Annotated Bibliography Abednego, Martinus P., and Ogunlana, Stephen O. (2006). “Good project

Annotated Bibliography

Abednego, Martinus P., and Ogunlana, Stephen O. (2006). “Good project governance for proper risk allocation in public-private partnerships in Indonesia.” International Journal of Project Management 24, 622-634.

Summary

The research conducted led to the conclusion that proper risk allocation can be achieved by project governance and can lead to better project performance. Project success is comprised of project management success and product success. Project success is measured by meeting time, cost, and quality objectives, meeting the stakeholders’ needs through the project management process, and meeting stakeholders’ needs through product delivery. The project that was the focus of this study was a public infrastructure project under a public-private partnership. In addition to project management, the project required governance for monitoring and oversight of the strategic direction and strategic decision making. The authors identified eight characteristics of good project governance: right decision at the right time, contract fairness, information transparency, responsiveness, project control and monitoring, equality between involved parties, effectiveness/efficiency, and accountability. The key risks to this project were limited capital, inaccurate project estimation, and improper project planning. Proper risk allocation requires assigning the risk to the party with the capabilities to accept the risk, set the appropriate time frame, and provide alternative solutions to minimize the consequences of the risk. The authors also suggest several project success factors, including “government support, proper project planning, good coordination between parties, trust, good tendering system, proper information dissemination and communication system, and high managerial capabilities.”

Evaluation

The inability to properly and adequately control and mitigate project risks can result in an unsuccessful project. Project governance can ensure that an appropriate risk allocation strategy is developed for the project, which answers the questions of who, what, when, and how. Ignoring project risks can have dire consequences. A risk management plan is fundamental to effective project management and is a common best-practice technique. The value of this research is that it supports what I already know about risk management through a case study analysis of a large, complex construction project.

Alderman, Neil, and Ivory, Chris (2005). “Can project management learn anything from studies of failure in complex systems?” Project Management Journal 36(3), 5-16.

Summary

The authors explore the possibility of applying the lessons learned from studying complex systems to complex projects. They identified certain system characteristics that when applied to projects can contribute to project failure: multiple interactions, internal contradictions, geographical dispersion, and multiple nodes of control. The objective of this research was to show that complex projects are multi-nodal and support multiple objectives that may not be compatible and may actually be contradictory. Also, there is an emerging characteristic to projects because they often execute in a dynamic environment. Thus, management interventions are needed to adjust the project and prevent failures.

Large technology projects are becoming more complex. Complexity can result in errors that can lead to failed projects. Complexity comes from the interdependencies and interactions between many different project elements (multi-nodality). Linear interactions are expected and can sometimes be predicted. Non-linear interactions are between two or more parts or subsystems that cannot be predicted. Project failures have a great deal of non-linearity that can lead to cost and schedule overruns and suboptimal design.

Complex long-term projects have multi-nodality problems and conflicting demands like complex systems. Thus, interventions with a strong management structure are ways to correct problems that could lead to project failures and should be considered a normal project management activity. Interventions are ways to constantly adjust the project to fit emerging changes.

Evaluation

The authors begin strong with good explanations of complexity, non-linearity, and multi-nodality, and how these contribute to project failures. However, the discussion at the end of the paper on interventions is weak and could be strengthened with better definitions and examples of interventions. The authors identified two benefits of their research to project management. First, map a project as interconnected nodes to identify weaknesses and better manage project costs. Second, there is a difference between design and building project management systems and the interventions during project execution that “repair, improve, and steer the project management system.” The latter is often overlooked in project management methods. The authors present some new insights into the management of complex projects to prevent failure.

Association for Project Management (2004). “Directing Change: A guide to governance of project management.” High Wycombe, UK.

Summary

The purpose of this guide is to present best practices regarding the governance of project management activities, which is considered a subset of corporate governance activities. The four main components of project governance are portfolio direction, project sponsorship, project management effectiveness and efficiency, and disclosure and reporting. The guide presents a list of key questions relevant to each of these components that guide the organization to meet the requirements of appropriate project governance. In addition, the guide lists eleven principles for effective governance that when applied, could help avoid common causes of project failure.

Evaluation

This is an excellent reference document for my research paper. It is one of the few documents that I could find that explains project governance. The governance components presented can guide me in my research. The governance principles presented provide a standard for comparison and for building a governance solution for the business problems explained in my research paper.