Project Management Methodology for Geotechnical Company - Example

Project Management Methodology Name: Institution: Course Title: Tutor: Date: Geotechnical Company Project Plan for Setting up Global Reporting Initiative on Sustainability Department as a New Approach to Community Social Responsibility Date of Issue Project Manger/ Student Name 1.0 Introduction Geotechnical Company is one the largest privately owned construction solutions provider in the UK formed over 30 years ago. The business is made up of a range of engineering, construction, manufacturing and specialist services companies, which combine to provide prestigious clients with a comprehensive investment, development and management capability. Working across Europe, Canada, the Middle East, South East Asia and Australasia, their operations span a range of sectors, including: lifestyle; business; social infrastructure; transport; power; mining and natural resources; oil and gas and utilities and waste. The company’s vision is to challenge and change the poor image associated with construction companies worldwide and adoption of leanness and agility process so as to compete with world-leading businesses. Moreover, the company has roughly six guiding prices that influence their basis of operation. They are to make safety personal and work responsibly, lead by example, work as a team, and listen to everybody, trying to find or follow a better way, delivering their promise and aiming to succeed and collaboration with clients and partners. To attain the above vision, the company management in line with their strategic plan has decided on new project of creating a new department for Community Social Responsibility that will engage in sustainability reporting through Global Reporting Initiative. 2.0 Approaches to the Process and Justification of the Choice This project adopts process based management approach of event chain methodology of projects in controlled environment 2 (PRINCE 2).the essence of using this approach is because it acts as a flow chart that can be easily followed (see appendix 2). It starts with planning process located the lower tier. This process includes planning and initiation phase. The chief justification for using this application is that the procedure is independent from the application domain. Moreover, this method is in the public domain and services and hence, can be easily obtained from several suppliers. In addition, the PRINCE is applicable to both small and large scale projects. The final justification is its ability to integrate change management that control the changing environment (Project Performance International). Project Brief 3.0 Purpose Moreover, with the emergence of the sustainable development concept in the early 1970s, the business operation framework has also shifted (Ortas and Moneva, 2011, p.17). Globally, there is the realization that firms can not only base their performance on profits recouped alone (Geraghty, 2010, p.141). Ethical approaches to doing business have over the years gained a paramount position. Moreover, the environment perspective of sustainability has been a case for reaction. Sustainability calls for utilization of earth resources with the future generation in consideration. Sustainable development thus focuses on creating a balance between human economic need, social need and environmental need (Hubbard, 2011, p.824 and 825). Therefore, this firm as one of the main users or earthly resources is encouraged to be proactive in this agenda. This report explains the project plan for establishing a QSHE and Global Reporting Initiative on Sustainability Department by Geotechnical Company as a means of ensuring well being of their employees, neighbouring community and the environment at large. 4.0 Derivations The derivation for this project is as a result of 3 important processes. The first was the discussions with corporate management regarding corporate strategy and any policies and standards that apply. During this discussion it was seen prudent for the company to adopt new strategies for nourishing its corporate standing amongst its peers, customers, the society and employees. The second derivation was based from the peer review exercise by the same players who wanted all companies subscribing to construction and engineering services to be proactive about environment especially in relation to climate change. The last was as a result of continuous quality improvement and benchmarking whereby the quality team saw it better to match with new trends in CSR. 5.0 Quality Criteria The overall supporting quality criterion for this engagement is that the project objectives, project approach and strategies are consistent with the organization’s corporate social responsibility directive. According to Global Reporting Initiative (2006) cited in Hubbard (2011, p.826) GRI has been the most preferred reporting format globally. KPMG (2008) cited in Hubbard (2011, p.826) reports that 77% of the global 250 and 69% of the N100 uses GRI. This makes it a global standard for large organizations. However, the difficulty is noted in the concepts and sub categories to be reported on. In order to ensure balance representation, organization’s purpose and experience, and reasonable expectations and interest of stakeholders are considered. The report covers indicators on firm’s economic, environmental, and social impacts. This address the concept of materiality which relates to factors that influence decision of stake holders. In addition, the report identifies stakeholders and their interests thus addressing the concern of stakeholder inclusiveness (Geraghty, 2010, p.144). Apart from the above, one of the critical factors that contributes to the success of an organization is the human resource due to the fact that they in charge of creating and implementing ideas. However, this is pegged on how well this critical resource is managed. The team members will be trained and refreshed in topics that they are not well conversant with in order to develop them thoroughly. The team will continuously search about this project. When they meet, they transfer knowledge from member to another. This project will have majorly three level of staffing. The first is the steering committee. The committee will be in charge of coordinating all relevant departments and commits department resources and approving major funding and resource allocation strategies among others. The second level is of project manager. The project manager will be in charge of guiding team members toward project objectives, supervises consultants, handle problem resolution and ensures project plan is adhered to, among others. The final is the integral participants who mostly play roles as directed by steering committee. 6.0 Tailoring Geraghty (2010, p.145) identify five important steps in formulation of GRI. The first step entails preparation. It aims at promoting internal discussion especially at management level. In addition, it identifies the obvious positive and negative economic, environmental and social impacts. The second step relates to connection. This covers consultation of stakeholders about their input into the process. The third step covers aspect of stakeholder input definition as identified in the second step. The fourth step covers aspects of monitoring. It gathers data that will go into final report. It is done in relation to GRI indicators. The final step revolves around communication. What has been done in the earlier phase and documented are finally communicated in the best way possible. 7.0 Project Definition 7.1 Background The overall concern is that nature if not well treated it is unforgiving. This lies on what we withdraw and what we inject in the environment. Basically speaking, the performance of any economic sector is directly or indirectly tied to the environmental situations. Thus, the performance of firms even if not present is tied to the environmental situation. Hence, there is need to conserve it (Aras and Crowther, 2008, p.281). The adoption of the sustainability reporting by a firm is a true indication of how they value the physical environment they operate in, and which forms and dictate their future existence. Sustainability reporting shows the level of commitment that a company has towards social responsibility. In addition it offers a platform for benchmarking (Geraghty, 2010, p.142). Ecological principles prove that existence of human being is tied to nature. What more responsibility can customers and the whole public or even the whole world as from a firm more than being responsible to our only mother planet. 7.2 Project Objectives The first objective of the project is to establish a Global Reporting Initiative department that will be able to establish numerous standards on sustainability reporting for the company. To create a new paradigm of community social responsibility based on sustainable development and not just giving back to the society with no environmental concern. This will help address the new corporate strategy of the company about corporate image. To ensure that the company creates a benchmark that other competitors in the industry will admire to adopt 7.3 Desired Outcomes The concept of sustainability reporting has continually developed over the last 12 years becoming a norm rather than exception in mainstreaming ethical practices into business operations. In Australia, it has been reported that approximately 66 % of firms engage in sustainability reporting (Geraghty, 2010, p.141, 142 and 143). The greatest benefit of sustainability reporting is the protection of environment from degradation as a result of firm’s economic activities. However, there are other accompanying benefits that results from this noble corporate social responsibility (CSR). The chief benefit is brand value. Firms are able to ride on the good reputation they have created amongst their environmentally conscious clients (Geraghty, 2010, p.143). Thus, the desired outcome is to improve the corporate image and brand value of Geotechnical Company by ensuring the newly established department of sustainability reporting achieves the above desired objectives. 7.4 Project Scope and Exclusion The venture’s scope comprise of setting up a QSHE department with the help of top level management, human resource department and production & engineering department. The main overriding theme is to embrace new concept of CSR. The new concept of CSR places environment at paramount position since success of all generations including businesses is tied to how well the environment is maintained. To attain the above vision, the top level management through competitive process will outsource for human resource management consultants who will collaborate with the internal human resource department so as to build this new department from scratch. The consultants will be expected to hire a project manager and administrator who will oversee the whole process to completion. To establish an effective new department, the consultant will be expected to work with line specialists like public health personnel, environmentalists and sociologists. In order to guarantee and maximizes the chance of achieving overall success for the project, the process of establishing this department will adopt the system development life cycle approach as the project establishment methodology and global reporting initiative (GRI). 7.5 Constraint and Assumptions Werhane (2010, p. 695 and 696) notes that there are numerous propositions by different players in the field of corporate responsibility. She notes that in earlier years of 1990s there was no standard guidelines developed to aid multi international and local companies on how to adopt corporate social responsibilities. However, she notes with time, numerous guidelines have been developed by numerous institutions so as to inform companies interested in the concept of corporate responsibility. However, they main concern that she notes is that despite of tremendous works and publications in the guidelines for corporate social responsibility none of them are fine tuned so that they can be applicable in global scale or even at local level. The underlying argument she uses to support her contention is that most of these guidelines are formulated in relation to western rights-based perspective and thus, can not be applied in certain parts of the world. In addition, she notes that some of the principle demand much and thus can not be fulfilled by the companies both at local or international level. Thus, the chief constraint for the project is the standard to choose that is applicable across its area of operation globally. These standards include Global Economic Ethic (GEE) and the United Nations Global Compact (UNCG). On the other hand the assumption is that there is no universal standard applicable across the globe and hence, the need for domestication. 8.0 Business Case Outline This section aims at exploring why the project is required and the business option chosen. This will later be developed into a detailed business case during the initiation of the project process. Globally, there is the realization that firms can not only base their performance on profits recouped alone (Geraghty, 2010, p.141). Ethical approaches to doing business have over the years gained a paramount position. Moreover, Kantian ethics demand that human beings engage in what are morally upright and ought to be upheld. Corporate social responsibility (CSR) forms a level of appreciation by business organizations for being given opportunity by the host community to conduct business amongst them by drawing resource from their community. One unique kind of CSR is sustainability reporting by firms (Aras and Crowther, 2008, p. 279 and 280). Hence, to address the objective of new approaches of CSR through sustainability reporting the company will use GRI to attain the above desires. The underlying reason for giving GRIS that paramount position is that GRI has been the most preferred reporting format globally. KPMG (2008) cited in Hubbard (2011, p.826) reports that 77% of the global 250 and 69% of the N100 uses GRI. This makes it a global standard for large organizations like Geotechnical Company. 9.0 Project Product Description GRI is one of the most utilized reporting approaches by most QSHE departments. It involves explaining the impact an industry is making onto the environment. Geraghty (2010, p.145) identify five important steps in formulation of GRI. The first step entails preparation. It aims at promoting internal discussion especially at management level. In addition, it identifies the obvious positive and negative economic, environmental and social impacts. The second step relates to connection. This covers consultation of stakeholders about their input into the process. The third step covers aspect of stakeholder input definition as identified in the second step. The fourth step covers aspects of monitoring. It gathers data that will go into final report. It is done in relation to GRI indicators. The final step revolves around communication. What has been done in the earlier phase and documented are finally communicated in the best way possible. 10.0 Project Approach Establishing a new department in a business organisation is not an easy task. There are numerous processes engaged. The first is the environmental scanning both internally and externally to see if the new proposal matches with the company’s vision, mission and corporate strategy of the strategic management plan. The second phase is the actual establishment of the new CSR department. This phase involves giving of the department the necessary structure and hierarchies and in addition, recruiting and staffing of this department in line with the company’s vision. The second would be to engage the new department formulate its vision and objectives in relation to the overall company’s mission and strategic positioning. The third for this phase would be the sourcing of office space and necessary infrastructure and equipment that will give the new department and its employee ample space and comfort for discharging their duties. The last would be to give it the necessary publicity so that it acts as an avenue for value addition to the company brand name. Finally, the other important post project activities include monitoring and evaluation to see whether the department is meeting the desired objectives and the overall company vision and strategic plan. 10.1 Analysis of Operational Environment According to Pinto (2010) stakeholder analysis is the tool that generates the project management relationship with other people in an organization. Under this description he has isolated a group of people known as the project stakeholders. These can either be a group or individuals who are engaged in the project and as a result can influence its outcome either positively or negatively in the long run. Stakeholders are different from shareholders in that the latter have a financial interest in a project, but for them they either affect it or are affected by the project operations, strategies or any activity undertaken by it. As a result the list of project stakeholder can be quite big as it incorporates various components of the society. These include various users, contractors, employees, suppliers and sub-contractors. Even those who don’t necessary use the products of such a project but their business are interconnected with the use of the products. Therefore stakeholder analysis helps to isolate those individuals who can be considered as important in influencing the project activities. This is done by considering how individuals and groups relate to the structure of stakeholders. Interest and power that each individual possess in relation to the project phase is important in determining the relative degree of influence each exerts on the project (Van der Heijden et al, 2002). Apart from power and influence that each stakeholder exerts on the project there also those who will be affected by the outcome or development of the project. Moreover there others whose interest is to either see to the success of the project or its failure. The three types of considerations are important in determining who is a key stakeholder in a project. According to Pinto (2010) identification of project stakeholders involves looking at both internal forces and the external ones. Internal impact in most cases is positive because stakeholders’ intention is to see the project successfully implemented. They include top management team, accountant, other division managers and the members of a project team. On the other hand, there are external forces that resist the positive change of the project. This is usually from competitors, clients, suppliers, political, environmental, consumers and other groups that can intervene. In our case study the principal stakeholders are therefore the Geotechnical Company itself, its competitors in the construction industry because they can easily copy their project, government and the relevant environmental regulatory authority. 10.2 Articulations of the New Department Vision, Mission Values and Strategies in Relation to Overall Company Vision Vision acts as the main driving pillar of any organisation operation. All activities, ventures and formulations are done in line with the vision framework so that this noble aspiration is achieved. Vision can be seen as the ultimate goal of where an organisation wants to be in the future. It is futuristic dream that can only be realized with properly formulated strategic management plan (ic.gc.ca). Geotechnical Company’s vision is pegged on three fundamentals. These are to be the company of first choice for all stakeholders, challenging and changing the poor image associated with construction companies worldwide and adoption of leanness and agility process so as to compete with world-leading businesses. Apart from the above vision, the company has six guiding prices that influence their basis of operation. They are to make safety personal and work responsibly, lead by example, work as a team, and listen to everybody, trying to find or follow a better way, delivering their promise and aiming to succeed and collaboration with clients and partners. On the other hand, the new CSR department is to offers a new platform for the company in terms of brand value awareness by being environmentally conscious. 10.3 Setting up the Office This will involve around 8 steps Preparation of office project plan/ blue print. Preparation and refinement of office development plan which includes major tasks, deadlines, and responsibilities. Listing of the expected use. Figuring out how much money is available for operating costs, and it is budget. Agreeing on a decision making process for establishing the office. Decision on how funds and other resources will be managed. Preparation of estimates of start up and operating cost for the office. Making of decision after investigating alternatives, getting proposed agreements in writing, and considering possible problem areas (McKay, 1995, p. 1, 2 and 3). 10.4 Giving the new office necessary publicity so that it can contribute to value to the company’s brand and services According to systems view of organization, each department is integral for the success of the organization and thus, the need for continual improvement. In order for companies to stay afloat, there is a constant need for them to be involved in a continuous process of product or service improvement. This guarantees their customers a higher satisfaction. Continual improvement calls for a holistic approach in all departments of the firm. The improvement areas can be in service delivery management, production system and other internal control mechanism. Continual improvement is a prudent concept that allows a company to maintain its market leadership and react to opportunities (Cochran, 2003, p. 1 and 2). The creation of this new department can be seen as a continual improvement and thus, it requires that much needed publicity as it will be useless to do an improvement that does not add value due to lack of publicity. The main of publicity is to give it the required attention which the company can in turn use to gain competitive advantage over its competitors. Advertisement as a strategy of marketing is about creation of value to the customer and would be customer. With this kind of approach and the current global theme of climate change and sustainability, the company is able to strike an intimate relationship with its customers who are environmentally conscious. 10.0 Analysis of RINCE 2 In conclusion, working with this approach has been of mixed results due to numerous advantages involved and the disadvantages also involved. Project Performance International notes that the advantages of this process are that it is somewhat prescriptive. In addition, it is able to cause some level of standardisation in the organisation. Moreover, it can be easily tailored to a wide range of projects. This has benefit to corporate programme management, project staff training and projects performance & tracking. On the other hand disadvantages encountered while working with this process this standard only act as a method and not cure to the problem therefore meaning one has to engage in continual thinking. The other demerit is that most of human factors are not within the scope of the methodology (Project Performance International). 11.0 References Aras, G. and Crowther, D. 2009. Corporate sustainability reporting: a study in disingenuity. Journal of Business Ethics. 87: 279-288. Cochran, C. (2003). The continual improvement process: from strategy to the bottom line. California: Paton Press LLC. Corporate Social Responsibility. Retrieved from: http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/rs00557.html Geraghty, L. 2010. Sustainability reporting - measure to manage, manage to change. Keeping Good Companies, No. 3. Pp 141-145. Hubbard, G. 2011. The quality of sustainability reports of large international companies: an analysis. International Journal of Management, Vol. 28, No. 3, part 2. Isenmann, R., Bey, C. and Welter, M. 2007. Online reporting for sustainability issues. Business Strategy and the Environment.16, 487/501 McKay, E. G. 1995. Ten steps to setting up an office: a guide for small nonprofit organizations. MOSAICA Ortas, E. and Moneva, J. M. 2011. Origins and development of sustainability reporting: analysis of the Latin America context. GCG, Vol. 5. No. 2. ISSN: 1988-7116, pp: 16-37 Pinto, J. K. 2010. Project management (Ed.2). Upper Saddle River, NJ: Pearson Education, Inc. Project Performance International. Relationship between project management body of knowledge and PRINCE 2. Retrieved from: http://www.ppi-int.com/prince2/prince2-pmbok-relationship.php Van der Heijden, K. Bradfield R. Burt G. Cairns G. and Wright G. The Sixth Sense. Hoboken, NJ: John Wiley Sons, Inc. Werhane, P. H. 2010. Principles and Practices for Corporate Responsibility. Business Ethics Quarterly 20:4 (October 2010); ISSN 1052-150X, pp. 695-701 12.0 Appendix 1: Project Management Team Structure Officer (s) Roles Top level management (Board of directors, CEO and functional heads) Ensuring availability of financing and creation of appropriate internal environment through leadership and management techniques. Coordination of various departments inputs in order to ensure synergy and success of the whole project of setting up a new department. Liaising with project manager and all concerned parties so as to ensure the project adheres to timeline and required qualities Ensuring constant information flow internal and externally for the concerned stake holders In liaison with HR they will create the necessary human resource structure and hierarchies so as to ensure accountability and effectiveness. Moreover, they will be in charge of orienting the new staff in relation to their responsibilities and in relation to the overall mission and vision of the company and department Project manager Ensuring that the stated timelines and quality standards are adhered to by constantly updating and liaising with top level management. In addition, he directs the whole procedure from step one to the last as stated in section 8 Ensuring that supporting infrastructure, equipments and services are availed. This include the office space Acting as a conflict manager for different stakeholders Head of human resource department Recruiting and staffing of the new department so that the project can take off and Ensuring standards are adhered to in appointing the new holders for this department to be created In liaison with top level management they will create the necessary human resource structure and hierarchies so as to ensure accountability and effectiveness. Moreover, they will be in charge of orienting the new staff in relation to their responsibilities and in relation to the overall mission and vision of the company and department Quality assurance team Ensuring that various quality guidelines that are in line with ISO certification are adhered to. To achieve this they will need to liaise with external bodies and internal bodies like top level management, departmental heads and project manager Public relations department and CSR department Giving the new project required publicity so that it can elicit the required aura and public support. The publicity can be through media, open days, organisation of environment activities like tree planting and park rehabilitation. Connecting the newly established department with CSR activities that were already existing Giving the new department publicity materials like brochures and flyers. In addition, they will be posting in the website and in numerous media outlets about the progress so that people can see the connection of being ethical and environmentally conscious so that the company can increase its brand value while satisfying customer needs and minting profit for the shareholders, 13.0 Appendix 2: PRINCE 2 format. Source: Zandevakili 14.0 Appendix 3: Approvals Approved by: Project Leader Approved by: Project Leader Prepared by: Project Manager Prepared by: Project Manager Reviewed by: Quality Assurance Manager Read More