Project+Management+UG

Owners the firm agent power knowledge ethics moral

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: he Firm, “agent” δ Power, knowledge ethic’s, moral and competences Agent α Competitiveness ε Baying and bargaining P Market Social and institutional environment γ Needs and conformance Indicators Operator β,Market force Global Owner National Owner Power, knowledge ethic’s, moral and competence δ P Social and institutional environment Baying and ε bargaining α Global supplier market Indicators Competitiveness Market products β,Market force Market supply . dic . InndicCompetitiveness I β,Market force Global product market α Project Organization and Project Contracts Contracts Architecture People Processes Systems Objects Structures A holistic approach and value oriented management holistic of project uncertainties of project Global National Process Customers Financial The owner Project life cycle Idea Plan Project Value Creation Operation Learning HSE Goal/Success criteria/ success factors (indicators) Image by MIT OpenCourseWare. A more rich picture Global Competitors Market National/local Laws and regulation Owners Financial Economical outlook Employee Associations Stakeholders Process Trade barriers Resources/ work force Customers Corporate Uncertainty Owners Business Value Chain Business Value Chain Suppliers Values/beliefs Politics Competence Interest groups HSE Project Location Market Laws and regulation Culture Economy Governments Commodity chain's) O.Granli.oct.2002 Value (Market)creation/NPV Banks Suppliers Technology Political climate Banks Project Organization and Contracts Project What is Corporate Governance? •Governing is enabled by a series of properties in the strategic system selected for planning and execution of the project, which constitutes what, can be termed as governability. Miller and Lessard (2000) •Corporate governance deals with the ways in which suppliers of finance to corporations assure themself of getting a return on their investment. Shleifer and Vishny (1997) Project Organization and Project Contracts Contracts What is Corporate Governance? • Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the directed distribution of rights and responsibilities among different participants in different the corporation, such as, the board, managers, shareholders and other the board, stakeholders, and spells out the rules and procedures for making rules decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means means of attaining those objectives and monitoring performance, OECD April of monitoring 1999 Project Organization and Contracts The Firm Macro economic policies Competition and product and factor market Legal, regulatory and institutional environment Contract Stakeholders Revenues Governance Value Chain Owner(s) Board Firm Investments Stakeholders Agency Cost Ethic’s Awereness of environmental and social interests Products/ services Value Creation Projects Supply of product/service Governance of Complex Business Models ? Cluster/Network Market Stakeholders pn O B FCEO Market V Ipn Market Capital Investment/enterprise Project Organization and Project Contracts Contracts „ Major organizational archtypes archtypes Archtypes Functional Divisional Matrix Hybrid organization •Projects •Enterprises Project Organization and Project Contracts Contracts Types of project organizations Type of organization •Functional hierarchy •Coordinated matrix •Balanced matrix •Secondment matrix •Project hierarchy Responsibility •Operational areas are responsible •Coordinator, responsibility but no authority •Shared with operational areas •Operations maintain responsibility of assigning resources/personnel •The project manager maintain full responsibility and authority Project Organization and Project Contracts Contracts „ Evolution of Organizations New Business Models Business & Value-Creation Va Frameworks Architecting Future Organizational models models Evolving Robust & Adaptive Robust Organizational Organizational models Moving towards new lean frontier Project Organization and Project Contracts Contracts Old Approach Vertical Current lean Emerging lean Collaborative Virtual team Principal (p) p Main Contractor (c) p c c s s Supplier (s) Trust p cs Project Organization and Project Contracts Contracts Traditional Approach Company Function Stable Input Function Function Stable Product Stable Intermediates Stable Process Stable Process Stable Process “Old” Approach Prime “Emerging” Lean “Current” Lean Rigid vertical interfaces and control Prime Collaborative with rigid organizational interfaces Virtual Team w/o boundaries Prime Key Suppliers Key Suppliers Subtiers Subtiers Arm’s length; interfaces totally defined and controlled Collaborative; but constrained by prior workshare arrangements Key Suppliers Subtiers Collaborative and seamlessly integrated, enabling architectural innovation ARCHITECTURAL INNOVATION: Major modification of how components in a system/product are linked together •Significant improvement in system/product architecture through changes in form/structure, functional interfaces or system configuration •Knowledge integration over the supplier network (value stream perspective ; prime-key Source: Bozdogan, LAI suppliers-subtiers; tapping supplier technology base) Project Organization and Project Contracts Contracts Project based c...
View Full Document

This note was uploaded on 07/25/2012 for the course ECON 111 taught by Professor King during the Spring '12 term at CSU Bakersfield.

Ask a homework question - tutors are online