A business is largely a collection of integrated processes. This applies to projects as well. Integrated processes have interfaces and these interfaces are dynamic and complex. Interfaces are the points at which risks are significant; the management of interfaces is an important function of project managers. Interfaces can be technical, organizational and environmental. They can be internal to the organization or relate to external stakeholders.
Establish the criteria for flagging, reporting and tracking change with your client. These same criteria should flow down into the contract documents with contractors and vendors.
Communicate change.
Document change.
Use feedback from the field to improve technical performance and PM processes.
Establish an open dialogue with the contracting community; the supply chain is a valuable source for engineering innovation, procurement efficiency and schedule optimization. Proper change management results in clearer expectations and more effective deployment of project resources. It also provides sponsors with critical information for timely decision making.
Risks that must be considered in implementing new software tools -
- Not providing sufficient training.
- Not initiating use of the I.T. soon enough.
- Not understanding the bandwidth required to use the program effectively.
- Not establishing one team leader (or program champion) who would cast the final vote on the format of the I.T. and the manner in time frame in which it would be rolled out.
- Not realizing that once corporate resources (especially time) are dedicated to a massive I.T. endeavor, it is difficult for people to change gears and consider simpler, more effective alternatives.
The possibility of political motivations within management must be considered, particularly if the company is in a start-up mode or is battling for survival, and competitive forces are great or time-to-market is paramount. High-level managers (in either operations or in IT) often bet the future of the company on a system that they have championed. The perceived intangible cost to the manager who has supported a system that has become exceedingly difficult to implement or whose total overall costs to the organization have not been identified are great. It is likely that such a manager would continue to invest time, money, and organizational resources in an IT system whose benefit does not clearly outweigh its cost. In this case, reversing his or her position on an IT system could adversely affect career plans or undermine power within the organization; the possible negative consequences to the manager’s career could result in decisions that are not in the best interest of the project or the organization. This is a manifestation of the agency problem.
Ethics is not a buzz word. It cannot be treated as a flavor of the month. Now, more than ever, we see a real need for ethical conduct in project teams and within project organizations. I submit that construction firms must establish a zero-tolerance policy for ethical behavior. For too long, the bar has been set very low. It is time to raise it. We need to enforce transparency, honesty and integrity in the practice of project management, the execution of projects and the management of firms in the building industry. The cost of unethical behavior is NOT acceptable. The industry must escape its own inertia and transform its culture. Unethical behavior in the construction industry impacts all of us.
I refer you to the PMI’s ® (Project Management Institute’s ®) PMBOK ® Guide. There are five tasks identified in the Professional Responsibilities Domain Area of the PMBOK ® Guide:
“The PMI ® Code of Professional Conduct emphasizes that Project Management Professionals ® must function as ‘role models’ and exhibit characteristics such as honesty, morality, and ethical behavior.” (Ref. Harold Kerzner, PhD, Project Management, 10th Edition, p. 343)
Like many people in the construction industry, I am confounded by the uncertainty (and occasional mystery) surrounding bidding and estimating. Why is estimating so difficult? How can we make it easier? Why is estimating not a more exact science?
I have come up with some answers, which although incomplete, do provide some meaning. Estimating is as much an art as a science. I have written a top ten list describing estimating. Here is my imperfect and confounding list, which I hope you find useful if not amusing…
I came across this report card published by the ASCE (2009). It pertains to the state of the U.S. infrastructure in key areas and makes recommendations for improvement. I believe that we will make a national commitment to improving infrastructure. I foresee a revitalization of the infrastructure construction market that will bode well for the construction industry; an industry that we all care deeply about. This information was published by Project Management Institute in PM Network, February 2010.
SOLUTIONS – IDENTIFIED BY ASCE
ASCE REPORT CARD
ENERGY > D+ > Need for $1.5 Trillion Investment Forecasted by 2030
PUBLIC PARKS > C-
SCHOOLS > D > $322 Billion Needed to Upgrade Schools (per the National Education Association)
AVIATION > D > $87 Billion Upgrade Estimated
BRIDGES > C
INLAND WATERWAYS > D-
RAIL > C-
ROADS > D-
TRANSIT (BUS & RAIL) > D
HAZARDOUS WASTE > D
SOLID WASTE > C+
WASTE WATER > D- > EPA Estimates $390 Billion Required Over the Next 20 Years
DAMS > D
DRINKING WATER > D- > $11 Billion Annual Shortfall
LEVEES > D- > $100 Billion Needed
As project managers, we are on the front lines of new process developments and the deployment of new technologies. We are tasked with managing in changing environments, and asked to stretch our skill sets to include an understanding of business imperatives in addition to leading people and processes towards defined objectives. Project managers, in projectized organizations, are often involved with the presentation of business cases, the structuring of NPV (Net Present Value) models, the formation of budgets, and estimation of the projected costs before the project is undertaken. The memories of the tech-sector euphoria and subsequent downturn are still fresh. These memories resonate strongly for project managers in the financial services sector as well as those who are involved with how technology projects are financed and measured. We must be mindful that the role of project managers has increased, as has the expected scope of our business understanding.
We cannot plead ignorance of the core business drivers, which are at the heart of the commercialization of new technologies. We certainly have to appreciate that technology can become a commodity as markets become more competitive. We should be aware that globalization combined with the shrinking product life cycles of new technologies, has created a fiercely competitive landscape where survival hinges on a company’s ability to commercialize technology. In their paper “Commercializing Technology…what the best companies do”, T.M. Nevens, G.L. Summe and B. Uttal suggest that leading companies:
1. Commercialize at least two to three times the number of products as their peers.
2. Incorporate two to three times as many technologies.
3. Bring their product to market in half the time (relative to their competition).
4. Compete in twice as many product areas and geographic markets.
Beating the competition requires meeting customer needs for mass customization as well as time to market targets. Project management is at the root of countless technology commercialization initiatives; more companies have embraced its use, and have a better appreciation for the benefits of the project management discipline. The spread of project management in mainstream businesses has necessarily raised the bar for all of us. It is imperative that project managers not operate in a vacuum. We as project managers must be sensitive to business, economic and environmental factors that impact the business and the projects which drive the business. This is especially key when we are managing projects that are integrally connected to the commercialization of new technologies or to mission-critical elements of the business. The evolution of project management continues…
1. Define test procedures.
2. Find specification ambiguities.
3. Verify delays especially during document review.
Report review of submittals.
4. Determine or improve methods to increase user
“lock-in”. Suggest customizations, which would drive
“lock-in”. Any features, which would increase switch-
ing costs, would facilitate this.
5. Identify post-integration services, which would be
desirable to users, or make their jobs easier.
6. Identify post-integration services, which would
enhance user productivity.
7. Look for ways to reduce problems generated after
installation.
8. Push for profitable maintenance agreements.
9. Ascertain additional field support that may be needed
by the client.
10. Identify risks associated with site conditions.
11. Look for compatibility or connectivity issues
between our systems and customer infrastructure.
12. Consider improvements in graphics and user inter-
faces, which could be translated into change orders.
13. Standardize processes.
14. Reduce coordination costs.
15. Streamline the handling of “paper”.
Act on it, delegate it…move it.
If you do not have a Project Champion, you are likely to fail.
Find out who the Project Champion is before you start the project.
You may have to recruit a Project Champion from management. This is a person who has organizational clout, and wants you and your project to succeed.
Technical risks include –
Requirements and Performance Criteria / Clear or Ambiguous?
Specifications / Robust or Boilerplate?
Complexity of Interfaces
Reliability
Quality Metrics
Safety Requirements / Safety Program Enforcement
Security
Intellectual Property Management
