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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
PMI AFRICA CONFERENCE 2015
Why Study Value….
PMI AFRICA CONFERENCE 2015
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
PMI AFRICA CONFERENCE 2015
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).
PMI AFRICA CONFERENCE 2015
‘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…
PMI AFRICA CONFERENCE 2015
• Original sketches by Dave Taylor
purpose intent
viewpoint
Subjective value
Value and the Construction Life Cycle…
PMI AFRICA CONFERENCE 2015
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
PMI AFRICA CONFERENCE 2015
The Research Findings…
Strategic Business Ob-
jective
TCQ Value for Money
Intangible Value
020406080
100120
Meaning of Value in Construction
%
PMI AFRICA CONFERENCE 2015
Research Findings…
PMI AFRICA CONFERENCE 2015
Percentage responses on value challenges based on codes.
Research Findings…Organisational Issues
PMI AFRICA CONFERENCE 2015
Research Findings…External Factors
PMI AFRICA CONFERENCE 2015
CONTRACTORS PM
VALUE MANAGER
CLIENT PM
VALUE AND RISK MANAGER
CONSULTANT PM
Research Findings…Value Creation Processes
PMI AFRICA CONFERENCE 2015
Research Findings…Stakeholder Factors
PMI AFRICA CONFERENCE 2015
CONSULTANT PM
CONTRACTORS PM
CLIENT PM
Case Study 2…
PMI AFRICA CONFERENCE 2015 Church Guest House collapse
ORGANISATIONALFACTORS
VALUE PROCESSFACTORS
EXTERNALFACTORS
STAKEHOLDERFACTORS
PMI AFRICA CONFERENCE 2015
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
PMI AFRICA CONFERENCE 2015
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
Integrated Value Proposition…
PMI AFRICA CONFERENCE 2015
SERVICE PROVIDERS
Integrated Value Proposition…
PMI AFRICA CONFERENCE 2015
Delivering Value
Implications…
PMI AFRICA CONFERENCE 2015
PMI AFRICA CONFERENCE 2015
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.
PMI AFRICA CONFERENCE 2015
Implications…
A Last Word….
PMI AFRICA CONFERENCE 2015
‘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.
PMI AFRICA CONFERENCE 2015