Significance of Programmers and Portfolios and their management in the project’s success
Project Portfolio Management (PPM) is used when numerous initiatives are competing for limited resources. Despite the fact that this strategy appears to be advantageous to construction, it has only been used by a few organizations. Portfolio management began in finance. According to the Global Construction Survey, only one out of every three construction projects came in under budget and only one out of every four were completed on schedule in 2015 (KPMG, 2015). Project management is no longer sufficient. In today’s business environment, long-term performance and a competitive advantage are dependent on dynamic portfolio management. Project and portfolio management (PPM) methods can help businesses identify and achieve their strategic goals, The Crossrail project and programme utilized PPM. PPM has been researched, and the following advantages have been identified: The benefits of this alignment include reduced risk for the organization, increased earnings, demonstrated value for key stakeholders, improved speed to market, and success recurrence.
The data for the study was gathered through a survey and in-depth interviews (Hızal, 2019). A survey was used to collect information on 22 different building project portfolios. The participants were instructed to apply the 36 variables provided to evaluate a professional construction portfolio. All of the projects in the portfolio were evaluated. A few generic questions concerning the portfolio were also asked. Finally, participants were asked open-ended questions in order to get a more thorough picture of their opinions. In addition to the survey, three case studies about PPM and its use in the construction industry were created by interviewing construction professionals.
Project success and project management success
Completion of projects on time and within budget, as well as ensuring that the scope and quality standards are satisfied, are common indicators of project management success. The success of a project is assessed. A successful project affects a large number of people, including project managers, sponsors, clients, and end users. Schedule, budget, quality, and customer satisfaction are all important indications of a project’s success, according to (Vittal et al., 2018). Fulfills one’s position in the organization, and ensure that the owner is adequately compensated for making the greatest decision for themselves and that of customers. Builds a structure in accordance with the mentioned goals. Makes a delivery that meets all of the requirements. Makes money while also satisfying the project’s backers and team.
Project’s Success Factors
Implementing established project management strategies that increase managerial performance and encourage knowledge management is easier in a well-structured organization. All of these policies and procedures are the result of a well-structured project management process. Project teams are made up of people who work together to complete a task, and have a direct impact on project results. As a result, the literature evaluation in this part concentrates on the role of people and organizations in project success. The Crossrail project and programme, had a clear grasp on project management principles and practices, and top-level leaders must demonstrate a dedication to the discipline as well as a willingness to adapt to changing conditions.
The Portfolio’s and Project’s Maturity
With Project Management Professional (PMP) certification qualifications, an individual’s capacity to comprehend and assist projects and corporate goals is seen to improve. Their capacity to manage tasks improves when they handle projects in a portfolio. Portfolio management is used to successfully manage finite resources and pick initiatives that match with the organization’s long-term goals. Portfolio management discourages investment in projects that do not match with the company’s strategic goals. The OPM3® was developed by PMI as a tool to assist organizations in improving their project management capabilities. This paradigm is used to improve, integrate, and evaluate project management procedures. As a result, project management is connected to an organization’s success.
Discussion
Three in-depth interviews and three case studies on PPM implementation in seasoned construction professionals with 20-30 years of construction experience were conducted. PPM applications of all sizes are supported, from the simplest to the most complex. In addition, a survey of 22 construction specialists was undertaken to assess one of their prior portfolios using the 36 success indicators. This study looked at data from 22 portfolios and 73 projects. This type of research helps us better understand the views of construction project managers (PPMs), including how they define success, prioritize tasks, and manage resource transfers across jobs. Portfolio success in construction for instance The Crossrail project and programme, as the research shows, is primarily governed by the same characteristics. A five-fold cross validation procedure was used to assess the model’s predictive potential. A sensitivity analysis was also used to look at changes in success variables. It’s worth noting that there’s just a small amount of study on PPM in the construction industry.
Question 2
Significance of developing and maintaining a comprehensive business case
There are several ways in which businesses can benefit from using business cases as a management tool to help stakeholders and the broader public make evidence-based and open choices. Any subsequent policy, plan, or project can be mapped out and evaluated using this document. Realistic expectations and a clear objective are essential to the project’s success. As part of this, a detailed risk assessment must be completed. A company must be aware of the risks and opportunities involved with any expenditure before making a decision. This means that in addition to a financial ROI, a business case contains a breakdown of all the benefits that have been realized. Five Case Model was used by the British government for the Elizabeth Line Cross Rail project (Crossrail Learning Legacy). The following are business cases which benefited success of The Crossrail project and programme;
“strategic case.” Reading and Heathrow in the west will be connected to Shenfield in the east by the Elizabeth line, which will run 42 kilometers beneath London. Transport for London (TfL) will operate the new train, which will be completely integrated into the city’s existing transportation infrastructure. The new strategy will improve passenger journey times across London, improve connections, and reduce congestion on the London Underground.
‘Economic case’. More than £42 billion in economic benefits are envisaged from the Crossrail project, including the expansion of train service in London and the southeast, an increase in construction of new homes, assistance with regional recovery efforts, and new job opportunities across the country. In addition to making it easier to go around London and the surrounding areas, the Elizabeth line will also make it easier to conduct business. Heathrow Airport, London’s West End, and the City of London’s Canary Wharf will all be better connected to the region’s transportation network, which will be less congested. As a result of the Elizabeth line, 1.5 million additional people will be able to get to central London in 45 minutes or less, increasing the capacity of the train network by 10%. The new line is expected to result in the construction of more than 90,000 new homes. Over 5 million square feet of residential, commercial and retail space have been proposed within a mile of an Elizabeth line station, with roughly half of the applications citing the new railway as a basis. As a result, Crossrail’s business case rested on the notion that it would contribute to an economically healthy and stable society where everyone could succeed and have an equal opportunity.
Its mission was to develop a sustainable mode of transportation that would benefit the UK economy while simultaneously enhancing passenger satisfaction by reducing traffic, shortening commute times, and making London more accessible.
“Commercial case” The effective completion of the £148 billion Crossrail project relied on the correct commercial arrangements between the client and the contractors. Additionally, it was important for the project to be able to respond quickly to any issues that developed in terms of risk and reward. The client’s attitude toward commercial management was addressed throughout the six-year program, from the beginning to the end.
“Financial case” Government, Mayor of London, and London businesses would all contribute to the cost of Crossrail, Prime Minister David Cameron announced in October 2007. A total of £15.9 billion was committed to the Crossrail project. An agreement on expenditure of £14.8 billion was reached following the Comprehensive Spending Review in October 2010. Extra money was needed as the 2018 budget was increased to £17.6 billion to complete this vital project. As of December 2020, Crossrail and Network Rail received an additional £825 million and £390 million in financing, respectively. There is now a total of £18.8 billion available for this project. Overall, Transport for London (TfL) and the Department for Transport (DfT) have worked up an overall financing package of £18.8 billion.
The ‘executive case,’ as it was Crossrail’s project quality management was overseen by an elite team with decades of experience. The initial goal of Crossrail’s project was to build positive relationships with the company’s major contractors and supply chain. Elizabeth line operates the railway line.
Significance of benefits management and its impact on programmes
Project benefits management entails initiating, coordinating, executing, and transitioning change in the organization as a result of project management processes in order to achieve pre-defined project benefits. In some countries, such as the United Kingdom, Active Benefits Management (ABM) is a government standard that was formed out of a demand for proactive management in order to achieve targeted benefits management objectives and it is used in construction of Elizabeth railway. According to (Badewi, 2016) study, Benefits management and project management can be used to improve a project’s success. However, there is a scarcity of evidence that demonstrates the efficacy of BM methods. When examining the influence of project management methodology on investment success, the impact of BM practices was considered. Because many companies are implementing PM and BM at the same time, SEM was used based on the 200 valid responses. PM practices were found to be linked to project management and project investment performance. BM, on the other hand, has been discovered to be less important and to have a smaller impact on project performance than previously anticipated.
The project has a positive impact on the framework of good governance.
The use of contracts to describe desired behaviors and objectives is one of the most critical predictors of project success. Contracts for the project manager and the benefits should also be established to define the scope of the funder’s activity and the project manager’s responsibilities. Not only that, but the funder has a stake as well. Contracts for defining financial requirements, organizational change, and the benefits profile and project charter for the benefit owner’s and project manager’s contract are all detailed in the benefits profile.
Measuring criteria
Having the ability to accurately estimate a company’s business benefits is critical, as it identifies the value streams that will result in those benefits being realized, as well as describing those advantages and their impact. In the future, benefits can be analyzed and defined with certainty, and the baseline against which they are measured will be clear. Efficiency can be determined by investing £x on an endeavor and reaping £y in return, in some situations. Specifying the criteria and measurement techniques becomes required when things get more subjective.
Provides strategy for the long term
when it comes to benefits administration, it’s crucial to remember that a company may have a long-term strategic benefit. In order to keep the benefits coming, they may have to start new projects or programs. Often recognized as the most fundamental and crucial subject in project management.
The link between Project Management and the Benefits Management
Without balancing the multiple operations required to produce this output, deliver the desired benefits, and achieve organizational goals through organizational management, an organization will not be able to achieve its objectives. In today’s unpredictable market, a company’s governance measures must be solid if it intends to increase its return on equity. A company with sound corporate governance can obtain financial resources more affordably than one that lacks this quality control. BRM and PM success criteria are more likely to be combined than used separately. By tracking a project’s benefits, you can keep an eye on progress and make sure it’s part of your overall performance management system.
Conclusion
When PM and BM are combined in a single framework for project benefits, an organization’s chances of success improve. Project management strategies have a considerably higher impact on a project’s likelihood of success as a result of these distinctions. The success of a project investment is determined by two factors: determining who would benefit from the initiative and building a strong business case. A communication plan and a timetable are necessary for project management success, but analyzing the timeline is the most important aspect of project investment success. Combining PM and BM concepts can still result in a successful project. The link between the two disciplines is examined using a governance framework.
Reference
Badewi, A. (2016). The impact of project management (PM) and benefits management (BM) practices on project success: Towards developing a project benefits governance framework. International Journal of Project Management, 34(4), 761-778. https://doi.org/10.1016/j.ijproman.2015.05.005
Crossrail Learning Legacy https://www.crossrail.co.uk/
Hızal, A. S. (2019). Identification and modeling of critical success factors of portfolio management in construction sector (Master’s thesis, Middle East Technical University). https://open.metu.edu.tr/bitstream/handle/11511/43566/index.pdf
Vittal S. Anantatmula & Parviz F. Rad (2018) Role of Organizational Project Management Maturity Factors on Project Success, Engineering Management Journal, 30:3, 165-178, DOI: 10.1080/10429247.2018.1458208
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