ANTON BADMAN VIKTOR SJÖBERG - PDF

Description
Managing a megaproject as a program A case study from an internal communication perspective Master of Science Thesis in the Programme Design and Construction Project Management ANTON BADMAN VIKTOR SJÖBERG

Please download to get full document.

View again

of 34
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Information
Category:

Business & Economics

Publish on:

Views: 5 | Pages: 34

Extension: PDF | Download: 0

Share
Transcript
Managing a megaproject as a program A case study from an internal communication perspective Master of Science Thesis in the Programme Design and Construction Project Management ANTON BADMAN VIKTOR SJÖBERG Department of Technology Management and Economics Division of Service Management and Logistics CHALMERS UNIVERSITY OF TECHNOLOGY Göteborg, Sverige 2016 Master s Thesis E2016:094 MASTER S THESIS E2016:094 Managing a megaproject as a program A case study from an internal communication perspective Master s Thesis in the Master s Programme Design and Construction Project Management ANTON BADMAN VIKTOR SJÖBERG Department of Technology Management and Economics Division of Service Management and Logistics CHALMERS UNIVERSITY OF TECHNOLOGY Göteborg, Sweden 2016 Managing a megaproject as a program A case study from an internal communication perspective Master s Thesis in the Master s Programme Design and Construction Project Management ANTON BADMAN VIKTOR SJÖBERG ANTON BADMAN & VIKTOR SJÖBERG, 2016 Examensarbete E2016:094/ Institutionen för teknikens ekonomi och organisation, Chalmers tekniska högskola 2016 Department of Technology Management and Economics Division of Service Management and Logistics Chalmers University of Technology SE Göteborg Sweden Telephone: + 46 (0) Managing a megaproject as a program A case study from an internal communication perspective Master s thesis in Master s Programme Design and Construction Project Management ANTON BADMAN VIKTOR SJÖBERG Department of Technology Management and Economics Division of Service Management and Logistics Chalmers University of Technology SUMMARY Megaprojects have a history associated with cost overruns and benefit shortfalls with opportunities for improvements. Today, megaprojects are becoming more common, making research on megaproject management adequate. The management of such projects is posed with an overflow of data and information and unclear communication channels. The thesis acknowledges the need for management of internal communication, which is considered an important aspect for project success, in the complex environment of construction megaprojects. This thesis studying the Hospital Mega Project (HMP), a project that due to size, complexity and interrelatedness of sup-projects are managed as a program. Program management refers to the processes of managing interrelated projects in a coordinated way in order to obtain synergetic benefits. In this thesis focus is on internal communication and information coordination benefits. The purpose of this thesis is to increase the knowledge and understanding of the challenges with communication and coordination of information in large and complex project organisations. The thesis describes the challenges within a megaproject case to compare and suggest improvements based on program management literature. The authors have studied relevant literature and the HMP case trough an abductive research approach. Thirteen semi-structured interviews, two meeting observations and two document analysis have been carried out. Communication and megaproject literature provided general knowledge and program management literature proposed solutions to enable cross-boundary communication, creation of high-quality information from unstructured data and creation of processes and tools to simplify communication and make responsibilities clear. The thesis showed that there are communication and information coordination challenges within large and complex projects and that program management literature contains ideas that can reduce these communication challenges (e.g. cross-functional communication and uncoordinated information). A program management office has the competence necessary to create, implement and oversee program tools and processes related to communication and information coordination. This, in turn, can unburden the program manager who can focus on analysing and using the information gathered and presented in the organisation. Last, the authors argue that the administrative staff present in the case have an important role for communication, a role that should be developed and used in the entire organisation. Keywords: Megaprojects, program management, internal communication V VI Att driva ett megaprojekt som ett program En fallstudie från ett internt kommunikationsperspektiv Examensarbete inom masterprogrammet Organisation och ledning i bygg- och fastighetssektorn ANTON BADMAN VIKTOR SJÖBERG Instutitionen för teknikens ekonomi och organisation Avdelningen för Service Management and Logistics Chalmers tekniska högskola SAMMANFATTNING Historiskt sett är megaprojekt förknippade med överskridna budgetar och brister i produkten som levereras och det finns således möjligheter för förbättringar. Idag blir megaprojekt allt vanligare, vilket gör forskning inom megaprojekt relevant. Projektledningen av megaprojekt ställs inför utmaningar i form av stora mängder data och information samt oklara kommunikationskanaler. Detta examensarbete poängterar behovet av internkommunikation, vilket anses vara en viktig aspekt för att lyckas med komplexa projekt. Examensarbetet studerar Megasjukhusprojektet, ett projekt som på grund av dess storlek, komplexitet och hur delprojekten är inbördes relaterade, drivs som ett program. Programmanagement kan ses som processerna att koordinera de relaterade projekten inom programmet för att skapa synergifördelar (bl.a. effektivare riskhantering, bättre panering av logistik och tidplan m.fl.). Detta arbete fokuserar på internkommunikation och informationskoordinering inom programorganisationer. Syftet med arbetet är att öka kunskapen och förståelsen för utmaningar kopplade till kommunikation och informationskoordinering som finns i stora och komplexa projektorganisationer, samt att beskriva utmaningarna i en megaprojekt-fallstudie för att jämföra och föreslå förbättringar baserade på programmanagementlitteratur. Författarna har genom ett abduktivt förhållningssätt studerat relevant litteratur parallellt med fallstudien. Tretton semistrukturerade intervjuer, två mötesobservationer och dokumentanalyser av två typer av dokument ligger till grund för denna studie. Litteratur om kommunikation och megaprojekt gav allmän kunskap och programmanagementlitteratur gav ramverket utifrån vilket förbättringar för att möjliggöra gränsöverskridande kommunikation, kvalitetssäkra information skapat av ostrukturerad data och skapandet av processer och verktyg för att förenkla kommunikationen och förtydliga ansvarsområden kunde tas fram. Studien påvisade att det finns kommunikations- och informationskoordineringsutmaningar i stora och komplexa projekt samt att programmanagementlitteratur innehåller vissa idéer som kan minska dessa utmaningar. Ett programmanagement-office (likhet med projektstab) har kompetensen som krävs för att skapa, implementera och se över de programmanagement-verktyg och processer som är relaterade till kommunikation och informationskoordinering. Detta skulle avlasta programmanagern, som kan fokusera på att analysera och använda information som är framtagen och presenterad i organisationen. Till sist hävdar författarna att den administrativa personalen i fallstudien har en viktig roll för kommunikationen. En roll som bör utvecklas och användas i hela programorganisationen. Nyckelord, Megaprojekt, program management, internkommunikation VII TABLE OF CONTENT SUMMARY... V SAMMANFATTNING... VII TABLE OF CONTENT... VIII PREFACE... XI DEFINITIONS AND ABBREVIATIONS... XIII 1 Introduction Purpose and research questions Background Megaproject... 3 Different use of characteristic terminology The complexity characteristic and program management Theoretical framework Communication... 8 The importance of efficient communication... 8 Formal communication... 9 Informal communication Program management... 9 Two standard approaches to program management Challenges with communication and information coordination in program management Proposed solutions in literature to program communication challenges Methodology Research approach Literature review Unit of analysis Data collection and analysis Part 1: Pre-study Part 2: Document study Part 3: Observations Part 4: Interviews Description of the HMP case HMP as a Megaproject HMP as a program Results VIII 6.1 Document Analysis Cost object documents Staff cost prognosis documents Observations Interviews Organically constructed communication network and work structures Informal vs. formal communication Use of information and communication infrastructure Key information flow through the administrative unit Summary of key findings from HMP Discussion and conclusions What are the challenges with internal communication in large complex programs? 43 Lack of cross-functional communication Uncertainty and uncoordinated information Lack of database Conclusion: sub-question Can findings from the case be relevant for the challenges found in program management literature? Puls meetings Administrative Staff as project scouts and promotors of standardisation Conclusion: sub-question How can program management address the challenges with internal communication in large and complex programs? Database and common metrics and methods PrMO as coordinators of information and creators of communication processes 46 Conclusion: Sub-question Future research Reflections of the process References IX X PREFACE During the spring of 2016, this master thesis has been conducted full time to finalise our education in civil engineering at Chalmers University of Technology. First of all, we would like to thank our supervisor Pernilla Gluch at Chalmers that has guided us through our thesis process and always answered our questions. Second, special thanks our two supervisors at the Hospital Mega Project that made the case study possible. And third, we would like to thank all the interviewed employees and other employees that helped us at the Hospital Mega Project. Gothenburg, June 2016 Anton Badman and Viktor Sjöberg XI XII DEFINITIONS AND ABBREVIATIONS Key definitions: Grapevines a word which describes the communication network created through informal relations between the actors in an organisation (Dainty et al., 2006). Information coordination in this thesis defined as the distribution of the same information to different stakeholders. Uncoordinated information would hence be the use by stakeholders of different versions of a document. It is an essential part of clear communication. Information/data the difference is the functionality of information which answers a question such as who, what, when, where and how. Data is gathered and through a process converted into information (Ackoff, 1989). KISS Keep it simple, stupid , an approach to creating simple and usable tools and processes (Kendall and Rollins, 2003). Abbreviations: AS administrative staff making up the administrative unit. HMP The case Hospital Mega Project MSP Managing successful programs, a standard on program management by the British office of governmental commerce (Sowden, 2011). OGC The Office of Governmental Commerce, British governmental office that has developed a standard approach to managing programs PM Project Manager PMI Project Management Institute, which has developed several standards on project, program and portfolio management. If not stated, the use of PMI refers to their standard on program management (PMI, 2013c). PrIS Program information system, closely related to gathering and retrieval systems PrM Program Manager PrMO Program Management Office, referred to as support office or project support office with almost identical functions XIII XIV 1 Introduction When construction projects become larger and more complex, they are reliant on many people s abilities to communicate in an efficient and effective manner. The communication is one of the most important foundations of a project's success (Dainty et al., 2006), and when an increasing number of people are dependent on more information to make the right decisions, the importance of communication grows further. Hence, it is essential that the communication and the flow of information are easy to understand and follow. The largest construction projects are referred to as megaprojects. Megaprojects have a history of extensive cost and time overruns (Flyvbjerg, 2014, Van Marrewijk, 2007, Sun and Zhang, 2011, Haidar and Ellis, 2010, Giezen, 2012). Megaprojects are becoming more common (Flyvbjerg, 2014, Eriksson, 2016), and it is estimated that megaprojects currently account for more than eight percent of the total global gross domestic product (Flyvbjerg, 2014), which makes the frequent time and cost overruns a problem on a national economic level. Historically, there is a somewhat lacking research made on efficient megaproject management, but resent, interest is growing (Eriksson, 2016). Maylor et al. (2006) highlights that today, interests goes beyond single projects and project management, and that organisations now getting more interested in multi project management and program management to find solutions. A program is a temporary organisation that is built up of interrelated projects and sub-programs, and program management is described as a group of related projects, sub-programs, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually (PMI, 2013c, p. 3). A program is made up of several projects, thus, project management is still an important part of programs. A fundamental difference between programs and projects is the number of people involved and the need for coordination between them (Pellegrinelli, 1997). It is not possible to scale up tools and methods from a project to fit a program setting since the difference is nonlinear and require its own specific tools. Program management can be described as an approach to managing multi-projects in a coordinated way in order to reach a common goal (Aritua et al., 2009). The authors of this thesis, along with several scholars (Aritua et al., 2009, Eweje et al., 2012), argue that there is a similarity between programs and megaprojects through the characteristic of complexity, and that the program management literature can provide new inputs to the research of megaproject management and vice versa. Shehu and Akintoye (2009) argues that the construction industry needs to adopt program management due to clients requirements and limitations with project management. In this thesis we have studied one megaproject, managed as a program, the Hospital Mega Project (HMP). The HMP case is interesting since it is possible to study the communication in a megaproject that is managed as a program. The program is made up of three different interrelated sub-programs being carried out in parallel over a time span of more than 10 years and is still in its initial phase. The program management team that represent the client is made up of over 70 people from different backgrounds, companies, and disciplines. The program management team has various areas of expertise ranging from senior management, program managers, project managers, operations/occupation, quality managers, communication, and various experts to name a few. In addition, thousands of people are involved in the design and construction, all with a need of getting the right 1 information at the right time. Furthermore, due to HMPs size, the program management team has to coordinate the sub-programs construction phases in order for them not to compete for the limited labour force in the entire region. The design is carried out in parallel with the construction phase, hence, there is a great flow of information regarding a wide area of knowledge, which is essential for the entire organisation to deliver the project. This flow puts pressure on the communication and coordination of the information in the project. HMP show many similarities with the findings in program literature, both regarding challenges and implemented functions and processes. HMP has adopted an organically structured organisation which is adaptable to the ever-changing environment of the program. They use a program management office which can be used to unburden the program manager who needs to focus on strategic management. The most interesting aspect from the case is that HMP has understood the need for an administration and has hence employed an administrative staff which works as a core communication unit in the program. The emphasis on administration is downplayed in program management literature and should not be underestimated. This thesis uses program management literature to set a new light on megaproject management and especially to identify possibilities on how to improve internal communication in a megaproject. 1.1 Purpose and research questions The first purpose of the thesis is to contribute to the increased knowledge and understanding of the challenges with communication and coordination of information in large and complex project organisations within the construction industry. The second purpose is to describe the communication and its challenges within the program management team of a megaproject case and to compare and suggest improvements. The thesis has one main research question and three sub-questions. The main research questions is: How can a megaproject's internal communication benefit from being managed as a program? The three sub-questions, supporting the main question, are: What are the challenges with internal communication in large complex programs? How can program management address the challenges with internal communication in large and complex programs? Can findings from the case be relevant for the challenges found in program management literature? 2 2 Background The purpose of this chapter is to present the relevance of the literature chosen and why it was chosen for the HMP case. It gives the foundation of the literature presented later in the thesis and is presenting relevant definitions and context for the reader. Megaprojects are the context of the thesis and program management is what we study. The characteristics of megaprojects brought the authors to complexity and eventually program management which is the management of related, often large and complex, groups of projects. 2.1 Megaproject Flyvbjerg (2014) starts his definition on megaprojects with a focus on financial aspects which is common in other literature on megaprojects. However, even though the costs of a project is a frequently used characteristic in literature, there is more to defining the characteristics of a megaproject. Hence, the original meaning of the word mega, from the Greek language, fits better as a summarizing definition of what constitutes a megaproject; namely large. However, such a broad definition is not satisfactory for the purpose of the thesis. Therefore, the chapter will go into more depth of the characteristic terminology used by scholars. Different use of characteristic terminology Scholars writing on the subject of megaprojects use various defining characteristics and attributes to define megaprojects. Some scholars use one or few simple characteristics such as size or cost to define megaprojects (Giezen, 2012). However, other scholars in recent literature, such as in Flyvbjerg (2014) and Haidar and Ellis (2010), writes thoroughly about and problematizes the concept of megaprojects, and their research suggests that the concept is not as self-explanatory and implicit as first argued. First, megaprojects are not necessarily construction projects and can e.g. be ICT systems, change programs, mergers and acquisition, aircraft development, events such as Olympic games, space programs etc. (Flyvbjerg, 2014, Esty, 2004). In the construction context the focus is often on infrastructure projects (Flyvbjerg, 2007, Van Marrewijk et al., 2008, Priemus et
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks