M Sc Pm Lecture No 4    Risk
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M Sc Pm Lecture No 4 Risk

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M Sc Pm Lecture No 4    Risk M Sc Pm Lecture No 4 Risk Presentation Transcript

  • PROJECT PROCUREMENT & ORGANISATIONS Roy Clarke MSc. PROJECT MANAGEMENT
  • Primary, Secondary & Tertiary Stakeholder Classification (Generic Model) Has direct “financial” interest in the project (Clients, PM, Architect etc) Has a statutory interest in the project (BCO, EHO, Planning etc.) Has a non direct financial interest in the project (Neighbours, Lobbyists) recap Primary Secondary Tertiary
  • Stakeholder Needs and Expectations Active & Passive Stakeholder Classification (Ulrich’s Model) recap Passively Involved Actively Involved Designers Decision Maker Passive Participants Client
  • Stakeholder Needs and Expectations Internal / External Stakeholder mix (Winch’s Model) recap External Stakeholders Internal Stakeholders Client’s Suppliers Archaeologists Materials Suppliers Client’s Tenants Conservationists Sub Contractors Client’s Customers National Government. Environmentalists Principal Contractors Client’s Employees Local Government Local Landowners Engineers Financiers Regulatory Agencies Local Residents Architects Client Supply Side Demand Side Supply Side Demand Side
    • Stakeholders Needs – The CLIENT
    • 1) Public Sector: Central / Local Gov. MOD etc.
    • Value for (Public) money.
    • Bad Publicity Adverse.
    • Usually have high social agenda.
    • Key decision makers often not Experts.
    • Risk adverse – many consultants usually involved.
    • High quality for civic statements (traditionally)
    • Require longevity of building (often misplaced)
    • Construction duration not always a high priority.
    MSc. PROJECT MANAGEMENT recap
    • Stakeholders Needs – The CLIENT
    • 2) Private Sector: Individual and group ventures etc.
    • Require right quality for given capital cost.
    • Time is usually a priority.
    • Cost is usually a priority.
    • High proportion of expert decision makers.
    • 3) Commercial Property Developer
    • Maximum return on expenditure
    • Sets out to limit future liability.
    • Requires the quickest turnaround possible.
    MSc. PROJECT MANAGEMENT recap
    • Stakeholders Needs – continued.
    • Lead Designers / Architects
    • Recognition of their Creative Ability.
    • ££££’s
    • Repeat Work
    • The Contractor
    • ££££’s
    • Repeat Work
    • Recognition of their Creative Ability.
    MSc. PROJECT MANAGEMENT recap
    • Stakeholders Needs – continued.
    • The PROJECT MANAGER
    • ££££’s
    • ££££’s
    • ££££’s
    MSc. PROJECT MANAGEMENT recap
    • SETTING THE STAGE FOR SUCCESS
    • Why are we doing this? (Purpose)
    • What organisational level goal does this support? ( Goals & Objectives)
    • How does this fit with the other projects that are going on? (Project context and project dependencies.)
    • What is the expected benefit from this project? (Benefits and value, business case)
    • What are we going to do? (Scope)
    • Who is Impacted by this and who must be involved (Stakeholder and stake holder context.)
    • How will we Know when we are done or if the project was successful? (Success criteria)
    Project Definition recap
  • Project Definition recap
  • Project Definition Development of a Project Definition Document. PURPOSE Goals & Objectives Success Criteria Project Context Project Dependencies Scope Specifications Out of Scope Specifications Assumptions Constraints Risks Stakeholder Recommended Approach Adapted from Absolute Beginners guide to project management: G. Hoirine recap
  • CLARKES LAW (# 2): On careers in project management You are only as good as your last Project (or *UCK UP!!) (or MUCK UP!!) MSc. PROJECT MANAGEMENT recap
  • CLARKES LAW (# 3): On knowing where to focus It’s always the “small” projects that will trip you up.
    • Usually through –
    • Lack of Resource
    • Lack of Kudos
    MSc. PROJECT MANAGEMENT recap
  • Assignment 1 Briefing MSc. PROJECT MANAGEMENT
  • Project Management A1 - Briefing Learning Outcomes (or Key Areas)
      • Understand the different project procurement routes currently employed in the UK construction industry and how they influence both the design and construction phases of the project.
      • Understand how the integration or separation of the project design phase and the construction phase place differing emphasis on design innovation and development to the practical issues associated with the construction phase.
      • Understand the implications associated with the use of varying strategies in dealing with design and “build-ability” issues in conjunction with individuals, groups and the project in general.
  • Project Management Procurement and Organization Hierarchical – Pros and Cons
    • Pro’s
    • Clear chain of Command
    • Able to deal with large single projects
    • Manager has authority to control subordinates.
    • Works well with remote & self contained projects (- construction sites ???)
    • Cons
    • Chain of Command can be easily broken leading to a directionless team.
    • Possible suppression of empowerment.
    • Project teams may have to dissolve as there is no base work.
    • Team size may force multiple roles – diminishing expertise and focus
  • Project Management A1 - Briefing TASKS (to be completed)
      • The different procurement options currently found within the construction industry in relation to new build projects - this should include the identification of the design and construction phases and whether these are considered to be integrated or separated.
      • Discuss the impact of design innovation on build-ability and vice versus. Give consideration to the way that the design and construction teams may try to champion their aspects of the project to the detriment of the other team.
      • Explain the contractual relationships between the client, design team and construction team for each procurement route and how this may or may not affect the cohesiveness of the collective project team effort.
      • 4) Discuss how the Project Manager can influence and manage the above – leading to the successful completion of the project objectives.
  • Project Management A1 - Briefing Method (on how its to be done)
      • All papers are to be word processed in A4 format and suitably bound (ring binder, plastic folder or stapled along the back edge). For reasons of clarity the use of 12pt Times New Roman font with 1.5 line spacing is required.
      • You are required to submit a written paper (maximum 2,000 words). The paper must be referenced as appropriate using the Harvard system of referencing. Any appended material must be relevant and cross referenced with the main body of text.
  • Project Management A1 - Briefing MARKING CRITERIA (& how to maximise your marks)
      • Introduction and Background Research 20%
      • Analysis and Synthesis of the task (Main Content) 50%
      • Conclusion and Recommendation 20%
      • Presentation 10%
    • INNOVATION v BUILDABILITY
    FORM v FUNCTION New Established Uncertain Risky Certain Risk Adverse
  • Project Management Procurement and Organization Theoretical Organizational Structures – Hierarchical Managing Director Operations Director Finance Director HR Director BDU Director Head of Facilities Mgt. Head of Operations Regional Managers H&S Manager Area FM’s Account Managers Head of Finance & Admin Head of HR Personnel Manager Training Manager Head of Marketing Head of Development
  • Project Management Procurement and Organization Hierarchical – Pros and Cons
    • Pro’s
    • Clear chain of Command
    • Able to deal with large single projects
    • Manager has authority to control subordinates.
    • Works well with remote & self contained projects (- construction sites ???)
    • Cons
    • Chain of Command can be easily broken leading to a directionless team.
    • Possible suppression of empowerment.
    • Project teams may have to dissolve as there is no base work.
    • Team size may force multiple roles – diminishing expertise and focus
  • Project Management Procurement and Organization Theoretical Organisational Structures – MATRIX. GENERAL MANAGER PROJECT MANAGER (1) PROJECT MANAGER (2) Research & Development Engineering Finance & Procurement Marketing
  • Project Management Procurement and Organization Matrix – Pros and Cons
    • Pro’s
    • Management of Multiple / Complex projects & operations.
    • Better with small projects.
    • Can potentially provide expert focus
    • Gives an extended life/purpose for the team that goes on after the Project
    • Cons
    • Multiple draw on resources.
    • Project manager may have lack of authority and has to act in coordinator role (unless a Secondment Management type i.e. PM has higher authority. )
    • Relies on good communication and “goodwill” between departments.
  • Project Management Procurement and Organization Theoretical Organizational Structures – Hybrid (rotational) Managing Director HR Director Operations Director Finance Director BDU Director Head of Facilities Mgt. Head of Operations Head of Development Head of Marketing Head of HR Head of Finance & Admin
  • Project Management Procurement and Organization Hybrid – Pros and Cons
    • Pro’s
    • Allows range of specialist skills to be tapped into.
    • Lets Managers manage.
    • Allows directorate team to adopt strategic position away from day to day ops
    • Works well with remote & self contained teams departments.
    • Cons
    • Directorates feeling of loss of control
    • fuzzy top down structuring.
    • Prevailing department alignment.
    • Competition for resources.
    • Project procurement Strategies – Organisation of the Construction Industry
    Project Management Procurement and Organization CLIENT ARCHITECT QS ENGINEERING CONSULTANTS MAIN CONTRACTOR NOMINATED SUB CONT DOMESTIC SUB CONT DIRECT LABOUR MATERIALS SUPPLIER PLANT SUPPLIER Traditional design Construct
    • Project procurement Strategies – Organisation of the Construction Industry
    Project Management Procurement and Organization CLIENT ARCHITECT QS ENGINEERING CONSULTANTS MAIN CONTRACTOR NOMINATED SUB CONT DOMESTIC SUB CONT DIRECT LABOUR MATERIALS SUPPLIER PLANT SUPPLIER DESIGN& BUILD
  • CLIENT ARCHITECT (Lead Designer) Specialist Design CONSULTANTS Package CONTRACTOR Management Contracting Design System Construction System Management Contractor Package CONTRACTOR Package CONTRACTOR Project Management Procurement and Organization Construction Management
    • Project procurement Strategies – Organisation of the Construction Industry
    Project Management Procurement and Organization CLIENT ARCHITECT (Lead Designer) QS Specialist Design CONSULTANTS MAIN CONTRACTOR NOMINATED SUB CONT DOMESTIC SUB CONT DIRECT LABOUR MATERIALS SUPPLIER Project Management Design System Construction System PROJECT MANAGER
    • Project procurement Strategies – Organisation of the Construction Industry
    Project Management Procurement and Organization The Future - PARTNERING CLIENT PROJECT MANAGER ARCHITECT MAIN CONTRACTOR Nominated Sub Cont Domestic Sub Cont Structural Consultant Contract Administrator Planning Supervisor Specialist Advisors Q.S M&E Consultant
  • Project Management Procurement and Organization CLARKES LAW (# 4): On Partnering “ PROJECT PARTNERING is a TEAM ETHOS not a CONTRACT METHOD”
  • Design Stages in Procurement
    • 10 common mistakes of Project Managers
    • Not clearly understanding how the project is aligned with the organisational objectives.
    • Not managing stake holder expectations throughout the project
    • Not gaining “Buy in” on project goals & success criteria.
    • Not developing a realistic schedule that includes all tasks and dependencies and getting “buy in” on the schedules.
    • Not clearly deciding and communicating who is responsible for what
    • Not managing changes to the scope of the project.
    • Not communicating with stakeholders.
    • Not tackling risks early in the project.
    • Not aggressively pursuing issue resolution.
    • Not being a leader.
    • Adapted from Absolute Beginners guide to project management: G. Hoirine
    MSc. PROJECT MANAGEMENT