabitant of a city. Whether it is concerning an urban renewal, a road development, and repair or the creation of a new building, constructions are now everywhere around us. But the three previously asked questions are not often answered the right way as the response lives in the contracts and the management of the construction project.

Numbers are indeed blatant as in France, the number of litigations in this field has increased and represented more than “80% in 2014 while the delays and the abortions of projects have seen an increase of 20% between 2015 and 2017”[1]. However, when it comes to resolving issues to achieve constructions, it requires a lot of resources and time as in the USA, “it takes an average of 16.2 month and an average value of 29.6 million to resolve disputes”[2], while “in the Middle East, 13.7 months are required in order to solve an issue.”[3]

In fact, it is important to know that working on a construction project will include many different parameters and criteria that are going to decide whether it keeps a good timing, a sufficient budget and quality on what have been previously planned.

However, construction is one of the sectors that is commonly facing a lot of issues on several aspects, especially when it comes to disputes, which will impede the achievement and success of a project. As in every construction project, it requires different parties such as the owner, the contractors and the subcontractors which can lead to plenty of disagreement, disputes and justiciable issues.

As the latter is closely linked with justiciable issues and dilemmas, it requires a solution which is usually brought by a 3rd party such as a negotiation arbitration or a mediator which will assist the owners and contractors.

Project management and managers in construction are facing major issues in terms of how to approach the problem. As it is concerning the contracting steps and different criteria of such a project, contract and project managers must be in constant awareness of risks, matters and causes of disputes. In fact, they must integrate into their work that non-consideration of those causes, can lead to a project delayed or even the end of it. On another hand, if the causes and risk are acknowledged and known by the project members, it is easier to prevent the consequences that can lead to disputes.

Additionally, as future project manager in this area, it is important to highlight the different cases that can occur during a project or in a contract to avoid them.

To understand the latter and the previously stated numbers, we have to go through the main causes of disputes and issues that are, in fact common and well-known in this industry. The main reasons for failure come from mainly people, environment and measurement.

Indeed, the lack of education, experience and knowledge between contractors and employees, especially managers are relevant causes of disputes and lead to errors and omissions in the contract document. Those are one of the most common and major disputes in the construction area.

Also, and as said before, the environment has also a big role to play in root causes, differing site conditions is included in major causes and is becoming a more and more important problem to take into account in this project.

Finally, and without forgetting the measurement that leads to the failure of understanding each criteria of the contractual obligations by each contractor and the failure to correctly handle all the parameter written in the contracts are both issues that are appearing in this sector.

The aim of this paper will be to have a complete understanding and a strong analysis of the major causes of disputes and justiciable issues in the construction industry that leads to delays and failure of projects and work field.

A second goal is to understand how to facilitate the project management in this sector by identifying issues that impede the updates, creation and acquirement and the achievement of organization project strategic and tactical benefits.

We can now easily establish the question that we will be able to answer through this paper: How to understand the leading causes of construction disputes in project 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: Grahek, U. (2019). Analysis of construction disputes shows what decision is the most suitable to undertake, PM World Journal, Vol. VIII, Issue II (February).  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Grahek-analysis-of-construction-disputes-shows-decision.pdf

 



About the Author


Ugo Grahek

Paris, France

 

 

 Ugo Grahek is a French student at SKEMA Business School in Paris. For his two first year as a college student, he studied economic and management in ESDHEM (Lille, France) before been enrolled in an exchange program for one semester in North Carolina State University (NCSU, North Carolina, Raleigh, USA) in the same degree.

Then he enrolled in SKEMA Business School (Lille, France) where he started to follow the business track “Programme Grande Ecole” and integrated an exchange program of one semester in Suzhou (China). He recently pursued his education by integrating the specialization “Msc Project and Program Management and Business Development” in SKEMA BS Paris.

After finishing his studies and graduating, his main objective is to continue his adventure and improve his experiences in project management. He is willing to integrate a company in the construction sector.

Ugo Grahek can be contacted at [email protected] or on LinkedIn https://www.linkedin.com/in/ugo-grahek-a09701130

 

[1] A.F – The Monitor, (25/08/2017) Case study – The number of disputes in construction has increased: https://www.lemoniteur.fr/article/le-nombre-de-litiges-par-travaux-a-explose-en-deux-ans-selon-une-etude-de-la-clcv.838634

[2] E. Misonzhnik – National Real Estate Investor, (29/05/2015) – 5 most common causes of construction disputes: https://www.nreionline.com/construction/5-most-common-causes-construction-disputes

[3] R. Nelson Williams – Arcadis, (09/05/2017) – What are the most common causes of construction disputes in the middle east: https://www.arcadis.com/en/middle-east/our-perspectives/2017/05/what-are-the-most-common-causes-of-construction-disputes-in-the-middle-east-/

 

 

 

Disputes in Construction Contracts

Commonly experienced but not fully understood?

 

STUDENT PAPER

By Quentin Duchaussoy

SKEMA Business School

Lille, France

 



ABSTRACT

This paper aims at understanding the most common disputes in construction contracts and especially know the alternatives dispute resolution to consider when a dispute arises. A dispute is common and not always well managed. Do causes of disputes in construction contracts make the project reaching a dead-end? To answer this general question, we focused, all along this paper, on assessing and analyzing the concerned alternative dispute resolution. To deeply analyze them, we used a Root cause analysis to understand the leading cause. Then, we used specific tools such as non-compensatory model, a multi-attribute decision-making grid, a matrix analysis and, an additive weighting technique model. We used them to assess each scoring attributes, each alternative, and finally the best alternative dispute resolution. Then, we have made a Pareto analysis to highlight the impact of disputes with Mediation and without it.

Finally, we discovered that Mediation was the best alternative dispute resolution thanks to many aspects explained in the following paper. Even if, Mediation seems to be the best, other alternatives are necessary to be understood and taken into account. Conciliation, almost the same process, and method as Mediation is slightly less relevant than Mediation but offers an efficient solution to resolve disputes.

Keywords: Construction industry, Disputes, Errors, Alternative, Projects, Obligations, Claims

INTRODUCTION

Construction is a complex but still booming industry which “expenditures have reached over 1,231 billion U.S. dollars”[1] in 2017 in the United States of America. Indeed, this sector is driven by China, India, and the USA and according to the Global Construction 2030, it will reach the historic number of 15.5 billion[2] of dollars by 2030. Construction involves many people, from owners to subcontractors and a certain complexity in terms of cost and time. Indeed, this complexity is also present in construction contracts and can lead to conflicts between the different parties involved. Nevertheless, conflicts are highly common in this industry because of the number of participants, self-interest, huge project, and tremendous costs. Hopefully, conflicts can be managed through negotiation. In fact, the project’s fulfilment is not impossible if conflicts are well and quickly handled. If not, the contract could reach a turning point in its realization.

“Projects, by their definition, have a defined start and end date. (…) Projects also include a defined scope, finite budget, and assigned resources. Another characteristic of a project is that they always build something”[3]. The construction contract is a mutual agreement encountered between two parties. Requirements, the length of the project and the cost are recorded into the contract. Indeed, the project manager is the “person responsible for leading, directing and managing the project and project team to deliver the project deliverables to an agree time, cost and quality/performance.” [4] Thus, construction makes entirely part of project management, as time, budget and resources need to be managed.

Moreover, “Disputes are one of the main factors which prevent the successfully completion of the construction project.”[5] A dispute is a disagreement regarding the said contract terms. It could also occur if a party doesn’t meet its obligation. According to this definition, disputes are not constructive conflicts but destructive ones. As disputes are also common in the construction industry and difficult to get out of it, one of the main objectives of a construction project is to avoid any mistakes. Disputes can be caused for many reasons and globally, like Matthew Devries said it is often about three specific variables such as “problems with the contract, problems with the people, and problems with the unknown”.[6]

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: Duchaussoy, Q. (2019). Disputes in Construction Contracts: Commonly experienced but not fully understood? PM World Journal, Vol. VIII, Issue II (February). Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Duchaussoy-Disputes-in-Construction-Contracts.pdf

 



About the Author


Quentin Duchaussoy

Lille, France

 

 

 

Quentin Duchaussoy is a PGE Student at SKEMA Business School currently in Msc Project Management and Program Management and Business Development in Lille, France. He has a strong background in Business development and in Project Management. In 2016, with four partners, they created and launched a website and a smartphone application which localize all places that would interest students from Amiens (France). This project was launched during his two-year degree in Sales Technic at the University of Picardie Jules Verne in Amiens. He integrated SKEMA Business School in September 2016 and will start an internship in January 2019 at Telys as an Internal Project Manager. He is deeply interested by Project Management since he launched Guid’Am and fulfilled numerous projects. He is currently working on the PRINCE 2 and AGILE PM certifications for this semester.

Quentin Duchaussoy can be contacted at

[email protected]
[email protected]

Also available via his Linkedin: https://www.linkedin.com/in/quentin-duchaussoy-324085131/

 

[1] Statista (n.d). U.S. Construction Industry – Statistics & Fact. Retrieved from https://www.statista.com/topics/974/construction/

[2] Graham Robinson. (n.d.). Global construction market to grow $8 trillion by 2030: driven by China, US, and India. Retrieved from https://www.ice.org.uk/ICEDevelopmentWebPortal/media/Documents/News/ICE%20News/Global-Construction-press-release.pdf

[3] John Brasuell. (2014, April). The Difference Between Projects, Programs, and Portfolios. Retrieved from https://www.ims-web.com/blog/the-difference-between-projects-programs-and-portfolios

[4] Harpham, A. (n.d.). Wideman Comparative Glossary of Project Management Terms v5.5. Retrieved from http://www.maxwideman.com/pmglossary/PMG_P16.htm – Project Manager

[5] Emre Cakmak and Pinar Irlayici Cakmak, An analysis of causes of disputes in the construction industry using analytical network process. Retrieved from https://www.sciencedirect.com/science/article/pii/S1877042813050738

[6] Matthew Devries, The Top Three Causes of Disputes On A Construction Project. Retrieved from https://www.bestpracticesconstructionlaw.com/2010/05/articles/project-management/the-top-three-causes-of-disputes-on-a-construction-project/

 

 

Project Management Office Lifecycle (PMOLC)

The Set-up, the build-out, and the sustainability journey

 

SECOND EDITION

By Waffa Karkukly, PhD

Ontario, Canada

 



Introduction

PMOs have been taking on a more prominent role in their level of authority, structure, reporting lines and mandate.  Project Management Offices (PMOs) have been growing and going through change and transformation and today literature defines PMO types, roles, functions, as well as their impact on performance.  The lifecycle journey that PMOs go through requires attention since there is little or lack of knowledge regarding PMO lifecycle (PMOLC) pertaining to set-up, build-out, and sustainability.

Due to the evolution of the PMO and there is a need to cover the lifecycle of PMO which would allow those interested in building PMOs to learn what is required in each phase of the PMOLC, the complexities associated with each phase, and the challenges and rewards.  The PMOLC has not been fully explored nor has it been discussed in detail; hence, this research makes valuable contributions to the practicality of the project management field in general, and sheds light on the PMO practices in particular.  Further, the research adds valuable insights to the mechanics governing the establishment of PMOs.  Results will lead us to:

  • Determine the PMOLC complexities, shed light on the nature of each phase, and the skills required to build each phase
  • Determine similar and different challenges in each phase in the lifecycle

Keywords: PMO lifecycle, PMOLC, set-up, build-out, sustainability

Research Questions

  • Which phase in the PMO lifecycle is more complex?
  • What are PMO challenges in each phase in the lifecycle?
  • What is the PMO leader’s role in the PMO lifecycle?
  • How does PMO authority level impact change management and project management?

Research Methodology

The research approach adopted is quantitative.  Quantitative methods include the historical, descriptive, correlation, causal-comparative, experimental, action research, and developmental (Taylor, 2005). Quantitative researchers tend to be interested in whether and to what extent variances in one variable explain variance in another (Maxwell, 1996). The underlying principle of quantitative research is measurement (Simon, 1969).

A survey was conducted to collect data regarding the set-up, build-out, and sustainability of the PMO.  The web-based survey consisted of 25 questions that uses a 5-point Likert-type scale and was developed and made available on-line to PMO leaders who had set-up, built, or supported a PMO, and were PMO professional volunteers across geography and industry. There were 100 respondents who logged on to the survey website between April 2011 and June 2011. Not all respondents who started the survey completed; 8 were excluded because they did not complete the first question. All remaining respondents who partially completed the survey stopped at the start of a new section. Of the 92 who took the survey, 67 completed the survey for a completion rate of 73%.

Survey Findings

Research results from the web-based survey lead to the finding that PMO set-up and build-out phases are more complex than the sustainability phase. Additionally, the findings show the effect of executive leadership support in an organization and the skill set and role of the PMO leader.

  • PMOLC complexity

The findings of this research describe the complexity of PMOLC.  Whether one or more of the three PMOLC phases (set-up, build-out, and sustainability) are more or less complex than the other. The survey suggests that 44% found the build-out most complex, while 34% found sustainability to be the most complex, followed by 32% for the set-up.

  • PMOLC challenges

The findings of this research describe the challenges of PMOLC and identify similarities or differences based on each phase. While funding, leadership support, and governance were ranked high as challenges pertaining to set-up and build-out phase, the survey found continuous improvement, reporting/KPI, and quality management to be the highest on list of challenges pertaining to the sustainability phase. While cost / value ranked closely as a challenge for all phases ranging between 29% and 32%, similarly the adoption of methods or tools ranked at the same level independent of the PMOLC phase ranging between 34% to 36%.

More…

To read entire article, 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 prepared while the author was a PhD candidate at SKEMA Business School in France and published in PM World Today in November 2011. It is republished here with the author’s permission.

How to cite this paper: Karkukly, W. (2011). Project Management Office Lifecycle (PMOLC): The Set-up, the build-out, and the sustainability journey; PM World Today, November 2011; republished in the PM World Journal, Vol. VIII, Issue II, February 2019.  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Karkukly-Project-Management-Office-Lifecycle.pdf

 



About the Author


Waffa Karkukly, PhD

Ontario, Canada

 

 

 

Waffa Karkukly is currently the President and Managing Director for the www.globalpmosolutions.ca. During her career, she has been involved in managing technology and project management offices, as well as being a strategist and change agent transforming organizations through alignment between strategy and operation and delivering through projects, programs and portfolios.  Waffa has helped organization improve their IT and / or Project management practices through building standards and proven solutions that improved the delivery process of an organization.  Waffa is an active PMI member and a frequent speaker and panelist at the various PMI events. Waffa has a BSC in Information Systems from DePaul University and an MIT from Northwestern University in the United States, and a PhD from SKEMA School of Business in France. She is a certified project management professional (PMP) and Agile Certified Professional (ACP) by the Project Management Institute (PMI®), as well as a Change Management Practitioner (CMP).  Waffa is dedicated to improving the understanding and standards of project management practices, especially in the Value proposition of building and sustaining successful PMOs. Waffa can be reached at [email protected]

To view other works by Waffa Karkukly, visit her author showcase in the PM World Library at https://pmworldlibrary.net/authors/dr-waffa-karkukly/

 

 

Activity Based Costing (ABC)

The Other Side of the Earned Value Coin?

 

SECOND EDITION

Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS

Jakarta, Indonesia

 



Forget CMMI®, http://www.sei.cmu.edu/cmmi/ OPM3® www.pmi.org and other “Capability Maturity Models”. Want to save yourself and your organization time and money? Then apply this very simple test to see how mature your organization is in using project management “Best Practices”. Do you use Earned Value Management and does your accounting system support Activity Based Costing and are you using it?

If you aren’t using Earned Value Management and its alter ego, Activity Based Costing, then you are probably not getting the full benefits project management methodologies offer as effectively as you can or should. Worst case, failure to apply Activity Based Costing may well be causing you to outsource work which in reality is a “core competency” (Those activities you do better than others and make money at) and keep in-house work which you are actually losing money on.

So let’s start out with a quick primer on both Earned Value and Activity Based Management.

For those new to Earned Value Management, (EVM) it is based on the principle of “Quantum Meruit” or the “value deserved”. To select a simple example for illustration, let’s use purchasing bananas at the green grocer as the analogy.

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 published in PM World Today in May 2007.  It is republished here with the author’s consent.

How to cite this paper: Giammalvo, P.D. (2007). Activity Based Costing (ABC) – The Other Side of the Earned Value Coin? Originally published in PM World Today in May 2007. Republished in PM World Journal, Vol. VIII, Issue II, February 2019.  Available online at https://pmworldjournal.net/wp-content/uploads/2019/02/pmwj79-Feb2019-Giammalvo-Activity-Based-Costing.pdf

 



About the Author


Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS

Jakarta, Indonesia

 

 

 

Dr. Paul D. Giammalvo, CDT, CCE (#1240), MScPM, MRICS, is a Senior Technical Advisor (Project Management) to PT Mitratata Citragraha. (PTMC), Jakarta, Indonesia. www.build-project-management-competency.com. He is noted for the development and delivery of graduate level, blended learning curricula designed for the mid-career path, English as Second Language (ESL) professionals to develop competency in the local practitioner and build capacity for the local organizations. For 25+ years, he has been developing and delivering Project Management training and consulting throughout South and Eastern Asia Pacific, the Middle East, West Africa, and Europe.

He is also active in the Global Project Management Community, by playing a “thought leadership” role for the Association for the Advancement of Cost Engineering International, (AACEI) http://www.aacei.org/ since 1991; He has also been active in two IPMA member organizations: The Green Project Management Association (GPM) http://www.greenprojectmanagement.org/ where he served on the Certification Board of Directors for two years and the American Society for the Advancement of Project Management http://www.asapm.org/ for which he served for four years on the BoD as Director of Marketing. He also sat on the Board of Directors of the Global Alliance for Project Performance Standards (GAPPS), www.globalpmstandards.org, Sydney, Australia and is active as a regional leader. Currently, he is a compensated consultant to the International Guild of Project Controls. http://www.planningplanet.com/guild  as the primary author of their “Compendium and Reference” as well as the chief architect of their competency-based credentialing program. http://www.planningplanet.com/guild/certification

He has spent 35 of the last 50 years working on large, highly technical international projects, including such prestigious projects as the Alyeska Pipeline and the Distant Early Warning Site (DEW Line), upgrades in Alaska and the Negev Airbase Constructors, Ovda, Israel and the Minas Oil Field in Rumbai, Sumatra. His current client list includes Fortune 500 major telecommunications, oil, gas and mining companies plus the UN Projects Office and many other multi-national companies, NGO organizations and Indonesian Government Agencies.

In addition to 45+ years of hands-on field experience, Dr. Giammalvo holds an undergraduate degree in Construction Management, his Master of Science in Project Management through the George Washington University and was awarded his PhD in Project and Program Management through the Institute Superieur De Gestion Industrielle (ISGI) and Ecole Superieure De Commerce De Lille (ESC-Lille) under the supervision of Professor Christophe Bredillet.  “Dr. PDG” can be contacted at [email protected].

To view other original work by Paul Giammalvo, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/dr-paul-d-giammalvo/

 

 

February 2019 UK Project Management Round Up

Bad news: IT Projects, HS2, Crossrail, BREXIT, skills shortage and new nuclear; Good news: Meggett extension, Hybrid Air Vehicles, Silverton Pier, Bloodhound Project, Alton’s Hydrogen Train Plan; and Captain Flinders’ grave found

 

REPORT

By Miles Shepherd

Executive Advisor & International Correspondent

Salisbury, England, UK

 



INTRODUCTION

Last year closed with a very pessimistic review of the British railway industry and its flagship projects, focusing on Crossrail but taking a swipe at High Speed 2 (HS2) in the process.  So, for a change, I will start with the bad news before looking at some of more optimistic events of the month.

BAD NEWS

IT projects seem particularly prone to receiving a bad press and there are two currently in the firing line: the long-awaited Ministry of Defence (MOD) modernisation programme and the Law Courts programme.  The former, run by Fujitsu is reputed to be about 2 years behind schedule and £210 million over budget which is pretty good going considering the contract was only signed in 2015.  The systems are also said to be mission critical, handling top secret data.  The Law Courts IT programme is a complicated one involving multiple systems and is linked to the £1 billon courts modernisation programme.

According to press reports, the court system failure has resulted in delay to cases coming to court, trials adjourned and even cases abandoned.  Now lawyers are claiming that this, and other “transformational” projects such as the probation service contract and private prisons, were initiated under Chris Grayling who was Lord Chancellor for 3 years up to 2015.  The chairman of the Criminal Bar Association claims that these are all part of Grayling’s “destructive nihilistic legacy in all areas of legal aid and the courts”.  Some may find this an interesting take on the owner’s responsibilities in major programmes where the role of sponsor is often poorly defined.  In this case, the Lord Chancellor cannot have had a detailed knowledge of the system requirements but most certainly did have an informed but political view of the outcomes required – do we have a case of outcomes vs outputs here?  It also throws an interesting light on the legal occupation who are clearly interested in any potential work from possible penalty clauses in the contracts – more work for the boys.

High Speed 2 continues to hog the headlines.  Recruitment continues apace with the search for the construction team that will take the new Curzon Street station from concept to reality closing 2018.  The first tower crane came on site as part of the preparation to demolish Euston Towers and opportunities opening for trainee archaeologists.  However, less welcome news comes in the form of renewed speculation on HS2’s ability to meet its business case predictions.  Initially predicated on its speed, then on capacity and currently on improved connectivity between north and south of England, the business case has always been controversial.

HS2 route (courtesy HS2.org.uk)

Leader of the House of Commons, Andrea Leadsom, whose constituency is transected by the new rail line, challenged the value of the business case as it emerged that HS2 is investigating reducing the capacity of the line by 4 trains an hour.  This effectively lowers capacity by 8,800 per hour at peak times.  Original capacity claims were 18 trains per hour, higher than any other high-speed line world-wide.  This reduction in capacity was first discussed late last year in response to claims that the programme is late and over budget.  This month’s announcements seem to be aimed at reducing short term costs.

More…

To read entire report, click here

 

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

 



About the Author


Miles Shepherd

Salisbury, UK

 

 

 

 

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

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

 

 

Finland Project Management Roundup for February 2019

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

 

REPORT

By Dr Jouko Vaskimo

International Correspondent & Senior Contributing Editor

Espoo, Finland

 


INTRODUCTION

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

PROJECT MANAGEMENT ASSOCIATION FINLAND

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

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

PMI FINLAND CHAPTER

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

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

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

OLKILUOTO 3

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

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

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

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

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

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

 

HANHIKIVI 1

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

More…

To read entire report, click here

 

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

 



About the Author


Dr Jouko Vaskimo

Espoo, Finland

 

 

 

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

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

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

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

 

 

Change Management in Large and Complex Civil Infrastructure Projects

District of Columbia Clean Rivers Project

 

FEATURED PAPER

By Stephen D. Lisse

DCCR Project Commercial Manager
McKissack and McKissack, Inc.

Virginia, USA

 



Abstract

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

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

Introduction

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

The key aspects of the project change management plan include:

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

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

Background

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

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

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

Project Delivery Method

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

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

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

 



About the Author


Stephen D. Lisse

Virginia, USA

 

 

 

 

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

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

 

 

Income as Incentive

An Examination of Money as a Motivator Among Top Tier Employees

 

FEATURED PAPER

By Steve Ford

Colorado, USA

 



Abstract

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

Introduction

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

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

Questions Explored in the Research

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

Literature Review

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

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

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

 



About the Author


Steve Ford

Colorado, USA

 

 

 

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