Dereje B. Tessema, PhD, PMP, PMI-ACP, CSM, CSP, CEA President & CEO, Maryland Global University and Florida Institute of Finance College

Transcription

1 Dereje B. Tessema, PhD, PMP, PMI-ACP, CSM, CSP, CEA President & CEO, Maryland Global University and Florida Institute of Finance College

2 Introduction Why do construction projects fail? How to Minimize Project Failure Leadership in construction project management Policy, governance, and training ii

3 Globally, both in public and private sectors, a large number of construction projects and programs fail to be completed on time, within budget, and with good quality. The 2016 State of Project Management annual survey of 686 professionals from 317 organizations in UK and Europe revealed that 32% of their projects are never completed on time, 31% never delivered full benefits, 31% never completed on budget, and 46% never have a track record of success. A 2016 Project Management Institute (PMI) global survey of 2,428 project management practitioners, 192 senior executives and 292 PMO directors responded that US $122 million is wasted for every US $1 billion invested on projects and programs. 3

4 Megaproject, 3.5 mile tunnels, bridge, and greenway The most expensive highway project in the US known for cost overruns, schedule delays, leaks, design flaws, poor execution and use of substandard materials Scheduled to be completed in 1998 at an estimated cost of $2.8 billion and was completed in December 2007, at a cost of over $14.6 billion Several quality, procurement, and design issues Used as a case study for project management graduate students 4

5 BEFORE AFTER 5

6 The most advanced baggage handling system in the world failed due to: Lack of planning, excessive schedule pressure, poor stakeholder management, lack of management oversight, and communication breakdown. Forced the newly completed airport to sit idle for 16 months The delay added $560M USD to the project 6

7 Lack of: Leadership and governance Stakeholder engagement Requirements gathering Planning and estimation Integrated risk management Quality, configuration and information management Performance tracking and measurement. The majority of these causes are not related to the technical skills of engineers, architects, and construction professionals, but rather to lack of proper project and program management methodologies, practices and principles, and overall lack of integration 7

8 Governance Standards Policies & Procedures are guidelines Training 8

9 The set of policies, regulations, functions, processes, procedures and responsibilities that define the establishment, management, and control of projects, programs, and portfolio (ASP, 2017). The management framework within which project decisions are made. Can be established based on three core areas Structure: The governance committee structure, roles and responsibilities People: Selection of the right people to execute the process Information: Resources that help make informed decisions 9

10 Establishes defined roles, responsibilities, and performance criteria Ensures recording and communicating decisions made at approval gates Ensures use of disciplined life cycle that includes checks and balances Ensures that stakeholders are engaged from the inception to completion of the project Helps project, program, and portfolio managers function effectively Gives organizations the required internal controls, while externally, it reassures stakeholders that the money being spent is justified Optimizes investment, avoids common reasons for failure, and motivates staff through better communication Gives organizations a structured approach to the planning, execution, control, and monitoring of projects, programs, and portfolios 10

11 A document, established by consensus and approved by a recognized body, which provides for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context (PMI, 2017) PMBOK Guide Sixth Edition Project Management Body of Knowledge The Standard for Program Management Fourth Edition The Standard for Portfolio Management Fourth Edition The Standard for Organizational Project Management (OPM) The Standard for Business Analysis ISO/TC 258 Technical Committee ISO 21500:2012 Guidance on project management ISO 10006:2003 Quality management systems. Guidelines for quality ISO 31000:2009 Risk Management Principles and Guidelines v

12 Define the processes and methods followed by any project team to manage projects. Ensures that all projects have a similar administrative structure and organizes project documentation and deliverables in such a way that it can be easily found and managed National Construction Management Qualification Framework Program Management Improvement and Accountability Act of 2015 (PMIAA) Office of Management and Budget (OMB) viii

13 Project managers are required to fulfill an increasingly expanding and important role as projects become more and more complex Project Management requires interdisciplinary skills and many of these skills are acquired through formal training Science Hard skills for computational tasks to estimate cost, schedule, quality, risk Art Soft skills interpersonal quality, emotional intelligence, communication, and negotiation Policy enforcing policies at the project, local, state, and national levels to ensure compliance to standards Legal and Contract Information Technology 13

14 Project Management Institute (PMI) Founded in 1969 by five individuals as a way to share their project management experience World's leading not-for-profit professional membership association for the project, program, and portfolio management profession. The fastest growing certifications in the industry Delivers value for more than 2.9 million professionals working in nearly every country in the world through global advocacy, collaboration, education, and research. As of April 2016: 650,971 PMPs worldwide, 51% of the PMPs are outside the US Several certifications PMP, PMI-ACP, CAPM, PgMP, PfMP, PMI-BPA, PMI-RMP, PMI-SP Maryland Global University is a PMI Registered Global Education Provider vi

15 The American Academy of Project Management (AAPM ) is a worldwide Board of Standards and financial professional organization, offering exclusive Certifications and Designations, Charters, and Masters Certification to candidates who meet the high standards of the International Board of Standards (IBS). Some of the courses related to construction project management are: Master Project Manager ( MPM ) Certified International Project Manager (CIPM ) Certified Planning Engineer (CPE) Certified Project Risk Manager (CPRM) Certified Construction Project Consultant (CCPC ) Certified Project Portfolio Manager (CPPM ) Maryland Global University is an AAPM Global Partner 15

16 Construction Management Association of America (CMAA) CMAA was formed in 1982 as a way to establish a set of standards for managing capital construction projects. One of CMAA's goals is to help the CM profession further develop its own unique identity within the Architecture/Engineering/Construction industry. Certified Construction Manager (CCM) Maryland Global University is a Member of the CMAA vi

17 Project Management Institute American Academy of Project Management Construction Management Association of America 17

18 Questions? 18