collaborative arrangements

262 Pages·2015·5.72 MB·English

COLLABORATIVE

PROJECT PROCUREMENT
Derek H.T. Walker, PhD, MSc
ARRANGEMENTS
Beverley M. Lloyd-Walker, PhD
COLLABORATIVE
Large projects, especially in the construction and infrastructure sectors, involve
collaborations of many different types, such as built–own–operate, public–private
partnership, or competitive dialogue. This monograph details the authors’ research
on the types of collaborative projects. The research undertaken for this book PROJECT PROCUREMENT
responds to the need for a taxonomy of relationship-based procurement
approaches, a particular type of project alliancing in need of standardization.
ARRANGEMENTS
Recommendations are made based on interviews with 36 subject matter experts
from several countries, as well as an extensive literature review; the results
presented in this study were guided by the following research questions:
• What are the fundamental characteristics of emerging relationship-based
forms of project procurement?
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• Do these forms vary in different parts of the world, and if so, in what ways? O
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• What specific knowledge, skills, attributes, and experience required A
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to deliver such projects are currently underdeveloped or missing from O
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traditional project managers’ knowledge and skill sets? A
T
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• How may any identified gaps be bridged? V
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P
Drawing on theoretical literature in the areas of project management, business, R
O
and human behavior studies, the research flows from the need to not only have J
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clearer definitions of the characteristics of project procurement forms, but also C
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from the need to identify the desired characteristics required of project managers P
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delivering these projects. O
C
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Of interest to project owners, project management practitioners, and academics, R
E
this book will help readers gain a better understanding of how successful M
E
project managers could be identified, compared to the current competencies, N
T
and improved based on recommendations, adding further to the basis that
A
project management is a transformational, co-generated learning process. R
R
A
N
G
E
M
ISBN: 978-1-62825-067-1 U.S. $34.95
E
N
T
S
Derek H.T. Walker, PhD, MSc
Beverley M. Lloyd-Walker, PhD
CPPA-Cvr1-wSpine_R3.indd 1 4/1/15 12:07 PM
Project Management Institute
C P
ollaborative rojeCt
P a
roCurement rrangements
Derek H.T. Walker, PhD, MSc, Grad Dip (Mgt Sys)
Professor of Project Management
School of Property, Construction and
Project Management, RMIT University
Melbourne, Australia
Beverley M. Lloyd-Walker, PhD, Grad Cert (Change Mgt
AGSM), Grad Dip Info Mgt, Grad Dip Post Sec Ed, BBus
Centre for Integrated Project Solutions (CIPS),
RMIT University,
Melbourne, Australia
Library of Congress Cataloging-in-Publication Data
Walker, Derek H. T.
Collaborative project procurement arrangements / Derek H.T. Walker, PhD, MSc, Grad Dip (Mgt Sys), Professor of Project Management, School
of Property, Construction and Project Management, RMIT University, Melbourne, Australia, Beverley M. Lloyd-Walker, PhD, Grad Cert (Change
Mgt AGSM), Grad Dip Info Mgt, Grad Dip Post Sec Ed, BBus, Senior Lecturer, Victoria University, Melbourne, Australia.
pages cm
Includes bibliographical references.
ISBN 978-1-62825-067-1 (pbk. : alk. paper) -- ISBN 1-62825-067-4 (pbk. : alk. paper) 1. Project management. 2. Industrial management.
3. Personnel management. I. Lloyd-Walker, Beverley M. II. Title.
HD69.P75W345 2015
658.4’04--dc23
2014048227
ISBN: 978-1-62825-067-1
Published by: Project Management Institute, Inc.
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10 9 8 7 6 5 4 3 2 1
ii
Table of Contents
The research question ....................................................................................................................xiii
Context of the research ..................................................................................................................xiii
Brief overview of the methodology ...................................................................................................xiii
Brief Overview of the Findings and Application for Practice ..................................................................xiv
Chapter 1 Introduction .................................................................................................................... 1
The Purpose of the Research ..................................................................................................................................................1
The Research Approach .........................................................................................................................................................2
Fundamental Introductory Project Procurement Concepts .....................................................................................................4
Literature Supporting RBP Analysis ......................................................................................................................................5
Chapter 1 Summary ................................................................................................................................................................6
Chapter 2 Introduction .................................................................................................................... 7
Project Characteristics ...........................................................................................................................................................7
The Shenhar et al. Diamond Perspective: NCTP .............................................................................................................7
The Turner and Cochrane Four-quadrant Perspective .....................................................................................................9
Projects from an Organizational Learning Process Perspective .......................................................................................9
Projects from an Identity Perspective ............................................................................................................................10
Projects from a Complex Product-Services Perspective ........................................................................................................12
Project Life Cycle Theory .....................................................................................................................................................13
A Linear Perspective .....................................................................................................................................................13
A Recursive Perspective ...............................................................................................................................................15
Project Procurement Forms ..................................................................................................................................................16
Traditional—Segregated Design and Delivery Procurement Forms ...............................................................................17
Focus on Integrated Design and Delivery Procurement Arrangements—Emphasising Planning and Control ...............19
Focus on Integrated Project Teams—Emphasizing Collaboration and Coordination .....................................................24
Beyond the ”Iron Triangle” Performance Implications .........................................................................................................37
Triple Bottom Line Implications ....................................................................................................................................37
Corporate Social Responsibility Implications ................................................................................................................39
Balanced Scorecard and other Performance Implications ..............................................................................................40
Chapter 2 Summary ..............................................................................................................................................................41
Chapter 3 Introduction ...................................................................................................................43
The Business Justification for Outsourcing...........................................................................................................................43
The Economic Logic ......................................................................................................................................................43
The Strategic Logic........................................................................................................................................................44
The Tactical/Pragmatic Logic ........................................................................................................................................45
Governance Fundamentals ...................................................................................................................................................46
Governance Concepts and Definitions ...........................................................................................................................46
Organizational Structures for Governance .....................................................................................................................47
Transparency and Accountability ..................................................................................................................................49
Ethics and Governance..................................................................................................................................................50
Complexity Implications ......................................................................................................................................................52
Tame, Messy, and Wicked Problems ..............................................................................................................................52
Forms of Complexity......................................................................................................................................................52
Responding to Complexity .............................................................................................................................................53
Chapter 3 Summary ..............................................................................................................................................................55
iii
Chapter 4 Introduction ...................................................................................................................57
Trust and Commitment .........................................................................................................................................................57
Elements and Models of Trust .......................................................................................................................................57
The Trust Environment ..................................................................................................................................................60
Collaboration Frameworks....................................................................................................................................................62
Co-learning and Organizational Learning ......................................................................................................................63
Perspective Taking ........................................................................................................................................................71
Social Capital ................................................................................................................................................................72
Strategic Human Behavior Aspects ......................................................................................................................................74
Managing People Across RBP Forms ............................................................................................................................74
Project Manager and Alliance Manager Capabilities .....................................................................................................76
Selecting, Inducting and Redeploying Team Members ..................................................................................................77
Employee Rewards ........................................................................................................................................................78
Performance Management and Review Processes..........................................................................................................80
Concluding Comments...................................................................................................................................................80
Competency Classification ...................................................................................................................................................81
PMI Competency Framework ........................................................................................................................................83
Alliancing Association of Australasia (AAA) Profiling Professional Excellence ............................................................86
Innovation Competencies ..............................................................................................................................................92
Chapter 4 Summary ..............................................................................................................................................................95
Chapter 5 Introduction ...................................................................................................................97
The Study Approach.............................................................................................................................................................97
The Researchers’ Perspective and Worldview ...............................................................................................................98
The Data and Information-Gathering Approach ..........................................................................................................100
Validation Approach ....................................................................................................................................................101
Data and Information resources..........................................................................................................................................102
Government and Industry Reports ...............................................................................................................................102
Reflections on the Literature .......................................................................................................................................102
Interviews with Academics and Practitioner SMEs .....................................................................................................103
SME Insights from our own Past and Current Research ..............................................................................................103
Chapter 5 Summary ............................................................................................................................................................104
Chapter 6 Introduction .................................................................................................................105
Emerging Forms of Collaboration Terms ............................................................................................................................105
Collaboration as Four Orders of Project Team Collaboration ..............................................................................................107
An RBP Wittgenstein’s Family Resemblance Model ..........................................................................................................113
Details of Collaborative Arrangements Skills .....................................................................................................................123
Project Management KSAE .........................................................................................................................................128
Business Solutions KSAE ............................................................................................................................................129
Relational KSAE .........................................................................................................................................................131
Chapter 6 Summary ............................................................................................................................................................134
Chapter 7 Introduction .................................................................................................................135
Mind the Gap! - Identifying and Bridging KSAE Gaps.......................................................................................................135
Emerging Trends, the Way Forward ....................................................................................................................................137
Implications for PM Education and Skills ..........................................................................................................................138
Implications for the Project Owner (PO) and POR Education and Skills Development ...............................................138
Implications for Project Managers and their Team Members’ Education and Skills Development ...............................139
Chapter Summary ...............................................................................................................................................................140
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Appendix 1 – Resource Sources ......................................................................................................143
Ethic Plain Language Statement and Questions Asked ......................................................................................................152
Meta study Interview Instrument ........................................................................................................................................153
Case Study Interview Guide ...............................................................................................................................................153
Case Study Interview Guide – Program Alliance Leaders ..................................................................................................154
Case Study Interview Guide Project Alliances ...................................................................................................................155
Appendix 2 – Details of Data Coding for the Wittgenstein Model ...........................................................157
References ..................................................................................................................................225
Contributors................................................................................................................................247
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Acknowledgments
We would like to thank and acknowledge the Project Management Institute (PMI) for generously funding the grant
“Understanding Relationship-Based Procurement” for part of our research. We would also like to thank and
acknowledge the Australian Research Council (ARC) for funding part of this research under the ARC Linkage Grant
LP110200110 to gather data in parallel with the PMI grant, and to thank the Alliancing Association of Australasia
(AAA) for their funding of the study “Profiling Professional Excellence in Alliance Management in 2010.” This book
draws upon the AAA original work in the light of the PMI and ARC research studies.
We also would like to acknowledge and thank Mr. Alain Mignot who was CEO of the AAA until its amalgamation
with Infrastructure Partnerships Australia (IPA). He was an original industry research collaborator of ours whose
intellect, insights, and support, as well as his inspiration has been a significant driving force for much of the research
into alliancing in Australasia.
We also acknowledge and thank all academic and practitioner subject matter expert participants who generously
gave their time. We would especially like to thank Dr. Mattias Jacobsson and Dr. James Harley who participated as
part of our team in data gathering and analysis as part of the ARC grant and provided insights that contributed to this
book. Dr. Jacobsson also provided valuable specific feedback on the draft. Without the contribution of our research
collaborators for this book and the practitioner participants who generously gave us on average an hour of their valu-
able time, this research would not have been possible.
vii

Contents
Figure 1 – Project Management Theory Aspects ...........................................................................................................................8
Figure 2 – Decision Stage Gate Reference Model (Source: Walker and Lloyd-Walker, 2012b, p3) .............................................14
Figure 3 – Forms of project procurement Discussed in this Section ............................................................................................16
Figure 4 – JV Facilitators and Drivers for JV Success (Source: Johannes 2004, p179) ...............................................................22
Figure 5 – The Ambiance of a Project Alliance (Source: Lloyd-Walker and Walker 2012, p2) ...................................................32
Figure 6 – Value of Project Success (Adapted from: Shenhar, Dvir, Levy and Maltz 2001, p717) ...............................................38
Figure 7 – Business Theory Chapter Structure ............................................................................................................................44
Figure 8 – Governance Elements (Source: Adapted from Walker et al., 2008b, p128) ................................................................47
Figure 9 – Organizational Design ................................................................................................................................................48
Figure 10 – Ethical Dilemma Model (Source: Walker and Lloyd-Walker, 2012a, p7) .................................................................51
Figure 11 – A Johari Oriented Cynefin Typology of Project Awareness .......................................................................................54
Figure 12 – Human Behavior Theory Aspects Chapter Outline ..................................................................................................58
Figure 13 – An evolving Model of Trust and Commitment ..........................................................................................................58
Figure 14 – A systems View of Culture (Adapted from: Rowlinson, Walker and Cheung, 2008, p279) .......................................61
Figure 15 – Collaboration through co-learning ...........................................................................................................................67
Figure 16 – System Dynamics Example (Source: Peansupap, 2004, p284) .................................................................................67
Figure 17 – Relationships of CoP between organizations (Source: Peansupap, 2004, p238) .......................................................68
Figure 18 – Social Capital in Context .........................................................................................................................................73
Figure 19 – Illustrated Example of a competence (Source adapted from: PMI, 2007, p17) .........................................................84
Figure 20 – Illustrated Example of a personal competence (Source adapted from: PMI, 2007, p25–26) .....................................85
Figure 21 – Alliances Managers KSAE (Source: Walker and Lloyd-Walker, 2011a, p8) .............................................................87
Figure 22 – Innovation and Collaboration Linkages ....................................................................................................................93
Figure 23 – The Research Study Approach Chapter 5 Mindmap ................................................................................................97
Figure 24 – Findings and Models Chapter Mindmap ................................................................................................................106
Figure 25 – Categorizing Collaboration Forms of PM Delivery (Adapted from (Walker and Lloyd-Walker, 2013, p9) ...............108
Figure 26 – Possible Collaboration and Integration Forms for Projects .....................................................................................111
Figure 27 – An RBP Wittgenstein’s Idea of Family-resemblance ..............................................................................................114
Figure 28 – Visualization of Project Partnering Based on the Model’s 16 Elements (5 5 Very High) .......................................116
Figure 29 – Project Decision Making in Uncertainty ................................................................................................................127
Figure 30 – Study Conclusions Mind Map ................................................................................................................................136
Table 1 – Relevant Literature .......................................................................................................................................................5
Table 2 – Partnering Essentials...................................................................................................................................................26
Table 3 – Dimensions of culture (Source: Adapted from Rowlinson et al., 2008, p294–295) ......................................................62
Table 4 – Project collaboration and stickiness of knowledge transfer..........................................................................................65
Table 5 – PM Expertise, competence and knowledge (Source Walker, Cicmil, Thomas, Anbari and Bredillet, 2008a, p23) .......82
Table 6 – T hree Experience and Seven Characteristics/Attributes Required of AMs (Source: Walker and
Lloyd-Walker, 2011a, p12–15) ....................................................................................................................................89
Table 7 – CMM of Collaborative Innovation ................................................................................................................................94
Table 8 – Our Research Perspective and Worldview .................................................................................................................100
Table 9 – RBP Terms used globally ..........................................................................................................................................107
Table 10 – Relationship Intensity of Various RBP Forms .........................................................................................................112
Table 11 – Wittgenstein’s Family Resemblance Elements for Platform Foundational Facilities for RBP ..................................117
Table 12 – Wittgenstein’s Family Resemblance Elements for Behavioral Factors for RBP .......................................................119
Table 13 – Wittgenstein’s Family Resemblance Elements for Processes, Routines and Means for RBP ...................................121
Table 14 – RBP Forms Mapped to Wittgenstein Model Element Characteristic Measures ........................................................124
Table 15 – Major RBP Clusters Similarities and Differences by Order of Collaboration ...........................................................125
Table 16 – PM KSAE Summary of Emphasis by RBP Approach...............................................................................................130
Table 17 – Relational KSAE Summary of Emphasis by RBP Approach ....................................................................................132
Table 18 – Wittgenstein Model Theme 1: Motivation and Context Extract ................................................................................133
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