Designing Effective Project Organisations - Revision history

Tkokotas at 19:27, 20 November 2018

2018-11-20T19:27:53Z

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			''Developed by Qi de Zhao''


	When designing effective project organisations a lot of different factors and actors have to be considered, for instance the responsibilities and management options of the client. How to organise through the life cycle of a project, determination of the organisational breakdown structure and creating optimal and efficient project teams. The article will first introduce the project management concept and the different actors that occur within construction management, afterwards some general knowledge about organising through the life cycle will be presented. Lastly, the strong owner concept will be presented, it is a framework looking at projects from the client's perspective.		When designing effective project organisations a lot of different factors and actors have to be considered, for instance the responsibilities and management options of the client. How to organise through the life cycle of a project, determination of the organisational breakdown structure and creating optimal and efficient project teams. The article will first introduce the project management concept and the different actors that occur within construction management, afterwards some general knowledge about organising through the life cycle will be presented. Lastly, the strong owner concept will be presented, it is a framework looking at projects from the client's perspective.

S133831: /* Owner project capabilities */

2017-06-22T09:58:50Z

Owner project capabilities

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	Winch and Leiringer's starting point is based on "three domains"<ref name=ThreeDom <i> Winch Graham, 2014, "Three domains of project organising. Int. J. Proj. Manag."</ref> viewpoint regarding project organising. "The domains approach starts from the premise that project organising is fundamentally about the creation of new value (Winch, 2010) in the form of assets that can be exploited for beneficial use."<ref name=OwnerCap <i> Winch Graham, Roine Leiringer, 2016, "Owner project capabilities for infrastructure development: A review and development of the “strong owner” concept"</ref>. The three domains are: the supplier domain, the domain of the temporary project or programme organisation and the owner domain of the investor organisation, this article will only present the owner aspects.		Winch and Leiringer's starting point is based on "three domains"<ref name=ThreeDom <i> Winch Graham, 2014, "Three domains of project organising. Int. J. Proj. Manag."</ref> viewpoint regarding project organising. "The domains approach starts from the premise that project organising is fundamentally about the creation of new value (Winch, 2010) in the form of assets that can be exploited for beneficial use."<ref name=OwnerCap <i> Winch Graham, Roine Leiringer, 2016, "Owner project capabilities for infrastructure development: A review and development of the “strong owner” concept"</ref>. The three domains are: the supplier domain, the domain of the temporary project or programme organisation and the owner domain of the investor organisation, this article will only present the owner aspects.

			[[File:OWNERCAP.JPG\|300px\|right\|thumb\|Figure 3: Owner project capabilties.<ref name=OwnerCap <i> Winch Graham, Roine Leiringer, 2016, "Owner project capabilities for infrastructure development: A review and development of the “strong owner” concept"</ref>]]

	The project organising domains model has identified three areas where the owner might need capabilities, and these are:		The project organising domains model has identified three areas where the owner might need capabilities, and these are:
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	* Commercial capabilities - These capabilities are used to administer the interface between the owner organisation and the project-based firm, it involves contractual and relational matters.		* Commercial capabilities - These capabilities are used to administer the interface between the owner organisation and the project-based firm, it involves contractual and relational matters.
	* Governance capabilities - These capabilities are used to manage the interface between the owner organisation and the temporary project organisation, it involves project coordination and asset integration.		* Governance capabilities - These capabilities are used to manage the interface between the owner organisation and the temporary project organisation, it involves project coordination and asset integration.

	[[File:OWNERCAP.JPG\|300px\|right\|thumb\|Figure 3: Owner project capabilties.<ref name=OwnerCap <i> Winch Graham, Roine Leiringer, 2016, "Owner project capabilities for infrastructure development: A review and development of the “strong owner” concept"</ref>]]

	Figure 3 shows an outline of the required owner project capabilities.		Figure 3 shows an outline of the required owner project capabilities.

S133831: /* Project and commercial capabilities */

2017-06-22T09:58:21Z

Project and commercial capabilities

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	===Project and commercial capabilities===		===Project and commercial capabilities===

	Winch and Leiringer differentiate between dynamic and operational capabilities. Operational capabilities are the ability of the organisation to utilise its resource bases to provide effectively and efficiently goods and services to its customers. Dynamic capabilities, are the ability "of an organisation to purposefully create, extend, or modify the resource ~~base”~~. Winch and Leiringer state that, when a purchasing firm has a dynamic capability it may only be an operational capability for a supplying firm. Therefore, most of the project-based firms have operational capabilities, whereas the purchasing owner organisation almost always will have dynamic capabilities because they extend the resource-base of the organisation.		Winch and Leiringer differentiate between dynamic and operational capabilities. Operational capabilities are the ability of the organisation to utilise its resource bases to provide effectively and efficiently goods and services to its customers. Dynamic capabilities, are the ability "''of an organisation to purposefully create, extend, or modify the resource base''”. Winch and Leiringer state that, when a purchasing firm has a dynamic capability it may only be an operational capability for a supplying firm. Therefore, most of the project-based firms have operational capabilities, whereas the purchasing owner organisation almost always will have dynamic capabilities because they extend the resource-base of the organisation.

	===Owner project capabilities===		===Owner project capabilities===

S133831: /* The strong owner concept */

2017-06-22T09:57:44Z

The strong owner concept

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	In the paper some case studies has identified the importance of a 'strong owner' as a dimension of project success. However, Winch and Leiringer state that the case studies only discuss the legal and contractual matters, and therefore the owner can be described as a mere contract-giver and have no relation regarding stakeholder management, institutional context and project strategy.		In the paper some case studies has identified the importance of a 'strong owner' as a dimension of project success. However, Winch and Leiringer state that the case studies only discuss the legal and contractual matters, and therefore the owner can be described as a mere contract-giver and have no relation regarding stakeholder management, institutional context and project strategy.
	Winch and Leiringer defines the success as: "in terms of the achievement of the expected benefits of the investment project for the owner rather than the broader set of criteria encompassing other stakeholder interests (Cooke-Davies, 2002; DeWit, 1988)."		Winch and Leiringer defines the success as: "''in terms of the achievement of the expected benefits of the investment project for the owner rather than the broader set of criteria encompassing other stakeholder interests (Cooke-Davies, 2002; DeWit, 1988).''"

	===Project and commercial capabilities===		===Project and commercial capabilities===

S133831: /* The strong owner concept */

2017-06-22T09:57:06Z

The strong owner concept

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	This section will present some of the most relevant definitions and points from Winch and Leiringer's paper regarding owner project capabilities for infrastructure development. First the paper defines the 'strong owner' and the 'owner project capabilities'. Secondly, a framework has been developed from reviews of "existing literature complemented by pilot empirical research which provides the basis for a research agenda on the role of the owner of the infrastructure assets in achieving high performance on transportation infrastructure projects". Finally, the paper suggest that the generated framework is applicable to other major projects and programmes.<ref name=OwnerCap <i> Winch Graham, Roine Leiringer, 2016, "Owner project capabilities for infrastructure development: A review and development of the “strong owner” concept"</ref>		This section will present some of the most relevant definitions and points from Winch and Leiringer's paper regarding owner project capabilities for infrastructure development. First the paper defines the 'strong owner' and the 'owner project capabilities'. Secondly, a framework has been developed from reviews of "''existing literature complemented by pilot empirical research which provides the basis for a research agenda on the role of the owner of the infrastructure assets in achieving high performance on transportation infrastructure projects''". Finally, the paper suggest that the generated framework is applicable to other major projects and programmes.<ref name=OwnerCap <i> Winch Graham, Roine Leiringer, 2016, "Owner project capabilities for infrastructure development: A review and development of the “strong owner” concept"</ref>

	In the paper some case studies has identified the importance of a 'strong owner' as a dimension of project success. However, Winch and Leiringer state that the case studies only discuss the legal and contractual matters, and therefore the owner can be described as a mere contract-giver and have no relation regarding stakeholder management, institutional context and project strategy.		In the paper some case studies has identified the importance of a 'strong owner' as a dimension of project success. However, Winch and Leiringer state that the case studies only discuss the legal and contractual matters, and therefore the owner can be described as a mere contract-giver and have no relation regarding stakeholder management, institutional context and project strategy.
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	Winch and Leiringer argue that the strong owner concept is applicable beyond infrastructure projects. The argument is based on recent research showing that energy infrastructure projects, and in social and business infrastructure has also identified the importance of a owner role.		Winch and Leiringer argue that the strong owner concept is applicable beyond infrastructure projects. The argument is based on recent research showing that energy infrastructure projects, and in social and business infrastructure has also identified the importance of a owner role.


	==Reflection upon the strong owner concept==		==Reflection upon the strong owner concept==

S133831: /* Organising the project through the life cycle */

2017-06-22T09:56:18Z

Organising the project through the life cycle

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	According to Winch a basic tenet of designing effective organisations is: "that organisations facing high levels of uncertainty need to be relatively adhocratic in organisation and cannot be large, while organisations facing lower levels of uncertainty can be both relatively bureaucratic and large.<ref name=Winch <i>Winch, Graham M., 2010, "Managing Construction Projects, 2nd edition"</ref>		According to Winch a basic tenet of designing effective organisations is: "''that organisations facing high levels of uncertainty need to be relatively adhocratic in organisation and cannot be large, while organisations facing lower levels of uncertainty can be both relatively bureaucratic and large''".<ref name=Winch <i>Winch, Graham M., 2010, "Managing Construction Projects, 2nd edition"</ref>

	==The strong owner concept==		==The strong owner concept==

S133831: /* Organising the project through the life cycle */

2017-06-22T09:55:24Z

Organising the project through the life cycle

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	According to Winch a basic tenet of designing effective organisations is: "that organisations facing high levels of uncertainty need to be relatively adhocratic in organisation and cannot be large, while organisations facing lower levels of uncertainty can be both relatively bureaucratic and large.<ref name=Winch <i>Winch, Graham M., 2010, "Managing Construction Projects, 2nd edition"</ref>		According to Winch a basic tenet of designing effective organisations is: "that organisations facing high levels of uncertainty need to be relatively adhocratic in organisation and cannot be large, while organisations facing lower levels of uncertainty can be both relatively bureaucratic and large.<ref name=Winch <i>Winch, Graham M., 2010, "Managing Construction Projects, 2nd edition"</ref>

	==The strong owner concept==		==The strong owner concept==

S133831: /* The responsibilities of the client */

2017-06-22T09:54:31Z

The responsibilities of the client

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	It is difficult to fulfil all the responsibilities and usually not all the clients have the proper organisational capabilities.		It is difficult to fulfil all the responsibilities and usually not all the clients have the proper organisational capabilities.
	~~The~~ need for these organisational capabilities has led to a development of firms who provide project management services. These firms are ~~often~~ called 'project managers', but in practice, they do not manage and provide co-ordination between resource bases, instead they help the client fulfil its responsibilities towards the project coalition.		Due to the need for these organisational capabilities it has led to a development of firms who provide project management services. These firms are called 'project managers', but in practice, they do not manage and provide co-ordination between resource bases, instead they help the client fulfil its responsibilities towards the project coalition.

	==Organising the project through the life cycle==		==Organising the project through the life cycle==

S133831: /* The implementation of the project management concept */

2017-06-22T09:53:38Z

The implementation of the project management concept

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	[[File:PM_CONCEPT.JPG\|300px\|right\|thumb\|Figure 1: The implementation of the project management concept.<ref name=Winch <i>Winch, Graham M., 2010, "Managing Construction Projects, 2nd edition"</ref>]]		[[File:PM_CONCEPT.JPG\|300px\|right\|thumb\|Figure 1: The implementation of the project management concept.<ref name=Winch <i>Winch, Graham M., 2010, "Managing Construction Projects, 2nd edition"</ref>]]

	Winch has presented three different actors within construction management; The client, the project manager and the resource-bases. The resource bases provide ~~skills~~ required to execute different task within the project. Paul Gaddis has characterised the project manager as the 'manager in the middle', in this context it is between the client and the resource bases.		Winch has presented three different actors within construction management; The client, the project manager and the resource-bases. The resource bases provide competences required to execute different task within the project. Paul Gaddis has characterised the project manager as the 'manager in the middle', in this context it is between the client and the resource bases.
	The goal of the project manager is to act as an interface between the client's desires and the capabilities of the resource bases. In addition the project manager has the responsibility to coordinate during the project life cycle in order to fulfil the client's ~~desires~~ and goals. Across different industries an extensive review of research regarding the application of the project management concept has identified a range of applications, which is presented in figure 1.		The goal of the project manager is to act as an interface between the client's desires and the capabilities of the resource bases. In addition the project manager has the responsibility to coordinate during the project life cycle in order to fulfil the client's needs and goals. Across different industries an extensive review of research regarding the application of the project management concept has identified a range of applications, which is presented in figure 1.
	The distinction between the applications depend on whether the manager of the resource-bases have more control or the project manager has more control. When resource-base managers are in complete control, or the project manager has a liaison role, then it is defined as a functional organisation.		The distinction between the applications depend on whether the manager of the resource-bases have more control or the project manager has more control. When resource-base managers are in complete control, or the project manager has a liaison role, then it is defined as a functional organisation.
	Finally, when the project manager is in complete control, including the authority to hire staff directly, then it is defined as a cell organisation.		Finally, when the project manager is in complete control, including the authority to hire staff directly, then it is defined as a cell organisation.

S133831: /* Annotated bibliography */

2017-06-22T09:50:53Z

Annotated bibliography

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	2. Neilson L. Gary, Estupiñán Jaime and Sethi Bhushan, 2015, "''10 Principles of Organization Design''" https://www.strategy-business.com/article/00318?gko=c7329		2. Neilson L. Gary, Estupiñán Jaime and Sethi Bhushan, 2015, "''10 Principles of Organization Design''" https://www.strategy-business.com/article/00318?gko=c7329

	This paper provides a different framework for organisational design.		This paper provides a different framework for organisational design.


	The book focuses on project management in construction, and has several chapters dedicated to teamwork and project management, but especially chapter 7 is very useful for this topic, and is therefore highly recommended. Here different teamwork concepts are presented, and different studies are presented and commented on.

	==References==		==References==

	<references />		<references />