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Inappropriate project strategies

Rationalizing continuation the project failure escalation process

Therationalisationforproject continuation cannot continue forever and eventually a threat appears that forces management to acknowledge the black hole, which is consuming matter, energy an careers

Actions are finally taken to shut down or fundamentally re-plan and re-direct the project

Managersandexecutivessometimeshave a tendencytobecometrappedinfailingcoursesofaction, evenwhenthereisevidencethatthingsaregoingseriouslywrong.


Executivescanlearntoavoidthistrap, however, iftheyunderstandthedynamicsoftheescalationprocess. Actionableadvicealreadyexistsforhowexecutivescanrecoverrunawayprojectsandhowtheycanextricatetheirorganizationfrom a projectthathasgoneaway.





Earlyinterventioncanstaunchtheflowofresourcesthatgetsuckedintotheblackhole, butthisrequiresknowledgeofhowescalationdevelopsovertime, whatthewarningsignsare, andhowtheprocesscanbehalted

5.What are megaprojects?

■ Large-scale infrastructure is designed and delivered as megaprojects of $1bn or more (Flyvbjerg et al, 2003)

“Productivity paradox”: despite growth in number and opportunities to learn, projects often fail

■ Megaproject organisation:

Large temporary coalition of suppliers


– Led by large client, prime contractor or joint venture

– Process tailored to the requirements of the project

• Opportunity to find new ways to improve performance

– Success depends on new and innovative ways to manage uncertainty and complexity

RAND study of 52 major projects: average cost overrun 88%, only 50% performing as expected

Inappropriate project strategies

Some project strategies deployed do not properly consider the level of scope definition, the fast track nature of the mega project environment, market condition, owner participation, owner control and owner risk.

■ Improper or late consideration of the following project strategies adds to cost overruns (ECI, 2002):

Project management strategies such as risk management, project control, change control, communications, organization and responsibilities.

Contract strategies relating to management, design, construction and commissioning services.

Design strategies such as contributions from client business, operation, project team, contractors and suppliers.

Procurement strategies including preferred suppliers, progressing, inspection and expediting, receipt, storage and management, spares and documentation.

Construction strategies including site management and organization, site layout, power, work breakdown structure, construction method, schedule and milestones, industrial relations, and pre-commissioning.

Commissioning strategies including responsibilities, schedule and integration with construction, resources, training and validation, engineering and trade support, and provision of operating materials.



Variant B

1.Managers at headquarters generally graded factory management on two criteria – yield and quality.

1. Yield was the number of cars actually produced in relation to the scheduled number.

2. Quality was measured after vehicles with defective parts had been repaired.


Date: 2015-12-18; view: 796

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