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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/.

 

 

Schedule Performance Impact from Rework

 

FEATURED PAPER

By Walt Lipke

Oklahoma, USA

 


 

Abstract

The concept of schedule adherence (SA) was introduced several years ago, as a consequence of Earned Schedule. Applying SA in the analysis of project performance yielded task level information; tasks are identified that may have performance restricted by impediments or process constraints, and other tasks that may experience rework in the future. Presently, those applying SA in their management process have focused on the cost impact of rework. This paper takes the next step, providing methods for understanding the impact rework has on schedule performance.

Introduction

About fifteen years ago, a year after the introduction of Earned Schedule (ES) [Lipke, 2003], the concept of schedule adherence was published [Lipke, 2004]. Schedule adherence extended ES to project management methods for identifying tasks likely to be performance impeded or constrained and those having a potential of rework. As well, it provided methods for computing the portion of earned value (EV) that moves the project toward completion, termed “effective earned value.” Effective EV allowed for computing an effective ES. These effective values could then be employed in the calculation of the variances, indexes, and forecasts attributed to the methods from Earned Value Management (EVM) and ES[1]; thereby providing a pessimistic, but truer view of project performance.

In 2011, the approach for forecasting the total cost of rework caused by SA was developed [Lipke, 2011]. Having the ability to compute the cost impact of rework, in turn, gave project managers reason to increase attention to managing schedule performance and improving planning.

Although facility has been available for calculating the schedule performance impacts of rework, it hasn’t been fully recognized, and certainly not utilized. The application of SA from its introduction several years ago, primarily, has focused on the impact to project cost. This article provides a brief review of ES and SA, and then presents methods for computing the impact of rework on schedule performance. 

Review

Earned Schedule

Earned Schedule is dependent upon EVM; the ES measure is derived from the accrued earned value (EV) and the performance measurement baseline (PMB) [Lipke, 2003]. As shown in figure 1, “…the idea is to determine the time at which the EV accrued should have occurred.” The time duration from project start to the point on the PMB where the planned value (PV) equals the EV accrued is the earned portion of the planned duration (PD), i.e. ES. The calculation method for determining the value of ES is explained, in detail, in the Earned Schedule book [Lipke, 2009].

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How to cite this paper: Lipke, W. (2020). Schedule Performance Impact from Rework; PM World Journal, Vol. IX, Issue I, January.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Lipke-schedule-performance-impact-from-rework.pdf

 


 

About the Author

 


Walt Lipke

Oklahoma City, USA

 

 

 

Walt Lipke retired in 2005 as deputy chief of the Software Division at Tinker Air Force Base, where he led the organization to the 1999 SEI/IEEE award for Software Process Achievement. He is the creator of the Earned Schedule technique, which extracts schedule information from earned value data.

Credentials & Honors:

  • Master of Science degree in Physics
  • Licensed Professional Engineer
  • Graduate of DOD Program Management Course
  • Physics honor society – Sigma Pi Sigma (SPS)
  • Academic honors – Phi Kappa Phi (FKF)
  • PMI Metrics SIG Scholar Award (2007)
  • PMI Eric Jenett Award (2007)
  • Who’s Who in the World (2010)
  • EVM Europe Award (2013)
  • CPM Driessnack Award (2014)
  • Australian Project Governance and Control Symposium established the annual Walt Lipke Project Governance and Control Excellence Award (2017)
  • Albert Nelson Marquis Lifetime Achievement Award (2018)

To view other works by Walt Lipke, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/walt-lipke/

 

[1] Reference [PMI, 2011] for EVM and ES terminology definitions and formulas for variances, indexes, and forecasts.

 

 

Using Multi-Attribute Decision Making

to Compare Ocean, Wind, Solar, Geothermal and Hydro Renewable Energy Business Options in Indonesia

 

FEATURED PAPER

By Centhya Octavia Iriani

Jakarta, Indonesia

 


 

ABSTRACT

Indonesia has a target using renewable energy in the national energy mix of 23% in 2025 and 31% in 2050. But, by 2018, the installed capacity of renewable energy power plants 2.13% from the total potential renewable energy in Indonesia. Along with that, with the prediction, the earth will face global cooling instead of global warming in 2020 – 2050 because of the grand solar minimum. Therefore, the utilization plan of renewable energy must align with grand solar minimum phenomena.

This paper is developed to find whether the plan to use of renewable energy up to 2050 is appropriate regarding grand solar minimum effect and seek what is renewable energy solution to align with grand solar minimum.

In this paper, the author demonstrates using dominance and non-dimensional scaling multi-attribute decision making to determine the best option for renewable energy business for Indonesia covers the effect of grand solar minimum, total life cycle cost, availability capacity factor, feed-in tariff, energy supply potential, and Government’s regulation. The paper concludes that Geothermal and Hydropower covers most conditions and align with the grand solar minimum.

Key words:      Grand Solar Minimum, Renewable Energy, National Energy Potential, Geothermal, Solar, Hydro Power, Wind energy, Ocean energy, Dominance, Non-dimensional Scaling Multi-attribute

 

INTRODUCTION

  1. Grand Solar Minimum

From 1645 to 1715 and 1790 to 1820, “Temperatures across the Northern Hemisphere plunged when the Sun entered a quiet phase now called the Grand Solar Minimum (GSM). During this period, very few sunspots appeared on the surface of the Sun, and the overall brightness of the Sun decreased slightly.”[1] “Already in a colder-than-average period called the Little Ice Age, Europe, and North America went into a deep freeze.”[2] This research has been conducted by Valentina Zarkova, which is linked the solar activity to the average sunspot number resemblance report in the past on Maunder Minimum (1645 – 1715) and Dalton Minimum (1790-1820). It predicts the modern grand solar minimum will approaching the sun in 2020 -2055.

This cycle is driven by a magnetic field, which produces sunspots, fire, bright areas, and other disturbances. For this reason, the luminosity of the sun changes from year to year. These changes have subtle but essential influences on the Earth’s climate. Solar behavior is consistent with the decrease in solar luminosity and must be accompanied by a colder climate on Earth.

“An uptick in high-level volcanic eruptions is also associated with low solar activity. Increasing Cosmic Rays are believed to heat the muons in subsurface silica-rich magma. And larger eruptions (ones that fire volcanic ash above 32,800 feet (10 km) and into the Stratosphere) have a direct cooling effect on the planet, as these ejected particulates effectively block out the sun.”[3]

“Using computer climate models, the researchers of the new study concluded that, if an eruption like Mount Tambora’s happens in 2085, the Earth will cool up to 40 percent more than the 1815 eruption, assuming current rates of climate change continue. However, they also predict that the cooling will be spread out over several years.”[4]

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How to cite this paper: Iriani, C.O. (2020). Using Multi-Attribute Decision Making to Compare Ocean, Wind, Solar, Geothermal and Hydro Renewable Energy Business Options in Indonesia; PM World Journal, Vol. IX, Issue I, January.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Iriani-compare-renewable-energy-options-in-indonesia.pdf

 


 

About the Author

 


Centhya Octavia Iriani

Jakarta, Indonesia

 

 

 

Centhya Octavia is an oil and gas professional has worked on many companies with multicultural environment namely Halliburton Wireline & Perforating, Rekayasa Industri and Pertamina (Persero). She is currently Research Facility & Engineering Service at Research & Technology Center, Pertamina. Centhya has 6 years experiences in engineering, procurement & construction for upstream and  downstream projects. She holds a bachelor degree in Engineering Physics from Bandung Institute of Technology (ITB) and she is attending a distance learning mentoring course, under 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.

She lives in Jakarta, Indonesia and can be contacted at centhyaoctavia@yahoo.com

 

[1] Nasa.(2006). Chilly Temperatures During The Maunder Minimum. Retrieved from https://earthobservatory.nasa.gov/images/7122/chilly-temperatures-during-the-maunder-minimum

[2] Morano,Marc. (2018). Solar Minimum May Bring 50 Years of Global Cooling. Retrieved from https://www.climatedepot.com/2018/02/08/solar-minimum-may-bring-50-years-of-global-cooling/

[3]Allon.Cap.(2019). Professor Valentina Zharkova’s “Expanded” Analysis Still Confirms Super Grand Solar Minimum (2020-2025). Retrieved from https://electroverse.net/professor-valentina-zharkovas-expanded-analysis-still-confirms-super-grand-solar-minimum-2020-2055/

[4] Hess.Peter.(2017). Future Volcanic Eruptions Will Screw With Climate Change More Than Before. Retrieved from https://www.inverse.com/article/37941-volcano-eruption-climate-change

 

 

De facto Dollarization

Citizens and businesses’ response to Zimbabwe’s economic policies

 

FEATURED PAPER

By Dauglas Halimani

Great Zimbabwe University

Masvingo, Zimbabwe

 


 

ABSTRACT

The research sought to find the response of citizens to government’s economic policies by surveying households and businesses especially to currency policies. The researcher therefore conducted interviews with households and business owners to get to know their expenditure and income patterns given an unstable currency characterized by high inflation. The results of the research show that most businesses have adopted income and payment dollarization to cushion themselves against rampant inflation in the economy. While the government continue to be upbeat about the future and prices stabilizing it was noted that business and consumer confidence is low and citizens have begun the process of dollarizing the economy.

BACKGROUND

In 2009 Zimbabwe introduced the multi-currency system or dollarization where foreign currencies became the sole legal tender in place of the local currency. The country had suffered from hyperinflation which devastated the economy. The formation of the unity government brought much needed stability and hope for the poverty stricken citizens. However, the political arrangement was built on shaky grounds as the main political protagonists remained far apart in terms of issues that needed to be dealt with especially concerning political reforms. One of the reasons for the formation of the unity government was to then institute political reforms that would facilitate the holding of free and fair elections that would end the issue of disputed elections that has dogged the country since 2000. During its life from 2009 to 2013 no political reforms took place and in 2013 Zanu PF won elections defeating the Movement for Democratic Change then led by Morgan Tsvangirai amid allegations of vote rigging and vote buying. The use of the US dollar and other currencies had done much to bring stability and tame hyperinflation of 2008.

However, there were challenges of liquidity that continued to affect the economy   because government had lost its ability to print its own currency. The citizens and businesses that had suffered losses during the hyperinflation period welcomed the stability and discipline brought about by dollarization. The reckless printing of money to fund political programs and buying of foreign currency on the street by the apex bank was and is still blamed as one of the causes of rampant inflation that reached the peak in 2008 when the majority of businesses and individuals simply rejected the local currency and started pricing goods in foreign currencies.

In 2016 the Zanu PF led government introduced what it called bond notes which were at par with the US ddollar. At the time of their introduction the reasons cited for their introduction was the need for smaller denominations that would cater for issues of change in retail transactions. Eventually the bond notes became the main currency and in 2019 the Mnangagwa led government enacted laws that effectively outlawed the use of foreign currencies in local transactions. This came at a time when the bond notes were losing value in the parallel foreign exchange market and inflation was increasing with both business and citizens questioning the wisdom of the return of the local currency when memories are still fresh about the economic horrors of 2008. During the course of 2019 the Minister of Finance instructed the Zimbabwe Statistics Office not to publish annual inflation statistics arguing they promoted speculative behavior in foreign currency trading.

It was indeed an unprecedented move by the Minister not seen anywhere else. Already there had been an uproar on the official statistics which seemed to understate the true inflation rate as compared to the reality faced by businesses and consumers alike. A prominent American economist estimated the annual inflation rate to be above 500% in August. The government introduced new currency in the market to increase cash in circulation as traders were now a premium on other platforms not using cash for payment. The new currency also marked the official return of the Zimbabwe dollar ten years after its demonetization. Meanwhile the economy continues to be plagued by shortages of electricity, water, fuel, foreign currency and even the democratic space seems to have been shut. Many blame the Mnangagwa government for pursuing ruinous economic policies and lack of consultation.

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How to cite this paper: Halimani, D. (2020). De facto dollarization: citizens and businesses’ response to Zimbabwe’s economic policies; PM World Journal, Vol. IX, Issue I, January.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Halimani-de-facto-dollarization-in-zimbabwe.pdf

 


 

About the Author

 


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

 

 

Project Management Certification

Benchmarking Research: 2020 Update

 

FEATURED PAPER

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

Jakarta, Indonesia

 


 

INTRODUCTION

This is the fourth in a series of updates to this research, and most likely, the last update to an ongoing research project started in 2010 to benchmark as many globally recognized project management credentials as possible against two independent and external standards.  To appeal to Millennial practitioners, the first benchmark was to test against Malcolm Gladwell’s “10,000-hour” rule[1] while the second benchmark was the level of effort as well as the milestones required to earn the Professional Engineers (PE) license[2] in the USA, which we know to be a legitimate professional license to practice issued by the State governments. For the purposes of this paper, the National Society of Professional Engineers (NSPE) and National Council of Examiners for Engineering and Surveying (NCEES) standards were adopted as the basis for establishing the engineering benchmarks. Additional or supplemental references were made to private and commercial pilot’s licensing requirements, where necessary to provide context or comparisons.

The original purpose of this research was to:

  1. To provide the basis to compare the relative “value” or “worth” of the various credentials based on a true ratio scale.
  2. To provide the basis to compare “equivalency” and “value for money” (benefit: cost analysis)
  3. To serve as a challenge to those organizations offering these certifications to “raise the bar” to meet legitimate standards of professional assessment.

Having met all 3 objectives and having put the scoring model into the public domain under Creative Commons License BY, the author hopes that others will pick up this research and carry it forward.

To recap, here is the scoring model, which was designed to STANDARDIZE as many of the COMMON variables as possible (such as the value of a bachelors degree) so that only those attributes which served to truly differentiate one certification or credential from others were included in the total score, which measured the total level of effort to prepare for, prequalify, qualify and earn each credential, “the underlying hypothesis being the more robust and rigorous the process, and the more it looks beyond the ability to pass multiple-choice exams and actually analyzes real-life “deliverables and outcomes, the more likely it is to validate that the person holding the credential is “competent.”

 

Table 1- Scoring Model Explained

Figure 2 below will help to explain in the “Big Picture” how the various credentials are rated or analyzed against both Gladwell’s “10,000 Hour” rule AND the PE license milestones.

More….

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How to cite this paper: Giammalvo, P.D. (2020). Project Management Certification Benchmarking Research: 2020 Update; PM World Journal, Vol. IX, Issue I, January. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Giammalvo-pm-certification-benchmarking-research-2020-Update.pdf

 


 

About the Author

  


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

Jakarta, Indonesia

 

 

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

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

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

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

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

 

[1] Gladwell, Malcolm 2018 Youtube Presentation “10,000 Hours Demystified” https://www.youtube.com/watch?v=1uB5PUpGzeY

[2] National Society for Professional Engineers (NSPE) https://www.nspe.org/resources/licensure/resources/faq

 

 

The impact of Liquidity Management

on Bank Financial Performance in a subdued economic environment: A case of the Zimbabwean Banking Industry

 

FEATURED PAPER

By Farai Don Dzapasi

Department of Banking and Finance
Great Zimbabwe University

Zimbabwe

 


 

Abstract

Liquidity is generally referred to as the ability to generate adequate cash to pay off financial obligations but in banking it mainly refers to the ability to honour maturing deposits. Banks indeed require liquidity since such a large proportion of their liabilities are payable on demand (deposits) but typically the more liquid an asset is, the less it yields. Hence, the decision to choose a particular combination of assets over another, taking into consideration the liability size of a bank, would have a massive effect on bank liquidity management, profitability and risk. This paper sought to establish the impact that proper liquidity management has on the financial performance of banks on the backdrop of a poorly performing economy. Factors that include asset liability mix, regulatory and market changes and liquidity management strategies are closely scrutinised in line with the ever changing Zimbabwean economic environment. A mixed research methodology was adopted, where research methodology is based on the multiple viewpoints or perspectives which are brought forward by both qualitative and quantitative research methodologies. The study focused on the population of banking financial institutions in Zimbabwe and drew a sample of five (5) leading banks that comprised of Commercial Bank of Zimbabwe (CBZ), Standard Chartered Bank of Zimbabwe, First Capital Bank, FBC Bank and ZB Bank. The major findings of the study were that there is a strong positive relationship between liquidity management and bank financial performance. Trade-off between liquidity and profitability in Zimbabwean Banking institutions has seen a decline in profit margins over the period under study, but has fostered greater stability that has guaranteed better performance and sustainability. However, there is need for a holistic approach to liquidity management by all stakeholders involved in the exercise and as such, recommendations have been forwarded for their consumption.

Key words: Liquidity management, Asset-Liability exposure, Liquidity contingency plan, Gap analysis, Volatility analysis, Current ratio, Return on Equity

 

Introduction

The recent trends on the global financial scene have had significant impact on the banking industry worldwide with one major need being that for effective liquidity management in banking institutions. Liquidity is generally referred to as the ability to generate adequate cash to pay off financial obligations but in banking it mainly refers to the ability to honour maturing deposits (Adalsteinsson, 2014). According to Choudhry (2011) liquidity management refers to the funding of deficits and investment of surpluses, managing and growing the balance sheet, as well as ensuring that the bank operates within regulatory and stipulated limits. Ideal bank-management is an uninterrupted endeavour of assuring that a balance exists between liquidity, profitability and risk (Banks, 2014). Banks indeed require liquidity since such a large proportion of their liabilities are payable on demand (deposits) but typically the more liquid an asset is, the less it yields. Hence, the decision to choose a particular combination of assets over another, taking into consideration the liability size of a bank, would have a massive effect on bank liquidity management, profitability and risk (Choudhry, 2012). In managing its assets and liabilities in the wake of uncertainties in cash flows, cost of funds and return on investments, a bank must ascertain its trade-off between risk, return and liquidity (Landskroner and Paroush ,2011). Indeed, studies in other countries across the globe have attributed bank failures to poor liquidity management. This is so because scholars argue that one of the major contributors of the Global Financial crisis of 2007-2008 was poor liquidity management (Adalsteinsson, 2014). This was largely as a result of the collapse of Lehman Brothers, a leading Investment Bank which ended up spreading across the globe through the “contagion effect”.

Furthermore, in Nigeria, the challenges of inefficient liquidity management approaches in banks were exposed during the “liquidation and distress” era of 1980s and 1990s. This is so because the negative cumulative effects of this liquidity crisis stayed up to the re-capitalization era in 2005 in which banks were required to raise their capital base from N2 billion all the way to N25 billion (Agbada & Osuji, 2013). Thus, this is the reason why the Basel Committee continually advocates for sound and prudent liquidity management in all Banks across the globe since it is of paramount importance. This is so because Basel Committee on Banking Supervision (2008:1) subscribes to the view that, “Virtually every financial transaction or commitment has implications for a bank’s liquidity. Effective liquidity risk management helps ensure a bank’s ability to meet cash flow obligations, which are uncertain as they are affected by external events and other agents’ behaviour. Liquidity risk management is of paramount importance because a liquidity shortfall at a single institution can have system-wide repercussions.”

In the early 2000s, the Zimbabwean financial system was characterized by incoherent regulatory and market changes that led to a redefinition of some bank operations and policies. This change in banking operations triggered various forms of financial risks which posed an uphill task to traditional liquidity management (Chikoko and Le Roux, 2012). In an attempt to move towards consolidated supervision and risk based financial regulation, a number of policy initiatives and monetary controls were taken by the Reserve Bank of Zimbabwe (RBZ). Enhanced steps were also seen to ensure prudent supervision and market stability. During the last quarter of 2003 and the first quarter of 2004, quite a number of banking institutions suffered from serious challenges that ranged from chronic liquidity problems, liquidity management deficiencies and poor corporate governance (Nhavira, Mugocha and Mudzonga, 2013). The RBZ noted that some banking institutions did not have inclusive liquidity management strategies and policies, arguing that in some cases long- term non- performing assets were recklessly funded through short term liabilities in an environment characterized by rising interest rates. Examples were Century Discount House which was closed in 2004 due to severe liquidity challenges, Royal bank, Barbican bank and Trust bank all due to poor liquidity management (Nhavira, Mugocha and Mudzonga, 2013).

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How to cite this paper: Dzapasi, F.D. (2020). The impact of Liquidity Management on Bank Financial Performance in a subdued economic environment: A case of the Zimbabwean Banking Industry; PM World Journal, Vol. IX, Issue I, January.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Dzapasi-impact-of-liquidily-management-on-bank-performance.pdf

 


 

About the Author

 


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.

 

 

 

The characteristics of benefits realization

in the context of portfolio/program/project management maturity models

 

FEATURED PAPER

By Vahid Dokhtzeynal, MBA, PMP, PMI-RMP

and

Mozhgan Pakdaman, MBA, PMP, PMI-RMP

Melbourne, Australia

 


 

Abstract

Organizations have embraced benefits realization as a key strategy to obtain and sustain beneficial program and project outcomes in uncertain environments. To manage project-based organizations effectively, to deliver outputs within the criteria of scope, time, and cost, and to realize and sustain benefits successfully, merging benefits management (BM) with traditional project management is inevitable. To handle this issue, matured organizational governance is needed to guide all those who are involved from defining intended values to achieving business outcomes. This governance can help organizations to determine their level of BM maturity, and how they can evaluate their BM strengths and weaknesses. The purpose of this article is to define the level of BM maturity in the context of traditional portfolio/program/project management in different kinds of maturity models. This research outlines where portfolio, program, and project maturity models stand from BM perspective. This research reviews and assesses maturity models; Portfolio, Programme and Project Management Maturity Model (P3M3); Project Management Maturity Model (PMMM); Organizational Project Management Maturity Model (OPM3); Capability Maturity Model Integration (CMMI); and Project Management Process Maturity (PM)2 model to find the level of benefits management popularity in maturity models, and reviews Benefits Realization Management practice guide.

Keywords – Benefits Management, Benefits Realization, Maturity Models, Portfolio Management, Program Management, Project Management

 

1 – Introduction

Managing a portfolio of projects and programs is a key challenge in organizations to align projects and programs with their strategic objectives [1]. Organizations need to enhance their capabilities to plan and manage efficiently their defined projects and program in delivering their outputs and outcomes [2]. This leads to the concept of project management maturity [3] and development of maturity models for organization as a key success factor to raise performance, and reach goals and objectives [4]. Maturity model is a measurement tool using to assess the current certain aspects of organizations to define capabilities require for continuous improvement [5]. A Project Management Maturity (PMM) Model helps organizations to understand and analyze their  project management processes to develop capabilities in project management [6]. PMM models can be a beneficial management tool which is intended to help managers and organizations in order to face more effectively with these days complex and uncertain business environments [7]. The appropriate level of PMM for each organization will be different based on the organization’s strategies, goals, objectives, capabilities, abilities, environment, and requirements [8, 9]. There are different kinds of maturity models to evaluate and determine the level of organizational maturity in project management [6].

Most organizations focus on the implementation of projects and programs, not on the realization of expected business benefits and value [10]. The general view that projects and programs fail continually has made organizations and professionals find effective solutions and approaches to succeed [11]. To help organizations gain their intended outcomes and more value, it is necessary to consider benefits management through projects and programs as well as portfolios and business activities to enhance abilities in driving organizational strategies [10, 12]. Benefits are defined in two types: tangible (objective and financial measure); and intangible (qualitative measure) [13]. Since organizational emphasis gradually shifted from project management to project benefits management [14], PMM models need not incorporate directly the benefits management criteria in their approaches.

The purpose of this research is to determine the level of Benefits Management (BM) maturity within different kinds of PMM models which outlines the strengths and weaknesses of the BM in organizations and accurately indicates where an organization stood from BM perspective. Although an effective and comprehensive framework, tools and techniques help organizations to increase their BM capabilities, BM maturity cannot happen overnight and should be implemented base on a specific roadmap in each organization to optimize their value. Each level of BM capability brings considerably increased ability to obtain the full value. Organizations need to make sure the maturity of benefits management leads to achieving business value.

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How to cite this paper: Dokhtzeynal, V.; Pakdaman, M. (2020). The characteristics of benefits realization in the context of portfolio/program/project management maturity models; PM World Journal, Vol. IX, Issue I, January. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Dkhtzeynal-Pakdaman-brm-in-context-of-pppm-maturity-models.pdf

 


 

About the Authors

 


Vahid Dokhtzeynal

Melbourne, Australia

 

 

Mr Vahid Dokhtzeynal, MBA, PMP, PMI-RMP is an experienced project management professional with over 10 years background in successful project delivery across different industries. He has a strong experience in the end-to-end project lifecycle in PMO environments and is vastly experienced in applying project management methodologies, tools, and techniques. He obtained his MBA in 2011, and his PMP and PMI-RMP certificates from the Project Management Institute (PMI) in 2011. His research interests cover a wide range of topics in portfolio, programme, project management, and benefits realization.

 


Mozhgan Pakdaman

Melbourne, Australia

 

 

Mrs Mozhgan Pakdaman, MBA, PMP, PMI-RMP has more than 10 years of project management experience in multiple industries. She obtained her MBA in 2009, and her PMP and PMI-RMP certificates from the Project Management Institute (PMI) in 2011. Mozhgan’s research helps to investigate practical and innovative solutions to manage traditional and agile projects, and is mostly about portfolio, programme and project Management, strategic planning, and benefits realization management.

 

 

Digital Transformation

of Standard Contracts into E-Contracting

 

FEATURED PAPER

By Piero G. Anticona

Lima, Peru

 


 

ABSTRACT

According to SpringCM (2018), companies still use several tools to manage contracts such as MS Excel, Contract Management Tools, Shared Drives, email, and other alternatives. It also mentions that 77% of businesses still report human errors in the contract process.

New technologies might help to reduce claims and disputes in projects because it might automatize some activities or processes that mitigate or avoid potential impacts on cost, time, or quality during the execution of project activities.

R. Nyeland (2019) comments that 3D printing, AI/deep learning, big data, BIM model, digital twin, drones, IoT, robotics, and VR/AR are some technologies used in construction. Another technology available is blockchain.

Since the appearance of Blockchain in 2009, M. Bacina (2018) comments that smart contracts are replacing traditional agreements. Smart contracts, inside the blockchain, allow to transport and transfer assets and data without intermediaries. No human action is necessary; it lives on its own. It has a self-executing nature and exists only with a code. It is a safe, uninterrupted, and secure network. The output of a project or agreement fixes, according to the stage, marked dates, and payment, based on a work breakdown structure.

Are smart contracts capable of reducing claims and disputes in projects, are some of the standardized construction contracts adapting their norms to implement e-contracts in their processes?

This research is essential to:

  • What do owners have to do to be able to adapt their FIDIC, AIA, EJCDC, or CONSENSUS DOCS to e-contracting?
  • What changes or modifications do FIDIC, AIA, EJCDC, or CONSENSUS DOCs need to do to adapt their standard documents for more “E-contracting friendly”?

This paper concluded the following:

Owners can create platforms or use platforms as ConsensusDocs has to manage all the supporting documents offered by FIDIC, AIA, and EJCDC. They also use contract management software to store, track, search, and report the different contracts they manage, but still, some forms vary for each software. Standard contracts forms could be loaded and improve the relationship between parties for different types of contracts.

Owners can also implement blockchain platforms to store, validate, and execute specifics transactions to make faster and trustable the communication between parties. It is essential to determine what clauses can transform in code from FIDIC, AIA, EJCDC, or ConsensusDocs for using smart contracts.

Some actions recommended to FIDIC, AIA, EJCDC, and ConsensusDocs to convert to e-contracting are:

  • Load all the forms that are in a text software (for example, in MS Word extension) to a platform, and participants can drag and drop any clause required for different relationships or types of contracts.
  • Information required to fulfill like name, dates, durations, milestones, and other relevant information, can be entered as if we were codifying a smart contract, to agree between parties the clause for a specific section.
  • As in contract management software, approvals do not require a physical signature or printed documents. Or, like in blockchain, when a rule or agreement meets the specifications, validation is automatic.
  • Codify as part of the code for a blockchain (smart contract) to notify an alert when, for example, the blockchain did not reach 51% of approval of a transaction or Notify when there is an approval for payment or money transfer.
  • A cloud or blockchain platform can store all the information, and it allows browsing all documentation.

Key words – Standard Contracts, Smart Contracts, Blockchain, E-Contracting, Project Management, Contract Management, Change Management, Contract Management Software, BIM

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How to cite this paper: Anticona, P. (2020). Digital Transformation of Standard Contracts into E-Contracting; PM World Journal, Vol. IX, Issue I, January. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Anticona-digital-transformation-of-standard-contracts-into-e-contracts.pdf

 


 

About the Author

 


Piero G. Anticona

Lima, Peru

 

 

 

Piero Anticona is a project controller with 15 years of professional experience in the sectors of Mining, Energy and Oil and Gas. He worked as Owner, EPCM and Contractor in different projects in Peru, Spain and France. Piero is a Certified Cost Professional from AACE International and Project Management Professional from Project Management Institute. Piero graduated from SKEMA (France) with a Master in Program and Project Management. In addition, he has a major study in Mechanical Electrical Engineering from Universidad Nacional de Ingeniería (Peru). He is currently president of AACE International Peru Section (2018-2019) and he is attending a distance learning mentoring course, under tutorage of Dr Paul D. Giammalvo, CDT, CCE, MScPM, MRICS, GPM-m Senior Technical Advisor, PT Mitrata Citragraha, to attain Guild of Project Controls certification.

Piero lives in Lima, Peru and can be contacted at piero.anticona@gmail.com

To view other original works by Piero Anticona, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/piero-g-anticona/

 

 

Effects of workplace diversity practices

on civil construction projects in Nigeria

 

FEATURED PAPER

By Dr. Uzoma Francis Amaeshi

and

Dr. Amade Benedict

Federal University of Technology, Owerri

Imo State, Nigeria

 


 

Abstract

This research project focuses on the impact of a diverse workforce on an organization. We seek to extend the frontiers of existing research on workplace diversity by conceptualizing and empirically examining the effects of different variables that could bring about effectiveness on organizational and employee performance. 72 respondents were gathered from the purposively selected study area using different types of sampling techniques. We collected data through simple Random sampling method and used a qualitative case study including interviews and observations, using appreciative inquiry to learn more about the positive behaviors of employees in a diverse workforce. The results from the research shows that employee training, leadership support, recruitment and employee work experience are key to effective managerial performance. We recommend that organizations should strive to employ employees of diverse cultural backgrounds and experiences because a diverse workforce will lead to higher performance, increased efficiency and improved productivity.

Keywords: diversity, management, civil construction, effectiveness, productivity

 

  1. INTRODUCTION

1.1   Background of the Study

Workforce is defined as “the totality of the people working in an organization” (Hornby 2005). Workplace diversity is defined by Kreitner and Kinichi (2004) as “the multitude of the individual differences and similarities that exist among the people working in an organization”.

This definition is chosen because it underscores an important issue about managing workplace diversity, namely that there are many different dimensions or components of workforce diversity.

This implies that workplace diversity “pertains to everybody in the organization. It is not an issue of demographic characteristics such as age, race, or gender alone” (Thomas, 2006). In other words, “it pertains to the host of the individual differences and similarities that make all the workers in the organization unique and different from the others. In other words, workplace diversity is not synonymous with the differences of the workers. Rather, it encompasses both differences and similarities.

This means that managing workplace diversity entails dealing with both simultaneously” (Thomas, 2006). Thus, workplace diversity includes the collective mixture of differences and similarities of the workers. Dealing with workplace diversity “requires managers to integrate the collective differences and similarities. Both of them have to be properly examined, determined and established” (Thomas, 2006).

Harold and Kumar (2012) points out “that in organizational performance index, diversity should capture practices that involve understanding and appreciating interdependence of humanity, culture, and the natural environment; practicing mutual respects for qualities and experiences that are different form our own; understanding that diversity includes not only ways of being but also ways of knowing; recognizing that personal, cultural and institutionalized building alliances across differences in other for people to work together to eradicate all forms of discrimination”.

This study is undertaken to examine the underlining concept of workforce diversity and how it relates to organizational performance. This is important to establish the underpinning variables that give rise to underachieving or overachieving of employee performance. An examination of literature shows little known fact about the relationship of workforce diversity, their needs, motivation and reservations concerning organizational performance.

This study contributes to organizational culture’s literature by showing that workforce diversity and organizational goals are an important facet that binds the employees’ involvement thus increasing commitment. The concept of workforce diversity and organizational performance has been debated in the last five decades. Workforce diversity and organizational culture has been frequently said “to be responsible for all manner of positive and negative ills”. (Sliani and Lau, 2005). A better understanding of the concept would allow employees in organizations to solve problems and improve performance.

Diversity issues are now considered important and are projected to become even more important in the future due to increasing differences in the population of many countries. Companies need to focus on diversity and look for ways to become totally inclusive organizations because diversity has the potential of yielding greater productivity and competitive advantages. Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity.

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How to cite this paper: Amaeshi, U.F.; Benedict, A.  (2020). Effects of workplace diversity practices on civil construction projects in Nigeria; PM World Journal, Vol. IX, Issue I, January.  Available online at https://pmworldlibrary.net/wp-content/uploads/2020/01/pmwj89-Jan2020-Amaeshi-Benedict-effects-of-workplace-diversity-on-construction-projects.pdf

 


 

About the Authors

 


Dr. Uzoma Francis Amaeshi

Federal University of Technology
Owerri, Imo State, Nigeria

 

 

Dr. Uzoma Francis Amaeshi is a senior lecturer in the department of Project Management Technology, Federal University of Technology, Owerri, Imo State, Nigeria. His doctoral work is in Management with areas of research interest that include: Human Resources Management; Organizational Development and Entrepreneurship development. Dr. Amaeshi can be contacted at uzor1958@gmail.com.

 

 


Amade Benedict, PhD

Federal University of Technology
Owerri, Nigeria

 

 

 Dr. Amade Benedict is a Project Manager by Profession. He read and obtained a PhD (Doctor of Philosophy) Degree in Project Management Technology from the Federal University of Technology, Owerri, Nigeria. He is a member of the Project Management Institute (PMI) U.S.A. and presently lectures in the Department of Project Management Technology of the Federal University of Technology, Owerri, Nigeria for the past 9 years. His areas of research interest include construction project management, computer-based project management and construction supply chain management. He has authored over 20 scientific publications in international refereed journals and is actively involved in other consultancy works. He can be reached on benedictamade@yahoo.com or benedictamade@futo.edu.ng

 

 

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