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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”.

Table 1: The analyzed data on the highway project at the South-South zone in Nigeria.
Table 1: The analyzed data on the highway project at the South-South zone in Nigeria.

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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 1: Abundance of failed highway projects at south-south zone, Nigeria.
Figure 1: Abundance of failed highway projects at south-south zone, Nigeria.
Figure 2: On-going failed highway projects
Figure 2: On-going failed highway projects

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.

Figure 3: Successful on-going highway projects
Figure 3: Successful on-going highway projects

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.

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How to Cope with a Mis-Sold Job

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?

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15 Shocking Project Management Statistics

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.

  1. 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)
  2. 75% of IT executives believe their projects are “doomed from the start. (Geneca)
  3. 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)
  4. A third of all projects were successfully completed on time and on budget over the past year. (Standish Group)
  5. 80% of “high-performing” projects are led by a certified project manager.  (PricewaterhouseCoopers, Insights and Trends: Current Programme and Project Management Practices 2012)
  6. One in six IT projects have an average cost overrun of 200%.  (Harvard Business Review 2004)
  7. 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)
  8. More than 90% of organizations perform some type of project postmortem or closeout retrospective. (The Standish Group: CHAOS Research Report 2013)
  9. 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)
  10. 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)
  11. Only 64% of projects meet their goals. (Project Management Institute: Pulse of the Profession 2015)
  12. 60% of companies don’t measure ROI on projects. (KPMG New Zealand: Project Management Survey 2010)
  13. The United States economy loses $50-$150 billion per year due to failed IT projects. (Gallup Business Review)
  14. 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)
  15. 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.

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A Day in the Life of a Project Manager

Managing Daily Routines: A Day in the Life of a IT 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.

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65% of Mega-projects Fail

There’s a reason why  Mega-projects are simply called “Mega-projects.” Extremely large in scale with significant impacts on communities, environment and budgets, mega-projects attract a lot of public attention and often cost more than 1 billion. Because of its grandiose, a successful mega-project requires a lot of planning, responsibility and work. Likewise, the magnificence of such projects also creates a large margin for failure.

Mega-projects Come with Big Expectations. But a Project’s Success Is Often in the Eye of the Beholder

Despite their socio-economic significance mega-projects – delivering airports, railways, power plants, Olympic parks and other long-lived assets – have a reputation for failure. It is thought that  over optimism, over complexity, poor execution, and weakness in organizational design and capabilities are  the most common root causes of megaproject failure.

Blinded by enthusiasm for the project, individuals and organizations involved with mega-projects often miscalculate the complexity of the project. When a mega-project is pitched, its common for costs and timelines to be underestimated while the benefits of the project are overestimated. According Danish economist Bent Flyvbjerg, its not unusual for project managers who are competing for funding to massage the data until it is deemed affordable. After all, revealing the real costs up front would make a project unappealing, he said. As a result, these projects are destined  for failure.

For example, building new railways spanning multiple countries could prove to be disastrous if plans are overly complex and over-optimized. Such a large-scale project involves national and local governments, various environmental and health standards, a wide range of skills and wages, private contractors, suppliers and consumers; therefore, one issue could put an end to the project. Such was the case when two countries spent nearly a decade working out diplomatic considerations while building a hydroelectric dam.

Complications and complexities of mega-projects must be considered thoroughly before launch. One way to review the ins and outs of a project is through reference-class forecasting. This process forces decision makers to look at past cases that might reflect similar outcomes to their proposed mega-project.

Poor execution is also a cause for failure in mega-projects. Due to the overoptimism and overcomplexity of a project, it’s easy for project managers and decision makers to cut corners trying to maintain cost assumptions and protect profit margins. Project execution is then overwhelmed by problems such as incomplete design, unclear scope, and mathematical errors in risk assessment and scheduling.

Researchers at McKinsey studied 48 struggling mega-projects and found that in 73 percent of the cases, poor execution was responsible for cost and time overruns. The other 27 percent ran into issues with politics such as new governments and laws.

Low productivity is another aspect of poor execution. Even though trends show that manufacturing has nearly doubled its productivity in the last 20 years, construction productivity remains flat and in some instances has even declined. However, wages continue to increase with inflation, leading to higher costs for the same results.

According to McKinsey studies, efficiency in delivering infrastructure can reduce total costs by 15 percent. Efficiency gains in areas like approval, engineering, procurement and construction can lead to as much as 25 percent of savings on new projects without compromising quality outcomes. This proves that planning before execution is worth its weight in gold.

We Tend to Exaggerate the Importance of Contracting Approach to Project Success or Failure

Finally, weaknesses in organizational design and capabilities results in failed megaprojects. For example, organizational setups can have multiple layers and in some cases the project director falls four or five levels below the top leadership. This can lead to problems as the top tier of the organizational chain (for example, subcontractors, contractors and construction managers) tend to focus on more work and more money while the lower levels of the chain (for example, owner’s representative and project sponsors) are focused on delivery schedules and budgets.

Likewise, a lack of capabilities proves to be an issue. Because of the large-scaled, complex nature of mega-projects, there is a steep learning curve involved and the skills needed are scarce. All the problems of megaprojects are compounded by the speed at which projects are started. When starting from scratch, mega-projects may create organizations of thousands of people within 12 months. This scale of work is comparable to the significant operational and managerial challenge a new start-up might face.

In the end, it seems that if organizations take the time to thoroughly prepare and plan for their mega-projects, problems like overcomplexity and overoptimism, poor execution, and weaknesses in organizational design and capabilities could be avoided. After all, mega=projects are too large and too expensive to rush into.

 

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Why Should I Hire a Project Manager for My Church Project?

Is it worth hiring a project manager when any seemingly knowledgeable pastor or church member might do?

The truth is, project managers can be a valuable asset to any organization. Whereas the average church member who is only familiar with certain tasks might be overwhelmed by the complexity of major organizational assignments, project managers are trained to handle programs with elaborate factors such as high budgets, increased manpower and layers of duties.

An Astounding 97% of Organizations Believe Project Management Is Critical to Business Performance and Organizational Success. (Source: PricewaterhouseCoopers)

On the flip side, some professional bodies disagree, arguing that professionals like pastors, marketers, and accountants are able to manage projects just as well as any project manager with some effort.

Barely over Half (56%) of Project Managers Are Certified  (Source: Wrike)

“It’s a raging debate,” said Tony Marks, author of the 20:20 Project Management guide.

“Some industries, such as oil and gas, are hesitant to hire outside project management specialists because they may lack industry knowledge. Instead, these industries prefer to employ technical experts and put them through project management training.”

“The danger is that these  people  are more likely to get  sucked into their comfort zone dealing with the nitty-gritty and technical detail they understand and are fascinated by when they should be managing the project,” said Tony Marks.

In addition to being trained to juggle tasks efficiently, project managers spend an enormous amount of time honing their skills. Much more goes into the craft than obtaining Prince2 or APM certifications.

According to Mike Savage of Thales Training and Consultancy, the International Project Management Association requires its professionals to have at least 15 years of experience and training. The association has four grades from D to A. At the A level, project managers must have a minimum of five years project management experience, five years of program management and five years of portfolio management.

“So to Say That Anyone Can Be a Project Manager Is like Saying Anyone Can Be a Brain Surgeon, Said Savage.”

But just because there are individuals specializing in project management doesn’t mean non-specialists can’t learn the techniques as well. Ian Clarkson of training course provider QA encourages everyone to learn project management practices.

“The skills, leadership, planning and stakeholder engagement techniques are vital to all disciplines,” he said.

“Projects which are run by engineers with project management training are less likely to be successful than the reverse,” said Lloyd’s Register energy program director Roger Clutton. “If there is a lack of technical expertise that will show up in the risk assessment. But a lack of project management skills is much less likely to be detected.”

With that, it seems that the argument on whether or not hiring an outside project management is necessary will continue. But the debate only seems relevant to rival professions as there is projected to be 15 million new project management jobs within the decade. (Source: Project Management Institute).

No matter how you look at it, though, it seems that trained and experienced project managers  must be  worth their weight in gold.

 

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Top 6 Most Impressive Megaprojects of 2015

Megaprojects  are crucial to the future of most cities, states, and individual livelihoods,  however, they also  attract a lot of public attention because of the substantial impacts they have on  communities,  environments, and government budgets.  The objective of these projects is to unlock higher growth paths for the economy, as such, they require care in the project development process to reduce any possible  optimism bias  and  strategic misrepresentation.

The problem is that these projects often go off the rails, either with regard to budget, time or both.

The risks associated with MegaProjects,  those costing 1 billion or more,  are well documented. In one influential study, Bent Flyvbjerg, an expert in project management at Oxford’s business school, estimated that nine out of ten go over budget.

The first factor is that the size of a MegaProject  can be so large and unique that it is difficult to model the costs and logistics. Another factor is that MegaProjects  are backed by governments which are not typically known for their success in budgeting or efficiency.

 

In today’s post, we’ve identified  the Top 6  most impressive MegaProjects of 2015. These MegaProjects  will transcend time and continue to bestow wonder upon new generations.

1. Mall of the World, Dubai

Mall of the World in Dubai was announced in July 2014, location in Al Sufouh district, along Sheikh Zayed Road, different from Mohammed bin Rashid City.
Mall of the World in Dubai was announced in July 2014, location in Al Sufouh district, along Sheikh Zayed Road, different from Mohammed bin Rashid City.

Dubai  has a very ambitious project on its hands.  Dubai’s Mall of the World will have its very own Oxford Street and Broadway. It will also have galleons and waterfalls.  However, the most challenging part of this project is that the area will be covered by a giant retractable roof during the summer months and be climate-controlled creating the world’s first temperature controlled city.

Dubai Mall of the World Set to Put Uae Retail ’20 Years Ahead’ of Gulf Region

Launched with a fanfare by the emirate’s ruler, Sheikh Mohammed bin Rashid al Maktoum, it is the first state-sponsored mega-project to emerge from Dubai since the pre-crash bubble. After years of stalled projects  the big plans are back and they are more ambitious than ever before.

It is thought the huge construction will attract 180 million visitors a year and developers hope it will secure Dubai’s futures as a tourism hub.

2.  Mall of America, Minnesota
Mall of America, Minnesota
Mall of America, Minnesota
 

Mall of America, Minnesota
Mall of America, Minnesota

The  Mall of America  (MoA) is a gigantic  shopping mall  owned by the  Triple Five Group  and is by far the largest mall in the United States. However, the $325 million expansion of the nation’s largest shopping center is now underway. The project consists of a luxury 342-room hotel, an office tower and more than 50 shops and restaurants. Some 1,000 jobs are expected to be created during the construction phase of the project, and 2,500 permanent jobs from retail, hotel and office operations.

The  Triple Five Group, owned by Canada’s  Ghermezian family, owns and manages the Mall of America, as well as the  West Edmonton Mall. MoA  is located in  Bloomington,  Minnesota  (a suburb of the  Twin Cities).

3. Zurich North America, Chicago, IL

Rendering of Zurich North America’s new headquarters in the northwest suburbs of Chicago
Rendering of Zurich North America’s new headquarters in the northwest suburbs of Chicago
Rendering of Zurich North America’s new headquarters in the northwest suburbs of Chicago
Rendering of Zurich North America’s new headquarters in the northwest suburbs of Chicago

The $333 million site is currently  under construction and will be the largest build-to-suit office project in Chicago. Zurich a north america insurance company headquarters includes a 735,000 square foot building rising to 11 stories at its tallest, shaped something like the letter A resting on its side.

Zurich looked at a multitude of factors and in the end made the decision that investing in a new state of the art regional headquarters would be the right choice. The project  is due to be completed  late summer of 2016.

4. Dubai World Central Airport

Al Maktoum International Airport
Al Maktoum International Airport
Al Maktoum International Airport
Al Maktoum International Airport

This massive  $32 billion structure sent its first commercial jet into the air in late October  2013.  The project isn’t scheduled for full completion until 2027  and is  expected to become the world’s busiest airport,  however,  with plenty of other contenders quickly taking shape in Asia and the Middle East, it’s has  stiff competition.

Dubai World Central Airport is  expected  to shuttle 160 million passengers through Dubai every year  making it the busiest airport on earth.

5. Bao’an International Terminal 3

Bao’an International Terminal 3
Bao’an International Terminal 3
Bao’an International Terminal 3
Bao’an International Terminal 3

Bao’an plays a pivotal role in the Pearl River Delta: It serves both Shenzhen and Hong Kong, via a connecting ferry. Terminal 3 is an expansion project designed by the Italian architect Massimiliano Fuksas. The centrepiece of the expansion is a new runway, which is built on a 108,000-foot piece of land reclaimed from the River Delta.

6. Crossrail  

CROSSRAIL
Crossrail, London England

Crossrail tunnelling began in 2012 and ended at Farringdon, London in May with the break through of tunnelling machine Victoria. Eight 1,000 tonne tunnelling machines bored 26 miles or 42 km of new 6.2m diameter rail tunnels under London.

London is the fastest growing capital city in Europe and today it is home to 8.6 million people with the population expected to reach 10 million by 2030. TfL’s work is critical to supporting the continued growth and regeneration of London.

As we reflect upon these impressive feats by mankind, we can only imagine  what the next big wonder will  be. Is it the secretive Nicaragua canal? Could it be Elon Musk’s proposed  Hyperloop  concept? Or perhaps it will be a  new state of the art high speed train developed by China, USA or the UK?

Did we miss one?  Please let us know by  commenting below.

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6 Project Management Taboos Christian Project Leaders Should Break

6 Project Management Taboos You Should Break

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.

A taboo is an activity that is forbidden or sacred based on religious beliefs or morals. Breaking a taboo is extremely objectionable in society as a whole. We have  isolated six  project management taboos that are common in PM discussions.

The upside of understanding and acting on  these most common project management taboos  is tremendous. Not only will your project success rate increase, you’ll also improve satisfaction among internal customers.

1. ‘The customer is always right’ is wrong

The project  sponsor is a role in project management, usually the senior member of the project board and often the chair. The project sponsor will often be a senior executive in a corporation who is responsible to  the  business for the success of the project.

However, project  sponsors are people, and they can be wrong. This taboo prevents project managers  from openly examining the actions of senior individuals  in power. In its more stringent form, this taboo can even convert “lessons learned” activities into simple exercises in fawning praise for the vision of our leaders. When we cannot question the actions of the powerful, the organization  can have difficulty finding its way out of trouble. This problem is most severe when the actions (or failure to act) of an Executive sponsor  in power is the issue.

Ignoring a Problem Is, Enabling the Problem

2. ‘Ignore your problems and they will go away‘  

The perfect employee. The perfect manager. The perfect workplace. Wouldn’t it be nice if that existed?  When it comes to managing people, one of the best things we can do is to realize that nothing will ever be perfect. There will always be problems. It’s how we deal with them that matters the most,  so do not ignore them, because  they won’t miraculously go away. The problem only gets worse, frustration levels increase, productivity suffers  and  complacency will set in. They fester the longer you ignore them and ultimately compound the cost of the project.

You aren’t fooling anyone, people know when there is a problem! Occasionally things can get better by themselves, however,  the majority of the time this doesn’t happen.

If you do something wrong, it’s about how well you fix it,” says GlassHouse Technologies’ Scannell. “Most people batten down the hatches and close up shop. Understanding when you’re starting to fail and quickly being able to engage as many stakeholders as possible to fix it is critical.”

Emotional Intelligence for Project Managers – Nice to Have or Necessity

3. Showing emotion is a sign of weakness

If only it were just about defining scope, creating a project plan and tracking costs.

Project Management obviously encompasses all those things, but it’s also about relationship development, team building, influencing, collaborating, and negotiating often in very complex environments.

In most workplace environments project managers  have difficulty showing feelings. Project managers  cannot even discuss them. It’s a pity — feelings are part of being human. When we can discuss feelings, we  can manage them, and we can use them as indicators of morale, future performance, or motivation. This project management taboo can limit the effectiveness of project retrospectives. In projects, strong feelings are common. They play an important role in determining project performance. Yet feelings are rarely discussed in project retrospectives, and this omission can prevent project managers  from truly understanding the evolution of the projects they are  supposedly managing and examining. However, whatever form a project takes there will always be people involved and where there are people there are emotions.Emotions influence people’s actions, their behaviors and their responses to the emotions of others. So welcome to the world of ‘emotional intelligence’.

The concept of Emotional Intelligence (EQ) was first popularised by Daniel Goleman in 1995 with his book, “Emotional Intelligence: Why it can matter more than IQ.”

Just Jump Through the Hoops, Don’t Try to Fix the World

4. Project Managers should play by the rules

Most organizations have processes that nearly everyone understands are outdated  and counterproductive, however,  when project managers dismiss  these processes, neglect to  model their costs to organizations, the outdated  processes are then very difficult to change.

Indeed, the taboo is part of the cultural infrastructure that enables these dysfunctional processes to persist. If project managers discuss them openly, they  might find that upgrading them could provide significant payback.

Keep Complaining! It’s Good for You!

5. Keep complaining! It’s good for you!

We’ve all know that rush of relief you feel as soon as you wrap up a major rant. This is  the national art and sport of the UK.  However, complaining is viral misery.  Back in 2006, an American pastor named Will Bowen launched a campaign he called “A Complaint Free World”. Drawing on the philosophy of Arthur Schopenhauer, Alessandri pushes back against the assumption that complaining is only worthwhile if it gets concrete results; there’s no point in it, the received wisdom goes, if what you’re bemoaning is beyond your control.

Peace Is Not Absence of Conflict, It Is the Ability to Handle Conflict by Peaceful Means

6. You must  take sides in a  political conflict

Just keep neutral. It is possible to be respectful to (and respected by) your colleagues by staying neutral.  Politics are as old as civilization and have continued to be a source of fascination since Machiavelli wrote The Prince, a treatise on how to acquire and retain power, in the 16th century.

There are a lot more project management taboos that aren’t included listed here.  We are interested in your thoughts and suggestions?

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Axelos CEO Peter Hepworth in the Spotlight

Project Journal had the privilege of interviewing AXELOS previous CEO Peter Hepworth. Peter provided us with an insight into his role and AXELOS as a whole in October 2015.

AXELOS CEO Peter Hepworth

Peter joined AEXLOS as CEO in July 2013 and was previously Managing Director for Activision Blizzard  a $400 million turnover and $150million EBIT business.   In 2014, Activision Blizzard was the fifth largest gaming company in the world by revenue.

Peter is an economics graduate, chartered accountant, with an M.B.A. from Cranfield and A.M.P. from INSEAD.

What is AXELOS?

AXELOS is a joint venture set up in 2014 by the Government of the United Kingdom and Capita, to develop, manage and operate qualifications in best practice, in methodologies formerly owned by the Office of Government Commerce (OGC).

AXELOS promotes best practice frameworks such as PRINCE2 and ITIL and is developing a cyber resilience best practice portfolio later in 2015.

How does  AXELOS  differ from APM?

AXELOS is an independent organisation, allowing the user community to focus more on the content of frameworks and guidance without much interference. The firm puts a heavy focus on the guidance given, ensuring the content is fuelled by good ideas to keep the ITIL structure up to date. But while the business has a combination of access to one of Britain’s largest corporations and the UK government, more than 75% of publication sales and Prince2 certification is sold outside of the UK, a trend that is growing faster due to emerging markets.

The company varies its training approach. Its Portfolio, Programme, and Project Management Maturity Model (P3M3), for example, encourages users to assess their performance against benchmarks. Mike Acaster, PPM portfolio manager, says: “PRINCE2 is applicable to many sizes of organisation, but sometimes it’s better to be a bit more specific. It’s about tailoring advice for that context. In some cases it has been tailored, and people don’t realise it’s PRINCE2 – you have to scratch the surface.

How do you view the future of project management?

After years of being associated with large engineering and construction projects, project management has moved beyond infrastructure. Firms across different countries and sectors now acknowledge the need to manage their processes and keep costs and timing under control. As businesses begin to recognise the importance of project management worldwide, questions are being asked about the standards required. AXELOS is focusing on how these can apply to different staff and situations, as well as how workers can develop a career path in project management.

Is AXELOS popular aboard?

“It’s hard to measure the adoption of our products, but if you look at the number of exams taken, you can see strong growth outside the UK, as well as in the UK,” he says. “In the US there’s a lot of interest, and the biggest international user of PRINCE2 is the UN, to make sure their aid development is correctly managed.

“Our Managing Successful Programmes (MSP) product was used to deliver the Olympic Games. I was in Tokyo after they had won the right to host Tokyo 2020 and the focus was ‘When can we have MSP?’ They want to see the same success as London has had.”

What are  the future priorities for AXELOS?

“Career path. For the individual, it’s about how your career can develop. There’s a different skill set between project and portfolio management, and no linear route. It comes to modularisation. We have been able to offer different dimensions.

Cyber Resilience is next. Companies need to put more emphasis on improving their reactions to cyber attacks rather than continuing to focus on prevent. Although there are a number of standards and best practices in place to prevent cyber attacks, firms are still falling foul, and this is usually due to the internal attitude and people, rather than technology.

New products launched in 2015 include PRINCE2 Agile; Cyber Resilience Best Practice and Continuing Professional Development (CPD).

What’s next?

Young people are learning things online and changing how it is done. We want our members to feel proud about having AXELOS qualifications and have launched digital badges so that project professionals can display their mark of professionalism across popular social networks.

Digital badges are tokens that appear as icons and are awarded to signify learning achievements in a way that can be easily verified and shared online. Our members digital badge’s will hold and display information about their professional development activity as well as the issue date and an expiry date.

Individual workers, organisations and entire industries can benefit from badges. Badges are a new form of currency – a more transparent and efficient way to communicate the acquisition and development of workplace skills.

From AXELOS to Microsoft, IBM to Oracle, many leading companies have adopted digital badges as a form of recognition for continuing professional development and certifications. The individuals who earn these badges enthusiastically share them to LinkedIn, Twitter, Facebook and other online destinations. Once shared, anyone can verify the authenticity of and learn more about the individual’s abilities. That shareability and verification can make all the difference in a competitive job market, whether an individual aspires to move ahead in her current position or move into a different job.

We also want continued openness from AXELOS, even more community collaboration and specific actions to further increase the relevance of AXELOS in the future.

Where do you believe project management is heading?

Anyone can benefit from project management guidance. “We are all project managers now,” he says.

 

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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?  

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Project Manager or Scapegoat?

You Need to Stop Pointing That Finger

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?

  1. If they didn’t perform good  stakeholder analysis during the project initiation stage as well as at regular intervals.
  2. If they turned a blind eye and deaf ear to factors that could impact value achievement
  3. If they didn’t insist on a clear communication strategy and progressive information sharing with relevant  stakeholder groups.
  4. If they didn’t engage influencers from key stakeholder groups throughout the project lifecycle.
  5. 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?

  1. A lack of timely resource availability or commitment by the organisation
  2. Directives to the project manager to not engage certain stakeholder communities
  3. Ignorance by senior sponsors to management risks raised by the project team
  4. 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?

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How Prince2 Is the Ticket for Success for German Manufacturing Company Scheidt & Bachmann Gmbh

Image 3.1 PRINCE2 Best practice award for the best German PRINCE2 project 2014 - presented by BPUG.

AXELOS, the owner of the Global Best Practice Portfolio, has profiled an award-winning PRINCE2 ® project in its latest case study.   Scheidt & Bachmann GmbH, the global solutions provider, describe how PRINCE2 – the world’s most popular project management methodology – helped them design and develop the hardware and software required for a new type of ticket machine for the German rail company Bayerische Oberlandbahn – and manufacture and install 64 of the new machines to a challenging deadline.  

Originally a mechanical engineering company, Scheidt & Bachmann was established in 1872 and remains a family owned company. With 24 subsidiaries and more than 2,600 employees worldwide, Scheidt & Bachmann now provides technology solutions across a number of sectors. The fare collection systems division was created in 1978 and is a global leader in fare collection technology.

The award-winning project was centred around a new German rail infrastructure – the Meridian Line – that would open in December 2013 and be operated by Bayerische Oberlandbahn. Scheidt & Bachmann received an order in March 2013 to supply and install new ticket machines for the Meridian Line by 14 December 2013, the non-negotiable date for new stations to be operational. This posed a challenge to deliver a new customer-specific model of ticket machine in time. The project required new hardware design and the production of a prototype device for customer approval, as well as significant software development.

Mike Acaster, PPM portfolio manager for AXELOS said: “This is a fantastic example of PRINCE2 being used to ensure that a complex and demanding project is delivered as effectively as possible. Among the benefits of using PRINCE2, Scheidt & Bachmann found that applying PRINCE2 principles and processes increased common understanding and simplified decision making where differing priorities were involved.

“The use of PRINCE2 improved delivery and customer satisfaction in a project that, from the start, had challenging and immoveable deadline dates while introducing technical innovation.”

Figure-3-1-Meridian-project-stages

Daniel Weber, head of technical project management at Scheidt & Bachmann said: “PRINCE2 provided the perfect management approach for a project of this sort. Without an effective project management approach in place this delivery would have been extremely challenging. There were many complex requirements that needed to be successfully met in a very short timeframe, without any room for error. In the end, we delivered an excellent result for Bayerische Oberlandbahn – and have produced a new product which we are already marketing to other customers.”

Jürgen Kindler, project manager for Bayerische Oberlandbahn said: “Due to Scheidt & Bachmann’s effort and determination we were able to complete the project successfully within the time frame. Problems were communicated openly and solved quickly, which has greatly contributed to its success.  

The full case study can be found on the AXELOS website: https://www.axelos.com/case-studies-and-white-papers/use-of-prince2-by-scheidt-bachmann-gmbh

Project Journal  staff were  not involved in the creation of this content.

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34 Thought Provoking Change Management Quotes

Change is good. It’s also often hard. The status quo can be so much more comfortable. But to succeed in business, you must run toward change.  Companies most likely to be successful in making change work to their advantage are the ones that no longer view change as a discrete event to be managed, but as a constant opportunity to evolve the business

Here are 34 thought provoking change management quotes:

  1. It is not the strongest or the most intelligent who will survive but those who can best manage change —  Charles Darwin
  2. One key to successful leadership is continuous personal change. Personal change is a reflection of our inner growth and empowerment — Robert E. Quinn
  3. Change before you have to — Jack Welch
  4. You must embrace change before change erases you.
    — Rob Liano
  5. Change before you have to — Jack Welch
  6. Too few leaders have the emotional fortitude to take responsibility for failure.
    — Paul Gibbons, The Science of Successful Organisational Change: How Leaders Set Strategy, Change Behaviour, and Create an Agile Culture
  7. People don’t resist change. They resist being changed! — Peter Senge
  8. If you want to make enemies, try to change something — Woodrow Wilson
  9. The key to change is to let go of fear — Rosanne Cash
  10. The world hates change, yet it is the only thing that has brought progress — Charles Kettering
  11. There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things — Niccolo Machiavelli
  12. Change is the law of life and those who look only to the past or present are certain to miss the future — John F. Kennedy
  13. Even those who fancy themselves the most progressive will fight against other kinds of progress, for each of us is convinced that our way is the best way.
    — Louis L’Amour
  14. Whosoever desires constant success must change his conduct with the times — Niccolo Machiavelli
  15. Your success in life isn’t based on your ability to simply change. It is based on your ability to change faster than your competition, customers and business — Mark Sanborn
  16. Change your thoughts and you change your world — Norman Vincent Peale
  17. If you don’t like change, you will like irrelevance even less —  General Eric Shinseki (U.S. Army Chief of Staff, 1999-2003)
  18. We now accept the fact that learning is a lifelong process of keeping abreast of change. And the most pressing task is to teach people how to learn — Peter Drucker
  19. Whosoever desires constant success must change his conduct with the times
  20. — Niccolo Machiavelli
  21. All is connected, no one thing can change by itself
    — Paul Hawken
  22. Learn to adjust yourself to the conditions you have to endure, but make a point of trying to alter or correct conditions so that they are most favorable to you — William Frederick Book
  23. We would rather be ruined than change
  24. We would rather die in our dread than climb the cross of the moment  and let our illusions die  — W. H. Auden
  25. Every generation needs a new revolution  — Thomas Jefferson
  26. Never doubt that a small group of thoughtful, concerned citizens can change the world. Indeed it is the only thing that ever has  — Margaret Mead
  27. I’ll go anywhere as long as it’s forward  — David Livingstone
  28. Life isn’t about finding yourself. Life is about creating yourself  — George Bernard Shaw
  29. Adaptability is about the powerful difference between adapting to cope and adapting to win— Max McKeown
  30. You can’t build an adaptable organization without adaptable people–and individuals change only when they have to, or when they want to — Gary Hamel
  31. People will try to tell you that all the great opportunities have been snapped up. In reality, the world changes every second, blowing new opportunities in all directions, including yours — Ken Hakuta
  32. A wise man adapts himself to circumstances, as water shapes itself to the vessel that contains it — Chinese Proverb
  33. The price of doing the same old thing is far higher than the price of change — Bill Clinton
  34. Each of us has the opportunity to change and grow until our very last breath. Happy creating — M.F. Ryan

Change or die? we  choose life! How about you?  

 

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