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  • PROJECT MANAGEMENTInternational Project Management Journal

    ISSN 1455-4186

    PROJECT MANAGEMENTVol. 5, No. 1, 1999

    Publisher: Project Management Association Finland

    QUEST FOR TEAM COMPETENCESOFTWARE PROJECT MANAGEMENT

    ORGANIZATIONAL CHANGE AS A PROJECTFACTORS IMPEDING PROJECT MANAGEMENT LEARNING

    QUEST FOR TEAM COMPETENCESOFTWARE PROJECT MANAGEMENT

    ORGANIZATIONAL CHANGE AS A PROJECTFACTORS IMPEDING PROJECT MANAGEMENT LEARNING

  • Project ManagementEditor-in-ChiefKarlos A.Artto, Helsinki University of Technology

    Editorial CoordinatorsMarko Korpi-Filppula, Iiro Salkari,Helsinki University of Technology

    Project Management Association FinlandPublications BoardMarko Arenius, Matti Haukka, Pia Arenius, KalleKhknen, Aki Latvanne, Rauno Puskala

    InquiriesAddress submissions and inquiries to:Karlos A.Artto, Editor-in-ChiefHelsinki University of TechnologyP.O.Box 9500, 02015 HUT, FinlandTelephone +358 9 451 4751, Facsimile +358 9 451 3665E-mail Karlos.Artto@hut.fiMore information about the journal can also be foundfrom the Project Management Association Finland website at: http://cic.vtt.fi/pty/index2.htm

    SubmissionsManuscripts should be submitted to the Editor-in-Chief inelectronic format by E-mail.

    Journal PolicyThe Project Management (ISSN 1455-4186) is publishedby the Project Management Association Finland (PMAF).The mission of Project Management (PM) is to promotetheory and practice in the field of project management andproject-oriented business. It is the policy of PMAF to pub-lish one issue of PM yearly, which will be distributed free ofcharge. The main distribution channels comprise circula-tion arranged by national project management associationsto their members and distribution to the attendants of in-ternational events on project management in cooperationwith the arranging organization. The circulation of the jour-nal is 5 000 copies. The aim of PM is to reach extensivelyinterest of project management experts and professionalsworldwide in any sector both in academic world and indus-try, and this way to extend communication between all dif-ferent sectors of industries including the public sector, uni-versities and research organizations.The PM seeks articles on any aspects of project manage-ment for publication. In addition to reviewed academic ar-ticles, it welcomes papers of more practical nature. Authorsare encouraged to submit the following types of originalmanuscript: summaries of research results; surveys on cur-rent practices; critical analysis and developments of con-cepts, theories, practices, methodologies, application or pro-cedures; analyses of failure; and case studies. In the selec-tion of manuscripts primary importance will be based on thenovelty value and the extend to which they advance theknowledge on project management. Those wishing to sub-mit a paper or a case study should contact the editor-in-chief.1999. Project Management Association Finland. All rightsreserved. No part of this publication may be reproduced,stored in a retrieval system or transmitted in any form or byany means, electronic, mechanical, photocopying, record-ing or otherwise, without the prior written permission of thepublisher. All articles in PM are the views of the authorsand are not necessary those of PMAF.

    International Board ofAdvisors and ContributorsProfessor Luis Alarcon, Universidad Catolica de Chile,Chile

    Professor Karlos Artto, Helsinki University of Technolo-gy, Finland

    Professor David Ashley, University of California, USA

    Professor John Bale, Leeds Metropolitan University, UK

    Professor Juan Cano, University of Zaragoza, Spain

    Professor Franco Caron, Politecnico di Milano, Italy

    Professor Chris Chapman, University of Southampton,UK

    Doctor David Cleland, University of Pittsburgh, USA

    Doctor Nashwan Dawood, University of Teesside, UK

    Professor Mats Engwall, Royal Institute of Technology,Sweden

    Professor Pernille Eskerod, Southern Denmark BusinessSchool, Denmark

    Professor Roger Flanagan, University of Reading, UK

    Professor Carlos Formoso, Universidad Federal do RioGrande do Sul, Brazil

    Doctor J. Davidson Frame, University of Management &Technology, USA

    Professor Roland Gareis, University of Economics andBusiness Administration, Austria

    Doctor Ari-Pekka Hameri, CERN, Switzerland

    Doctor Keith Hampson, Queensland University ofTechnology, Australia

    Doctor Francis Hartman, University of Calgary, Canada

    Otto Husby, Control Bridge AS, Norway

    Simon Indola, Nokia Telecommunications Ltd., Finland

    Doctor Kalle Khknen, VTT Building Technology,Finland

    Professor Daniel Leroy, Universite des Sciences etTechnologies de Lille, France

    Marko Luhtala, Nokia Mobile Phones Ltd., Finland

    Professor Rolf Lundin, Ume Univesity, Sweden

    Professor Jens Riis, Aalborg University, Denmark

    Professor Asbjorn Rolstadas, Norwegian University ofScience and Technology, Norway

    John Russell-Hodge, Synergy International Limited, NewZealand

    Professor Rodney Turner, Erasmus University Rotterdam,The Netherlands

    Veikko Vlil, Industrial Insurance Co. Ltd., Finland

    Doctor Stephen Ward, University of Southampton, UK

    Kim Wikstrm, bo Akademi, University, Finland

    Doctor Terry Williams, Strathclyde Business School, UK

  • Table of Contents

    Industry FocusedEditorial: Management Across the Organisation ....................................................... 4Karlos A. Artto, Editor-in-Chief, Project Management, Finland

    Quest for Team Competence .................................................................................. 10Francis Hartman, University of Calgary, CanadaGreg Skulmoski, University of Calgary, Canada

    Applied Project Risk Management - Introducingthe Project Risk Management Loop of Control ....................................................... 16Martin Elkjaer, PricewaterhouseCoopers, DenmarkFinn Felding, Denmark

    Major Risks in ERP Implementation ...................................................................... 26Jari Vlimki, Andersen Consulting, Finland

    IPMA Research: PM-Competence of the Project-oriented Society ......................... 28Roland Gareis, University of Economics and Business Administration, AustriaMartina Huemann, University of Economics and Business Administration, Austria

    Software Project Management - Software by Committee ........................................ 30Matt Weisfeld, preEmptive Solutions, USAJohn Ciccozzi, United States Patent and Trademark Office, USA

    Development of a Project Simulation Game............................................................ 37Juan L. Cano, University of Zaragoza, SpainMara J. Senz, University of Zaragoza, Spain

    ResearchThe Assessment of Client Satisfaction in the Client-ProjectManager Relationship: An Expectations - Artefact Model ....................................... 42Mike Browne, University of Ulster, Northern IrelandSean O'Donnabhain, South Africa

    Organizational Change as a Project ......................................................................... 50Antti Salminen, Helsinki University of Technology, FinlandHarri Lanning, Helsinki University of Technology, Finland

    Factors Impeding Project Management Learning ..................................................... 56David L. Hawk, New Jersey Institute of Technology, USAKarlos Artto, Helsinki University of Technology, Finland

    A Model for Supplying with Constrained Resources inProject Management under Random Disturbances ................................................. 68V.I. Voropajev, Russian Project Management Association, RussiaS.M. Ljubkin, Russian Project Management Association, RussiaD. Golenko-Ginzburg, Ben-Gurion University of the Negev, IsraelA. Gonik, Ben-Gurion University of the Negev, Israel

    A Multi-Criteria Framework for Competitive Bidding ............................................ 74E. Cagno, Department of Mechanical Engineering, Politecnico di Milano, ItalyF. Caron, Department of Mechanical Engineering, Politecnico di Milano, ItalyP. Trucco, Department of Mechanical Engineering, Politecnico di Milano, ItalyA. Perego, Department of Mechanical Engineering, Universit degli Studi di Brescia, Italy

    Book ReviewsManaging Change in the Workplace - a 12-step program for success ...................... 80Ralph L. Kliem and Irwin S. Ludin

    Project Management: Planning and Control Techniques ......................................... 81Rory Burke

    Project Management Association FinlandCorporate Members ................................................................................................ 82

    Board 1999 ............................................................................................................. 83

  • Page 4

    EDITORIAL KARLOS A. ARTTO

    Management Across theOrganisationKarlos A. Artto, Editor-in-Chief, Project Management

    Keywords: Project Management, Project Business, Project Company, Project-oriented Company, Corporation Management, Organizational Model for ProjectManagement

    A major new challenge in projectized industry will be how to organize project-oriented companies that applyprojects as their major business vehicles. There is an increasing discussion of how projects relate to manage-ment of the company as a whole. The business aspect is emphasized. This editorial provides an organizationalview on project management that widely covers aspects of managing corporate business. The organizationalmodel is a new construct that puts project management in place and links it to related management activitiesin different organizational levels.

    Management by ProjectsA major new challenge in projectizedindustry will be how to organize project-oriented companies that apply projectsas their major business vehicles (Arttoet. al. 1998). While companies devel-op appropriate practices in project busi-ness, other organizations e.g. in the pub-lic sector develop either their projectlevel activities to boost their temporaryefforts, or whole organization level'management by projects' related issues.'Management by projects' as an organi-zation's way to conduct its work andtasks in a project form is discussed ine.g. Turner (1993) and Gareis (1994,1996).

    Managing Business by ProjectsThere is an increasing discussion of howproject management relates to manage-ment of the company as a whole. Bothindustries and the academic communi-ty has realized that projects must belinked in a concrete way to their con-text i.e., to company's strategy and en-tire management application of the cor-poration. This trend is reflected by se-lection of topics in three importantevents around the beginning of the newmillennium: Nordnet'99 conference in1999 in Helsinki, Finland; IRNOP 2000

    conference in Sydney, Australia, andIPMA 2000 world congress in London,England. The whole 'Managing Busi-ness by Projects' theme selected forNordnet'99 conference relates to theorganizational business context (Artto,Khknen, Koskinen 1999). Similarorientation is reflected by the IRNOPconference interest areas: Globalproject collaboration; projectized com-panies; projects and strategic alliances;multi-project contexts; and working lifein a projectized society (IRNOP 2000).Further, the management across theorganization theme is also present in astream of the IPMA world congress heldin the beginning of the new millenni-um (IPMA 2000).

    IntroductionThe rationale for this editorial is to con-struct a concrete description of the busi-ness setting and project managementsetting in a project-oriented company.The specific discussion is directed toconcern project companies that sell anddeliver projects to their customers.However, the description can be con-sidered as applicable to any project-ori-ented organization that conducts atleast some fraction of its operations inproject form. To provide a concrete ba-

    sis of which issues project managementmust concern in order to cover the busi-ness in a project company, the paperconstructs and introduces an organiza-tional model for project management.The organizational model is a new con-struct with the purpose of positioningproject management and its links to re-lated management activities in differ-ent organizational levels.

    Project business and managementof project companies is a new area withonly limited amount of reported stud-ies. The purpose of this editorial is tointroduce a new organizational modelwith appropriate company managementissues at different organizational levels.The organizational model constructedenables understanding of different lev-els and dimensions of project-orientedmanagement applications in corpora-tions. In order to enable an analysis thatcan be linked to existing organization-al levels and responsibilities in compa-nies, the paper uses the basic organiza-tional hierarchy defined in Artto,Khknen, Pitknen (1999), but origi-nally associated with the performancepyramid discussion of Lynch and Cross(1991). The four-level pyramid linksstrategy and operations by translatingstrategic objectives from the top down- based on customer priorities - and

  • Pro j e c t Manag emen t Vo l . 5 , No .1 , 1999 Page 5

    measures from the bottom up. At thetop of the pyramid, a vision for the busi-ness is articulated by senior manage-ment. To supplement the organizationby projects, the organizational hierar-chy is further extended by project proc-esses at the operative level.

    An organizational model is intro-duced that widely covers aspects ofmanaging corporate business. Byputting project management in place inthe organizational context, the papersimultaneously discusses the diversemore narrow but well-known interpre-tations of project management contentand related applications in companies.In order to supplement the organiza-tional view by including projects to theorganizational overview, an extendedproject process is introduced first. Thiseditorial attempts to extend the per-spective on project management fromthe conventional project managementarea in many respects.

    Existing Definitions of ProjectProcessesThe project management literature in-troduces different application area spe-cific project processes - or project lifecycles (see e.g. PMBOK 1996, Chap-man, Ward 1997). The reported lifecycles are typically illustrated by projectprocesses that range from project initi-ation to project closeout. The perspec-tive is often limited to effective man-agement of project execution only.Many project companies follow thewell-known project execution contextby choosing development of projectexecution related procedures as prima-ry targets for project-oriented businessdevelopment. Development of projectexecution and project management isoften justified as development of coreprocedures for manufacturing the con-crete final deliverable that is finallyhanded over to the customer. Howev-er, for a project company that sells anddelivers projects to their customers, justmere development of project executionor project management does not suffice.The wider business-oriented perspec-tive on project process development isdiscussed in the following. Further, anorganizational model of a project com-pany is elaborated. Despite the specificdiscussion concerning pro...

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