He couldn’t remember his family members’ phone numbers and the police officer gave him one phone call. The night before, he drank too much, got into an argument, and started yelling at the top of his lungs outside in the street. His phone fell and was lost in the drama. He was arrested for public disturbance, spent the night in jail and woke up in a daze. Again the officer said, “You can make one phone call”.
He rattled off the number of the church by heart to the officer and said, “Ask for the Pastor. They know me there. Tell them I’m in trouble and need some help”.
Today, It’s a great thing to be a part of a church and ministry where the community knows the phone number by heart. On Sabbaths, I meet people who know the number of Adventist Radio London more than their family member’s numbers. Daily we get calls from our community, far and wide, who are in trouble. I am grateful to be part of a church and ministry where somebody in their lowest state, humiliated by bad decisions, disease, addiction, or trouble, can say, “Call them; they know me there”. No matter how badly you have messed up or who you may have become, let us be grateful for a God who we can call on, no matter the situation. He knows you by name and claims you. You belong to Him.
“I have summoned you by name. You are mine.” (Isaiah 43:1).
Let’s Pray
Yahweh, thank you for allowing us to be a lighthouse for those in trouble. Father, I am grateful that you call me by name and claim me, no matter the mess I find myself in. I am grateful that I belong to you. In Jesus’s name, Amen.
Throughout December, we’ve looked at the scandals of the advent. The definition of the word scandal is an action or event regarded as morally or legally wrong and causing public outrage. From the King becoming to an unmarried teenager, to being born in Poverty, then the murders surrounding Jesus’ birth. What about the expensive elaborate gifts given to a humble king? Then having to be moving like a fugitive to avoid the law of the land. The greatest of all scandals must have been the insurrection at the cross. Jesus’ scandalous death on the torture instrument called the cross would cause outrage and cast a long shadow over his life and his followers.
What makes the Christian faith different from any other, is how Christ’s followers all have scandalous lives just like the Advent and the crucifixion. The Christian faith has the boldness to declare that we were lost in sin and through Christ’s death on the cross the world was reconciled to God. The Christian faith has the audacity to declare that those who are Jesus’ disciples should take up the cross…
I suppose the ultimate scandal is that suffering can be used by God for our good. Suffering is not only redemptive in the life of Jesus. It is redemptive in our own lives. Christ will use our sufferings to establish his kingdom, witness to his gospel, and work greater holiness in our personal lives. On this day as we kick off the new year, here’s a resolution worth keeping: Take up Christ’s cross of obedience, face the hardship that such a life of discipleship creates, and follow your Lord with everything you have – loving your neighbour as yourself. HAPPY NEW YEAR!
“Anyone who does not take his cross and follow me is not worthy of me.” (Matthew 10:38).
Let’s Pray Yahshua, thank you for your willingness to bear my burdens. Father, give me the strength to bear the burdens of others and take up the cross of discipleship and all that it brings for your sake. In Christ’s name, Amen.
A nine-strong committee look pretty similar: eight white men and white woman. This is the body that guides Britain’s economy and that is suppose to represent the diverse community the UK now represents.
Their monthly votes on interest rates ultimately determine how far our money goes.
Yet they don’t look anything like the people whose lives they have so much influence over, why is that? Its because the Bank of England has a Diversity Problem
The UK population is made up of different ethnicities. 87% of people are White, and 13% belong to a Black, Asian, Mixed or Other ethnic group and Women make up half of the UK population. Astoundingly 0% of the Monetary Policy Committee belong to a Black, Asian, Mixed or other ethnic groups and women make up one ninth of the committee. Shocking!
Mark Carney current governor is in fact, the 120th in a continuous line of white men to have headed the Bank.
It’s plain obvious the Bank has a diversity problem. But this is not a isolated issue as many other organisations in Britain have this very same problem.
The Public Accounts Committee (PAC) said last month that the Bank was some way off its diversity targets for next year “with little evidence the gap is closing quickly enough”.
Joanna Place the Bank’s chief operating officer also said: “In terms of diversity and inclusion, we have done a lot more than just gender and ethnicity.
“We have a number of staff networks. We have inclusive events. We have a wellbeing policy. We have done a cognitive diversity survey. We have started to look at social mobility,” she added.
Unfair
The Bank’s search for a new governor kicked off earlier this week and many are hoping that this could herald the start of a new era with a black governor at the helm for the first time in its history. However, Wendy Carlin, a professor of economics at University College London, says the problem is not with the Bank of England, but the economics profession itself.
Minorities quit Bank of England as it fails on diversity
More troubling were the committee findings into the proportion of BAME employees at the organisation, with an increase of just 3 per cent between 2015 (15 per cent) and 2018 (18 per cent), and no increase between 2017 and 2018.
Just 5 per cent of employees working at senior management level came from a BAME background in 2018. This is not a coincidence.
Ethnic minority employees are leaving the Bank of England in disproportionate numbers and feel less comfortable with the organisation’s culture, according to internal research.
The Bank’s non-executive directors admitted that the “BAME [black, Asian and minority ethnic] resignation rate was above that for the Bank as a whole” and said that it was actively addressing the problem, according to minutes of a recent meeting. But that’s not enough.
Statistics already show that BAME workers in UK are third more likely to be underemployed — report and probibly less likely to study economics, let alone get a job in the sector. TUC says study highlights a waste of black, Asian and minority ethnic talent and urges more effort to tackle discrimination at work
“We know this is part of a much bigger story. BAME workers are more likely to be unemployed, paid less, and aren’t getting enough of the top jobs. Employers and the government cannot afford to ignore these problems. They must now take real action to tackle underemployment and pay discrimination.”
The former business secretary Sajid Javid had called on businesses to do more to support the careers of black and minority ethnic (BME) workers and commissioned Ruby McGregor-Smith, the chief executive of the facilities management company Mitie, to undertake an independent review of BAME progression at work. The review is due to report by the end of this year.
Dr Heffernan says the profession itself should try to make sure it is attracting the widest possible pool of applicants.
“How you word a job will define someone’s right to apply. If you’re not getting the right kind of applicants then describe the job differently and see what happens.”
Christian’s can help
If the Church put more effort into actively encouraging its members to work in professions that would benefit greatly from a strong moral compass, and then support them in those roles, just think what benefit to our country there might be.
Facts about the The Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) is made up of nine members — the Governor, the three Deputy Governors for Monetary Policy, Financial Stability and Markets and Banking, our Chief Economist and four external members appointed directly by the Chancellor.
External members are appointed to make sure that the MPC benefits from thinking and expertise from outside of the Bank of England. A representative from HM Treasury also sits with the MPC at its meetings. The Treasury representative can discuss policy issues, but is not allowed to vote. They are there to make sure that the MPC is fully briefed on fiscal policy developments and other aspects of the Government’s economic policies, and that the Chancellor is kept fully informed about monetary policy.
Each member of the MPC has expertise in the field of economics and monetary policy. Members do not represent individual groups or areas — they are independent.
MPC members serve fixed terms, after which they may be either replaced or reappointed.
The PAC has called on the bank to provide a report setting out the additional steps it will take to ensure it meets its diversity targets by June 2019.
Godinterest’s Manifesto of Ethics
To promote freedom of religion — Violations of religious freedom are increasing globally in scale, depth and blatancy. Carried out by both government and non-state actors, they range from the mundane to the extreme (e.g. genocide).
To promote freedom of expression and internet freedom — Freedom of expression is an essential part of a properly functioning democracy and a free society. People should be free to express themselves both online and offline. But in many parts of the world freedom of expression is under threat.
To be a inclusive social network — We aim to share multiple voices and perspectives. We prohibit and will remove Offensive material that has been reported to contain (e.g., Pornographic material, hate speech, encouraging violence against others, etc)
To respect one’s right to remain anonymous — Our users place their trust in us to keep them safe, and, in some cases, anonymous. We view safeguarding that trust and protecting our users’ private information as vital to what we do.
All around me are troubled hearts. It just seems that around every corner, in every news story, on social media, and in my small little burg hearts are broken, abused, and trampled. Are all of our prayer petitions for naught? Where is God?
Last night at my book club gathering at our local public library, a former student saw me and quickly came in for a big hug. Gosh, how they grow. I said, “You’re a senior now, right?” He told me he was and how he had plans to enters trade school in Nashville, Tennessee this fall. I was over the moon. You see, most of my students were minorities from severely impoverished homes. I preached setting goals, getting an education, and championing poverty. I, myself, was born in the government projects with a struggling mom, an alcoholic father, and four siblings. I so often felt like I was seeing a classroom full of me as I taught. I had figured out the code of breaking the cycle of poverty: God, education, and service. I held a precious key that I hoped they would accept. Sadly, not all of them do.
He then said, “Did you hear about DTay?” A shadow crossed his face. I said, “No, what’s up?” He lowered his head and eyes and replied, “They found him dead and beaten to death on Old Mill Road by the tracks down from the Eastside.” My heart crumpled within my chest. Only 18 years old and a life tragically ended. These things shouldn’t happen in rural, small towns in Tennessee like mine, but they do. It is a statistical fact. In the U.S., black males ages 15-34 number one killer is a homicide. My heart is troubled. We hugged again and I told him to get his education and my prayers were with him and all my students until my last breath.
This morning I opened my devotional to begin my day. The first verse was John 14:1 “Do not let your hearts be troubled.” I felt like Thomas. I’m lost and I do not know the way out of this mad, mad world that young men die so brutally and often. Let’s not forget cancer, addictions, the shrinking middle class, divorces, and abject poverty. Then I heard, “I am the way. I’m always with you. I’ve gone before you to create a better place. There are many rooms in my Father’s house.” I took a deep breath remembering my student. I know that those rooms are for lost youth, broken people with addictions, and those who struggle to eek by on this earth. My joy has always come from knowing God is for and with me. This isn’t our last stop. If you have a troubled heart today, I urge you to say a simple prayer, “God help me.” God is within those banged up hearts, just open your heart to Him.
Thinking back to the rock celebrity from the 1970s, Alice Cooper, and your mind will probably conjure up images of a creepy long-haired guy with runny black eye makeup who plays with snakes. In an age when hard rock was associated with all things evil, Alice Cooper seemed to epitomise that genre. His style was macabre theatre and he played it up with all his might.
But it wasn’t always that way.
Raised as a pastor’s kid (and the grandson of an evangelist) Alice Cooper grew up in Detroit and Phoenix as Vincent Damon Furnier. He even served in the church as a pre-teen. But as a teen, Furnier wandered off from the church to begin his rock career, eventually adopting the band name “Alice Cooper” as his own. In many respects, he became a completely different person.
Inspired by the Beatles, the Rolling Stones, the Kinks, and The Who, Cooper’s band jumped quickly into fame in the 1960s and 1970s with showmanship as well as musical talent.Drugs and alcohol came naturally along with the mix, while violent stage antics began to draw more and more attention. Glam-rock costumes, fake blood, torture of baby dolls, and even mock human executions became trademarks, leaving audiences wondering what could be next.
The effect was controversial in public, to say the least, while Cooper’s life was on a downward spiral in private. Hospitalising himself for alcohol addiction in the late 70s, he wasn’t able to kick his habit of illicit substance abuse. Barely able to remember recording some of his albums in the 80s, Cooper was so addicted that his wife filed for divorce (they then reconciled). He began acting in B-grade horror films as well as appearing as a dark personality in many other formats.
Since then, things have drastically changed again.
The faith of his childhood never went away and Cooper eventually hit rock bottom. He looked around himself and saw his drinking buddies, including Jim Morrison and Jimi Hendrix, realised they were dying before they were 30, and didn’t want the same for himself.
When he bottomed out, Cooper knew where to turn. He credits his full recovery to God.
Appearing as King Herod in NBC’s live version of Jesus Christ Superstar for Easter 2018, Alice Cooper’s dark experience likely allows him to identify with Herod’s dark side more than the average person.
Now 70 years old, Cooper declares that he and his wife are both Christians who read the bible and pray every day. Alice’s wife, Sheryl, also grew up as the child of a clergyman. The couple has remained faithful to each other throughout their 42-year marriage and are thankful that their three kids have never had any problems with alcohol or drugs.
Alice Cooper doesn’t consider himself to be particularly “religious” but he does go to church every Sunday. He also heads up a faith-based organisation in Phoenix, called Solid Rock, which ministers to teens in partnership with a local church.
Cooper says that Christianity is all about “dependence on Christ” and a “one-on-one relationship”. And he is adamant that there’s nothing in the bible that says he can’t be a Rock Star.
Check out these lyrics from Cleansed By Fire from the 1994 album “The Last Temptation”:
LONDON — Nearly two years ago, the “Commission on Religion and Belief in British Public Life” published a report on the role of religion in society. The paper made it clear that Britain is no longer a Christian country in any meaningful sense and should be systematically de-Christianized due to the decline of church-going and the rise of Islam and other beliefs.
Britain Is No Longer A Christian Country
The commission has attracted particular controversy because of the authority of those behind it. Patrons include Rowan Williams, the former Archbishop of Canterbury; Lord Woolf, the former chief justice; and Sir Iqbal Sacranie, the former general secretary of the Muslim Council of Britain.
“Britain is no longer a Christian country and should stop acting as if it is, a major inquiry into the place of religion in modern society concluded in 2015, provoking a furious backlash from ministers and the Church of England.”
The report triggered a argument as it was condemned by cabinet ministers as “seriously misguided,” while the Church of England said it appeared to have been “hijacked” by humanists.
Remarkably, the overall decline of religion in Britain has coincided with the arrival of three million migrants who tend to have more religious belief than British Christians. In particular, the visual impact of Islam, most obviously expressed in the proposal for a 9,000-capacity ‘super-mosque’ in east London that was rejected by planners about 18 months ago, might give the impression that migration has brought a religious revival to Britain.
You Can’t Throw the Baby Out With the Bathwater
Inevitably, the question of what is to be done about our national Christian institutions will soon arise. Is it appropriate that we are still invited to swear on the Bible in court?
Down The Inquiry Rabbit Hole
The Commission on Religion and Belief in Public Life document said that faith schools are “socially divisive” and the selection of children on the basis of their beliefs should be phased out. The report claimed that the number of Church of England bishops in the Lords should be replaced with imams, rabbis and other non-other non-Christian clerics as well as evangelical pastors. The report also backde moves to cut the number of Church of England bishops in the Lords and give places to imams, rabbis and other non-other non-Christian clerics as well as evangelical pastors. It also recommended that the coronation service for the monarch ought to be overhauled to include other faiths and that thought for the Day on BBC Radio 4’s should include non-religious messages. And it recommended new protections for women in Sharia courts and other religious tribunals — including a call for the government to consider requiring couples who have a non-legally binding religious marriage also to have a civil registration. Most controversially, perhaps, the report also called for a rethink of anti-terror policy, including allowing students to voice radical views on campus without fear of being reported to the security services.
Some will find this sad, others as a sign of progress, but the greater majority will view it with indifference.
Educating The Public
Given all that, why do Christians in the country have so much political and educational power?
“England has an established Church. Its bishops sit in the House of Lords. The Queen is both head of state and also supreme governor of the Church of England. One of the monarch’s titles is Defender of the Faith.”
Because of this, Work and Pensions Secretary Iain Duncan Smith has told the Daily Telegraph that claims the UK was not a Christian country ignored “both historical and constitutional reality”, its not fact. The Bible features heavily in the architecture and decoration of the Houses of Parliament, paying silent tribute to its significance in English jurisprudence. Most British law is ultimately derived from the codes of law within the Bible, of which the Ten Commandments is pre-eminent.
“The Equality of All People Before The Law is Another of The Bibles Legacies.”
In short the social institutions and safeguards, as well as many of the benefits people take for granted, were supported by the understanding of human life which was found within the Bible. In this sense, the foundations of Britain’s culture and society can truly be said to be biblical.
The report is dominated by the old-fashioned view that traditional religion is declining in importance and that non-adherence to a religion is the same as humanism or secularism.
Today, as people are facing ever more clearly the perceived threats of global war, the Bible, with its vision of man’s position within creation and responsibility under God to care properly for it, still has a major contribution to make to the future of all humankind.
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.
Everyone wants to be a success. I have never met anyone who purposely set out to be a failure. Undoubtedly, this is why so much has been written on the topic “How to be a Success” and why these books are so popular.
However, The New Day daily newspaper closed just nine weeks after launching, Trinity Mirror confirms.
The New Day was a British compact daily newspaper published by Trinity Mirror, launched on 29 February 2016. It was aimed at a middle-aged female audience and was politically neutral. The editor, Alison Phillips, intended readers to get through the newspaper in under 30 minutes.
The new paper was initially available for 25p for two weeks, then rising to 50p. Two million copies of the New Day was given away on the first day, as the turquoise-branded upstart attempted to spark a revival in readership and gain ground against the mid-market Mail and Express offline.
Arrogance about their own ability to rescue a situation can prevent leaders from changing course
The New Day had no leading articles, no website, and columnists and believed it could successfully drag readers back to print? The sad truth is that it did not attract enough attention and failed to create a daily newspaper that could co-exist in the digital age, especially as tabloids and broadsheets continue to suffer a significant circulation decline.
Shareholders at Trinity Mirror’s annual meeting called the failure “demoralising”. Analysts said it was “embarrassing”.
Assume for a moment that the leaders of The New Day had no idea about the changes swamping the print media as a result of the digital revolution, and carelessly decided to invest millions into the venture without undertaking a risk assessment and also decided to ignore every indication that the paper was failing. That would have been embarrassing and demoralising.
However, the leaders decided to fail quickly and shut down the project they started.
Abandonment is a rare, difficult and a valuable management skill. The natural instinct of most people is to persist, particularly when the project is a collective commitment, as most corporate ventures are, but then it becomes even harder to hit the red “stop” button.
The New Day’s editor, Alison Phillips, said in a statement posted on Facebook that the team “tried everything we could” but were unable to reach the figures needed to make it work financially.
We dread failure. We don’t like talking about it. Some of us will internalise and rethink our failures in our heads time and time again. Others will swipe them away, moving onto the next thing immediately. In the public, we prefer sweeping our failures under the rug, silently, while nobody is watching.
While this might save our feelings momentarily, this is not the way learn and innovate.
According to Albert Savoia – ex Googler and innovation expert, most project innovations will fail.
“Most New Things Will Fail – Even If They Are Flawlessly Executed.” – Albert Savoia – Ex Googler
Does this mean you should stay away from trying new things (and failing in the process)? Certainly not. It just means you need to accept failure will inevitably be a part of the process.
In most cases, however, a combination of arrogance about personal ability to rescue the situation and blindness to the lengthening odds of success stops leaders from changing course.
The natural lifespan of most projects is finite, and the rarities are companies that survive.
The Art of “strategic Quitting” Will Become More Important as Careers Fragment and Companies Exert More Discipline
So if an idea is doomed, organisations usually treat the person who pulled the plug early on as a hero right? Not exactly, it’s complicated.
Roy Greenslade, Professor of Journalism at City University London, wrote a report in The Guardian explaining how The New Day had failed. He pinpointed the error of marketing a newspaper to people who inherently despise newspapers, and the short period of time between the announcement and launch, leaving no time to advertise the product. It was also published early in the evening thus missing out on late-night breaking news such as Leicester City F.C.’s shock win of the Premier League.
“Nothing so powerfully concentrates a man’s mind on innovation as the knowledge that the present product or service will be abandoned in the foreseeable future.” – Peter Drucker
The first thing the Bible wants to say is that all of us have failed. None is without failure. If you think you haven’t failed, two things are true of you. One is you are blind to your failures and the other is you probably haven’t taken enough risks to try enough hard things so that you would be aware of your failures.
Peter Drucker’s influence on business management is legendary. Peter realised that “systematic abandonment” a regular, unsentimental spring-clean is critical to the fostering of new business ideas.
Conclusion, every organization needs to have a regular “rummage sale” to determine which products, services, and programs are worth keeping and which ones must be abandoned.
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 usedexclusively.
FACTORS OF PROJECT FAILURE
Cookie-Davies (2002) stated the difference between the success criteria and the failure factors. Hestated 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).
Timeand 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 andLaw, 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, whileIn 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.
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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.
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.
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.
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 term ‘Modern Methods of Construction’ (MMC) embraces a range of technologies involving various forms of prefabrication and off-site assembly.
MMC is increasingly regarded as a realistic means of improving quality, reducing time spent on-site, improving on-site safety and addressing skills shortages in the construction of UK housing.
The variety of systems now available potentially allows the designer enough choice to sidestep problems deriving from constraints posed by the use of any one method. MMC systems, from closed-panel timber framed systems to bathroom pods are a palette from which designers can make choices. They are not necessarily stand-alone solutions that anticipate all the needs of an individual site and can be mixed and matched as appropriate.
These limitations are not obstacles to achieving the good design in MMC-based schemes, but may hinder the incorporation of more complex and innovative types of MMC from which greater overall benefits may be obtained which are considered under the following headings:
1. COST UNCERTAINTY
There is no doubt that, given products of comparable performance the key issue in purchases of MMC construction systems is the price. At present not enough is known about the potential costs of using volumetric and closed panel systems to enable confident specification at an early date. This inhibits designers from exploring the full potential of MMC systems. This is particularly true of the less repetitive, small, one-off scheme, where a smaller margin of benefits is gained from using MMC. The principal barrier to the uptake of MMC, therefore, seems to be the perception of cost uncertainty with respect to using more complex systems. Without doing substantial project-specific research, consultants and their clients simply do not know with enough degree of certainty how much the volumetric or closed panel systems are likely to cost, and what would be the savings to overall project costs produced by potential speed gains to offset against increased capital expenditure.
This is due to the complexity of assessing the ratio of cost of repetitive elements where pricing is relatively straightforward to the cost of adjusting elements or building in another method for the abnormal condition. Decisions to use innovative systems are likely to be made once designs are well progressed to enable teams to be more certain of costs. This can increase the potential for change or result in design compromise as the designer attempts to incorporate the specific limitations of a particular system in their design.
In an attempt to improve this situation, the MMC consultant and or clients could pull together a directory of MMC expanded to include cost comparison data. The huge range of variables involved inevitably makes this difficult, but a database of current construction cost information would be an invaluable resource.
2. PLANNING PROCESS AND EARLY COMMITMENT TO A SYSTEM
The time it can take to obtain planning permission has obvious implications both for project cost but also, in some circumstances, for architectural design innovation.
Most of the more complex types of MMC have an impact on dimensioning, the choice of external finish and detailing may have some effect on the buildings mass. Therefore, the construction system should be chosen prior to a planning application to avoid abortive work, redesign or amendment, or even resubmission for planning permission.
However, developers whose money is at risk, frequently hold off deciding on the construction technique until the last practicable moment, in order to get any advantage from fluctuations in material or component pricing.
Given the potential for lengthy duration of planning applications, this means that there is little incentive to prepare initial designs for planning with a prior decision to incorporate MMC firmly embedded. In cases where the developer has a financial or business link with the supplier, this is less likely to be the case. As the majority of commercial or residential developments involve some kind of arrangement with a developer, agreement on construction systems is often left to the stage after planning.
3. TIME INVESTMENT
Another very significant factor is the time investment required at the early stages of projects. This is needed to develop the design when the project is still at risk. There is a direct relationship between the scale and complexity of MMC component and the amount of time required to develop a design at an early stage.
The introduction of advanced or complex MMC techniques into the design process is potentially costly to the design team. A significant amount of research is needed to explore alternative systems, to obtain verification of suppliers’credentials, investigate mortgage and insurance issues, visit previous sites, talk to system suppliers, obtain technical performance guidelines, understand junctions and interfaces, coordinate other consultants, obtain building control input and so on.
For a consultant, the only way of investing in this research is either through timely payment of increased fees by a visionary understanding client or through the anticipation of increased future productivity through repetition when a project is phased, or large enough, or likely to be followed by another similar project.
The potential of learning a system and then being able to repeat lessons learned efficiently is a powerful incentive for both client and consultant. By contrast, HTA’ s project at Basingstoke is an example of a phased project with a three to four-year duration allowed the design team to repeat various elements of the design, and the manufacturer to develop improved solutions to technical and supply problems.
4. INSUFFICIENT COMMUNICATION
Improved dialogue at the outset of the project is vital if design quality is to be maximised. Constraints and opportunities implicit within a particular system are more easily incorporated into design if partners communicate pre-planning. Increased early communication can be fostered through improved long-term partnering relationships.
Clients should also partner with a range of suppliers and architects so that choice and flexibility is not restricted.
5. INEXPERIENCE
Generally, the inexperienced client or design team will have to do more research, with the result that there is likely to be significant design development without a specific system being incorporated.
This is a disincentive to using a more complex system involving a higher proportion of MMC, where early decision making and knowledge of a system’ s capabilities have a decisive influence on the nature of the architecture. However, encouraging the take up of MMC through the use of a dedicated funding mechanism may assist clients in finding time for research into suitable MMC techniques.
6. SUPPLIER’S ROLE
Site capacity studies and early stage pre-planning design studies could be undertaken directly by system suppliers on behalf of clients, cutting out the usual procedure of commissioning design work by independent consultants.
7. ASSUMPTIONS
There are a number of assumptions that are generally held about certain types of MMC that may have been valid at one time but are no longer true today. There is a need for reliable and up to date information comparing system criteria, performance data, timescales, lead in times, capacity, construction time, sequencing issues, limitations, and benefits.
Therefore it would be helpful if a forum for discussion and experience exchange was set up.
8. DEMONSTRATING THE BENEFITS OF MMC
There is still a large amount of skepticism about the need to go very far down the line with MMC. This is reflected in the acceptance of the desirability of maintaining or indeed enhancing the pool of traditional craft skills throughout the UK.
A balanced view is that there is a demonstrable need for the wider use of MMC which is recognized by both industry and government. The best way for clients and the public generally to become more confident and knowledgeable about the quality of design achievable through MMC is to see it demonstrated.
9. FINANCIAL INCENTIVES
There is no doubt that spreading the burden of investment through the life of a project helps to ensure a higher standard of specification and hence quality. In the Netherlands, a ‘ Green Financing’system has been developed by the Dutch government that provides favorable loan finance when certain sustainable standards are reached. In the UK, the Gallions HA has pioneered a study of this, based on a scheme in Thamesmead, ‘ the Ecopark project’.
The world of Procurement is seemingly full of impassioned people absolutely certain about what procurement is all about. Like other great lies, many of these half-truths and misleading ideas sound agreeable to the ears and comepackaged as good advice from influential people.
How many of these popular lies have you fallen victim to?
1. Procurement should have a seat at the C-table
It’s not so much an outright lie as an irritating half-truth – but the damage comes with what Procurement people do with it. The thought behind this is well-intended: Procurement people should be able to speak the language of senior executives as easily as they can talk about FIDIC or demand forecasting. Terms such as EBITDA, ROIC, and economic profit should be part of their everyday parlance. Procurement issues are often the least understood by the board and the CEO and must be explained in their language.
What on earth could be wrong with that?Nothing – if the Procurement people have full cognisance of their own tools and language – and can be persuasive to senior people of the value of Procurement.
Now, that’s where we have, what is kindly referred to, as a skills gap.
In reality, for Procurement with no reputation (outside of that pesky metric of cost) and few business-aligned projects to call upon, it can be incredibly hard to try and catch senior people’s ear – never mind a C-seat (see what I did there?).
2. You must carry out a competitive tender to obtain value for money
I’m trying to distance myself from the public sector here (noting I did co-author the CIPS book on contracting in the public sector) but even in the private sector there’s a desperate need to get three quotes.
Why three quotes?
Not five, not 11?‘Cos the rules say three; that’s why.
And the rules of Procurement policy and procedures, well, they can’t be broken because the CFO or the head of internal audit (all very commercial animals?) will be down on Procurement like a ton of bricks.
When the three quotes are received the following conversation occurs – the highest price is rejected – ‘they’re ripping us off’ followed by – and I love this one about the lowest price quotation – ‘the price is too low, they must have got the specification wrong’ – and the contract is awarded to the middle-priced one”¦.surely there’s a better way to deliver value for money?
Perhaps starting with actually defining it!
3. Procurement is the only source of governance for 3rd party spend
Being the only source would suggest a 100%, right?
I’d be amazed – and delighted – if Procurement governed half of all the 3rd party spend.Words such as ‘influencing’ are sometimes bandied about to shore up this lie. What a surprise that sales people are either trained, or very quickly learn ways, to actually bypass Procurement when selling.
And the reason?
Obviously marketing, IT, auditors fees, construction/property, recruitment (I could go on) is completely different, say the senior people in those departments – echoing the views of the oh so helpful sales people.And Procurement just never gets near, as they can’t articulate (deliver?) the value they can add.
I await the avalanche of people commenting on this telling me I’m wrong.Please be assured you are exceptional in Procurement.
4. Procurement welcome innovation and strategic relationships and anything other than lower price
Few businesses view Procurement as a strategic process. Most often, Procurement staff report to the CFO. This astonishing trend indicates that Procurement is still viewed as a financial / accounting activity and not an operational strategic activity that directly impacts the bottom line.
Suppliers; if you have an innovative product or service, recognise that Procurement’s ‘raison d’être’ is to deliver cost savings.That’s what they are measured on, that’s what the research with CPOs and the C-suite say is the #1 priority.There’s oodles of other priorities such as local sourcing, sustainability, innovation, partnering, risk management – I could go on and on and on.But that’s the one they get measured on. Think that through, next time you’re pitching.
The take-away
Perspectives on Procurement need to change, mature and grow up. Lies like these need to be re-evaluated and abandoned. Procurement needs to change the way they engage and manage suppliers and their internal stakeholders; ‘adding value’ (a dreadful phrase!) means so much more than asking for a discount.
Stephen Ashcroft BEng MSc MCIPS (speaking here, very much in a personal capacity!) is Associate Director, Procurement and Commercial Advisory at AECOM, a Fortune 500 company. He’s a procurement learner stuck in the body of a procurement veteran, and with over 20 years’ experience still sees the glass as half full. Working with leading organisations across diverse industry sectors, Steve helps clients reimagine procurement to drive improved performance. A recognised advisor, speaker, lecturer, and author; the ever-hopeful Kopite shares his bright-eyed/world-weary views on Twitter @ThinkProcure, LinkedIn and his blog.
Welcome to the world of “Big Data.” We have more information at our fingertips than any generation in history. We live in the world of “Big Data.” That is the new way people are trying to describe this sea of digital facts, figures, products, books, music, video, and much more. Twitter, apps, Facebook–they’re each giving science new ways to look at what people do and why.
“Hopes, fears, and ethical concerns relating to technology are as old as technology itself.”
We actually welcome some aspect of Big Data. These mysterious data successes (or accidental successes) are easy to see as a kind of Big Brother future, where technology can track your every move and report back to ”¦ someone. However, StockholmstÃ¥g, the train operator is using new technology that employs big data to predict train delays before they happen.
“The Commuter Prognosis – A Social Scientist’s Dream Come True.”
The mathematic algorithm, called “The commuter prognosis” was developed in Stockholm, Sweden.
When a train is not on time the algorithm forecasts disruptions in the entire network by using historic big data to prevent the ripple effects that actually causes most delays. Wilhelm Landerholm the mathematician who has developed the algorithm said:
“We have built a prediction model, using big data, that lets us visualize the entire commuter train system two hours into the future. We can now forecast disruptions in our service and our traffic control center can prevent the ripple effects that actually cause most delays.”
The algorithm has been tested but is not currently being used by traffic controllers.
How does it work?
The key to the model is a large amount of historical data. The model works similar to a seismograph, an instrument that measures and records details of earthquakes, such as force and duration, but instead identifies late train arrivals. When this happens, the system uses historical data from previous occurrences to forecast the likely impact on the entire train network.
Real-time public transportation information is already used around the globe, however, traffic control centers still typically assess delays manually to try and prevent further problems in a network. The commuter prognosis system, on the other hand, will forecast these delay effects instantaneously and provide a prediction of how a single or multiple disturbance might affect the whole train network. The commuter prognosis system could change how traffic control centers operate all over the world.
“The Effects of One Delayed Train Can Quickly Multiply Within a Train Network”
Imagine that “The commuter prognosis” forecasts that a train will be 10 minutes late to station C in two hours. To deal with this the traffic control center issues a new train from station A that will arrive on time at station C. As soon as the new train has been put in motion the algorithm re-calculates and gives the traffic control center a new forecast for the entire train network within minutes.”
The most important benefit of “The commuter prognosis” is that it provides for a more punctual public transportation.
“The commuter prognosis” will be available in a smartphone app based on the original model. The app will integrate with other transportation big data to make commuting easier and will indicate which coaches are more or less crowded.
Big Data, Ethics, and Religion
These stories remind us that even though companies and governments are doing amazing things with data, it’s at best imperfect. The algorithms and programs they use to filter and respond to data are at least as fallible as the human beings who designed them. We can also see its complexity and failures as evidence of the amazing omnipotence of our God – who doesn’t make errors and who knows right where to find us, even inside a great fish or the depths of hell.
The arrival of big data has already brought with it numerous questions that have yet to be properly addressed. These questions are methodological, epistemological, and ethical, and they concern (inter alia) the ways in which data is collected, stored, interpreted, represented, and traded. A further complication is a speed with which data science is advancing, which means that (for example) the application of legal and ethical restrictions to the practice of that science will always risk being several steps behind the point that it has currently reached. There are indications that we are currently sleepwalking towards a situation in which the commercial exploitation of big data routinely increases social division, and renders privacy a thing of the past.
Ket factors
A mathematical model interprets big data to forecasts for each train in the train network.
The commuter prognosis can warn about delays two hours before the departure or arrival actually takes place.
The commuter prognosis calculates how the delay affects other trains in the system.
The purpose of “the commuter prognosis” is to make life easier for traffic control centers and to give passengers a better service.
In the future, the algorithm will be potentially adaptable for more types of public transportations and cities.