Skill management
relates to communication, experience, clarity and training.
Good communication is
required so as to hold all of the technical functions together.
Ruggles also says that Communications Management is integrative,
providing an important tie between all of these functions; We
see here that the PM needs to manage and interact both with the
project boundaries, and in the larger community as well both
inside and out of the organisation.
Cultural management
relates to drive, charisma, values, courage and commitment. The
project manager MAKES IT HAPPENED by balancing all three of the
main activities according to the project requirements. The PM
also Promotes or Markets the project through the skilled use of
the appropriate media. This ensures maximum support and
commitment from within and from without the organisation,
ensuring that others also lend their support to the project.
Project Management
Process
Savory (1992:226)
stated: "The Total Manager must understand how to use Project
Management tools and techniques to expedite all stages of the
Product Work Life Cycle to satisfy the technical, time and
process agreements made with the Customer”. He/she also
suggests that the modern manager must accept that this life
cycle concept applies to all work performed in today's business.
The survival of the
manager today is closely related to the survival of the
organisation and managers need to adopt new, more facilitating
forms of leadership which empower the individual team members
with the support and authority to fully contribute to success of
the project. By accepting this move away from their previous
role as project specialist, PM’s are, by necessity, becoming
more multi-skilled and interdependent with the whole of the
project organisation.
Quality is a pivotal
function of Project Management and the improving of a process or
project can reduce costs and increase productivity; it also
follows that a balance between quality and productivity can be
achieved through application of traditional project management
techniques. Improved productivity depends on an increase in
conformity to the customer’s needs which in turn enables there
to be a consistent decrease in waste or variation of production
or services.
Project Management
Techniques
To balance quality and
productivity in a business process a large number of variables
must be managed. Increased productivity with improved quality
is quite possible if one is committed and willing to balance the
at first, seemingly contradictory sets of goals and objectives.
Based on the following
diagram Edosomwan, (1988), illustrates that productivity and
quality requirements should and can be managed concurrently in
the whole business cycle.
Fig: 16 - Quality And Productivity Lever
Of Balance
Total Quality and
Project Management
Mounting pressure is
placed on project managers to reduce variation in quality, and
this is in addition to existing operational pressures such as
resource limitation, project complexity, changing technology,
unstable industrial situations, regulations, and the impact of
increased competition. These pressures now compel project
managers, contractors and all the other stake holders to
introduce new initiatives and concepts designed to ensure
improved productivity and quality.
A truly supportive
organisational culture requires integration of quality into the
project management implementation area which support total
quality management principles as well as the requisite project
management approach developed for the project in-hand. This
integration of TQM with Project Management creates a new
Total Quality Project Management (TQPM) process. TQPM
empowers project personnel to perform each task to the quality
level required, whilst still maintaining project management
control of the project. Also refer to: Part I, “The Quality
System as a Management Tool”.
Organisational
Environment
The management of change
is the one of the significant organisational impacts confronting
management. Organisational change effects managers:
1. Structure: through changes in
procedures, budgets, and regulations;
2. Technology: through changes in work
flow, layouts, methods, standards and equipment;
3. People: through training, selection and
the effects of performance review and procedures.
Schwartz (1991:426 to
8) In a recent study on
implementing quality management into a changing environment said
that:
"Rigid organisation structures with a
highly formalised chain of command isolate workers from one
another and from the customer. Issues, opportunities, and ideas
must travel up one chain of command, laterally across the
organisation, and down another chain of command. The time
involved paralyses progress; the inevitable editing and
modifying which occurs along the way obscures critical problems
and impedes creative innovation. Perhaps the most outstanding
technique for breaking down the barriers or functional chimneys
in the organisation has been the formation of cross‑functional
or Super teams”.
Similarly Brunner
(1991:675) in his address at the 1991 Project Management
Institute symposium developed the matter even further when
referring to a six year study which involved aerospace
contractors, academics from university‑based productivity
centres, and the Defence Systems Management College, said:
"In order to respond to the challenges of
the future, we must move towards a vision of the organisation of
the future. The vision is the perceived result of a carefully
designed approach to changing the organisation. We do not share
as much information, knowledge, power and rewards as we should.
We have not moved the responsibility and accountability to the
lowest appropriate level in the organisation".
In Brunner's vision of
the organisation of the future the thinking, controlling and
performing functions occur throughout all levels of the
organisation, as below:
Fig: 17 - Brunner’s “Enterprise Model”
Brunner’s study of the
organisation of the future reflects the culture of the
inhabitants where the corporate life style takes on three major
characteristics: "Teamwork, Self‑Management and
Process‑Orientation". The purpose behind this is for team
members to work effectively, as a team; for them to accept
accountability for their decisions, self-management; and for
them to become more business or end-result oriented
Today's managers need to
fulfil similar roles when managing their projects, i.e., they
need to become “Total Managers” who must, apart from their
technical specialisation, be total quality managers able to
integrate the requisite technical specialisation of the project
with the TQM and training need for the project.
Introducing a new
culture into any organisation requires the philosophical
approach of team work and acceptance of the need for continuous
measurement, reporting and improvement. Such an approach is
found in the total quality teaching where the philosophy of TQM
is supported by specific managerial techniques which factor
introduction of this new approach into the work group. The
whole nexus of TQPM is predicated upon this fundamental
synthesis of the principles of TQM with the discipline of
Project Management; in this, we now have the new paradigm for
the project manager in the 20th Century, i.e., the Total Quality
Project Manager.
Project Management
Contracts
The project manager, as
team leader, has responsibility for throughput of work as well
as for a harmonious project environment and its associated
interactions with the wider community. He/she needs resolve
interface problems between projects, customers, vendors, and
related corporate entities. To successfully manage these
project boundaries the PM needs to build the project
infrastructure and act as a cross-organisational facilitator,
apart from the more traditional role of team leader and
supervisor.
Poor communication is
generally a major cause of inadequate project performance, and
these communication barriers can be attributed to poorly defined
lines of authority or responsibility for performing off work
tasks. Clear definition of all the contractual obligations for
a project can overcome many of these barriers to ongoing
efficiency of information flow.
From an operational
perspective, project managers operate at the main decision
making level and this line of authority depends on the PM’s role
within the organisation. This also determines legal
implications and resultant risks which are shared between the
various stake holders and the PM. A PM may be engaged under a
variety of different contractual arrangements, some of which are
detailed below:
A. The
PM as VENDOR with performance responsibility for time, cost, and
quality may have complete authority over the project and act
independently, only communicating with stake holders when
necessary.
B. The
PM as self-employed CONTRACTOR who is responsible for all
project aspects.
C. The
PM as MANAGER or FACILITATOR when a company employee who is
responsible for cost, time and quality and will also need to
keep all stake holders informed when taking action. In most
instances this reporting link is accomplished through the
project’s minutes of meetings.
D. The
PM as AGENT who may have equal or greater responsibility then
the client however would usually only take limited action prior
consultation with the stake holders or company manager’s.
E. The
PM as ADVISER, has no direct responsibility for time, cost, or
quality matters however, he/she would act by providing reliable
information so decisions could be made as the duty of care (in
tort) still applies, i.e., the PM can not wilfully recommend a
cause of action and then “walk away” from it when the advice is
deficient. The PM is still accountable.
The project manager may
be leader of the project team which includes professional
employees at peer level as well as other executives or
professionals above and below the project managers position. To
facilitate team member’s interaction the PM`s main role is that
of optimising communication, co-ordination and control within
and without the project team.
Dias (1990:471), in a
paper referring to project teams consisting of a large number of
professionals stated that project leadership was exercised
mostly by a PM who was on a peer level with many of the
co-workers but hierarchically below that of other's. This
combination of levels resulted in evolution of a quite
distinctive organisational structure which reflects a high
degree of informal interaction within the team as well as
assigning the pivotal role to the PM.
The communication
process is typically influenced by one of three common
organisational structures: Functional, Projectized or Matrix
style. In reality however it is not common to find one of these
structures operational in its purest form. As there is no
particular optimal organisational structure for project
management as the best solution will depend upon the particular
project environment. However specific project management
structures are usually developed each time a new project is
initiated and since most projects are merely temporary
objective-based structures they exist for the project duration.
When an organisation is
project-oriented, a shift from the traditional functional
structure, to a multi‑dimensional arrangement may be required
and the matrix structure is often utilised to improve project
control and performance through its use of both lateral and
horizontal communication links between the project team and
other corporate entities and other external entities such as
vendors or suppliers.
Measuring Success
The success of a project
may be measured by an analysis of whether its objectives, as
stated in the project brief, have been realised. A “successful”
project is one in which the stockholder’s expectations of cost,
time, quality and future viability have all been met.
One way of measuring
project success is to apply some of the quality management
principles, e.g., Quality is achieved or measured, by the
degree to which it meets the customer requirements. A
successful project is one which meets the Owner's / Sponsor's
requirements in the areas of commercial, technical, operability
and maintainability, cost, schedule, and perception.
Project Inception
Introducing a Project
When initiating a
project it is recommended that the customer be actively involved
in the process of clearly defining the project requirements as
the first step in the project planning process. Customers
generally prefer to become more involved at the project’s
inception than during the actual execution of the project
itself. Moreover, it is the project manager’s responsibility to
ensure that the customer is consulted, and contributes to
establishing of product specifications, process specifications
and specification of the control system. The type and flow of
this information should be specified at an early stage,
including its format and the manner of its dissemination.
The PM needs also to be
mindful that a project can not be successfully commenced unless
the wishes and objectives of the stake holders and end-user's
have been sought and agreed upon in the project brief. This
first step assures a high probability of success since decisions
such as project function, cost, schedule and quality criteria
must be made at the project inception stage. Good pre-planning
enhances the chances of project success and assist in keeping
management committed to the program. Large project management
programs may consist of a continuous series of sub-projects with
each sub-project going through the same phases of selection,
specification, execution, review and acceptance/termination.
During the process of developing the project brief, where
quality management skills may be lacking, a professional Quality
Assistant or Consultant may be required to work with the PM on
the technical aspects of Quality Management.
The techniques of Work
Breakdown Structures (WBS), Network / Gantt Charts, Cost Centre
Planning, Resource Levelling, Risk Planning and Decision Tables
can all be applied to the project development process. The PM
forms the team with people from diverse backgrounds and with a
variety of skills to create an effective project team to execute
the project.
Continuous project
reviews are particularly important since the results of each
phase of the project and/or sub-projects should aid the next
phase or project. A managerial review normally looks at
elements such as work strategies, policies, plans, procedures
and the overall mission as it is related to the project work of
the organisation. Termination of a project as it achieves final
completion needs tight control to avoid the possibility of
end-of-project schedule overruns. Managerial review of work
routines until the actual final conclusion of work activities is
vital. Equally important is the need for the PM to see that
work continuity for project team members is maintained through
follow up projects, where practicable. Motivational techniques
may need to be applied at this stage to ensure successful
completion of the project as team members may be reluctant to
“let-go”.
Balancing Quality And
Productivity
The term "quality" is
frequently related to comparative and agreed upon standards and
benchmarks, and it can be defined as the quality of purpose or
the quality of consistency as is obtained in a continuous
production process. This is in contrast to absolute quality
standards which often relate to only one specific product and as
such may not necessarily be reproducible. The many variables,
in the project process need continuous management almost to the
point of excellence when attempting to balance productivity and
quality. This can be shown diagrammatically, as below:
Fig: 18 - Using PM Techniques to Balance &
Optimise
Project Management is an
implementation process applied to complex projects with the aim
of satisfying of owner's, client's and stake holder's
expectations for the project. One can correctly conclude that
the PM is central to a project-oriented organisation as to not
only influences internal project processes, where process
productivity and quality needs are balanced but the PM does this
by the use of project management techniques in the
organisational context. Through this centralist position the PM
influences the overall productivity and quality performance by
maximising project accountability, viz., “Communication”,
and proficiency, viz., “Good Technical Management”.
Finally, the project
manager influences the organisation’s external environment
through delivery of a project his/her customer which meets all
of the environmental and community objectives.
The communication model illustrates some of the roles which the
PM must adopt, e.g., as Facilitator; Agent; Adviser; or Vendor;
and through the project team where there is need for a formal
and informal communication path between suppliers and vendors
and, the end-users of the information.
Fig: 19 - Communication Model
The
technical management model shows how the PM selects and matches
the range of techniques and technologies and then develops them
into a total package according to the needs and requirements of
the particular project.
Fig: 20 - Technical Management Model
Environmental Change
Through Application of TQM
Introduction of the
Total Quality Philosophy into a formal or traditional
environment of a corporate or project organisation will be
influenced or impacted by the organisation’s Functional
activities, its structure, and its general operating procedures,
as below:
Fig: 21 - TQCF Relationship
Application of the TQCF
relationship will by necessity, establish quite different
characteristics which would depend upon the type of industry
sector where the PM was carrying out his/her project.
The way members of a
functional unit think and act is related to their inter personal
motivation and how they themselves perceive their environmental
structure. The merging of such elements as Project Management
and Total Quality Management similarly requires a sharing of
cultural elements if this joining or synthesis is to be
successful.
Cultural barriers
present in all organisations and can obstruct introduction of
major change or innovation, such as in the case of a Quality
Management System. Therefore it is vital to understand not only
the reasons but also the origins of such barriers so they may be
overcome through application of specifically developed
stratagems. If these cultural barriers can be removed the
effect of change upon the whole organisation’s structure may be
not too dramatic or upsetting and reduction of these barriers
are to change are themselves an element of the whole Quality
Culture.
Projects share temporary
sub-goals which lead to achievement of a single objective or a
series of objectives, so to facilitate this the project
environment may need to be formally distinguished from an
organisation’s environment. Organisational management faces
relatively little influences from external sources however
Project Management and Total Quality Management work equally
with employees, contractors, suppliers, and vendors, both
internal and external, all of which tends to lead to development
of whole, new unique set of characteristics, sensitivities and
priorities which are suitable for the project.
As various groups are
involved in projects the need will arise for each group to
comprehend and perhaps to compromise with the other’s values,
attitudes and procedures if the project is to be successful,
i.e., the individual group values and objectives are limited for
the good of the overall project values and goods which are
superior in this case. Indeed many project groups evolve their
own unique procedures and processes which then become their
group's work culture and which may, ultimately influence their
host or parent’s corporate culture.
The introduction of a
Quality Management System (QMS) into an organisation should
yield productivity improvements whereby profitability improves
as a result of improved quality of service, improved customer
to client relationships, and improved communication, all of
which also result in reduced cost and waste. Corporate
profitability is directly related to the production cost of the
product or service as well as the markets willingness to pay for
such goods/services.
Prices and production
budgets are generally determined by supply and demand and the
established market position of the organisation and processing
costs may be reduced through improved productivity as a result
of an effective QMS. This in turn should lift profits for the
organisation, improve staff moral and customer relations.
Some of these savings
may then be re-invested into process improvement which should
continue the improvement of quality and productivity even
further. However a full and sustained managerial commitment is
required if the introduction of a Quality Management System is
to be successful and, in the absence of this support and
commitment, the gains would more then likely be only of a
short-term nature.
Quality Procedures
Project structures are
commonly of the matrix type which function within the more rigid
functional structure of the parent organisation and this
functional structure performs within a framework which is
structured on the adherence to corporate policies. The matrix
structure tends to provide the PM with a project execution
framework and plan for use when interfacing with the present or
host corporate functional procedures.
Organisations tend to
accumulate a large number of base procedures and when a project
is to be set up these procedures, from their respective
organisational units, can be utilised as applicable. It must
also be kept in mind that there will be certain base Policies
and Procedures that will apply to all projects such as funding
applications, financial accounting processes and accounting
procedures etc.
Fig: 22 - Project Quality Matrix
Most project
organisations have a three tier QMS consisting of the
specification system (Standards AS / ISO9000 etc); the
organisational and departmental controls (Policies and
Procedures); and the customer system (Specifications and Agreed
Quality Plans).
Most modern
organisations are outward looking and tend to document their
procedures in a manner which serves their customer’s needs and
which delineates how the actual work or process of work is to be
executed. Good project and quality management emphasises the
need for planning, optimising and balancing the project plan
and, will give attention to the management of change; the
measurement of performance (against the project plan); and the
division of responsibilities within the organisation.
Project management is
based on a hierarchy of established plans for delivery of the
project on time and within budget. Quality Assurance provides
an additional element through use of the review processes and
internal and external audits. The Quality Philosophy needs to
be imbedded within the everyday processes of the organisation
and, at the stage that the whole project team actively embraces
the TQM concept, then the independent quality assistant is no
longer required. The TQM promotion role is then undertaken by
the project manager. Proof of conformance to plans and
procedures is verified by the process of organisational
audits which demonstrate an ongoing compliance to quality
standards, which demonstrates compliance to ensuring continuing
quality supply and delivery.
Since commitment to TQPM
is the responsibility of all staff in an organisation the
organisational and project audits should be performed by all the
staff members, wherever practicable.
The need for quality
management training becomes a high priority and this may consist
of:
1. Hands on Training: Where the staff
members develop familiarity with the quality system, its
procedures, processes and the tools which will be used in the
organisation;
2. Rotational Audits: Staff
auditors need to be trained to understand the quality system and
processes. It is expected that these would then take this
knowledge in to their respective work areas to continue
fostering of the whole process philosophy;
3. Management Review: The
effectiveness of the managerial system for quality management
must be subjected to ongoing review till finalisation of the
project; and
4. Continuous Reporting:
Regular meetings should be held with selected team members and
senior management to enable reporting of quality performance
against project quality targets.
The New Management
Role
Total Quality Management
(TQM) forms part of today's competitive business and project
environment. It enables an organisation to obtain a
“competitive edge” by achieving its functional objectives such
as time, cost and quality in such a manner that the
organisations inward focus on quality awareness lifts overall
performance of the particular project division.
Total Quality Management
relates to how well a company can motivate its people to perform
the tasks of planning, organising, controlling and delegating so
as to produce goods and services of the highest quality, at the
right time and at the most competitive price. The role of
senior management is in support in the organisation, its staff
and consultants in their effort to customers and end-users.
In the Total Quality
Project environment the project’s organisational structure must
reinforce the real need for satisfying of Customer/End-User
expectations. The customer is ‘King’ and the project’s
organisational structure merely represents the optimal
arrangement for how the ‘Kings wishes’ are to be met.
Fig: 23 -
New Organisation Structure
Many successful
companies now place the customer or end-user at the top of an
inverted pyramid so as to emphasise the managerial role of
support and facilitation of the project team who, in turn will
satisfy the customer / end-user.
The " Project Team"
Function
The cornerstone of TQM is the provision of
service across these customer-supplier (i.e.. project team)
interfaces. In a project, there is a web of such interfaces in
series and parallel and these interfaces must be clearly
detailed and understood in a systematic manner so that optimal
performance, or satisfaction is achieved.
Fig: 24 - Combined Supplier - Customer
Feedback
A Project Team should
include representatives from all three groups, above, to ensure
maximum feedback is achieved. That also ensures that procedures,
technical instructions and specifications are interchangeable
between all parties included in a particular project. By
embracing the Total Quality Project Management Culture, an
organisation brings a high level of systems development to all
projects that it undertakes. This is in direct contrast to the
ad-hoc form of project management which is commonly utilised
whereby systems documentation is only developed to the limit
where it wins the job, where it streamlines the payment system,
or where it is used to solve problems. The ad-hoc approach by
its very nature is responsible for a significant amount of
under-performance and waste of highly skilled and experienced
human resources.
Elements of Project Management (PM)
a) A project is any series of activities
that have a definite beginning or start point, and an end point.
b) Each project is made up of a series
of separate work activities.
c) Each activity usually consumes money,
and time and contributes to the total project performance.
d) The Project Management approach is
used to maximise work productivity and customer satisfaction by
optimisation of time, cost and quality elements.
e) The Project Manager must be able to
utilise a variety of managerial techniques.
f) The Project Manager need to have a
clear perception of what may be shifting objectives during the
duration of the project.
g) The Project Manager must have clear
managerial and budget authority and accountability.
h) Each Project Team Member needs to act
as a Project Manager for their own project activities and they
must ensure that these activities smoothly interact with all
others.
Elements of Total
Quality Management (TQM)
a) Productivity increases through
improved quality since increased product/service quality
decreases costs and the need for extra work, or rework to remedy
errors.
b) TQM is based on the participation of
all employees, regardless of function or position.
c) TQM attempts to interactively
maximise Productivity, Quality and Customer Satisfaction.
d) The TQM process involves Suppliers,
the Producers and Customer; it views the project as a global
system with the emphasis on project function, (also see notes on
TQCF relationship, page 87).
e) TQM is based on the principal that
every member in the feedback model of supplier, producer and
customer has their own customers to satisfy and, that it is
better for all if the unit parts of all the projects are
executed to a realistic and appropriate quality standard of
performance.
f) Each project team member is a
project manager with specific accountabilities for cost centre
management for their activities within the project.
Good quality management
requires a personal, organisational and national perspective
that is predicated upon the notion that ultimately quality is
cheaper to implement during the project than it is to correct
non-quality; customers are the most important element and a
systematic approach to the satisfying of their wishes is
essential within the project organisation.
The Cost Of Quality
Poor quality and waste
during a project means reduced productivity, higher material
costs, higher overheads, poor reporting and team performance.
It also means loss due to project delay, extra storage and
transport costs, loss of capacity and reduced goodwill between
the respective parties. The objective behind quality management
should be to reduce any unevenness or variation in performance
by the use of Integrated Management Techniques. In broad
terms, the “cost of quality” is the sum of the cost of
additional process and / or product checking and inspection
together with the cost of all preventative processes plus the
aggregate cost of all waste and / or value of reduced
productivity in the project.
The cost of quality
model below, based on Blakemore (1989:23) clearly illustrates
the interrelationship of all elements that can impact on the
project as a result of poor quality.
Fig: 25 - Quality Cost Model
Experience has shown
that for some projects 40% of the total project cost can be
attributed to waste or loss of productivity. Such unacceptable
variation in costs can, in a short time, be reduced by adopting
a Quality Management or Zero Defect Philosophy whereby the aim
is to “do it right 1st time; all times”. The total cost of
product failure ‘X’ is the summary of a+b+c which can be
minimised through improved preventative measures.
Organisational
Structures
Management takes place
within the framework of the project and the project team must
adhere to the managerial processes inherent within the structure
chosen. The PM's task is to achieve results through the efforts
of others by providing the right project organisation for each
particular project.
Organisational
structures may be classified as formal or planned, and informal
or unplanned. Senior management would normally establish a
series of organisational structures, and each of these would be
structured with a particular purpose, or end-result, in mind
viz., the planned or formal authority structures are set up with
the aim of managing and organising the execution of work.
The functional
structures are developed to maintain order and balance between
the distinct corporate divisions and, the hierarchical or status
structures are established to empower and motivate employees.
The informal or
free-form structure often develops as a result of like-minded
individuals or interest groups coming together, as occurs in
the wider external community context, to socialise and to
interact.
If the interaction
between the formal and informal groups is not balanced
appropriately then conflict and disorganisation can occur, i.e.,
the harmony within the workplace will be adversely effected.
The three planned
structures can be described as:
A) The authority structure
controls the managerial functions of organising, directing,
controlling, co-ordinating and planning;
B) The functional structure is
concerned with maintaining order, establishing procedures and
allows the free-floe of communication between different levels
within the organisation; and
C) The status and motivational
structure provides rewards and incentives for personnel.
The unplanned or
informal structures, on the other hand, result from the
spontaneous interaction of people, and deal with human relations
such as friendship, loyalty and special interest groups.
Organisational
Hierarchy
1. Functional Organisation
The functional hierarchy
is commonly split up into a combination of work function arrays
or, may be split up into, say, product groups as would occur in
the case of a manufacturing organisation.
Fig: 26 - Functional Structure
For the case of project
management groups, these may be aligned from the Engineering
Division in the functional hierarchy, but need to interface
across several of the discrete product divisions and this would
then become a matrix form of organisation where communication,
control and interaction occurs across all of the company’s
divisions.
2. The Project
Organisation
Specific PM structures
may be developed each time a new project is initiated.
Projects are generally of a temporary nature and the project
structure only remains in place for the life of the project.
There is no singularly optimal organisational structure for
project management, as the best solution depends on the
particular environment where the project must be undertaken.
Usually all resources in the project organisation are dedicated
to that specific project and are taken away from their
traditional functional structure.
Fig: 27 - Project Structure
3. MATRIX ORGANISATION
The traditional
functional structure is often replaced by a multidimensional
structure to optimise the strength of both the functional and
the project environments. Called the matrix structure, it can
improve project control and team performance through the use of
better lateral or horizontal communication.
Fig: 28 - Matrix Structure
Both projects share
common resources for the organisation and each PM has a
functional co-ordinating role but has to co-operate with the
departmental line managers for line specific supervisory
activities. In a project environment the organisational
structure can change depending on the size and status of the
project. At the launch of a project a functional project
authority structure might appear to predominate however this may
revert to a matrix structure during the course of the project
life cycle. If project groups are to be established in
isolation then the “Informal Structure” which is based on the
special interest nature of the project becomes firmly
established.
Type Of Project
Managers
“A Project Manager
is the Project Champion”. A
typical project manager does not exist and no single type of PM
contract can cover all types of projects. Large projects may
require the services a Project Director, with
responsibility for all Corporate and Project aspects, whereas
medium size projects need a project manager to be responsible
for the overall project. Smaller projects or sub-projects may
require a project co-ordinator, to be responsible for a specific
project process or for a series of linked project activities.
In each case the formal
lines of authority will depend upon the requisite organisational
structure and this must be clearly understood by all project
team members.
Barnett (1991) explains
that the legal implications and risks associated with the
various types of PM contracts depend on the managerial and
contractual links between the project, the PM and the client.
In all cases however the PM is responsible for facilitating and
overseeing of the Quality Management and Audit Process as
indicated below.
1. Consultant Project Manager -
Advisor:
If the PM is contracted
to acts as an advisor to the client he/she would not have
contractual responsibility for cost or time or performance, and
would not have any line management functions either. However
the PM would have to provide accurate and timely information to
management so they could act effectively in their decision
making. The position may also require the Advisor to have
Public Liability Insurance and remuneration is usually based on
a percentage fee; fixed fee; or hourly rate basis.
Fig: 29 - PM as Advisor
2. Executive Project Manager -
Agent:
In this case the PM has
no contractual responsibility for cost or time but has
accountability and managerial responsibility for consultants as
well as for development of the construction and project teams.
All contracts are let by the client and remuneration would be
based on a percentage fee; a fixed fee; or may be on an agreed
hourly rate.
Fig: 30 - PM as Agent
3. Commercial Project Manager -
Managing Contractor:
The PM as Managing
Contractor is responsible for the Head Contractor as well as for
all design, cost, and engineering consultants and has
contractual responsibility for cost, time and quality. With a
savings clause the PM retains a percentage of any cost savings
or reduction as a special form of remuneration he/she has a
commercial interest in the project’s success and can not be
considered independent. Remuneration is be based on a
percentage fee; target sum; or guaranteed maximum sum, with a
savings clause in his/her control of engagement.
Fig: 31 - PM as Managing Contractor
4. Entrepreneur Project Manager -
Vendor:
The PM as an independent
vendor (or developer) has full contractual responsibility for
time, cost and quality. The PM appoints and directs all
contractors and consultants, provides administration,
construction services and pays the accounts. The PM has
contractual links with the client but can not be considered
independent of the project. Remuneration would normally be
based on a lump sum contract basis which covered all design and
construction aspects
.Fig: 32 -PM as Vendor
5. Employee Project Manager:
The employee PM is
employed by the company and carries out nominated project
management activities and represents the company at all times.
This is a master servant relationship with duties and roles
dependent on the contract between client and company/project
team. As long as the PM acts according to described authority
levels final responsibility and liability remains largely with
the employer.
However, Barnett
(1991:62), states that liability for work and products always
remains with the PM as the responsible person in charge of the
project.
The “Code of
Ethics for Project Managers” from the US Project Management
Institute, states:
“Project Managers, in the
pursuit of their profession, affect the quality of life for all
people in our society. Therefore, it is vital that project
managers conduct their work in an ethical manner to aim and
maintain the confidence of team members, colleagues, employees,
employers, clients and the public.”
It is apparent from here
from both Barnett and the P.M.I. that because a PM is an
employee they still retain a real and an ethical accountability
for all of their actions.
Project Management
Contracts
Many organisations and
governments today are demanding real value for their money
particularly in the project situation where it is a managerial
requirement that the form of project management structures and
contracts be carefully chosen. Special factors such as
assessment of risk; design uncertainties; contingencies; and the
degree of client involvement in a complex project must be taken
into account before the project delivery system is finalised.
Risks are commonly
apportioned between the client and all contractors through the
use of contracts. Contracts need to clearly identify
relationships between the management of quality, cost
containment, project time, client input, design, decision
flexibility; and must also clearly delineate ultimate
responsibility and accountability of the contractors and the
primary stakeholder. The contractors method of approach for the
project need to be aligned carefully and clearly with the
client’s project objectives.
To minimise client risk,
an independent Project Advisor or (Consultant Project Manager)
should be appointed as early as possible, so as to ensure
achievement of all project goals with through operation of the
most optimal project delivery system.
Barnett (1991) refers to four different
categories of project management contracts:
A) The Traditional Approach
which involves:
1. The client selecting a designer,
by tender or selection;
2. The designer producing plans,
specifications and estimates;
3. The inviting of tenders for
construction;
4. The signing of a contract between
client and contractor with the designer as client
representative and administrator.
The advantages of this
approach is that minimal time involvement is required for the
client; there is a well established case law which supports the
parties; financial control is maintained, and the client
benefits through the competitive tendering process.
The disadvantages
are that it gives rise to disputes over any escalation or
prolongation claims, and the client is at risk as the
designer/agent has a conflict of interest, and the development
time for the project is usually longer.
B) The Design
& Construct, Fixed Fee Or Fee Plus Approach (which may
include bonus sharing) involves:
1. The design task is assigned to the
contractor to improve accountability for outcome and
performance;
2. The client wishes that the project be
delivered as a complete package.
3. Once the contract is let the
contractor assumes control and accountability.
The advantages of this
approach are that risk and design finalisation are assigned to
the contractor. The design is usually more workable through the
contractor’s involvement. The contractor accepts responsibility
for design, construction and all interfaces and the development
time is usually reduced as the desired result of this design and
construction overlap.
The disadvantages are that the contractor
may not be affective in controlling the design process; the
quality of documentation may be less then is required and the
client’s control is dependant on the contractual nature of the
project brief. Disputes may arise if the project brief has
insufficient detail and the contract quality and performance are
usually dependent upon the level of support/detail in the brief.
C) The Construct Management
Approach , which may include construction and/or
development.
The client engages a construction
manager (CM) to act as his agent usually on a fee plus basis.
The CM co-ordinates and plans the works but is not responsible
for the cost budget, or other project brief development aspects.
The advantages are that
it requires a strong client participation. Similarly,
negotiations may occur directly between the sub-contractor, and
contractor, and the client without the need for communication
through a lead contractor first. The CM becomes part of the
management group which eliminates the attitude of “them and us”
to arise.
The disadvantages are
that the client carries nearly all the risk without necessarily
having the expertise, therefore it is critical that the CM is
highly experienced and qualified. The cost and time aspects of
the project are not guaranteed and little incentive exists for
the construction manager to limit project time or cost other
then executive management influence and control.
D) The Fixed Lump Sum Design &
Construct or Novation Approach
In this approach the client,
through an agent, controls concept and design and specification
with the active involvement of the project contractors. Detail
design and construction are based on a fixed price arrangement
and all work is done by the contractor using the original
conceptual design team. The difference is that the contractor
accepts the novation (or handover) of responsibility for final
design as well as traditional construction tasks.
The advantages
are that risk is assigned to the contractor and the client
retains control over conceptual design and tendering. Claims
against the client are minimised and any cost overruns are
minimised provided that the specification has not been changed.
The disadvantages are
that the Standard Contract Conditions need to be suitably
amended to ensure effective novation of accountability and to
reduce likelihood of design change or the need for late addition
to the work scope of project.
LEADERSHIP
Managing is a process of
improving the status quo through the interactive co-ordination
of free and semi-independent variables and managers commonly
operate in five different directions. These are the management
of subordinates (downwards), co-ordination management of
colleagues (sideways), managing senior management (upwards),
managing the environmental (outwards) and the management of
one's self (inwards).
Project management
includes the definition of project parameters; the management of
change to achieve goals and objectives; and the documentation of
the project process to comply with the Project Management
Quality System. Project Managers also manage in the five
traditional directions, as above to emphasise the management of
change, the management of tasks with a definite beginning and
end, and the splitting up and delegating of all the operational
activities such as planning, leading, organising, motivating and
controlling. Project management has been described as being a
managerial process, applied from inception to completion, of a
series of dynamic and complex projects all of which are
occurring within a multidiscipline team environment.
Management vis-à-vis
Leadership
A successful group is
often distinguished from an unsuccessful group by its
leadership. A leader need not be a good manager, although
he/she may be acting in the capacity of a manager by making the
decisions which determine the outcome of various processes. On
the other hand, a manager is not necessarily a good leader but
has his power from the authority of his office whereby the
leader’s power is by those he/she leads. The differences lie
mostly in the way both obtain their authority.
The Manager gains
authority both from the organisation and from his position
within that organisation. He/she employs this authority to
achieve prescribed objectives through his subordinates and if
the subordinates feel they can not obey him then they can leave
the organisation or, as a short term solution, disobey him and
accept the consequences. The manager has been given the ‘right
to influence’ his subordinates by the organisation, and manages
irrespective of group acceptance; he/she does this by use of
such sanctions as pay, promotions, work on projects, etc..
Leaders gain their
position from followers, however if the relationship between a
leader and his team sours, this power can be revoked at any
time. Because this influencing power can be given to the leader
freely by the group it is a very “effective power”. A single
member of the group can not go against the leader without prior
consensus of the rest of the group. If the group decides not to
follow the leader then he/she will no longer have the authority
(or influence) of a leader. The leader, like the manager, also
hands out sanctions however these are primarily group based and
relate more to social or task rewards.
Leadership Styles
Lewin and Lippitt (1938)
distinguished three types of Leadership Style. The purpose of
their style was to investigate what effect the different styles
would have on group member's behaviour.
1. The autocratic leader makes
all decisions that relate to the group and is the major source
of influence in the group's activities. Because of this control
over the group and its resources, group members are dependent on
the leader. The leader controls the future mostly by giving one
step at the time instructions, by giving information through
orders but not by sharing knowledge, through making tasks
non-team assignments, by reduced member satisfaction when
allowing no initiative or judgement to be used, and a special
relationships as each member is dependent on the leader for
instructions and training. The most effective technique in
maintaining leadership is by withholding information.
2. The democratic leader
shares his/her influence with the group. Decisions are made by
the leader only after full discussion and participation by
members. The leader gains additional information from group
members, as well as a greater commitment to the decisions made.
3. The laissez-faire leader is
a figurehead, exerts no real influence and usually makes no
contribution to attain goals. Individual members of the group
must assume the leadership function in their own daily
activities.
There is not
one ‘perfect leadership style’ which can be applied to all
situations, and plain common sense tells us that democratic
leadership under ‘battlefield conditions’ is not very
effective. Nor is it advisable to let prison inmates take part
in discussions on matters relating to security and
administration in the penal setting. The conclusions that may
be drawn from the study of different work groups and leadership
models is that people generally strive to achieve a sense of
dignity and personal self worth and work needs to be supervised
and structured in such manner that peoples needs and aspirations
are realised. The final judgement upon a given leadership style
is frequently, "If It Works Well, It Is OK".
Project Management
Processes
Large projects should be
broken down into a series of smaller projects or a sequence of
smaller activities to simplify the process of management. The
PM is accountable for project success in terms of time, cost and
technical performance (quality). He/she needs to provide
management (leadership) to unite people and groups from other
departments and companies into a manageable organisation so as
to ensure completion on time, within cost and to the desired
quality standards.
All organisations need
to establish operating procedures in the form of a strategic
policy or values statement to foster understanding and
knowledge, throughout the organisation, the larger strategic
objectives for a particular project, its work breakdown
structures, its hierarchy of plans and schedules, the method for
performance analysis, and its control and information systems.
The PM must launch his/her project and control it throughout the
life cycle and must take certain steps to ensure achievement of
an ultimate successful outcome. The PM needs to establish
realistic project objectives, establish an effective project
organisation, identify all key milestones, plan his/her project,
assign all tasks, estimate times and costs, schedule works,
distribute plans and control the project. Emphasis needs to be
placed on the integration of the various project sub-systems
into the main project.
Work Breakdown
Structure (WBS)
The WBS is the basis for
planning and control of large projects, and is a formalised
systematic method of defining and identifying the individual
parts of a project. The work to be planned is broken into
manageable elements which are then structured and integrated
into the project plan and control and information systems. This
systematic approach to the organising, planning and control is
essential for efficient management of larger projects.
Activities in a project plan should be of such a size that work
accountabilities, resource requirements and all related
interrelationships are clearly shown. The WBS is a formal
structure which is mostly industry dependent and is used to
break down the project into logical and systematic elements to
improve managerial control by assigning accountability and
responsibility for task completion to internal or external
functional groups alike. It allows the design and integration
at the control and information system with the work being done,
cost centres and financial accountability are clearly
illustrated and meaningful deliverables are determined.
Hierarchical Planning
The use of hierarchical
planning, in conjunction with WBS, facilitates the setting of
milestones and the segregation of projects into discrete phases,
activities, tasks, cost centres and individual structural
elements as below:
