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Indonesia Oil & Gas Cost Estimating

vs International “Best-Tested and Proven” Practices – A Benchmarking Study

 

FEATURED PAPER

By Joko Wisnugroho

Jakarta, Indonesia

 


 

ABSTRACT

The cost estimation process for the downstream oil and gas industry in Indonesia by the company have not been effective and accurate. The purpose of this paper is to choose the appropriate best tested and proven standards and references in the cost estimating process. In the analysis, various standards are benchmarked against the GAO Cost Estimating & Assessment Guide. A scoring model developed using Multi-Attributes Decision Making (MADM) non-compensatory and compensatory method with GAO as the basis. The results found that GAO Cost Estimating & Assessment Guide is superior to the others. GAO can be adopted to prepare a credible and accurate cost estimate for the company. The company is recommended to improve its cost estimating method using the 80/20 rule and then re-assess against the GAO. The process is carried out continuously until management is satisfied with the results.

Key words:      Downstream Oil & Gas, Cost Estimate, Best-Tested and Proven in Cost Estimating, GAO Cost Estimating & Assessment Guide

INTRODUCTION

Data from AT Kearney (2017)[1], 6 out of 10 projects experienced over-budget and behind schedule, including 100 major global companies in the oil and gas, chemicals, metals and mining, and utility industries. Leading companies have measured and realized this underperformance. Then commitment to finding the best forms and methods for embedded best practices and disciplined execution for the success of the project. In addition, it also shows that 60% of capital projects experience a 10% cost and schedule overrun, and around 30% experience cost and schedule overrun up to 25%. Developing a credible cost estimate is challenging due to many factors. In downstream oil & gas, the cost estimates are out of range due to various reasons.

Figure 1 – Factors causing inaccuracy of estimates[2],[3]

In this paper, the author tried to build awareness to the owners about the best tested & proven practices which to be followed in developing cost estimates. There are many references available for cost estimating in that GAO Cost Estimating & Assessment Guide seems the best to compare the owner cost estimates with the best practices and adopt for the owner developing cost estimates. Ten projects have been selected for the assessment with the GAO Cost Estimating & Assessment Guide.

Good best practices should be followed if accurate and credible cost estimates are to be developed. By following the overall process of cost estimating stated in best practices such as established, repeatable methods, comprehensive, accurate, replicated and updated to produce accurate and credible estimates. In this paper, GAO’s were chosen as a reference for the selection of the best -practices that would be recommended for companies.

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How to cite this paper: Wisnugroho, J. (2020). Indonesia Oil & Gas Cost Estimating vs International “Best-Tested and Proven” Practices – A Benchmarking Study; PM World Journal, Vol. IX, Issue II, February. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/02/pmwj90-Feb2020-Wisnugroho-benchmarking-indonesia-og-cost-estimating-vs-international3.pdf

 


 

About the Author

 


Joko Visnugroho

Jakarta, Indonesia

 

 

 
Joko Wisnugroho is a project engineer with six years of professional experience in the oil and gas sectors. Currently, he works as an engineer at the national oil company of Indonesia. Several projects have been completed, such as fuel terminal, LPG terminal, pipeline, and other downstream projects. He holds a bachelor’s degree in Mechanical Engineering from Bandung Institute of Technology (ITB) and currently completing his master’s degree in project management at the University of Indonesia. He is attending a distance learning mentoring course, under the tutorage of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Certified Cost Professional certification from AACE International.

Joko lives in Jakarta, Indonesia and can be contacted at jokowisnu@me.com

 

[1] A T Kearney. (2017). Excellence in Capital Projects: A Goal Yet to be Achieved.

[2] RAND Corporation. (2011). Root Cause Analysis of Nunn-Mccurdy Breaches.

[3] Butts, G. (2010, February). Mega Projects Estimate – A History of Denial.

 

 

Extending specialist PM services

to a more generalist role in an organisational strategic context

 

FEATURED PAPER

By Alan Stretton, PhD (Hon)

Sydney, Australia

 


 

INTRODUCTION

In the last issue of this journal (Stretton 2020a) I discussed both specialist project management (PM) and more generalist project-related contributors to organisational strategic management. These discussions were represented in summary form as illustrated in Figure 1 below.


Figure 1: Summarised representation of both specialist and generalist PM-related involvement in organisational strategic management stages (based on Stretton 2020a: Figure 8)

The two main types of specialist PM services represented in Figure 1 are Execution-Delivery-only, which is exampled by traditional tendering processes in the construction industry, and “Management of Projects” (a descriptor adopted from Morris 2013), which adds the management of the front-end phases of the project life-cycle, as represented in Figure 1 by the project feasibility and definition phases.

The more generalist project-related contributors, which are represented by the example of many EPC (Engineering, Procurement & Construction) organisations, are shown in the top section of Figure 1. This mode is represented by three FEL (Front End Loading) stages, which are often preceded by a pre-FEL stage. The latter is broadly concerned with what was described as helping “shape” the client’s organisational strategic objectives. It also often overlaps FEL, which is specifically concerned with assisting clients in determining the “right” project(s) to help achieve their organisational strategic objectives.

There are two particular points of difference between these specialist and generalist project-related services. The first is that the latter specifically includes helping clients determine the “right” projects – i.e. those that will best contribute to achieving their strategic objectives. This seldom happens with specialist Management of Projects (MOP). Such lack of involvement in helping choose the “right” project(s) is a severe constraint on just how effective such specialist PM services can be in the broader context of helping organisations achieve their strategic objectives.

The second point of difference is that pre-FEL activities are particularly concerned with helping “shape” the organisational strategic objectives, an area in which specialist MOP does not normally get involved.

In this article I am returning to discussions in previous articles in this journal on how specialist PM services provided by my old employer, Civil & Civic (C&C), were expanded to essentially include both of the above generalist attributes. However, this coverage will give more attention to a governance and participatory vehicle we introduced, which, amongst other benefits, greatly facilitated the expansion of these services. This vehicle was called a Project Control Group (PCG), which was originally introduced in relation to our design-and-construct services. We first discuss Civil & Civic’s move into the latter, then the nature of PCGs, and then the expansion of C&C’s services into the more generalised types of services, how PCGs facilitated this expansion, and broader possibilities for PCGs to help bridge some existing gaps between project management and general management.

FROM CONSTRUCTION ONLY, TO DESIGN-AND-CONSTRUCT

In an earlier article in this journal on expanding the scope of project management services in the construction industry (Stretton 2019c), I discussed how Civil & Civic got started In the building and construction industries in Australia in the early 1950s with “traditional” tendering, which I described in Stretton 2020a as the project execution-delivery specialisation. I then noted the concerns of the CEO of Civil & Civic, G. J. Dusseldorp, about how the counterproductive separation of design from construction denied clients the benefit of practical construction advice in the design planning stage; and the flawed financial incentive structure of the time, which encouraged architects to design edifices and prompted contractors to cut costs in any way they could – neither of which necessarily served the best interests of the client. As noted in Murphy 1984:7

He [Dusseldorp] came to realise that the important cost-savings on any building project are to be made on the drawing board, and set out to promote the concept on which the present day organisation has been built: the acceptance of undivided responsibility for any project from start to finish.

From the mid-to-late 1959s, Civil & Civic (C&C) appointed its own “project engineers” (i.e. project managers) to manage the design phases of all its own development projects, as well as quality control of construction.

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How to cite this paper: Stretton, A. (2020). Extending specialist PM services to a more generalist role in an organisational strategic context; PM World Journal, Volume IX, Issue II, February. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj90-Feb2020-Stretton-extending-specialist-PM-services.pdf

 


 

About the Author

 


Alan Stretton, PhD     
Faculty Corps, University of Management
and Technology, Arlington, VA (USA)
Life Fellow, AIPM (Australia)

 

 

Alan Stretton is one of the pioneers of modern project management.  He is currently a member of the Faculty Corps for the University of Management & Technology (UMT), USA.  In 2006 he retired from a position as Adjunct Professor of Project Management in the Faculty of Design, Architecture and Building at the University of Technology, Sydney (UTS), Australia, which he joined in 1988 to develop and deliver a Master of Project Management program.   Prior to joining UTS, Mr. Stretton worked in the building and construction industries in Australia, New Zealand and the USA for some 38 years, which included the project management of construction, R&D, introduction of information and control systems, internal management education programs and organizational change projects.  He has degrees in Civil Engineering (BE, Tasmania) and Mathematics (MA, Oxford), and an honorary PhD in strategy, programme and project management (ESC, Lille, France).  Alan was Chairman of the Standards (PMBOK) Committee of the Project Management Institute (PMI®) from late 1989 to early 1992.  He held a similar position with the Australian Institute of Project Management (AIPM), and was elected a Life Fellow of AIPM in 1996.  He was a member of the Core Working Group in the development of the Australian National Competency Standards for Project Management.  He has published over 200 professional articles and papers.  Alan can be contacted at alanailene@bigpond.com.au.

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

 

 

 

Strategies for Reduction of Design-Related Rework

in the Nigerian Construction Industry

 

FEATURED PAPER

By Comfort Salihu and Sunday Ajiboye Babarinde[1]

Dollahills Research Lab, Dollasoft Technologies,

Lagos, Nigeria

 


 

ABSTRACT

Rework remains a major basis of concern in the construction industry due to its attendant cost implication on construction projects. Eliminating occurrence of reworks on projects has proven to be a herculean task, professionals are hence concerned with taking giant strides in bringing its probability of occurrence to the barest minimum. In forestalling reworks on construction projects, the design stage holds a vital position. This research study was aimed at evaluating how reductions in design related rework can be achieved. A well-structured questionnaire was administered to seek out primary data, while secondary data was sourced through reviewed literature. Information obtained from these sources was collated, analysed and presented using descriptive method of statistics (tables and chats), relative important index (RII) and correlation analysis. The findings of this study expounded that design related rework had the highest frequency of occurrence with an RII of 0.74 based on the respondents’ perception among other nature of rework. Majority of construction firms resorted to an improved use of computer aided design/engineering technologies as a means of achieving reductions in rework construction projects. This study hence recommends the implementation of a multidisciplinary design team provided with a detailed client brief during the design stage to ensure reductions in the rate of errors, omission and ambiguity. Construction clients should be properly enlightened and advised on the cost implications of frequented changes in construction scope and details which habitually results in rework.

Keywords: Rework, Design Error, Reduction

INTRODUCTION

The occurrence of rework has been noted to have recorded increased level of occurrence in recent times, this is believed to have resulted to acute reduction in the quality of project performance. Construction Industry Institute (CII, 2001), defined rework as an activity that has to be carried out more than once or activities that involves removal of previously completed that has been previously fitted as part of a project work and redoing such.  Also, this denotes unjustified labour engaged in repeating such an element of work, process and activity that wasn’t well carried out the first time (Love and Li, 2000). Towards achieving improvements in project’s cost and schedule performance, several companies have adopted the speed up approach, where there is an overlap of both the design and the construction phase (Pena-mora and Li, 2001).  This overlap in stages enables the contractor to commence the construction phase with a possibly flawed or defected plans laden with undiscovered errors. Non-detection of the possibility of a rework occurrence that remains undetected during the design stage can result to substantial rework occurrence during the construction stage. In the annihilation of reworks on construction projects, architects are saddled with a vital role in the design process towards the elimination of deficiency or errors in the inception phase which might eventually lead to an abnormality during the construction phase (Oyedele and Tham, 2007).

Love et al (2010), argued that the longer an error stays undetected the more the possibility of a rework occurrence which might have significant adverse effects on the project’s cost and schedules. They also postulated that quiet a number of circumstances that triggers error provoking activities takes place downstream during the construction stage. Furthermore, Love (2002a), discovered that the obscure cost of rework might be as much as five times the cost of rectification. In order to achieve improvements in projects’ performance and productivity level, urgent action is essential on the reduction of rework occurrence and its consequential additional cost (Love, 2002).

Design error represents deviations from drawings or specifications, this also covers omissions and ambiguities.  Mryyan and Tzortzopoulos (2013), harangued about the origin of design errors and gave their classification as errors attributed to: client’s actions, non-adherence to building regulations and building codes, inadequacy of details in drawing and/or mis-interpretation of drawings. Love and Li (2000), has been noted to make substantial out that rework can make a large input to increased project cost.

THE NIGERIAN CONSTRUCTION INDUSTRY

Major upsurge in demand for real estate housing and infrastructural amenities and support for the increasing population size can be attributed as the cause of the rapid growth of the Nigerian construction industry. The key actors in the industry includes the architects, engineers, quantity surveyors, management consultant, general contractors, heavy engineering contractors, subcontractors, construction personnel together with the owners, workers and clients of the constructed facilities.

The public sector is the major source of project finance, resulting in major boosts in the development and growth in the construction industry in Nigeria. Construction Industry as common with most developing nations around the world is still clogged with a lot of innate challenges ranging from poor technical and managerial experience to deficient financial, material and equipment capital base (Ofori, 2001). Nevertheless, the industry has other diverse inherent capabilities such as its independence in cement manufacturing which has made the construction material relatively affordable and available in the material sector (International Council for Building (CIB), 2004; Oluwakiyesi, 2011). The use of sophisticated machinery, plants and software has substituted the high rate of dependence on manual labour and tools this has increased the efficiency and effectiveness of the industry and has aid quick completion and delivery of projects within the stipulated contract period.

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How to cite this paper: Salihu, C., Babarinde, S.A. (2020). Strategies for Reduction of Design-Related Rework in the Nigerian Construction Industry; PM World Journal, Vol. IX, Issue II, February. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj90-Feb2020-Salihu-Babarinde-strategies-for-reduction-of-design-related-rework2.pdf

 


 

About the Authors

 


Comfort Salihu
Federal University of Technology,
Minna, Niger State, Nigeria.

 

Comfort Salihu is a Facility Supervisor, Quantity Surveyor and Researcher. She graduated from the Federal University of Technology Minna with a Bachelor of Technology Degree in Quantity Surveying (First Class Honors) in 2017. She has also obtained professional certifications in Health Safety and Environment (HSE 123) and Project Management. She is passionate about construction cost optimization in the construction industry in Nigeria and Africa. She currently works at AGE Facility and Energy Management Services Limited as a facility Supervisor. Her research interests are in the area of Rework, Modular Construction, Construction Safety and Construction waste. Comfort Salihu can be contacted on salihucomfort@gmail.com

 

 


Sunday Ajiboye Babarinde
Federal University of Technology,
Minna, Niger State, Nigeria.

 

Sunday Ajiboye Babarinde is a resourceful Quantity surveyor and researcher. He attended Federal University of Technology, Minna where he studied Bachelor of Technology in Quantity surveying and graduated in 2017. He possesses certifications in Project Management and Facility Management from Global Institute of Project Management and also a certification in Quality Control and Assurance. He has great passion for the implementation of innovative technology towards advancing the Nigerian and African Construction Industry with a view at fostering quality and cost-efficient construction. He works with Brainsworth Nigeria Ltd. in the capacity of a quantity surveyor. His research interests are on building information modelling, risk management, lean construction, and IT applications to construction. Sunday can be contacted on spenpe196@gmail.com.

[1] Corresponding author – ajiboye196@gmail.com

 

 

Using Cost Indices

to Develop Project Cost Estimation for Oil & Gas Industry in Indonesia

 

FEATURED PAPER

By Arief Rachman

Jakarta, Indonesia

 


 

ABSTRACT

Managing projects that are operating in disrupted and rapidly changing landscapes requires maturity for achieving the project’s objectives. In order to be mature in planning and financial forecasting, the biggest concern is accurate estimating of anticipated costs before committing to the project. Projects are moving so fast, and they have limited time to develop the scope and accurately estimate costs.

Due to the requirements of end-use, we need methods or tools that can help to develop cost estimates easily and quickly. To seek the method or tool for solving the problem, the alternatives are selected and be assessed to define the project cost estimation from the other project in another location or the previous project.

Key words:  Cost Indices, Cost Index, City Cost Index, Construction Cost Indices, Construction Cost Index, Project Cost Estimation, Project Cost Index, Project Cost Calculation

INTRODUCTION

In 2019, the synergy of the International Project Management Association (IPMA), Australian Institute of Project Management (AIPM) and Klynveld Peat Marwick Goerdeler (KPMG) undertook the research survey to identify and highlight the challenges of project management. With respondents with nearly 500 companies from 57 countries around the world, the research survey result states that organizations globally continue to find it difficult to deliver projects that meet all objectives around the triangle of time, cost, and scope, along with achieving stakeholder satisfaction. From the survey results, 44% of organizations are likely to deliver projects that meet original goal and business intent, 30% of organizations are likely to deliver projects that are on time, and 36% of organizations are likely to deliver projects that are on a budget. The data indicates that over half of the projects are failed and not give the original goal of the project.

Managing projects that operate in disrupted and rapidly changing conditions requires maturity to achieve project goals. We require maturity in planning and financial forecasting, maturity in hiring, and developing the right talent, maturity in ongoing risk and project management. We also require maturity in contingency management and maturity to build a positive and productive working relationship between project owners and contractors that bring out the best in all parties. Lack of one of the maturity level will cause the project to fail to achieve the goals.

Maturity in planning and financial forecasting, the biggest concern is accurate estimating of anticipated costs before committing to the project. Projects are moving so fast, and they have limited time to develop the scope and accurately estimate costs.

Cost estimating is the forecast power to quantify the cost and price of the resources needed for the magnitude of the scope of investment options, activities, or projects. The goal of cost estimating is to minimize the uncertainty of the estimate given the level and quality of scope definition. The outcome of cost estimating includes both an expected cost and a probabilistic cost distribution.

Generally, the implementation cost estimating process during each phase of the project life cycle as the project scope is defined. At the beginning of the project where the scope definition is rough, the accuracy of the cost estimating is low. The preparation of these cost estimates is used for many strategic business planning purposes, such as market studies, initial feasibility assessments, evaluation of alternative schemes. Besides that, for project screening, project location studies, evaluation of resource needs and budgeting, long-range capital planning, etc.

When the project definition moves to a more detail phase, we need cost estimation with higher accuracy. To prepare the most detailed (Class 1) cost estimate to develop an estimation control system that is used as a final control baseline that monitors all current costs and current resources against variations in costs and parts of changes. The estimated cost can be used to evaluate bid proposals, to support vendor/contractor negotiations, or to evaluate claims and resolve disputes. Typically, it consists of engineering progress from 50% to 100% has completed, and will be complemented by all project engineering and design documentation, and virtually the completion of project implementation and commissioning plans.

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How to cite this paper: Rachman, A. (2020). Using Cost Indices to Develop Project Cost Estimation for Oil & Gas Industry in Indonesia; PM World Journal, Vol. IX, Issue II, February.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj90-Feb2020-Rachman-using-cost-indices-for-og-cost-estimation.pdf

 


 

About the Author

 


Arief Rachman

Jakarta, Indonesia

 

 

Arief Rachman is a surface facilities specialist with more than twenty seven years of professional experience in the upstream oil and gas sectors. Currently, he works at the national oil company of Indonesia. His experience in surface facilities maintenance management and upstream projects, such as oil and gas gathering stations, gas sweetening plants, oil and gas pipelines, power plants, electrical transmission and distribution networks, and others upstream projects. He holds a bachelor’s degree in Electrical Engineering from Sepuluh Nopember Institute of Technology (ITS) and completing master’s degree in Gas Management at the University of Indonesia. He is attending a distance learning mentoring course, under the tutorage of Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Certified Cost Professional certification from AACE International.

Arief lives in Jakarta-Indonesia and can be contacted at arief.rachman.sby@gmail.com

 

 

The Centrality of People in Modern Project Management:

Issues, Competences, and Feelings from PM Community

 

FEATURED PAPER

By Massimo Pirozzi and Marco Sampietro

Rome and Milan, Italy

 


 

ABSTRACT

This paper focuses on the centrality of people in modern project management, on the consequent importance of their relationships, on the relevant competences that are needed, and on corresponding feelings that project management community has. The evolution of these concepts, their acknowledgment and their applications in current international standards, including relevant reference texts and policies in terms of certification examinations, definitively highlight the crucial role that people-related issues have in order to reach projects’ efficacy, efficiency, and, ultimately, success. The results of a specific research that has been realized by SDA Bocconi (Sampietro et al, 2019) are a key part of this paper, and, on one side, do confirm the major importance that relationships have in the perception of project management community, while, on the other side, do show in detail the feelings – in some cases the concerns too – of PM professionals about the relevant competences that are needed.

PEOPLE-RELATED ISSUES IN MODERN PROJECT MANAGEMENT

Projects are made by people to be delivered to other people; this statement confirms very clearly people’s centrality in all projects, since stakeholders are both the doers and the beneficiaries of each project, and, then, they have a primary role of actors, and not just a subordinate role of participants. In general, stakeholders influence the projects through their behaviors, i.e. their relationships, and their impacts are evidently different whether they act as doers, or as beneficiaries, of project results; however, in both cases, their impact is higher the greater complexity of the project becomes.

In the domain of complex projects (Pirozzi, 2019), projects are large, and/or highly innovative, and/or means to achieve the customers’ business goals, and/or projects’ results are service-oriented and/or intangible (e.g. in software projects), and/or stakeholder requirements are not well-defined and/or are evolutionary, and/or not all stakeholders cooperate effectively; all these projects are essentially value-driven, rather than plan-driven as traditional complicated projects are, and relationships with stakeholders are primary, since the stakeholder satisfaction is their critical success factor.

Therefore, which relational competences are needed? In the stakeholder perspective (Pirozzi, 2019) of doers, a relational issue that is of extraordinary importance is teamwork, since it is not only the major factor for creating value, but it is also the major factor of destruction and removal of endogenous complexity, so generating a huge regaining and/or increase of productivity in the project; main relevant groups of competences as leadership, teaming, conflict management, negotiation are then necessary. On the other side, in the stakeholder perspective of beneficiaries, the group of competences that are of major importance are those relevant to both stakeholder relations, and communication, management, since they are the most appropriate to target and monitor stakeholder satisfaction, which is the critical success factor in projects of all size and complexity.

Table 1.  Last PM References and Groups of Relational Competences

Do International Standards and Best Practices recognize the essential role of relational issues in modern project management? Nowadays, fortunately, the answer is positive – in some cases, after a complex journey that took decades, although there is for sure still a long path to follow in the direction of reaching better results in achieving project goals by satisfying properly stakeholder expectations (Pirozzi, 2019). In Table 1, there is a synthetic map between some of last references in Project Management and groups of relational competences.

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How to cite this paper: Pirozzi, M., Sampietro, M. (2020). The Centrality of People in Modern Project Management: Issues, Competences, and Feelings from PM Community; PM World Journal, Vol. IX, Issue II, February.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj90-Feb2020-Pirozzi-Sampietro-centrality-of-people-in-modern-project-management.pdf

 


 

About the Authors

 


Massimo Pirozzi

Rome, Italy

 

 

Massimo Pirozzi, MSc cum laude, Electronic Engineering, University of Rome “La Sapienza”, Principal Consultant, Project Manager, and Educator. He is a Member and the Secretary of the Executive Board, a Member of the Scientific Committee, and an Accredited Master Teacher, of the Istituto Italiano di Project Management (Italian Institute of Project Management), and he is a Senior Examiner for Certifications in Project Management, and for Professional Project Managers, too. He is Certified as a Professional Project Manager, as an Information Security Management Systems Lead Auditor, and as an International Mediator. He is a Researcher, a Lecturer, and an Author about Stakeholder Management, Relationship Management, and Complex Projects Management; in particular, he is the Author of the Book “The Stakeholder Perspective: Relationship Management to enhance Project value and Success”, CRC Press, Taylor & Francis Group, October 2019.  He has a wide experience in managing large and complex projects in national and international contexts, and in managing relations with public and private organizations, including multinational companies, small and medium-sized enterprises, research institutes, and non-profit organizations. He worked successfully in several sectors, including Defense, Security, Health, Education, Cultural Heritage, Transport, Gaming, and Services to Citizens. He was also, for many years, a Top Manager in ICT Industry, and an Adjunct Professor in Organizational Psychology. He is registered as an Expert both of the European Commission, and of Italian Public Administrations.

Massimo Pirozzi serves as an International Correspondent in Italy for the PM World Journal. He received the 2018 PM World Journal Editor’s Choice Award for his featured paper “The Stakeholder Management Perspective to Increase the Success Rate of Complex Projects”.

E-mail: max.pirozzi@gmail.com

To view other works by Massimo Pirozzi, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/massimo-pirozzi/

 

 


Marco Sampietro

Milan, Italy

 

 

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

He is Associate Professor of Practice at SDA Bocconi School of Management and Director of the EMBA China. He is Faculty Member at the SDA Bocconi Asia Center, the Indian subsidiary of SDA Bocconi School of Management.

Since 2001, he has been Adjunct Professor at Bocconi University where he teaches Project Management and Project and Team Management. He is also Adjunct Professor at the Milano Fashion Institute and he had been Visiting Professor at the University of Queensland, at the International Hellenic University and at the Anton de Kom University.

He had been member of the Steering Committee of IPMA-Italy.

He is co-author and/or editor of 12 books on project management.

Finally, he is author of internationally published articles and award winning case studies. Dr. Sampietro can be contacted at marco.sampietro@sdabocconi.it 

To view other works by Prof Sampietro, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/marco-sampietro/

 

 

BIM Practice: Training and Education

of Nigerian Quantity Surveyors in Preparation for BIM Adoption

 

FEATURED PAPER

By Adetayo Olugbenga ONOSOSEN

Department of Quantity Surveying,
University of Lagos
Lagos, Nigeria

 and

Modupeoluwa Olajumoke ADEYEMO

Department of Quantity Surveying,
Federal University of Technology
Akure, Nigeria

 


 

ABSTRACT

The disruptive nature of newly evolving innovations in the construction industry is largely unstoppable and would become inevitable with time. Though developed economies have taken proactive measures to ensure their industry is not relegated in the face of emerging technologies, there does not seem to be anything short of a reactive measure from the stakeholders of the Nigerian construction industry. Previous authors had proposed diverse solutions which include training and Education. However, there has been no in-depth analysis of the curriculum requirements of recent graduates from our institutions to provide the needed BIM technical know-how. The course contents of academic curricula of higher institutions offering quantity surveying at undergraduate level was examined to gauge the availability of training on BIM usage and practice. The study revealed that BIM training is non-existent in all the institutions of learning in Nigeria with just a University offering an introductory course. It is recommended that Nigerian AEC professional bodies and the academia actively engage in providing the basic training for BIM learning in the face of reluctant government support. This could be achieved through an introductory BIM course and stand-alone teaching modules for integration into a variety of core courses in the Nigerian built environment curricula.

Keywords: Adoption BIM, Education, Quantity Surveyors, Training,

INTRODUCTION

BIM has been described as a set of policies and processes which are being enhanced by emerging technologies in producing newly improved construction methods and processes (Hamma-Adama & Kouider, 2018). While Nigerian stakeholders, are yet to fully grasp, adopt and utilize the innovations attributed to BIM, Hamma-Adama and Kouider (2018) opine that BIM has gone beyond a concept for building design and construction in advanced economies and has fully being integrated into large scale infrastructural design and construction processes. According to Opoko, Sholanke, Joel, Ciafas, Fakorede and Oyeyemi (2019) BIM started in the 1970s in Georgia Institute of Technology where the idea was developed and became generally accepted in design and construction management. With the introduction of “Building Information Modelling (Autodesk, 2013), BIM gained in popularity and global awareness and has since moved to achieving significant output in construction processes (Opoko et al, 2019).

BIM is highly imperative to the construction industry by contributing integrated project delivery (see Opoko et al 2019), collaborative work and good teamwork (Rokooei, 2017); proper and enhanced process scheduling (Malacarne, Giovanni, Carmen, Michael & Dominik, 2018). As stated by Hamma-Adama, and Kouider (2018), Education and research are the bedrock of innovation and to achieve skills transfer, training is inevitable. This puts education and training at the forefront in developing policies, processes and technical know-how for BIM impplementation and adoption.

LITERATURE REVIEW

BIM, Building Information Modeling has been regarded as ever evolving in meaning and interpretations due to its inherent nature of reinventing processes and workflows (RICS, 2014). However, some attempts to define BIM states that it involves the “digital representation of physical and functional characteristics of a facility creating a shared knowledge resource for information about it forming a reliable basis for decisions during its life cycle, from earliest conception to demolition” (BIM Hub, 2014). While there have been mis-matched comparisons of BIM with software such as Revit, it is much more than a software but a concept that has been embedded in the development of BIM-based applications (Bashir, 2018; Makarfi & Abdullahi, 2016). Karen (2014) described “BIM as an integrated, structured digital database, informed by the architecture, engineering, and construction operations industry that consist of 3D parametric objects and allow for interoperability”. While Azhar, Khalfan and Maqsood, (2012) opines that “BIM is an improved process and tool, which contains a set of virtual aspects, concepts and systems of a facility within one environment”.  BIM provides myriads of solution to the industry’s problems of integrating construction processes and methods, addressing construction project development challenges achieving maximum productivity (Mohammed & Ahmad, 2017). BIM is not limited to just BIM-based softwares but has various layers of dimensions from 3D to nD – which involves dimensions such as 3D-visualization, 4D-scheduling, 5Destimation, 6D-facility management applications, and 7D-sustainability (Badrinath, Chang, & Hsieh, 2016).

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How to cite this paper: Onososen A.O. and Adeyemo, M.O. (2020). BIM Practice: Training and Education of Nigerian Quantity Surveyors in Preparation for BIM Adoption; PM World Journal, Vol. IX, Issue II, February.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj90-Feb2020-Onososen-Adeyemo-bim-training-and-education-of-nigerian-quantity-surveyors.pdf

 


 

About the Authors

 


Adetayo Olugbenga ONOSOSEN

Akure, Ondo State, Nigeria

 

 

Adetayo Onososen is a research-driven, highly dependable, diligent and innovative graduate of Quantity surveying from the Federal University of Technology Akure, Ondo State, Nigeria. He also has a Master of Science in Quantity Surveying from the University of Lagos.  He has a strong bias for excellence, execution and exemplary work ethic. He is highly analytical with industry-based experience in construction management/cost control and project management. He is skilled in conducting qualitative and quantitative field research in environmental sciences/ technology in construction and sustainable/green buildings. He possesses effective communication and writing skills, strategic leadership, teamwork and dynamic people management skills. Over the years he has garnered keen interests in technology in construction, green buildings and research in the environmental science. He works as a practising quantity surveyor in a firm where a mix of entrepreneurial drive and extreme ownership mindset is encouraged where he is leveraging skills to contribute own quota to overall organization growth.

Adetayo can be contacted on Onososen@gmail.com or Onososen@outlook.com

 


Modupeoluwa Olajumoke ADEYEMO

Lagos, Nigeria

 

 

Modupeoluwa Olajumoke Adeyemo is a Proactive, analytical and research-oriented graduate of Quantity surveying from the prestigious Federal University of Technology Akure. Her devotion to excellence and never-ending self-improvement is a testament to her graduating with first class honours from the 2017/2018 Academic set of FUTA. Her strong and unwavering dedication to academic excellence is exemplary in the varied scholarship she has being awarded across board. She is strongly passionate about BIM in construction, CSR in construction and sustainable building solutions to the challenges confronting the Nigerian Construction Industry. She is currently serving in the mandatory national youth service as a Quantity surveyor with Arbico Plc where she contributes her immense wealth of experience in construction management and administration. Her research interests are diverse but majorly based on disruptive innovation, CSR in construction, Internet of things (IOT), BIM in construction and sustainable construction.

Modupeoluwa can be contacted at Adeyemodupe123@gmail.com

 

 

An Insight into Financial Inclusion

of the Informal Sector in Masvingo, Zimbabwe

 

FEATURED PAPER

By Dauglas Halimani, Tariro Mavaza, Farai Don Dzapasi

Department of Banking and Finance
Great Zimbabwe University

Masvingo, Zimbabwe

 


 

ABSTRACT

The purpose of the research was to explore the level of Financial Inclusion among the informal sector section of the population of Masvingo and the reasons behind An exploratory research design was used to achieve the envisaged aims of the study. Overall, the results showed that the majority of the informal sector in Masvingo remains largely financially excluded. The main reasons they cited was low income to save as a result of harsh economic environment that exist in the country and lack of confidence on the formal banking system. The banks on their part cited high cost of doing business for them to effectively mobilise financial inclusion.  The implications of the study are that the Government of Zimbabwe should vigorously promote economic stability and restore public confidence in the banking sector before Financial Inclusion can be finally achieved

Keywords: Financial Inclusion    Mobile Banking   Financial Literacy

 INTRODUCTION

From numerous studies previously carried out, it has been established that economic growth and development is difficult to achieve if a large portion of the population is wallowing in poverty. According to Kunt and Klapper (2012),  well – functioning financial systems serve a vital purpose, offering savings, payment to people with a range of needs and more inclusive financial systems – allowing broad access to appropriate financial services are likely to benefit poor and other disadvantaged groups. Financial Inclusion has had many definitions from different scholars. Thorat (2006) offers that financial inclusion implies providing affordable financial services such as access to payments and remittances facilities, savings, loans and insurance services by the formal financial systems to those who tend to be marginalised. Empirical evidence confirms that countries with a large section of their population that is not financially included tend to have higher poverty ratios and inequality. The results of such imbalances include high crime rates and a potential source of social unrest. (Sharit 2013). Financial Inclusion will raise capacity for investment and develop savings and entrepreneurial abilities within the population which often lead to higher incomes and consequently better lives (Chakrabaty 2009)

Overview of Banking in Zimbabwe

Presently, the financial sector comprises the Reserve Bank of Zimbabwe (RBZ) at the apex, discount houses, commercial banks, merchant banks, finance houses, building societies, the People’s Own Savings Bank (POSB), insurance companies, pension funds, venture capital companies, asset management companies, developmental financial institutions, the Zimbabwe Stock Exchange, microfinance institutions and  money transfer agencies (that intermediate remittances). As at the end of 2018 there were 28 banking institutions (down from 32 as at 31December 2003), 17 asset management companies and 75 operating microfinance institutions (see Table 1). What is clear from Table 1 is that the instruments of financial inclusion, namely microfinance institutions, have suffered the brunt of macroeconomic instability.

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How to cite this paper: Mavaza, T.; Halimani, D.; Dzapasi, F. (2020). An Insight into Financial Inclusion of the Informal Sector in Masvingo, Zimbabwe; PM World Journal, Vol. IX, Issue II, February.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj90-Feb2020-Mavaza-Halimani-Dzapasi-financial-inclusion-of-informal-sector-in-zimbabwe.pdf

 


 

About the Authors


Tariro Mavaza

Great Zimbabwe University
Masvingo, Zimbabwe

 

Tariro Mavaza is a Lecturer in the Munhumutapa School of Commerce, Department of Banking and Finance, the Great Zimbabwe University.  He previously worked for Zimbabwe Revenue Authority as a Revenue Official. His areas of research are: Financial markets, Revenue Collection Systems I, Corporate Governance, Quality Management Systems and Project Management. He has published three research papers in International and Regional Journals on Total Quality Management and Corporate governance. Email address: tmavaza@gzu.ac.zw

 


Dauglas Halimani

Great Zimbabwe University
Masvingo, Zimbabwe

 

Dauglas Halimani is 36 years old and a lecturer at Great Zimbabwe University since 2014. He holds a master’s degree in Banking and Financial Services from National University of Science and Technology as well as Bachelor of Commerce Honours in Finance from Great Zimbabwe University. He is a final year Bachelor of Laws student with the University of South Africa. His interests span the areas of commerce and law.  He can be contacted dhalimani@gzu.ac.zw

 


Farai Dzapasi

Great Zimbabwe University
Masvingo, Zimbabwe

 

Farai Dzapasi is a lecturer in the Department of Banking and Finance at the Great Zimbabwe University. He holds a Bachelor of Commerce Honours in Finance and Master of Commerce in Finance from Great Zimbabwe University.

 

 

How to develop a MODEL

Standard Operating Procedure (SOP) for Scheduling

 

FEATURED PAPER

By Tijo Kurien

India and Libya

 


 

ABSTRACT

An effective Standard Operating Procedure (SOP) for scheduling practices shows the procedures which are accepted and actually followed for schedule development related to Owner organizations and Contractors. In this paper, the author described scheduling practices from the tender stage to Asset realization, which involves Owner organizations’ and contractors’ procedures. The SOP shows the step by step procedures to develop a schedule and its associated areas. In this paper, how the contract department deals with scheduling practices initially then how the contractors develop Performance Measurement Baseline (PMB) for the comparison of actuals progress. Subsequently, the process flow from the Owner PMO department roles to Owner Finance Department until the Asset realization and start depreciation of Asset. By following the effective SOPs, the errors in the process can reduce and improve the productivity of the organizations.

Keywords: Standard operating procedure (SOP), Scheduling, procedures

INTRODUCTION

Very few people use SOPs for routine tasks. Why? This is quite an interesting question, and there are many reasons for it. Some reasons are the SOP may be written badly, the process is cumbersome, It may be difficult to locate the right procedure, it may be out of date, lack of awareness that SOP exists in the company , people may rely on their skills and experience rather than rely on SOPs, and so on. Six “Sigma studies suggest the bottom-line impact of failing to use effective SOPs can range from 15-30% of the total operational cost of the business, and expose the organization and its management to significant reputational risk, penalties (particularly safety and environmental) and the cost of lost opportunity”[1]. From facts, it is important to develop effective SOPs and ensure that the right process performers apply new SOPs in the right way.

To systemize the business documenting routine tasks and activities can be a complete nightmare. In many companies, there should not be documentation on practice to perform any task. Experts in the company can do their work without reviewing the documents and but in the case of a new employee to an industry may not know the procedures to do the work. During these cases, it is important to have step by step procedures has documented to execute the particular task with step by step information. So its works as guidelines for the performer to execute the task. Standard Operating Procedure (SOP) is a step by step procedure to execute a particular task or series of tasks. “Standard operating procedure (SOP), also called standing operating procedure, set of written guidelines or instructions for the completion of a routine task, designed to increase performance, improve efficiency, and ensure quality through systemic homogenization.”[2] “Written procedure prescribed for repetitive use as a practice, in accordance with agreed-upon specifications aimed at obtaining a desired outcome.”[3] “A Standard Operating Procedure (SOP) is a set of written instructions that document a routine or repetitive activity followed by an organization.”[4] The term was first used in the mid-20th century. Initially, an SOP used by army based publications and later on it is modified and start used for private operational purposes. An SOP is a procedure specific to an operation that describes the activities necessary to complete tasks following industry regulations, provincial laws, or even just your standards for running your business. SOP lists all the tasks essential to carried out to attain the desired result, and it also mentioned how to do these tasks and who is responsible for the tasks listed.

“SOPs are utilized in various contexts by a vast array of entities, including those in the areas of business, education, government, health care, industry, and the military. Although categorical variations are inevitable, all SOPs have in common the systematization of the individual steps performed in the implementation of a repetitive task to create an overall quality system. SOPs first identify and summarize a task, describe its purpose, and specify when and by whom it is to be performed while simultaneously defining uncommon or specialized terms and addressing potential concerns (e.g., necessary equipment or supplies, health, and safety cautions, etc.). They then describe the sequential procedures to be followed, often utilizing activity checklists and graphic illustrations (e.g., charts, tables, photographs, diagrams, etc.) to help ensure that the procedures are being performed accurately and in order.

SOPs can also provide many other benefits, such as minimizing the chance of miscommunication, affording comparability, and ensuring regulatory compliance. However, they must be periodically assessed and modified to maintain the currency, thus enabling them to improve final results further. The disadvantages of SOPs include excessive paperwork and a reduction in workplace individuality.”[5]

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How to cite this paper: Kurien, T. (2020). How to develop a MODEL Standard Operating Procedure (SOP) for Scheduling; PM World Journal, Vol. IX, Issue II, February.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/02/pmwj90-Feb2020-Kurien-model-standard-operating-procedure-for-scheduling2.pdf

 


 

About the Author


Tijo Kurien

India & Libya

 

 

Tijo Kurien is a project management professional with over 14 years of experience in upstream and downstream oil and gas projects. He is currently working as a Senior Project Engineer at Waha Oil Company in Libya. He previously worked with Samsung Engineering Co. Ltd, Bilfinger Berger Germany, as Project Control Engineer in various oil and gas projects. He holds a Degree in Mechanical Engineering from MG University, Kottayam and Diploma in Mechanical Engineering from DOTE, Tamil Nadu, India. He is a certified Project Management Professional (PMP) from PMI, USA. He is pursuing MSc in Project Management from University of Salford, Manchester, UK and   some other project management/project control credentials from AACE, Guild of Project Controls, and PMI under the tutorage of Dr.Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragaha. Tijo Kurien can be contacted at tijokurien007@gmail.com .

 

[1] Mosaic Projects. (2012, October 22). The value of Standard Operating Procedures. Retrieved from https://mosaicprojects.com.au/WhitePapers/WP1086_Standard_Operating_Procedures.pdf

[2] Encyclopedia Britannica. (n.d.). Standard operating procedure. Retrieved from https://www.britannica.com/topic/standard-operating-procedure

[3] Business Dictionary. (n.d.). Good one to know! Retrieved from http://www.businessdictionary.com/definition/standard-operating-procedure-SOP.html

[4]  US Environmental Protection Agency. (n.d.). Guidance for Preparing Standard Operating Procedures (SOPs). Retrieved from https://www.epa.gov/sites/production/files/2015-06/documents/g6-final.pdf

[5]  Encyclopedia Britannica. (n.d.). Standard operating procedure. Retrieved from https://www.britannica.com/topic/standard-operating-procedure

 

Agent Banking Model

as a Driver of Financial Inclusion in Zimbabwe

 

FEATURED PAPER

Tariro Mavaza, Dauglas Halimani and Farai Dzapasi

Department of Banking and Finance
School of Commerce
Great Zimbabwe University

Masvingo, Zimbabwe

 


 

ABSTRACT

Agency banking has become one of the key drivers in providing financial services to the poor and marginalized section of the society. Agency banking involves financial   institutions using existing retail outlets to extend their services to the financially excluded population. The degree to which the agency banking model can be used as an instrument of promoting financial services remains a subject of debate. The purpose of this study was to explore a possible positive link between Agency banking and Financial Inclusion. An exploratory research design was used in the study given the problem at hand. To reach the intended goal, the researcher looked at other issues that are around the Zimbabwean financial sector such as the drivers of agency banking, its adoption and also part in promoting financial inclusion. The study sums up that agency banking influences financial inclusion in Zimbabwe and specifically Masvingo. The implication of the study is that banks in Zimbabwe should vigorously promote adoption of agency banking model to reach their far and wide customers at minimum cost thereby boosting their performance.

Keywords:  Agency banking, Financial Inclusion, Zimbabwe

 

1.0  INTRODUCTION

Developing countries including Zimbabwe are increasingly embracing branchless banking as a means of delivering banking services to many unreached people especially low-income households. Agency banking model hoped to enhance access to financial services by allowing small businesses to operate as satellite bank branches.  According to the Reserve Bank of Zimbabwe report of 2016 on Financial Access Survey, 39 % Zimbabwe‟s bankable population is still totally out of the financial service orbit. Agent-banking is an arrangement by which licensed institutions engage third parties to offer certain banking services on their behalf. An Agency bank can offer a number of services on behalf of its principal bank such as card-based withdrawals, internal transfers, bill payments, balance inquiries and provision of mini statements. There are a number of reasons why Agency Banking model can be adopted by a bank such as expanding geographic coverage, decongesting branches, targeting new customers, technological advancement and heeding moral suasion of regulators.  Banking agents can be pharmacies, supermarkets, convenience stores, lottery outlets, post offices, and many more.

Today, practically every automobile dealer has a tie-up with a bank or consumer finance institution to provide vehicle loans to their car buyers (www.infosys.com.finacle). In this arrangement the car buyer is able to quickly access financing of the car purchase and avoids the cost and delays of securing a loan through branch banking and the agent (financing partner) has access to a more captive market.

According to Ivantury and Timothy (2006), agency banking could be of benefit to the clients in the following ways; lower transaction cost (Closer to clients home), longer opening hours, shorter lines than in branches, more accessible for illiterates and the very poor who might feel intimidated in branches, to the agency; increased sales from additional foot-traffic, differentiation from other businesses, reputation from affiliation with well-known financial institutions, additional revenue from commissions and incentives, finally to the financial institutions; increased customers base and market share, increased coverage with low-cost solutions in areas with potentially less number and volume of transactions , increased revenue from additional investments, interest and fee income, improved indirect branch productivity by reducing congestion. (Musau and Jagango, 2015)

Latin America is the region with the strongest development towards agency banking with Brazil being probably the most developed market where agency banking has significantly increased financial system structure and virtually 67% of the population now pay at least one bill at an agent. Brazil has the largest agent network in the world having about 400 000 banking   agents.  According to Kiura (2014) in South Africa, the first agency banking was implemented in 2005 and its regulatory framework gives wide discretion to banks to use nonbank third parties to offer banking services beyond traditional branch network.

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How to cite this paper: Mavaza, T.; Halimani, D.; Dzapasi, F.D. (2020). Agent Banking Model as a Driver of Financial Inclusion in Zimbabwe; PM World Journal, Vol. IX, Issue I, January.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Mavaza-Halimani-Dzapasi-agency-banking-model.docx

 


 

About the Authors

 


Tariro Mavaza

Great Zimbabwe University
Masvingo, Zimbabwe

 

 

Tariro Mavaza is a Lecturer in the Munhumutapa School of Commerce, Department of Banking and Finance, the Great Zimbabwe University.  He previously worked for Zimbabwe Revenue Authority as a Revenue Official. His areas of research are: Financial markets, Revenue Collection Systems I, Corporate Governance, Quality Management Systems and Project Management. He has published three research papers in International and Regional Journals on Total Quality Management and Corporate governance. Email address: tmavaza@gzu.ac.zw

 


Dauglas Halimani

Great Zimbabwe University
Masvingo, Zimbabwe

 

 

Dauglas Halimani is 36 years old and a lecturer at Great Zimbabwe University since 2014. He holds a master’s degree in Banking and Financial Services from National University of Science and Technology as well as Bachelor of Commerce Honours in Finance from Great Zimbabwe University. He is a final year Bachelor of Laws student with the University of South Africa. His interests span the areas of commerce and law.  He can be contacted dhalimani@gzu.ac.zw

 


Farai Dzapasi

Great Zimbabwe University
Masvingo, Zimbabwe

 

 

Farai Dzapasi is a lecturer in the Department of Banking and Finance at the Great Zimbabwe University. He holds a Bachelor of Commerce Honours in Finance and Master of Commerce in Finance from Great Zimbabwe University.

 

 

Specialist PM

and more generalist project-related contributors to organisational strategic management

 

FEATURED PAPER

By Alan Stretton, PhD (Hon)

Sydney, Australia

 


 

INTRODUCTION

In the last seven issues of this journal I have been discussing various contexts in which projects are undertaken. In this article I want to revisit the context of organisational strategic management (Stretton 2019f) and look further at two types of project-related contributions to organisational strategic planning and execution.

The first type is the familiar specialist project management (PM) input to organisational strategic management, which is very widely practised, and tends to dominate the mainstream project management literature. The second, and more generalist type, is typified by those EPC (Engineering, Procurement, Construction) contributions which are particularly involved in FEL (Front End Loading) activities. This type is often associated with mega-projects (very large complex projects), and is widely used in such industries as oil, gas and minerals. It appears to me to receive less attention in the mainstream project management literature than its importance deserves.

The co-existence of these two approaches can pose some interesting questions about the place of specialist and generalist modes of contributing project management inputs to organisational strategic management. This article will first present a five-stage framework for the latter. It will then discuss the two main forms in which specialist project management is practised, before discussing more generalist project-related approaches. I will then broadly align both the specialist and generalist types of contributions with the stages of the organisational strategic framework, and discuss some key differences between the two, and their implications for the organisations involved.

ORGANISATIONAL STRATEGIC MANAGEMENT

Projects and organisational strategy

I noted in Stretton 2019e that, as far as I have been able to ascertain, virtually all projects, no matter how originated, are, or soon become, direct components of organisational strategic plans and their execution. Whilst the project management literature rather naturally tends to focus on projects per se, there are also frequent recognitions of their place in the broader context of contributing to the achievement of organisational strategic objectives.

For example, Cleland & Ireland 2002:106 say:

An emerging conviction among those professionals who do research on, publish, and practice project management is the belief that projects are building blocks in the design and execution of organisational strategies.  

Amongst the many other authors who also relate projects directly with organisational strategies, Shenhar & Dvir 2007:23 say, very directly,

Most projects are part of the strategic management of their organizations,…

A basic organisational strategic management framework

I introduced a basic organisational strategic management framework in Stretton 2017l in this journal, and later discussed it in more detail in a series of five articles on organisational strategic planning and execution, starting with Stretton 2018d. It has also been used in later articles, including Stretton 2019b. As can be seen in Figure 1, the framework has five stages.

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How to cite this paper: Stretton, A. (2020). Specialist PM and more generalist project-related contributors to organisational strategic management; PM World Journal, Volume IX, Issue I, January. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Stretton-organisational-strategic-management-and-specialist-generalist-PM.pdf

 


 

About the Author

 


Alan Stretton, PhD      

Faculty Corps, University of Management
and Technology, Arlington, VA (USA)
Life Fellow, AIPM (Australia)

 

 

Alan Stretton is one of the pioneers of modern project management.  He is currently a member of the Faculty Corps for the University of Management & Technology (UMT), USA.  In 2006 he retired from a position as Adjunct Professor of Project Management in the Faculty of Design, Architecture and Building at the University of Technology, Sydney (UTS), Australia, which he joined in 1988 to develop and deliver a Master of Project Management program.   Prior to joining UTS, Mr. Stretton worked in the building and construction industries in Australia, New Zealand and the USA for some 38 years, which included the project management of construction, R&D, introduction of information and control systems, internal management education programs and organizational change projects.  He has degrees in Civil Engineering (BE, Tasmania) and Mathematics (MA, Oxford), and an honorary PhD in strategy, programme and project management (ESC, Lille, France).  Alan was Chairman of the Standards (PMBOK) Committee of the Project Management Institute (PMI®) from late 1989 to early 1992.  He held a similar position with the Australian Institute of Project Management (AIPM), and was elected a Life Fellow of AIPM in 1996.  He was a member of the Core Working Group in the development of the Australian National Competency Standards for Project Management.  He has published over 200 professional articles and papers.  Alan can be contacted at alanailene@bigpond.com.au.

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

 

 

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