How Technology Has Changed Procurement in the Last 10 Years
Over the past decade business procurement has experienced rapid technological upheaval that, in the main, has made life easier for everyone involved.
The first ever Global Procurement Technology Summit was held in March 2016. It shows the emphasis procurement is now putting on understanding and utilising new technologies, and that it’s clearly a huge talking point for professionals across the world.
Looking in greater detail: which technology has been responsible and what has the effect been on procurement and buying professionals?
1. More informed decisions are being made
The digitalisation of procurement processes and integration of data-sharing across buyer behaviour, ratings and history of purchases over extended periods of time, has made for smarter and more informed decisions.
Despite the greater insight into decision-making, a study of US procurement professionals still revealed accurate forecasting to be the biggest challenge, something that’s possibly down to the rise in budget responsibilities over the last ten years.
The Coupa ‘Top 5: Constants and Change in Cloud Procurement’ report revealed that in 2003, budgets were reported as an average of $31m, compared to $100m in 2013.
2. Response times have drastically reduced
Procurement solutions are now quicker and easier than ever thanks to new marketplace technologies.
Buyers can take advantage of online purchasing possibilities, using websites like Amazon to source, purchase and arrange delivery of items.
The speed of procurement reflects the new speed in which consumerism moves ’’ the integration of digital mediums with online shopping has made the process of deliberation through to transaction much easier, a trend which has been reflected in the world of procurement.
3. Integration has brought its own problems
Technological integration has created many positives for procurement, but it’s also created challenges.
Millennials will make up 40% of the workforce by 2020, which is great for improving current procurement solutions as younger generations have higher expectations for technology and are early adapters.
However, the average age of procurement professionals in the UK is currently 44 – much older than the next generation of workers, who fully understand the capabilities of technology, and who will be easier to train and able to work with increased speed and accuracy.
The gap will close in the coming years, but procurement faces a struggle as older workers need to ensure their skills are relevant to the changing world around them.
Additionally, Hays’ ‘Procurement Salary Guide’ revealed that demand for procurement professionals has increased at all levels within the public sector, pushing salaries up. This demand is the result of a squeeze on public finances and attempts to cut costs following the slowdown in the economy.
4, Technology and the future of procurement
To conclude, technology is clearly a powerful enabler that’s here to stay. Plenty of companies are now seeing the importance of procurement technology as a means to improve their bottom lines, which was reflected in the inaugural Global Procurement Technology Summit earlier this year.
Integration of contract management, risk management and supplier lifecycle systems through investment in improved systems with added capabilities, has ensured more accurate sourcing is possible and due to the skills involved in running these systems, has driven salaries up.
Sophia Chapman is a guest contributor from Portfolio Procurement, expert recruiters in the compensation, benefit and reward sector.
Has Nigeria Become the World’s Junk Yard of Abandoned and Failed Mega Projects worth Billions?
Dim1, N. U., Okorocha2, K. A., & Okoduwa3 V. O.
The Nigerian construction industry is mostly concerned with the development and provision of projects such as roads, bridges, railways, residential and commercial real estates, and the maintenance necessary for the socio-economic developments contributes immensely to the Nigerian economic growth (Bureau of Statistics, 2015). Butcher and demmers (2003) described projects as an idea which begins and ends by filling a need. However, a project fails when its idea ends without meeting the needs and expectations of its stakeholders.
Nigeria Has Become the World’s Junk – Yard of Abandoned and Failed Projects worth Billions of Naira!
Hanachor (2013), revealed that projects form part of the basis for assessing a country’s development. However, a damming report from the Abandoned Projects Audit Commission which was set up by the Ex-President Goodluck Jonathan in 2011 revealed that 11,886 federal government projects were abandoned in the past 40 years across Nigerian (Abimbola, 2012). This confirmed the assertion by Osemenan (1987) “that Nigeria has become the world’s junk –yard of abandoned and failed projects worth billions of naira”.
Abandoned projects including building and other civil engineering infrastructure development projects now litter the whole of Nigeria.
Physical projects do not only provide the means of making life more meaningful for members of the community where the projects are located, successful projects also result in empowerment and collective action towards self improvement (Hanachor, 2013).
This Issue of Abandonment Has Been Left Without Adequate Attention for Too Long, and Is Now Having a Multiplier Effect on the Construction Industry in Particular and the Nigeria’s National Economy as a Whole. (Kotngora, 1993)
PROJECT FAILURE
Project Failure might mean a different thing to different stakeholders. A project that seemed successful to one stakeholder may be a total failure to another (Toor and Ogunlana, 2008). Some stakeholders, more especially the project users and some private owners, think of failed projects as a situation where a completed building project collapsed, a situation where by a completed dam project stopped working after few days of completion, or a completed road project that broke down after few months of completion. Other experienced stakeholders, such as engineers and architects conform to the iron triangle by Atkinson (1999) which states that the most strategically important measures of project failure are “time overrun”, “cost overrun”, and “poor quality”.
Turner (1993) noted that a project fails when the project specifications are not delivered within budget and on time; the project fails to achieve its stated business purpose; the project did not meet the pre-stated objectives; the project fails to satisfy the needs of the project team and supporters; and the project fails to satisfy the need of the users and other stakeholders. Lim and Mohamed (1999) cited in Toor and Ogunlana (2009) clarified that there are two possible view points to project failure namely; the macro-level and the micro-level. They further explained that the macro view point reviews if the original objectives and concepts of the project was met. Usually the end users and the project beneficiaries are the ones looking at the project failure from the macro view point, where as the project design team, the consultants, contractors, and suppliers review projects from a micro view point focusing on time of delivery, budget, and poor quality.
In the early 1990s, the failure as well as the success of any project was determined by the project duration, monetary cost, and the performance of the project (Idrus, Sodangi, and Husin, 2011). Belout and Gauvrean (2004), also confirmed that the project management triangle based on schedule, cost, and technical performance is the most useful in determining the failure of a project. Moreover, a project is considered as an achievement of specific objectives, which involves series of activities and tasks which consume resources, are completed within specifications, and have a definite start and end time (Muns and Bjeirmi 1996, cited in Toor and Ogunlana, 2009). Reiss (1993) in his suggestion stated that a project is a human activity that achieves a clear objective against a time scale. Wright (1997) taking the view of clients, suggested that time and budget are the only two important parameters of a project which determines if a project is successful or failed. Nevertheless, many other writers such as Turner, Morris and Hough, wateridge, dewit, McCoy, Pinto and Slevin, saarinen and Ballantine all cited in Atkinson (1999), agreed that cost, time, and quality are all success as well as failure criteria of a project, and are not to be used exclusively.
FACTORS OF PROJECT FAILURE
Cookie-Davies (2002) stated the difference between the success criteria and the failure factors. He stated that failure factors are those which contributed towards the failure of a project while success criteria are the measures by which the failure of a project will be judged. The factors constituting the failure criteria are commonly referred to as the key performance indicators (KPIs).
Time and Cost Overrun
The time factor of project failure cannot be discussed without mentioning cost. This is because the time spent on construction projects has a cost attached to it. Al-Khali and Al-Ghafly, (1999); Aibinu and Jagboro, (2002) confirmed that time overrun in construction projects do not only result in cost overrun and poor quality but also result in greater disputes, abandonment and protracted litigation by the project parties. Therefore, focus on reducing the Time overrun helps to reduce resource spent on heavy litigation processes in the construction industry (Phua and Rowlinson, 2003). Most times, the time overrun of a project does not allow resultant system and benefits of the project to be taking into consideration (Atkinson, 1999). Once a project exceeds the contract time, it does not matter anymore if the project was finally abandoned or completed at the same cost and quality specified on the original contract document, the project has failed. Furthermore, Assaf and Al-Hejji, (2006) noted that time overrun means loss of owner’s revenue due to unavailability of the commercial facilities on time, and contractors may also suffers from higher over heads, material and labour costs.
Poor quality/Technical Performance
The word “Performance” has a different meaning which depends on the context it is being used and it can also be referred to as quality. Performance can be generally defined as effectiveness (doing the right thing), and efficiency (doing it right) (Idrus and Sodangi, 2010). Based on this definition of performance, at the project level, it simply means that a completed project meets fulfilled the stakeholder requirements in the business case.
CAUSES OF PROJECT FAILURE
A lot of research studies have investigated the reasons for project failures, and why projects continue to be described as failing despite improved management. Odeh and Baltaineh, 2002; Arain and Law, 2003; Abdul-Rahman et al., 2006; Sambasivan and Soon, 2007; all cited in Toor and Ogunlana, 2008, pointed out the major causes of project failures as Inadequate procurement method; poor funding and availability of resources; descripancies between design and construction; lack of project management practices; and communication lapses
The contract/procurement method
A result obtained from two construction projects which were done by the same contractor but using different procurement methods showed that rework, on the design part which occurs when the activities and materials order are different from those specified on the original contract document, makes it difficult for the project to finish on the expected time (Idrus, Sodangi, and Husin, 2011). This is as a result of non-collaboration and integration between the design team, contractor, and tier suppliers. The rework on the design portion has a huge impact on project failure leading to the time overrun. The traditional method of procurement has inadequate flexibility required to facilitate late changes to the project design once the design phase of the construction project has been concluded.
Nigerian most widely used procurement method is the traditional method of procurement (design-bid-construct) which has been confirmed to be less effective to successfully delivery of a construction project (Dim and Ezeabasili, 2015). And, the world bank country procurement assessment report (2000) cited in Anigbogu and Shwarka, (2011) reported that about 50% of projects in Nigeria are dead even before they commence because they were designed to fail.
The way the construction projects are contracted, in addition to the way the contracts are delivered, contributes to the causes of projects failure. Particularly, among the methods of project contracting is lump-sum or a fixed-price contracting method, in which the contractor agrees to deliver a construction project at a fixed price. The fixed-price contract can be low-bid or not however, once the contract cost has been agreed upon the contract award, it cannot be changed. And, contractors are expected to honor and deliver the contract agreement, failure to do so can result in a breach of contract which can result in the contractor being prosecuted.
Awarding a contract to an unqualified personnel also contributes to project failures. When a contractor places more emphasis on money and the mobilization fee after a construction project has been initiated instead of getting the right workforce and skilled professionals that will execute the project. Instead the workforce chosen will often not be base on competence and required skills rather it will be based on availability. Moreover, poor strategy and planning by contractors who have overloaded with work also contributed to one of the causes of project failure.
Poor funding/Budget Planning
A lot of public projects in the Nigerian construction industry failed as a result inadequate funding, and the difference between the national annual budget and the budget actual released. Most of the Nigerian public projects are signed even before the actual release of the national budget. The difference in budget of the contracted project and the actual budget release can get the contracted company stuck as a result of inflation of prices, scarcity of construction material at the time of the budget release and mobilization to site. Also un-planned scope of work which can be as a result of the contractor working on another contract when he is called back to mobilization to start work. Moreover, poor budget planning is a regular mistake made by some contractors by not undertaking feasibility assessments before starting the design. The construction project should be planned according to the available resources and not according to the unrealistic expectations a client has in mind.
Discrepancies Between the Design and Construction
Limited collaboration between the contractors, engineers, and the architect results in discrepancies between the project designs and construction on site, and further leads to rework. Changes on a project designs, and changing to the scope of work in the middle of construction processes on site can be dangerous, and can lead to time overrun, increase in cost, and most of all can lead to abandonment. Moreover, many cases have been seen where the designs from the architects are not buildable on site, while In some cases, most contractors are unable to adequately specify the scope of work for the construction processes on site. Therefore any default on the design by the architect can be an opportunity for the contractor to make more money which might cause the project duration to exceed the time specified on the contract document.
RESEARCH METHODOLOGY
This research starts with a general reasoning or theory which says that the major cases of project failure in the Nigerian construction industry are defined based on time overrun and cost overrun. The findings from the data analysis will help on the decision to accept the theory or not. The research data was collected from the progress report for the month ending of October, 2015 published by the Nigeria of Federal Ministry of works on thirty-nine on-going highway construction projects at the South-South geopolitical zone. The table 1 below shows the information on the data collected which comprises of the project title, contract Number, project description, the contractor that was awarded the projects, the date of project commencement, date of completion and the extended date if any. The scheduled time for each project was specified as follows: project commencement date labeled as “a”, project completion date labeled as “b”, and the extended date labeled as “c”.
DATA ANALYSIS
The data analysis was done with the use of Microsoft excel. The analysis started by obtaining the number of days between the date of commencement of each project and the date of completion to show the duration of each highway project. And, the number of days between the project completion date and the extension date showed the time-overrun. The project duration and the extended days were obtained with the use of NETWORKDAYS function in Microsoft Excel which calculates the number of working days between two dates excluding weekends and any dates identified as holidays.
The standard deviation between the specified project duration for each highway projects and the extended days was calculated to obtain the extent to which each highway project contract failed on its time of delivery. This was denoted as the degree of failure. The table 1 above showed the projects ranking which was done based on the degree of failure of all the highway projects. The highway projects that were ranked from one to sixteen have low degree of failure and are represented with green color, while the rest are those with high degree of failure and are represented with red color.
FINDINGS
The findings made showed that the successfully completed highway projects have no extended days or time overrun, and the successful on-going highway projects are still on schedule and have no extended days unlike the on-going highway projects that have already failed as a result of the extended dates. Other projects have been abandoned because they have exceeded the delivery date as specified on the contract document, and have no extended date of completion. Thus, no work is going on.
Figure 2 above showed that 14% of highway projects are still on-going projects because they have not exceeded the original date of completion as specified on the contract document. However, they are heading towards failure because they have been given an extended date of completion which can be as a result of some critical activities running behind schedule, causing delay on the critical path network of the projects. Moreover, the other 86% completely failed because they have exceeded their completion date specified on the contract document.
The figure 3 above showed that 63% of the successful highway projects are still on-going because they have not exceed their completion dates, and they are not yet completed. However, those on-going highway projects might end up as failed projects as a result of poor funding, discrepancy between the design and the construction on site, and conflict between the construction parties or stakeholders.
“Say what you will do, and do what you said” or “Say as you will do it, and do it as you said”
CONCLUSION AND RECOMMENDATION
The idea of knowing what a failed project is, the factors and the causes is very important in project management. Success in project management can neither be achieved nor measured without the knowledge of project failure, its factors, and causes in the Nigerian construction industries. This work has shown that project failure is as a result of exceeded time of delivery, cost overrun, and poor quality. However, the analysis was only done based on exceeded time of project delivery because of the nature of the data collected.
This work suggested a few approaches to help reduce the number of failed projects in the Nigerian construction industry if properly implemented. Firstly, Having good collaboration between the project stakeholders involved in a construction project at the early stage of project conception is most important in order to accomplish the project objectives, and deliver the project on time, within budget, and quality specified on the original contract document (Othman, 2006).
Secondly, Adopting the ISO 9000 technique which is used for quality management will also help in achieving a successful project delivery. This technique states “ say what you will do, and do what you said” or “say as you will do it, and do it as you said”. This technique is not an indication of high quality but it promotes control and consistency which leads to specialization, and improved productivity and quality. Also, adopting the principles of lean construction will help to reduce waste within the construction and stream-line activities in order to improve the on-time delivery of projects.
Thirdly, Learning from the precedent failed projects, how those projects failed, and the reason for their failures. This will help the project manager to plan and mitigate the risks of project failures in the future. And, finally, more seminars and workshops will help to educate and enlighten clients (the federal government representatives), users, contractors, engineers, and architects on what is project failure, the factors that contributes to abundant failed projects, and their causes.
REFERENCE
Abimbola, A. (Novermber 24, 2012). About 12,000 Federal Projects Abandoned across Nigeria. Premium times (November 16, 2015). Retrieved from www. Premium timesng.com/news/108450-about-12000-federal-projects-abandoned-across-nigeria.html.
Al-Khali, M.I and Al-Ghafly, M.A. (1999). Important Causes of Delays in Public Utility Projects in Saudi Arabia. Construction management and Economics, 17, 647-655
Aibinu, A.A and Jagboro, G.O. (2002). The Effects of Construction Delays on Project Delivery in Nigeria Construction Industry. International journal of Project management, 20(8), 593- 599.
Anigbogu, N. and Shwarka, M. (2011). Evaluation of Impact of the Public Procurement Reform Program on Combating Corruption Practices in Public Building Project Delivery in Nigeria. Environtech Journal, 1(2). 43-51.
Assaf, S. and Al-Hajji, S. (2006). Causes of Delays in large Construction Projects. International Journal of Project Management, 24, 349-357.
Atkinson , R. (1999). Project management: Cost, time, and quality, two best guesses and a Phenomenon, it’s time to accept other success criteria. International Journal of project Management, 17(6), 337-342.
Belout, A and Gauvrean, C. (2004). Factors Influencing the Project Success: The impact of human resource management. International Journal of project Management, 22, Pp. 1-11.
Butcher, N. and Demmers, L. (2003). Cost Estiumating Simplified. Retrieved from www.librisdesign.org.
Cookie-Davies, T. (2002). The Real Success Factors on Projects. International Journal of Project management, 20(3), 185-190.
Dim, N.U. and Ezeabasili, A.C.C (2015). Strategic Supply Chain Framework as an Effective Approach to Procurement of Public Construction Projects in Nigeria. International Journal of Management and Susutainability, 4(7), 163-172.
Hanachor, M. E. (2012). Community Development Projects Abandonment in Nigeria: Causes and Effects. Journal of Education and Practice, 3(6), 33-36.
Idrus, A., Sodangi, M., and Husin, M., H. (2011). Prioritizing project performance criteria within client perspective. Research Journal of Applied Science, Engineering and Technology, 3(10), 1142-1151.
Idrus, A. and Sodangi, M. (2010). Framework for evaluating quality performance of contractors in Nigeria. International Journal of Civil Environment and Engineering. 10(1), 34-39.
National Bureau of Statistics (January, 2015). Nigerian Construction Sector Summary Report: 2010-2012.
Kotangora, O. O. (1993). Project abandonment, Nigerian Tribune.
Osemenan, I. (1987). Project Abandonment. New Watch Magazine, Vol. 1, pp. 15.
Othman, M.,R. (2006). Forging main and sub-contractor relationship for successful projects. Retrieved from http://rakanl.jkr.gov.my/csfj/editor/files/file/projek/lessonslearned/MAIN&SUB_2.pdf
Phua, F.T.T and Rowlinson, S. (2003). Cultural Differences as an Explanatory Variable for Adversarial Attitude in the Construction Industry: The case of HongKong. Construction Management and Economics, 21, 777-785.
Reiss, B. (1993). Project Management Demystified. London: E and FN Spon Publishers.
Toor, S. R. and Ogunlana, S. O. (2008).Problems causing Delay in Major Construction Projects in Thailand. Construction management and Economics, 26, 395-408.
Toor, S. R. and Ogunlana, S. O. (2008). Critical COMs of Success in Large-Scale Construction Projects: Evidence from Thailand constructuction industry. International Journal of Project management, 26(4), 420-430.
Toor, S. R. and Ogunlana, S. O. (2009).Beyound the “Iron Triangle”: Stakeholder perception of key performance indicators (KPIs) for large-scale public sector development projects. International Journal of Project management, doi: 10.1016/j.ijproman.2009.05.005.
Toor, R. and Ogunlana, S. (2009). Construction Innovation: Information, process, management. 9(2), PP. 149-167.
Turner, J. R. (1993). The Handbook of project-Based Management: Improving the process for achieving strategic objective. London, McGraw-Hill.
Wright, J., N. (1997). Time and Budget: The twin imperatives of a project Sponsor. International Journal of Project Management, 15(3), 181-186.
How to Cope with a Mis-Sold Job
Everyone knows a story about a smart and talented professional who has lost his or her passion for a role, who no longer looks forward to going to the office yet remains stuck without a visible way out. Getting on the career ladder is a great thing, you start off at the bottom and work your way up, but sometimes you can get stuck and do not even realize it.
“One in Five Employees Claim They Were Mis-sold Opportunities When They Joined Their Organisation – Kelly Global Workforce Index (Kgwi).”
Commenting on the findings, Debbie Pettingill, Director, Kelly Services UK and Ireland said
“Employee retention will become an increasing challenge for employers as we move out of the recession. As we move into a more candidate driven market, this trend is likely to accelerate. Our findings indicate that this problem is being exacerbated by the misrepresentation of job role or company culture at the interview stage, leading to the dissatisfaction of new hires.”
Most of us know what we are trying to escape a “mis-sold” job resulting in a narrowly defined career, inauthentic or unstimulating work, numbing corporate politics, and perhaps blackmail including direct threats of being used as a scapegoat. A job where you are both overlooked and underappreciated. One may ring true for some of you.
“Fewer than Half of Uk Employees Are Happy with the Way Their Careers Are Progressing According to New British Research.”
Why Would A Company or Person Block Your Move?
Well, this could be because of his or her personal insecurity i.e. as the team works well, why rock the boat? Comfort zone: sometimes the team gets too comfortable? Golden child syndrome: you’re working your butt off and your sponsor or other senior is reaping the recognition from your amazing deliverables?
Working a job you don’t like can leave you feeling stuck, forgotten by God, and asking yourself questions like:
Why hasn’t God opened another door for me yet?
Why is God not moving?
Why would God leave me here in this job I hate?
But the truth is God has not left you. He’s not holding back on you. When you feel God is silent, that’s exactly when He’s moving! Your situation does not change God. He still loves you and is with you no matter what.
Instead of looking at our situation from a perspective of fear and worry, we need to look at it through faith and hope.
What Can You Do About it?
Don’t fret, you can handover your work or completely leave the organisation and still stay sane. You might worry that announcing your intentions will cause your company grief, but ultimately you have to do what’s best for you no matter what!
Think and pray long and hard about how you’re going to drop this bombshell as you will need to give notice. A sound method is required to overcome the assault and possible backlash – including of course more prayer and fasting.
So how are you going to approach it? What’s your reasoning going to be? How are you going to get them to understand exactly why you’re doing this? What do you need to do in order to prepare for the big day?
Easy, you’re going to read this guide.
Strategy 1 – Remote Working Arrangement
This could be a great approach if 80% of your work can be undertaken remotely. However, while there is a very logical argument to be made in favor of working from home, many people equate remote work to a lack of productivity and laziness. These people do not realize that the switch from an office to working from home can actually lead to significant increases in productivity.
Strategy 2 – What’s in It for Me?
What’s in it for me? That question sounds a little selfish, doesn’t it? Maybe you aren’t being compensated fairly, or you’re not happy with the effort vs return. When you know your client and team needs you and you’re willing to stay for a price, don’t mess around. Give them the real number or offer that will make it worth your while to stick it out for awhile.
Strategy 3 – The Budget Cut
The re-structuring. The downsizing. The dreaded budget cut. Whatever name you want to give it, this can be terrifying for a lot of professionals. However, if you’re already thinking about leaving, so maybe it doesn’t have to be such a scary thing. In fact, maybe it can be extremely positive for both parties.
Strategy 4 – The Ease Out
Still feeling weary about leaving the organization. Propose easing yourself out of the post. Pick a time frame, maybe four weeks or so, and come up with a plan for slowly taking yourself out of the position. This also allows you some time to slowly ramp down your time commitment.
Strategy 5 – Burning Bridges in the Industry
“Sometimes it’s about networking and being nice to people and not burning any bridges – but remembering to draw line where you must.”
There’s no harm in an early exit from a job you never plan to mention again or an interim role where you have clearly agreed on a start and finish date. But if your manager is well connected to your industry you should try to leave on a good note. Why? Because it’s a small world and the next hiring manager may put in a call to his or her former colleague (a.k.a., your new manager) to get the unofficial scoop. It happens, so if you’re going to leave anyway then try to fulfill your end of the deal.
Strategy 6 – Get Moving Fast
Imagine, for example, that you were hired to help the company manage multiple programmes and projects across the globe, but a recent change in leadership means all efforts moving forward will be focused locally.
If you’re spending your days just trying to find ways to be productive or are undertaking a role you never signed up for, you have every right to pursue new opportunities. Of course, the first course of action should normally be to discuss this with your manager to see if there are other roles you can take on. But if you know that this isn’t going to happen in the new world, get moving fast.
Strategy 7 – Your Dream Job Awaits
“When you’re being interviewed, always treat the interview as a 50-50 thing,” says Andy Dallas, a director at Robert Half International, recruitment consultants. “Ask what you can expect to be doing in your first week, month and three months. Ask what a successful year looks like.”
Dream jobs don’t come every day. So, if you have a chance at yours, take it quickly and congratulate yourself for being strong enough to leave when you were unhappy.
Strategy 8 – Remeber to Be Patient
We will not always be in a job we desire. Maybe you are fresh out of school and are working a job that has nothing to do with the degree you just earned. Maybe you are in a situation where you are working at a job where you are overqualified, overworked, and fed up. Maybe, for the most part, you love your job but get discouraged by the mundane tasks that take up time from doing the aspects of your job you love most.
“Humble yourselves before the Lord, and he will exalt you.” – James 4:10 NIV
Here’s the thing: God will still use this season to grow, develop, and prepare you. Any season that humbles us is preparing us for what God has next.
Any thoughts to share?
15 Shocking Project Management Statistics
The project management landscape is changing with an increased emphasis on productivity, reporting, and information technology. A number of studies have been completed that look into the success and failure rates of projects.
Below are 15 shocking statistics that reveal how project management has changed and is performing across various industries over the last 5 years.
- There is projected to be 15.7 million new project management roles to be added globally across seven project-intensive industries by 2020 reaching an economic impact of over $18 trillion, across seven project-intensive industries including Manufacturing, Finance & Insurance, Information Services, Utilities, Business Services, Oil & Gas and Construction (Project Management Institute)
- 75% of IT executives believe their projects are “doomed from the start. (Geneca)
- The healthcare industry is projected to increase project management roles by 30%, a higher growth rate than any current project intensive industry between 2010 and 2020. (Project Management Institute)
- A third of all projects were successfully completed on time and on budget over the past year. (Standish Group)
- 80% of “high-performing” projects are led by a certified project manager. (PricewaterhouseCoopers, Insights and Trends: Current Programme and Project Management Practices 2012)
- One in six IT projects have an average cost overrun of 200%. (Harvard Business Review 2004)
- 44% of project managers use no software, even though PWC found that the use of commercially available PM software increases performance and satisfaction. (Pricewaterhouse Coopers)
- More than 90% of organizations perform some type of project postmortem or closeout retrospective. (The Standish Group: CHAOS Research Report 2013)
- On average, it takes 7 years in the profession to go from entry-level to managing large, complex projects. (ESI International: Annual Salary Survey 2013)
- The average large IT project runs 45% over budget, 7% over time, and delivers 56% less value than expected. (Project Management Institute: Pulse of the Profession 2015)
- Only 64% of projects meet their goals. (Project Management Institute: Pulse of the Profession 2015)
- 60% of companies don’t measure ROI on projects. (KPMG New Zealand: Project Management Survey 2010)
- The United States economy loses $50-$150 billion per year due to failed IT projects. (Gallup Business Review)
- In just a 12 month period 49% of organizations had suffered a recent project failure. In the same period only 2% of organizations reported that all of their projects achieved the desired benefits. 86% of organizations reported a shortfall of at least 25% of targeted benefits across their portfolio of projects and many organizations failed to measure benefits so they are unaware of their true status in terms of benefits realization. (KPMG – Global IT Project Management Survey 2005)
- According to an IBM study, only 40% of projects meet schedule, budget and quality goals. (Harvard Business Review 2004)
If you have any other project management statistics please share them with us.
7 Tips You Need to Be a Super Project Manager
66% of IT Projects Fail
Only one in three software projects will turn out to be successful. According to Standish Group’s 2015 Chaos report, 66% of technology projects (based on the analysis of 50,000 projects worldwide) end in partial or total failure. More surprisingly, these statistics have been the same for the last five years, the report shows. Furthermore, 17% of large IT projects go so badly that they can threaten the very existence of a company.
On Average, Large It Projects Run 45% over Budget and 7% over Time, While Delivering 56% Less Value than Predicted
Despite such failures, huge sums continue to be invested in IT projects and written off. For example the cost of project failure across the European Union was ┚¬142 billion in 2004.
It Projects Always Come with an Element of Risk, but There Are Huge Gains to Be Had If We Can Just Avoid Some of the Factors That Contribute Frequently to Project Failure
What makes a IT project successful, though?
According to the Standish Group, a successful project is on time, on budget and has satisfactory results (value, user and sponsor satisfaction, and meets target requirements). Other measures of success are widely known and accepted as true such as getting requirements right, providing effective leadership, and having full support and engagement from sponsors and users. Without these, it’s unlikely that any project would succeed.
But there’s more to success than what is widely known and, apparently, rarely followed. To reduce the risk of failure for your tech project, here are six key actions to take on the road to success.
1. Executive Vision and Involvement
Without a Executive Senior Sponsor Its Easy for Projects to Fail with the Organizational Resistance That Accompanies Large Change
Executive involvement is a primary variable in predicting the success of an IT project. Having a leadership team aligned across an organization articulating the purpose, value, and rationale for a project goes a long way towards getting stakeholders and end-users pulling the proverbial rope in the same direction.
2. Have a clear view of scope and timetable
Oftentimes, a tech project flops because its developers fail to plan and rush forward with an idea. However, some project managers plan so meticulously that they end up falling behind and lose momentum. The best approach is somewhere in between.
Interviewing team members, documenting requirements, prioritizing what is “mission critical” versus “nice to have,” getting agreement across stakeholders can feel like a never-ending cycle. As a result, requirement gathering has fallen out of fashion with many organizations in the past few years.
However, the ideal starting point for a successful technology project is to have a set of fundamental requirements with sufficient detail to develop against.
Requirement Gathering Is Labour-intensive and Challenging but Remains the Roadmap and Measuring Stick for Software Projects
This approach allows you to maintain sight of the business benefits as well as engaging stakeholders and responding to their feedback. In combination with a clear business case, a well-defined set of requirements also simplifies design and testing, two areas where projects tend to go sideways.
Ensure that requirements for the project are clearly defined and agreed upon among stakeholders and that you have a way to track, measure, and manage changes in requirements as appropriate during the project.
3. Define how you will deliver
When it comes to delivering a major project, one size does not always fit all. All products are customizable to some degree, so what might have worked in one company may not work in another company.
That being said, why reinvent the wheel if it’s already proven successful? Sometimes it can be more beneficial to use an existing off the shelf solution. Whichever direction you take, choose the delivery mode that works best for your company.
4. Risk Identification and Management
Every project has risk and there are many factors out of your control. People leave the organization, for better or worse, leadership changes, budgets get cut, however, many risks to projects can be mitigated or even eliminated with some forethought and on-going management. For example, do you have the resources you need to deliver the project (resource risk). Are project goals clearly understood and requirements clearly defined (scope risk). Do you have a realistic project plan and timeline (time risk).
Mitigating Risk Is a Combination of Science and Art, and Always a Balancing Process
5. Test your product again and again
A technology project is something that should overall support your business. It should not be something that dictates and forces you to change your operations. If this is happening, you should shift gears and focus on tweaking the technology, rather than lowering expectations and adopting less ideal requirements.
Adequate testing is a must for any tech project. While some features may be fine with automated testing, the best approach is to have a dedicated testing team. Testing activities should mirror those with the development team throughout the project’s lifetime. With thorough testing, a project should deliver with less design flaws or missing requirements.
6. Prioritize simplicity and performance
Developers often leave the external look and feel of a product to the wayside thinking these things are not necessities for the consumer to enjoy. However, user experience is absolutely critical to the success of the project.
Developers must consider things like storage, network requirements, processing speeds and overall performance in order to satisfy the customer. If users are going to have to wait for an extended period to allow information to load, there must be a good reason for the wait, otherwise they won’t return for future products.
Simplification and Improved Efficiency Is What Adds Value
Ultimately, using the product should be a smooth and intuitive experience. Additionally, tools and alternative routes must be placed logically without being intrusive. The process can be complicated, but the finished product should emit simplicity. After all, that’s what makes companies like Apple so successful. Simplification and improved efficiency is what adds value.
A Day in the Life of a Project Manager
We all know that project managers are responsible for managing projects through to completion while remaining on time and within budget, but how exactly do they do it? What does a typical day look like for a project manager?
Here’s a sample of what a typical day might look like for a project manager.
The Early Bird Gets the Worm, Success Comes to Those Who Prepare Well and Put in Effort
8.30 am: Starting the day
After settling in for the day’s activities, it’s time to plan out the day. Start up the computer, email clients, draft team schedules, organize time sheets and create the to-do list.
To-do lists help managers and their teams stay on track. If a manager notices that one team member has yet to deliver an assignment, they can address this issue first thing in the morning; otherwise, delays can build up and affect the project. Likewise, lists help managers see the next course of action for projects.
9:15 am: Time to get moving
Efficiency is a must and there is no time to be wasted in project management. After a quick review of project plans and to-do lists, the manager must be prepared to get his team moving right away.
Round up team members, review the project’s current position and emphasize the next course of action. In order to get the team moving on assignments, strong project managers set deadlines throughout the day.
Morning team meetings are also necessary to make sure each member understands the project and their assignments. It’s also a time to answer any questions for clarity or to get feedback or concerns from individuals.
While daily group meetings can be important, they are not always necessary and can be counter-productive. If the team is on the same page and everyone is ready to tackle the tasks of the day, spend a short period re-grouping so that the team can get on and complete their assignments. There’s no need to spend hours planning and reviewing.
10 am: Meetings, meetings, meetings
More than one project manager will be more than likely in the office and they will all need to work together for the benefit of the programme. This is why meetings with other managers and higher ups are necessary in a project manager’s day.
Meetings allow each project manager to go through the status of their respective projects and to track the weekly schedule and other deadlines. It is also a time to address any business-critical tasks that might come up.
It’s worth considering that only 7% of communication is spoken. The other 93% is made up of tone (38%) and body language (55%). So although facts and figures are easily communicated via email, letter or phone, an actual discussion or negotiation is best handled where you can see the other person and therefore are able to see for yourself what their tone and body have to say on the matter.
10:30 am: Tackling the small stuff
Meetings will be on and off throughout the day for project managers, which is why it’s important to tackle the small tasks in between appointments. Small tasks include wrapping project reports, booking future meetings, answering correspondences with other colleagues, reviewing items and team reports among other things.
It’s also important to schedule post-mortem meetings with the project team to review the success of projects in order to apply any lessons learnt to future projects.
11 am: Project kick-off meeting
When one project ends, another begins, which means it’s time for yet another project kick-off meeting. Kick-off meetings can take on various forms, depending on the type of business. However, they all share the same basic needs.
Every individual involved with the new project should be in attendance and have the latest version of project specifications in written form. As project manager, it might be wise to send this to team members several days before the kick-off meeting to ensure everyone has time to review.
During a kick-off meeting, it’s important to review the overall goals for the project, both commercial and technical details, break down functional requirements, and spend time for discussion and questions. By allowing team members to communicate questions and share ideas, it opens the lines of communication and may bring up potential concerns that might have been missed in the initial planning stages.
Conclude kick-off meetings with a definition of the next steps and be sure individuals are aware of deadlines and their assignments.
11:30 am: Reviewing project specs, budgets and scheduling submissions
Other important tasks to tackle in between meetings include reviewing specifications and budgets and schedules for future projects. If a project begins that day, now would be a good time to apply the finishing touches to the project documentation before presentation and approval.
When it comes to establishing project estimates and budgets, a project manager must bring all of his experience into play in order to create a realistic budget that includes wiggle room for factors such as project complexity, team experience and skill levels, stakeholders involvement, time needed, third-party services needed, and contingency allowances among many other things.
It’s Not Easy to Squeeze in a Lunch Break, but It’s Often Necessary for the Project Managers Health and Sanity
12 pm: Lunch
In the midst of the seeming chaos that is project management, be sure to fuel up for the rest of the day’s work. Lunch is also a great span of time to check in with team members to make sure they are still on target for later-day deadlines.
2 pm: Launching the next project
After digesting lunch, it’s time to launch the next project. Get the whole team ready to go live and present the project to the client and begin testing aspects of the project in a live environment. It’s a time to spot problems and address them and review schedules and deadlines and other project needs.
3 pm: Time for everything else
The final two hours in the office are spent addressing everything else on the project manager’s plate. A project manager must be good at multi-tasking and whatever duties couldn’t be accomplished throughout the day are reserved for the final hours. Most of the time, lower priority tasks are reserved for afternoon hours. These tasks could include project update meetings with various departments, logging finances, reviewing monthly project schedules, approving time sheets, writing weekly reports, sorting purchase orders and communicating with suppliers. There are so many other small to-do list items that project managers are responsible for, but are often overlooked.
Spending Time at the End of the Day as Well as the Beginning to Review and Plan Will Only Help You Succeed as a Project Manager
5 pm: Review the day, plan for tomorrow
Before heading home, review the day’s list and what’s been accomplished. Anything that has been added or was left unfinished should be scheduled for the next day or sometime throughout the week. Reflect on your team’s work and clear the email inbox. Use a filing system that makes sense for you and be ruthless about deleting stuff. The beauty of an empty inbox is a thing to behold. It is calming, peaceful and wonderful.
How To Deliver On The Promise of MegaProjects
Due to the large scale and outlook attached to them, mega-projects have a large opportunity for failure. Typically, the failure begins at the outset of the project, whether that be due to poor justification for the project, misalignment among stakeholders, insufficient planning, or inability to find and use appropriate capabilities.
Underestimated costs and overestimated benefits often offset the baseline for assessing overall project performance. This is why it is important for organizations to first establish social and economic priorities before even considering what projects will answer their needs. Once social and economic priorities are established, only then can a project be considered. Selecting projects must be fact-based and transparent in order to ensure accountability with stakeholders and the public.
Successful Megaprojects Must Have Robust Risk-analysis or Risk-management Protocols
It’s also important to maintain adequate controls. Successful megaprojects must have robust risk-analysis or risk-management protocols and provide timely reports on progress relative to budgets and deadlines. Typically, progress is measured on the basis of cash flow, which is less than ideal as data could be out of date and payments to contractors do not correlate construction progress. Instead, project managers should deliver real-time data to measure activity in the field. For example, cubic meters of concrete poured relative to work plans and budgets.
Overall, improving project performance requires better planning and preparation in three areas: doing engineering and risk analysis before construction, streamlining permitting and land acquisition, and building a project team with the appropriate mix of abilities.
Project developers and sponsors should put more focus into pre-planning such as engineering and risk analysis before the construction phase. Unfortunately, most organizations and sponsors are reluctant to spend a significant amount of money on early-stage planning because they often lack the necessary funds, they are eager to break ground and they worry the design will be modified after construction is underway, making up-front designs pointless.
However, it’s proven that if developers spend three to five percent of capital cost on early-stage engineering and design, results are far better in terms of delivering the project on-time and on-budget. This is because through the design process, challenges will be addressed and resolved before they occur during the construction phase, saving both time and money.
It’s not unusual for permits and approvals to take longer than the building of a megaproject. However, if developers look to streamline permitting and land acquisition, that would significantly improve project performance. Best practices in issuing permits involve prioritizing projects, defining clear roles and responsibilities and establishing deadlines.
In England and Wales, developers applied these approaches to cut the time needed to approve power-industry infrastructure from 12 months to only nine months. On average, timelines for approval spanned four years throughout the rest of Europe. Likewise, the state of Virginia’s plan to widen Interstate 495 in 2012 was able to cut costs and save hundreds of homes thanks to land acquisition planning by a private design company.
Investors and Owners Must Take an Active Role in Creating the Project Team
When it’s all said and done, projects cannot deliver the best possible return on investment without a well-resourced and qualified network of project managers, advisers and controllers. Investors and owners must take an active role in creating the project team.
It’s not enough to have a vague overview of what the project might look like in the end. Instead, it’s necessary to review risks and costs and draft a detailed, practical approach to tackle various issues. An experienced project manager cannot do it all alone. The project team must include individuals with the appropriate skills, such as legal and technical expertise, contract management, project reporting, stakeholder management, and government and community relations among others.
Failure to Properly Plan for These Projects Could Have a Negative Impact on Society
While mega-projects are important in filling economic and social needs, failure to properly plan for these projects could have a negative impact on society. Take Centro Financiero Confinanzas (Venezuela), the eighth tallest building in Latin America at 45 stories, located in the financial district of Venezuela’s capital, Caracas for example.
To those unaware of its history, the Centro Financiero Confinanzas is actually home to over 700 families, a “vertical slum” that is a truly fascinating example of reappropriation of space in an urban environment. An ironic symbol of financial failure that was intended to represent the unstoppable march of Venezuela’s booming economy.
It’s much more than an unbuilt building, bridge or tunnel, failed mega-projects are a blow to the economic growth and social improvements of communities around the world.
The Good, the Bad and the Ugly of Project Management for Christian Leaders
It’s Monday afternoon at the office. The week has only begun, but you’re already swimming in a sea of memos, spreadsheets, and schedules. Just as you’re daydreaming about what leftovers you might reheat for a late dinner, your boss pokes his head into your office. He or she mutters something about quotas and deadlines before he or she drops the bomb about a “little project” he or she needs you to complete by the end of the week. And just like that, you know you’ve been handed a nightmare but for whatever reason accept the challenge.
“According to the Cranfield School of Management in the Uk, 68% of Projects Are Destined for Failure Before They Even Start.”
The lack of project management training or experience of many Christian leaders can be an enormous stress factor for them. Whilst natural organizational ability is enormously helpful, in itself it is no guarantee of any project being both successful and low stress.
What is a nightmare project? It’s something we’re all familiar with. The boss assigns us some vague task and a deadline but leaves the means to a solution up to our creative intellect.
So how do you solve the problem of this dreaded “project”?
1. Understand the scope of the project
First things first, create a list to layout your ideas on how to go about the job at hand. Write out questions you might have that need to be answered, people you might need to work with or talk to in order to understand what work must be done.
Without fully understanding what work must be done, it is impossible to accurately estimate a project’s schedule or budget.
After creating a list, share your ideas with colleagues. Work with peers who have the same goal and share the same work ethics as you. Too often, when faced with an unrealistic project, we tend to work with just about anybody who wearily agrees to have their name on board. The enthusiasm of a new project quickly fades when actual work is needed. Instead of “How can I help?” were met with “I’m busy right now” and “Can it wait until next week?” The sponsor, project manager, and project team must share a common understanding of the scope of the project.
2. Get estimates from the people who will be doing the work
To avoid the stress of friendly fatigue, create a solid plan of action with your co-workers. Assign duties and responsibilities and set a deadline for each task.
4. Re-estimate as soon as you realize an estimating assumption was wrong
Don’t get discouraged if people and other things fall through. Even though it’s frustrating with the broken promises, missed deadlines, mistakes, and poor quality outputs. As soon as you realize a mistake was made, assess the impact and re-estimate the project.
“Unfortunately When Project Managers Spend the Majority of Their Time Trying to Achieve the Unachievable, the Result Is Frustration and Potential Burnout.”
But say you’ve followed those steps and were able to remain positive throughout this grueling week. You completed the assignment, whether enthusiastically or completely drained of all energy, only to be told the higher-ups decided to go a different route and don’t need the results of your project after all. “Good effort, though,” your boss tells you as he or she hands back your laminated report.
If you find yourself in this situation, just remember to never say “yes” to a “little project without first taking a look at what you’ve been handed.
Small Projects Often Mean Greater Innovation
Small projects often embody more innovation than larger more costly or high profile ones.
Innovation is a wide concept that includes improvements in processes, products and services. It involves incorporating new ideas which generate changes that help solve the needs of a company and so increase its competitiveness. That’s hardly big news. But what may be surprising to some is that innovation has itself, well, innovated and it isn’t what it used to be.
New materials and energy, design approaches, as well as advances in digital technology and big data, are creating a wave of innovation within the construction industry. These new ideas are increasingly often tested and proven on smaller and agiler projects. Investing time and money is well spent on these ideas and technical improvements can then be used on large-scale developments.
Here are three exciting small projects:
Milan, Italy
1. Vanke Pavilion – Milan Expo 2015
The corporate pavilion for Vanke China explores key issues related to the theme of the Expo Milano 2015, “Feeding the Planet, Energy for Life”.
Situated on the southeast edge of the Lake Arena, the 800-square meter pavilion appears to rise from the east, forming a dynamic, vertical landscape.
The original tiling pattern would have resulted in thousands of ceramic tiles of different sizes and shapes. The resulting complexity and lack of repetition could have led to high costs and a longer erection time.
Working with Architects Studio Libeskind, Format Engineers (Engineering Designers with backgrounds in structural engineering, coding, mathematics, and architecture) changed the pattern from thousands of different tiles to less than a dozen and simplified the backing structure generating huge cost savings. Format Engineers also proposed ‘slicing’ of the building and then fabrication of the primary structure of steel ribs using low tech flat steel plate elements. These were then used in a series of long span portalised frames reminiscent of the ribs and spars in traditional boat building resulting in a column-free area for the display of Chinese Cultural Heritage.
The frame was built to a budget and without difficulty ahead of the neighboring Expo buildings.
Building Size
12 meters high
740 mq gross floor area (exhibition, service & VIP levels)
130 mq roof terrace
Architect: Studio Libeskind
Engineer: Format Engineers
2. Oxford Brookes Rain Pavilion
The Rain Pavilion is an urban forest sculpture forming the front entrance to Oxford Brookes University’s Architecture Faculty.
“Rain Pavilion artwork is a sensory experience for the community.”
The complex form required extensive wind modeling and comprehensive structural analysis within a generative 3d model. This was allied with Format Engineers in-house code for the self-organization of voids and their subsequent redistribution.
.At each stage of the design process different modeling and analysis techniques were used to exploit the form and to optimise the structure. The considerable challenges posed by the slenderness of the structure and its dynamic behavior under wind were resolved by combining Computational Fluid Dynamics (CFD) (a branch of fluid mechanics that uses numerical analysis and algorithms to solve and analyze problems that involve fluid flows) with a generative design environment. Conceptual design introduced the ideas of tubular stems and folded steel canopies, both of which were perforated by circular holes arranged to allow the interplay of light and water through the structure. The voids were generated using a self-organizing process.
Grasshopper (a graphical algorithm computer 3-D modeling tool) was used to produce a mesh that could include the voids in both the stems and the petals.
The Rain Pavilion is designed to celebrate the sound of rain, and the noise of water interacting with different sections of the installation is part of the experience of passing through it. The structure has a design life of five years and can be transported to other locations.
Architect: Oxford Brookes University, Oxford, UK
Engineer: Format Engineers
3. KREOD Pavilion
The KREOD pavilions were first erected on the London Greenwich Olympic site in 2012. Easily rearranged, three pod-like pavilions were formed with a wooden structural framework comprised of an open hexagonal composition.
Standing three meters tall, each double-curved wooden shell enclosed a footprint of 20 square meters, totaling 60 square meters. A waterproof tensile membrane sealed the interior from the elements fully portable with demountable joints, the individual components can be stacked for efficient transportation.
Chun Qing Li the architect required a temporary exhibition or function space that could be erected and demounted mostly by hand and by untrained staff. The quality of finish needed to echo that of handmade furniture and had to be low cost and quick to erect. The continuously changing double curved form of the enclosure meant that in theory, every nodal connection was different. A conventional bolted solution would have cost hundreds of pounds per fixing. Format Engineers suggestion of a ‘reciprocal’ jointed timber grid shell required standard bolts which equated to a fraction of the normal cost. It also allowed the structure to be built from simple and light flat timber elements.
The structure used Kebony timber throughout, a sustainable alternative to tropical hardwood. As this material had not previously been used in a structural context Format Engineers undertook load testing of the material and the connections at the University of Cambridge. The timber was fabricated using CNC routing (a computer controlled cutting machine) allowing a highly accurate fit between members and basic erection on site.
Architect: Chun Qing Li
Engineer: Format Engineers
The Good, the Bad and the Ugly of Requirements Management
Most project managers know the importance of requirements management. Without a solid foundation and grounding in the subject, requirements management quickly turns towards the complex and difficult side.
Why Manage Requirements?
In the final analysis, all projects are completely driven by requirements. Requirements are usually not cast in stone. Stakeholders gather insights and more knowledge of their true needs with time. This means that they can change their minds about requirements, no matter how late in the game. Requirements should therefore be managed proactively in anticipation of change.
However, if requirement definitions are not set up properly in the first place, expect that the quality of delivery will suffer, along with more schedule delays than imagined, and a big drain on the budget.
Broad project requirements help to establish a baseline for objectives. Subsequent change requests would thus require approval by the right authority; a change control board is usually set up to investigate and approve changes to requirements. The objective of baselining is not to prevent or discourage changes, but to ensure that approved changes are relevant and deserve the priorities assigned to them.
The simplest way for project managers to reduce the probability of missing critical requirements is to hold requirements review sessions to ensure that stakeholders understand the requirements and that any ambiguities, inconsistencies and omissions are identified and addressed to facilitate requirements approval or sign-off.
However, when inaccurate requirements are in play, team members end up reworking those activities multiple times. The only sensible course of action is to deliver requirements up front in an accurate manner. That way team members will be able to immediately identify any missing components early in the project lifecycle.
It’s vitally important to employ tools designed to assess requirement quality at the beginning of the project. These tools will help to identify any requirements that are vague or missing early enough to improve the changes of success for the project. Even simple tools like guidelines and checklists can solve major problems later on. You may also consider automated tools, depending on your level of technical expertise.
The Good, the Bad and the Ugly of Requirements Management
Good Requirements
Requirements that meet the “good” standard are ones that anyone can easily evaluate to quickly and clearly determine that all the needs have been accurately met by the project.
The common criteria used by project teams to properly evaluate requirements is as follows:
Verifiable: Ensure that all deliverables are able to be evaluated to ensure they have met all necessary requirements. Verification techniques such as modelling, analysis, review by experts, simulations, and demonstrations or testing.
Testable: Requirements are able to be assessed using the most basic of all criteria. This includes quantitative measurement like “pass or fail.”
Traceable: Requirements should be tagged to specific sources. Examples are compliance requirements, best practices, industry standards, and use cases.
Clarity: All statements should be presented in unambiguous ways so the cannot be interpreted differently by different team members.
Bad Requirements
Bad requirements are marked by their incompleteness and lack of clarity. They are hard to understand and implement. They generally possess these characteristics:
Inconsistency: Without clarity, you’ll find requirements that are in conflict with other requirements! This is very frustrating because there’s no way that either one will ever be satisfied.
Non-valid: These are requirements that team members simply cannot understand. They will never be able to accurately assess or approve non-valid requirements.
Non-ranked: These requirements have not been correctly prioritised. Without proper ranking, it’s difficult for team members to be able to assess them properly.
The risk to the project not meeting the clients expectations is not something that will ever be entirely removed. However, having a specific criteria upon which to benchmark a project is a great way to reduce this risk.
Risks fall into two main categories. Systemic risk is inherent to the nature of the work and cannot be avoided. The non-systemic risk is a bit different and relates from the activities in the project itself. One of the greatest of all non-systemic risks is that of bad requirements management.
Teams that wish to reduce the risk of the project not meeting the clients expectations substantially are best served by establishing specific requirements in the initial stages. Common goals like being “on time and on budget” while maintaining a high level of quality will require dedication from teams members who have eliminated as much non-systemic risk as possible.
When you’re next involved in a project where requirements come up in a discussion, always pay careful attention to the good, the bad, and the ugly that could result without proper due care and attention.
Top 10 Project Management Myths Debunked
Since the dawn of time, mankind has used myths to make sense of the uncertainty that surrounds us. In the early 1990s a lot of people believed that project management was the best kept secret in business. However, because project management was not seen as a prevailing profession at that time, it suffered from a lack of awareness which was in a sense, a double edged sword. Those who were knowledgeable in the practice of project management became extreamly valuable to organisations and pioneers for the profession.
These early adopters were able to convince organisations that project management practitioners were needed. Myths around project management began to form in the business community and as the role of the project manager was unclear, questions were raised as to what project management was and what it could offer organisations.
The definition of the word myth is a “widely held, but false belief or idea.” Here, we’re going to examine 10 of the most pervasive PM myths that have emerged.
Myth #1 – Contingency pool is redundant
This is one of the most ‘mythical’ myths that has plagued the industry for a long time. Coupled with the tendency to presume that ‘real work’ is tantamount to implementation or building something concrete and you have the perfect recipe for project disaster. The thought pattern behind this approach typically originates from budget constraints and/or having unrealistic expectations. As we all know, or should know, the unexpected happens quite regularly. An effective contingency plan is important as it aims to protect that which has value (e.g., data), prevent or minimise disruption (e.g., product lifecycle), and provide post-event feedback for analysis (e.g., how did we fare? did we allocate funds correctly?).
Myth #2 – Project Management software is too expensive
If your idea of project management software involves purchasing servers, and purchasing a software application from a major vendor for a small practice with 10 practitioners then, yes, it is too expensive. If, however, you have gone cloud and elected to use a powerful web-based project management solution (such as Smartsheet), then you are likely to save thousands of pounds while reaping the benefits of a pay-as-you-go price structure. The present, and future, lie in cloud solutions that provide equal, or superior, functionality at a fraction of the cost.
Myth #3 – Project Management methodologies will slow us down
Project managers have a reputation of using process-intensive methodologies that favour ideology over pragmatism. In some instances this may, indeed, be the case when there is a mismatch between a specific project management approach and the organisation’s acutall needs (e.g., a process-driven method, such as PRINCE2, may not be appropriate for a slightly chaotic environment that favours an adaptive approach, such as Scrum). So, in sum, put down the paint roller (“Project Management isn’t for us!”) and take out your fine-bristled brush (“The Critical-Chain method may not be our cup of tea, but Agile on the other hand”¦”).
Myth #4 – Facts and figures are more important than feelings and perceptions
While facts are very important, projects are often derailed and sabotaged because of false perceptions. The PM must pay attention to both fact and fiction to navigate through turbulent organisational change.
Myth #5 – Project managers need to be detail oriented and not strategic in nature
While it is of the utmost importance for the project manager to understand how to read the details of the project, they must also understand how the project supports organisational objectives. Having a strategic perspective adds great value to the skill-set of the project manager.
Myth #6 Rely on the experts in everything that you do
It is true, we do need to rely on the experts but our trust can not be a blind faith. The job of the project managers in this area is twofold. First we must extract information and second we must verify that the information is accurate. A good example of this is asking a planner to provide an estimate on the effort required to perform a task. In some instances team members forget to include tasks which ultimately results in a faulty estimate.
Myth #7 All the battles have to be fought and won so that we can succeed
Project managers sometimes make the assumption that they need to stand firm to get the job done, however, coming to compromise on a particular issue is often a better course of action in order to win the war.
Myth #8 Project Managers can wear multiple hats
Wearing different hats can be extremely confusing. This is especially true if the project manager is asked to be a business analyst or technical expert on top of serving in their PM role. They end up doing both roles with mediocrity. When we “wear two hats” we essentially tell ourselves that both hats fit on one head at the same time. However, what happens if the demands of two roles conflict and what assurances do we have that we’re managing the inherent conflict of multiple roles and the risks the roles introduce? Sadly, multiple roles become more common as we move up the management hierarchy in an organisation, and that’s exactly where potential conflicts of interest can do the most harm.
Myth #9 Once the risk register is created, it’s full speed ahead
Risk management provides a forward-looking radar. We can use it to scan the uncertain future to reveal things that could affect us, giving us sufficient time to prepare in advance. We can develop contingency plans even for so-called uncontrollable risks, and be ready to deal with likely threats or significant opportunities. Too often, it’s not until a catastrophic event occurs and significantly impacts project progress that ongoing risk reviews are conducted.
Myth #10 Project managers can not be effective in their role unless they have specific technical expertise in the given field that the project falls within
You don’t need to be an engineer to manage a construction project or a IT technician to manage a software development project. All you need is a fundamental understanding with strong PM skills to manage the team. Experience in the field helps but does not guarantee success.
Project management is challenging enough without the myths. The profession has come a long way since the 1990s and some of these myths are fading. However, we still see remnants of them in one form or another. Great projects cut through false assumptions and confusion, allowing their teams to make smart decisions based on reality.
These are just 10 project management myths, what are yours?
13 Basic Facts You Should Know about Modular Homes
Modular homes sometimes referred to as “factory-built construction“, encompass a category of housing built in sections typically at a factory location. These houses must conform to local and regional building codes for the country the buyer plans to situate the dwelling.
Just like site-built housing, construction teams build modular homes to last and increase in value over time. As the factory finishes building sections of the house, each piece is transported to the homeowners build site on large truck beds. Local building contractors then assemble the house and inspectors ensure the manufacturer has built your residence to code. Most customers find that modular housing is less expensive than site-built homes.
1. Benefits of Construction
One of the benefits of construction is that manufacturers build them indoors in an enclosed factory setting, where the materials used to build the homes are not subject to adverse weather during construction.
Most building contractors can finish erecting a house in as little as 1-2 weeks, though it may take up to 4 weeks or more for local contractors to finish building the dwelling on-site once it has been delivered.
2. Differences Between Modular and Site Built
Modular homes are not the same as site-built homes, which contractors create 100% at the build site. That means the
contractor must collect all the materials for a house and built it on-site. Like a modular home, the site-built home must conform to all regional, state and local building codes. Many refer to site-built construction as stick-built homes. Stick built housing is also well-built and designed to last a lifetime.
3. Difference Between Modular and Manufactured
Manufactured housing is another form of factory construction. Many consumers have mistakenly referred to these homes in the past as mobile homes. Others refer to manufactured homes as trailers. Manufacturers do build these houses in a factory like modular homes on a steel chassis.
The manufacturer then transports sections of the home to the building site as completed. These dwellings are usually less expensive than both modular housing and site built housing, in part because they don’t come with a permanent foundation. Trailers and mobile homes are more likely to depreciate than modular or site built homes.
4, Advantages of Modular Construction Over Site Built
Modular homes offer many advantages over traditional site built dwellings. Many consider modular homes a hybrid breed of housing. Not a manufactured house and not a site built house, these homes offer consumers multiple benefits including costs savings, quality and convenience. In many ways modular homes surpasses site built housing in quality and efficiency.
Modulars have grown up. They are more and more becoming a mainstream selection for first time and secondary homebuyers. Most people now realise they don’t’ have to give up design quality or customization to buy a prefabricated house. One of the biggest misconceptions people have of prefabricated housing is they are look alike. “Boxy” is not a word that can begin to describe prefab dwellings. In fact, more suitable descriptions of these buidlings would include: “Elegant, durable, customised and high-class”. Many people find they can afford to include more specialization and customization when they buy a factory built house over a traditional stick built construction.
5. Cutting-edge Designs
Looking for a building design with a little pizzazz? You need to check out the latest architectural designs associated with prefabricated buildings. Firms are now building more elegant and unique designs to meet the increasing demands of selective customers. People are selecting modular designs over stick built designs to build their dream homes.
6. Customised Design and Modification
There are hundreds of companies that offer modular prefabricated construction kits and plans, and most employ various architects and specialized designers to help customize your home. That means you have more choices and a wider selection of designers to choose from. If you don’t find a style you like with one designer you can often move onto another, without even switching manufacturers.
7. Huge Range of Selection
Its always best to select a home that matches your lifestyle and design preferences.
8. Rapid Customisation
These are often the ideal selection for homeowners in need of a speedily designed homes. You simply can’t build a dwelling faster. Site built housing can take months to design and build. A manufacturer can design and place a prefab house in a few short weeks. You can pick from just as many different styles as you would a site built home if not more, but don’t have to wait weeks for contractors to build your custom house.
9. Precise Budgeting and Timing
Yet another benefit of these designs is the lack of guesswork involved. You don’t have to worry about how something will look. You know that everything will arrive to the build site complete and you will know the exact outcome. You also don’t need to worry about unexpected expenses, which is commonly the case with site built homes. With a prefabricated house, you know exactly what your home will cost and can control that cost from the point of buying to final construction. This isn’t the case with stick built housing. With stick built housing you also have to worry about surprises in the middle of construction. It isn’t uncommon for example, for a contractor to quit in the middle of a project. If this happens you have few choices.
Your home will sit partially built until you are able to find a new construction team. This alone may cost you valuable time and money.
10. Improved Energy Efficiency
Many prefab houses also come with what manufacturers call the “Energy Star” certification. This is a national company that promotes energy efficiency. Buildings with this label use 30-40 percent less energy yearly than traditional stick built housing.
This saves you time and money. Some key features of prefabricated housing that help improve energy efficiency include tight installation, high performance and weather resistant windows, controlled air systems and duct systems, upgraded air-conditioning and heating units and use of efficient lighting and heating appliances. As a bonus, these features not only save on annual energy costs but also improve the quality of your indoor air. Think energy efficiency isn’t significant? Think again. Over the lifetime of your house you could save thousands of pounds in energy bills by buying a prefabricated dwelling.
11. Design Modification is Easier
Most prefab homemakers now use computer aided design systems when conducting operations. This adds to the efficiency of construction and improves the appearance and architecture of homes. Prefabricated construction ranges from plain vanilla styling to intricate and complex modern designs.
12. On Time and on Budget
Perhaps the two biggest features or benefits of prefabricated housing that manufacturers hone in on are the speed that they can be built with and the competitive pricing they can offer on the final product. This is one reason that modular homes are gaining popularity.
13. Appreciate in Value
These dwellings also appreciate much like site built housing designs. Most homeowners are interested in building value in their house over time. Prefab housing afford you the opportunity to do this (keep in mind however much appreciation is dependent on real estate location). Select a good build site and your house will gain significant value over time. Other factors may also affect appreciation including landscaping and how well the house is cared for year after year. These factors also affect site built housing. Unlike mobile homes, which depreciate, a modular homeowner can expect to gain value from their home year after year. Study after study suggests that modular homes appreciate just as well as site built homes. They are also just as easily insured and financed.
As far as risk goes, you are no more at risk buying prefabricated housing than site built construction.
Modular Home Facts
- Modular homes appraise the same as their on-site built counterparts do.
- Modular homes can be more easilly customised.
- Most modular home companies have their own in-house engineering departments that utilize CAD (Computer Aided Design).
- Modular home designs vary in style and size.
- Modular homes are permanent structures – “real property.”
- Modular homes are considered a form of “Green Building.”
- Modular homes are faster to build than a 100% site-built home.
- Home loans for modular are the same as if buying a 100% site-built home.
- Insuring your modular home is the same as a 100% site-built home.
- Modular homes can be built to withstand 175 mph winds.
- Modular homes can be built for accessible living and designed for future conveniences.
Would you consider a modular home for yourself, or are you more of a traditionalist?
Project Manager or Scapegoat?
Big Project Failures Claim Their Victims in Spectacular Fashion
You’ve just been assigned a high visibility failing project and you’re working round-the-clock to get the work to the client on time, despite the fact that the job bears barely any resemblance to the project you initially discussed. The scope keeps creeping, the risk and issue alerts are coming in thick and fast, the project is already two months past the original deadline, the clients are getting antsy even though they’re yet to provide you with various key pieces of information in order to baseline the project. Is this your chance to shine and showcase your skills?
If You Don’t Know Where You’re Going, You Will Probably End up Somewhere Else – Laurence J. Peter
If you manage to turn the project around and the project is successful, you will attract many fathers. However, if the project fails, you will probibly be offered up as the sacrificial lamb (scapegoat), there is absolutely no way around it. A high percentage of projects fail to deliver useful results, that’s a fact.
Project managers are regularly blamed for schedule delays and cost overruns for projects they inherit by no fault of there own, however, in most cases, the fault for such issues rarely lies with just one person.
Sufficient data has been gathered to indicate that blockers such as unsupportive management, senior sponsorship or low resource availability are as much to blame for project failure as ineffective stakeholder management or poor communication.
Capture all decisions
The only way to protect yourself is to ensure that you capture all decisions made in the project. In most cases many of these decisions will have been made by people above you. While you can influence decisions made by people under you. Get into the habit of building a dashboard early in the project and updating it each week with actuals. Also consider using a standard repeatable technique to analyse the health of your project.
Constrained resources
If you are in a project where resources are constrained, clearly outline the resources that you require to deliver the project in terms of time, scope, budget, risk and quality. If resources are pulled from your project, clearly articulate the affect of that in delivery terms and measure that to time delayed or cost added.
Risk and issues register
Operate a strong risk and issue register, ensure it is both visible and assessable so your team can actively participate in updating it.
Stop the project
Always remember, cancelling the project is not always a failure. There can be many reasons why the project may no longer be desirable now. If you have done your job well, you can be really successful by ensuring a project does not continue to meander along, wasting time and money when there is no possibility of completing the project.
Organisational change management
Unfortunately, the same can’t be said when there are organisation change management issues. While there are a few project managers who feel their jurisdiction ends at the triple constraint, most now understand the need to achieve the expected benefits from their projects.
So when is it fair to blame a project manager for poor implementation of a project’s deliverables, this is assuming that they were employed at the beginning of the project?
- If they didn’t perform good stakeholder analysis during the project initiation stage as well as at regular intervals.
- If they turned a blind eye and deaf ear to factors that could impact value achievement
- If they didn’t insist on a clear communication strategy and progressive information sharing with relevant stakeholder groups.
- If they didn’t engage influencers from key stakeholder groups throughout the project lifecycle.
- If the organisation management deliverables were not built into the project’s scope definition and work breakdown structure.
Assuming the project manager was appointed at the start of the project and had undertaken all of the above, what are invalid reasons to blame the project manager if the project failed?
- A lack of timely resource availability or commitment by the organisation
- Directives to the project manager to not engage certain stakeholder communities
- Ignorance by senior sponsors to management risks raised by the project team
- A management decision that is too bitter a pill to swallow in spite of how much it has been sugar coated
Have any comments or stories that could help to expand this article?
