Project Success and Failures - Research Paper Example

Project Success & Failures What are the 10 common causes of project failure? A project may fail if, 1. Its goals, strategic planning and technical considerations are insufficiently explained to or perceived by the parties that are involved in it. 2. Its design is not consistent with the strategic plans made at the outset. 3. The potential sources of risks have not been identified while scheduling the project, and if they have been identified, no or insufficient measures have been taken to mitigate the risks and more importantly, turn them into opportunities. 4. The political scenario of the country in which the project is located is unstable. The involved parties may not be able to complete the project if the circumstances become unfavorable. Sometimes, such political changes occur that make the execution of project meaningless, thus making it useless for the involved parties to continue the project. 5. The cost has not been rightly estimated at the outset. Sometimes, lack of competence of a single estimator ruins the whole project that is worth billions of dollars. If the cost is under-estimated, the contractor in particular incurs a lot of financial loss. 6. The contractor is not experienced in the nature of work. This can generally cause the project to fail because of weakness in several areas like risk management, construction management, and cost management etc. 7. The people involved in its supervision, execution or management are not experienced or competent enough. A strong work team is fundamental to the success of every project. 8. There parties involved in it like the client, consultant and contractor do not have good rapport with each other. Personal grudges are the biggest threat to the success of every project. 9. “Failing to break projects into manageable 'chunks'” (Khan, 2011). 10. The procurement method is not consistent with the specifications of the project. List and explain five critical success factors in project management. Five of the ten critical success factors in project management as mentioned by Emond (2011) are as follows: 1. Clear goals and vision: This is the first and foremost requirement in order for a PM to be successful. 2. Support of Executive Management: In order to utilize his/her full potential and make rational decisions keeping in view the resources at hand, a PM requires support of Executive Management. 3. Proper planning: Planning is one of the fundamental PM functions. 4. Realistic expectations: The PM should take care of time, cost and resource constraints while assigning tasks to individuals so that the expectations can be realistic. 5. Skilled workforce: Since the staff is involved in the work at the grass root level, its competence directly affects the chances of success of a PM. Pre-contract planning vs contract planning: Pre-contract planning revolves around the development of contract. In order to develop a contract, first, the project feasibility study is conducted, followed by the preparation of drawings and identification of specifications, selection of procurement method, time and procedure and selection of contractor for contract. Contract planning takes care of all events that follow the development of contract, which involve development of schedule, cost scheduling and resource leveling. Project Manager Roles Define Project Management. Project management can be defined as the application of competence and methodologies to accomplish activities of a project that is meant to satisfy or exceed the needs and expectations of stakeholders from it. Another definition for project management is “the process of controlling the achievement of the project objectives, after noting a project to be the achievement of a specific objective, which involves a series of activities and tasks that consume resources” (Munns and Bjeirmi, 1996, cited in Mavengere, n.d., p. 38). Comparison of responsibilities of a Client’s PM with those of a Contractor’s PM at the pre-tender, tender and post-tender stages of project: Pretender stage: Client’s PM - In the pre-tender stage, the client’s PM prepares the project feasibility report, gets the drawings constructed, gets the bill of quantities made, chooses the method of procurement from among a variety of methods, gets the contract documents made, gets the preliminary estimates of cost made, and prepares the tender for inviting the bids. Contractor’s PM – does not do much in this stage but looks forward to tender advertisements to fetch more projects more the contractor. Tender stage: Client’s PM – advertises the tender for bid invitation. When the bids have been received, the PM checks which is the closes to the preliminary cost estimates and is also the lowest. The PM is responsible to give the project to the contractor who can complete the project in minimum price, though the PM has to make sure that the contractor is experienced and the price submitted is realistic. Quite often, inexperienced contractors submit unusually low price just to win the project, and later, the project fails. Contractor’s PM - Contractor’s PM analyzes the drawings, visits the site location to check the drawing’s conformity with the real situation and conditions on the site, and prepares the cost estimate. The PM is responsible to place such a price in bid that would be lower than other bidders and would yet ensure the profitability of business for the contractor if the contract is awarded. The contractor’s PM has to respect the deadline fore submission of bid. Post tender stage: Client’s PM – asks the contractor to submit the work schedule, and provides the contract with the initial installment. The PM also gives the contractors hold over the site in part or fully. It is up to the client to select the consultant for supervision of the work at this stage or at the outset to help the client with the preparation of bid documents and the selection of contractor. Once the project is started, the client’s PM’s responsibility is to ensure that the payment is released in accordance with the progress of work and the compliance of quality of contractor’s work with the standard required by the client. The PM should compensate the contractor in terms of additional time or cost for the delays caused by client. Contractor’s PM – Prepares the work schedule, arranges manpower, material and equipment for the work, selects the subcontractors and starts the work. The PM is responsible to make sure that the work is done in accordance with the contract documents and it finishes in time to avoid liquidated damages. Planning & Control of projects Project planning: Project planning may be defined as, “a discipline for stating how to complete a project within a certain timeframe, usually with defined stages, and with designated resources” (SearchCRM.com, n.d.). Purpose of project planning: To define the reason of existence of an organization – what roles does it play in the society, and how is it beneficial to the society and to the individuals working in it. To direct and serve as a guide for decision making – all actions and decisions are made in accordance with the course of action chosen in the plan. To organize things – project is planned in such a way that the waste is minimized, resources are adequately consumed and minimum cost is incurred without compromising upon quality. To establish criteria and standards - for judgment of performance To satisfy needs of stakeholders (Haughey, 2011). Techniques of project planning: Three of the most common are: 1. Gantt charts 2. Critical Path Method (CPM) 3. Programme Evaluation and Review Technique (PERT) Gantt charts simply tell the order and duration of activities, whereas CPM also tells where the duration can be adjusted to make the plan convenient. As compared to both of them, PERT is used when the duration can not be estimated because of the uniqueness of activity and lack of historic data. Difference between scheduling and planning: Many people tend to merge the concept of planning into scheduling. Scheduling is the sequencing of activities whereas planning is the determination of the course of action after which, its activities can be sequenced by scheduling. Put it simply, planning comes before scheduling. Successful planning makes a project successful (Blair, n.d.). Project control: Project control, as the name implies, refers to all processes that are done to ensure the compliance of project progress with the schedule designed at the outset. The more the progress of a project complies with the schedule, the more control management has over the project and vice versa. What are the essential features of good project control? Essential features of good project control are as follows: Resources should be leveled – Most of the resources are utilized in the middle of activities. They are lesser in the beginning as well as in the end. Quality of work is ensured - Work is done as per the specifications stipulated in the drawings and method statements. Project schedule is complied with – progress of work should preferably be slightly ahead of the schedule in order to compensate for any delays that may occur later Cost schedule should be complied with – owner releases cost as per the original cost schedule. Thus, if more work is done more than that, owners are most likely to hold money which breaks the tempo of work, and the progress of work lags behind the schedule in the long run. Thus, plans made at the outset should be complied with – plans mainly include cost plan, work plan, and quality plan. Name 10 items that must be controlled on construction site. They are: 1. Cost 2. Time 3. Productivity 4. Quality 5. Risks 6. Manpower 7. Equipment 8. Materials 9. Accidents 10. Scope of work Management of Change and/or Resistant What are the advantages and disadvantages of resistance to change management? Resistance to change management has both advantages and disadvantages. Some of them are discussed below: Advantages: Resistance to change management provides the individual who originally proposed the idea of change with an opportunity to know the opinion of the majority of the personnel who make part of the organization and whose approval of the proposal makes a difference. If their opinions are good enough, they can be incorporated in the original proposal in order to make it better. “Almost every change requires the cooperation, collaboration, and co-ownership of others. It is only by giving the assessment and scrutiny of these people full consideration that the change can expect full acceptance” (Patrick, 2001). In light of this philosophy, when a manager accepts resistance to change, and values the collective concerns of the employees, the objectivity of proposal is enhanced and its implementation can be made easier and more effective. Disadvantages: Employees’ resistance to change management makes it difficult for the management to incorporate innovation and creativity in the work environment. Change is fundamentally about innovation and creativity which is the first and foremost requirement of competitive success in the contemporary age. Resistance to change tends to maintain the same old practices which may not be conducive for the progress of an organization. Resistance to change management generates results that address the concerns of employees more than the concerns of organizations. Employees resist change because they are used to and feel ease at doing things in the conventional way. They condemn the change for their individualistic concerns which may not be related to the organizational goals and objectives in any way. How should PM deal with resistant to change? The PM assumes the most important role when a change has to be implemented in an organization. His actions, ideas, beliefs and influence can make a lot of difference and can be very crucial for the successful implementation of the change. In order to deal effectively with the resistance to change, the PM should, Lead the change with the help of his/her speech, mannerism, perceptions as well as actions. In the capacity of a leader, a PM serves as a role model for the employees that form part of the organization down the line. Thus, every move a PM makes can have impact on the acceptability of the organizational personnel towards change. Find out legitimate and convincing justification for the implementation of change. Employees need to be taken into confidence in order to implement the change successfully which can not be achieved unless the PM has sufficient reason to implement the change. The PM should expect resistance and therefore, should remain determined and persistent in his/her approach. The PM should tend to associate the change with the future of the organization. The organization’s future objectives should be designed in accordance with the change. This will be a big step in making the implementation of change effective. The PM should have assessed the sources of resistance before introducing the change and should have taken sufficient measures to deal with them adequately. Group Dynamics and Team Building What do you understand by team building? Team building is the practice of making people work together in a group. A team comprises people with different sets of expertise and capabilities so that they can benefit from one another’s strengths and can cover up one another’s weaknesses so as to adopt a holistic approach towards fulfillment of the goal. A team has shared objectives and interests. Success of a team is the success of all people that form part of it along with the organization whose objectives are achieved by the team. Team building is a very good, essential and useful practice in that it allows people to remove their differences and work towards the achievement of shared goals. This not only provides the organizational personnel with an opportunity to understand one another better, but they are also able to get rid of their interpersonal conflicts and develop good rapport with one another that is essential for their individualistic and collective success as well as the success of the organization they form part of. What is continuing professional development (CPD)? Continuing Professional Development (CPD) is the process in which people belonging to professional associations tend to maintain, enhance and expand their competencies and develop such skills that are essentially required in order to excel in their professions. CPD depicts an individual’s commitment towards his/her profession. It provides an individual with a means to enhance the skill, knowledge and competence in accordance with the requirements of his/her profession. For example, for a Civil Engineer who belongs to the field of construction and has entered the field after completing the undergraduate studies, CPD can mean taking such courses that enhance his/her expertise in certain softwares that are frequently used in construction work like AutoCAD, Primavera and SAP etc. In addition to that, a Civil Engineer may tend to do Masters in certain field in order to specialize. The fields to specialize in for a Civil Engineer can be Structures, Geotechnology, Construction Management, Transportation and Water Resources Management etc. Moreover, if a Civil Engineer keeps attending workshops from time to time in order to enhance his/her knowledge regarding various areas of construction, that is also a means of CPD. How is team culture developed within a construction project? According to Kotelnikov (n.d.), ten action areas are fundamentally involved in the development of team culture in a construction project. They are discussed below: 1. Provision of an influencing vision is the basic requirement of development of a team culture. 2. The shared values are defined for the members. 3. The objectives of team are clearly specified at the outset. 4. Team leaders are developed. 5. The complementary skills are synergized. 6. Diversity in team culture is appreciated. 7. The leader encourages the members as they work together and keeps their morale high. 8. Teams are empowered. 9. According to the nature of task a team has to accomplish, it is given training. 10. The success is celebrated and the members are rewarded. All of these ten action areas have their own significance in the development of team culture in a construction project. References: Blair, GM n.d., Planning a project, viewed, 11 May, 2011, . Emond, C 2011, The 10 Key Project Management Success Factors... Minus Nine, viewed, 11 May, 2011, . Haughey, D 2011, Project Planning a Step by Step Guide, viewed, 11 May, 2011, . Khan, ZA 2011, Project Management Critical Success Factors, viewed, 11 May, 2011, . Kotelnikov, V n.d., Building a Team Culture 10 Action Areas, viewed, 11 May, 2011, . Mavengere, NB n.d., Project Management: Project Manager’s tasks and responsibilities, viewed, 11 May, 2011, . Patrick, FSF 2001, Taking Advantage of Resistance to Change (and the TOC Thinking Processes) to Improve Improvements (Part 1), viewed, 11 May, 2011, . SearchCRM.com, n.d., Project planning, viewed, 11 May, 2011, . Read More