Technology and Society

Opportunities in projects and innovative thinking

Athens, Greece, 16-17 September 2010

Anandasivakumar EkambaramAgnar JohansenOle Jermstad

Andreas Økland

Technology and Society

Background

Theoretical context: What does the paper deal with? Managing uncertainty in projects Uncertainty has an upside potentiality (opportunities) and a

downside potentiality (risks) (Chapman and Ward 2003, Hillson 2002, Ward and Chapman 2003).

Organisational context PUS-project – Practical management of uncertainty from the

perspective of project owners One of the biggest research projects with respect to project

management Major organizations in Norway are involved

Research method

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The best laid plans

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What is really an opportunity in the project perspective – Some interpretations

The project itself is an opportunity – All the choices of solutions deal with producing / providing potential opportunities All the choices are based on maximizing benefits for the key stakeholders

(especially those who finance the project) or utilizing the result later at an appropriate time.

Opportunities deal with producing benefits for the client and the project owner.

Everything that we do is about producing opportunities.

Opportunities are, to a large extent, subjective. Whether a situation / condition is actually an opportunity is based on how a person perceives and experiences the situation – it is about whether the person believes that the situation will give him / her a personal benefit. A particular situation can be considered as an opportunity for the project

owner, a threat for the project, and an opportunity for the end users.

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Characterizing opportunities

Systems perspective

Operational and contextual uncertainty

Setting objectives and making plans

Opportunities as 1st, 2nd and 3rd order consequences

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Project as a system

Project management

Input factors

1st order consequences 2nd – 3rd order consequences

Requirement and need Basic assumptionsBusiness case

Result-objective

Product or service

Result-objective

Product or service

Effect

Effect

Effect

Effect

Effe

ct

Effe

ctEffect

Project

Opportunities

Threats

Time

System-limit

Force that influence the project as a systemO

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ty 1In

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1

Op

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2

Init ia

tive 2

Require energy and action from the project as a system

Op

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3

Initia

tive 3 O

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ort

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ity 4

Init ia

t iv e 4

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1st, 2nd and 3rd order consequences

First order consequences

Second order consequences

Third order consequences

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First order consequences

Delivery of the result (at the completion of the project) Opportunities in the dimension of Money: The project can deliver more for the

same price, or with the predetermined quality at a lower cost. Opportunities in the dimension of Time: The project can deliver the

predetermined product (delivery) faster than planned, without additional cost and with the same quality.

Opportunities in the dimension of quality: The project can deliver a concept that is better than that which was agreed upon earlier, within the same frame of time and cost. Here, one can also consider better and cheaper operation-oriented solutions (e.g.: If the project can deliver the result within the predetermined frame of time and cost, and the result is more optimal to operate, then one can say that the quality of the result / delivery is increased with respect to what was determined earlier.

During the course of the project Positive effects for those who are appointed to carry out the project.

These individuals not only contribute to deliver products / services, but also learn something exciting and experience the happiness of working with clever colleagues, etc.

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Example of the 1st, 2nd and 3rd order consequences – opportunities

Project First order consequences (Result-objective)

Second order consequences (Effect-objective)

Third order consequences (Society-objective)

The Opera house New, beautiful opera house.

A modern building where opera shows can be arranged.

Experience that the involved organizations gain – experience of constructing such a building.

Tourism in Oslo / Norway

Town-development – Bjørvika

Introducing a new IT-based system for processing salary and traveling expenses

IT-based system installed in 25 computers

Better operation, better service, reduced need for employees to process salary and traveling expenses (reduction in workforce)

Tax is reported to right places (sections) at right time

Constructing E6 Østfold

New, modern road Less accidents, faster traffic-movement, shorter queues.

New firms / businesses; f. ex. gas station, grocery store, restaurant

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An example – opportunities in projects

The project E18 Østfold had passed through the QA2

procedure with an estimation of NOK 1.25 bill. When the initial contracts came in, a new analysis showed that the

project, with a low probability, would manage to keep itself within the predetermined frame of cost. (The analysis showed that the cost forecast was NOK 1,35 bill.)

The project carried out a process with the focus on finding potential opportunities that could reduce cost.

In the course of 4 hour time, opportunities were found to reduce the cost more than NOK 150 mill.

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Finding / creating opportunities

Cooperation between project managers and project owners

Attitudes and reflection

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A quote

The real voyage of discovery begins not in seeking new

landscapes but in having new eyes.

- Marcel Proust

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Opportunities and innovative thinking

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Some reflection

The need for future research in project management in the following directions (EPSRC) From research on the lifecycle model of projects and project management

to theories of complexity of project management From projects as instrumental processes to project as social processes From product creation as the prime focus to value creation as the prime

focus From narrow conceptualization to broader conceptualization of the

projects From practitioners as trained technicians to practitioners as reflective

practitioners

Projects as a means to encourage innovative culture in organisations?

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Thank you

Contact information: A. Ekambaram: siva@sintef.no A. Johansen: Agnar.Johansen@sintef.no O. Jermstad: Ole.Jermstad@sintef.no A. Økland: Andreas.okland@sintef.no

Norwegian Center of project Management (NSP): http://www.nsp.ntnu.no/

Questions