Iconic Projects Are Virtually Certain to Fail - Essay Example

Iconic projects are virtually certain to fail. Discuss; illustrate your answer with references to recently completed ‘trophy’ projects. Table of Contents 1. Introduction 3 2. Project management in commerce 5 2a. Characteristics of commercial projects 5 2b. Success/ failure of commercial projects 6 3. Iconic projects 9 2a. Aspects of iconic projects 9 2b. Weaknesses of iconic projects 10 4. Iconic projects in practice 11 4a. the Millennium Stadium, Cardiff 11 4b. The Emirates Stadium, Islington, London 12 4c. Wembley Stadium, London 13 4d. Perth Stadium, Western Australia 14 4e. The Durban Stadium, South Africa 14 4f. The Yankee Stadium, New York 15 5. Conclusion 15 References Appendix 1. Introduction The development of projects in modern market has to be based on specific criteria in order for the targets involved to be feasible. In the literature, the priorities of project managers have been explored and analyzed; it seems that different criteria are used by managers of projects in various industrial sectors in accordance with the characteristics of the specific industry, the needs of the firm/ authority involved but also the resources available for the realization of a particular project. In this context, it is noticed that the following three issues need to be appropriately addressed by managers of projects worldwide: ‘a) the project mission, b) the top management support and c) the project scheduling’ (Schultz et al., 1987 in Belassi et al., 1996, 142). If these issues are taken into consideration when designing and implementing a project then it can be expected that this project will be led to success. On the other hand, it is supported that the success or the failure of projects in modern market can be depended on many factors – different criteria could be also used in order to decide on the success or the failure of a particular project at any stage of its development. In accordance with Diallo et al. (2004, 21) ‘success can be evaluated only when the evaluation dimensions are adequately defined; a project is usually considered a success if its implementation complies with the usual constraints of time, cost and the client’s terms of reference or ‘‘quality’’’. The above description of a project’s success refers only to the general aspects of project success; there is no reference to the benefits that a project may offers to the parties involved – i.e. even if a project cannot be characterized as successful in terms of the achievement of its targets still it could offer benefits to its creators/ developers – referring to direct or even indirect benefits (e.g. increase of the quality of life of people of a specific area because of the development of a specific construction project – the above project may be left uncompleted or it could be use for a different reason than the one defined by its developers). The importance of project management for the improvement of many aspects of human life around the world could be possibly understood only by referring to specific projects and their benefits for people within the international community. The definition of project given by Gasper (2000) could help identify the general aspects of projects in modern market. In accordance with the above researcher ‘a project converts inputs to outputs, in an enclave largely but incompletely screened from external forces; and its aims for impact on higher levels of objectives, but subject there to greater external buffering, the more so the higher the level’ (Gasper, 2000, 18). Current paper focuses on the examination of the level of success of a specific type of projects: the iconic projects. The case of three ‘trophy’ projects that were completed recently, the Millennium Stadium, Cardiff, the Emirates Stadium, Islington, London and the Wembley Stadium, London has been used in order to show the various aspects of iconic projects but also to highlight their chances to success when being used in the development of various industrial activities. 2. Project management in commerce 2a. Characteristics of commercial projects Commercial projects have similar characteristics with projects in other sectors, like the political/ social ones. The fact that these projects are related with the achievement of specific business target makes them more critical – in terms of the effects of the above projects on the financial status of the firms involved. Referring to the elements of business plans in general Deutscher et al. (1988) noticed that ‘concepts as goal succession, goal displacement, and goal perspectives help illuminate the program as an ongoing organization’ (Deutscher et al., 1988, 607). Each firm has to customize its projects in accordance with its needs as well as the resources required for their completion; when the funds/ human resources/ IT infrastructure required for the completion of a particular project is extremely high and its benefits for the firm involved are at a rather low level then it is very possible that the specific project will be rejected. Under these terms, the commercial projects have the following characteristics: a) they involve in the achievement of a specific business target, b) they are limited as of their cost/ duration (any failure to keep the cost/ time of the project in the initial framework usually leads to severe financial damages for the firm involved), c) they cannot be differentiated – since they are designed and implemented there can be no differentiation of the project’s structure/ target; only regarding the methods/ resources/ IT infrastructure a differentiation could be allowed and d) they are related with the achievement of specific financial benefit (of any size); in other words, there can be no commercial project that has no financial scope; otherwise, it would be characterized as a cultural/ social effort (e.g. projects developed in education or within a local community) (Westerveld, 2002). In order for the targets of a commercial project to be achieved, it is necessary that all potential obstacles are taken into consideration in advance; because the completion of a commercial project is related with the achievement of specific financial benefits (as explained above) it is necessary that any factor that could prohibit the development of these projects is identified (if possible) in advance; appropriate measures should be taken at a next level in order to minimize the risk of failure and ensure the success of the project within the cost/ time initially set. 2b. Success/ failure of commercial projects The success/ failure of a commercial project will be identified and evaluated within the context already explained in the previous section. Certain factors that could influence the success/ failure of a project are also developed in this section. In the literature it is supported that ‘successful projects are characterized by teamwork, cooperation, mentoring, effective communication of outputs, high-quality vendor documentation, easily understood software syntax, higher levels of analyst experience, and structured approaches to model development’ (McHaney et al., 2002, 49). In accordance with the above assumption, the success/ failure of a project is depended on the level of the level of cooperation developed within a specific organization or within the team working on the completion of the project (when two or more organizations need to participate in the completion of a commercial project). The issue of cost/ time when evaluating the success/ failure of commercial projects is highlighted in the literature. In this context, it is supported that two are the main factors that can lead to the failure of a project: ‘failure to finish the project on time; budget overspending; and lack of experience by either the project manager or by members of the project team’ (Pedley, 2000, 43). However, it seems that differences can exist among various commercial projects regarding the effects of time/ cost on their success. Indeed, in the study of Westerveld (2003) it is noticed that ‘success criteria differ from project to project depending on a number of issues, for example, size, uniqueness and complexity; a universal clustering of criteria can be formulated to cover the whole issue of project success’ (Westerveld, 2003, 412). In other words, the evaluation of success/ failure of a project cannot be based on specific criteria – at least it should not be limited on certain criteria; it should be rather customized to the project’s scope, its priorities, the resources used but also the potential effects of this project on the performance of a particular organization/ or government – in the case that a commercial project is designed and developed in order to serve specific governmental plans. The factors influencing the success/ failure of commercial projects can be identified and understood through a series of cases where the performance of specific commercial projects was set under examination. The first of these projects is the so-called ‘Sunshine’ project, a governmental project in Japan. The specific project referred to the development of technology that is based on alternative sources of energy (characterized in the project as new energy). The project lasted for about 15 years (mid 1970s – early 1990) and led to the assumption that ‘the unexpected and complex relationship between ‘new energy’ technology development and irreversible environmental change can be reduced to the problems of assessment and decision-making in situations of uncertainty’ (Matsumoto, 2005, 623). In accordance with the above view, the use of effective assessment methods in the early stages of a project could reduce the risks for failures leading the specific project to the success. The specific issue is highlighted in the study of Salmen (1989) where the reasons for the success of World Bank projects are examined. In the above study it is proved that the use of a particular tool, the beneficiary assessment ‘can provide project personnel with information about community-based factors that may foster or limit social sector project success’ (Salmen, 1989, 273). Of course, different tools could be used in various industrial sectors in order to ensure the success of projects. The case of R&D (research and development) projects developed by U.S firms is used by Stiglitz et al. (1999) in order to show the interaction between the private and the public sector especially regarding the success of these projects. The specific study lead to the assumption that R&D projects can lead to significant benefits but they should be carefully designed and supported by the state; otherwise, they it would be led easily to failure – since the risk of underinvestment would exist. 3. Iconic projects 3a. Aspects of iconic projects Iconic projects are rather difficult to be explained with accuracy; it could be stated that the specific term has been established in order to represent a series of ideas that is still under development but which – when completed – will change drastically its environment (political, social, industrial). Iconic projects are used by firms around the world in order to show the potential of these firms to introduce innovative plans influencing the social, political or environmental conditions of a specific industry/ region. The characteristics of iconic projects could be easily understood if using specific examples – i.e. iconic projects that have been developed worldwide. An indicative example is the case of DAMAC Properties, a firm that operates in the luxury industry – providing to its clients a luxury lifestyle. The specific firm has participated in the Cityscape Dubai 2008 ‘the largest business-to-business real estate investment and development event in the world’ (World News, 25 November 2008). During the specific event, the firm will present to its customers a series of iconic projects related with its activity. In the above event, the iconic projects of Hydra Property, a well-established firm that operates in the area of property development, will be also presented in order to support the increase of the firm’s performance around the world (Zawya, 4 October 2008). Similar events are held in major cities worldwide – especially those cities that are well developed in terms of finance and commerce, like London. The World Travel Market held in the specific city – at ExCel (one of the most important conference centres in Britain) is often used for the presentation of iconic projects regarding specific business initiatives. In the above mentioned event, the firm Aldar Properties, has presented one of its iconic projects – one of the most important – the Yas Island, a place that is expected by its creators to be the favourite destination of many people that seek for luxury destinations (AME info, 10 November 2008, see Figure 1, Appendix). The above efforts prove that iconic projects are important part of all commercial activities; before developing a specific business plan it would be preferable to present it using appropriate technology – which is quite necessary when having to deal with the development of iconic projects. In accordance with the study of Sklair (2005) ‘deliberately iconic architecture is becoming a global phenomenon, specifically a central urban manifestation of the culture-ideology of consumerism’ (Sklair, 2005, 485). The above view refers to a specific sector, the construction one; iconic projects have a major role in the development of the specific sector. In fact, iconic projects are used in construction in order to represent the main aspects of a specific project, i.e. to show the expected characteristics of a site – as they can be estimated using the existing data. 3b. Weaknesses of iconic projects Iconic projects – as all projects – can have weaknesses. As it is already explained above, iconic projects are developed in accordance with specific principles/ guidelines being limited as of their duration/ time of completion. However, in most cases, the targets set regarding the resources employed or the targets of a specific iconic project may be proved inaccurate. In this case, the cost of the projects is expected to be high – above the initially estimated limit – while the time spent for the completion of the project will be also extended leading to financial losses of the firms involved. The specific issue has been examined by Prasser (2007) who supported that one of the most significant problems of governments worldwide is ‘the misallocation of spending on ‘big’ and so called ‘iconic’ or prestige projects that too often become expensive ‘white elephants’ requiring considerable post-completion maintenance and support and further lasting valuable resources that could be used elsewhere’ (Prasser, 2007, 47). On the other hand, iconic projects are necessary in order for the infrastructure of a specific region to be developed meeting the standards set by the local or the international community. In this paper, the examples chosen for the presentation of the strengths/ weaknesses of iconic projects all refer to the athletic events field; in this context, a series of recently completed stadium is presented highlighting the value of iconic projects under specific political and social conditions but also their demands and requirements – as they can be increased through the development of these projects. 4. Iconic projects in practice 4a. the Millennium Stadium, Cardiff The Millennium Stadium Cardiff (see Figure 2, Appendix) is an iconic project that finished on October 1999. The specific project lasted about 2 years – it started on 1997 and its cost (126m pounds) was rather limited if taking into account the characteristics of the Stadium developed. During the development of the specific iconic project, a series of issues, like the appointment of a skilled project management and the improvement of some aspects of the project had to be addressed. On the other hand, the disputes between the main contractor, Laing Construction, and the subcontractors had to be carefully handled ensuring that the main parts of the relevant plan would be applied; alterations on the initial project could be made but it should be ensured in advance that the effects of these alterations on the quality/ cost of the project would be limited – as possible. Despite the fact that major efforts were made by the contractor in order to meet the time set for the completion of the project, certain failures were observed during the execution of the project: poor communication with the authorities and the inaccurate planning regarding the development of the work were found to be the main weaknesses of the specific project. 4b. The Emirates Stadium, Islington, London In the same country, UK, another important iconic project is offered for evaluation. The Emirates Stadium, London (see Figure 3, Appendix) was completed in 2006. The duration of this iconic project was also two years (from March 2004 to July 2006); however, its cost was increased compared to the iconic project described before; about 220m pounds were required for the completion of the specific project. The contractor, Sir Robert McAlpine, made sure that the major features of the iconic project were developed; however, as in the previous case, a series of problems finally occurred. In this context, the demolition of existing buildings and the waste management throughout the development of the site had to be appropriately addressed by all parties participated in the specific project. On the other hand, during the development of the project it was proved that the time available for the construction was not the estimated one, an issue that was carefully addressed by the contractor and the architect of the project. The time for completion of the project and the space available for the realization of the relevant plans had to be addressed by the contractor. The project was led to success, no failures were identified; the effective planning and the close monitoring of the project were proved to be of critical importance for the success of the project. 4c. Wembley Stadium, London The Wembley Stadium in London (see Figure 4, Appendix) has be an important project not only in terms of its capacity but mostly in terms of the application of the rules included in its plans. The specific project lasted for about 5 years (from September 2002 up to May 2007) and its cost can be characterized as rather high if compared with the previous two projects; about 827m pounds were required for the completion of the specific project. A series of facts during the development of the project – like disputes between the employees and the failures of specific works/ accidents – had to be addressed by the contractor and the project manager. However, legal action was finally taken against sub-contractors because of the failures occurred throughout the project’s development. It was proved that the budget of the project was not carefully estimated; moreover, the time for completion was found to be inaccurate – taking into account the needs of the specific site and the complexity of the works required for the completion of the project. In this context, the project management of the specific project could be characterized as inappropriate failing to face effectively the problems appeared during the development of the specific project. On the other hand, the Wembley Stadium was important for the local community – also at national level – being a site that can be used for the development of major football events – an issue that was also emphasized by the media. 4d. Perth Stadium, Western Australia Perth Stadium in Western Australia (see Figure 5, Appendix) is an iconic project that is due to be finished by 2016. The planning of this project was completed during 2008 and the next phases of the project are going to be developed in accordance with specific guidelines (rules) – the Development Timeline. Up to now, the development of the specific project is in accordance with the timeline set the project team. 4e. The Durban Stadium, South Africa The Durban Stadium is an iconic project that will be fully completed by 2010; however, it is estimated up to now that the specific project will be completed ahead of the time estimated in the initial plans – in other words it is quite possible that within 2009 the Durban Stadium will be available to the public. The specific project was developed in order to support the country’s participation in the 2010 FIFA World Cup. Currently, about 2,500 employees are working on the site; additional positions will be created for the realization of the other phases of the project. 4f. The Yankee Stadium, New York The Yankee Stadium in New York (see Figure 6, Appendix) is a project that is expected to be finished by 2009. The Stadium will be of about 60,000 capacity and it is going to keep all major features of the specific place – which has a significant history for the local community. A potential expansion of the project by 2011 is planned – in case that it is required. Up to now, no major failures have been identified. The project is being developed in accordance with its plans. 6. Conclusion The development of iconic projects is a challenging task. Even if all parts of the relevant plan are taken into consideration, there will be issues that have been not adequately addressed. The specific fact is clearer in the case of the Millennium Stadium (Cardiff) described above. In the specific iconic project, the failure of the contractor to handle disputes during the development of the project led to failures regarding specific aspects of the project (as already explained). On the other hand, it is noticed that ‘there can be ambiguity in determining whether a project is a success or failure; first, it is not clear how to measure project success because the parties who are involved in projects perceive project success or failure differently; moreover lists of success or failure factors vary in various studies in the literature’ (Belassi et al., 1996, 141-142). In other words, the evaluation of the success/ failure of a project is a challenging task; no personal assumptions can be made; rather all conclusions should be justified using specific facts related with the project under examination (Hardless, 2005). Regarding this issue, it is made clear that the ‘choice of methods in evaluation should be driven by an understanding of the nature of what is evaluated (including a theory of social programming), and by choices about broad approach, questions and focus’ (Gasper, 2000, 18). In other words, the evaluation of the success/ failure of iconic projects should be based on appropriately supported arguments; the initial requirements of the projects would be taken into consideration; moreover, the ability of contractor and the project manager to effectively address all issues related with the development of a specific project has to be taken into consideration when having to evaluate the success/ failure of an iconic project. The examples presented in this paper show that the success/ failure of iconic projects can be affected by the skills/ abilities of the people working in the specific project. It has been also proved that communication and cooperation need to be at high levels in order for an iconic project to be successful – i.e. to meet all the standards/ requirements of its initial plan References AME Info (10/11/2008) Aldar showcases its iconic projects at WTM London, available from http://www.ameinfo.com/175018.html [last accessed on 25/11/2008] Belassi, W., Tukel, O. (1996) A new framework for determining critical success/ failure factors in projects. International Journal of Project Management, 14(3): 141-151 Diallo, A., Thuillier, D. (2004) The success dimensions of international development projects: the perceptions of African project coordinators. International Journal of Project Management, 22: 19-31 Gasper, D. (2000) Evaluating the logical framework approach towards learning-oriented development evaluation. Public Administration & Development, 20(1): 17-28 Hardless, C., Nilsson, M., Nulden, U. (2005) ‘Copernicus’ - Experiencing a Failing Project for Reflection and Learning. Management Learning, 36(2): 181-217 Matsumoto, M. (2005) The Uncertain but Crucial Relationship between a ‘New Energy’ Technology and Global Environmental Problems. Social Studies of Science, 35(4): 623-651 McHaney, R., White, D., Heilman, G. (2002) Simulation Project Success and Failure: Survey findings. Simulation & Gaming, 33(1): 49-66 Pedley, P. (2000) Implementing and project managing a new library management system. Business Information Review, 17(1): 43-49 Prasser, S. (2007) Overcoming the ‘White Elephant’ Syndrome in Big and Iconic Projects in the Public and Private Sectors. Improving Implementation: Organisational Change and Project Management: pp.47-67 Salmen, L. (1989) Beneficiary Assessment - Improving the Design and Implementation of Development Projects. Evaluation Review, 13(3): 273-291 Sklair, L. (2005) The Transnational Capitalist Class and Contemporary Architecture in Globalizing Cities. International Journal of Urban and Regional Research, 29(3): 485-500 Stiglitz, J., Wallsten, S. (1999) Public-Private Technology Partnerships. American Behavioral Scientist, 43(1): 52-73 The Perth Stadium, available from http://www.perthstadium.com.au/index.php?id=5 The Durban Stadium, available from http://www.shine2010.co.za/goodnews.php?article_id=74 The Yankee Stadium, available from http://www.nycgovparks.org/sub_your_park/nyy_stadium/html/nyy_redevelopment.html Westerveld, E. (2002) The Project Excellence Model: linking success criteria and critical success factors. International Journal of Project Management, 21: 411-418 World News (25/12/2008) DAMAC Properties to Showcase iconic projects at Cityscape Dubai 2008, available from http://article.wn.com/view/2008/10/01/DAMAC_Properties_to_showcase_iconic_projects_at_Cityscape_Du/ [last accessed on 25/11/2008] ZAWYA (4/10/2008) Hydra Properties to parade its iconic projects at Cityscape Dubai, available from http://www.zawya.com/story.cfm/sidZAWYA20081004093558/Hydra%20Properties%20to%20parade%20its%20iconic%20projects%20at%20Cityscape%20Dubai [last accessed on 25/11/2008] Appendix Figure 1 – An iconic project – Yas Island by Aldar Properties (AME info, 2008) Figure 2 – The Millennium Stadium, Cardiff (source: case study) Figure 3 – The Emirates Stadium, Islington, London (source: case study) Figure 4 – The Wembley Stadium, London (source: case study) Figure 5 – Perth Stadium, Western Australia (source: http://www.perthstadium.com.au/index.php?id=72) Figure 6 – The Yankee Stadium, New York (source: http://www.nycgovparks.org/sub_your_park/nyy_stadium/html/nyy_redevelopment.html) Read More