Project Success through Effective Decisions: Case Studies on Project Goal Setting, Success Evaluation and Managerial Decision Making

The objective of the thesis is to structure and model the factors that contribute to and can be used in evaluating project success. The purpose of this thesis is to enhance the understanding of three research topics. The goal setting process, success evaluation and decision-making process are studied in the context of a project, business unitand its business environment. To achieve the objective three research questionsare posed. These are 1) how to set measurable project goals, 2) how to evaluateproject success and 3) how to affect project success with managerial decisions.The main theoretical contribution comes from deriving a synthesis of these research topics which have mostly been discussed apart from each other in prior research. The research strategy of the study has features from at least the constructive, nomothetical, and decision-oriented research approaches. This strategy guides the theoretical and empirical part of the study. Relevant concepts and a framework are composed on the basis of the prior research contributions within the problem area. A literature review is used to derive constructs of factors withinthe framework. They are related to project goal setting, success evaluation, and decision making. On the basis of this, the case study method is applied to complement the framework. The empirical data includes one product development program, three construction projects, as well as one organization development, hardware/software, and marketing project in their contexts. In two of the case studiesthe analytic hierarchy process is used to formulate a hierarchical model that returns a numerical evaluation of the degree of project success. It has its origin in the solution idea which in turn has its foundation in the notion of projectsuccess. The achieved results are condensed in the form of a process model thatintegrates project goal setting, success evaluation and decision making. The process of project goal setting is analysed as a part of an open system that includes a project, the business unit and its competitive environment. Four main constructs of factors are suggested. First, the project characteristics and requirements are clarified. The second and the third construct comprise the components of client/market segment attractiveness and sources of competitive advantage. Together they determine the competitive position of a business unit. Fourth, the relevant goals and the situation of a business unit are clarified to stress their contribution to the project goals. Empirical evidence is gained on the exploitation of increased knowledge and on the reaction to changes in the business environment during a project to ensure project success. The relevance of a successful project to a company or a business unit tends to increase the higher the reference level of project goals is set. However, normal performance or sometimes performance below this normal level is intentionally accepted. Success measures make project success quantifiable. There are result-oriented, process-oriented and resource-oriented success measures. The study also links result measurements to enablers that portray the key processes. The success measures can be classified into success domains determining the areas on which success is assessed. Empiricalevidence is gained on six success domains: strategy, project implementation, product, stakeholder relationships, learning situation and company functions. However, some project goals, like safety, can be assessed using success measures that belong to two success domains. For example a safety index is used for assessing occupational safety during a project, which is related to project implementation. Product safety requirements, in turn, are connected to the product characteristics and thus to the product-related success domain. Strategic success measures can be used to weave the project phases together. Empirical evidence on their static nature is gained. In order-oriented projects the project phases are oftencontractually divided into different suppliers or contractors. A project from the supplier's perspective can represent only a part of the ¿whole project¿ viewed from the client's perspective. Therefore static success measures are mostly used within the contractually agreed project scope and duration. Proof is also acquired on the dynamic use of operational success measures. They help to focus on the key issues during each project phase. Furthermore, it is shown that the original success domains and success measures, their weights and target values can change dynamically. New success measures can replace the old ones to correspond better with the emphasis of the particular project phase. This adjustment concentrates on the key decision milestones. As a conclusion, the study suggests a combination of static and dynamic success measures. Their linkage to an incentive system can make the project management proactive, enable fast feedback and enhancethe motivation of the personnel. It is argued that the sequence of effective decisions is closely linked to the dynamic control of project success. According to the used definition, effective decisions aim at adequate decision quality and decision implementation. The findings support that project managers construct and use a chain of key decision milestones to evaluate and affect success during aproject. These milestones can be seen as a part of the business processes. Different managers prioritise the key decision milestones to a varying degree. Divergent managerial perspectives, power, responsibilities and involvement during a project offer some explanation for this. Finally, the study introduces the use ofHard Gate and Soft Gate decision milestones. The managers may use the former milestones to provide decision support on result measurements and ad hoc critical conditions. In the latter milestones they may make intermediate success evaluation also on the basis of other types of success measures, like process and resource measures.

Managing virtual project teams

The purpose of the Master’s Thesis is to study the best practices to virtual project management from the project manager’ point of view. The best practices are divided according to a five-phase virtual project life cycle model. Each phase include concrete suggestions for actions. Research’s theoretical background is wide because of the broad subject matter. In the theoretical part topics such as virtual working, virtual project management challenges are examined and some concrete actions to tackle these challenges are introduced. Thesis’ approach is constructive, where a known problem is solved piece by piece after creating a pre-understanding of the topic. Existing research work is utilized when creating a model for virtual project team management. The basis of the model comes from various best practices read from literature and from the interviews conducted on experienced virtual project managers in the case organization. As a result the model combines both previous research and the organizations empirical experience. As an output of the thesis a model for virtual project team management is developed, which can be used as a guideline by the virtual project managers in their work. The model includes actions and practices what can be used to overcome the challenges of virtual project management.

Factors of customer project profitability in an engineering industrial enterprise

The purpose of the study is to find factors affecting projects' profitability in project business. The issue is approached from customer profitability and project management point of view. The study has been made for a big Finnish company acting in a global market place. The research method is quantitative. Research hypotheses are based on the literature. The used database is originated from the company's ERP- (enterprise resource planning) and project financial follow-up —system. The findings of the study supported the hypotheses weakly. Obviously profitability fluctuated depending on a customer and a project manager. The reasons could not be justified with the variables used in the research.

Agile CRM System Implementation Project

The application of information technology (IT) in customer relationship management (CRM) is growing rapidly as many companies implement CRM systems to support their numerous customer facing activities. However, failure rates of CRM projects remain notably high as they deliver scant solutions and poor user acceptance. As a consequence, it is justified to study previously researched CRM success factors and apply them to CRM system implementation. The aim of this master’s thesis was to get acquainted with relevant academic theories, frameworks and practices concerning CRM and agile development, and use them to generate a modified CRM project strategy to support the successful execution of the case company’s, Process Vision Oy, CRM implementation project. The empirical CRM system implementation project was conducted simultaneously with writing this thesis. Its theoretical findings could be transferred into practice through active participation in the CRM system development and deployment work. The project’s main goal was to produce and take into use a functioning CRM system. The goal was met, since at the time of printing this thesis the first system release was successfully published to its users at Process Vision’s marketing and sales departments. The key success elements in the CRM project were cyclic, iterative system development, customer oriented approach, user inclusion and flexible project management. Implying agile development practices ensured being able to quickly respond to changes arising during the progress of the CRM project. Throughout modelling of the core sales process formed a strong basis, on which the CRM system’s operational and analytical functionalities were built. End users were included in the initial specification of system requirements and they provided feedback on the system’s usage. To conclude, the chosen theoretical CRM roadmaps and agile development practices proved as beneficial in the successful planning and execution of the agile CRM system implementation project at Process Vision.

Development of a project control procedure

The aim of this study is to develop a suitable project control procedure for a target company that can be used in engineering, procurement, and construction or con-struction management contracts. This procedure contains suitable project control software and a model for the use of the software in practice. This study is divided into two main sections. Theoretical part deals with project management, focusing on cost and time dimensions in projects. Empirical part deals with the development of the project control procedure for the target compa-ny. This development takes place in two parts. In the first part, semi-structured interviews are used to find out the company’s employees’ demands and desires for the project control software which will then be used in the developed procedure. These demands and desires are compared to available software in the market and the most suitable one will be chosen. Interview results show that important factors are cost tracking, integration with other software, English language availability, references, helpdesk, and no need for regular updates. The most suitable one is CMPro5 cost control software. The chosen software is used in a pilot project, where its functions and use are analyzed. Project control procedure which will be used in the future is developed based on these procedures. The five steps in developed procedure include employment of a cost engineer, whose task is to maintain the procedure in the target company.

Project Master Document adaption in order fulfillment process

This thesis discusses adaption of new project management tool at ABB Oy Motors and Generators business unit, Synchronous Machines profit centre. Thesis studies project modeling in general and buries in the Gate Model used at ABB Synchronous Machines. It is essential to understand Gate Model because this new project management tool, called Project Master Document, is created on the base of the existing project model. Thesis also analyzes goals and structure of Project Master Document in order to ease implementation of this new tool. Project Master Document aims to improved customer order fulfillment by clearing order handover interface. Office process, especially responsibilities and target dates, become also clearer after Master Document implementation. The document is built to be frame for whole order fulfillment process including check points for each gate of project model and updated memos from all project meetings. Furthermore, project progress will be clearly stated by status markings and visualized with colors.

The Present State and Future Prospects of a Manpower Pool as Part of Project Business

This research focused on operation of a manpower pool within a service business unit in Company X and aimed to identify how the operation should be improved in order to get most out of it concerning the future prospects of the service business unit. This was done by analyzing the current state of the manpower pool related operations in means of project business, project management and business models. The objective was to deepen the understanding and to highlight possible areas of improvement. The research was conducted as a qualitative single-case study utilizing also an action research method; the research approach was a combination of conceptual, action-oriented and constructive approaches. The primary data was collected with executing a comprehensive literature review and semi-structured theme interviews. The main results described how the manpower pool operates as part of the service business unit in project business by participating in different types of delivery projects; process flows for the project types were mapped. Project management was analyzed especially from the resource management point of view, and an Excel-based skills analysis model was constructed for this purpose. Utilization of operational business models was also studied to define strategic direction for development activities. The results were benchmarked against two competitors in order to specify lessons to be learnt from their use of operational business models.

A systematic literature review on agile project

In the 21st century, agile project management (APM) has emerged as a major evolutionary step in the area of software project management. APM is defined as a conceptual framework, consisting of various methods such as Scrum, quick respond to change, better customer collaboration, minimum coverage of documentation and extreme programming (XP) that facilitates to produce working software in multiple iterations with team work. Because agile project management has become more popular in the software industry in recent years, it constitutes an interesting and comprehensive research topic. This thesis presents a systematic literature review (SLR) of published research articles concerning agile project management. Based on a predefined search strategy, 273 such articles were identified, of which 44 were included in the review. The selected 44 articles were published between years 2005 and 2012. The thesis defines a review process by developing a review protocol and presenting the results of the review. The results are expected to provide researchers, software man

Development of project cash flow forecasting process

Process management refers to improving the key functions of a company. The main functions of the case company - project management, procurement, finance, and human resource - use their own separate systems. The case company is in the process of changing its software. Different functions will use the same system in the future. This software change causes changes in some of the company’s processes. Project cash flow forecasting process is one of the changing processes. Cash flow forecasting ensures the sufficiency of money and prepares for possible changes in the future. This will help to ensure the company’s viability. The purpose of the research is to describe a new project cash flow forecasting process. In addition, the aim is to analyze the impacts of the process change, with regard to the project control department’s workload and resources through the process measurement, and how the impacts take the department’s future operations into account. The research is based on process management. Processes, their descriptions, and the way the process management uses the information, are discussed in the theory part of this research. The theory part is based on literature and articles. Project cash flow and forecasting-related benefits are also discussed. After this, the project cash flow forecasting as-is and to-be processes are described by utilizing information, obtained from the theoretical part, as well as the know-how of the project control department’s personnel. Written descriptions and cross-functional flowcharts are used for descriptions. Process measurement is based on interviews with the personnel – mainly cost controllers and department managers. The process change and the integration of two processes will allow work time for other things, for example, analysis of costs. In addition to the quality of the cash flow information will improve compared to the as-is process. Analyzing the department’s other main processes, department’s roles, and their responsibilities should be checked and redesigned. This way, there will be an opportunity to achieve the best possible efficiency and cost savings.

A Project Portfolio Tool for Forecasting Small Projects Profitability

The case company in this study is a large industrial engineering company whose business is largely based on delivering a wide-range of engineering projects. The aim of this study is to create and develop a fairly simple Excel-based tool for the sales department. The tool’s main function is to estimate and visualize the profitability of various small projects. The study also aims to find out other possible and more long-term solutions for tackling the problem in the future. The study is highly constructive and descriptive as it focuses on the development task and in the creation of a new operating model. The developed tool focuses on estimating the profitability of the small orders of the selected project portfolio currently on the bidding-phase (prospects) and will help the case company in the monthly reporting of sales figures. The tool will analyse the profitability of a certain project by calculating its fixed and variable costs, then further the gross margin and operating profit. The bidding phase of small project is a phase that has not been covered fully by the existing tools within the case company. The project portfolio tool can be taken into use immediately within the case company and it will provide fairly accurate estimate of the profitability figures of the recently sold small projects.

Performance measurement model for projects from a strategic management perspective

This research studied the project performance measurement from the perspective of strategic management. The objective was to find a generic model for project performance measurement that emphasizes strategy and decision making. Research followed the guidelines of a constructive research methodology. As a result, the study suggests a model that measures projects with multiple meters during and after projects. Measurement after the project is suggested to be linked to the strategic performance measures of a company. The measurement should be conducted with centralized project portfolio management e.g. using the project management office in the organization. Metrics, after the project, measure the project’s actual benefit realization. During the project, the metrics are universal and they measure the accomplished objectives relation to costs, schedule and internal resource usage. Outcomes of these measures should be forecasted by using qualitative or stochastic methods. Solid theoretical background for the model was found from the literature that covers the subjects of performance measurement, projects and uncertainty. The study states that the model can be implemented in companies. This statement is supported by empirical evidence from a single case study. The gathering of empiric evidence about the actual usefulness of the model in companies is left to be done by the evaluative research in the future.

Keskeytyneen uusmediatuotannon jatkaminen : kohteena 3D-Kalevala

Opinnäytetyöni aiheena on keskeytyneen uusmediatuotannon jatkaminen. Monimuototyön työosana toteutettiin 7-minuuttinen 3D animaatio, joka kertoo Suomen kansalliseepoksen Kalevalan taruhahmosta Väinämöisestä, muistelemassa menneitä. Projekti käynnistettiin alun perin vuonna 2003, mutta resurssien vähetessä se keskeytyi vuoden 2005 loppupuolella. Keväällä 2006 projekti käynnistettiin uuden projektiryhmän voimin, jossa olin itse mukana vastaten muun muassa tuotannonohjauksesta ja hahmoanimoinneista. Uusi projektiryhmä oli henkilöstöresursseiltaan pieni, joten vastuualueet olivat monipuolisia. Keskeytyneen projektin jatkamisen ja haltuunoton haasteellisuus sai minut kiinnostumaan tutkia aihetta tarkemmin. Tuotannonohjaajana vastasin hyvin pitkälle tuotannon uudesta käynnistämisestä ja projektin saattamisesta vihdoin loppuun. Keskeytyneen projektin haltuunotto oli tilanteena kaikille uusi, mikä heijastui vaikeuksina uudelleen käynnistettyyn tuotantoon. Raportin tarkoituksena ei ole olla projektinhallinnallinen käsikirja, sillä käsittelen vain tämän projektin jatkolle oleellisina pidettyjä asioita. Projekti toivottavasti kuitenkin antaa kuvan huolellisen projektinhallinnan ja onnistuneen tuotannonohjauksen tärkeydestä. Jokainen keskeytynyt projekti ei ole aina välttämättä elvytettävissä - ainakaan alkuperäisessä muodossaan. Projektin jatkamista tulisi katsoa aina tapauskohtaisesti. Keskeytymiseen on useimmiten syynsä, joten ongelmien selvittäminen ja niihin puuttuminen on tärkeää ennen jatkopäätöksen tekemistä. Myös projektityöskentelytavat kehittyvät ja pohdin työssäni uusien projektinhallintatapojen, kuten wikien käyttöä projektinhallinnan työkaluna ja projektiyhteisön välistä viestintää edistävänä työkaluna.

Business Development Efforts and Performance Improvements in SMEs Case Study of Business Development Projects Implemented in SME

Under the circumstances of the increasing market pressure, enterprises try to improve their competitive position by development efforts, and a business development project is one tool for that. There are not many answers to the question of how the development projects launched to improve the business performance in SMEs have succeeded. Theacademic interest in the business development project success has mainly focused on projects implemented in larger organisations rather than in SMEs. The previous studies on the business success of SMEs have mainly focused on new business ventures rather than on existing SMEs. However, nowadays a large number of business development projects are undertaken in existing SMEs, where they can pose a great challenge. This study focuses on business development success in SMEs thathave already established their business. The objective of the present study is to gain a deep understanding on business development project success in the SME-context and to identify the dimensions and factors affecting the project success. Further, the aim is to clarify how the business development projects implemented in SMEs have affected their performance. The empirical evidence is based on multiple case study. This study builds a framework for a generic theory of business development success in the SME-context, based on literature from the areas ofproject and change management, entrepreneurship and small business management, as well as performance measurement, and on empirical evidence from SMES. The framework consists of five success dimensions: entrepreneurial, project preparation, change management, project management and project success. The framework provides a systematic way for analysing the business development project and its impact on the performance and on the performing company. This case evidence indicates that successful business development projects have a balanced, high performance concerning all the dimensions. Good performance in one dimension is not enoughfor the project success, but it gives a good ground for the other dimensions. The other way round, poor performance in one success dimension affects the others, leading to poor performance of the project. In the SME-context the business development project success seems to be dependent on several interrelated dimensions and factors. Success in one area leads to success in other areas, and so creates an upward success spiral. Failure in one area seems to lead to failure in other areas, creating a downward failure spiral. The study indicates that the internal business development projects have affected the SMEs' performance widely also on areas and functions not initially targeted. The implications cover all thesuccess categories: the project efficiency, the impact on the customer, the business success and the future potentiality. With successful cases, the success tends to spread out to areas and functions not mentioned as the project goals, andwith unsuccessful cases the failure seems to spread out widely to the SMEs' other functions. This study also indicates that the most important key factors for successful business development project implementation are the strength of intention, business ability, knowledge, motivation and participation of the employees, as well as adequate and well-timed training provided to the employees.

Sähköasemaprojektoinnin kehittäminen Helsingin Energiassa

Työssä käsitellään Helsingin Energian sähköasemaprojektoinnin kehittämistä. Helsingin kaupunkiolosuhteissa valmiiden ratkaisujen hyödyntäminen ei ole usein mahdollista, vaan asemat on suunniteltava itsenäisinä, erilaisina projekteina. Rakennettavat sähköasemat ovat suuria ja eri osien kilpailuttamisella saavutetaan taloudellista hyötyä. HelenEngineeringillä on mahdollisuus toimia haastavissa projekteissa konsulttimaisena projektinhoitajana. Kun sähköasemaprojektien tarve on jatkuva, Helsingin Energialla on syytä säilyttää oma sähköasemaprojektointiosaaminen. Työtä varten tehtiin haastattelututkimus sähköasemaprojekteja toteuttaville yrityksille ja perehdyttiin kahteen viimeisimpään Helsingin Energialla toteutettuun sähköasemaprojektiin, jotka olivat Viikinmäen 20 kV ja Suvilahden110 kV sähköasemien uusimiset. Näiden perusteella muodostettiin malli toteuttaasähköasemaprojekteja Helsingin Energialla. Malli sisältää muun muassa rungon projektivaiheistukselle, ositukselle, organisaatiokaaviolle, aikataululle ja näkökulmia sopimusten laadintaan. Mallin täysimittainen soveltaminen vaatii kuitenkinjatkuvaa, suunniteltua kehitystyötä. Myös mallia on kehitettävä jatkuvasti.

Voimalaitosprojektin ennakoivan mittaamisen kehittäminen

Tämän diplomityön tavoitteena oli kehittää Teollisuuden Voima Oy:n Olkiluoto3 -ydinvoimalaitosprojektille ennakoiva mittaristo projektin lopputuloksen mittaamiseen. Aluksi työssä perehdyttiin projektinhallinnan ja projektimittaamiseen teoriaan sekä prosessijohtamisen ja riskienhallinnan periaatteisiin. Lisäksi kartoitettiin ennakoivan mittaamisen perusteita ja menetelmiä. Työn empiirisessä osassa selvitettiin projektin nykytila, mahdollisuudet ennakoivaan mittaamiseen sekä ennakoivan mittaamisen lähtökohdat ja rajoitteet. Näiden pohjalta laadittiin kuvaus projektin nykyisistä menettelytavoista sekä kehitettiin perusmalli mittaristosta ennakoivaan tulosmittaamiseen. Lisäksi kartoitettiin projektin tavoitteet ja menestystekijät, joiden pohjalle ennakoiva mittaristo on rakennettu. Menestystekijöiden kartoituksessa käytettiin hyväksi myös organisaation kyselytutkimusta, joka tarjosikin erinomaista tietoa projektista ja mittaamisen mahdollisuuksista. Muodostettu mittaristo keskittyy aikataulu- kustannus- ja dokumentoinnin mittaamiseen. Muut lopputulokseen vaikuttavat projektinhallinnan osa-alueet on työn rajauksen puitteissa jätetty käsittelemättä. Jatkotoimenpide-ehdotuksena voidaan todeta, että mittariston edelleen kehittäminen ja laajentaminen myös muille projektinhallinnan osa-alueille voitaisiin tehdä esimerkiksi toisen diplomityöntekijäntoimesta.