PMI Africa Presentation 2015

PMI AFRICA CONFERENCE 2015

TITLE IN CAPITAL LETTERSVIVIENNE OGBONNA

Road map…

1. Why Study Value (with case studies)

2. Meaning and Dimensions of Value

3. Stakeholder Value Perception

4. Value and the Construction Life cycle

5. The Research, Findings and Analysis

6. Recommended Solutions

7. Implications and Conclusions


Why Study Value….


Population 1.1 billionCapital Investment in Construction 50% GDP $2.39 trillion

Projects are Temporary Endeavors with a defined Beginning and End undertaken to meet Unique Goals and Objectives usually to bring about Beneficial Change or Added Value

Why Study Value….Case Study 1


Boys Academy in Northern Nigeria

‘A fundamental concern for others in our individual and community lives would go a long way in making the world

the better place we so passionately dreamt of. Nelson Rolihlahla Mandela, (July 1918 – 5 December 2013)

‘Value therefore is only obtained when the right buildings which are affordable, productive, easy to use, maintain or operate as well as sustainable are delivered’ (Dallas, 2006).

Meaning and Dimension of Value…

‘The manner an individual perceives and thinks about the world, structures information, takes action and

behaves’(Kelly et al., 2004).


‘Value means different things to different people’ (Miles, 1972).

‘Creation of new value is two dimensional, beginning with the actual design and construction of the asset

itself and resulting in the production of the asset that is exploited as a medium for an organisation to create is

own value’ (Spencer and Winch, 2002).

‘a measure of the worth of something to its owners or any other person, who derives benefit from it, this being the amount which it can be exchanged’(Carmona, 2001).

Stakeholders Value Perception…


• Original sketches by Dave Taylor

purpose intent

viewpoint

Subjective value

Value and the Construction Life Cycle…


A Break in the involvement of critical stakeholders at any point creates loss of hard and soft aspects of value. The range of input of each stakeholder might enable successful outputs but does not

ensure positive outcomes!!!

The Research…

CHALLENGES OF VALUE DELIVERY AND

THE SEARCH FOR

INNOVATIVE SOLUTIONS


The Research Findings…

Strategic Business Ob-

jective

TCQ Value for Money

Intangible Value

020406080

100120

Meaning of Value in Construction

%


Research Findings…


Percentage responses on value challenges based on codes.

Research Findings…Organisational Issues


Research Findings…External Factors


CONTRACTORS PM

VALUE MANAGER

CLIENT PM

VALUE AND RISK MANAGER

CONSULTANT PM

Research Findings…Value Creation Processes


Research Findings…Stakeholder Factors


CONSULTANT PM

CONTRACTORS PM

CLIENT PM

Case Study 2…

PMI AFRICA CONFERENCE 2015 Church Guest House collapse

ORGANISATIONALFACTORS

VALUE PROCESSFACTORS

EXTERNALFACTORS

STAKEHOLDERFACTORS


Recommended Solutions…

STAKEHOLDER CO-CREATION

LEARNING AND CONTINUOUS KNOWLEDGE TRANSFER

ALIGN ORGANIZATIONAL CULTURE AND

POLICIES

EARLY STAKEHOLDER ENGAGEMENT

COLLABORATION FOR OPTIMAL SOLUTIONS

ADOPT APPROPRIATE

INDUSTRY STANDARDS

eUREKa….or not?

• • MULTI

ORGANIZATIONAL APPROACH

• VALUE MATRIX

• VALUE PROPOSITION

• GARDEIN 1985

• INTEGRATED SOLUTIONS

Enterprise StructureHolistic SolutionsLifetime costingCustomer Centric SolutionsRisk Transfer across boardProduct Efficacy to Outcome Efficiency

Business Strategy form Customers

PerspectiveCaptures soft aspects

of valueAlign Project

Management with Strategic objectives.

Service dominant Logic

Co-creation of Value from Customers

Perspective

Hard and Soft Logic

Product LeadershipOperational Excellence

Customer Intimacy


Purchase et al. (2011)

Macintyre et al., (2011)

PMI AFRICA CONFERENCE 2015PMI AFRICA CONFERENCE 2015

Integrated Value Proposition…

• Client • parent

• Consultant• parent

• Contractor • parent

• Beneficiary• parent

• Formation of Project Enterprise• Semi independent Organisation• Harmonised Objectives and WIIFM• Enables Quick decision making• Ensures cradle to grave participation• Peculiar policies and procedures• Ensures shared risks and opportunities• Combination of Individual value drivers

• Regulator• parent

• Financier • parent• Facility

• Managers parent



SERVICE PROVIDERS



Delivering Value

Implications…



o Ensures involvement of all stakeholders in value co-creation, forging trust and Project ownership.

o Focus remains on customer centric solutions, focus on impact of outcomes not output.

o It promotes skills transfer, knowledge sharing and learning amongst team members.

o It ensures benefits for all, for instance retention of services, assurance of future engagement and cost savings (discounts) by the client due to continuous engagement.

o Engagement of delivery team throughout the project life span.

o Holistic identification and management of risks through the value chain.

o Knowledge generated is siloed in the project but also shared and exported to parent organisation

o learning is ensured and encouraged due to the sense of permanence that pervades the enterprise.

o The team continues to operate virtually to renders post commissioning services, for instance monitoring of customers’ value-in–use, post-delivery.


Implications…

A Last Word….


‘Every one on earth spoke with one voice..co-creation, and worked together ….collaboration. Imagine what would have happened Without divine intervention!

Credits…oAJAM, M. & BAUWMANS, L. 2012. Four Dimensions of measuring Project Success. http://ipms.sukad.com/PM-blog-English/bid/116142/Four-dimensions-for-Measuring-project-success [Online].oATKINSON, R. 1999. Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. International journal of project management, 17, 337-342.oBARRETT, P. 2005. Revaluing construction: a global CIB agenda. International Council for Research and Innovation in Building and Construction (CIB), Rotterdam, the Netherlands.oBRADY, T., DAVIES, A. & GANN, D. 2005a. Can integrated solutions business models work in construction? Building Research & Information, 33, 571-579.oDAINTY, A. 2007. Achieving value through product-service integration: contexts and challenges. CIB Priority Theme-Revaluing Construction: A W065 ‘Organisation and Management of Construction’ Perspective, 45.oFROW, P. & PAYNE, A. 2011. A stakeholder perspective of the value proposition concept. European Journal of Marketing, 45, 223-240.oLANGFORD, D. 2007. Revaluing Construction–Hard and Soft Values. Sexton, M. et al.oMACINTYRE, M., PARRY, G. & ANGELIS, J. 2011. Service design and delivery, New York ; London, Springer.oOGC 2010. Management of Value – MOVTM., London, TSO.oTHOMSON, D. 2011. A pilot study of client complexity, emergent requirements and stakeholder perceptions of project success. Construction Management and Economics, 29, 69-82.oTHOMSON, D. S., AUSTIN, S. A., MILLS, G. R. & DEVINE-WRIGHT, H. 2003b. Addressing the subjective view of value delivery.oVARGO, S. L., MAGLIO, P. P. & AKAKA, M. A. 2008. On value and value co-creation: A service systems and service logic perspective. European management journal, 26, 145-152.oWINCH, G. M. 2010. Managing construction projects, Wiley-Blackwell.


http://ipms.sukad.com/PM-blog-English/bid/116142/Four-dimensions-for-Measuring-project-success

http://ipms.sukad.com/PM-blog-English/bid/116142/Four-dimensions-for-Measuring-project-success

PMI Africa Presentation 2015

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