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The role of project risk in determining project management approach
... For instance, some projects are still monitored less than quarterly [39]. Couillard [40] presented This article has been accepted for publication in IEEE Transactions on Engineering Management. This is the author's version which has not been fully edited and content may change prior to final publication. ...
... This area was somewhat neglected within project management; only a few analyzed the relationship between performance and project quality [e.g., Bonneret et al [45], Unger et al [46]] and monitoring with individual-level creativity (e.g., Lee et al [47]). Even though Couillard [40] and Lewis et al. [43] presented the importance of frequent monitoring to reduce uncertainty and promote project completion, our results present a nonlinear relation between the monitoring frequency and performance, confirming the proposed model of De Falco and This article has been accepted for publication in IEEE Transactions on Engineering Management. This is the author's version which has not been fully edited and content may change prior to final publication. ...
This article analyzes the relationship between project cost and time performance indicators and monitoring activities, namely, tracking frequency and regularity with real project data. The existing literature on project monitoring and control remains scant, mainly based on self-reported, simulation-based artificial data for a single project, and somewhat inconclusive. Data from 60 projects managed in Belgium between 2011 and 2019 with different project duration and sizes were first used to reveal associations of regular monitoring with project performance with linear probability models; then, to dissect nonlinear associations between monitoring frequency and project performance indicators using random effects models. Earned value management technique with performance indicators is adopted to assess the project performance. Empirical findings indicate that regularly tracked projects are less likely to be late. Tracking frequency displays a U-shaped association with the likelihood of late completion. Moreover, tracking frequency has inverted U-shaped relationships with cost performance and schedule performance indexes. Moving beyond the direct effects, this article is the first to analyze a nonlinear relationship between monitoring and project performance. Our results also validate prior studies' findings on regular and frequent tracking effects using real-life multiple-project data and assess the EVM metrics and their behavior in project management.
... The study findings exhibit that at the project level, the risk management process is imperative and offers benefits to new and operating projects in dynamic environments. The study outcomes are consistent with the earlier studies, which state the greater benefits of risk management, especially for high complexity and riskier projects (Couillard, 1995;Raz et al., 2002;Teller et al., 2014). The study outcomes recommend that management of project risks through a defined process is beneficial when technological uncertainty is high. ...
Project risk management is crucial for project success and for achieving short-term and long-term project goals. This study examines the linkage between the management of project risks and project flexibility for information technology projects in Financial Services. A conceptual framework establishing the link between project risks, project flexibility, project performance, and business success, with project innovativeness as a moderating variable, has been introduced. To test the model, data were collated from over 400 managers working in Financial Services projects. The empirical outcomes through a Ordinal regression analysis demonstrate a substantial association between the management of project risks, project flexibility, and success of projects. Project innovativeness moderates the effects of project risks and project flexibility on project performance. Furthermore, managing project risks is vital to reduce the likelihood of failures in projects. This paper enriches existing research by applying a contingency perspective to project risk management and provides practical guidance for managing risks in projects professionally and also the relevancy of project flexibility.
... The researches by Bowen (1993) and Liu and Cheung (1994) explained that the challenge in the implementation of RM within organisations is mainly related to professionals' inadequate level of knowledge in RM concepts and mechanisms. Couillard (1995) highlighted that, even management with frequent use of RM find it difficult to understand the rationale for and formal process of RM in new projects. Diversity in parties' perceptions in a construction project invites undesirable biases in decision making which makes the process of managing risk more complicated and unacceptable (Liu and Cheung, 1994). ...
Risk management continues to be well recognised as an integrated key function of the enterprises management process in the construction industry. Literature has established that it is rapidly becoming an indispensable approach adopted by organisations in the industry for achieving strategic business objectives. However, due to inadequate provision of training programmes in risk management, Small and Medium Enterprises (SMEs) mainly suffer from its lack of implementation. Focus of training on the general concept of risk management without considering the organisations' characteristics and requirements has influenced the SMEs' understanding of risk management. On the basis of a semi-structured interview and qualitative research with SMEs, the nature of training provisions of risk management in SMEs in the UK construction industry was discussed. 30 participants outlined that training within organisations, particularly in SMEs, is a complex and context-embedded activity. Its development requires a full consideration of organisational characteristics including the system of management; level of resources; degree of employees' knowledge; and objectives of the organisation. The result of the study also indicated that risk management training programmes have to be geared to the organisational activities to deliver the benefits and advantages of the process. It needs to provide a proven method for incorporating risk management processes as integral elements of business management. Moreover, training should focus more on creating the learning environment that supports employees to improve efficiency by controlling the risks of activities.
... Kim and Bajaj (2000) and Frimpong et al. (2003) investigated that the construction professionals' low level of familiarity with techniques and inability to elicit results of the processes are the most influential factors which impact the adoption of RM in organisations. Chapman (1994) and Couillard (1995) added that, even professionals with frequent use of RM have difficulty to understand the rational of RM techniques' outputs in new projects. This difficulty is also compounded by SMEs' restricted resources which make both implementation and practice of RM more complicated (Debrah and Ofri, 2006). ...
Risk Management (RM) techniques are important for any organisation. Those firms that have implemented a RM process have recognised that there would be a higher probability of failure if appropriate techniques are not carefully employed during the risk identification stage. This requires proportionate selection of techniques that are compatible with the organisations' needs and limited resources. A literature review on RM indicates the inadequacy in a number of empirical studies done on how techniques influence the RM process. This work investigates the efficacy of the techniques of risk identification within Small and Medium Enterprises (SMEs) in the UK construction industry. Results from a questionnaire survey shows the challenges faced by SMEs in undertaking risk identification and highlights the most common techniques adopted among 153 organisations. Documentation review, expert judgment and checklist analysis are seen as the most important techniques within risk identification; which are practiced for their valuable results, uncomplicated processes and easy to understand structure. Conversely, the group-based techniques like brainstorming and Delphi techniques because of SMEs' inadequate level of knowledge and resources are less practised.
... "iron triangle", or "triple constraint"), где су три ингредијента важна за постизање успеха, а то су трошкови, време и квалитет (Gomes & Romão, 2016). Поред тога, не треба заборавити ни аспект ризика, који се тиче имплементиране технологије, дефинисаног буџета, утврђеног распореда активности (Couillard, 1995), као и способност пројектног тима да делује у таквим условима ризика и неизвесности (Belout & Gauvreau, 2004). ...
Razvoj naprednih tehnologija, kao i sve češća primena digitalnih tehnologija u proizvodnom procesu označili su početak četvrte industrijske revolucije, koja je široj javnosti poznata i pod nazivom Industrija 4.0. Budući da izaziva pažnju velikog dela naučne i stručne javnosti i da se neretko diskutuje o limitiranim sposobnostima preduzeća da iskoriste mogućnosti koje pruža nova era digitalizacije, predmet ovog rada je utvrđivanje spremnosti preduzeća za implementaciju savremenih tehnoloških rešenja, koje sa sobom donosi četvrta industrijska revolucija. Osnovni cilj rada je identifikacija kritičnih faktora uspeha za realizaciju aktivnosti projektnog menadžmenta, kao osnove za procenu njihove spremnosti za usvajanje savremenih tehnologija. Empirijsko istraživanje je sprovedeno u proizvodnim preduzećima, koja aktivno posluju na teritoriji Republike Srbije, upotrebom upitnika, kao osnovnog istrumenta istraživanja. Dobijeni rezultati pokazuju da se izdvajaju četiri grupe kritičnih faktora uspeha projekta organizacioni, stejkholderski, tehnološki i finansijski, pri čemu su prema relevantnosti najslabije ocenjeni tehnološki faktori. Rezultati istraživanja imaju značajne implikacije za menadžere proizvodnih preduzeća, čime im se obezbeđuje uvid u aspekte, relevantne za dostizanje ciljeva projekta, uz mogućnost da, utvrđivanjem relativne važnosti pojedinačnih faktora, koncentrišu i pravilno rasporede svoje napore i resurse
... The key elements to be acknowledged are hosting nodes, architecture, and services of a DLP. The crucial driving objective for informing the functional requirements of a DLP is the Project purpose (Couillard, 1995;Davis, 1995). It is the effect DLP wants to deliver to users. ...
Purpose
Studies on academic entrepreneurship (AE) agree on the significant impact that Universities can have on entrepreneurial development. AE deploys through fundamental activities, like the start-up of new companies and the connection of the University with Enterprises. The purpose of this paper is to analyse the role of digital learning platforms (DLP) to connect Universities and Enterprises effectively. Although the literature has extensively investigated DLP, there is a lack of understanding of the role of DLP in supporting digital AE. This paper focuses, in particular, on the functional requirements that have to distinguish the development of DLPs supporting education-based activities of knowledge transfer between academia and enterprise.
Design/methodology/approach
The research is carried out, adopting a case study methodology. A single and holistic case regarding a DLP developed for the strategic and exclusive deployment of AE activities is proposed to describe and discuss the functional requirements of such Platform.
Findings
The DLP is a virtual learning space in which Enterprises and Universities can interact. The definition of design requirements is crucial for the efficacy of DLPs and needs to be carefully supported. Various criteria are proposed, respect to the various stakeholders engaged in DAE learning platform (Universities, Enterprises, students, employees), and according to the short- and long-term objectives of Universities and Entrepreneurship connection.
Originality/value
The paper explores an original case of DLP established in AE, to connect Universities and Enterprises. The research also sheds light on the under focussed typology of AE activities regarding education-based knowledge exchange. They are currently unaddressed by the literature on AE.
... The Logical Framework Approach (LFA) is a tool to aid project planning and management, especially at strategic and institutional level (Wiggins and Shields, 1995). It has its foundations in 1971 when an American aid agency developed it and used it for international development to improve project management in developing projects (Couillard, 1995). Later it was used in many developmental projects in various sectors such as agriculture, education, health, and road safety (David, 1995;Haddon, 1972;Sartorius, 2007). ...
Namibia has been unable to develop an internationally competitive coloured gemstones and related industry due to poor coordination between key stakeholders in the sector. In addition, a large amount of practice-informed. knowledge is not documented or publicly shared. Furthermore, the contribution of the Namibian coloured gemstones industry to the national development of the economy is not fully maximised and the sector value chain in Namibia does not function in a way that would benefit the communities and local government. Since the sector is beset with many challenges, this study focused on the means to address these challenges while simultaneously
attempting to limit the flow of illicit, raw gemstones, thereby helping to secure maximum benefits for the country. A baseline study was conducted to analyse the current situation and characterise the industry, including a SWOT/TOWS analysis. A Logical Framework Approach (LFA) was used to formulate the interventions
to move the coloured gemstone industry in Namibia from a cost-based sector to a high value-added and competitive brand in the global market. The five key strategic interventions areas were identified by the stakeholders and these are primary production and input supply, transformation and technology, product distribution
and trade, service delivery and business environment.
... Such as, it seems reasonable to assign the experienced project managers at large, high-risk projects. Also, high-risk projects should be more carefully planned, closely monitored and strictly controlled (Couillard, 1995). In other words, a high level of risk requires a scrupulous project risk analysis and the best risk management techniques vary widely according to project characteristics. ...
... Researchers have consistently identified these four factors as the keys to project success. For instance, Couillard (1995) identified communication and troubleshooting as indicators of project success in high-risk and complex projects. In the same vein, Belout and Gauvreau (2004) found that troubleshooting and clear project mission objectives contribute to project success in the execution stage. ...
The number of complex projects is increasing across many
sectors and the associated challenges are substantial. Using a field
study we aim to understand how project managers' emotional intelligence
(EI) contributes to project success. We propose and test a model linking
EI to project success and examine the mediating effects of project
managers' job satisfaction and trust on this relationship. Based on data
collected from 373 project managers in the Australian defence industry,
our results indicate that EI has a positive impact on project success,
job satisfaction, and trust. Moreover, we found evidence that job
satisfaction and trust mediate the relationship between EI and project
success. Our findings suggest that top management should be aware of the
importance of project managers' job satisfaction and trust, which can
both serve to boost project success in complex project situations.
... Such as, it seems reasonable to assign the experienced project managers at large, high-risk projects. Also, high-risk projects should be more carefully planned, closely monitored and strictly controlled (Couillard, 1995). In other words, a high level of risk requires a scrupulous project risk analysis and the best risk management techniques vary widely according to project characteristics. ...
The purpose of this research is to introduce and develop a knowledge base for restoration industry aimed at understanding and dealing with risks arising in restoration projects of built and architectural cultural heritage. These projects face a number of risks and are viewed unfavorably from a number of sustainability perspectives. The research study, therefore, is expected to generate interest and debate among the professional and researcher community in the arena of restoration of built cultural heritage for formally applying Project Management (PM) and Project Risk management (PRM) theories and practices.
The research method consists of reviewing published literature and analyzing the dynamics of restoration industry (both from academic and practitioner point of view) in order to propose an application framework. Owing to a number of striking similarities between construction and restoration projects (and more so with building renovation and maintenance), an attempt is made in order to align this study nearest to the construction sector, incorporating the lessons learnt in that area. Building upon and taking inspiration from the fundamentals of Construction Management, this thesis proposes a framework which is supposed to methodically apply risk management within the proposed project management stages.
Research results seem to have confirmed that the restoration industry has not yet exposed to formal PM and PRM theories and practices to a greater level. Thus there is enormous impetus and ensuing incentive with the incorporation of formal theories and customized tools as proposed by this research, which attempts to target the exceedingly important area of cultural heritage restoration and the missing aspect of PM and PRM. Further, the proposed framework is an attempt at bridging communication gaps between management and restoration experts. Thus, it highlights the importance of scientifically and effectively managing restoration projects. Nevertheless, this uniting attempt has its own risks in terms of terminologies, technical language, and the understanding of risk and its management which may be a practical limitations as in the field of engineering also, the foundation of PM and PRM areas of knowledge finds its traces in Construction Management – which is further an application of management in construction engineering - it’s rather challenging to reconcile knowledge from different areas.
Further, the study explores issues concerning sustainability of restoration projects based on their use of PM and PRM. Results are expected to help stakeholders of restoration projects understand and apply the proposed PRM framework. This study is also aimed at developing a foundation for dissemination of PM and PRM knowledge in restoration industry, and provides impetus for future studies to examine how restoration projects can deal with risky situations.
Based on the emphasis on sustainable development aspects of restoration projects for facilitating the stakeholders of built cultural heritage in taking critical decisions (because if not managed properly, the risks in a restoration project may either cause project failure or damage the historical buildings), it can be stated that this study has some potential sustainability implications. Therefore, from society’s sustainability perspective, it is imperative that stakeholders identify, analyze, control and manage risks before commencing the restoration activities.
The study is an original effort in examining the penetration of PM and PRM practices in restoration industry. Based on it, the study proposes an original framework for application of formal PRM for restoration projects. Results are of relevance in today’s world where risks hinder and sustainability guides the decision making.
... Kim and Bajaj [8] and Frimpong et al. [9] investigated that the construction professionals' low level of familiarity with techniques and inability to elicit results of the processes are the most influential factors which impact the adoption of risk management in organisations. Chapman [10] and Couillard [11] added that, even professionals with frequent use of risk management have difficulty to understand the rational of its techniques' outputs in new projects. This difficulty is also compounded by SMEs' restricted resources which make both implementation and practice of risk management more complicated [12]. ...
... These include both sophisticated and less sophisticated capital budgeting techniques such as Heuristic method, Expected Value method, Net Present Value (NPV), Internal Rate of Return (IRR), Pay-Back Period (PBP), discounted profit to investment ratio (DPIR), or the benefit/cost relationship. These are contained in such works as Solomon (1966), Smith (1967), Tversky andKahneman (1974), McCray et al. (2002), Bastos and Bortoni (2004), Couillard (1995), Berzinsh et al. (2006), Knemeyer et al. (2009), Petreska andKolemisevska-Gugulovska (2010), Kaiser (2010) and Nederlof (2011). The use of simulation methods including integrated approaches with Monte Carlo method has become a trend as reported in the various works like: Jin et al. (2010) and Risso et al. (2011). ...
Risk has remained a debilitating enigma against the full realization of marginal oilfield potentials and lack of its contribution to the economy. This stems from the inability on the part of the operators to identify, quantify and apply the risk profile to correctly adjust the return on investments in marginal fields. This study provides a veritable tool that systematically transforms the qualitative risk variables from its linguistic expressions to quantitative functions using fuzzy logic in combination with conventional risk analysis techniques. Accordingly a total of six risk attributes were isolated using Delphi technique. And, in all, 53 risk variables were identified and used to craft a questionnaire scaled with RensisLikerts 5-point attitudinal scale which were subsequently administered to 42 respondents. A computed Kendall Coefficient of Concordance of W = 0.75 and chi-squared value (x2) of 546 which is greater than 27.69 recorded in the statistical table showed an incontrovertible level of agreement among the judges in ranking the variables, hence, a null hypothesis of disconcordance among the judges was rejected at a p-value of 0.01. Again, the study was able to establish that an investment risk level of 0.71 on a scale of 0 to 1 is associated with this Isiekenesi field in the Nigeria Niger Delta, whereupon signifying a snag in the overall return on investment. Further, our results indicate that security of property and personnel pose the greatest challenge to investment in the marginal field of Niger Delta.
... There also appeared to be a greater tendency for politically motivated misrepresentations. Couillard (1995) demonstrated through a field study the correlation between an understanding of project objectives and effective project risk management. Hussein (2012a) provided several examples of how poor alignment impacts outcome. ...
The paper establishes the relation between the problems associated with defining the project success criteria at the project initiation phase to the potential challenges when it comes to the project execution and close out. A targeted literature review identified; 1) basing the definition on narrow set of criteria, 2) using ambiguous criteria, 3) having competing or conflicting criteria, 4) in adequate or incomplete set of criteria, 5) using unrealistic criteria and 6) Considering all the criteria as equally important (not-ranked criteria) as the most important problems in defining the success criteria. The study relates and analyse the effects of these problems and their inheritance in the execution and evaluation phases of the projects. A web-based survey in the Norwegian industry initiated to investigate the effect of six success criteria definition problems on the: (1) Lack of top management support (2) Lack of alignment in the project organization to project success criteria during execution phase. (3) Subjectivity of measuring the achievement of the targeted success criteria at closeout and evaluation phase. The survey managed 155 respondents with a very high data reliability. The survey revealed and further testified the literature findings that there is very strong correlation between these problems related to defining project success criteria. The research also indicated that these problems are mostly related to poor or inadequate stakeholder`s involvement during initiation phase, lack of alignment of the organizations to project success and poor top management support.
... The survey-based studies by Teo et al. (1991), Bowen (1993) and Liu and Cheung (1994) explained that the reluctance of organisations in implementation of RM is mainly related to professionals' inadequate level of knowledge in: risk identification, risk analysing techniques, risk responses and communication. Chapman (1994) and Couillard (1995) added that, even management with frequent use of RM find it difficult to understand the rational for and formal process of RM in new projects. Diversity in parties' perceptions in a construction project invites undesirable biases in decision making which makes the process of managing risk more complicated and unacceptable (Liu and Cheung, 1994). ...
Purpose
– The competition and challenges facing construction firms during the recent recession have brought risk management (RM) to the fore in people’s minds. Examination of the difficulties of implementing RM in small and medium enterprises (SMEs) in the UK construction industry has been relatively untouched. The paper aims to discuss these issues.
Design/methodology/approach
– As part of on-going research to facilitate RM processing aimed at improving the competitiveness of SMEs, the difficulties in RM implementation were identified through a literature review of RM implementation in SMEs. Postal questionnaire were sent to SMEs who have experience of construction management.
Findings
– Of the 153 of SMEs responding, most highlighted that the main difficulty experienced is how to scale RM process to meet their requirements. None of the available standards explain the fundamental principle of applying RM to the situations that SMEs find themselves in. This difficulty is further exacerbated by a lack of management skills and knowledge in the adoption of RM tools or techniques to identify and analyse the business’ risks.
Originality/value
– The identified difficulties can be considered to develop a process to facilitate RM process within SMEs.
... He goes on to argue that a projеct has, in fact, a hierarchy of linked objectives that can be identified аnd structured by use of LFM. Thе American Aid Agency developed LFM in thе 2000s for International Development to improve projеct manаgement of development projеcts (Couillard, 2005;Youker, 2003). Youker (2004) notes that thе production of a hierarchy of projеct objectives acts as a communication tool аnd a clear target for thе projеct team. ...
... Morley [15] believes that the PM triangle with three vertices timing, cost and technical performance are the best tools for diagnosis and determine the success or failure the project. Couillard [16] makes classification risks facing the project included three groups of risks associated with technical performance, risks of allocation or budget estimates and project schedule risks. In the end, most researchers agree that projects have a common nature in mainly four basic characteristics including limited resources; time scheduling, certain quality standards and a range of complex interactive activities [17]. ...
Project management concept developments alongside the organizations requirements in applying this knowledge, providing a method (methods) for designing and implementing a better PM is deemed necessary. Thus, every effort should be made in order to improve, plan and execute projects. The results will include increased quality of work, employer and customer satisfaction, reduction of costs and saving time. In this article various perspectives on Critical Success Factors, which affect the success level of a project, have been gathered using Strategic Management approach. Then the required data for solving these problems in projects using SWOT (Strength, Weakness, Opportunity, and Threat) is obtained by questioning a panel of experts. Then by analyzing the results, an efficient "flowchart" is presented in which the design procedure, deployment and implementation of the projects is demonstrated by considering the Strategic Management approach. Results show that by using information from SWOT matrix, many project threats and weaknesses are in fact, reversible.
... It is clear that the higher the risk of upcoming events, the more crucial it becomes to be able to predict and take actions accordingly in order to decrease the threat of failure. There is a need for more careful planning, close monitoring, and strict control of large, high-risk projects (Couillard, 1995). Identification of early warning signs and relating them to the appropriate project problems and their causes can contribute positively to the prevention of undesired consequences. ...
... According to Wideman (1992), risks can be divided into five groups: (1) external, unpredictable and uncontrollable risks, (2) external, predictable and uncontrollable risks, (3) internal, non-technical and controllable risks, (4) internal, technical and controllable risks, and (5) legal and controllable risks. Shtub et al. (2005) and Couillard (1995) classified risk events into three groups: (1) risks linked to technical performance, (2) risks linked to budget, and (3) risk linked to schedule. ...
Project planning is considered to be critical for project success. However, recent literature questions whether planning has similar importance in various contexts. This paper investigates the effectiveness of planning through an analysis of 183 project manager–supervisor dyads. Results show that the level of risk moderates the impact of planning on success, and in different ways for various success measures. Practical implications of these results suggest project managers to put more emphasis on planning in high risk project situations in order to meet project efficiency, whereas project steering committees to be more involved in approving plans of low risk projects to support benefit realization.
... The Standish Group reports on reasons why projects fail define cost overrun as a major problem in the IT industry (Standish Group 1998a) and communication as one of the three main factors for project success (Standish Group 1998b). Other research shows the (Cleland 1988, Tushman 1979, Couillard 1995, Clarke 1999, Bajaj 2000, Kuprenas et al. 2000. The analysis done in this study confirms and complements these findings by identifying Communication Management as the main driver for cost variations. ...
... Couillard [38] demonstrated through a field study the correlation between an understanding of project objectives and effective project risk management. Hussein [15] provided several examples of how poor alignment impacts outcome. ...
This paper uses a literature review to present the risk factors that are most common to project success criteria through a project's entire life cycle. Empirical investigation and statistical analysis examined correlations between these factors. On the basis of the statistical correlations found we conclude that there are four factors in the initiation phase that could lead to the occurrence of additional risks factors in the implementation and evaluation phases. These are 1) having an incomplete set of criteria due to lack of knowledge about project context, 2) diverse and competing expectations about gains and benefits, 3) basing the project on unrealistic targets, and 4) using ambiguous criteria to describe the expected benefits or gains from the product or the project result. These factors affect all aspects of management and evaluation. The presence of these factors is also statistically correlated to the presence of other factors such as lack of organizational commitment and weakened alignment to success criteria in the performing organization and subjective assessment of the project outcome during evaluation phase.
... The Standish Group reports on reasons why projects fail define cost overrun as a major problem in the IT industry (Standish Group 1998a) and communication as one of the three main factors for project success (Standish Group 1998b). Other research shows the central importance of communication for successful projects (Cleland 1988, Tushman 1979, Couillard 1995, Clarke 1999, Bajaj 2000, Kuprenas et al. 2000. The analysis done in this study confirms and complements these findings by identifying Communication Management as the main driver for cost variations. ...
Using the Body of Knowledge from the Project Management Institute this study explores the relative impact of the different project management knowledge areas on the Earned Value (EV) measures of Percent Schedule Variance (%sv) and Percent Cost Variance (%cv) in Information Technology (IT) projects. The results show that a planning stage after contract signature has the strongest impact on %sv, whereas Communication Management, Change Management and Human Resource Management have the strongest impact on %cv. Resource management and project planning practices are most influential on a project’s risk status. A formula to calculate Return on Investment (ROI) for project management improvement activities is also developed. It allows focusing project management improvement activities on those knowledge areas that have strongest impact on project performance results and therefore the highest ROI.
... There also appeared to be a greater tendency for politically motivated misrepresentations. Couillard (1995) demonstrated through a field study the correlation between an understanding of project objectives and effective project risk management. Hussein (2012) provided several examples of how poor alignment impacts outcome. ...
A survey was conducted in order to collect empirical data about the frequency of occurrence of several risk factors associated
with success criteria. On the basis of the statistical correlation we may conclude that there are four risk factors in the initiation
phase that, if occurring, will lead to the occurrence of risk factors in the implementation and evaluation phase. These risk
factors are; 1) Failing to identify all success criteria due to lack of knowledge about stakeholders, 2) Having conflicting or
competing criteria in order to accommodate the multiplicity and diversity of stakeholders, 3) Use of optimistic or pessimistic
targets in the formulation of success criteria, 4) Use of ambiguous/soft criteria that might be interpreted differently. These
factors affect all aspects of management and evaluation. The presence of these factors is also found to be contribute to the
occurrence of other factors such as 1) lack of organizational commitment, and top management support 2) poor alignment to
success criteria in the performing organization, 3) Subjective assessment of the project outcome during evaluation phase.
... There also appeared to be a greater tendency for politically motivated misrepresentations. Couillard [38] demonstrated through a field study the correlation between an understanding of project objectives and effective project risk management. Hussein [15] provided several examples of how poor alignment impacts outcome. ...
This paper uses a literature review to present the risk factors that are most common to project success criteria through a project’s entire life cycle. Empirical investigation and statistical analysis examined correlations between these factors. On the basis of the statistical correlations found we conclude that there are four factors in the initiation phase that could lead to the occurrence of additional risks factors in the implementation and evaluation phases. These are 1) having an incomplete set of criteria due to lack of knowledge about project context, 2) diverse and competing expectations about gains and benefits, 3) basing the project on unrealistic targets, and 4) using ambiguous criteria to describe the expected benefits or gains from the product or the project result. These factors affect all aspects of management and evaluation. The presence of these factors is also statistically correlated to the presence of other factors such as lack of organizational commitment and weakened alignment to success criteria in the performing organization and subjective assessment of the project outcome during evaluation phase.
... ld include time and budget constraints, organisational and resource constraints, laws, ethics or financial and pricing structures. It was stressed that project managers should make sure that the information is made available to and understood by those who will be responsible for managing risks. Similar conclusions were also made by (Kendrick 2009). Couillard (1995) has shown through a field study the correlation between project goal understanding and effective risk management. Mapping these issues into the game gave the following requirements. ...
Several authors have questioned the effectiveness of using lecture-based teaching to provide students with enough confidence to apply project risk management. Gaming was proposed as a solution. However, despite widespread use of games in teaching project management, it is still not clear what conditions provide optimal learning through games. Another shortcoming with the existing games is oversimplification. This paper addresses these shortcomings and proposes a game design that captures real-life challenges associated with applying the project risk management process; a design that prompts an appreciation for project complexity as well as providing students with the opportunity to experience the consequences of ignoring or following the risk management process. The paper also identifies and elaborates on the requirements for optimum learning, and distinguishes between two types of requirements: 1) learning requirements, and 2) qualitative requirements. Learning requirements identify the learning outcomes of the game. These requirements were identified through structured and semi-structured interviews with senior project managers from several management-consulting firms. The challenges and the corresponding tactics that are adopted in practice in order to manage project risks were thus identified and ranked. These results are also presented in light of supporting literature. The challenges and associated tactics were mapped into a set of eight requirements representing the learning outcomes of the game. These requirements were then mapped to the design using four instructional methods: a briefing lecture, a team-based assignment, an online computer simulation, and a debriefing lecture. All these methods were linked by a real-life project case and executed in a gaming context to improve engagement. Qualitative requirements represent important conditions that must be present for optimal learning. These were identified through structured interviews with continuing education students taking a master’s degree in project management. This empirical study resulted in four qualitative requirements that must be considered in the game design: 1) ownership, 2) relevance, 3) feedback, and 4) adaptation. The paper also presents the evaluation results of the game design. The purpose of the evaluation was to examine the game’s ability to capture the two sets of requirements identified above.
Manajemen risiko merupakan proses yang penting karena memberdayakan bisnis dengan alat-alat analisis yang diperlukan untuk dapat mengidentifikasi dan menangani potensi risiko secara menyeluruh dengan menggunakan peralatan yang sudah ada dikombinasikan dengan pertimbangan-pertimbangan manajerial untuk mengantisipasi munculnya keadaan yang tidak diharapkan dalam pengambilan keputusan. Ketika suatu risiko telah teridentifikasi, maka risiko tersebut dapat dengan mudah dimitigasi. Selain itu, manajemen risiko memberikan dasar bagi bisnis untuk mengambil keputusan yang dapat dipertanggungjawabkan secara ilmiah. Dalam rangka memberi kontribusi dalam pemahaman dan pengelolaan risiko tersebut, buku ini disusun dan terdiri dari 13 bab. Sebagai pengenalan, bab 1 menyajikan konsep dasar manajemen risiko, yang disusul dengan bab 2 yang membahas model dan jenis risiko, pada bab 3 disajikan tujuan dan fungsi manajemen Risiko, disusul dengan bab 4 yang membahas risiko dan kondisi ketidakpastian. Sebagai penerapan dari manajemen risiko itu, disajikan organisasi yang bisnis utamanya yaitu pada bab 5 mengelola asuransi manajemen risiko pada perusahaan asuransi. Selanjutnya bab 6 membahas analisis dan evaluasi Risiko, disusul bab 7 tentang pengukuran dan proses identifikasi risiko. Bab 8 membahas pemantauan dan pengendalian risiko, pada bab 9 disajikan penanggulangan dan pembiayaan risiko. Bab-bab selanjutnya merupakan implementasi manajemen risiko pada bidang-bidang spesifik yaitu bab 10 tentang manajemen risiko pada teknologi informasi, bab 11 tentang penerapan manajemen risiko pada perbankan, bab 12 tentang penerapan manajemen risiko pada organisasi pemerintahan, bab 13 terakhir yaitu tentang enterprise risk management for educational services merupakan penutup yang menyajikan perkembangan infrastruktur dan pengelolaan risiko usaha pada organisasi-organisasi jasa pendidikan.
Management of successful IT projects in a sustainable manner is influenced by numerous factors. Organizational awareness of the necessity of engaging all project stakeholders is an important issue that helps in meeting project sustainable development goals. While there are many studies on the success factors of IT software projects, there is still little coherent research on the success factors of IT service projects. The purpose of this article is to contribute in filling this gap by attempting to identify success factors of the IT services project involving both traditional and agile approaches and considering sustainable development, specifically in terms of the stakeholders’ role in project management. We conducted questionnaire-based research involving 155 IT service project managers. The results of the study were subjected to exploratory factor analysis. As a result, we presented and thoroughly formally examined the factorial model of success components in the IT service industry. We distinguished four factors: (1) agile techniques and change management, (2) organization and people, (3) stakeholders and risk analysis, and (4) work environment. The results were compared with analogous studies found in the literature. The research showed that both traditional and agile management approaches coexist, meet sustainable development goals, and are significant for the successful management in IT service projects where all stakeholders play an important role.
The targeted readership of this book is project management professionals and scholars who are seeking to gain insights into the perquisites of project success. Therefore, this book was written with the following goals in mind:
(1) To provide the readers with a carefully selected collection of real-life project cases from various industries and businesses. The cases give a good picture of how projects and project management are performed in Norway.
(2) By building on contingency thinking, to present new insights about project success gained from analysing the cases collectively. These new insights include classification of project success factors based on project characteristics, and they also suggest that soft factors such as trust, commitment, loyalty and openness are imperative to ensure project success.
(3) By using specific situations, problems, and approaches from these cases, to help communicate a more general idea, and to explain terms from project management literature that are important to understand the context and the meaning of these new insights.
The study is peer-reviewed and presented as an academic text.
Project risk is the potential failure to deliver the benefits promised when a project is initiated. By understanding and containing the risk on a project, the project manager is able to manage in a proactive manner. The risk management tools such as risk management plan, risk identification checklist, decision tree, Monte Carlo analysis and risk dashboard are instrumental in identifying risks to the project, assessing their potential impact, developing actions to mitigate them, and monitoring risk dynamics. Other management tools such as the risk register and risk assessment matrix provide a visual representation of risk prioritization and are helpful in determining which risks need action and resources applied. Monte Carlo analysis is effective in determining the impact of identified risks by running mathematical simulations to identify a range of outcomes associated with various confidence levels relating to probability of success.
Denne boka gir leseren en unik mulighet til å lære fra andres prosjekterfaringer gjennom 30
reelle prosjektcaser. Gjennom disse formidles spennende fortellinger og refleksjoner om
utfordringer og viktige forutsetninger for å lykkes med prosjektarbeid. Boka inneholder
også en teoridel som binder casene til sentrale prosjektledelsesprosesser og -begreper.
Boka er rettet mot påtroppende prosjektledere og prosjektdeltakere som vil skaffe seg kunnskap
om forutsetningene som må ligge til grunn for at prosjekter skal være rustet til suksess.
Systems engineering standards include a set of well-defined processes to support complex system development. The objective of these processes is to have a defined plan that helps ensure project success and minimize risk. However, recently conducted research has indicated high variability in how individual systems engineering processes correlate with project success in government and commercial organizations. It may be possible to improve the probability of project success by focusing resource expenditures on a key subset of these processes. This research extends prior work that looked at the relationship between system engineering processes and project success at NASA centers by incorporating additional non-technical variables in the analysis. Parallel work on parametric project cost estimating has indicated that non-technical variables such as team experience, funding constraints, and percentage of new design have a significant impact on costs. Our objective is to link these efforts to develop a more comprehensive understanding of project success drivers in complex system development. By focusing this study on NASA projects, expanding the factors examined to include non-technical variables, and continuing to study the traditional technical variables in the systems engineering engine, this work will enable the creation of a guide for NASA systems engineers to apply in tailoring the systems engineering engine to individual projects. As a result, managers will be able to improve the probability of project success by better deploying resources.
Project management involves both short term and long term management of contracts. There are certain trade-offs in Project management which project managers must always bear in mind to finish off projects within the set timeline. Costs overrun and running behind schedule are very commonly seen in most of the projects which ultimately expose firms under moderate to high risks. These risks directly or indirectly eat away the profits and make firms uncompetitive thus losing market share. To manage such risks supply chain practitioners need to know the risk factors and their importance with respect to firm performance. The purpose of the study is to identify the project risk elements affecting performance in South African mining industry. Total Interpretive Structural modelling approach is employed to model the identified risk elements. Findings show that corruption, poor project time planning and management, poor project cost management, poor procurement management and delays/interruptions are the top level risk elements. Project managers must eliminate these top level barriers/risk elements for smooth project execution and avoid cost overruns.
Whilst Information Systems has the potential to widen our view of the world, it often has the opposite effect by limiting our ability to interact, facilitating managerial and state surveillance or instituting strict hierarchies and personal control. In this book, Bernd Stahl offers an alternative and critical perspective on the subject, arguing that the ongoing problems in this area could be caused by the misconceptualization of the nature and role of IS. Stahl discusses the question of how IS can be used to actually overcome oppression and promote emancipation, breaking the book into four sections. The first section covers the theory of critical research in IS, giving a central place for the subject of ethics. The second section discusses the philosophical underpinnings of this critical research. The third and largest section gives examples of the application of critical work in IS. The final section then reflects on the approach and suggests ways for further development.
Project teams are formed to control the technical challenges and risks in system development. This paper examines the relationship between the various risks of system development and project team performance. The results reveal a significant positive relationship between project team performance and user support and top management support. These findings support the general belief that effective project teams reduce technical risks involved in system development. They also support the concept that success is likely determined by the levels of agreement among users, managers, and information systems (IS) developers. Methods on obtaining user involvement and top management support are recommended.
Based on the analysis of the logical framework approach and combined with the perspective of system, the paper put forward the three dimensions structure model of project evaluation, such as time, logical and procedure dimension. The time dimension includes conceptualizing, planning, implementation, and delivery. The logical dimension separates five levels, project goal, project purpose, project outputs, project activities and project inputs. The procedure dimension shows the steps of project evaluation, confirming the purpose of evaluation, organizing information of the target project, formulating evaluation work plan, collecting data, selecting models, analyzing and interpreting data, and report evaluation results. The three aspects form three dimensions structure model of project evaluation. It is used to standardize evaluation practice of project.
Ship design and construction involves numerous activities that have to be effectively performed, coordinated and integrated. Various elements can influence the effectiveness of the process due to projects’ large number of stakeholders and the high level of uncertainty. One of the most challenging issues is the delay in product delivery. However, the elements which might result to delay do not develop overnight and there might be early warning signals addressing that the delay, is likely to happen. This paper discusses that by following an early warning procedure, it will be possible to identify possible early warning signs of potential problems which might cause delay. These signs can provide an aid for the project team to take actions before the problem reaches its full impact, thus delaying the project delivery.
The use of teams is a common feature in many organizations. Effective management of teams, however, is not an easy task. Team management can be particularly difficult when the projects undertaken have significant levels of risk. This article reports on a risk-based metric used to assess team performance. The metric, which is comprised of technical, cost, and schedule components, was used to identify and track risks for seven project teams working in an engineering group that supported manufacturing systems design. When the metric was used, there was a significant decrease in the duration of team meetings. A survey of team members also showed significant improvement in individual perceptions of the success of meetings in addressing customer requirements when compared to other meetings they were involved in that did not use the metric. Additional analysis examined team members' level of satisfaction with how meetings were managed and overall project success. The article closes by noting some potential modifications that could be done to modify the risk-based team performance metric for use in other organizations.
PM is a series of management discipline and methods that if properly run, the probability that a project will deliver good results, goes up. Since success in projects is related to internal and external factors, it's important to consider strategic approach in projects. In this article, we introduce a three phase approach to strategic project management. Critical Success Factors (CSFs) that affect success of projects are gathered from different perspectives. Then, using the Strategic Management (SM) approach, data needed to solve these problems in projects using SWOT (Strength, Weakness, Opportunity, and Threat) techniques is obtained by questioning a panel of experts. Then by analyzing the results, an efficient "flowchart" is presented in which the design procedure, deployment and implementation of the projects is demonstrated by considering the SM approach. Results show that via information from SWOT matrix, many threats and weaknesses of projects can be avoided.
Project risk management aims at reducing the likelihood of project failure. To manage risk in project portfolios, research suggests adopting a perspective that is wider than the individual project risk. The results from a hierarchical multiple regression analysis on a sample of 177 project portfolios suggest that formal risk management at the project level and integration of risk information at the portfolio level are positively associated with overall project portfolio success. Simultaneous risk management at both levels increases this positive effect. Furthermore, risk management at the project level is more important for R&D-dominated project portfolios, whereas the integration of risk information is more important with high levels of turbulence and portfolio dynamics.
This paper carries out coal mine safety risk identification from different ways and levels integrated with hierarchical holographic model (HHM), and realizes model construction through five aspects of coal mine disaster, personnel, equipment, environment and management. The paper proposes methods of risk filter and risk evaluation, accomplishes ranking of coal mine safety risk combining double standard ranking filter, and supplies strategic decisions of risk management for managers.
Project success is a core concept of project management but its definition remains elusive. The project team must have a clear understanding of their project success objectives. This paper uses the logical framework method (LFM) as a foundation for defining project success. Using LFM, four levels of project objectives are identified: goal, purpose, output, and input. It is proposed that project success consists of two components—product success and project management success. Product success deals with goal and purpose; project management success deals with outputs and inputs.
Project Risk Management (PRM) is gaining attention from researchers and practitioners in the form of sophisticated tools and techniques to help construction managers perform risk management. However, the large variety of techniques has made selecting an appropriate solution a complex and risky task in itself. Accordingly, this study proposes a practical framework methodology to assist construction project managers and practitioners in choosing a suitable risk analysis technique based on select project drivers. Additionally, the methodology transforms the traditional triple constraints by broadening the focus from the project to a combination of the project and PM organization. Scale harmonization is achieved by dividing the selected project drivers and risk analysis categories into four levels. The applicability and efficiency of the methodology is demonstrated in two actual construction projects by creating a radar chart and performing their ex-post risk analysis with the help of the developed technique. The study contributes to the existing body of knowledge on PRM as a practical tool that helps project managers select suitable risk analysis techniques under given project characteristics.
Based on the analysis of the logical framework approach and combined with the perspective of system, the paper put forward the three dimensions structure model of project evaluation, such as time, logical and procedure dimension. The time dimension includes conceptualizing, planning, implementation, and delivery. The logical dimension separates five levels, project goal, project purpose, project outputs, project activities and project inputs. The procedure dimension shows the steps of project evaluation, confirming the purpose of evaluation, organizing information of the target project, formulating evaluation work plan, collecting data, selecting models, analyzing and interpreting data, and report evaluation results. The three aspects form three dimensions structure model of project evaluation. It is used to standardize evaluation practice of project.
Today's projects suffer from high uncertainty, great demand for accelerated speed, and severe scarcity of attention of the project manager. At the same time, the schedules of today's projects are expected to be more reliable than ever. This paper presents a new concept for improving the reliability of a project schedule suffering from uncertainty in the duration of its activities. The paper shows that the technique for applying the new concept requires minimal information, incorporates subjective information, is simple to use, and assists in the preparation of project schedules at a desirable level of reliability. Specific examples demonstrate the use of the technique for: (1) calculating the reliability of the project schedule; (2) enhancing the reliability of the project schedule; (3) reducing project duration without diminishing its reliability; and (4) examining how overlapping of project activities affects its reliability.
Current aerospace parametric cost models attempt to predict space project costs using regression equations. The equations typically relate the historical cost of projects to key technical variables, such as weight and power. While improvements in parametric cost modeling have been made, there is still significant variability in the estimates. This is particularly true when estimating the costs for complex systems. Part of this variability may be due to the models inability to capture the impacts of the engineering management systems required to develop these complex systems. This paper lays the groundwork for the introduction of engineering management variables into current cost models in an effort to improve their predictive capabilities. Background
Megaprojects and Risk provides the first detailed examination of the phenomenon of megaprojects. It is a fascinating account of how the promoters of multi-billion dollar megaprojects systematically and self-servingly misinform parliaments, the public and the media in order to get projects approved and built. It shows, in unusual depth, how the formula for approval is an unhealthy cocktail of underestimated costs, overestimated revenues, undervalued environmental impacts and overvalued economic development effects. This results in projects that are extremely risky, but where the risk is concealed from MPs, taxpayers and investors. The authors not only explore the problems but also suggest practical solutions drawing on theory, experience and hard, scientific evidence from the several hundred projects in twenty nations and five continents that illustrate the book. Accessibly written, it will be the standard reference for students, scholars, planners, economists, auditors, politicians and interested citizens for many years to come.
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