The importance of project governance framework in project procurement planning

Project Procurement is a ‘great’ environment for ethical issues with its low-price state of mind and competition. It has many opportunities that could contribute to illegal activities or unethical behavior especially in the construction industry. In 2006 alone, 17.3% of 417 Malaysian government contract projects were considered sick due to the poor performance by the contractors. Therefore it is important to govern the project procurement, especially the plan procurement stage to ensure the accountability and transparency of the decision made in awarding the right contract to the best contractor. This is where project governance framework (PGF) is really needed in project procurement planning. Project governance is a subset of corporate governance focusing on the areas of corporate governance related to project activities, including: portfolio direction, project sponsorship, project and program management and efficiency and disclosure and reporting. This paper highlights the importance of implementing project governance framework (PGF) to ensure that the decision makers are answerable and accountable to the stakeholders, and the decision making is transparent to avoid any ethical issues arises. A comprehensive preliminary literature is carried out to discover the importance of executing PGF in project procurement in Malaysian public sector. By understanding the important of PGF, it is hoped that this will bring a signal to other developing countries to implement the similar method in ensuring the transparency of the decision making in project procurement planning in their countries.

Project governance in Malaysia hillside developments

Hillsides in urban areas around the world are being developed at an accelerating rate, to accommodate population growth and rapid urbanization. Developments at hillside are attractive places to live because of the views, fresh air, exclusivity and the sense of being close to nature. Despite its attractiveness, hillside developments are prone to natural hazards such as landslides that can have environmental, social and economic consequences. To minimise these risks, it is necessary to consider the concerns of all stakeholders during the project review stage. This paper proposes that project governance concept can be used for this purpose by defining the rights, responsibilities and interests of the key stakeholders. It can also provide a framework within which decisions are made in order to minimise risks associated with natural hazards.

Project governance : ethical decision making in project procurement in the Malaysian public sectors

Managing public sector projects in Malaysia is a unique challenge. This is because of the ethical issues involved during the project procurement process. These ethical issues need attention because they will have an impact on the quality, cost and time of the project itself. The ethical issues here include conflict of interest, bid shopping, collusive tendering, bid cutting, corruption and the payment game. In 2006, 17.3% of 417 Malaysian government contract projects were considered sick due to contractors' performances that failed to conduct the project according to the project plan. Some of the sick projects from these statistics are due to the ethical issues involved. These construction projects have low quality due to the selection of the contractors, done unethically due to personal relationships instead of professional qualifications. That is why it is important to govern the project procurement processes to ensure the accountability and transparency of the decision making process to ensure that these ethical issues can be avoided. Extensive research has been conducted on the ethical issues in the tendering process or the award phase of project management. There is a lack of studies looking at the role of clients, including the government client, in relation to unethical practice in project procurement in the public sector. It is important to understand that ethical issues not only involve the contractors and suppliers but also the clients. Even though there are codes of ethics in the public sectors, ethical issues still arise. Therefore, this research develops a project governance framework (PGEDM) for ethical decision making in the Malaysian public sectors. This framework combines the ethical decision making process together with the project governance principals in guiding the public sectors with ethical decision making in project procurement. A triangulation of questionnaire survey and Delphi study was employed in this research to collect required qualitative and quantitative data. A questionnaire survey was conducted among the public officials (the practitioners) who are currently working in the procurement area in the Malaysian public sectors, in identifying the ethical behaviours and factors influencing further ethical behaviour to occur. A Delphi study was also conducted with the assistance of a panel of experts consisting of practitioners that have expertise in the area of project governance and project procurement as well as academician, which further considered the relationship and the influence of the criteria and indicators of ethical decision making (EDM) and project governance (project criteria, organisational culture, contract award criteria, individual criteria, client's requirements, government procedures and professional ethics). Through the identification and integration of the factors and EDM criteria as well as the project governance criteria and EDM steps for ethical issues, a PGEDM framework was developed to promote, and drive consistent decision outcome in project procurement in the public sector. The framework contributes significantly to ethical decision making in the project procurement process. These findings not only give benefit to the people involved in project procurement but also to the public officials in guiding them to be more accountable in handling ethical issues in the future and to have a more transparent decision making process.

INFORMATION TECHNOLOGY PROJECTS IN NONPROFIT UNIVERSITY: A PROJECT GOVERNANCE PERSPECTIVE

The universities rely on the Information Technology (IT) projects to support and enhance their core strategic objectives of teaching, research, and administration. The researcher’s literature review found that the level of IT funding and resources in the universities is not adequate to meet the IT demands. The universities received more IT project requests than they could execute. As such, universities must selectively fund the IT projects. The objectives of the IT projects in the universities vary. An IT project which benefits the teaching functions may not benefit the administrative functions. As such, the selection of an IT project is challenging in the universities. To aid with the IT decision making, many universities in the United States of America (USA) have formed the IT Governance (ITG) processes. ITG is an IT decision making and accountability framework whose purpose is to align the IT efforts in an organization with its strategic objectives, realize the value of the IT investments, meet the expected performance criteria, and manage the risks and the resources (Weil & Ross, 2004). ITG in the universities is relatively new, and it is not well known how the ITG processes are aiding the nonprofit universities in selecting the right IT projects, and managing the performance of these IT projects. This research adds to the body of knowledge regarding the IT project selection under the governance structure, the maturity of the IT projects, and the IT project performance in the nonprofit universities. The case study research methodology was chosen for this exploratory research. The convenience sampling was done to choose the cases from two large, research universities with decentralized colleges, and two small, centralized universities. The data were collected on nine IT projects from these four universities using the interviews and the university documents. The multi-case analysis was complemented by the Qualitative Comparative Analysis (QCA) to systematically analyze how the IT conditions lead to an outcome. This research found that the IT projects were selected in the centralized universities in a more informed manner. ITG was more authoritative in the small centralized universities; the ITG committees were formed by including the key decision makers, the decision-making roles, and responsibilities were better defined, and the frequency of ITG communication was higher. In the centralized universities, the business units and colleges brought the IT requests to ITG committees; which in turn prioritized the IT requests and allocated the funds and the resources to the IT projects. ITG committee members in the centralized universities had a higher awareness of the university-wide IT needs, and the IT projects tended to align with the strategic objectives. On the other hand, the decentralized colleges and business units in the large universities were influential and often bypassed the ITG processes. The decentralized units often chose the “pet” IT projects, and executed them within a silo, without bringing them to the attention of the ITG committees. While these IT projects met the departmental objectives, they did not always align with the university’s strategic objectives. This research found that the IT project maturity in the university could be increased by following the project management methodologies. The IT project management maturity was found higher in the IT projects executed by the centralized university, where a full-time project manager was assigned to manage the project, and the project manager had a higher expertise in the project management. The IT project executed under the guidance of the Project Management Office (PMO) has exhibited a higher project management maturity, as the PMO set the standards and controls for the project. The IT projects managed by the decentralized colleges by a part-time project manager with lower project management expertise have exhibited a lower project management maturity. The IT projects in the decentralized colleges were often managed by the business, or technical leads, who often lacked the project management expertise. This research found that higher the IT project management maturity, the better is the project performance. The IT projects with a higher maturity had a lower project delay, lower number of missed requirements, and lower number of IT system errors. This research found that the quality of IT decision in the university could be improved by centralizing the IT decision-making processes. The IT project management maturity could be improved by following the project management methodologies. The stakeholder management and communication were found critical for the success of the IT projects in the university. It is hoped that the findings from this research would help the university leaders make the strategic IT decisions, and the university’s IT project managers make the IT project decisions.

Inhibitors to optimal project portfolio selection

The selection of projects and programs of work is a key function of both public and private sector organisations. Ideally, projects and programs that are selected to be undertaken are consistent with strategic objectives for the organisation; will provide value for money and return on investment; will be adequately resourced and prioritised; will not compete with general operations for resources and not restrict the ability of operations to provide income to the organisation; will match the capacity and capability of the organisation to deliver; and will produce outputs that are willingly accepted by end users and customers. Unfortunately,this is not always the case. Possible inhibitors to optimal project portfolio selection include: processes that are inconsistent with the needs of the organisation; reluctance to use an approach that may not produce predetermined preferences; loss of control and perceived decision making power; reliance on quantitative methods rather than qualitative methods for justification; ineffective project and program sponsorship; unclear project governance, processes and linkage to business strategies; ignorance, taboos and perceived effectiveness; inadequate education and training about the processes and their importance.

Investigating the future of project management : a co-word analysis approach

If Project Management (PM) is a well-accepted mode of managing organizations, more and more organizations are adopting PM in order to satisfy the diversified needs of application areas within a variety of industries and organizations. Concurrently, the number of PM practitioners and people involved at various level of qualification is vigorously rising. Thus the importance to characterize, define and understand this field and its underlying strength, basis and development is paramount. For this purpose we will referee to sociology of actor-networks and qualitative scientometrics leading to the choice of the co-word analysis method in enabling us to capture the project management field and its dynamics. Results of a study based on the analysis of EBSCO Business Source Premier Database will be presented and some future trends and scenarios proposed. The main following trends are confirmed, in alignment with previous studies: continuous interest for the “cost engineering” aspects, on going interest for Economic aspects and contracts, how to deal with various project types (categorizations), the integration with Supply Chain Management and Learning and Knowledge Management. Furthermore besides these continuous trends, we can note new areas of interest: the link between strategy and project, Governance, the importance of maturity (organizational performance and metrics, control) and Change Management. We see the actors (Professional Bodies, Governmental Bodies, Agencies, Universities, Industries, Researchers, and Practitioners) reinforcing their competing/cooperative strategies in the development of standards and certifications and moving to more “business oriented” relationships with their members and main stakeholders (Governments, Institutions like European Community, Industries, Agencies, NGOs…), at least at central level.

Creating value in project management using PRINCE2

This important research is published at a critical time in the history of PRINCE2. The world’s project managers are under incredible scrutiny and pressure to ensure their projects deliver quality on time and on budget – and even more so during a world recession. The research shows that PRINCE2 goes a long way to helping them achieve these goals. Although its origins began in the UK, PRINCE2 now has a truly international reach. We are delighted that the Queensland University of Technology (QUT) has undertaken this global, thorough and informative research project. While it highlights the strengths of the methodology itself, the report also looks at the challenges organisations face when using a project management method such as PRINCE2. We’re sure the challenges will resonate with project managers around the world. Securing executive support to champion the adoption of PRINCE2, creating a robust business case and prioritising project governance are key issues that all project managers will grapple with during their career. The research also shows that to be thoroughly effective, organisations need to properly embed PRINCE2 and tailor it to suit their particular circumstances. Many successful organisations have sought the effective help of accredited consulting organisations to assist them in developing a programme to tailor and inculcate this method into their organisational culture. The latest version incorporates a whole chapter on tailoring PRINCE2. We believe that the publication of PRINCE2 Directing Successful Projects using PRINCE2 and the development of further support in the form of materials, mentoring and training for senior executives will be of significant benefit to contemporary project based organisations. The APM Group has already developed a qualification for sponsors in conjunction with the UK’s Home Office to help with this.

Validation of an instrument to measure governance and performance on collaborative infrastructure projects

Collaborative infrastructure projects use hybrid formal and informal governance structures to manage transactions. Based on previous desk-top research, the authors identified the key mechanisms underlying project governance, and posited the performance implications of the governance (Chen et al. 2012). The current paper extends that qualitative research by testing the veracity of those findings using data from 320 Australian construction organisations. The results provide, for the first time, reliable and valid scales to measure governance and performance of collaborative projects, and the relationship between them. The results confirm seven of seven hypothesised governance mechanisms; 30 of 43 hypothesised underlying actions; eight of eight hypothesised key performance indicators; and the dual importance of formal and informal governance. A startling finding of the study was that the implementation intensity of informal mechanisms (non-contractual conditions) is a greater predictor of project performance variance than that of formal mechanisms (contractual conditions). Further, contractual conditions do not directly impact project performance; instead their impact is mediated by the non-contractual features of a project. Obligations established under the contract are not sufficient to optimise project performance.

Città Metropolitane e Smart Governance Iniziative di successo e nodi critici verso la Smart City

The volume contains the results of the research project "Governance Analysis Project (GAP) for the Smart Energy City. The actualization of Smart Cities in the Metropolitan Areas of Europe and Italy” conducted within the PON “Smart Energy Master for the energy management of the territory” at the University Federico II of Naples (TeMA Lab of the Department of Civil, Architectural and Environmental Engineering). Smart Cities have gained increasing relevance in the scientific debate and in the national and international operational practice, emerging as one of the opportunities to rethink cities and, more generally, the life of urban communities. First reflections, researches and projects on the issue seem to converge towards the idea that a “smart” urban development should not only be a result of the yet necessary and unavoidable infrastructural endowment (physical capital) and of its continuing innovation, but also of the quality of human, social and environmental capital, conceived as strategic factors for development. A “smart” city is, primarily, a city able to effectively satisfy the needs of its citizens respecting the rules imposed by the environmental context. It is in such a debate that the project GAP fits with the aim to address Smart Cities in light of the administrative reorganization of Italian large cities as a consequence of the Law 56/2014. With a scientific approach, the volume provides a comprehensive and updated framework of how Italian and European Metropolitan cities are declining the Smart City issue and this thanks to the collection of a wide-ranging screening represented by more than 1.000 initiatives including researches, projects, interventions, technologies, etc. Furthermore, one original element of this research is that after an analysis conducted through indirect sources, a phase of dialogue with “stakeholders” was carried out (and of this there is a wide picture in the volume in which, by the way, are reported long excerpts of the interviews). This has enabled to give a clearer framework of what is now experimenting in Italian and European cities, avoiding being totally naïve for interventions and projects labelled as “smart”, but often lacking of innovative methods and contents.

Managing infrastructure transitions : a complex adaptive systems perspective

Engineering assets such as roads, rail, bridges and other forms of public works are vital to the effective functioning of societies {Herder, 2006 #128}. Proficient provision of this physical infrastructure is therefore one of the key activities of government {Lædre, 2006 #123}. In order to ensure engineering assets are procured and maintained on behalf of citizens, government needs to devise the appropriate policy and institutional architecture for this purpose. The changing institutional arrangements around the procurement of engineering assets are the focus of this paper. The paper describes and analyses the transition to new, more collaborative forms of procurement arrangements which are becoming increasingly prevalent in Australia and other OECD countries. Such fundamental shifts from competitive to more collaborative approaches to project governance can be viewed as a major transition in procurement system arrangements. In many ways such changes mirror the shift from New Public Management, with its emphasis on the use of market mechanisms to achieve efficiencies {Hood, 1991 #166}, towards more collaborative approaches to service delivery, such as those under network governance arrangements {Keast, 2007 #925}. However, just as traditional forms of procurement in a market context resulted in unexpected outcomes for industry, such as a fragmented industry afflicted by chronic litigation {Dubois, 2002 #9}, the change to more collaborative forms of procurement is unlikely to be a panacea to the problems of procurement, and may well also have unintended consequences. This paper argues that perspectives from complex adaptive systems (CAS) theory can contribute to the theory and practice of managing system transitions. In particular the concept of emergence provides a key theoretical construct to understand the aggregate effect that individual project governance arrangements can have upon the structure of specific industries, which in turn impact individual projects. Emergence is understood here as the macro structure that emerges out of the interaction of agents in the system {Holland, 1998 #100; Tang, 2006 #51}.

Prevention of Alcohol-Related Crime and Trauma (PACT) : brief interventions in routine care pathway – a study protocol

Background Globally, alcohol-related injuries cause millions of deaths and huge economic loss each year . The incidence of facial (jawbone) fractures in the Northern Territory of Australia is second only to Greenland, due to a strong involvement of alcohol in its aetiology, and high levels of alcohol consumption. The highest incidences of alcohol-related trauma in the Territory are observed amongst patients in the Maxillofacial Surgery Unit of the Royal Darwin Hospital. Accordingly, this project aims to introduce screening and brief interventions into this unit, with the aims of changing health service provider practice, improving access to care, and improving patient outcomes. Methods Establishment of Project Governance: The project governance team includes a project manager, project leader, an Indigenous Reference Group (IRG) and an Expert Reference Group (ERG). Development of a best practice pathway: PACT project researchers collaborate with clinical staff to develop a best practice pathway suited to the setting of the surgical unit. The pathway provides clear guidelines for screening, assessment, intervention and referral. Implementation: The developed pathway is introduced to the unit through staff training workshops and associate resources and adapted in response to staff feedback. Evaluation: File audits, post workshop questionnaires and semi-structured interviews are administered. Discussion This project allows direct transfer of research findings into clinical practice and can inform future hospital-based injury prevention strategies.

La gouvernance des projets d’architecture : une typologie de la multi-organisation temporaire

Les débats éthiques sur l’architecture ont traditionnellement abordé trois thématiques récurrentes : la beauté, la solidité et l’utilité de l’œuvre architecturale. Plus récemment, les nouvelles connaissances provenant du domaine de la gestion des projets et du développement durable ont apporté d’importantes contributions à la compréhension de la gouvernance de projets. Cependant, la démarche de réalisation des projets d’architecture est tributaire des caractéristiques propres à l’industrie du bâtiment; une industrie qui fonctionne grâce à la mise en place d’équipes temporaires formées par des organisations hautement spécialisées. L’analyse systémique d’études de cas permet d’identifier la complexité des équipes qui interviennent dans les projets d’architecture. Nous examinons dans cet article trois caractéristiques de l’industrie du bâtiment : (i) la complexité organisationnelle du donneur d’ouvrage, (ii) l’influence des parties prenantes, et (iii) les divers niveaux de proximité entre l’architecte et les usagers. L’identification des diverses configurations organisationnelles met en évidence les effets de ces caractéristiques sur les relations formelles et informelles entre l’architecte et les donneurs d’ouvrage ainsi que celles entre toutes les parties prenantes. L’architecte est contraint de travailler sur un projet qui devient, de plus en plus, l’objet de négociation entre les diverses parties prenantes. Face à ce défi, il doit tenir compte de la complexité des relations entre tous les acteurs au sein du système social du projet et créer les scénarios adéquats à la participation, à la négociation et aux échanges entre eux.

The role of cultural capital towards the development of a sustainable business model for design firm internationalization

This paper reports the results of three case studies of firms involved with design for the built environment who have been working in international markets for more than two decades. The first two firms are architectural practices and the third is a construction firm which designs and constructs. Their markets are diverse and their strategies have evolved over the two decades. There are numerous differences between countries including cultural, social, project governance structures, regulatory, procurement strategies, terminology, codes, etc. What is it that makes these firms able to develop sustainable business models in internationalisation? A grounded theory approach was used to examine the three case studies and develop a reflexive capability model drawing from the sociological theory of reflexivity to interpret the characteristics of the firms' ability to be able to adapt different international conditions. Twenty-two interviews were conducted across the three firms. Results indicated that sustainable business models rely upon the management of social, cultural and intellectual capital. The strategic management of capital leads to the development of increasing reflexive capability within the processes related to internationalisation. Reflexive capability is a characteristic of the three successful case study firms internationalising and working within global models of practice. This paper focuses on the role of cultural capital in a reflexive capability model for sustainable internationalisation.