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Taking Care of (Project) Business

 

Project Business Management

SERIES ARTICLE

By Oliver F. Lehmann

Munich, Germany

 


 

“I admire Picasso. He sold his oil more expensive than anyone else.”
Unknown

 

Summary

Project Business with clients and contractors comes with specific challenges for all professionals involved. They need a good understanding of project management, but also of commercial and legal matters in order to make the project satisfactory for the organizations and individuals involved.

More education is necessary to prepare even experienced project managers for these challenges. At the moment, most project managers learn Project Business Management through trial and error.

However, trial in project business is expensive, and error even more.

Liquidity

It is autumn 2019 while I am writing this article, and attentive readers of business press find the topic of liquidity addressed in many places:

  • On 23 September, UK’s oldest provider of package holidays went into insolvency after 178 years of operation. British travel firm Thomas Cook had failed to fully refinance huge debts and went out of business, forsaking 150,000 tourists, Britons and people from other nationalities, stranded in holiday destinations, sending several thousand employees into unemployment, and leaving an unknown number of invoices from business partners unpaid[1].
  • On the same day, a scathing letter became public by Ola Källenius, the CEO of German Mercedes-Benz car maker Daimler AG. In this letter, Mr. Källenius criticized the losses of the group, which added up to 4.2 billion Euros, and called for the protection of the “financial solidity”, which he called a “life vein of the corporation[2].
  • Automotive again, same day. South China Morning Post reported that during the second quarter of 2019, the Chinese maker of electric cars NIO burned 2.6 billion yuan (US$4 million) a day. Their cumulative losses since their foundation 5 years ago are reported at US$5.7 billion. The company, according to the article, hopes for an infusion of 10 billion yuan by an investor, however given its reported rate of burning money, this would just help the company to survive another four days.
  • One month earlier, in August, India Business Law Journal wrote that “More action needed to ease contractors’ liquidity crisis”. Blaming unresolved disputes and insufficient performance of contractors in infrastructure and construction projects as the culprit, the article describes how an entire national industry suffers from losses and late payments.[3]
  • US aircraft manufacturer Boeing may currently also be much more in liquidity troubles than what is communicated in public. The corporation had a stock buy-back program over US$20 billion in 2018 and are about to invest US$4.75 billion in buying Brazilian Embraer, a manufacturer of small commercial aircraft. Since March 2019, their most promising model, the Boeing 737 MAX has been grounded by aviation regulators around the world, and newly built aircraft are stockpiling and cannot be delivered. Already delivered aircraft have also been grounded, and their operators already began charging the costs of the grounding to Boeing. According to IBA Group, the costs of grounding are at about US$150,000 – per aircraft and per day.[4] At the same time, sales of Boeing aircraft are slumping[5]. Boeing is still a darling of investors, due to its large backlog of orders from the last years to be fulfilled and its second business in military, however this may finally prove to be a temporary relieve only.

The majority of the examples above are not from project management, however, they show the crucial significance of liquidity for any company’s survival. Most companies need to live from the earnings made from the business they do. The examples also show that the matter is not specific to an industry, or a certain country culture, it is a universal issue for every business anywhere in the world.

Such as project business.

Project Business

Project business takes place, when organizations come together to do one or more projects. These projects are no more just cross-functional, they are cross-organizational.

Figure 1: Cross-functional projects are performed inside the protective walls of a performing organization. Cross-corporate project span over several organizations.

Project Business Management (PBM) brings together project management and business management. However, it is different in its lack of experts who are qualified to help organizations do better projects with paying customers on one side and successful contractors on the other.

More…

 

To read entire article, click here

 

Editor’s note: This series of articles is by Oliver Lehmann, author of the book “Project Business Management” (ISBN 9781138197503), published by Auerbach / Taylor & Francis in 2018. See author profile below.

How to cite this article: Lehmann, O. (2019). Taking Care of (Project) Business; Series on Project Business Management; PM World Journal, Vol. VIII, Issue IX, October.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/10/pmwj86-Oct2019-Lehmann-Taking-Care-of-Business.pdf

 


 

About the Author


Oliver F. Lehmann

Munich, Germany

 

 

 Oliver F. Lehmann, MSc., PMP, is a project management author, consultant, speaker and teacher. He studied Linguistics, Literature and History at the University of Stuttgart and Project Management at the University of Liverpool, UK, where he holds a Master of Science Degree. Oliver has trained thousands of project managers in Europe, USA and Asia in methodological project management with a focus on certification preparation. In addition, he is a visiting lecturer at the Technical University of Munich.

He has been a member and volunteer at PMI, the Project Management Institute, since 1998, and served five years as the President of the PMI Southern Germany Chapter until April 2018. Between 2004 and 2006, he contributed to PMI’s PM Network magazine, for which he provided a monthly editorial on page 1 called “Launch”, analyzing troubled projects around the world.

Oliver believes in three driving forces for personal improvement in project management: formal learning, experience and observations. He resides in Munich, Bavaria, Germany and can be contacted at oliver@oliverlehmann.com.

Oliver Lehmann is the author of “Situational Project Management: The Dynamics of Success and Failure” (ISBN 9781498722612), published by Auerbach / Taylor & Francis in 2016 and ofProject Business Management” (ISBN 9781138197503), published by Auerbach / Taylor & Francis in 2018.

To view other works by Oliver Lehmann, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/oliver-f-lehmann/

 

[1] (Collinson, 2019)

[2] (Köster, 2019)

[3] (Negi & Kumar, 2019)

[4] (Whybrow, 2019)

[5] (Johnsson & Kochkodin, 2019)

 

FOCUS

 

BOOK REVIEW

Book Title: FOCUS (HBR Emotional Intelligence Series)
Author:  Various Authors
Publisher:  Harvard Business Review Press
List Price: $19.99
Format: Soft Cover, 176 pages
Publication Date:  2019
ISBN: 13-978-1-63369-658-7
Reviewer: Edward Raibick, PMP
Review Date: September 2019

 


 

Introduction

The Harvard Business Review book titled Emotional Intelligence – FOCUS, is one in a series of books focusing on the human side of management and professional life. It focuses on providing tips for staying laser focused on achieving individual goals and business objectives, avoiding distractions, and stress reduction techniques as you work in a fast-paced business environment.

Overview of Book’s Structure

  • Chapter 1.- by Daniel Goleman, discusses in detail the three types of focus: self-focus, focus on others and focus on the world. It provides insight to the primary challenge of any leader is to direct attention and filter distractions, not only with themselves, but with others as well. Daniel dives into subjects such as the empathy triad, self-control, and the importance of building relationships.
  • Chapter 2 – by Kandi Wiens, dives into breaking the cycle of stress and distraction by using emotional intelligence. She discusses the impact of stress on the body, causes of stress, and methods of stress reduction. Not actively managing stress can leave the individual feeling anxious, unable to focus, and trigger hormonal changes that can have a negative impact on the body. Kandi provides practical mindful techniques for combating these issues. She also discusses mindfulness as a tool to regain focus and reduce stress.
  • Chapter 3 – by Michael Lipson, reviews improving focus by actively knowing that you are losing focus, and then providing tips and techniques that can be used to regain focus. Actively knowing that distraction is occurring, and the structure of distraction, you will improve the strength in remaining focused and minimizing distraction.
  • Chapter 4 – by Amy Gallo, discusses what to do when you are feeling distracted. Insights on managing emotional responses of frustration, anxiety and anger are reviewed as well as its impact on productivity She also dives into the dangers of multitasking, and its impact on overall productivity goals and objectives. Amy discusses setting up personal boundaries for yourself, interactions with others, colleague support and personal care during times where high attention focus is required.
  • Chapter 5 – by Heidi Grant, coaches the reader on self-motivation in getting their project started and avoiding procrastination. She discusses the main reasons for procrastination and methods that can be used for dealing with each situation. She also introduced if-then planning methods for completing your project based on various possible situations.

More…

 

To read entire Book Review, click here

 


 

About the Reviewer


Edward Raibick, PMP

Texas, USA

 

 

Edward Raibick, PMP is a Project Management Consultant with extensive experience in software engineering, managerial and IT Project Management. Edward holds a Master’s degree in Information Technology with a concentration in Internet and IT security, a Bachelor’s degree in Information Technology and an Associate in Specialized Technology degree in Electronics. His career includes over 10 years with the IBM Corporation and over 15 years with Texas Instruments. His consultant projects includes major clients such as Experian, United Airlines and Southwest Airlines.

Edward is a member of the Project Management Institute, Dallas Chapter, having acquired his PMP certification in 2011.  Edward is also currently the Director of the Dallas PMI Chapter Book Review Program.

Contact: Email address: raibick@sbcglobal.net

 

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 who agree to provide a review within 45 days; book reviews are published in the PM World Journal and PM World Library. 

If you have read a good recently-published book related to managing programs, projects or teams of professionals, consider authoring a book review for publication in the PM World Journal.  For our standard format or for more information, contact Editor@pmworldjournal.com or visit https://pmworldlibrary.net/book-review-program/

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact Editor@pmworldjournal.com.

 

 

The Persuasive Project Manager

 

BOOK REVIEW

Book Title:  The Persuasive Project Manager: Communicating for understanding
Author:  Dr. Bill Brantley
Publisher:  Bill Brantley
List Price:   $5.99
Format:  Soft cover, 87 pages
Publication Date:   2019
ISBN: 978-1-79572-849-2
Reviewer: Valentina Rada, MBA, PMP, PMI-ACP
Review Date: September 2019

 


 

Introduction

One of the most vital elements of project management is communication. In average a project manager spends, or should, spend 90% of the time communicating. The author of The Persuasive Project Manager book, Dr. Bill Brantley, a project management practitioner, is outlining the understanding as the key part of the communication. We all communicate, but how much our message is truly understood by our team members, stakeholders.

Overall communication is influenced by multiple factors, such as online technologies that add to the communication barriers, the number of people in the teams that increases communication channels and culture. A project manager should know how to leverage project management communication strategies to be a persuasive project manager.

Overview of Book’s Structure

The Persuasive Project Manager emphasizes how to overcome communication challenges. It’s about understanding instead of just offering information, persuading through logical arguments and emotional impact.

The book is structured key eight areas that help a project manager how to master persuasive communication: 1) Communication is more than information transfer. Understanding is about know-what, know-how and know-why; 2) Ethos, Pathos and Logos. Aristotle’s triad is the foundation of being persuasive following your credibility, emotions and logic; 3) Emergent communication model. We build meaning from our communication before, during and after communication occurs; 4) Information transfer model. It’s important for project managers to have effective ways of transmitting and receiving project information; 5) Emotional vs cultural intelligence. Understanding cultural differences helps project managers to be better communicators; 6) Cognitive biases. Cognitive biases can lead to organizational failure by harming project teams and are erroneous ways to receive and process information; 7) Effective communication with remote team members and stakeholders. That’s important to build trust with remote team members; 8) Emergent communication model. Emergent communication model is the foundation of the three leadership models: situational, servant and coaching.

Highlights

The author, Dr. Bill Bratley, refers back to ancient Aristotle’s persuasive triad of ethos, logos, pathos that is still relevant to today’s communication principles. Ethos and pathos help you gain your audience attention and engagement with your message, but it is your logos that persuade your audience. Ethos is about your credibility, pathos about your emotions, logos shows your logic…

More…

 

To read entire Book Review, click here

 


 

About the Reviewer


Valentina Rada

Texas, USA

 

 

 

Valentina Rada’s professional experience includes twenty years of experience in market research, retail and restaurant industries as research analyst and project manager. She is a Project Management Professional and an Agile Certified Practitioner. She has a Master in Business Administration from the University of the Incarnate Word. She is currently a Senior Project Manager for the City of San Antonio in Texas. Valentina can be reached at valirada@hotmail.com or www.linkedin.com/in/valentina-rada

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Alamo Chapter. Authors and publishers offer 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 have read a good recently-published book related to managing programs, projects or teams of professionals, consider authoring a book review for publication in the PM World Journal.  For our standard format or for more information, contact Editor@pmworldjournal.com or visit https://pmworldlibrary.net/book-review-program/

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact Editor@pmworldjournal.com.

 

Body Language Silent Influencing

 

BOOK REVIEW

Book Title:    Body Language Silent Influencing: Employing Powerful Techniques for Influence and Leadership
Author:  Michael Nir
Publisher:  Sapir Publishing, Boston, MA
List Price:   $19.99
Format:  Paperback, 210 pages
Publication Date:  3rd Ed, 2016
ISBN: 978-1499339567
Reviewer: Bettina T. McGriggler, PMP
Review Date: September 2019

 


 

Introduction

Body Language, Silent Influencing, is valuable reading for leaders or anyone involved in managing teams and projects. The author, Michael Nir, successfully weaves behavioral concepts with real-world scenarios to demonstrate the role body language plays in identifying, gaining and retaining influence. Our behavior and gestures are constantly sending signals about our thoughts, understanding, agreement and disapproval of verbal communications. Leaders who develop expertise in analyzing the differences between verbal and non-verbal communications can gain influence and increase their opportunities for success in any situation.

Overview of Book’s Structure

The book is divided into six main lessons with reader exercises for each section. Areas of concentration include: 1) Silent Influencing and Leadership; 2) Body Language Arts – 101; 3) Influencing with Your Hands; 4) Recognizing and Utilizing Stress, Resentment and Inconsistent Behavior; 5) Influencing Silently, Integrating for Powerful Results; and 6) Ready, Set, Go – Creating Change.

The exercises illustrate key concepts discussed in each section through practical application scenarios. In addition to the exercises, there are (4) reader tools that spotlight key information for reflection and quick reference. These include:

  • Remember Scrolls that summarize key concepts
  • Thinking Alerts displayed as shaded boxes containing real world take-aways
  • Case Study stories that bring concepts to life; and
  • Reflection Clouds that target thoughts on specific ideas and insights.

Michael Nir bases his analysis on a combination of Gestalt theory, neuro-linguistic programming and behavioral economics. The appendix contains additional information on these topics for those who desire further study into the psychological foundation.

Highlights

Body Language provides a wealth of valuable information. Some areas that will be of interest to readers include:

  • Silent influencing is a “not-so-learned” art. Traditionally education focused on  teaching hard skills, not soft skills. This trend left many leaders unequipped to silently influence others.
  • The ability to understand and control non-verbal “language” is critical for leaders who lack position authority or power, but are responsible for key deliverables. These leaders achieve their goals only if they can influence others to follow their lead.

More…

 

To read entire Book Review, click here

 


 

About the Reviewer


Bettina T. McGriggler

Texas, USA

 

 

Bettina T. McGriggler’s career includes portfolio, project and functional management in financial services, retail, health care, contact centers and manufacturing. She is a Project Management Professional and holds a JD/MBA from the University of Kansas and a BA in International Relations from Drake University. She is currently the Franchise Owner of SYNERGY HomeCare in San Antonio, TX.

Bettina can be reached at linkedin.com/in/bettina-mcgriggler-5842a511/

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Alamo Chapter. Authors and publishers offer 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 have read a good recently-published book related to managing programs, projects or teams of professionals, consider authoring a book review for publication in the PM World Journal.  For our standard format or for more information, contact Editor@pmworldjournal.com or visit https://pmworldlibrary.net/book-review-program/

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact Editor@pmworldjournal.com.

 

How to get every Network Diagram Question right

 

BOOK REVIEW

Book Title:  How to get every Network Diagram Question right on the PMP Exam
Author:  Aileen Ellis, PgMP, PMP
Publisher:  CreateSpace
List Price:   $7.99
Format:  Paperback
Publication Date:   2015
ISBN: 1503118053 and 13 9781503118058
Reviewer: Rodger L. Martin
Review Date: August 2019

 


 

Introduction

How to get every Network Diagram Question right on the PMP Exam – PMP Exam Prep Simplified – One in a series of mini-books (50+ PMP Exam Prep Sample Questions and Solutions on Network Diagrams) – Now that’s a title!

Aileen’s view on PMP Exam Preparation

To learn to ride a bike, a person must ride a bike. To learn to pass the PMP Exam, a person must practice with hundreds and hundreds of PMP Exam Prep sample questions.

This book is the third book in her series of mini- books – PMP® Exam Preparation Simplified Series. Over the last 20 years Aileen has helped more than 10,000 project managers in her workshops obtain their PMP credential. Often the participants in Aileen’s workshops are successful project managers who may lack experience is specific topics on the PMP Exam. The topics that participants seem to struggle with the most include:

  • Earned value Management (EVM)
  • Contract types and calculations (FPIF, CPIF, PTA, etc.)
  • Network diagrams including float, free float, project float, leads and lags
  • Financial based questions i(IRR, ROI, etc.)
  • Statistical based questions

There is one thing all of these areas have in common and it is math.

More…

 

To read entire Book Review, click here

 


 

About the Reviewer


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

Texas, USA

 

 

Rodger L. Martin has a broad background in business, law, engineering and Project Management, both plan-driven and Agile.  He is a retired US Air Force officer with expertise in rockets and National Ranges.  His work experiences include government, military, public corporations, small business consulting and high-tech non-profit organizations.  For the last 20 years, he has worked on Document Management, Knowledge Management and Process Management/Modeling projects for commercial companies.  He acquired his PMP certification in 2007 and his PMI-ACP in 2015.  He is also a certified Mediator.  He is a member of both the Dallas and Alamo (San Antonio) Chapters of PMI.  He is the Director of Book Reviews for the Alamo PMI Chapter.

Email address: 10751@impulse.net

LinkedIn Profile: https://www.linkedin.com/in/rodgerlmartin

 

Editor’s note:  This book review was the result of a partnership between the publisher, PM World and the PMI Alamo Chapter. Authors and publishers offer 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 have read a good recently-published book related to managing programs, projects or teams of professionals, consider authoring a book review for publication in the PM World Journal.  For our standard format or for more information, contact Editor@pmworldjournal.com or visit https://pmworldlibrary.net/book-review-program/

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact Editor@pmworldjournal.com.

 

The Mind of the Leader

 

BOOK REVIEW

Book Title: The Mind of the Leader: How to Lead Yourself, Your People, and Your Organization for Extraordinary Results
Author:  Rasmus Hougaard and Jacqueline Carter
Publisher:  Harvard Business Review
List Price:   $30.00 USD
Format:  Hardback, 238 pages
Publication Date:   2018
ISBN: 9781633693425
Reviewer:  Sheila Renee Jackson
Review Date: September 2019

 


 

Introduction

The Mind of the Leader helps us answer the age-old question, “What’s on your mind?” As the authors explain in the introduction, we often see, through their actions, what is, or is not, on a leader’s mind. The authors suggest three foundational, mutually enhancing, qualities of great leadership, which they call MSC leadership. (M)indfulness. (S)elflessness. (C)ompassion.

The Mind of the Leader is a product of more than two years of research by the Potential Project around the qualities necessary for success in twenty-first century leadership and is based upon interviews and assessments of more than 35,000 leaders and 250 executives at Microsoft, Lego, Accenture, and McKinsey. The book includes an accompanying self-titled App available on Android and Apple.

Overview of Book’s Structure

In the introduction the authors explain the three levels of leadership (Yourself, Your people, Your organization) and illustrate this concept graphically (p. 4). This graphic is used throughout with the particular chapter emphasis highlighted. The book’s three parts each detail one level of leadership using the MSC pattern. The book’s formatting consistency enhances its effectiveness; locating answers within each of the three parts is easier because of this pattern.

The capstone statement for this book might be “Leadership is less about what you do and becoming more of what you are.” Leaders who are more approachable, more relatable and more truly human are the ones who succeed. This book is a move away from leadership development’s traditional starting points of strategy, vision, and spreadsheets. Instead, the authors propose an inside-out approach with the book as their supporting outcomes-based research. “You cannot manage other people unless you manage yourself first.” [Peter Drucker]

The Mind of the Leader is organized around three levels of leadership, with awareness as the core of each: self, people and organization.

More…

 

To read entire Book Review, click here

 


 

About the Reviewer


Sheila Jackson, PMP

North Texas, USA

 

 

 

Sheila Jackson, PMP, MBA, PSM-I has more than sixteen years of project management experience, in multiple industries and settings. Sheila has an MBA from the University of North Texas and a BA in Psychology from Baylor University.

 

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 who agree to provide a review within 45 days; book reviews are published in the PM World Journal and PM World Library. 

If you have read a good recently-published book related to managing programs, projects or teams of professionals, consider authoring a book review for publication in the PM World Journal.  For our standard format or for more information, contact Editor@pmworldjournal.com or visit https://pmworldlibrary.net/book-review-program/

If you are an author or publisher of a project management-related book, and would like the book reviewed through this program, please contact Editor@pmworldjournal.com.

 

 

Construction Management at Risk

(CM@Risk) Delivery Method from an Owners Representative Perspective (The Good, The Bad and The Ugly)

 

SECOND EDITION

By Kevin M. Wills, CCM, LEED AP

and

Steve R. Pancham, CCM

McDonough Bolyard Peck, Inc. (d/b/a MBP),

Virginia, USA

 


 

Abstract

This paper is based upon lessons learned from Owner’s Representative perspective managing and auditing over 60 construction management at-risk (CM@Risk) projects for public owners over the past 10 years. The paper provides an overview of the benefits, risks and lessons learned to owners associated with the CM@Risk delivery method from selection through construction to closeout. Our discussion will provide insightful solutions to manage the process efficiently, to guide the owner, and to provide a check that will keep the project on the right path. Owners want to keep projects on schedule, under budget, and to have high quality, so our solutions mentioned in this paper will help facilitate trust amongst the parties of the project through transparency (not only the Good aspects of a project, but also the Bad and Ugly and how to openly address them in a collaborative and tactful manner). Our discussion also provides a unique perspective, gathered from lessons learned from the auditing of public CM@Risk projects.

Introduction

CM@Risk delivery method has been utilized for over 30 years and continues to be used as a popular method for construction project delivery. Like all project delivery methods, there are pitfalls, benefits, costs, and risks. The objective of this paper is not to provide a comparison of the various delivery methods, but rather to examine the use of CM@Risk delivery method for the owner’s benefit and discuss what issues and challenges can be anticipated in its use. The information presented is based upon lessons learned developed as an Owner’s Representative on CM@Risk projects and providing financial auditing of CM@Risk projects. The result is a list of recommendations and solutions to assist owners in this delivery method for achieving better results and better outcomes for construction projects that employ this method of delivery.

Definition of CM@Risk

The Association of General Contractors (AGC) defines CM@Risk as:

“A specific variation of construction management in which the public owner engages both a project designer and a qualified construction manager under a negotiated contract to provide both preconstruction services and construction. The CM@Risk (CM/GC) provides consulting and estimating services during the design phase of the project and acts as the general contractor during construction, holding the trade contracts and providing the management and construction services during the construction phase. The degree to which the CM/GC provides a cost and schedule commitment to the public owner is determined during the negotiation of the final contract. (This is a risk issue. If there is no risk involved, it is not CM/GC.)” [1]

The Construction Management Association of America (CMAA) defines CM@Risk as:

“A delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as consultant to the owner in the development and design phases, but as the equivalent of a general contractor during the construction phase. When a construction manager is bound to a GMP, the most fundamental character of the relationship is changed. In addition to acting in the owner’s interest, the construction manager also protects him/herself.” [2]

More…

 

To read entire paper, click here

 

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the 6th Annual University of Maryland PM Symposium in May 2019.  It is republished here with the permission of the author and conference organizers.

How to cite this paper: Wills, K. and Pancham, S. (2019). Construction Management at Risk (CM@Risk) Delivery Method from an Owners Representative Perspective (The Good, The Bad and The Ugly); presented at the 6th Annual University of Maryland Project Management Symposium, College Park, Maryland, USA in May 2019; PM World Journal, Vol. VIII, Issue IX, October.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/10/pmwj86-Oct2019-Wills-Pancham-construction-management-at-risk.pdf

 


 

About the Authors


Kevin Wills

Virginia, USA

 

 

 

Kevin Wills, CCM, LEED AP MBP, is a Senior Project Manager at McDonough Bolyard Peck, Inc. (d/b/a MBP).  Kevin brings 33 years of experience in program management, construction management, inspection, scheduling, cost estimating, and claims analysis. His breadth of experience includes hospitals, prisons, k-12 schools and higher education buildings, heavy civil construction, environmental mitigation and remediation, and maintenance for new construction and the renovation of existing facilities. Kevin can be contacted at kwills@mbpce.com

 


Steve Pancham

Virginia, USA

 

 

 

Steve Pancham, CCM MBP, is Vice President, Service Executive at McDonough Bolyard Peck, Inc. Steve brings 32 years of experience in transportation, utility infrastructure, and new building and renovation projects. Steve has served as project engineer/manager in charge of more than $500 million in highway and building construction projects.  Claim to fame -Steve was on the San Francisco Bay Bridge during the 1989 Loma Preita earthquake and was part of the earthquake response team inspecting bridges for the California Department of Transportation (CALTRANS).  Steve can be contacted at spancham@mbpce.com

 

[1] CM/GC Guidelines for Public Owners, second edition 2007 by the Association of General Contractors and the National Association of State Facilities Administrators.

[2] CMAA: Construction Management Standards of Practice 2003

 

Enhancing Value Creation through Digital Transformation

Architecting Project Management for Embracing Disruptions – Digital Transformation

 

SECOND EDITION

By Dr Badri N Srinivasan,

Enterprise Agile Coach and AVP
Societe Generale Global Solutions Center

Bangalore, India

 


 

ABSTRACT

Enhancing Value Creation through Digital Transformation

Large organizations in the world are currently grappling with profound disruptions related to technology and competition that is taking place in the world all around us. In order for the organizations to survive in the future they need to acknowledge, understand, maneuver and manage the disruption carefully. The existing operating model of the organizations may not be sufficient to manage these disruptions effectively.

The focus on machine learning, AI, big data, analytics, agility, block chain and digital has led to additional disruptions. The role of the Project Managers has also been disrupted and changed considerably on account of the disruption. Organizations can survive for the future through the optimization of its operating model through a project based digital transformation approach.

This paper has been developed based on the live experience and the real time implementation that is proven at the workplace, especially for large enterprises in the IT domain.

This paper will focus on the following areas –

  1. Why Disruption? How to focus on the bigger Purpose
  2. How a digital transformation can manage the disruptions effectively
  3. How to aid the digital transformation through Agility and Innovation
  4. How do anti-fragility, removal of Retrospective coherence and Klein bottle concept enhance the focus of a digital transformation
  5. Role based organization design to manage disruptions effectively
  6. Proposed framework (tools, technology, structure, roles) to address these issues
  7. Benefits of using the framework

By adopting a suitable framework, the organization will be able to reinvent itself to meet the changing market requirements.

INTRODUCTION

Digital transformation is a fundamental change in how an organization delivers business value to its customers. It is a radical focus on how an organization uses technology, processes and people to fundamentally change the way it is doing business. Digital transformation is perceived to lead to enhanced value creation provided all the other existing attributes and constraints are managed appropriately.

Large organizations in the world are currently contending with profound disruptions related to technology and competition that is taking place in the world all around us. In order for the organizations to survive in the future they need to acknowledge, understand, maneuver and manage the disruptions carefully. The existing operating model of the organizations may not be sufficient to manage these disruptions effectively. Hence, the focus on digital transformation which changes and reshapes the organization to effectively meet the disruptive threats in the market place.

The change that occurs when new business models and digital technologies affect the value proposition of existing goods and services is called as digital disruption. A successful digital transformation includes enabling the business to manage large amounts of “big data” – which is the capability to analyse all aspects of the behavior of the customer and use those insights to manage the growth of the business line. Digital disruption is a transformation that is caused by emerging business models and digital technologies. These innovative new models and technologies impact the value of the existing products and services offered by the organization.

Digital disruption is an opportunity for the organizations to reshape their business areas. It is no longer a hypothetical state across all the industrial domains and it is a reality today… One of the key steps in this transformation is extending the concept of digital disruption beyond the IT department and into business operations. The whole organization is impacted by the digital transformation and it should not be restricted only to the IT department. The focus on machine learning, AI, big data, analytics, agility, block chain and digital has also led to additional disruptions. In business, a disruptive innovation is an innovation that establishes and creates a new market and value network and it eventually leads to the disruption of the existing market and value networks, thereby dislocating established market-leading organizations and products. Figure A gives the details pertaining to the reign of digital disruption in the near future.

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Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the PM Practitioners Conference, Bangalore PMI Chapter, India in July 2018.  It is republished here with the author’s permission.

How to cite this paper: Srinivasan, B.N. (2019). Enhancing Value Creation through Digital Transformation: Architecting Project Management for Embracing Disruptions – Digital Transformation; PM World Journal, Vol. VIII, Issue IX, October.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/10/pmwj86-Oct2019-Srinivasan-enhancing-value-creation-through-digital-transformation.pdf

 


 

About the Author


Badri N. Srinivasan    

Bangalore, India

 

 

 

Dr. Badri N. Srinivasan is AVP and Enterprise Agile Coach at Societe Generale Global Solutions Center (SG GSC), Bangalore and Karnataka, India. He is responsible for the implementation of continuous delivery and agile practices in the organization. He has 20+ years’ experience and has extensive experience in process implementation and organizational change management processes and process improvement initiatives in the travel, retail, manufacturing, real estate, mortgage and banking, healthcare and financial services domains. He is a Certified Scrum Master (CSM), Accredited Kanban Trainer (AKT), Certified Scrum Product Owner (CSPO), Project Management Professional (PMP) ® from the Project Management Institute (PMI), USA and a certified Six Sigma Green Belt (SSGB), apart from other certifications. His extensive experience includes coaching, managing, mentoring and training ScrumMasters, product owners, and project/program managers and implementation of enterprise agile practices in the organization. He has published numerous articles in various magazines/online forums – Scrum Alliance, InfoQ, PMI – Knowledge Shelf, DZone, Agile Record, Agile Journal, Sticky Minds, techwell.com and Methods and Tools and PM World Journal.

He can be reached by email at thirumazhisaiazhwar@gmail.com, and through his LinkedIn Profile – https://in.linkedin.com/in/badrisrinivasan.

 

How to Recognize Project Failures

and Initiate Project Recovery

 

SECOND EDITION

By Shiven Sompura & James Roessling

California, USA

 


 

Abstract

This paper is to feature the importance of recognizing several causes of project failures and initiating the recovery of the construction projects at the initial stage. Project failure can happen to any organization and to any level project. There are numerous reasons for failure and sometimes it is out of control of a project manager or team members to control failure. Failed projects and people involved with the failure have few things in common. In such cases, they are directed for quick fixes which typically prove to be ineffective and sometimes causes catastrophic side effects. In this paper, we will discuss and emphasize several factors causing project failures, how to classify and categorize project failures, how to conduct, plan and develop an assessment process for project failure. With these key focus areas for assessment, project controls and management review process could be analyzed and can be selected. The study will also help to clarify the necessity and a suitable process an organization should develop to analyze project failures.

Introduction

For contractors, both GC’s and subs, an effective project is one finished on time and within budget. The client is happy with the finished product and the contractor leaves with a clean benefit. Everyone wins. At the point when construction project comes up short, it’s regularly because of conflicts and issues that cause cost overruns and delays in the schedule.

If not properly managed, it will eventually lead to running over budget and blowing past the scheduled substantial completion date. Going over budget eats into the GCs or subs profit in addition to being hit with liquidated damages for every day past the agreed upon completion date. It can also impact upcoming projects if a contractor’s workers and equipment are tied up trying to finish up a failing project.

So, what causes the project to fall flat? Any number of variables can lead to project failures, yet often it comes down to how well the project manager or leadership performs regulating the project.

Factors affecting project failures

a) Under estimating the project: A standout amongst the most widely recognized – and expensive! – reasons a project may fall flat is because of an inaccurate estimate. Miscalculations, specification errors, oversights, excluded permits, and changing economic situations (e.g., costs of materials and work) can all lead to costly overruns, leaving the contractor stressed and the client unhappy.

b) Scope Creep & Change Orders: Scope creep depicts the procedure in which the amount of work grows beyond the original contract or DPP (Detailed Project Plan). The three-fundamental driver of scope creep include:

    1. Owner requests that are out of the scope of work originally settled upon
    2. Unforeseen or general conditions that are unknown to the contractor at the time the contract is signed
    3. Owners not doing thorough preliminary work (e.g., site surveys, proper planning, Geotech report etc.)

While the number one goal of any project is a happy Owner, this can now and again move toward becoming traded off if they consistently make demands without thinking about the cost or don’t give you the most exact data forthright.

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Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the 6th Annual University of Maryland PM Symposium in May 2019.  It is republished here with the permission of the author and conference organizers.

How to cite this paper: Sompura, S. and Roessling, J. (2019). How to Recognize Project Failures and Initiate Project Recovery; presented at the 6th Annual University of Maryland Project Management Symposium, College Park, Maryland, USA in May 2019; PM World Journal, Vol. VIII, Issue IX, October.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/10/pmwj86-Oct2019-Sompura-Roessling-recognize-project-failures-initiate-recovery.pdf

 


 

About the Authors

 


Shiven Sompura, Assoc. DBIA

Engineer at Clark Construction Group in Southern California.

San Diego, California, USA

 

 


James Roessling, PE, PMP, CCM, DBIA

Senior Project Manager at Clark Construction Group in Southern California.

San Diego, California, USA

 

 

 

 

Successful Project Management

in a Low Authority Environment

 

SECOND EDITION

By Joseph Lukas

New York, USA

 


 

Abstract

A frequent complaint by project managers is that they do not have the authority to do their job. Project managers are expected to elicit top performance from all members of the project team, often in an environment of high responsibility and low authority, coupled with the use of borrowed resources in a matrix organizational structure. This paper will explain how to strengthen your ability to effectively work with project teams and other stakeholders to achieve project success without formal authority. This paper will explore the difference between a leader and manager, the sources of power available to all project managers, the role of emotional intelligence, and how personality styles impact the application of leadership and management. Also covered in this paper are suggested methods for getting results and dealing with conflict in an environment of low authority.

Leaders versus Managers

Let’s start out by clarifying the difference between a leader and a manager. A leader is someone who influences and inspires people. A leader will motivate, bring out the best in others, and get people to work together to achieve a common goal. A manager is a person who is responsible for directing and controlling the work of others. A manager will organize, control, balance priorities and make sure the work gets done. Developing and championing a new idea is leadership, while implementing the idea is management. A quote that nicely summarizes the difference between managers and leaders is “managers do things right while leaders do the right things” (Hitt, 1998, p. 5.).

So are leadership or management skills more important to be a successful project manager, or are they equally important? The projects undertaken by a company or organization should align with the corporate vision and strategy, which is typically determined by middle and top management. This level of management also decides on the projects that will be done to support the strategic plans. Note that project managers are responsible for getting these projects successfully done by directing and controlling the work of others. Key responsibilities for project managers include organizing, coordinating, resolving issues and conflicts, and communicating. These descriptors are all about managing the project. You will frequently see in the job description for a project manager a statement about “leading the project team.” However, the reality is that most of what project managers do is simply not leadership. While having a project manager who is a good leader is highly desirable, the manager function is more critical in order to successfully implement the project. The project team may look at the sponsor, some other key executive, or even a respected team member as the person providing the leadership. This isn’t something that gets listed in the role and responsibilities for a project, but the project manager should consider for a project whether the team sees her/him as a leader; or if that will come from another source. Don’t take this as a personal insult since leadership is situational.

The Role of Power

The dictionary defines power as the capacity to do something and includes the control and influence over other people and their actions. In a notable study of power conducted by social psychologists John French and Bertam Raven in 1959, power was divided into five separate and distinct forms: coercive, reward, legitimate, referent, and expert (MindTools, ¶1-5). Although the French and Raven list is frequency cited, listed below is a composite list more specific to the different types of power that are relevant to project managers (Changing Minds, ¶1, 2, 4-8):

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Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally presented at the 6th Annual University of Maryland PM Symposium in May 2019.  It is republished here with the permission of the author and conference organizers.

How to cite this paper: Lukas, J.A. (2019). Successful Project Management in a Low Authority Environment; presented at the 6th Annual University of Maryland Project Management Symposium, College Park, Maryland, USA in May 2019; PM World Journal, Vol. VIII, Issue IX, October.  Available online at https://pmworldlibrary.net/wp-content/uploads/2019/10/pmwj86-Oct2019-Lukas-successful-project-management-in-a-low-authority-environment.pdf

 


 

About the Author


Joseph Lukas

New York, USA

 

 

 

Joseph A. Lukas, PMP, CSM, PE, CCP has been involved in project management for over 35 years. His work experience spans engineering, manufacturing, construction, project controls, estimating, contracting and project, program and portfolio management. His projects experience includes information systems, product development, construction and manufacturing. Joe joined PMI in 1986 and has held many Chapter Board positions in Rochester, NY including two terms as President. He is a registered Professional Engineer, Project Management Professional, Certified Scrum Master and Certified Cost Professional. Joe has over 50 published articles on project management topics and is a frequent guest speaker for companies and organizations across the country. Joe teaches and consults on project management topics and interpersonal skills.

Joe Lukas can be contacted at Joe.Lukas@PMCentersUSA.com

 

 

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