Department of Business and Management Course: Strategic Management of Innovation

Bidding for Megaprojects: A Case Study of the Rome Olympic Games 2024

ADVISOR

Prof. Andrea Prencipe

CANDIDATE

Giorgia Pacifico

665991

CO-ADVISOR

Prof. Luca Giustiniano

ACCADEMIC YEAR 2015/2016

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Thispageisleftblankonpurpose.

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INDEXCHAPTERI:MEGAPROJECTSANDTHEELEMENTSTHATSETTLETHEM

1.1Theroleoftheprojectmanager………………………………………………..………….………………………………9

1.2WhatareMegaprojects……………………………………………………………………………………....................11

1.3MegaProjectschallenges:KeynotespeakerMarkThurston………………………………………………..13

1.3.1FactorsrelatedtoMegaProjects………………………………………………………………..…………….14

1.3.2TheHolisticapproach………………………………………………………………………………..……………..16

1.4Howknowledgeissharedamongprojects:resourcesandtheroleofartefacts…………………..21

1.5Whatisabid……………………………………………………………………………………………………………..…………25

1.6Thebidprocess………………………………………………………………………………………………………..………….26

CHAPTERII:WHYCITIESDECIDETOHOSTMEGAEVENTS:THECANDIDATUREOFROMEFORTHE

OLYMPICGAMES2024

2.1MegaprojectsandMega-events:Whycitiesdecidetohosttheseevents……………………..…….…29

2.1.2Financialsustainabilityandbalancingcostsandbenefits…………………………………………….30

2.1.3GovernanceIssues………………………………………………………………………………………………………31

2.1.4Endorsementforenrichingthepositiveeffectsofmega-events…….…………………………...33

2.2TheBidprocessfortheOlympicGames…………………………………………………………………………………34

2.2.1ApplicationProcess……………………………………………………………………………………………..………37

2.2.2.LearningProspects–stage1…………………………………………………………………………..……..…..38

2.2.3Governance,legalandvenuefunding……………………………………………………..…………………..38

2.2.4Learningprospects–stage2..………………………………………………………………………………………39

2.2.5Gamesdelivery,experienceandvenuelegacy-stage3……………………………………………….39

2.2.6Evaluationcommission…………………………………………………………………………..……………………40

2.3CandidatureprocessOlympicGames2024………………………………………………..…………………………40

2.4Candidatecitiestothe2024Games……………………………………………………………..………………………42

2.5ThecandidatureofRome2024:Whatwerethekeypoints…………………………………………………..43

2.6BenefitsfrombiddingfortheOlympicGames……………………………………………………..……………….51

2.7BenefitsofhostingtheOlympicGames……………………………………………………………………………..…52

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CHAPTERIII:OUTCOMESFROMHOSTINGOLYMPICGAMESANDHOWKNOWLEDGEISSHAREDAMONGHOSTINGCITIES3.1Romewithdrawsfrom2024Games...…………………………………………………….………….…………………..54

3.2CostandcostoverrunattheGames……………………………………………………….….….………………..…….56

3.3TheefficiencyoftheOlympicGamesKnowledgeManagementProgram:

Hascostoverrunslowdownovertime?.....................................................................................59

3.4TheimpactofOlympicGamesoncommunities…………………………………………………..…….…..………61

3.4.1Socio-economicimpact…………………………………………………………………………………..…...……….61

3.4.2Socio-culturalimpact………………………………………………………………………………..…………………..62

3.4.3PhysicalImpact…………………………………………………………………………………………..…………………63

3.4.4PoliticalImpact…………………………………………………………………………………………..……...…………64

3.5Recommendationforthepathahead…………………………………………………………………..………………..64

CONCLUSIONS………………………………………………………………………………………….......….………………….…....67

REFERENCES……………………………………………………………………………………………………….………………..………70

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TABLESANDFIGURES

Table1.1CharacteristicsoftheProjectManager.Source:PrincipidiProjectManagement

(ElisabettaSimeoni,GiovanniSerpelloni,Chapterone,pag.10).

Figure1.1AtypologyofartefactsSource:ResolvingConflictsinProblem-Solving:Systemsof

ArtefactsintheDevelopmentofNewRoutines.(Cacciatori,2012).

Figure1.2AbidProcess.Source:BidWritingforProjectManagers(DavidCleden2011.Page36).

ITT=Invitationtotender

Figure1.3Abidprocess(Stages3bto5).Source:BidWritingforProjectManagers(DavidCleden,

2011)

Fig.2.1Manycountriesorganizetheirownnationalselectionprocesstoidentifyasinglecityto

enterPhase1oftheIOCbidprocess.(Biddingfordevelopment,2014).

Fig2.2TheIOChasintroducedavarietyoftoolsandresourcesforbidderstousethroughouteach

phaseofthebidprocess.(Biddingfordevelopment,2014).

Figure2.3:RomaCandidateCityOlympics2024.Source:Candidaturefilestage1:Vision,Games

ConceptandStrategy,2015.

Figure2.3StrategicDevelopmentPlanforthecityofRome,2011.Source:(Candidaturefilestage

1:Vision,ConceptandStrategy,2015)

Figure2.4UrbanAgenda2025forthecityofRomeSource:(Candidaturefilestage1:Vision,

ConceptandStrategy,2015).

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Table3.1:Actualoutturnsports-relatedcostsoftheOlympicGames1960-2016,in2015USD

Source:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.

Table3.2TheOlympicGameshavethelargestcostoverrunofanytypeoflarge-scaleproject,real

termsSource:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.

Table3.3:Sport-relatedcostoverrunintheGamespre-1999andpost-1999,realterms.The

differenceisstatisticallysignificant(p=0.0101).Source:TheOxfordOlympicStudy2016:Costand

CostOverrunattheGames,2016.

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ABSTRACT

ThisthesisinvestigatesthenatureofMegaprojectsandthedifferentphasesto

undertakeinordertodeliverastrongperformance.Thein-depthanalysisallowedto

discoverindetailalltheelementsconstructingabiddingprocessthatotherwisewould

behiddenfromthegeneralknowledge.Thankstocasestudies,research,papersand

thewitnessofoneofthemostrenownedprojectmanagerithasbeenpossibleto

coveralltheaspectboundedwiththeoutcomesofthesemegaprojects.

Subsequently,thecaseanalysisofthecandidatureofRomefortheGamesof2024

providedarealexampleofhowtoughisforcitiesmanagingsuchassignments.Itwill

beexposedthebiddingprocessandthemanifestproposedbythecityofRometo

supportitscandidaturefortheGamesandtheimpactsthesecouldhaveonthecity

andcommunities.Furthermore,itwillbehighlightedthepositiveandnegativeresults

derivingfromthemaswellasprosandconsattributedtohostcitiesthatoverseeto

deliversuchprojects.Inthefinalsection,willbeexplainedthereasonsthatledthecity

ofRometoretractfromtheOlympics2024withaglanceonamoregeneralvision,

analyzingwhycitiesdecidetonothostingtheGameswithdrawingtheircandidature.

Then,itwillbepresentedasectiondedicatedtothecitiestransferofknowledgefrom

eventstoevents,anditwillbeshownhowperformancesimprovedfrompast

Olympics,thankstotheknowledgesharing.Inadditionpotentialenhancementswillbe

listedforfuturebiddersinordertoavoidfurthererrorsandwasteofmoneytohost

theGames.Tosupporttheseproposalsstatisticsshowshowmuchcitiessaved,in

termsofmoney,andimprovedtheirperformancewithhugedifferences,innumbers,

since1999whentheOlympicGamesKnowledgeManagementframeworkwas

introduced.Thecontributethisthesisgivestothegeneralliteratureishighlightedin

descriptionofalltheaspectsrelatedtomegaprojectsandtherecommendationin

ordertoimprovethepositiveoutcomesoftheGamesandmegaprojectsingeneral,

reportingrealexampleswiththeissuesfacedbythecitiesandprojectmanagers.From

thebiddingtothedeliveryphase,thereareaseriesofelementstoconsiderthat

cannotbetakenforgranted.Thebidprocesstakes,mostofthetime,severalyears

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beforebeingapproved.Atfirst,projectmanagerstrytouseavariationofexisting

biddingroutines,verifyingthattheycanbeadoptedforthenewbid,settingthemas

anobjectivetoreach.Then,acostanalysisisimplemented,duetothefactthat

managershavetoplanhowmuchtheyneedtospendforadeterminedproject.Finally,

theprocessisimplemented,oftenwithverylimitedsuccess,especiallywhenthe

biddingisforhugeprojects.Herecomesthechallengesproject-managersface,such

as,realizingtheendresultoftheproject,achievingfinancialobjectives,communicate

anyissuesencounteredinthecourseoftheproject,adoptrightdecisioninorderto

reachproject’spointsandabandonifpurposescannotbereached.Theobstaclesto

overcomemaketheseprojectsprodigiousbuthardtomanage.Themostcommonis

thecostoverrun.Dealingwithmegaprojects,especiallyOlympics,oftenincurincost

overrun,leadingprojectmanagerstofindasolutiontoovercomethisbarrierthatmost

ofthetimestransformtheprojectinaliabilityforbothcitiesandcitizens.Forthese

reasons,inordertotrytodeliverthemostmagnificentperformanceovertimethereis

theneedtoimposestrictrulesthatwillallowtoreachthisobjective.

Specifically,myworksuggestthatorganizingcommitteesshouldcontrolandmanage,

thankstoparticularorganizations,theflowsofmoneyaddressedtotheconstruction

ofinfrastructures,neededfortheevents,andgeneralexpendituresboundedtothis

typeofprojects.Inaddition,theyshouldensurethattherearenotanymore“ghosts

amenities”,becausetheywouldrepresentjustawasteofmoney,paidbycitizensor

sponsoredbytheoneswhokindlydonatesittothehostcity.Summarizing,super-

visioningtheliquidity’sflowsshallbeimplementedtoovercometheaforementioned

challengesandobstaclesthatconstitutethemainissuewhenconsideringthe

Olympics.

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CHAPTERI:MEGAPROJECTSANDTHEELEMENTSTHATSETTLETHEM

Inthisfirstsectionofthepaperwewillgivesomenotionsaboutthefigureofthe

projectmanager;theresponsibilitiesanddegreeofinvolvementinthedevelopmentof

aproject.Then,willbeenlightenedwhatmegaprojectsare,providinginformationand

toolsthatmeasurestheimpacttheyhaveoncitizen’slivesandcitiesurban

developmentandtherisksassociatedtothem.Subsequently,willbereportedan

exampleofarenownedprojectmanager,MarkThurston,whomanagedseveral

megaprojectsandfacedalotofchallengesinordertoaccomplishhisobjectives,then

willbetakenintoaccounttheelementscharacterizingmegaprojects,concludingwith

anintroductionofthebidprocess.

1.1 TheRoleoftheProjectManager

Projectsarenotatout-courtrealizationofcomplexartefacts(bridges,buildings);they

aretheaccomplishmentofoneormoreobjectives,whichareexpectedtogenerate

precisebenefits.Theprojectisnotadeadlinetorespectneitheraseriesofactivitiesor

taskstobeperformed.Itbecomesthesatisfactionoftheinternalandexternal

customers,whicharetheonesbenefittingfromagoodservice.

Thevisionofanenlargedprojectconceptinvolvesaparallelextensionoffieldsand

areasofapplication,suchasaprogramofresearch,developmentofsystemsand

technologies,reorganizationoftheinternalprocesses.Thesearesomeexamplesof

modernprojectswecanfindinindustry,banks,publicadministration,universities,etc.

Inthiscontext,theProjectManagerisresponsiblefortheoperationalmanagementof

theproject,withoutlimitinghisworktothepureandsimple“technicalsupervision”.In

ordertoensuretheoverallsuccessoftheprojectthathasbeenentrustedtobenefits

andobjectives,itisessentialfortheProjectManagertoadoptanapproachthatis

completeandcomprehensive.Thus,theimportanceoftheProjectManageris

increasingduetotalentsandmanagementskills,whichenablinganunderstandable

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andeffectiveoversightoftheproject.TheProjectManagerisresponsibleforthe

qualityandfinancialmanagementoftheproject;hemanagesrisksassociatedwiththe

projectresources(tangibleandintangible),humanresourcesanddifferententities

besidesthebusiness.Apartfromtechnicalandmanagerialskills,theProjectManager

musttakeonstakeholders;dealwiththeTopManagement,negotiatewithsuppliers

andpotentialclients.Alltheseelementsleadtodevelopingtheprofessionalfigureof

theProjectManager.Heistheformalmanageroftheprojectasawholeandmust

ensurethattheendresultsareachievedinlinewiththecosts,timeandquality.His

rolediffersmarkedlyfromtraditionalbusinessrolesinvolvedwithintheworkprocess

throughtheuseofformalauthority.Hisroleisbasedontheauthorityderivedfromits

powersandrequiresamanagementstyleorientedtosocialrelationships,orthe

constructionandmaintenanceofit,bothwithteamprojectandotherorganizational

actors(Baglierietal.1999).Themainobjectivesthatthisactormustimplementare:

• Realizingtheendresultoftheproject

• Achievingfinancialobjectives

• Communicateanyissuesencounteredinthecourseoftheproject

• Adoptrightdecisioninordertoreachproject’spoints

• Abandonifpurposescannotbereached

TobeappointedProjectManagerisrequiredaformallegitimacyoftherolethrougha

preciseassignment.Atthisstage,theProjectManagerwillhavetodemonstratethe

abilitytocommunicateandnegotiatetheirassignmentwiththedeveloperofthe

project.FromnowontherewillbenointerferenceontheProjectManager’sdecisions

concerningthedevelopmentoftheproject.Hewillbeassessedonthebasisofthe

resultachievedoronintermediateevaluationindexes.Oneofthemechanismsfor

evaluationoftheprojectbythecontractorwillcoverthefinancialaspect,whichmust

notdeviatefromtheex-anteforecast.Inthecaseinwhichtheprojectfails,the

contractorwilldetermineiftheelementsthatdidnotovercamedependsonthe

projectmanager.Furthermore,theProjectManagerhastomeetanumberofspecial

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skillsespeciallyonpersonnelmanagement,assetplanning,controlsystemandtheuse

ofinformationsystems.HereceivestotaldelegationbytheTopManagement,being

responsibleformanagingallprojectinterfaces(customers,managers,suppliers,

partners,teametc.).Hence,thereareseveralprerequisitesrequiredfortheProject

Managerregardinghissupervisionandinterpersonaltechniques.Asthetablebelow

shows,therearethreefundamentalcharacteristicstobetakenintoaccountinorder

todevelopthissolidfiguresuchasmanagerial,relationalandpersonal.

Table1.1CharacteristicsoftheProjectManager.Source:PrincipidiProjectManagement

(ElisabettaSimeoni,GiovanniSerpelloni,Chapterone,pag.10).

Forwhatitconcerntechnicalcharacteristics,therearedivergingopinions.According

tomostexperts,isnotrequiredfortheprojectmanagertohaveexpertiserelatedto

thesubjectoftheproject.Hemustbeagreatmanagerandfindthebestprofessionals

figuresabletoachievetheprojectsobjectivesinanintegratedandcoordinated

manner.Beforegoingindeeponhowprojectsaremanagedwewillintroduceinthe

nextparagraphwhatareMegaProjects,thatwillbethefocusofouranalysisinthis

paper.Wewillthenseehowtheroleoftheprojectmanagerisappliedtoprojectsof

suchsize.

1.2 WhatareMegaProjects

“MegacomesfromtheGreekword“mega”andmeanslarge,vast,highandimposing.

Theyrepresentcomplex,large-scaleendeavorsthatcostabilliondollarsormore,take

manyyearstodevelopandbuild,involveprivateandpublicstakeholders,andimpact

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millionsofpeople”(BentFlyvbjerg,2014).Hirschman(1995:vii,xi)calledsuch

projects“privilegedparticlesofthedevelopmentprocessandpointedoutthatoften

theyaredesignedtoambitiouslychangethestructureofsociety,asopposedtominor

andmoreconventionalprojectsthatusedtofitintopre-existingstructuresanddonot

attempttomodifythese”.Hence,MegaProjectsarenotalargervisionofminor

projects.Theycoveracompletelydifferentstrainofprojectsintermsofcomplexity,

lead-timeaspiration,andstakeholderinvolvement.Subsequently,theyarealsovery

differentanddifficulttomanage.Megaprojectsareincreasinglyusedasthefavorite

transfermodelforgoodsandservicesacrossarangeofbusinesssectorslike

infrastructure,IT,bigscienceandmajorevents.Samplesofmegaprojectsareairports,

high-speedraillines,damsandtheOlympics.Eveniftheseprojectsaremadeinorder

toimprovecommunity’squalitylife,suchasconstructingbridgesthatallow

connectionsfromoneplacetoanother,ratherthanorganizingamegaeventthatwill

providemanyjobs,theyhaveseveralweakpointsthataretoughtoovercomeand

couldleadtothefailureoftheseMegaProjects.Theseare:

• Riskduetolongplanninghorizonsandcomplexboundaries.

• Scarceplannersandmanagersexperiencethatleadstoleavingleadership

fragile.

• Decision-makingandplanningaretypicallymulti-actorprocessesinvolving

multiplestakeholderswithconflictinginterests.

• Non-standardtechnologyanddesignthatmakestheprojectuniqueand

preventlearningfromotherprojects.

• Earlyovercommitmentthatmakesimpossibletolookforalternativeanalysis

• Changeoftheprojectscope

• Costoverrunsanddelays

Nowadaysprojectmanagerlivesinstuckwiththemanagementofmegaprojects;they

donotknowhowtodeliverthemsuccessfully,therefore,theytendtobreakand

reorganizeagain,andsometimesrefinancing,inattempttohitproblemsanddeliver

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someversionoftheinitiallyscheduledproject.Thus,isnoteasytodrivemegaprojects.

Successisdefinedastheprojectbeingdeliveredontime,budgetandbenefits.But,as

theevidenceindicates,aroundoneoftenMegaProjectsisonbudget,onscheduleand

onbenefits.ManagingMegaProjectssuchasahugeinfrastructureenterpriseorplant

developmentrequiresbetterqualityprojectmanagementcontrolsinordertoavoid

excessivecostsandscheduleoverruns.Earlyorganizationandplanningofconstruction

MegaProjectssetthestageforeverythingthattakesplaceaftertheproject

authorization.Oncematerials,machineryandmanpowerentertheframe,muchofthe

planningelasticitydisappears.Hence,ishardtobeontrackwiththepre-established

plans.Bybeingsmartaboutprojectdelivery,contractingstrategiesandbyputting

appropriateprojectmanagementcontrolsinplace,manyprojectriskscanbe

eliminatedormitigated.Furthermore,isusefulforprojectmanagerstosharetheir

knowledgeamongprojectsinordertohaveafullpictureoftheproblemthereare

goingtoface,inparticular,isusefulhavingmoreresourcesandtimesavedtocount

on.Inthenextsections,wewillgothroughMegaProject’schallengesreportedby

examplesandadirectdepositionbyoneofthemostfamousUKprojectmanager:

MarkThurston.

1.3 MegaProjectsChallenges:KeynotespeakerMarkThurston

OnMay19th2016LUISSGuidoCarliUniversityinRomehostedthe4thInternational

Workshopdedicatedtothetheme“MegaProjects:TheorymeetsPractice”,organized

byLUISSBusinessSchool(representedbyProfessorAndreaPrencipeandMariangela

Barbuzzi)incollaborationwiththeProjectManagementInstitute(representedby

CarlaMessikomer)andPMIRomeItalyChapter(towhichwerepresentPresident

SergioGerosaandPastPresidentAnnaMariaFelici).Itwastheoccasionforameeting

ofstudyinganddeepeningbetweentheworldofresearch,universitiesandlarge

companiescommittedtobigglobalprojects.Duringtheevent,severalargumentswere

faced;inparticular,aspectsdirectlybundledtoprojectsofbigdimensions.The

keynotespeaker,MarkThurston,detectedsomefactorsmorespecificallyrelatedto

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MegaProjects:scalefactors,complexity,regulation,politicsandinterface.Allofthat

basedonlongpersonalexperience,puttingevidenceonfourprojectsofhuge

dimensionssuchasLondonOlympicGames2012,realizationofa25kmtunnelright

belowtheThames(Tidewayproject)andtherealizationofahighwayfromLondonto

LeedsandManchester(HighSpeed2project).Furthermore,MarkThurstonexhibited

theinterestingparallelbetweentheconceptof“homeostasis”foralivingsystemand

themodelingofthevariablesettingmanagementsuchastomaintainthestabilityofa

complexsystem,appliedinthefieldofmanagementoflargeprojects.Thatargument

hasbeenaninterestingdebatewiththegreatparticipationofthosepresent.Hethen

setsoutthefactorsofgreatestinfluenceoflargeprojects,dividedintofour

perspectivesofgreaterimpact:peopleandleadership,governanceandcontrols,

organizationandculture,outsideworld.Thedeepeningissuesbroughttofocusthe

debateontopicsrelatedtoriskmanagement,theimportanceofthedefinitionand

scopeofcommunicationanddisciplinenecessarytoconductinanefficientwaythese

companies.

1.3.1 FactorsrelatedtoMegaProjects

Accordingtothespeaker,thetransferofknowledgeisoneofthekeypointstobe

takenintoconsiderationwhenwetalkaboutMegaProjects.Takingtheexampleof

Terminal5atHeathrowAirportinLondon,itwasconsideredthefirsttimefrommany

yearswhereprimeorganization,supplychainandgovernmentregulatorscame

togetherandgotitright.TherehasbeenalotofresearcharoundTerminal5project

andithasbeenseenasaplatformforthingsthathavegoneandhappenedsince.Also,

theOlympicswerebuiltonallthegoodworkingaspectsthatweredoneoutat

Heathrow.TheseMegaProjectsaresignificantundertakingsthatgovernments,

agencies,countrieshavetakenonandthesefiveelements:scalefactors,complexity,

regulation,politicsandinterfacearemeanttobethefoundationforsuccess.Theyare

thethingsthatscancomplexity,andbecauseofthatscaleandcomplexity,thereis

invariablyhugepoliticaldimensionandtheUKGovernmenthasbeenattheheartof

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fundingmanyoftheprojectsthatwillbelistedbelow.Inevitably,thescancomplexity

leadstointerfacesandtheseinterfacesarenotnecessarilytechnical;theycouldbe

alsoorganizational(thechanneltunnelthatisbetweennations).Ifwetakeastep

back,wewoulddefineMegaProjectstheonesthathavethosecharacteristics.

MarkThurstonwillthenconsiderfourprojectsdividedintodifferentstages:

• LondonOlympicgames2012-Completed

• Crossrail-70%Completed

• TidewayTunnel-Juststartedtheconstructionphase

• Highspeedtwo–ThirdHybridBillreadings

Startingfromthefirstone,theOlympicgamesinLondonwasa9billionpound

scheme,highlytime-critical.LookingatmanyOlympiccitiesaroundtheworld,they

spentahugeamountofmoneymainlyoninfrastructureandtransportsthathadno

realsustainablebase.Thegamesinterestedagiantamountofnotjustnational,but

globalmediainterest.TheimportanceofmanagingthisMegaProjectwasgivenbythe

partnersinthepreliminaryparliamentorganizationthatinvolvedMarkandhisteam

fromtheoutsetrightthroughtocompletion.Thefollowingone,Cross-rail,isabout

70%doneincontractsandthisisrightgoingonunderneathcentralLondonprovidinga

newEast/Westrailwaythatwilltransformthetravellingexperienceforpeopleinthe

SoutheastofEngland.Thisisabigdealthatwillallowfurthertransportationforthose

whotravelseverydaybybusesorbytubesystem,whicharebusyalldays,everyday,

allyearround.TheTidewayTunnelhasaverydifferentscheme.Theactualphysical

work,itsheartisthreebigtunnelingcontracts.It'seffectivelyprovidingamassive

sewerundertheThamesRiver.ThetunnelwillfollowthealignmentoftheThames

RivergoingundertheHouseofParliament.Theoutsetisnowmovingawayfromthe

developmentphase.Finally,turningtothelastproject,andthisverymuchisamega

projectbuiltintheUKfordecades.TheHybridBillhasgonethroughthehouseof

parliamenttogetapprovaltobuildthisrailway.ItisthelargestHybridBillinitiativefor

UKlegislation.Itisonlyjustgettingintoitsdeliveryphaseandyetthisprojecthas

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alreadyexistedfouryears.Soit'stakenfouryearsofdevelopment.Havingpointed

thatout,whatisthetakeawayfromthesemajorprojects?Theanswer,accordingto

therelatoristotakeaholisticapproach.

1.3.2 TheHolisticapproach

ProjectManagershavetoseethingsasonecompletewhole.ManyofthoseMega

Projectsthathavebeenbrokendownintotoomanysmallerpiecesorinfacthave

beentreatedasmultiple,individualornotrelatedprojectsfindingthemselvesin

trouble.Forthatreason,theauthorwantedtounderlinetheimportanceoftheholistic

integratedapproach,whetheritisprogrammanagementorsomekindofportfolio

management,ifthereisanorganizationinvolvedintheseMegaProjects,ithastobe

takenintoconsiderationthatcomplexityhasbeinganattributetoMegaProjects.That

complexityinevitablydrivesahighdegreeofambiguityintheseprojectsatdifferent

times.Theorganizationsthatgetinvolvedindesigning,buildinganddeliveringthese

majorprojectswanttogetthemselvesinaplacewheretheyarecomfortablewiththe

extentofthatcomplexity.Thefactthatatvariouspointsinthelifeoftheprogram

therewillbeerrorsofambiguityisperfectlynormal.Generally,organizationstrytoget

clarityontoomanyissuestoosoonleadingtofocusonthewrongthings.Then,these

ideasconsideredhaveopposingprioritiesandbecomemonsters.Theytouchthelives

ofthousandsofpeople,theyaffectcommunities,takehumantoo;effectivelyand

divideitinfourpockets.Thefirstone,peopleandleadership,areabsolutelypivotal.

Goingonsomecontrols,themachinerybywhichthesemegaprojectsarebeingdone

andcontrolledisabsolutelymaterial.Arrivingattherightorganizationcultureis

imperative.Thelastpointisthemainissuewiththeoutsideworld.Whenpeoplework

onmegaprojects,theyareallconsumed.Theyabsolutelyconsumealmostevery

minuteofpeople’sday,sevendaysaweek.Formanypersons,ithadbeenacareer-

definingopportunitytoworkonsomeofthesethings,butactuallythereisamuch

biggerworldoutthere.Hence,startingwithpeopleintheindustry,thespeaker

focusedonhowpeoplemanageinteractionswiththesuppliersandotherentitiesin

17

thefield,puttingthemrightatthehearthoftheproject’ssuccess.Continuityand

successionintheprojectmanagementexperiencearekeyfactors.Somepeoplespend

five,eventenyearsoftheircareeronsomeofthesemegaprojects,andtheytakea

longtimetocomplete.Ontopofthat,therearesomehumancomponentsaround

succession,continuity,andresilienceoftheorganization.Experienceandpersonality,

forexample,Ifwewanttotakealookatsomeoftheseniorleaders,executivesthat

havebeeninvolvedinsomeofthesemegaprojectsandseewheretheycomefromor

whattheyhavedonewecanconsider,forinstance,TerryMorgan,ChairmanandChief

ExecutiveofCrossrail.Theirpersonality,charisma,drive,theyfocusabsolutelyinthe

organization.AndyMitchellwhoisnowtheChiefExecutiveoftheSubwayTunnel

spentfiveyearsonCross-railtakenthatlearning;hehadtakenthatexperience.Heis

nowapplyingthethingsheliked,changingthingsasexpectedto.Butexperienceand

personalityoftheseleadersineachbigprogramseitheronclientsideoronsupplier

sideisabsolutelyhalfsuccess.Markputemphasisonthefactthatrelationships

betweentheteamareessentialinordertodevelopandimplementtheprojectin

whichpeopleareworkingon.Thehighdegreeofpersonaltrust,courage,honesty,

oftenveryintimateconversations,makespossibletobesurethatthingsaredonein

therightway.Peoplecouldnotbeonlypolitical,guarded,playtoomanygamesand

freezeeverysingledayintermsofgettingthisjobcompleted.Thatisjustallbucket,

thirstbucketaroundpeopleandleadership.Guidanceandcontrol,asmentioned

above,areconsideredthemachineryofmegaprojects,gettingtheseisabsolutelythe

key.Toseehowrelentlesstheseare,itissufficienttothinkaboutmarketreports,

projectmanagementandmonthlyreportsthathavetobedone.Itisimportantdoit

everymonthforfiveyearsandthatrequiressignificantpersonaldisciplineandthat

relentlessdisciplinewrittenacrossmegaprojectisabsolutelythecrucial.Authority

delegationisanothersignificantelement.LookingatwhatishappeningtodayinHigh-

Speedtwo,theyhadnoauthorityfromtheUKgovernment,soeverysignificant

decisiontheywanttotake,theygottogobacktomajesty'streasury.

Itishugelytimeconsuming,hugelyfrustratingbutthereisaveryfirmgovernment

processwiththeUKgovernmentbywhichtheyreleasededicationalauthorityto

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agencybywhichtimetoconsume.Riskisreallyatthehearthofmakingastrategy

beforemanagingmegaprojects.Whatisgovernment’srequirementtoquenchits

appetiteandmanagingrisk?Goingbacktocomplexityinterfacesandscale,these

thingsarejustawashwithcommercialtime,reputational.Gettingthatappetite

controlriskrightisfundamental.Scopeandbaselineareabsolutelyessentialwhen

thinkingaboutmanagingchange;forinstance,maintainingHigh-Speedtwoprojects

controlledwastough.Stillnotgotahybridbillandauthority,theProjectmanageris

alreadyonbaselineversionsix.Itishowbaselineisrevisedthatbaselinesixtimesto

getwhereitistoday,showingtherelentlessdisciplinerequiredtomanagechange,but

itisjustbreakingthemegaprojectdownintomanageablechunksatthetime.The

projectwascalledtwo-four-one.Twoyearstoeffectivelygetasignready,fouryearsto

build,andayeartogetreadyforbanks.Peoplewhoworkedonitunderstoodwhat

weretheydoingandhoweffectivewasthenextbigfaith,tocometoworkeveryday

ononeofthesebigprojectsandthenstillgotnineyears,fourmonthsand20daysto

go,takesalotofdiscipline.Atleastifispossibletobreakthethingsdownwithchunks

ofpeople;ithelpsthesupplychain,government,andteamtounderstandwherethey

sitatthetime.But,thisisdifferentforpeopleandleadership.Thisisverymuchabout

thequestionsandanswersoftheorganization.Fiverings,theOlympicmovement,

peopleunderstoodwhytheywenttoworkeveryday.Whenmanagerswereworking

onit,itwaspossibletoseethestadiumscomeoutofthegroundandfeelthething

beingbuiltaroundthem,thatsenseofidentityandrandomcultureisveryclearand

important.Then,incentivesandalignment,that’sthroughgovernmentand

government’sdepartment;thepartoftheorganizationsthatguaranteesthesupply

chain.Thesemegaprojectsemploythousandsofpeople.ThebetterjobfortheProject

Managerishelpingindividualsunderstandwhereheorshefitintheorganization,

whentheirpersonalcontribution,whatitdoesisoverendday.Anotherpointwould

be,healthandsafety.TakingintoconsiderationtheLondonOlympicgamesin2012,

projectmanagershadnofatalities,wasthefirsttimetheOlympicmovementthatno

onehaddiedduringconstructionphase.Inessence,20peoplediedinBeijing.Looking

intoorganizationalculture,healthandsafety,well-being,allthepointsrightatthe

19

heartoftheorganizationarematerialintermsofmakingsurethatpeoplegohome

whentheyfinishuntiltheycometoworkagain.

Anadditionalaspectthatisfundamentalisthedeliverymodel.Tomakesurethat95%

oftheorganizationknowsexactlywhytheyarethere,whattheyarebringing,they

havetoknowexactlywhatthereareworkingon,ispossibletoseejusta5%ofthe

peopletobestillscratchingtheirhead,workingouthowtherearegoingtogettheir

taskdone.

Finally,theoutsideworld;theseMegaProjectstouchedthelivesofmanypeople.In

theOlympics,therewere500boroughs,bothCrossrailandtheTidewayTunnelwhich

expandeast-westacrossLondon,touchedmanyofthelocalboroughs,councils,

communities,businessesandignoringthemandnotinvestingtimeinmanagingthat

relationshipisattheheartofsuccess.Creatingadvocacyisreallyimportant.Agreat

exampleofthisistheLondonGames.ItwassupposedtobeseenasaUK’sproject,but

itwasofcourseseen,asitwasaLondon’sproject.

But,oneofthesmartestthingsMurkThurstonandhisteamdidwastotakethetorch

aroundthecountryandhadthisbigtorchrelay,wentallaroundtheUK.Theyhave

seenothercitiesdoit,touchingcommunitiesallaroundtheUK,andmakethewhole

countryfeelthatitwaspartofwhatwasgoingoninLondon.Advocacyandsupport

createdacrosstheUKwereverymaterial.Understandingthecompetitionandthe

accesstotalentandpeopleisanimportantexternalfactor.But,therewerealsomany

divergentopinions.TheGovernmentcouldhavedonealotwith£30billion.There

werealotofhospitalstheycouldhavebuilt,schoolsandthingsaboutsecurityand

policeforce,so,Markandhisteamhadtomakesometoughdecisionsandthemedia

werealloverthis.Thesemegaprojectsknowsomeofthatmediaintrusion,thatmedia

commentary.Itcouldbeverydamagingandequallygetthemediaonyourside;for

thatreason,creatingadvocacycanbeverysignificant.

Funds,governmentsandunionsareotherkeyplayers.Maybethosekeyindividual

areashavebeenallresearched,butonlyifwestoodbackandthoughtaboutit,the

questionnow,aboutlearning,isthisreflectionthatallofthosefactorsareinplay

collectivelyinteractingwitheachotheralmostallthetimeinthesemegaprojects.Itis

20

thisideathattheyarealmostlikealivingsystem;theygetonournextgoingsystem

steering.ThatMegaProjectisaverylivedynamicsystemandbreathinganddoes

differentthingsjustlikeaspeopledoeseverysingledayandthatwhatistheheartof

people’slearning.

Atthispoint,thespeakerunderlinesthecoreofhisspeechthatisbasedonhow

mergestheoryandpracticetogether.Forthatreason,heexplainedthatthereisa

frameworkformegaprojectsthatactuallymanagersandpeoplecouldlearnfrom,

creatingareferencepointfromwhichwepeoplethinkthereissomethingtobe

thoughtaboutandresearchedinprobably,evenmore,detail.Thatiswhathecallsthe

ideaofhomeostasis.Itisabouthowsystems,particularlylivingsystemsmaintainsome

senseofbalanceandequilibriumwhenallthevariablesareinplayallthetime.This

ideaofcreatinghomeostasismoreformegaprojectsiswhenwehavetakenthese

stepsbackwithaheartofourlearning.Hereferredtotheidea,"Allthesemega

projectsaremonsters.Theyhavemultipletentacles,theytouchthousandsoflivesand

actuallytoputallthoseinternalandexternalthingstogetheratthesametime."

Peoplehaveaverysignificantchallengeontheirhands.Keepingallofthose,which

nowmayhavebeentranslatedtokeepmostplatesspinningatthesametime,isreally

ahighaerialexperienceofthesuccessforthisMegaProjects.Thatiswhatmakes

peoplethemasterofsomewhat.But,whatstruckpeopleisbeingawareofthese

answers,understandtheyareallinplayandatanypointintimetheycandialupand

downattentionandleadershipenergytoallthesedifferentfactors.Thereisnoright

andwrong.Aswehaveseen,elementsareconsistentlybeingappliedbetweenthe

fourprojects,becauseoftheportabilityoflearningacrossmegaprojects.Wehave

seensignificantdeviationsfromwhathasbeendoneontheOlympicsandinsome

levelsofdifferentprojects.Eveniftherearedifferententities,thosethingsarestillat

playinthehomeostasisroleofmegaprojectsandprojectmanagerstrytokeepallof

theminbalance.Beingflexibleandseenthecorporationasawholewiththesupply

chain,clientorganization,stakeholdersanddevelopmentteamleadstowardtheheart

ofthedeliveryofsuccess.

21

Insummary,thesemegaprojectshaveinternalandexternalparametersthatare

applied,theyarepartofrestrictionsandarereallyhardtoset.Itisaboutthesecritical

issuesandknowingwhentofocusonwhat,isanartform.Continuingonthe

importanceofsharingknowledgeandthetransferoflearning,inthenextparagraph,

wewillseehowthesearesharedamongprojectsandwhattypesofresourcesare

usedinordertoimplementtheperformanceresult.

1.4 Howknowledgeissharedamongprojects:Resourcesandtheroleofartefacts

Transferringlearningsuccessfullyacrossprojectshasbeenforalonganaspiration

amongprojectmanagers.Thedifficultiesinreachingthisobjectivearecreatedbythe

verynatureofprojectsthemselves:theirseparationfromstableorganizationsand

theiruniqueness.Despitesignificanteffortsbyfirmstodevelopreliablesystemsto

transferlearning,itisraretofindanorganizationthatdoesnotdesiretobeableto

transferknowledgeinordertogainbenefits.InthecontextofMegaprojects,it

becomesevenmorechallenging;thisisduethesizeandcomplexityofMegaprojects

thatmakeitverydifficulttodefineactorsandfactorsthatinfluencetheperformance

ofaproject.Theconditionisfurthermorecomplicatedbymuchofthelearningthatis

transferredbetweenMegaprojects,beingcircumstantialinnature.Someacademic

studiesformulatedrigorouslythefoundationsofMegaproject’sperformancebutthis

farandfewamongandtendtorelyonveryancientsources.Beforedelvingintohow

knowledgeissharedamongprojects,wehavetoconsiderseveralfactorsthatdrive

projectmanagerstomakedecisions.Firstofall,wehavetounderstandhowfirms

storagetheirknowledge.

Basedontheresource-basedviewofthefirm(Penrose1980)competenciesarekey

elementsinthesurvivalandgrowthofcompanies.Fromanorganizationalpointof

view,skillsaretheresultofalearningprocessthatleadstobuildingnewroutines.

Thesearethemainelementsthatrepresentorganizationalmemorywithregardsto

firm’soperations.Inthisway,firmsrememberbydoing.Thepresenceofhigherorder

routines,capableofmodifyingoperatingroutines,areseenastheperilousmeansby

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whichfirmsareabletoadapttheircompetenciestosurviveinavaryingandturbulent

environment.Atthecorebothofthenormaloperationsoffirmsandtheirabilityto

produceoradaptchanges,therearethereforestableorganizationalprocesses.

However,firmsthatoperatemainlywithprojects,hasarguedthatthetemporaryand

ofteninter-organizationalnatureofprojectsmakesitdifficulttodeveloproutines,

preventingoneoftheprincipalmeansthroughwhichorganizationsrememberwhat

theyhavelearnt.Ifweconsidertwodifferentfirms,oneanadvertisingfirmandthe

otheroneITfirm,weknowthattheyhavedifferentwaysofstoringknowledge.The

advertisingcompanyneedsindividualexpertiseasakeysourceofcompetitive

advantage,theyhavetobecreativeandusecurrentknowledgeinnewcreativeways,

whileintheITfirmtheimportanceistoaccumulatetechnicalandorganizational

competencies.Hence,stickingtopreviousandestablishedcompetenciesandroutines

ismuchstrongerintheITCompanythanintheadvertisingone.Inthosecontextsin

whichcompaniesareimportantdepositsofinformation,theinitialreactiontothe

perceiveddifficultyofencryptinglearninghasbeentorelyeitherontechnologyoron

individuals.Thedifferencebetweenthesetwoformsisthatthefirstoneistacit,andit

reliesonthebehaveoftheindividual,thesecondonecanbeeasilystored,thanksto

theevidencethatitgives,thisisembodiedinobjectssuchasdatabaseorsoftware

modules,thatcanbereusedandsuitableforall.Thisoppositepointofviewbetween

extremelycodifiedandextremelytacitleadstoanintensedebatethatstatesthe

extenttowhichITcanbeusedtostoreknowledgeandcomplementhumanmemory

(BannonandKuutti,1996,PaoliandPrencipe,2003;SchultzeandLeidner,2002;Swan

andScarbrough,2001).Otherresearchstatesthatestablishedorganizational

processeshaveasignificantroleevenincomplexproject-basedenvironments.Forthat

reason,whenlookingatproject-basedorganizing,itisimportanttodistinguish

betweenprojectsandbusinessprocesses.Theformeraimsatdelivery,designand

productionofspecificproduct;thelattercoordinatestheaccessofeachprojectto

firm-specificresources,suchasexpertise.Studiesconfirmedthatevenifthereare

discontinuitiesofprojectsoperations,firmsareabletodeveloproutinesthat

constituteeconomiesofrepetitionacrosssimilarprojects.Inthisway,thebiddingand

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projectexecutioncostsdiminishforlaterprojectsinspecificlinesofbusinessstages,

suchasoutsourcing,build-operate-transfer.Firmsusuallytakesolutioninoneindustry

andreadaptthatsolutionforotherproblemsinsimilarindustries.Theimportantisnot

thequestion“what”or“howmany”memoriesworksinprojects,theimportanceis

givenbyhowtheyinteractandenablethetransferofadaptationoflearningfrom

projecttoproject.

Forthatreasons,afirmshouldfocusmoreon“rememberbydoing”insteadof

focusingon“learningbydoing”.Thelearningcurveimpliesanalterationofthe

knowledge;ittakesplaceinafirm’smemorythatuseslearningasasymboltomodify

knowledge,takingforappropriatetheprocessthroughwhichthisisdeliveredtoand

recoveredfromtheorganization’smemory(Cacciatori,2012).Theprocessthatdefines

theseelementscanbebetterunderstoodexplainingtheroleplayedbyartefacts.

Severalauthors(D’adderio,Howard-Grenville,PentlandandRueter,Rerupand

Feldman,Salvato,TurnerandFern2012)identifiedtwodimensionsofartefacts.The

firstdimensioncanbedividedinSpeakingandSilentartefacts;theseconddimension

ingenerictooccupationandspecifictooccupation.Puttingtheminatableweobtain:

Figure1.1AtypologyofartefactsSource:ResolvingConflictsinProblem-Solving:SystemsofArtefactsintheDevelopmentofNewRoutines.(Cacciatori,2012).

Speakingartefactsincludesvisualortextualrepresentationofknowledge,suchas

manuals,reportsandmathematicalformulas.Theyincorporateproduct

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representationgivenbydrawings,sketchesandvisualprototypesandprocess

representation,formedbyproceduresandchecklist.Speakingartefactsare

fundamentalbecausefacilitatetheexaminationoftheroleofartefactsinthe

resolutionofproblemsandreasoningaspectofroutines.Theirevidenceallowsusers

toeasilyadaptthistypeofknowledgetonewdevelopingroutines.Theyareeasyto

manipulate,thus,evolveinparallelwiththeproblem-solvingactivity.Onthecontrary,

ifartefactsarenotflexible,sonoteasytoadapt,isdifficulttodevelopnewroutines.In

thiscase,theorganization’smembershavetodecidewhethertochangetheirpersonal

behaviororchangingtheartefacts.Therigidityofspeakingartefactsenablesusersto

understandthedriveandfunctionofasystemleadingtosearchsolutiontoaproblem

theyencounter,favoringsoalternativesfromthisrigidity.

Silentartifactsdonotcontaintextualorvisualrepresentationofknowledgebutthey

embodyandmakeknowledgeavailableforusethankstotheirnotabilityin

instrumentsandequipment,butinawaythatislesseasilytoworkwiththanis

possiblewithspeakingartefacts.Themaintaskofsilentartefactsistopermitpeople

tocollaborateinordertodevelopanewproductoranewproject.Thisisduetotheir

“actionaffordances”,ortheactionsuggestedbytheirshape.Forexample,handle

shapessuggestaliftingmovementoradownwardpressureifitisadoorhandle.

Hence,weassociatesilentartefactsasdeductiveobjects;thankstothat,peoplecan

easilyfigureouttheirscope.Studiesshowthatintroducingsilentartefactswithdirect

affordancestodesiredactionsstrengthenthestabilityofroutines,ratherthan

reasoningaboutartefacts,weassociatewiththemexperience-basedaction

possibilities.

Finally,artefactsspecifictooccupationrepresentthetoolsofthetradeofan

occupationorgroupofcloselyrelatedoccupations.Examplesofspecificsilent

artefactsincludedthescalpelusedbysurgeonsorbrushusedbyartists.Examplesof

speakingartefactsspecifictooccupationaretechnicaldrawingsusedbyarchitectsor

engineers.Artefactscanbedevelopedforaspecificoccupationorcanbereadaptedto

similaroccupations.Themembersofanorganizationindependentlyoftheirspecific

occupationuseartefactsgenerictooccupation.Forexample,officefurnitureisan

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effectivestandardofgenericsilentartefacts.Amongspeakingartefacts,organizational

proceduresanalyzedabovearetypicallygenerictooccupations–althoughthe

definitionoftheprocedures,carryingoutataskmaybeoccupationspecific.Artefacts

embodyandexhibitaparticularsetofprinciples,suggestingactionthathastobe

takenandiscoherentwiththevaluesoftheorganization.Forinstance,anopenspace

officepolicyencouragesworkcolleaguestodropinoneother.Thus,artefactswitha

strongsymbolicdimensionhaveanormativesignificanceandcanbeseenasapartof

theostensiveaspectoforganizationalroutine.Thatsaid,wecollectalltheelements

thatallowustounderstandthebiddingprocess.

1.5 WhatisaBid

TheBidisthedealer'sreplytoaclient’srequestforaproject;theanswertothe

questionspresentedbytheclient.Itisreferredalsotoaproposal;itisabinding

document,firstlyevaluatedbytheusertoestablishiftheworkshouldbeendowed

andifitis,itbecomesabinderonthepartofthesupplierastowhatwillbedone.

Therearemanytypesofbids,astherearemanydifferentprojects.Thebidding

processisakeysalesactivityformostservicesandproductsorientedorganizations.

Theprinciplesofbidwritingapplyequallyacrossthescalefromverysmalltoverylarge

project.Focusingonthecommercialbidresultsoneoftheseveralpossiblesuppliers

beingawardedacontracttoexecuteaprojectoraprogramofwork.However,many

oftheprinciplestobediscussedremainvalidoutsideofbusinesscontext,suchas

whendivingforaninternalprojectorundertakinganon-commercialbasis.Thebid

processcontrolsthewaythebidgroupprepares,maturesandsendsthetendertothe

customer.Ifwellprepared,thebidproposalrepresentsaperfectblueprintforsuccess.

Mostsuccessfulproposalsarenotcasualresults.Theyarecreatedfollowingstructured

bidprocessaimedtoguidethebidteamintherightdirection.Thekeyofhavingan

establishedbidprocessisessentialtoensurethatstepsarefollowedandthingsare

doneintherightwayattherighttime.

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1.6 Thebiddingprocess

Althougheachapplicationisunique,thebidmustensurequalityandreliability.Itasks

thesamepertinentquestions,althoughtheanswerisdifferentineachcase.Thebid

processisaguidingframeworkbutitisnotaprescriptivejoin-the-dotsformula.The

figuresbelowshoweachsteptobeundertakewhenorganizationsstartabidding

process:

Figure1.2AbidProcess.Source:BidWritingforProjectManagers(DavidCleden2011.Page36)ITT=Invitationtotender

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Figure1.3Abidprocess(Stages3bto5).Source:BidWritingforProjectManagers(DavidCleden,2011)

Referringtothefiguresaboveandapplyingthetoolsmentionedintheprevious

paragraphs,thebiddingprocesscanbesummarizedinthreebigperiods.

Thefirstone,seethecompanyusingavariationofitsexistingbiddingroutines,

verifyingiftheycanbeadoptedforthenewbid,andsetsthen,anobjectivetoreach.

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Thisperiodmakesitpossibletoidentifytheresourcesthatfirmsmakeavailableto

agents.Inaddition,thisphaseconsiderstheso-called“stretching”oftheartefacts

alreadyusedinpreviousroutinesinordertomakethemsupportnoveloutlineof

interaction.

Duringthesecondperiod,agentsusetheresourcesattheirdisposalinorderto

introduceanewbiddingprocess.Inthisperioditis,therefore,possibletoexamine

howorganizationstakeplace.Inthisstage,acostanalysisisimplemented,thisdueto

thefactthatmanagershavetoplanhowmuchtheyneedtospendforacertainproject

andhowmuchtheyneedinordertogettheresourcesrequiredforthedevelopment

oftheassignment.

Inthethirdperiod,thecompanyattemptedtoimplementthenewprocess,withvery

limitedsuccess–makingitpossibletocompareandcontrastareasofsuccessor

failure.Ifthebiddingrequestisdeclined,managerscanstorethatfailureintotheir

organization’smemoryasalessonlearnt.Onthecontrary,ifthebidproposalwins,a

transferofknowledgetakesplacetotheincomingteam,andtheycanreusethis

winningstrategyfornextperformances.Finally,oncetheprojectisapproved,thereis

aninitiationofit.

Conclusion

Inthenextchapter,wewillgothroughthecoreofouranalysistakinginto

considerationthegeneralbiddingprocessthatcitieshavetofollowinordertobe

electedtoparticipatetotheOlympics,thebenefitsofhostingtheseeventsandthe

casestudyreferredtothecandidatureofRomefortheOlympicgamesof2024.

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CHAPTERII:WHYCITIESBIDTOHOSTMEGAEVENTS:THECANDIDATUREOFROMEFORTHEOLYMPICGAMES2024

Inthissegmentwewilldelveintothecoreanalysisofthispaper,wewillgothrough

thephasesthatarerequiredinordertosubmitthecandidaturefortheOlympic

Games.Beforethat,wewillseethereasonsthatleadcitiestohostMega-events,in

particularMega-sportingeventsliketheOlympics.Hence,thechallengesthosecities

havetofaceandallthepositiveoutcomesthattheycouldgainfromthistypeof

occasions.WewillthenseethecaseofthecandidatureofRomefortheOlympic

Gamesof2024withthevisionandtheobjectivesproposedbytheCONI(Comitato

OlimpicoNazionaleItaliano)inordertomakethebidvalidfortheIOC(International

OlympicCommittee).Furthermore,wewillhighlightthebiddingprocessboundedto

thecandidatureandtheproposalarrangedtobepresentedtotheIOC.Finally,wewill

analyzethelegacyoftheMega-sportseventsgivingaglanceonhowthebidproposal

couldrepresentanimprovementforthepolicymakingofthecity.

2.1MegaprojectsandMega-events:Whycitiesdecidetohosttheseevents

Mega-eventsareeventswithaworldwideaudience.Theyaredifferentinclassand

organization,butthepurposeisonthosethathaveawanderingcharacter,resulting

fromdistinctivesites,andareawardedthroughabiddingprocess.Theseincorporate

theWorldCups,World’sFairandtheOlympicGames.Since1951megasportevents

haveoutstrippedothersortsofmega-eventsintermsoffrequencyandcommercial

investment,agrowthrelatedtoincreasingmediaattentionandworldwideinfluence.

Thereisavigorouscompetitionforhostingamega-event,whichisbroadlyseenasthe

chancetopromotethecityandthecountryattheglobalscale.Mega-eventsalsotook

placeinthesouthgloberecently:theOlympicsheldinBrazilin2016andinMexico

Cityin1968.Thisnewpredispositionincreasesinquiriesinthespecificcontextoffast

growingcitiesinemergingcountries,specificallytheimportanceofdistributingfunds

30

tobuildsportamenitiesandworld-classinfrastructureswheretheessentialneedsof

theurbanpopulationarenotmet,atleastofsizeableproportionofresidents(Pillar&

Bass,2009).

Twomainfeaturesleadscitiestohostmega-events.First,theyarewindowsforthe

promotionofnationalunityandthecoherentarticulationofnationalidentity.An

effectivehostingoffersinternationalmarketing,reputationandlegitimacytothehost

cityandtothenation,whichisespeciallydesiredbyemergingeconomieseagerto

provethattheyhavebecomemajorplayersontheglobalstage(Blackandvander

Westhuizen,2004).Secondly,hostingamega-sporteventrestsonthepromiseofan

economicwindfallcoupledwithasubstantialurbanmakeover(Essex&Chalkley,

1998).Theideaisthattheinternationalexposuregeneratedbymega-eventsattracts

newresourcesoffundingtohostcities.Thespecificfacilities(e.g.stadium)mandatory

bymega-sportingeventscanbecomemilestonesintheurbanbackgroundofatown.

Afarthese,hostingmega-eventsofferstheincentivefortheimplementationof

ambitiousurbanprojects,suchasrenovationofpublictransportinfrastructure(e.g.,

roads,airport,transportationsystem)andundertakingregenerationinitiativesinmany

partsofthecity.TheOlympicsheldinBarcelonain1992isconsideredafascinating

exampleofhowtoblendamega-eventwithmetropolitanmegaprojects:therebirthof

anabandonedportandindustrialareatohostsportsfacilitiesandlifthospitality

capacityallowedacitytorecombinewithitswaterfrontanddevelopatouristand

entertainingareaintheinnercity.Thus,biddingformega-eventandarrangingit

usuallystimulateamajorurbantransformation,whichmayhavebeenintheplansbut

delayedforvariouscauses.

2.1.2Financialsustainabilityandbalancingcostsandbenefits

Ingeneral,Mega-Projectsarefundedbybothprivateandpublicinvestments,ina

combinationthatisassumedtoassurefinancialsustainability.Althoughitisnow

acknowledgedthatpublic-privatepartnershipsinmegaprojectprovisionareacrucial

31

elementofmega-events,theyhavenotprovenappropriateforensuringeconomic

sustainabilityinthelongterm.

Ingeneral,publicfundsareusedtocreateatleastapercentageofthelarge-scale

projectsrequiredtohostathletesandsportssupporters,forinstance,transport

infrastructurewhetherupgradedornovel.ThereasonisthatMega-eventsare

expectedtoproducefuturerevenuethroughamultipleeffect,i.e.thestimulationof

localcommercialactivityresultinginsignificantmediumtolong-termlocaleconomic

progress.Itisessentialtonotehoweverthatmegaprojects(e.g.,massivestadiums,

biggerhospitalitycapability,etc.)systematicallyencountercostoverruns(Flyvbjerget

al.2003;Altshuler,Luberoff2003)andareregularlynotusedanylongeroncethe

eventisconcluded.Forexamplearenewedroadsystemmaybeover-calibratedfor

habitualtrafficdrifts.Moreover,infrastructureneedsmaintenancethatmayturnout

tobealiabilityontheurbanbudget.

Moresignificantly,mega-eventsusuallyfailtodeliverthemassiveeconomicbonuses

projectedbypre-eventvaluations.Theexpectedcostsandbenefitsanalysis,often

craftedbyactivists,generallyattendtobeoffthescratch,asmostautonomous

researchillustrate.Whilethedirectinfluenceofmega-eventscanbeoutstanding,

involvingvastspectators,thenetimpactonrealeconomicvariables,e.g.,taxablesales,

employment,personalincome,hasbeensystematicallyoverestimated(Matheson,

2006).Certaineconomicsegments,inparticulartourism,takeadvantagesbutthe

multipleseffectswishedfortoadvancetheentireeconomyhaverarelyconcretized.

2.1.3Governanceissues

Theevaluationwhethertobidforamega-eventfostersessentialissuesforacityor

nation,becausealthoughtheyareusuallyofferedasservingthegeneralpublic,they

tendtoservetogroupsinterest.Itappearsparticularlysignificanttoweighthechoices

inemergingcountrieswherelimitedresourcesmightbebetterspentonproviding

fundamentalgoodsandservices.

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Whenthedecisionismade,arrangingamega-eventalsoraisesgovernanceissues.

Doesthecityhavethenecessarycompetencetogetthemega-eventofftheground?

Whowilltakecontrol?Howwillcoordinationbetweendifferentagenciesbeassured?

Ithasbeendetectedthatthereisaspecificmarket,madeupofcompaniesand

professionalsworkingattheinternationalscale,whichoffertheirassistancesand

knowledge.Thisslot,expertinshapinginternationalmegasportevents,oftenhas

closeconnectionstointernationalcommitteesandfederationsreliableforthebidding

processandmonitoringoftheevents(Surborgetal.2008).Beyondthesestrategic

players,firmsfocusedintourismandmediahaveanattentionininvestinginmega-

eventsastheycanperformancealeadingroleinguidingthechoiceofcorrelated

projectstobebuiltandalsothemannerinwhichtheyarefundedandimplemented.

Currentexperiencedisplaysthatprivateinterestsarelikelytodriveevent

administration,aconditionthatpresentsseriouschallengesforgovernments.Indeed,

thedistributionofspecialistanddecision-makingpowerfrompublicinstitutionsto

privateactorscannegativelydisturbresponsibilityandtransparency.Moreover,

becausetheplanningoflargescaleprojectsformega-sporteventsaresubjecttostrict

deadlines,theyusuallyinvolve“fast-track”decision-makingandimplementation

processes,inordertoensuretheaccomplishmentofprojectsintime.Theprocedure

canviolateoncivilrights,existingregulation,environmentalsustainabilityand

democracy.

Mediareportageandthetotalstudiesofmega-eventsshowthatsomeunitsare

ignoredfromtheeventandfromitseconomicimplicationsinalife-threatening

method:forinstance,theCommonwealthGamesinDelhiruntoconsiderable

dislocationofsusceptiblesectionsofthemunicipalpopulation,especiallythoseliving

inunofficialresidence.Apartfromproducinggreatuprisingandconflicts,itstopped

thesegroupsfromgettingadmissiontoeconomicprospectsproposedbytheGames

sincetheywererepositionedfarfromthecitycenter(Dupont,2011).Thissample

showedthatmega-eventsdonotautomaticallyworkasastimulusforpublicharmony

andglobaldevelopment,contrarytocommonbeliefandwidespreadexpectation.

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2.1.4Endorsementsforenrichingthepositiveeffectsofmega-events

Improveimpactevaluation:Carryoutacompletesocialandenvironmentalanalysis,

includingadetailedcost-benefitevaluation.Thesedatashouldbecollectedbefore

takingthedecisiontohosttheOlympicGamesoranymega-event.Furthermore,

autonomousexpertsknowledgeableaboutthelocalcontextshouldconductthe

analysisandarigorousassessmentshouldbedoneoncetheeventisover.

Leadingpublicconsultationthroughouttheprocess:Inordertoefficientlyimplement

thelistoftodothingstohostamega-event,publicconsultationshouldbeincluded

intotheprocess.Inthisway,thelarge-scaleprojectsarenotimplementedagainstthe

interestandwillofthelocalpopulation.

Supervision:Isimportanttohaveapublicsectorinvolvementinordertohavewide

regulatoryregimesandsupervisinginstruments,asimplementationmostlyreliesona

largeamountofprivateactors.

Post-eventadministration:Aplanexplainingthelongtermpreservationneedsofa

plannedmegaprojects,mustbesubmittedbytheorganizersatanearlystage,inorder

toguaranteeagreementwiththenationallegislation,includinglocalandurban

strategies,avoidingfuturetensiononthemunicipalbudget.

Economicsustainability:Mostmegaprojectsrequireprivateinvestment,butthepublic

sectorshouldlingerinthemanagementinordertoensureaccountability.

Nevertheless,publicsectorcommitmentshouldnotextendtoofferingsovereign

guaranteestolenders.Toreinforceprivatesectoraccountability,partnersshouldbe

involvedindesigningperformance-basedprojects(Flyvbjergetal.2003:109-10).

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2.2TheBidprocessfortheOlympicGames

TheIOC’SadvancingdevelopmentoftheOlympicMovementhasshapedthecurrent

bidprocess.TheIOCconstantlytriestoincreasetheavailableresourcesandrefinethe

prerequisitesforbidcitiestomaximizethebidexperienceandaspireforaneventof

superiorlevel.ParalleltheIOC’Sfruition;hostsandinnovativebiddershavelearnedto

shapethebidprocesstotheirlong-termbenefits,inparticularthroughurban

renovationinitiatives.Theearlystageofbidandthebidprocessitselfareconsidered

crucial,andtheguaranteesmadeduringthesestagesaremandatoryifacityis

selectedtohosttheGames.Inthisway,applicantcitiesarestronglyencouragedto

apprehendtherequestsofhostingtheGamesbeforebuildingpublicsupportforabid

andjoiningthefirststageoftheapplicationprocess.

Fig.2.1Manycountriesorganizetheirownnationalselectionprocesstoidentifyasinglecitytoenter

Phase1oftheIOCbidprocess.(Biddingfordevelopment,2014).

TheIOCsupportswhyitsplitsthebidprocedureintotwoperiodsasitsapproachof

pickingthemostfittingcitytohosttheGamesandmeetitsobligationtoguaranteea

positiveOlympicLegacy.JustasOlympicathletescontendinaseriesofqualifying

trials,citiesundertakeasimilarlycomplexrankingprocedurebasedontheircapacity

tocompletetheGames.Ineachstage,theApplicantandtheCandidate,theIOCtries

torecognizethemostsuitablecandidatestomoveonward.Althoughatieredbid

processcanputanimportantamountofstressoncompetingcities,itcanalsoactto

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putanedgetothefinancialburdenonbidderswhoarenotreadytoexecutethe

GamesCandidatureFee(Phase1,$150,000)andCandidatureFee(Phase2,$500,000)

(InternationalOlympicCommittee,2003).Thesefeesrepresentjustasmallpartofthe

costofpreparinganOlympicbid,whichcostabout$30million.Withineachbid,

budgetestimationmustbetakenintoconsiderationsincetheOrganizingCommittee

fortheOlympicGames(OCOG)budgetexcludesmilestoneitems.Significantexpenses,

suchastransportationservicesandinfrastructureareoverduetocitiesindependently

fromanythingenclosedorcontemplatedbytheIOC.Theseelementsmaybe

instrumentalinthesuccessoftheOlympicLegacy.Successfullyexecutingthestepsof

abidrequiresthatacityissustainedatanationallevelbybothpublicandprivate

resourcesdistinctlyfromOlympicsrelatedfunding.TheIOCdeliverstocandidatecities

instructionandpracticallearningopportunitiesthroughtheTransferofKnowledge

(TOK)program.SincetheOlympicGameStudyCommissionof2003,theIOChas

enlargeditseffortstoimproveGamesmanagingprocessthroughincreasedassistance

torepeatbidders.Hence,citiesponderingabidnowhavetochoicetotieontheIOC’s

planningandlearningmeans,manyofwhichspecificallyfocusonapplicationrequests.

Consequently,submissionscontinuetoriseinvaluefromyeartoyearintermsoftheir

acquiescencewithIOCinstructionsanddeadlines.

WitheachOlympiad,theIOCrestructurethebidprocessinordertoincorporate

valuablelessonlearned.AstheprocessdoesnotpromiseapositiveOlympicLegacy,

theIOC’snewassetsandnecessitiesareusedasstandardstoafruitfulbidandbuilding

blockforapositivelegacy.Resourcestobiddersareshowninthefollowingfigure.

36

Fig2.2TheIOChasintroducedavarietyoftoolsandresourcesforbidderstousethroughouteachphase

ofthebidprocess.(Biddingfordevelopment,2014).

Pre-bidresourcesincludeIOCkeystonesuchasOlympicLegacyguide,technical

manualsandOlympicCharter,whichmaybeusedthroughoutthebid.Further

37

resources;incorporatetheflagshipOOP(OlympicObserverProgram),whichallows

biddingcitiestohaveaglanceinsidetheexecutionoftheGames.

2.2.1ApplicationProcess

Thefirstphaseprovidesanopportunityforcitiestoassociatepoliticalsustenance,

accumulatefundsandinvolvewithresidentstostartaplantowardlong-term

infrastructureenhancement.Citieshavetoenunciatetheirresultingvisionon

transportationplaninadetailedbidbook,determiningtheplaninresponsetoa

sequenceofIOCenquiries.SubsequentlytheInvitationPhase,cities,whichdecidedto

bidforanOlympicGames,enterstotheofficialOlympicCandidatureProcess.This

coversaperiodoftwoyearsendingintheHostCityElectionbytheIOCSession.

Olympicschemahashighlightedtherequisiteforavariationinthecandidature

processinordertoadaptdistinctresultstomeetGamesrequirementswithindifferent

cities’background.Toenablethis,theIOChasplacedfurtheremphasison

sustainabilityandlegacy.Moreover,theIOC,throughthereviewofGames’needshas

approvedtoreinforcepositioningbetweenacity’slong-termextensionplansandthe

Games,qualifyingcitiestopursuitthepromotionofsustainableGamessolutionsand

realisticlong-termeffects.Throughtheoutliningofthecandidatureprocessasan

invitation,theIOCandNCOs/citieswillenterintoanegotiation.Thisongoingdialogue

andadvancedinformationinterchangewillbeunderpinnedbyperiodicopportunities

forcooperation,or,touchpointsbetweentheIOCandthecities.Througheachstage

theIOCdeliversassistancestoallcitiesembracingopportunitiestolearn,exclusive

workshopsandtransferofknowledge(OlympicGamesCandidatureProcess,2015).

OfficialproposalsbyCandidateCitieswillbethreeinlinewiththethreestagesofthe

processformingpartofauniqueprocess,whichpermitslabortomatureuntilitfilings

totheIOCtoalogicalseriesofmilestoneswithstagedanalysisbytheIOC.Eachtopic

willtackledifferentsectorsofthecities’bidintheperspectiveoftheinherenttypeof

eachcountry,regionandcity.Instage1and2theIOCEvaluationCommissionWorking

Groupwillexaminethedocumentationssubmittedandprovidearevisedversionto

38

theIOCExecutiveBoard.Succeedingstage3theIOCevaluationCommissionanalyses

thesubmissionandannouncesitsfinalreportfollowingavisittothelocationsofeach

city(OlympicGamesCandidatureProcess,2015).Aftereachbid,theIOCExecutive

boardwillconfirmthetransitionofthecitiestothenextstep.

Tosummarize,throughtheimplementationofOlympicAgenda2020theIOCandthe

OlympicMovementhavefoundedanopennesstodistinctiveGamesvalue

propositionsthatwilldelivergreatGamesforathletesmeetingalsothecity’svision,

heritageandsustainablegoals.

2.2.2LearningProspects–Stage1

Aftertheproclamation,theInternationalOlympicCommitteewillhosta

videoconferencefortheofficialcandidateCities.Thepurposeofthisvideoisto

provideinformation,tocandidatecities,withalltheimportantproceduretofollowin

ordertohaveaclearknowledgeabouttheOlympicCandidatureProcessand

highlightingtheimportanceforafairandequalcompetition.Thisphaseprovidesalso

thattheIOChostsadistinctworkshopforeachcandidatecitytodeliverinfoonVision,

GamesConceptandStrategywiththepurposeofbuildingasolidGamesalignedwith

thecityandregion’slong-termimprovementplan.

ThisphaseendsinthesubmissionbytheCandidateCitiesofthe“CandidatureFilePart

1”whichisthenanalyzedbytheIOCEvaluationCommission’sworkinggroup.TheIOC

EBconfirmsthecontinuationofeachCandidateCitytothenextstageoraddresses

specificchallengesaCitymayfaceandneedstoreevaluate.

2.2.3Governance,LegalandVenueFunding

TheIOCevaluationcommissioninthisstepwillreviewtheproposedgovernance

structures,politicalandlegalelements,privateandpublicsupportfortheprojectin

ordertoestablishthechallengesandopportunitiesrelatedtoeachproject.

39

2.2.4LearningProspects-Stage2

AfterhavingreviewedtheGovernance,LegalandVenuefunding,theIOCwillhosta

secondworkshopforthecandidatecitiesinrespecttothistopic.Atalaterstage,the

IOCwillhostanadditionalseminartoforwardindividualopiniontoeachcandidatecity

accordingtotheirstage1submissionandplans.

Atthispoint,citieswillalsoparticipatetotheOlympicGamesspectatorprogram,

whichisafundamentalelementoftheIOC’stransferofknowledgeandispartofthe

CandidateCitiesoveralllearningstrategies.Theobserverprogramisaimedat

providingtofuturecandidatecitiestheaccesstothebehindthescenesGames,in

ordertoacquireknowledgeontheevolutionandGamesprocess.

AttheendofthesecondstageCitieswillsubmittheircandidaturefilepart2tothe

IOC,whichwillbevalued,again,bytheEvaluationCommissionsWorkingGroup.The

EvaluationCommissionWorkingGroupwillprovideanupdatetotheIOCEBwhowill

announcethecitiestransitioningtothethirdandfinalstageoftheprocess(Olympic

CandidatureProcess,2015).

2.2.5GamesDelivery,ExperienceandVenueLegacy-Stage3

ThislaststepanalyseshowCandidateCitieswillensuretothegamesasustainable

legacy.

TheIOCEvaluationCommissionwillemphasisonexaminingtheGamesproceduresto

guaranteeanefficientdelivery.ItwillalsoreviewthelegacyschedulingandtheGames

involvementforallthestakeholders,withaglanceontheathleteexperiencetodefine

thechallengesandopportunitiesintheareasmentionedabove.Candidatecitieswill

submitduringthisphasethefinalfilesubmission,completingtheirfullprojectdossier.

TheIOCEvaluationCommissionwillcomeinitstotalitytoevaluatethedocumentation

presentedbythecitiesandcarryouton-siteexaminationofeachcandidatecity.The

commission’sresultswillbepublishedintheIOCEvaluationCommissionReportthat

willunderlinethechallengesandopportunitiesofeachcandidature.Thereportwillact

40

asacrucialassistancetotheIOCmemberswhenelectingtheHostCity.TheCandidate

CitieswillhavetheopportunitytopresenttotheIOCmembershipatthecandidatecity

briefingforIOCMembersandOlympicInternationalFederation(OlympicCandidature

Process,2015).Thisrepresentsachanceforboththecitiestoshow-casttheirprojects

andfortheIOCmembersandInternationalFederationtoaskquestionsandevaluate

thetechnicalaspectsofeachcandidature.

Lastly,duringtheHostCityElection,theCandidateCitieswillmakeafinalpresentation

totheIOCSessionandtheIOCsmembersvotebysecretballotandelectthehostcity.

Thenewlyelectedhostcity,thensignstheHostCityContractswiththeIOC.

2.2.6EvaluationCommission

ThetaskoftheEvaluationCommissionistoanalyzetheCities’CandidatureFile

Submissions.Thecommissionauthenticatestheinfogavebythecandidatecities,

studiesthepracticabilityofthesuggestedplans,determineseachcity’sabilityto

deliversuccessfulGamesandevaluateswhethertheGameswouldleaveapositive

legacythatmeetstheindividualneedsandlong-termdevelopmentplansofthe

respectivecityandregion.Tofosterandintensifyingtheanalysis,theEvaluation

CommissionvisitseachcityduringthethirdstageoftheOlympicCandidatureProcess

andpublishesitsreportthatstressesthetrialsandopportunitiespresentedbyeach

candidature,aswellasfocusingonthesustainabilityandlegacyproposalofeach

candidature.

2.3 CandidatureProcessOlympicGames2024

ThecandidatureprocessfortheOlympicGames2024iscurrentlyongoingandisthe

firstprocessgainingfromOlympicAgenda2020.TheIOChasgeneratedthestructure

foracandidatureprocess,whichtakesbenefitofacontinuinginterchangewith

candidatecities.

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FollowingtheInvitationPhaseduringwhichinterestedcitieshadthechancetolearn

moreabouthowtoplotGamesthatmeettherequirementsofthesociety,citieswhich

havedecidedtobidfortheOlympicGames2024entertheofficialCandidature

Process.Citiesaresustainedtobettershapetheirvalueproposition,discussing

proposalsandpotentialsolutionsthatwilldeliveroutstandingGames,without

bargainingthefieldfortheathletesandmeetingtheneedsofthecityandregionto

ensurethepositive,long-termandsustainablelegacy.Thisspansaperiodfrom15th

September2015to17thSeptember2017,whentheIOCSessionwillelectthehostcity

forthe2024Games.

Thecandidatureprocess2024iscomposedby3stages,asalreadymentionedabove,

(www.olympic.org):

Ø Stage1:Vision,GamesConceptandStrategy

Dates:15September2015–2June2016

Candidaturefilesubmission*:CandidatureFilePart1–17February2016

Ø Stage2:Governance,LegalandVenueFunding

Dates:2June–December2016(ExecutiveBoarddatetobeconfirmed)

Candidaturefilesubmission*:CandidatureFilepart2–7October2016

Ø Stage3:GamesDelivery,ExperienceandVenueLegacy

Dates:December2016–September2017ElectionbyIOCSession

Candidaturefilesubmission*:CandidaturefilePart3–3February2017

OlympicAgenda2020highlightstherequirementforthecandidatureprocessto

accommodatedifferentsolutionstomeetGamesneedswithindifferentcities’

contexts.Eachphasewilladdressdifferentcomponentsofthecities’proposalinthe

contextoftheinherentnatureofeachcountry,regionandcity.Aftersuchsubmission,

theIOCExecutiveBoardwillapprovethetransitionofthecitiestothenextstage.

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2.4CandidateCitiestothe2024Games

TheInternationalOlympicCommittee(IOC)announcedonSeptember15th2015,that

LosAngeles,Rome,Paris,BudapestandHamburgwouldparticipatetohosttheworld's

biggestsportingevent.ThewinnerwillbeannouncedaftervotingattheIOC's

conferenceinLima,Peru,inSeptember2017.Afterthecandidature,aseriesof

announcementfollowedastheCNNarticlereports:

"WearewelcomingfiveoutstandingandhighlyqualifiedCandidateCities"IOC

PresidentThomasBachsaidinastatement."OlympicAgenda2020hasshapedthe

CandidatureProcessmoreasaninvitationandthecitieshaverespondedbyengaging

withtheIOCthroughdialogueandcooperation."InthenewinvitationprocesstheIOC

learntthatallthecandidatesareembracingOlympicAgenda2020fromtheir

respectivevisionforthefutureoftheircity”.

TheIOCalsoannounceditwouldcontribute$1.7billionin"cashandservices"tothe

winningorganizingcommittee.

LosAngeles

LosAngelesreplacedBostoninJulyafterthecityfailedtoattractmajoritysupport

fromlocalresidents.LosAngeleshashostedtheGamestwicebefore,in1932and

1984.ThelasttimetheOlympicswerehostedonAmericanterritorywasinAtlantain

1996.TheU.S.OlympicCommitteethrewitsweightbehindLosAngelesafterlauding

an"environmentallysustainablebid"thatwouldtakeadvantagefrommanyexisting

venuesratherthanconstructingnewones.

Paris

TheFrenchcapitalcitywasthefavoritetowintheracetohostthe2012Gamesbefore

Londonwonit.Italsofailedwithbidsforthe1992and2008Olympicsandhashosted

twicehostedtheeventbefore,in1900and1924.

ShoulditbesuccessfulitwouldbecomeonlythesecondcitytohosttheGamesthree

times,alongsideLondon.

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Budapest

IftheHungariancapitalcitywillbesuccessfulitwouldbethesecondtimetheGames

hasbeenheldinEasternEurope,afterMoscowin1980.

IthasbidunsuccessfullyfortheOlympicsonfiveoccasions,thelastin1960.

Ofthe10mostsuccessfulmedal-winningcountriesinOlympicshistory,Hungarynever

hashostedtheGames.

Hamburg

TheGermancity'sparticipationcouldlastonlyafewmonths.Hamburgisholdinga

referendumonitsparticipationinNovemberandifitsresidentsvoteno,itwillpullout

oftherunning.ItisproposingacarbonneutralGamesandabudgetof€50million.The

lasttimeGermanyhostedtheOlympicswasin1972inMunich.

Rome

The"EternalCity"hashostedtheGamesonce,in1960.Ithadbeenintherunningto

hostthe2020Gamesbutwithdrewduetoeconomicdifficultiesinthecountry.Given

thecity'srichhistoryandagapofover50yearssinceitslastOlympics,itcouldhave

beenastrongcontender.

2.5 ThecandidatureofRome2024:Whatwerethekeypoints

ThemanifestusedforhostingtheOlympicGameswasbasedonshowingtheartofthe

Italianpillarstotietheworldthroughsport.Thevisionreliesonfamilyvaluesthat

Italiansholdandthewarmwelcomeandhighqualityexperiencethatisproposedtoall

visitorsthatcometoenjoythebeautyandtraditionalcultureofRomeandItaly.The

purposeisshowthepowerofsporttoconnectpeople,families,places,culturesand

faithsandwanttousetheOlympicandParalympicGamesasacatalysttoachieve

thesegoals,furnishingever-longmemoriesofpooledexperiencesfortheentirety.The

GamesConceptisguidedbythisvision,motivatedtorecreatethesenseofpride

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generatedbyhostingtheRome1960Gamesandthekeymilestonethatthis

representedinRome’sprogress.Theobjectiveistodevelopanewmilestonein

Rome’shistoryin2024,aturningpointintheforthegrowthofthecity,forfutureuse

andasanincentivetoimprovethequalityoflifeforallRomanresidents.Italywantsto

demonstratetotheworldthatcanachieveitsgoalsbyhostinghighlyprosperous

majorevents,suchastheRome1960OlympicGamesandtheMilanWorldExpo2015.

Theseaspirationsarealsoinlinewiththelongtermplansforthedevelopmentof

RomeandwiththeOlympicAgenda2020.TheItalianconceptoftheGamescanbe

summarizedinthefigurebelow.

Figure2.3:RomaCandidateCityOlympics2024.(Candidaturefilestage1:Vision,GamesConceptand

Strategy,2015)

Exploringthesepointitcanbepossibletoobservehowthedifferentpointsarefaced.

Ø Culture,Lifestyle&Landscapes–Linkingthedifferentcommunitiesandbeliefs

ofRome,encouragingallvisitors,betheyathletes,spectators,officialsorthe

media,to‘experiencelifetheItalianway’,throughahighqualitycelebrationof

sport,inauniqueoutdoorscenery(Candidaturefile–Stage1:Vision,Games

ConceptandStrategy).Thiswillincorporatesupportingsocialinteraction,using

Rome’surbanparksandsquares,astheartoftheItalianwelcomeandlifestyle

tooltodevelopcommunityspiritacrossthewholetocreateasenseof

uniformitytotheworldthroughsport,Romeanditslocalpopulation.This

45

eventisalsoseenasachancetorenovatethecity’sinfrastructureandenhance

thequalityoflifeforRome’scitizens.Thesedevelopments,whichfitperfectly

withtheOlympicAgenda2020values,willbenefitbothcitizensandvisitors,

leadingtobringRomemorereachable,enjoyable,sustainableandevenmore

spectacular.

Ø Families–Usingfamilyvaluesandconceptstocreateatrulycelebratory

atmosphereanddeliverwidersocialopportunitiestotie,notonlyItalians,but

alsoplayers,touristsandtheOlympicFamily.Contestantswillcelebratewith

theirbelovedandwillhavethechancetomeetandexploreRomeandItaly

together.TheGamesrelatedprogramswouldhelptosurroundthesecultural

valueswithintheframeofamorecompletesociety,endorsingcommunication

acrossgenerations.

Ø Tradition&Innovation/Technology–CombiningRome’stradition,beautyand

heritagewithnewconceptsandinnovationtodeliveraforwardthinkingGames

concept,inourevergrowingtechnologicalworld.Rome’sGameswillshowthe

historyandheritageofsport,inamodernandextensiveway.Incorporating

revolutionaryideasanduseItaly’stechnologicalknow-how,astheyalreadydid

withthe1960Games,asthefirstOlympicGamestobebroadcast

internationallyandusetechnologysuchasslowmotionreplays.Theproposalis

foratriumphantparadeofmedalwinnersatGames-time,forthefirsttime,in

theamazingnight-timesceneryoftheColiseum,thesiteofmanyhistorical

competitionsandpublicshows,itwouldrepresentauniqueexampleofhow

mergingtraditionandinnovation.

ThereareaseriesofobjectivesthatItalianrepresentativewantstoreachbyhosting

theOlympicGames(CandidatureFilestage1:Vision,GamesConceptandStrategy,

2015).

Objective1:Createaconnectionwithpeople,notonlylimitedtothecitythatwill

46

hosttheGames,butatnationalandinternationallevel.Thepurposeistodeliveran

outstandingexperienceforathletesandspectatorscreatinglong-termmemoriesthat

aregoingtobuildtheOlympichistory.Thiswilltakeplaceinprofounderand

noteworthylegacies,incorporatingpride,honorandexcitementforthebenefitsthat

couldthiseventgivetothecityandtothecountry.

Objective2:BuildnewOlympicGamesonthelegacyofRome1960,usingthenational

traditiontostimulatenewgenerationandstrengthensocietythroughsports.

Celebrateandencourageparticipationinsportanddelivermoresporting

opportunitiesandundertakings.ThesebenefitstoItaliansportinclude:

Ø Renewedandnewsportinglocations

Ø Peopleofallagestakingpartinsportandfeelingthehealthandpersonalbenefitof

anactivehealthylifestyle

Ø Moreefficienttalentidentificationtohelpmoreyoungersachievetheirsporting

goals

Ø Moreeliteathletesachievingsuccessontheworldstageandactingasrolemodels

foryoungpeople.

Objective3:Createinteractionswithgroups,familiesandsocietyandimprovethe

qualityoflifeforRomanandItaliancitizens.TheGameswillbeusedasaninstrument

topromotegreatersocialinclusionandrespectthenexttogetherofdifferentcultures,

beliefsandreligions,forthelong-standingbenefitofsociety.Someoftheinitiatives

include:

Ø Familyfriendlyprogramsandnotionsre-establishingtheimportanceoffamily

valueswithinItaliansociety

Ø OlympicandParalympiceducationprograms,before,duringandfollowingthe

Games,providingalegacytoRomeandItaliansport,educationandsociety,aswellas

theOlympicMovement

Ø Greaterpromotionandawarenessofthebenefitsofactivehealthylifestylesto

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augmenthealthandwellbeing

Objective4:Improvecity’sinfrastructureandlivingenvironmenttocreateamore

accessibleandsustainablecity.Bycompletingthisitispossibletoreachabetter

qualitylifestandardforcitizens,inrespectfortheRome’shistoricalenvironment.

Someofthebenefitsinclude:

Ø ConnectivitybetweenRome’sdistricts,withimprovedtransportconnections

Ø Theadoptionofnewsustainabilitystandardsandtransparentbestpractice

constructionprocesses

Ø Amoreaccessible,inclusivecity,providingimprovementsnotonlyforpeoplewith

disabilities,butalsoforeveryone,allowingvisitorstogetaroundandenjoythecity

easily.

Objective5:IncorporateinnovationandtechnologyintoallGames-relatedplanning

andprogramstodeliveroutcomesofthehighestquality.Rome2024planistouse

technologyandinnovationpositioningasthelargestmanufacturingcountryinEurope.

WorkingwithsomeoftheItalians‘hi-techclusters’,allowsnotonlyshapingthebidbut

alsoexploitingtheopportunitiesthatbiddingforandhostingtheGamescanbringand

theresultantbenefitstobedelivered.Newideasandinnovationswillbepromoted,

enhancingRome’spositionasahubforcreativity,throughengagementswith

universities,newbusinesses,aswellassportsrelatedresearchprojectsinthe

technologysector.Thiswillinclude:

Ø Continuationofthe#LabRoma2024(innovationecosystemnetwork)initiative,

introducedintheCandidaturephase,tobuildonRome’spositionasanincubatorhub

fornewbusiness.

Ø DevelopingtheresearchcapabilitiesatTorVergataUniversityaspartoftheGames

legacyplansthroughadditionalstructureandresearchprograms,involvingmore

youngpeopleandstudents.

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Uniqueiconicsettingsforsport

IncorporatingRome’siconicancientterritoriesintothevenueplanningprovidean

inspirationalsettinganduniquebackdropformoderndaysport,whilstdelivering

spectacularimagesofRomeanditsheritageacrosstheworld.Forexample,Beach

VolleyballwillbehostedintheancientfootprintoftheCircoMassimo;RoadCycling

willfinishandtheMarathonwillstartinfrontoftheColiseumandrunbesidethe

RomanForumwheretheArcheryFinalswilltakeplace.Thisconceptalsoseeksto

preserveasmanyvenuesaspossiblewithinRome’sexistingurbanareas,toreduce

traveltimesandgenerateaspecialGames-timeatmosphere(CandidatureFilestage1:

Vision,GamesConceptandStrategy,2015).

Sustainablevenueconcept

InordertobesustainabletheprojectaimingatshowcasethelegacyoftheRome1960

OlympicandParalympicGamesbyusingthesevenuesoverin2024,avoidingfurther

constructionplans.Forexample,theForoItalicohasbeeninusesince1932andwill

provideauniquebackdropfortheAquaticsevents(CandidatureFilestage1:Vision,

GamesConceptandStrategy,2015).Incollaborationwiththeuseofothercurrent

venues,thisprovidesamuchmoresustainableandfiscallyresponsibleapproach,with

theaddedbenefitoflessimpactontheenvironment.Games-timeexperienceforall

RomeandItaly’swell-developedtourismofferwillallowallvisitors,includingathletes,

tofullyimmersethemselvesintotheItalianculture.OpportunitiestoenjoytheItalian

lifestylewillbewovenintotheoperationalconceptsandGames-timeexperiences,

usingRome’sbeautifulparksandheritagesites.Inparticular,focusingonfamiliesand

familyvalueswillprovideopportunitiesforathletes,visitorsandcitizenstocelebrate

withtheirlovedones,throughconceptssuchasfamilyareasinLiveSites,family

focusedcityactivities,ticketing/tourismoffersandtheinnovativeAthlete’sParade,

enhancingRome’slong-termdevelopmentplans.Finallyandmostimportantly,Rome’s

plansforhostingtheGamesarebasedonaconceptofresponsible,feasiblestrategic

investmentandgrowth,fortheeconomyofRomeandItaly,inlinewiththeOlympic

Agenda2020.Theobjectiveistoharnesstheexistinginvestmentandgrowthstrategy

49

forRome,rushingandtransformingthecitytoenhancethequalityoflifeforfuture

citizensandvisitors.

Legacyandlong-termplanintegrationandalignment

Italiancitiesarenotrequiredtopresentalong-termdevelopmentplan.However,

Romehascompletedthisplan.InOctober2008,thecityofRomearrangedaSpecial

Commissionforthefutureofthecity,outliningthestrategicdirection.Itcameupfive

“ambitions”and14“objectives”(Candidaturefilestage1:Vision,Conceptand

Strategy,2015):

Ø AmbitionI:Romeasapolycentriccity

Ø AmbitionII:Romeasacityofknowledgeandlearning

Ø AmbitionIII:Romeasacityoftourism,entertainmentandleisureeconomy

Ø AmbitionVI:Romeascohesiveandunitedcity

Ø AmbitionV:Romeascompetitiveinternationalcity

Theambitionsandobjectivewerethenrevisitedandapprovedin2011,withfourmain

“images”ofthecityan12underlying“objectives”asshownbelow:

Figure2.3StrategicDevelopmentPlanforthecityofRome,2011.Source:(Candidaturefile

stage1:Vision,ConceptandStrategy,2015).

TheSDP(StrategicDevelopmentPlan)gavespecialattentiontosport,toimprovein

thiswaytheimageofthecityandthecountry,givingastrongcontributiontolocaland

50

nationaleconomicgrowth.DespitetheItaliangovernmentdecidedtowithdrawthe

OlympicCandidaturein2012duetotheeconomiccrisistheSDPidentifiedthathosting

theOlympicGameswouldbe“anacceleratorforthedevelopmentprocessesand

projectsalreadydefinedintheSDP,inordertoanticipatenewinfrastructuresand

servicesinvestmentsalreadyplannedandpartiallyfinanced”.

In2013,anewstrategicplanningaimedatoutlining“The2025UrbanAgendaforthe

cityofRome”waslaunched.Theprimaryobjectivesofthisplanwere:

Ø Easetheplanningandaccessibilitytofinancialresources

Ø PromoteprojectsforUrbanregeneration

Ø Attractinvestmentsforinnovativeprojectstoreinforcethecity’s

competitiveness

Ø Keepcitizensupdatedabouttheoutcomesofthetransformativeprojectsof

thecity

Thefourmainpillarstosupportthisurbandevelopmentstrategyareshownbelow

Figure2.4UrbanAgenda2025forthecityofRomeSource:(Candidaturefilestage1:Vision,

ConceptandStrategy,2015).

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DespitetheAgendaUrbanahasnotbeenapprovedbythecitycouncil,dueto

governancechanges,thereareseveralelementswhichhavebeenusedtoinformthe

developmentoftheRome2024visionandrationale,suchas:

Ø Focusonsustainabledevelopmenttopromotebalancebetweeneconomic,

social,innovative,environmentalandculturalheritage

Ø Sportandcultureasapriorityforthecitydevelopment

Ø Mobilizelocaleconomy,socialresourcesandreinforcecohesion

2.6BenefitsfrombiddingfortheOlympicGames

TheRomebidfortheOlympicGamesof2024isalreadyassistingasanincentivefor

improvement,byendorsingandprioritizinganumberofurbanfacilitiesand

environmentalmissionsthatwillaugmentthequalityoflifeforallcitizens.Biddingfor

theGamesscratchesaturningpointintheItalianeconomythatwillhelptofosterand

mergesupportacrossItaly,throughouttheeffectiveengagementofallregions.Other

benefitstobedeliveredfrombiddingfortheGamesinclude(Candidaturefilestage1:

Vision,ConceptandStrategy,2015):

Ø NoteworthysocialbenefitsfromtheOlympicEducationProgramwhichhas

alreadybegan,providinga‘digitalkit’tonationalschoolstopromotethe

Olympicvalues

Ø Enhancingthecommunicationbetweenagencies,governmentdepartments

andotherbodiesbothwithinthecity,cityandregion,andnationally

Ø Networkswithnongovernmentorganizations,forexample,atwoyearbid

programhasbeenestablishedwithActionAidtousesportasatooltointegrate

youngpeoplefromdifferentcultures,beliefsandbackgrounds

Ø Promotingandrenewinginterestinsport,particularlybyyoungpeople,

studentsandtargetgroups,specificallyengagedduringthebiddingprocessas

partofthe#wewantromacampaign

Ø Promotinginnovationandinterestthroughthe‘#LabRoma2024’campaign

whichisencouraging‘younginnovators’tocomeupwithideasandproposals

toaddressmoderndaychallenges

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Ø Promotingactiveparticipationandinvolvementoflocalcommunitiesinthe

planningandredevelopmentoflocalareassurroundingGamesvenues

Ø ImprovedaccessibilityandawarenessofPara-sportthroughinfrastructure

projectsandeducationprogram

2.7BenefitsofhostingtheOlympicGames

Thebenefitsofbiddingwillbebroadeningboostedanddevelopedbyhostingthe

OlympicGames,asemphasizedbelowusingtheIOC’sLegacyframework.

Socialdevelopmentthroughsport

Thesocialandeducationalprogramduringthecandidatureprocesswillpositively

impactonItalian’syoungpeople,assimilatingandabsorbingthemthroughOlympic

sportanditsideals.TheGamesvolunteeringprogram,youngleadersandother

education-relatedprojectswouldalsooperateasaplatformforsocialandpersonal

growthpromotingsocialinteractionforanenhancedqualityoflife.

Economicdevelopmentandgovernance

TheeconomicimpactanalysispredictssignificantbenefitsfromhostingtheGames.By

augmentingthesebenefitsthroughgovernanceandforward-thinkingleadership,

engagingwithbusinesscommunitiesandtourismbodiesacrossItaly,ispossibleto

promotethemanyprospectsthathostingtheGameswillproduce.

Cultureandidentity

ShowcasingRomeandItaly’snationalcultureanduniqueheritageareafundamental

partofRome’svisionforhostingtheGames.TheGameswillactasastimulusto

inspiremoreculturalandcreativeactivity.TheywillalsoleadtoplaceRomeasacity

that,whilstrockedinhistory,takingamodernandinnovativeapproachtonew

challenges,providingnewimpetusintheareasoftalent,businessandinnovation.The

GameswillhaveanenduringimpactonRomanandItalianpeople,asitproducesa

greatsenseofprideandcommunitycohesion.

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Naturalenvironmentenhancement

EnvironmentalenhanceswillprovidesignificantimprovementstoRome’snatural

environmentincludingthedevelopmentofnew‘open’spacestoenjoythecity’srich

culture;respectandraiseawarenessofenvironmentallysensitiveareas;andthe

creationofamoreliveableandenjoyableoutdoorlifestyle,forwhichItalyis

renowned.

Infrastructureandurbanimprovement

Cityinfrastructureprojectswillgreatlyenhancethequalityoflifeforallresidentsand

visitors.UpgradingRome’stransportationsystemwillpromotepublictransportand

reducetheuseofcars,furtheraidingtheenvironment.Upgradedhotel

accommodationandareasaroundhistoricsiteswillmaintainthecity’sreputationas

aninternationaltourismdestination.

Conclusion

Althoughthereareseveralstudiesanddocumentsthatcertifiesthepositiveoutcomes

forhostingtheOlympicGames,therearealsoobstacles,issuesandpeople

representingtheRomangovernancethatarenotapprovingtheCandidatureofRome

forthe2024Games.Infact,lastOctober11thRomewithdrewitsCandidature.

Inthefinalsection,wewillgothroughthereasonsofthischoiceandwewillsee

similarexamplesofothercitiesthatwithdrewtheircandidaturepastyearsandthe

motivationthatledtomakethisdecision.Furthermore,wewillanalyzehowsuccessful

outcomesareusedtotransferknowledgefromcitytocityforfurtherMega-sport

events.

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CHAPTERIII:OUTCOMESFROMHOSTINGOLYMPICGAMESANDHOWKNOWLEDGEISSHAREDAMONGHOSTINGCITIES

InthisfinalchapterwewillgothroughthewithdrawofthecandidatureofRomefrom

theOlympicGamesof2024,analyzingthereasonsthathaveledtomakesuch

decision,goingforwardwiththemostcommonproblemthatdoesnotallowcitiesto

goingfurtherwiththeircandidature:costoverrun.Then,wewillseehowknowledgeis

sharedandcouldbebetterimplementedamonghostingcities,reportingvarious

examplesandstatisticstosustainthisthesis.Continuingwiththeexplorationofthe

impactsoftheGamesoncommunitiessuchassocio-economic,socio-cultural,physical

andpoliticalimpact,closingwiththerecommendation,studiedfromdifferentauthors,

forthepathaheadinordertoavoidpreviousmistakesandbuildamoresustainable

andwell-definedperformance.

3.1Romewithdrawfromthe2024GamesOnOctober11th2016VirginiaRaggi,MayorofRome,duringapressconference

withdrewthecandidatureofRomefromtheOlympicsin2024.Thereareseveral

reasonsthathaveledtomakethisdecision.TheMayorsaid:“Isirresponsiblesaying

yestothiscandidature”continuing“Wedidnotchangedourmind,westrengthened

ourposition”,ongoing“Wewereaskedtocarryonmoredebts,wecannotafford

that”(www.repubblica.it).TheMayorexplainedthattheyarestillpayingdebtsforthe

expropriationofthegamesheldinRomein1960.TheyhavenothingagainstOlympics

andsportsingeneral,buttheirwillingnessistousesportnotjustasanexcusefora

newinefficientspendingforthecityofRome;therearealotofpromisesdoneduring

theOlympics,butpeopleshouldtakeintoaccounttheseveralstructuresbuiltthatare

nowunused,suchastheinfrastructuresfortheWorldAquatics.

ThepositionoftheMayorisclear,hostinganeventsuchastheOlympicswillincurin

costoverrunsmeaningthetransformationofthiscostsinliabilitiesforthecity,its

citizensandespeciallyfortheinfrastructuresthathavetobebuiltinordertobe

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suitableforholdingtheGameswithouttheguaranteetousetheseappropriatelyafter

theevent.

Ontheotherside,GiovanniMalagò,presidentoftheINOC(ItalianNationalOlympic

Committee)stronglydisagreewiththedecisionmadebyVirginiaRaggi.Hesupported

theimportanceofthiscandidatureasachanceofredemptionforthecityRome.He

underlinedtheessentialelementsthatcouldhelpthecityofRometoimprovepublic

transportation,publicinfrastructuresandcreatenewjobpositions.Theserepresentsa

bunchoffundamentalsthatcouldbeconsideredafirststepinordertodevelopthe

eternalcity,justliketheOlympicsheldin1992contributedtothecityofBarcelonain

givingbirthtonewcityareas.Tostrengthenhisposition,thepresidentoftheINOC,

referstosomeofthekeypointslistedbyAgenda2020(www.Olympics.org):

Ø Changestothebiddingprocess,newwaytoinvitecandidatecitiestopresenta

projectthatsuitstheirsporting,social,economicandenvironmentallong-term

planningneeds.

Ø Reducingbiddingcostsbyreducingthenumberofpresentationallowedand

providingasignificantfinancialcontributionfromtheIOC.

Ø Organizationofsportsandeventsoutsidethehostcityandeven,inexceptional

cases,outsidethehostcountry,alwaysrespectingtheintegrityoftheOlympic

Village.

Ø Adaptingandfurtherstrengtheningtheprinciplesofgoodgovernanceand

ethicstochangingdemands.EnsuringcompliancewiththeBasicUniversal

PrinciplesofGoodGovernanceandtransparencyofaccounts,withtheIOC’s

financialstatementstobepreparedandauditedaccordingtotheInternational

FinancialReportingStandards(IFRS).

LastOctober11th2016,GiovanniMalagògaveuponhisconflictwiththedecision

madebytheMayor,deliveringtotheIOCtheletterthatcertifiesthewithdrawof

Romefromthe2024Games.

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Theconcernsaboutcostandcostoverrunareverycommonbetweencandidatecities,

andthesearethemainreasonsthatleadcitiestogiveuptotheircandidature.

3.2CostandcostoverrunattheGames

SincethedevelopmentofthemodernOlympicsin1986attentiontocostandcost

overrunoftheGameshasbeenraised.BaronPierredeCoubertin,themanresponsible

forthemodernGames,referredto“theoftenexaggeratedexpensesincurredforthe

mostrecentOlympiads”(Coubertin,1911).

CostforhostingtheGamesfallintothreecategories,establishedbytheIOC:

1. OperationalcostdeservedbytheOrganizingCommitteeforthepurposeofhosting

theGames.Technology,workforce,transportationrepresentthevastmajorityofthis

clusterandadministrationcosts.Othercostsincludesecurity,medicalservicesand

ceremoniesservices.

2. Directcapitalcostincurredbythehostcountryorcityorprivateinvestorstobuild

theOlympicVillages,mediaandpresscenterandthecompetitionvenuesrequiredto

hosttheGames.

3. Indirectcapitalcostssuchasforroad,airportorinfrastructures,rail,hotelorother

businessinvestmentnecessaryfortheGamesbutnotdirectlyrelatedtostagingthe

Games.

ThefirsttworepresentsthecostsrelatedtothesportsoftheGames;thelastone

representstheindirectcostsrelatedtotheGamesandgettingdataabouttheseisso

difficultandtheyarerare,duetothearbitrariness.Regularly,theindirectcostsare

higherthanthedirectones.BaadeandMatheson(TheOxfordOlympicStudy,2016)

foundthatforsevenGamesforwhichtheycouldobtaindataforbothsports

infrastructureandgeneralinfrastructure,inallcaseswasthecostofgeneral

infrastructurewashigherthanthecostofsportinfrastructure,sometimesseveral

higher.

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InthefollowingtableareshowntheoutturncostsrelatedtosportsoftheOlympic

Games1960-2016mergedwiththenumberofathletesandeventsforeachGame.

Table3.1:Actualoutturnsports-relatedcostsoftheOlympicGames1960-2016,in2015USD

Source:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.

TheabovetableshowsthatthemostexpensiveSummerGamesheldareLondon2012

atUSD15.0billionandBarcelona1992atUSD9.7billion.Sochi2014andTorino2006

arethemostexpensivefortheWinterGameswithUSD21.9billionfortheformerand

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USD4.4billionforthelatter.TheleastexpensiveSummerGamesisTokyo1964with

USD212million,fortheWinterGamesInnsbruck1964withUSD22million;not

consideringurbanandtransportationinfrastructurescoststhatrepresentsa

substantialnumber.

FurtherobservingOlympicscostoverrun,basedonthedataquotedoverhead:

Ø AllGames,withoutexceptionpresentcostsoverrun.Basedonstatistics10-20

percentofmegaeventsandmegaprojectsingeneralcomeinorunderbudget.

Thebudgetisthelimitestablished,intermsofmoney,tobespentonaproject.

ForwhatitconcerntheOlympicsthepercentageiszero.RegardingtheGamesthis

limitisconstantlyoverspent,evenifeachbudgetisestablishedwithlegal

requirementsfromhostcity,countryandgovernmenttoguaranteethattheywill

coverthecostsoverrun.Theagreementcanbecomparedtoablankcheckforthe

event,withthecertaintythatthecostwillbehigherthanithasbeenquoted

above.

Ø TheGameshavethehighestaveragecostoverrunofanytypeofmegaproject,at

156percentinrealtimes.Flyvebjergetal.(2002)foundaveragecostoverrunsin

majortransportationprojectsof20percentofroads,34percentforlargebridges

andtunnels,and45percentforrail,Ansaretal.(2014)found90percentoverrun

megadams;andBudzierandFlyvebjerg(2011)107percentformajorITprojects,

allinrealterms.Thetablebelowwillsummarizethesepercentages:

Table3.2TheOlympicGameshavethelargestcostoverrunofanytypeoflarge-scaleproject,realterms

Source:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.

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Theelevatedcostoverruncouldbeboundedtothestrictdeadlineforprojects

delivery:theopeningcannotbemoved.Hence,whenproblemscomes-upisnot

possibletohavethechoiceamongcostandschedule,asisusualforother

megaprojects.Allthatmanagerscandoiscoverproblemswithmoremoney,whichis

whathappens.

Ø ThecombinationofGamescostoverrunandoutliersshouldbeconsideredby

anyonewhoisintentionedinhostingtheGames,inparticularsmallandfragile

economiesthatcannotaffordescalatingcostsandrelateddebts.Evenponderinga

slightriskofa50percentcostoverrunonamulti-billionprojectshouldconcern

governmentexecutivesandtaxpayerswhenaguaranteetocovercostoverrunis

imposed,becausesuchoverrunmayhavefiscalimplicationfordecadestocome,

ashappenedinMontrealwhereittook30yearstopayoffthedebtincurredby

the720percentcostoverrunonthe1976SummerGames(Vigor,Mean,andTims

2004:18).SimilarsituationtookplaceinAthens2004,whereOlympiccost

overruns;andthedebtworsenthe2007-2016economicandfinancialcrisis.

3.3TheefficiencyoftheOlympicGamesKnowledgeManagementProgram:Has

costoverrunslowdownovertime?

Asstatedabove,thereasonwhyOlympicGamesholdtherecordofcostoverrunis

thatthestrategy,asbiddingsmovesfromnationtonationandcitytocity,forcehosts

intotheroleofeternalbeginners.During90’stheIOCstartedtoseemoreefficientthe

knowledgetransferbetweenhostcitiesthatmightbeaffectedbythe“eternal

beginner”syndrome(TheOxfordOlympicStudy2016).Sincethattime,thecommittee

initiatesanewprogramcalledthe“OlympicGamesKnowledgeManagement

Program”,whichisaimedatimprovingtheefficiencyindeliveringtheGameshaving

newhostcitiesandnationslearnfromthepreviousones.Themaincharacteristicsof

thisprogramareaplatformofstoredknowledgeandservicesthathostscanresortto,

andaprogramtohaveabunchofpeopleaccountableforfutureGamesparticipateas

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traineesandobserveratpreviousones.Comparabletoallknowledge-transfer

programsingeneral,theaimofthisprogramistofacilitateandsupportlearningacross

cities.AsSchön(1994:69)observed,learningcanonlybesaidtotakeplaceif

performancesimproveovertime.“Performancethatdeteriorates,regresses,or

merelyswingsfromonmodeofactiontoanotherdoesnotqualifyaslearning,”

accordingtoSchön.Speakingaboutcosts,theimprovementswouldtakeplaceinthe

reductionofcostrisk–i.e.costoverrun–overtime.Ifdatashowsadecreaseofcosts,

theysupportthattheOlympicsGamesKnowledgeManagementProgramworks.

Theprogramquotedaheadwasfirstimplementedin1990’sinpreparingforthe

Sydney2000SummerGamesandhasbeenusedsincethen.Inthefollowingtableis

possibletocomparecostoverrunbeforeandaftertheuseoftheprogramin1999.

Table3.3:Sport-relatedcostoverrunintheGamespre-1999andpost-1999,realterms.Thedifference

isstatisticallysignificant(p=0.0101).Source:TheOxfordOlympicStudy2016:CostandCostOverrunat

theGames,2016.

Forthefirstfewyearsafter1999itwasimpossibletodothecomparison,duetothe

factthattheprogramwasshortwhilelaunchedandtheGamestakeplaceeverytwo

years,soobserversweretoofew.

Asthetableshows,costrisksseemtohavecomedownafterthepromotionofthe

OlympicGamesKnowledgeManagementProgram.

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3.4 TheimpactsofOlympicGamesoncommunities

Theimpactofmegasportingeventsonthehostcityorregioncanbemassiveand

various,andagreatpartoftherelevantliteraturesupportstheideathatsuchevents

canmainlygenerateoptimisticresults.Whethermega-sportingeventscansurely

producesuchoutcomes,still,hasbeenunderdebatebyseveralauthors.Theimpacts

ofmega-sportingeventsaredividedinfourcategories:socio-economicimpact,socio-

culturalimpacts,physicalimpactsandpoliticalimpacts.

3.4.1Socio-economicimpact

Themostimportantreasonforhostingamegasporteventforacityisthepositive

outcomethatthisonecouldhaveonthelocaleconomy,whichcanimprovealsothe

statusofthehostsociety.AccordingtoCrompton(1995)“theeconomicimpactofan

eventcanbedefinedastheneteconomicchangeinthehostcommunitythatresults

fromspendingattributedtotheevent”.Inthiswayitisnecessarytounderstandthat

thedirectincomeofamega-sportingevent,fromsourcesliketicketsales,sponsorship

ortelevisionrightsdoesnotcontributetotheeconomicdevelopmentofthehost

community,sincesuchincomeusuallycoversthecostfororganizingtheeventitself.

Theeconomicsupportofmegasportingeventsismainlyrelatedtothechancesthey

provideinincreasingawarenessoftheregionasatourismdestinationandthe

familiarityconcerningthepotentialforinvestmentandcommercialactivitiesinthe

region.Hence,theycaninterestmorevisitorsandinvestment,andconsequently

createnewjobsandcontributetothecommunityeconomicgrowth.Takinginto

considerationtheissueofjobcreation,indisputablyamegasporteventcangeneratea

hugenumberofjobs,notonlyforthoseassociatedwiththeeventitself,butalso

relatedwiththetourismfieldandretailindustryduetotheincreasedvolumesof

spectatorsandtouristthatwouldbepresent,andintheconstructionindustry,

especiallywhenthestagingoftheeventsrequiresmajorinfrastructuraldevelopment,

suchasthecaseoftheOlympicGames.Forexample,whenBarcelonahostedthe

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OlympicGamesin1992,fromOctober1986toJuly1992theunemploymentratefell

from18.4%to9.6%(Brunet,1995).Although,itcouldseemapositiveimpact,ithasto

betakenintoaccountthatthestagingofmega-sportingeventsgeneratesnewjob,but

aglanceshouldbegivenonthequalityandthedurationofthesejobs.AsSchimmel

pointsout“sportingeventscreateservicerelatedjobswhichareoftenpart-timeor

lower-paying”.

Whenthesocio-economicimpactofamega-sportingeventisevaluatedithastobe

takenintoaccountanumberofessentialconsiderations.First,theimportanceof

whetherthehostcityaccomplishestousetheone-timeeconomicimpulseofsuch

eventtochangeitsstructureinawaythatwillprovideaself-sustainingprocess

trough:industrialestablishment,long-lastingtourismorneweconomicrelation

betweencountriesorregions.Second,ithastobeunderstoodthatthedegreeofthe

advantageforthewholeeconomyreliesontheeconomicsituationofthecityand

whenotherinvestmentsrelatedtotheeventareachieved.Aphaseinwhichthereare

increasinginvestmentsactivitiesandincreasingconsumptionexpenditureinlinewith

aneconomicturnaroundmayreducetheeconomicbenefits.Ontheotherhand,if

expendituresmadeduringtheeventaresubjecttoaneconomicrecessionthesewill

beconsiderablyreinforced.

3.4.2Socio-culturalimpact

Megasportingeventarenotonlyasporting-festivity,theyprovidealsosocio-cultural

benefitsforthehostregion.Olympics,forexample,canincreasethelocalinterestand

participationinsportingactivities,andalso,strengthenregionaltraditionsandvalues,

increaselocalprideandcommunityspirit.Increasedsportparticipationcanmakea

significantcontributiontothequalityoflifeofboththeindividualandcommunity.

Hooper(2001)argued“increasedsportparticipationprovidesasenseofwell-being

throughfunandenjoyment,leadingtoself-fulfillmentandachievement,and

encouragessocialinteractionandcohesionforthosewhomayfeelsociallyexcluded”.

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Consequently,hostingmegasporteventscandeliverlocalitieswithanoccasionto

produceworldacknowledgmentandsupporttheirlocalprideandcommunitysoul.

3.4.3Physicalimpacts

Mega-sportingeventscreatealsochancesfortheerectionofnewsportingfacilitiesas

wellastheimprovementofthematerialbackgroundofthehostcity.Thepresentation

ofmega-sportingeventssuchastheOlympicsregularlyinvolvethebuildingofnew

sportingamenitiesortherestructuringoftheexistingonesinordertoarrangethem

forhostingthemultiplesportsinashortperiodoftime.Furthermore,thehuge

numbersofmembersaswellastouristrelatedwiththeeventusuallyrequirethe

constructionofnewhighwaysandthedevelopmentofthepublictransportnetworkto

ensuretheirefficienttransportationtothesportinglocationduringtheevent.In

addition,infrastructuraldevelopmentthatisnotdirectlyrelatedwiththeeventoften

takeplace,suchasfacilities,commercialcentersandopenspaces,whichaimto

improvethephysicalappearanceonthehostcityorregion.Thus,ithasbecome

graduallyusualformega-sportingeventstobeusedasaquickmeanforsignificant

urbanenhancement.Forexample,the2000SydneyOlympicGamescontinuedthe

themeofmajorurbanchange;theorganizersspentA$1.7billionsontheconstruction

ofsportingfacilities,inadditiontoA$1.15billiononsupportiveinfrastructure(Budget

statementoftheNewSouthWalesGovernment2000-2001.InSydneyOlympicand

ParalympicGames,2001,Ch.6).Whilethehostingofmega-sportingeventcanadd

valuetotheurbandevelopmentofthehostcityorregion,attentionshouldbefocused

ontheprocessinvolvedforachievingmajorconstructionprojects.AsLenskyjpoints

out“thesetdeadlinefortheconstructionoflocationsandthecompletionof

infrastructuresupportsareoftenusedbylocalpoliticiansastheexcuseformajor

constructionstoavoidtheusualstagesinurbandevelopmentapplications,including

environmentalassessment,publichearingandsoon”.Thechoiceofsuchprojectsis

usuallyapoliticalone,sincethecostoftheoften-widespreadevent-related

infrastructureisprimarycoveredbylocalgovernments;stressingtheroleof

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governmentsandthesubsequentpoliticsinvolvedinhostingmega-sportingevent

representedbelow.

3.4.4PoliticalImpacts

Hostingamega-sportingeventoftheimportanceoftheOlympicGamesusuallyhasas

itscentralcomponentregional,localorcentralgovernments.Themainreasonisthat

theadministrationsofsucheventsfacedifficultiesincoveringthecostforthe

supportiveinfrastructureoftheeventorevenforoperatingcostsfromticketssalesor

sponsorship,sogovernmentcontributionisrequired.Hence,thedecisiontobidfor

hostingamega-sportingeventissupportedbygovernments,whichregularlymake

thesetypesofdecisions,especiallywhentheeventdeliversthechancetocompensate

thembackeconomically,physicallyorwithothersettlements.Publicgovernanceis

mostlyaffectedinsuchdecisionsatalocalorregionallevel,sincethebenefitsfor

hostingtheOlympicsareawardedtocitiesratherthancountries.Theorganizing

committeeofmega-sportingeventsfrequentlyincludeselectedrepresentativeswho

serveastheirmembersorevenpresidents.Thesepoliticiansoftenexperience

conflictingpressurestorepresentstaxpayersononesideandprofit-orientedinterest

ontheother.

3.5 Recommendationforthepathahead

InthisfinalsectionweexploredtheoutcomesderivedfromhostingtheOlympics,the

difficultiesrelatedtocostoverrunandurbandevelopmentthataffecthostcities.In

additiontogeneralbestpracticelegacyprojection,particularlytheauthoritativeto

integrateaGamesplanwiththecity’slongtermplanningobjectives,andtoplanfor

legacyfromtheverybeginningofthebidprocess(Smith,2012),severalauthorslisted

thefollowingrecommendation(Legacyafterthebid,2014):

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Ø Supportcitiestoformalong-term“bidcoordination”organization.Manycities

applyformultiplebids,notjustfortheOlympics,butalsoforothertypesof

events.However,thereistheriskthattemporarybidorganizationswilleither

suspendafteranunsuccessfulbid,ortransitionintoanorganizingcommittee

afteraprosperousbid.Inthecaseacitypresentsmorethanonebidthereis

theorganizationcommitteethattakecareabouttheproject,buttheideal

modeltofollowwillbetheinstitutionofanexternalorganizingcommittee,

thatwillbeabletohandlethemanagementforpairingindividualbidswitha

long-termurbandevelopmentstrategy.Ifthishypotheticteamisbuiltto

representpotentialstakeholders,itcouldbecomeamanifestoforcoordinating

publicconversationaboutwhatanOlympic,orothermegaevents,should

entailinordertodevelopthecityevenifthebiddingisnotsuccessful.

Ø Monitoringongoingimpactsofbids,especiallyamonghighfrequencybidders.

CitiesthatbidfortheGamesseveraltimes,oftenimplementspartoftheirbid

plansbeforesecuringanOlympichostcontract.Muchofthisinvestmentwas

alreadyaccountedaspartofthenon-Olympicinitiatives,butthebid

themselvesprovidetheimprovementofexistinginfrastructures(empowering

sportsfacilities,forexample).Thisrepresentsachanceforarrangingand

pursuingOlympiclegacythroughoutandamongbids,andformaintaininga

long-termlocaldialogonbidlegacygoals.Italsopresentschallengesto

Olympiclegacy,inthatbidlegacyinvestmentsmustbeplannedfortwo

situations:thatabidisunsuccessfulandthatafuturebidmaybesuccessful.

WhenacitybidsfortheGamesmultipletimestheIOCshouldrequest

documentationonlegaciesofthecity’spreviousbids.Theabovementionedbid

coordinationagenciescouldplayaleadingroleinimplementingand

documentingbidlegacies,andthismonitoringwouldhelpensure

accountabilityandtransparencywithinthoseagencies.

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Ø Addsubsequentseminar,afterthehostcityelections,foralloftheapplicant

andcandidatecities.TheIOCalreadysetspost-electionexaminationsforthe

futurehostcity,managedthroughtheIOCCoordinationCommissions.The

proposedseminarwouldbeanadditional,independentevent.Itwouldideally

playtwofunctions:helpingthefuturehostcitylearnfromthebestpracticesof

itspreviouscontendersandinstructingunsuccessfulbiddersonhowtorealize

theirbidlegacies.Thesecondoneshouldaccentuatemakingpremeditated

long-lastingdecisionsaboutwhetherornottobidinfutureelectionsround,

andonpickingofferedprojectsfromwithinthebidthatwouldstilladdvalueto

thecity.TheseminarcouldbeintegratedintothecurrentOlympicGames

KnowledgeManagementframework,asaworkshopanalogoustothebidcities

orientationseminar(heldattheinitiationofahostcityelectionsround).

Thesuggestionsaboverepresentawaytoenhanceandavoidthewasteofmoneyand

timeduringtheorganizationandafterthehostingoftheOlympicGames.Eventhough

thepointslistedareveryuseful,isnoteasytoputthemintoaction,sincethereareto

manyfacetstobeconsideredthatmostofthetimemakesdifficulttonotovercoming

thelimitsimposed.

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CONCLUSIONS

Thispaperreviewsthecurrentliteratureonthebiddingprocessformegaevents,in

particular,megasportingeventsandtheRomeOlympicGames2024asthecase

exampletoclarifytheimpactsonthehostcityandcountry.Thechoiceofthistopicis

toputinevidencethekeypointsofmanagingandbiddingforsuchprojects,but

especiallyanalyzingthepositiveandnegativeaspectsandthechallengesthatproject

managersfacebecauseofthecomplexityofthese.Sincetheroleoftheproject

managerisfundamentalforthistypeofeventsithasbeeninterestingreportingthe

exampleofarespectableprojectmanagersuchasMarkThurston;hisexperiencein

managingverycomplicatedandarticulatedmegaprojectssuchastheCrossrailandthe

LondonOlympicsin2012,representsaninterestingcasewhereheexplainsthe

challengesandthestepshetookinordertoaccomplishtheobjectivespre-established

todelivertheprojectsathisbest.

Theaimofthispaperwastostressthebiddingprocessandallthefacetsthat

characterizedmegaprojects.Mostpeopledon’tknowalltheworkbehindthe

structureofthesemegaevents.Theyparticipateandmakethebestoutofthese

events,don’texpectingthatforasingleeventthereareyearsofpreparationand

especiallybattlesandriskstakeninordertodeliverthebestperformanceforeach

singleoccurrence.Hence,totheextentofrevealingthebackgroundofthesetypesof

eventsItriedtoanswerthefollowingquestions:Howthebiddingprocessisbuilt?

Whatarethemaintrialsencountered?Howhostcitiesandcountriesbehavewhen

theycompetetohostamega-event?Whatarethepositiveandnegativeoutcomes?

Toanswertheaboveinquiries,Ireferredtoseveralpaperswrotebydifferentauthors

whoexperiencedandmanagedprojectsofsuchimportance.WhatIdiscoveredisthat

therearemanystepstotakeintoconsiderationwhentalkingaboutbiddingandmega

projects.Thereareprocessestakingseveralyearsbeforebeingapprovedandthen

implemented,andespeciallyalotofcoststobecoveredthatveryoftenare

transformedinliabilitiesforthehostcities.Suchacostly,complexandhighprofile

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activityashostingtheOlympicGamesinvolvesdifferentinterestsfluctuatingfromthe

commercial,withthepurposeofmaximizingprofit,tothegovernmental,withthe

objectivesforpolitical,economicandsocialbenefits.Settlementsforthehostcities,

derivingfromstagingtheGamescanbeenormousandvarious.Forexample,theycan

recommendeconomicactivityasaresultofthejobsmadeinsociallyrelatedsectors.

Thecreationofsportsamenitiescanalsoplayaroleintheprogramsofurbanrenewal

byintroducingnewsportingandrecreationalfacilitiesintopreviouslyunder-provided

spaces.Onalargerscale,organizationsfortheeventcanalsoofferameansof

justifyingnewinvestmentintransportandinprojectstoenhancethecity’sscenery

andestheticalpresence.Furthermore,Ihaveseenthatthefundamentalqualitiesof

mega-eventshavebeenclassifiedastheunitofimpact,themanagerialcomplexity,

andcommitmentofvariousrepresentativesandscaleofthelength.Duetotherising

extent,theperformanceoftheOlympicsnowincludesconsiderableinvestmentin

sportingcapacities,addingalsotheimprovementorconstructionofother

infrastructureandservices,suchashousing,transportationandcommunications.

Recentmega-eventshasshownhowtheoutcomes,positiveornegative,affected

results.Increasedcityawareness,economicdevelopment,creationofnewjob’s

positionsandurbanreinforcementhavebeenseenalongwithhighinflation,high-

pricedhousingandevencitydenigration.However,ItisarguedthattheIOC,jointly

withlocalOlympicmanagersandpublicrelationsspecialists,haslargelysucceededin

maintainingtheimpressionthat,whilebadeffectsaswellaspressuresmaymanifest

themselvesinmisconductsorobstructions,thesportingworldisunequivocally

supportiveoftheOlympicmission.Hence,notwithstandingthegeneraldisapprovals

surroundingtheinstitutionoftheOlympicGames,whichmainlyfacethecorrelation

betweentheconceptsofOlympicsandthecurrentnatureoftheevent,theGames

continuouslygrowinscaleandimportance.ThecurrentOlympicsshowthatthe

economicbenefitsaretheprimaryreasonforalltheinterestsinvolvedinhostingthe

Games,beitthelocaladministration,whichpursuescitydevelopmentoftheregion

throughinfrastructuremadeforstagingtheevent,ortheorganizationthatchooseto

becomesponsorsoftheeventtoattractadvertising.Takingintoconsiderationthe

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candidatureofRomefortheOlympics2024,thedecisionoftheMajorisquestionable,

sincethecandidaturecouldhaverepresentedanoccasionofredemptionforthe

eternalcity.Itisconsideredoneofthemostbeautifulcitiesintheglobeandthe

chancetohostagain,afterseveralyears,theGamesshouldbeconsideredanasset

andawaytoimprovesomeofthecity’sareathatotherwisewouldbeunused.It

wouldalsohaverepresentedavalidcircumstancetoattiremoretouristsandorganize

moreeventsboundedtosportsorotherculturalactivitieswithaviewofthefuture

Games.

Asaresult,whilebiddersfightforthegloryofwinningthestagingofamega-event,the

wantedfiscal,economic,social,politicalandculturaloutcomesareprojectedto

supporttheiractions.Inconclusion,throughthiswork,havingseenthateverything

thatshinesisnotalwaysgold,ispossibletostatethatevenifisdifficulttomanageall

theaspectsofpreparingOlympicsandmegaeventsingeneral,organizingcommittees

shouldarrangeaspecifiedprogramtofolloworatleastimposestrictpointsinorderto

allowcitiestobeeligible,respectingdeadline,costsandothernon-directlyrelated

costssuchastheOlympicAgenda2020istryingtodoing.But,basedonmyresearch

themostimportantaspectstotakeintoaccountshouldbe:

• Assuringthattheinfrastructuresbuiltarenotanymoreleftas“ghostsamenities”

becausetheywouldrepresentjustawasteofmoney,paidbycitizensorsponsoredby

theoneswhokindlydonatesittothehostcity.

• Super-visioningtheliquidity’sflows.

Theorganizingcommitteeshouldensurethatnoonespeculates,earningmoney,on

thesetypesofeventsthatshouldrepresentanoccasiontounifypopulation,cities,and

nationsintherepresentationofoneofthemostspectacularworldwideevents.

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saperediproject,programeportfoliomanagement.pp:63-69.

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andParalympicGames,2001,Ch.6.

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ConceptandStrategy(2014).pp:1-40

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http://businessschool.luiss.it/news/la-professione-del-project-manager-chi-e-cosa-fa-

e-perche-le-aziende-ricercano-questa-figuraVisitedon29/09/2016

https://en.wikipedia.org/wiki/Bids_for_Olympic_GamesVisitedon29/09/2016

73

http://www.crossrail.co.uk/Visitedon25/09/2016

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speech-by-mark-thurston-ita/Visitedon25/09/2016

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of-branding/Visitedon15/11/2016

http://www.whoi.edu/procurement/managing-bids-negotiating-pricesVisitedon

30/09/2016

http://gamesbids.com/eng/tag/Rome-2024/Visitedon15/11/2016

https://en.wikipedia.org/wiki/MegaprojectVisitedon29/09/2016

http://www.slideshare.net/russoswaldo/london-2012-case-studie-proyect-

management-case-44057333Visitedon3/11/2016

https://www.olympic.org/all-about-the-candidature-processVisitedon10/12/2016

http://thesportdigest.com/2016/10/rome-mayor-writes-to-ioc-to-withdraw-bid-for-

2024-olympics-even-though-candidature-file-delivered/Visitedon10/01/2017

http://www.bbc.com/news/world-europe-37624948Visitedon10/01/2017

http://www.independent.co.uk/sport/olympics/rome-2024-olympic-bid-italy-mayor-

withdraws-mayor-rubbish-collection-corruption-a7357046.htmlVisitedon10/01/2017

74

http://www.ilfattoquotidiano.it/2016/10/11/olimpiadi-2024-il-coni-ha-interrotto-la-

candidatura-di-roma-ultima-speranza-di-malago-caduta-della-raggi-entro-

febbraio/3090556/Visitedon15/01/2017

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http://edition.cnn.com/2015/09/16/sport/olympics-2024-los-angeles-paris-rome-

budapest-hamburg/Visitedon11/11/2016

Video:http://video.repubblica.it/sport/roma-2024-malago-chiude-il-comitato-vi-

rendete-conto-della-figuraccia/254984/255201?ref=searchSeenon15/01/2017

https://www.youtube.com/watch?v=LxkL9FvjKSQ&feature=youtu.beSeenon

29/09/2016

Records:ManagingMega-projectschallenges:lessonsfrommajorUKprogrammes.

KeynotespeechbyMarkThurston,LUISSGuidoCarli,10/05/2016.

75

SUMMARY

WhatareMegaProjects

“MegacomesfromtheGreekword“mega”andmeanslarge,vast,highandimposing.

Theyrepresentcomplex,large-scaleendeavorsthatcostabilliondollarsormore,take

manyyearstodevelopandbuild,involveprivateandpublicstakeholders,andimpact

millionsofpeople”(BentFlyvbjerg,2014).Hirschman(1995:vii,xi)calledsuch

projects“privilegedparticlesofthedevelopmentprocessandpointedoutthatoften

theyaredesignedtoambitiouslychangethestructureofsociety,asopposedtominor

andmoreconventionalprojectsthatusedtofitintopre-existingstructuresanddonot

attempttomodifythese”.Hence,MegaProjectsarenotalargervisionofminor

projects.Theycoveracompletelydifferentstrainofprojectsintermsofcomplexity,

lead-timeaspiration,andstakeholderinvolvement.Subsequently,theyarealsovery

differentanddifficulttomanage.Megaprojectsareincreasinglyusedasthefavorite

transfermodelforgoodsandservicesacrossarangeofbusinesssectorslike

infrastructure,IT,bigscienceandmajorevents.Samplesofmegaprojectsareairports,

high-speedraillines,damsandtheOlympics.Eveniftheseprojectsaremadeinorder

toimprovecommunity’squalitylife,suchasconstructingbridgesthatallow

connectionsfromoneplacetoanother,ratherthanorganizingamegaeventthatwill

providemanyjobs,theyhaveseveralweakpointsthataretoughtoovercomeand

couldleadtothefailureoftheseMegaProjects.Theseare:

• Riskduetolongplanninghorizonsandcomplexboundaries.

• Scarceplannersandmanagersexperiencethatleadstoleavingleadership

fragile.

• Decision-makingandplanningaretypicallymulti-actorprocessesinvolving

multiplestakeholderswithconflictinginterests.

• Non-standardtechnologyanddesignthatmakestheprojectuniqueand

preventlearningfromotherprojects.

• Earlyovercommitmentthatmakesimpossibletolookforalternativeanalysis

• Changeoftheprojectscope

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• Costoverrunsanddelays

Nowadaysprojectmanagerlivesinstuckwiththemanagementofmegaprojects;they

donotknowhowtodeliverthemsuccessfully,therefore,theytendtobreakand

reorganizeagain,andsometimesrefinancing,inattempttohitproblemsanddeliver

someversionoftheinitiallyscheduledproject.Thus,isnoteasytodrivemegaprojects.

Successisdefinedastheprojectbeingdeliveredontime,budgetandbenefits.But,as

theevidenceindicates,aroundoneoftenMegaProjectsisonbudget,onscheduleand

onbenefits.ManagingMegaProjectssuchasahugeinfrastructureenterpriseorplant

developmentrequiresbetterqualityprojectmanagementcontrolsinordertoavoid

excessivecostsandscheduleoverruns.Earlyorganizationandplanningofconstruction

MegaProjectssetthestageforeverythingthattakesplaceaftertheproject

authorization.Oncematerials,machineryandmanpowerentertheframe,muchofthe

planningelasticitydisappears.Hence,ishardtobeontrackwiththepre-established

plans.Bybeingsmartaboutprojectdelivery,contractingstrategiesandbyputting

appropriateprojectmanagementcontrolsinplace,manyprojectriskscanbe

eliminatedormitigated.Furthermore,isusefulforprojectmanagerstosharetheir

knowledgeamongprojectsinordertohaveafullpictureoftheproblemthereare

goingtoface,inparticular,isusefulhavingmoreresourcesandtimesavedtocount

on.Inthenextsections,wewillgothroughMegaProject’schallengesreportedby

examplesandadirectdepositionbyoneofthemostfamousUKprojectmanager:

MarkThurston.

MegaProjectsChallenges:KeynotespeakerMarkThurston

Thekeynotespeaker,MarkThurston,detectedsomefactorsmorespecificallyrelated

toMegaProjects:scalefactors,complexity,regulation,politicsandinterface.Allof

thatbasedonlongpersonalexperience,puttingevidenceonfourprojectsofhuge

dimensionssuchasLondonOlympicGames2012,realizationofa25kmtunnelright

belowtheThames(Tidewayproject)andtherealizationofahighwayfromLondonto

LeedsandManchester(HighSpeed2project).Furthermore,MarkThurstonexhibited

theinterestingparallelbetweentheconceptof“homeostasis”foralivingsystemand

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themodelingofthevariablesettingmanagementsuchastomaintainthestabilityofa

complexsystem,appliedinthefieldofmanagementoflargeprojects.Thatargument

hasbeenaninterestingdebatewiththegreatparticipationofthosepresent.Hethen

setsoutthefactorsofgreatestinfluenceoflargeprojects,dividedintofour

perspectivesofgreaterimpact:peopleandleadership,governanceandcontrols,

organizationandculture,outsideworld.Thedeepeningissuesbroughttofocusthe

debateontopicsrelatedtoriskmanagement,theimportanceofthedefinitionand

scopeofcommunicationanddisciplinenecessarytoconductinanefficientwaythese

companies.

FactorsrelatedtoMegaProjects

Accordingtothespeaker,thetransferofknowledgeisoneofthekeypointstobe

takenintoconsiderationwhenwetalkaboutMegaProjects.Takingtheexampleof

Terminal5atHeathrowAirportinLondon,itwasconsideredthefirsttimefrommany

yearswhereprimeorganization,supplychainandgovernmentregulatorscame

togetherandgotitright.TherehasbeenalotofresearcharoundTerminal5project

andithasbeenseenasaplatformforthingsthathavegoneandhappenedsince.Also,

theOlympicswerebuiltonallthegoodworkingaspectsthatweredoneoutat

Heathrow.TheseMegaProjectsaresignificantundertakingsthatgovernments,

agencies,countrieshavetakenonandthesefiveelements:scalefactors,complexity,

regulation,politicsandinterfacearemeanttobethefoundationforsuccess.Theyare

thethingsthatscancomplexity,andbecauseofthatscaleandcomplexity,thereis

invariablyhugepoliticaldimensionandtheUKGovernmenthasbeenattheheartof

fundingmanyoftheprojects.Inevitably,thescancomplexityleadstointerfacesand

theseinterfacesarenotnecessarilytechnical;theycouldbealsoorganizational(the

channeltunnelthatisbetweennations).Ifwetakeastepback,wewoulddefineMega

Projectstheonesthathavethosecharacteristics.

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WhatisaBid

TheBidisthedealer'sreplytoaclient’srequestforaproject;theanswertothe

questionspresentedbytheclient.Itisreferredalsotoaproposal;itisabinding

document,firstlyevaluatedbytheusertoestablishiftheworkshouldbeendowed

andifitis,itbecomesabinderonthepartofthesupplierastowhatwillbedone.

Therearemanytypesofbids,astherearemanydifferentprojects.Thebidding

processisakeysalesactivityformostservicesandproductsorientedorganizations.

Theprinciplesofbidwritingapplyequallyacrossthescalefromverysmalltoverylarge

project.Focusingonthecommercialbidresultsoneoftheseveralpossiblesuppliers

beingawardedacontracttoexecuteaprojectoraprogramofwork.However,many

oftheprinciplestobediscussedremainvalidoutsideofbusinesscontext,suchas

whendivingforaninternalprojectorundertakinganon-commercialbasis.Thebid

processcontrolsthewaythebidgroupprepares,maturesandsendsthetendertothe

customer.Ifwellprepared,thebidproposalrepresentsaperfectblueprintforsuccess.

Mostsuccessfulproposalsarenotcasualresults.Theyarecreatedfollowingstructured

bidprocessaimedtoguidethebidteamintherightdirection.Thekeyofhavingan

establishedbidprocessisessentialtoensurethatstepsarefollowedandthingsare

doneintherightwayattherighttime.

TheBidprocessfortheOlympicGames

TheIOC’SadvancingdevelopmentoftheOlympicMovementhasshapedthecurrent

bidprocess.TheIOCconstantlytriestoincreasetheavailableresourcesandrefinethe

prerequisitesforbidcitiestomaximizethebidexperienceandaspireforaneventof

superiorlevel.ParalleltheIOC’Sfruition;hostsandinnovativebiddershavelearnedto

shapethebidprocesstotheirlong-termbenefits,inparticularthroughurban

renovationinitiatives.Theearlystageofbidandthebidprocessitselfareconsidered

crucial,andtheguaranteesmadeduringthesestagesaremandatoryifacityis

selectedtohosttheGames.Inthisway,applicantcitiesarestronglyencouragedto

apprehendtherequestsofhostingtheGamesbeforebuildingpublicsupportforabid

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andjoiningthefirststageoftheapplicationprocess.TheIOCsupportswhyitsplitsthe

bidprocedureintotwoperiodsasitsapproachofpickingthemostfittingcitytohost

theGamesandmeetitsobligationtoguaranteeapositiveOlympicLegacy.Justas

Olympicathletescontendinaseriesofqualifyingtrials,citiesundertakeasimilarly

complexrankingprocedurebasedontheircapacitytocompletetheGames.Ineach

stage,theApplicantandtheCandidate,theIOCtriestorecognizethemostsuitable

candidatestomoveonward.Althoughatieredbidprocesscanputanimportant

amountofstressoncompetingcities,itcanalsoacttoputanedgetothefinancial

burdenonbidderswhoarenotreadytoexecutetheGamesCandidatureFee(Phase1,

$150,000)andCandidatureFee(Phase2,$500,000)(InternationalOlympicCommittee,

2003).ThesefeesrepresentjustasmallpartofthecostofpreparinganOlympicbid,

whichcostabout$30million.Withineachbid,budgetestimationmustbetakeninto

considerationsincetheOrganizingCommitteefortheOlympicGames(OCOG)budget

excludesmilestoneitems.Significantexpenses,suchastransportationservicesand

infrastructureareoverduetocitiesindependentlyfromanythingenclosedor

contemplatedbytheIOC.Theseelementsmaybeinstrumentalinthesuccessofthe

OlympicLegacy.Successfullyexecutingthestepsofabidrequiresthatacityis

sustainedatanationallevelbybothpublicandprivateresourcesdistinctlyfrom

Olympicsrelatedfunding.TheIOCdeliverstocandidatecitiesinstructionandpractical

learningopportunitiesthroughtheTransferofKnowledge(TOK)program.Sincethe

OlympicGameStudyCommissionof2003,theIOChasenlargeditseffortstoimprove

Gamesmanagingprocessthroughincreasedassistancetorepeatbidders.Hence,cities

ponderingabidnowhavetochoicetotieontheIOC’splanningandlearningmeans,

manyofwhichspecificallyfocusonapplicationrequests.Consequently,submissions

continuetoriseinvaluefromyeartoyearintermsoftheiracquiescencewithIOC

instructionsanddeadlines.

WitheachOlympiad,theIOCrestructurethebidprocessinordertoincorporate

valuablelessonlearned.AstheprocessdoesnotpromiseapositiveOlympicLegacy,

theIOC’snewassetsandnecessitiesareusedasstandardstoafruitfulbidandbuilding

blockforapositivelegacy.

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ThecandidatureofRome2024:Whatwerethekeypoints

ThemanifestusedforhostingtheOlympicGameswasbasedonshowingtheartofthe

Italianpillarstotietheworldthroughsport.Thevisionreliesonfamilyvaluesthat

Italiansholdandthewarmwelcomeandhighqualityexperiencethatisproposedtoall

visitorsthatcometoenjoythebeautyandtraditionalcultureofRomeandItaly.The

purposeisshowthepowerofsporttoconnectpeople,families,places,culturesand

faithsandwanttousetheOlympicandParalympicGamesasacatalysttoachieve

thesegoals,furnishingever-longmemoriesofpooledexperiencesfortheentirety.The

GamesConceptisguidedbythisvision,motivatedtorecreatethesenseofpride

generatedbyhostingtheRome1960Gamesandthekeymilestonethatthis

representedinRome’sprogress.Theobjectiveistodevelopanewmilestonein

Rome’shistoryin2024,aturningpointintheforthegrowthofthecity,forfutureuse

andasanincentivetoimprovethequalityoflifeforallRomanresidents.Italywantsto

demonstratetotheworldthatcanachieveitsgoalsbyhostinghighlyprosperous

majorevents,suchastheRome1960OlympicGamesandtheMilanWorldExpo2015.

Theseaspirationsarealsoinlinewiththelongtermplansforthedevelopmentof

RomeandwiththeOlympicAgenda2020.TheItalianconceptoftheGamescanbe

summarizedinthefigurebelow.

Figure2.3:RomaCandidateCityOlympics2024.(Candidaturefilestage1:Vision,GamesConceptand

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Strategy,2015)

Exploringthesepointitcanbepossibletoobservehowthedifferentpointsarefaced.

Ø Culture,Lifestyle&Landscapes–Linkingthedifferentcommunitiesandbeliefs

ofRome,encouragingallvisitors,betheyathletes,spectators,officialsorthe

media,to‘experiencelifetheItalianway’,throughahighqualitycelebrationof

sport,inauniqueoutdoorscenery(Candidaturefile–Stage1:Vision,Games

ConceptandStrategy).Thiswillincorporatesupportingsocialinteraction,using

Rome’surbanparksandsquares,astheartoftheItalianwelcomeandlifestyle

tooltodevelopcommunityspiritacrossthewholetocreateasenseof

uniformitytotheworldthroughsport,Romeanditslocalpopulation.This

eventisalsoseenasachancetorenovatethecity’sinfrastructureandenhance

thequalityoflifeforRome’scitizens.Thesedevelopments,whichfitperfectly

withtheOlympicAgenda2020values,willbenefitbothcitizensandvisitors,

leadingtobringRomemorereachable,enjoyable,sustainableandevenmore

spectacular.

Ø Families–Usingfamilyvaluesandconceptstocreateatrulycelebratory

atmosphereanddeliverwidersocialopportunitiestotie,notonlyItalians,but

alsoplayers,touristsandtheOlympicFamily.Contestantswillcelebratewith

theirbelovedandwillhavethechancetomeetandexploreRomeandItaly

together.TheGamesrelatedprogramswouldhelptosurroundthesecultural

valueswithintheframeofamorecompletesociety,endorsingcommunication

acrossgenerations.

Ø Tradition&Innovation/Technology–CombiningRome’stradition,beautyand

heritagewithnewconceptsandinnovationtodeliveraforwardthinkingGames

concept,inourevergrowingtechnologicalworld.Rome’sGameswillshowthe

historyandheritageofsport,inamodernandextensiveway.Incorporating

revolutionaryideasanduseItaly’stechnologicalknow-how,astheyalreadydid

withthe1960Games,asthefirstOlympicGamestobebroadcast

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internationallyandusetechnologysuchasslowmotionreplays.Theproposalis

foratriumphantparadeofmedalwinnersatGames-time,forthefirsttime,in

theamazingnight-timesceneryoftheColiseum,thesiteofmanyhistorical

competitionsandpublicshows,itwouldrepresentauniqueexampleofhow

mergingtraditionandinnovation.

ThereareaseriesofobjectivesthatItalianrepresentativewantstoreachbyhosting

theOlympicGames(CandidatureFilestage1:Vision,GamesConceptandStrategy,

2015).

Objective1:Createaconnectionwithpeople,notonlylimitedtothecitythatwill

hosttheGames,butatnationalandinternationallevel.Thepurposeistodeliveran

outstandingexperienceforathletesandspectatorscreatinglong-termmemoriesthat

aregoingtobuildtheOlympichistory.Thiswilltakeplaceinprofounderand

noteworthylegacies,incorporatingpride,honorandexcitementforthebenefitsthat

couldthiseventgivetothecityandtothecountry.

Objective2:BuildnewOlympicGamesonthelegacyofRome1960,usingthenational

traditiontostimulatenewgenerationandstrengthensocietythroughsports.

Celebrateandencourageparticipationinsportanddelivermoresporting

opportunitiesandundertakings.ThesebenefitstoItaliansportinclude:

Ø Renewedandnewsportinglocations

Ø Peopleofallagestakingpartinsportandfeelingthehealthandpersonalbenefitof

anactivehealthylifestyle

Ø Moreefficienttalentidentificationtohelpmoreyoungersachievetheirsporting

goals

Ø Moreeliteathletesachievingsuccessontheworldstageandactingasrolemodels

foryoungpeople.

Objective3:Createinteractionswithgroups,familiesandsocietyandimprovethe

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qualityoflifeforRomanandItaliancitizens.TheGameswillbeusedasaninstrument

topromotegreatersocialinclusionandrespectthenexttogetherofdifferentcultures,

beliefsandreligions,forthelong-standingbenefitofsociety.Someoftheinitiatives

include:

Ø Familyfriendlyprogramsandnotionsre-establishingtheimportanceoffamily

valueswithinItaliansociety

Ø OlympicandParalympiceducationprograms,before,duringandfollowingthe

Games,providingalegacytoRomeandItaliansport,educationandsociety,aswellas

theOlympicMovement

Ø Greaterpromotionandawarenessofthebenefitsofactivehealthylifestylesto

augmenthealthandwellbeing

Objective4:Improvecity’sinfrastructureandlivingenvironmenttocreateamore

accessibleandsustainablecity.Bycompletingthisitispossibletoreachabetter

qualitylifestandardforcitizens,inrespectfortheRome’shistoricalenvironment.

Someofthebenefitsinclude:

Ø ConnectivitybetweenRome’sdistricts,withimprovedtransportconnections

Ø Theadoptionofnewsustainabilitystandardsandtransparentbestpractice

constructionprocesses

Ø Amoreaccessible,inclusivecity,providingimprovementsnotonlyforpeoplewith

disabilities,butalsoforeveryone,allowingvisitorstogetaroundandenjoythecity

easily.

Objective5:IncorporateinnovationandtechnologyintoallGames-relatedplanning

andprogramstodeliveroutcomesofthehighestquality.Rome2024planistouse

technologyandinnovationpositioningasthelargestmanufacturingcountryinEurope.

WorkingwithsomeoftheItalians‘hi-techclusters’,allowsnotonlyshapingthebidbut

alsoexploitingtheopportunitiesthatbiddingforandhostingtheGamescanbringand

theresultantbenefitstobedelivered.Newideasandinnovationswillbepromoted,

enhancingRome’spositionasahubforcreativity,throughengagementswith

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universities,newbusinesses,aswellassportsrelatedresearchprojectsinthe

technologysector.Thiswillinclude:

Ø Continuationofthe#LabRoma2024(innovationecosystemnetwork)initiative,

introducedintheCandidaturephase,tobuildonRome’spositionasanincubatorhub

fornewbusiness.

Ø DevelopingtheresearchcapabilitiesatTorVergataUniversityaspartoftheGames

legacyplansthroughadditionalstructureandresearchprograms,involvingmore

youngpeopleandstudents.

Romewithdrawfromthe2024GamesOnOctober11th2016VirginiaRaggi,MayorofRome,duringapressconference

withdrewthecandidatureofRomefromtheOlympicsin2024.Thereareseveral

reasonsthathaveledtomakethisdecision.TheMayorsaid:“Isirresponsiblesaying

yestothiscandidature”continuing“Wedidnotchangedourmind,westrengthened

ourposition”,ongoing“Wewereaskedtocarryonmoredebts,wecannotafford

that”(www.repubblica.it).TheMayorexplainedthattheyarestillpayingdebtsforthe

expropriationofthegamesheldinRomein1960.TheyhavenothingagainstOlympics

andsportsingeneral,buttheirwillingnessistousesportnotjustasanexcusefora

newinefficientspendingforthecityofRome;therearealotofpromisesdoneduring

theOlympics,butpeopleshouldtakeintoaccounttheseveralstructuresbuiltthatare

nowunused,suchastheinfrastructuresfortheWorldAquatics.

ThepositionoftheMayorisclear,hostinganeventsuchastheOlympicswillincurin

costoverrunsmeaningthetransformationofthiscostsinliabilitiesforthecity,its

citizensandespeciallyfortheinfrastructuresthathavetobebuiltinordertobe

suitableforholdingtheGameswithouttheguaranteetousetheseappropriatelyafter

theevent.

Ontheotherside,GiovanniMalagò,presidentoftheINOC(ItalianNationalOlympic

Committee)stronglydisagreewiththedecisionmadebyVirginiaRaggi.Hesupported

theimportanceofthiscandidatureasachanceofredemptionforthecityRome.He

underlinedtheessentialelementsthatcouldhelpthecityofRometoimprovepublic

transportation,publicinfrastructuresandcreatenewjobpositions.Theserepresentsa

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bunchoffundamentalsthatcouldbeconsideredafirststepinordertodevelopthe

eternalcity,justliketheOlympicsheldin1992contributedtothecityofBarcelonain

givingbirthtonewcityareas.Tostrengthenhisposition,thepresidentoftheINOC,

referstosomeofthekeypointslistedbyAgenda2020(www.Olympics.org):

Ø Changestothebiddingprocess,newwaytoinvitecandidatecitiestopresenta

projectthatsuitstheirsporting,social,economicandenvironmentallong-term

planningneeds.

Ø Reducingbiddingcostsbyreducingthenumberofpresentationallowedand

providingasignificantfinancialcontributionfromtheIOC.

Ø Organizationofsportsandeventsoutsidethehostcityandeven,inexceptional

cases,outsidethehostcountry,alwaysrespectingtheintegrityoftheOlympic

Village.

Ø Adaptingandfurtherstrengtheningtheprinciplesofgoodgovernanceand

ethicstochangingdemands.EnsuringcompliancewiththeBasicUniversal

PrinciplesofGoodGovernanceandtransparencyofaccounts,withtheIOC’s

financialstatementstobepreparedandauditedaccordingtotheInternational

FinancialReportingStandards(IFRS).

LastOctober11th2016,GiovanniMalagògaveuponhisconflictwiththedecision

madebytheMayor,deliveringtotheIOCtheletterthatcertifiesthewithdrawof

Romefromthe2024Games.

CostandcostoverrunattheGames

SincethedevelopmentofthemodernOlympicsin1986attentiontocostandcost

overrunoftheGameshasbeenraised.BaronPierredeCoubertin,themanresponsible

forthemodernGames,referredto“theoftenexaggeratedexpensesincurredforthe

mostrecentOlympiads”(Coubertin,1911).

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CostforhostingtheGamesfallintothreecategories,establishedbytheIOC:

1.OperationalcostdeservedbytheOrganizingCommitteeforthepurposeofhosting

theGames.Technology,workforce,transportationrepresentthevastmajorityofthis

clusterandadministrationcosts.Othercostsincludesecurity,medicalservicesand

ceremoniesservices.

2.Directcapitalcostincurredbythehostcountryorcityorprivateinvestorstobuild

theOlympicVillages,mediaandpresscenterandthecompetitionvenuesrequiredto

hosttheGames.

3.Indirectcapitalcostssuchasforroad,airportorinfrastructures,rail,hotelorother

businessinvestmentnecessaryfortheGamesbutnotdirectlyrelatedtostagingthe

Games.

ThefirsttworepresentsthecostsrelatedtothesportsoftheGames;thelastone

representstheindirectcostsrelatedtotheGamesandgettingdataabouttheseisso

difficultandtheyarerare,duetothearbitrariness.Regularly,theindirectcostsare

higherthanthedirectones.BaadeandMatheson(TheOxfordOlympicStudy,2016)

foundthatforsevenGamesforwhichtheycouldobtaindataforbothsports

infrastructureandgeneralinfrastructure,inallcaseswasthecostofgeneral

infrastructurewashigherthanthecostofsportinfrastructure,sometimesseveral

higher.

Recommendationforthepathahead

InthisfinalsectionweexploredtheoutcomesderivedfromhostingtheOlympics,the

difficultiesrelatedtocostoverrunandurbandevelopmentthataffecthostcities.In

additiontogeneralbestpracticelegacyprojection,particularlytheauthoritativeto

integrateaGamesplanwiththecity’slongtermplanningobjectives,andtoplanfor

legacyfromtheverybeginningofthebidprocess(Smith,2012),severalauthorslisted

thefollowingrecommendation(Legacyafterthebid,2014):

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Ø Supportcitiestoformalong-term“bidcoordination”organization.Manycities

applyformultiplebids,notjustfortheOlympics,butalsoforothertypesof

events.However,thereistheriskthattemporarybidorganizationswilleither

suspendafteranunsuccessfulbid,ortransitionintoanorganizingcommittee

afteraprosperousbid.Inthecaseacitypresentsmorethanonebidthereis

theorganizationcommitteethattakecareabouttheproject,buttheideal

modeltofollowwillbetheinstitutionofanexternalorganizingcommittee,

thatwillbeabletohandlethemanagementforpairingindividualbidswitha

long-termurbandevelopmentstrategy.Ifthishypotheticteamisbuiltto

representpotentialstakeholders,itcouldbecomeamanifestoforcoordinating

publicconversationaboutwhatanOlympic,orothermegaevents,should

entailinordertodevelopthecityevenifthebiddingisnotsuccessful.

Ø Monitoringongoingimpactsofbids,especiallyamonghighfrequencybidders.

CitiesthatbidfortheGamesseveraltimes,oftenimplementspartoftheirbid

plansbeforesecuringanOlympichostcontract.Muchofthisinvestmentwas

alreadyaccountedaspartofthenon-Olympicinitiatives,butthebid

themselvesprovidetheimprovementofexistinginfrastructures(empowering

sportsfacilities,forexample).Thisrepresentsachanceforarrangingand

pursuingOlympiclegacythroughoutandamongbids,andformaintaininga

long-termlocaldialogonbidlegacygoals.Italsopresentschallengesto

Olympiclegacy,inthatbidlegacyinvestmentsmustbeplannedfortwo

situations:thatabidisunsuccessfulandthatafuturebidmaybesuccessful.

WhenacitybidsfortheGamesmultipletimestheIOCshouldrequest

documentationonlegaciesofthecity’spreviousbids.Theabovementionedbid

coordinationagenciescouldplayaleadingroleinimplementingand

documentingbidlegacies,andthismonitoringwouldhelpensure

accountabilityandtransparencywithinthoseagencies.

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Ø Addsubsequentseminar,afterthehostcityelections,foralloftheapplicant

andcandidatecities.TheIOCalreadysetspost-electionexaminationsforthe

futurehostcity,managedthroughtheIOCCoordinationCommissions.The

proposedseminarwouldbeanadditional,independentevent.Itwouldideally

playtwofunctions:helpingthefuturehostcitylearnfromthebestpracticesof

itspreviouscontendersandinstructingunsuccessfulbiddersonhowtorealize

theirbidlegacies.Thesecondoneshouldaccentuatemakingpremeditated

long-lastingdecisionsaboutwhetherornottobidinfutureelectionsround,

andonpickingofferedprojectsfromwithinthebidthatwouldstilladdvalueto

thecity.TheseminarcouldbeintegratedintothecurrentOlympicGames

KnowledgeManagementframework,asaworkshopanalogoustothebidcities

orientationseminar(heldattheinitiationofahostcityelectionsround).

Thesuggestionsaboverepresentawaytoenhanceandavoidthewasteofmoneyand

timeduringtheorganizationandafterthehostingoftheOlympicGames.Eventhough

thepointslistedareveryuseful,isnoteasytoputthemintoaction,sincethereareto

manyfacetstobeconsideredthatmostofthetimemakesdifficulttonotovercoming

thelimitsimposed.

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CONCLUSIONS

Thispaperreviewsthecurrentliteratureonthebiddingprocessformegaevents,in

particular,megasportingeventsandtheRomeOlympicGames2024asthecase

exampletoclarifytheimpactsonthehostcityandcountry.Thechoiceofthistopicis

toputinevidencethekeypointsofmanagingandbiddingforsuchprojects,but

especiallyanalyzingthepositiveandnegativeaspectsandthechallengesthatproject

managersfacebecauseofthecomplexityofthese.Sincetheroleoftheproject

managerisfundamentalforthistypeofeventsithasbeeninterestingreportingthe

exampleofarespectableprojectmanagersuchasMarkThurston;hisexperiencein

managingverycomplicatedandarticulatedmegaprojectssuchastheCrossrailandthe

LondonOlympicsin2012,representsaninterestingcasewhereheexplainsthe

challengesandthestepshetookinordertoaccomplishtheobjectivespre-established

todelivertheprojectsathisbest.

Theaimofthispaperwastostressthebiddingprocessandallthefacetsthat

characterizedmegaprojects.Mostpeopledon’tknowalltheworkbehindthe

structureofthesemegaevents.Theyparticipateandmakethebestoutofthese

events,don’texpectingthatforasingleeventthereareyearsofpreparationand

especiallybattlesandriskstakeninordertodeliverthebestperformanceforeach

singleoccurrence.Hence,totheextentofrevealingthebackgroundofthesetypesof

eventsItriedtoanswerthefollowingquestions:Howthebiddingprocessisbuilt?

Whatarethemaintrialsencountered?Howhostcitiesandcountriesbehavewhen

theycompetetohostamega-event?Whatarethepositiveandnegativeoutcomes?

Toanswertheaboveinquiries,Ireferredtoseveralpaperswrotebydifferentauthors

whoexperiencedandmanagedprojectsofsuchimportance.WhatIdiscoveredisthat

therearemanystepstotakeintoconsiderationwhentalkingaboutbiddingandmega

projects.Thereareprocessestakingseveralyearsbeforebeingapprovedandthen

implemented,andespeciallyalotofcoststobecoveredthatveryoftenare

transformedinliabilitiesforthehostcities.Suchacostly,complexandhighprofile

activityashostingtheOlympicGamesinvolvesdifferentinterestsfluctuatingfromthe

commercial,withthepurposeofmaximizingprofit,tothegovernmental,withthe

90

objectivesforpolitical,economicandsocialbenefits.Settlementsforthehostcities,

derivingfromstagingtheGamescanbeenormousandvarious.Forexample,theycan

recommendeconomicactivityasaresultofthejobsmadeinsociallyrelatedsectors.

Thecreationofsportsamenitiescanalsoplayaroleintheprogramsofurbanrenewal

byintroducingnewsportingandrecreationalfacilitiesintopreviouslyunder-provided

spaces.Onalargerscale,organizationsfortheeventcanalsoofferameansof

justifyingnewinvestmentintransportandinprojectstoenhancethecity’sscenery

andestheticalpresence.Furthermore,Ihaveseenthatthefundamentalqualitiesof

mega-eventshavebeenclassifiedastheunitofimpact,themanagerialcomplexity,

andcommitmentofvariousrepresentativesandscaleofthelength.Duetotherising

extent,theperformanceoftheOlympicsnowincludesconsiderableinvestmentin

sportingcapacities,addingalsotheimprovementorconstructionofother

infrastructureandservices,suchashousing,transportationandcommunications.

Recentmega-eventshasshownhowtheoutcomes,positiveornegative,affected

results.Increasedcityawareness,economicdevelopment,creationofnewjob’s

positionsandurbanreinforcementhavebeenseenalongwithhighinflation,high-

pricedhousingandevencitydenigration.However,ItisarguedthattheIOC,jointly

withlocalOlympicmanagersandpublicrelationsspecialists,haslargelysucceededin

maintainingtheimpressionthat,whilebadeffectsaswellaspressuresmaymanifest

themselvesinmisconductsorobstructions,thesportingworldisunequivocally

supportiveoftheOlympicmission.Hence,notwithstandingthegeneraldisapprovals

surroundingtheinstitutionoftheOlympicGames,whichmainlyfacethecorrelation

betweentheconceptsofOlympicsandthecurrentnatureoftheevent,theGames

continuouslygrowinscaleandimportance.ThecurrentOlympicsshowthatthe

economicbenefitsaretheprimaryreasonforalltheinterestsinvolvedinhostingthe

Games,beitthelocaladministration,whichpursuescitydevelopmentoftheregion

throughinfrastructuremadeforstagingtheevent,ortheorganizationthatchooseto

becomesponsorsoftheeventtoattractadvertising.Takingintoconsiderationthe

candidatureofRomefortheOlympics2024,thedecisionoftheMajorisquestionable,

sincethecandidaturecouldhaverepresentedanoccasionofredemptionforthe

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eternalcity.Itisconsideredoneofthemostbeautifulcitiesintheglobeandthe

chancetohostagain,afterseveralyears,theGamesshouldbeconsideredanasset

andawaytoimprovesomeofthecity’sareathatotherwisewouldbeunused.It

wouldalsohaverepresentedavalidcircumstancetoattiremoretouristsandorganize

moreeventsboundedtosportsorotherculturalactivitieswithaviewofthefuture

Games.

Asaresult,whilebiddersfightforthegloryofwinningthestagingofamega-event,the

wantedfiscal,economic,social,politicalandculturaloutcomesareprojectedto

supporttheiractions.Inconclusion,throughthiswork,havingseenthateverything

thatshinesisnotalwaysgold,ispossibletostatethatevenifisdifficulttomanageall

theaspectsofpreparingOlympicsandmegaeventsingeneral,organizingcommittees

shouldarrangeaspecifiedprogramtofolloworatleastimposestrictpointsinorderto

allowcitiestobeeligible,respectingdeadline,costsandothernon-directlyrelated

costssuchastheOlympicAgenda2020istryingtodoing.But,basedonmyresearch

themostimportantaspectstotakeintoaccountshouldbe:

• Assuringthattheinfrastructuresbuiltarenotanymoreleftas“ghostsamenities”

becausetheywouldrepresentjustawasteofmoney,paidbycitizensorsponsoredby

theoneswhokindlydonatesittothehostcity.

• Super-visioningtheliquidity’sflows.

Theorganizingcommitteeshouldensurethatnoonespeculates,earningmoney,on

thesetypesofeventsthatshouldrepresentanoccasiontounifypopulation,cities,and

nationsintherepresentationofoneofthemostspectacularworldwideevents.