Challenges in Programme Management in Construction

1. 951768 林冠丞 961653 陳沛諭 961626 王楷名 961654 毛韻雯 961627 胡宇賢 961661 王冠文 961648 唐萬容 961663 蘇域灝 961650 楊益嘉 971715 范雋彥 Major challenges to the successful implementationand practice of programmemanagementin the construction environment:A critical analysis Group 1Advisor：吳思佩

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3. How construction industry to survive the current turbulence in the economic atmosphere? One of the option:Programme Management Abstract

4. Major challenges:All the challenges can be faced during the implementation or at practice stage. Problems:The lack of clarity surrounding programme management in the construction industry. Abstract(Cont.)

5. This paper will provide you: • A broad view on the major challenges. • How to effectively implement and practice construction programmes. Abstract(Cont.)

6. The overview of the term “programme management”. The common definition of programme management:The management of large capital projects. Introduction

7. The selection, planning and overall management of a portfolio of projects to achieve a set of business objectives. Some of the definitions also indicate the efficient execution of the portfolio of projects within a controlled environment. Introduction(Cont.)

8. Lycett et al. :The integration and management of a group of related projects with the intent of achieving benefits that would not have been realised had the projects been managed independently. Introduction(Cont.)

9. Programme management process

10. Program: a group of related projects managed together to obtain specific benefits and controls that would likely not occur if these projects were managed individually. Portfolio:a collection of projects or programs grouped together to facilitate effective management of efforts to meet strategic business objectives. These projects or programs are not necessarily interdependent or directly related. Portfolio Management vs. Programme Management

11. An integrated, structured-framework to co-ordinate, align, and allocate resources, as well as plan, execute and manage a portfolio of construction projects simultaneously to achieve optimum benefits that would not have been realised had the projects been managed separately.

12. Despite the changes and pressure – • global economic instability, • major shifts in the context of the market place, the UK construction industry is ranked among the strongest in the world. (The following research was conducted in the UK construction industry.) Literature review

13. Now we will discuss some major challenges during the implementation and practice stages of construction programmes.

14. 1. Lack of commitment from business leaders. 2. Late delivery of projects, lack of cross-functional working, lack of coordination between projects and lack of alignment of projects to strategy. 3. Lack of knowledge of portfolio management techniques, risk management and financial skills. Challenges

15. 4. Lack of cross-functional communication. 5. Lack of appropriate way to measure project benefits, lack of resources (human/financial) to analyze project data and people constraints. 6. Financial constraints and lack of relevant training. Challenges(Cont.)

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17. Define commitment: Willingness on the part of individuals to contribute much more to the organization than their formal contractual obligation. Challenge 1Lack of commitment from business leaders

18. Why commitment from the business leader is important? Lack of interest of amount the business leaders can let other activities take a priority attention that is not favorable to the programme. Challenge 1(Cont.)Lack of commitment from business leaders

19. To be efficient and successful companies: The ability to plan and execute projects in time within an established budget and meeting required quality consideration. Challenge 2Late delivery of projects

20. To maximize the synergy: The alignment, planning, coordination and execution of the functional projects in a programme are carried out with a high level of precision. As a problem from one project is likely to affect the other projects, which in turn can affect the entire programme. Challenge 2(Cont.)Lack of cross-functional working, coordination between projects, and alignment of project to strategy

21. To retain sustainable competitive advantage: As Knowledge is created and disseminated throughout the firm, it has the potential to contribute to the firm’s value by enhancing its respond to new and unusual situation. Challenge 3 Lack of knowledge of portfolio management techniques, risk management and financial skills

22. The Office of Government Commerce(OGC) states that communication is central to any change process. The greater the change, the greater the need for clear communication about the reasons and rationale behind it. Challenge 4 Lack of cross-functional communication

23. To achieve communication effectively: It is aimed at exchanging timely and useful information with the stakeholders or team. Challenge 4(Cont.) Lack of cross-functional communication

24. It is a challenge that will face an organization newly engaged in programme management. A task of providing a sufficient amount of human and financial resources to analyze the programme data in view of making decision. Challenge 5Lack of appropriate way to measure project benefits, lack of resources (human/financial) to analyze project data and people constraints

25. Reiss highlight that putting together and operating a programme management is not a cheap affair. The organization which is operating programme management may encountered financial constraints. Challenge 6 Financial constraints and lack of relevant training

26. Programme is very complex so that relevant trainings are needed. Challenge 6 (Cont.)Financial constraints and lack of relevant training

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28. Industrial questionnaire survey • 119/1380 9%recovery • Too much research projects makes difficulties in collecting data • Be targeted with many requests for data • Poor respenses Research methods

29. Semi-structured interviews • Use NVivo • Respondents • Learn from other sectors • Knowledge share Research methods(CONT.)

30. Use: • The qualitative data analysis • The quantitative data analysis Analysis methods

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32. Semi-structured interviews revealed the possible major challenges • Lack of awareness of program management and its benefits. • Convincing directors to implement program management. • Organizational challenges. • Other challenges. Major challenges to implementation

33. Lack of awareness is the highest challenge to the implementation of program management. • To overcome lack of awareness and understanding : • Detailed information on program management. • Benefits. Major challenges to implementation

34. The lowest challenge appeared to be getting the directors to accept the validity of program management. • To be supported by the board of directors : • Continuous communication (talks) (awareness) • Follow ups • Feedbacks • Clarifying the interfaces and the benefits Major challenges to implementation

35. The data for this was collected from the UK construction industry using a questionnaire survey. The total of 119 usable responses received were analysed to make inferences. Major challenges to practice of program management

36. The data for the major challenges was analysed using : • Criticality index • T-test Major challenges to practice of program management

37. Prior to proceeding with the analysis, a Cronbach α reliability analysis was conducted. In this case, α = 0.924 ( >= 0.7 ). Major challenges to practice of program management

38. The relative criticality index is computed using the formula below: Major challenges to practice of program management where C is the criticality index. i responses category index = 1, 2, 3, 4, 5. Wi is the weight assigned to ith response = 0, 0.25, 0.5, 0.75 , 1. Xi is the frequency of the ith response given as percentage of the total responses. Range : Low 0.0 ~ 1.0 High

39. Example : Major challenges to practice of program management Challenge A : Challenge B :

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41. Mean indexing • has been repeatedly and widely used in presenting exploratory and descriptive data analysis and can provide support to the criticality index in this research. Mean and index analysis for major challenges

45. Discuss the severity diagnosis of productivity problems and analyze reliability. Evaluate the factors and procedures used in matching project managers to construction projects. Analyze the “leadership styles in information technology projects”. Analyze “use and benefits of tools for risk management”. Risk analysis and management in construction. Example of using Mean indexing

47. the major challenge to the practice of program management is ‘lack of commitment from business leaders’ with criticality index of 0.789 • “presenting a detailed description of the intended roles of a program management office (PMO) in the organization” is the lowest challenge to practicing program management in the UK construction industry with 0.544 criticality index.

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49. 15.Factor analysis

50. Goal: Factor analysis is a multi-variate statistical process that relates a multitude of variables to common basic dimensions based on their mutual correlative relationships. Function: - To explain why two tests are correlated (structural exploration) - To explain how the entire scale is organization (factorial validity of scale) Goal & Function