INTERNATIONAL CONSTRUCTION BUSINESS & MANAGEMENT SYMPOSIUM 2011

21 – 23 SEPTEMBER 2011

COLLABORATING TO WIN: CREATING SUSTAINABLE RESULTS

FOR JOINT VENTURES

Author(s):

Tahir Hanif - PhD Student, Kingston University London /

Project Control Specialist, Qatar Public Works Authority (Ashghal)

Professor Mukesh Limbachiya - Head of School of Civil Eng. & Construction, Director of Sustainable Technology Research Centre, Kingston University - London

Alan Ellis - Course Director MSc Programmes, School of Civil Eng. & Construction, Kingston University - London

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PRESENTATION OUTLINE Introduce a framework for Joint Ventures The reasons behind it How it is implemented? How it is monitored? How all participants benefit from it? Q&A

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ROLE OF THE INDEPENDENT PM CONSULTANT

To provide objective and unbiased expertise Project management Subject Matter Expert Emotionally Intelligent Politically astute Remuneration linked to Joint Venture performance To work alongside the Joint Venture Project Manager

Stage 1 Pre-

launch

Stage 2Launch

Stage 3

Implementat

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Stage 4

Close Out

Remuneration - Time Charge Remuneration - Linked to KPIs

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CREATING THE RIGHT ENVIRONMENTKey Stage Overview Lead Person JV

Directors / JV Board

PM Consultant

JV Project

Manager

Team members

1. Pre-Launch Agreeing the context within which the project will be launched

PM Consultant

2. Project Launch Make everyone aware of the project and how it will be managed

PM Consultant

3. Project Implementation

Monitor progress take corrective action(s)

JV Project Manager

4. Project Close Out Learn from success(es) and failure(s)

PM Consultant

1. BUILD TRUST2. AGREE WHAT NEEDS TO BE DONE3. PUTTING IN PLACE THE RIGHT PROCESSES / PROCEDURES4. MEASURING PERFORMANCE

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THE NEED TO ESTABLISH CLEAR LINES OF COMMUNICATION

PM

Core Project Team

Executive Management

Team

Joint Venture Partners

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STAGE 1 – PRE LAUNCH

Stage 1 Pre-launch

Stage 2Launch

Stage 3Implementation

Stage 4Close Out

Produce the JV Project Management Strategy

JV PM Strategy sign off by JV Partners

Prepare the draft Project Management Plan (PMP)

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STAGE 2 - LAUNCH

Stage 1 Pre-launch

Stage 2Launch

Stage 3Implementation

Stage 4Close Out

PMP sign off by JV Project Manager

Formally launch the Project Management Plan (PMP)

Ensure that everyone is clear on their role & key responsibilities

Provide guidance & training in the use of processes and procedures

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STAGE 3 - IMPLEMENTATION

Stage 1 Pre-launch

Stage 2Launch

Stage 3Implementation

Stage 4Close Out

Develop the Key Performance Indicators (KPIs)

Implement them and measure performance

Make sure everyone is aware of how much progress is being made

Mentor & Coach staff so that the right performance levels are achieved

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DEVELOPING KPISStrategy Map

Financial Customer Internal Learning & Growth

Invoice and pay on time lNeed to manage the costs

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Manage Client satisfaction lNeed to manage the schedule

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Retain key staff lManage risks l

Balanced Score Card

Measure TARGET

Nr of days invoice overdue 5 days

Track using CPI (Cost Performance Index)

1.0

Regular monthly reporting Zero Days

Track using SPI (Schedule Performance Index)

1.0

Attrition rate Zero

Manage RAG status RAG per month

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STAGE 4 – CLOSE OUT

Stage 1 Pre-launch

Stage 2Launch

Stage 3Implementation

Stage 4Close Out

Workshop with key personnelDocument what went well and what

did not workUse the learning from this project

for future projects ... where applicable

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SUMMARY Appoint an independent PM Consultant PM Consultant acts as SME, Mentor and

Coach Link remuneration to project performance PM Consultant works alongside the JV Project

Manager Build trust and greater cooperation through

transparency and objectivity

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RECOMMENDATIONS Benchmark project data through a third party

independent body so that REAL lessons can be learned

Create a forum for JV companies where ‘learning’ can be shared / views exchanged

Create a ‘league table’ for the top performing Joint Ventures ... create a sense of competition