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2 Project Management Institute - Arabian Gulf Chapter BOARD OF OFFICERS President - PMI-AGC Mohammed A. Hammad Saudi Aramco Phone: (+966) President - PMI-AGC Oman Nasser Mohd Nasser Al-Hajri National Bank of Oman Phone: (+968) President - PMI-AGC Saudi Arabia Ibrahim L. Khader Zuhair Fayez Partnership Phone: (+9660) President - PMI-AGC U.A.E. Salah Jebara Al Bufalah Zakum Development Company (ZADCO) Phone: (+971 2) President - PMI-AGC Qatar Dr. Khalid Kamal Naji Qatar University Phone: (+974) President - PMI-AGC Bahrain Abdul Majeed Al-Gassab The Bahrain Aviation Fueling Company Phone: (+973 3) President - PMI-AGC Kuwait Hashim M. El-Rifaai Oil Development Company Phone: (+965) SVP - Certification & Education Motaz A. Al-Mashouk Saudi Aramco Phone: (+966) SVP - Membership/LIG Dr. Firas Abouzaki, MRICS, CCE, PSP, EVP, CRA, CCC AlJaber Engineering Doha, Qatar Phone: (+974) Treasurer Sam Kamel Massih, PMP, CCE Saudi Aramco Phone: (+966) SVP Admin & PR Tony Ikhimokpa, Saudi Aramco Phone: (+966) PMI-AGC Secretariat Salim Bhuria Phone: (+966 3) Terry M. Lapardo Phone: (+966 3) Mujeeb Ur-Rehman Phone: (+966 3)

3 GULF PROJECT MAGAZINE CONTENTS ADVANCING THE PROJECT MANAGEMENT PROFES- SION IN THE GULF REGION The Gulf Project Magazine is a professional magazine published quarterly by the Project Management Institute - Arabian Gulf Chapter (PMI-AGC). It is circulated to all PMI-AGC members and about 7,000 copies of the magazine are distributed throughout the Gulf Region. PMI-AGC is a non-profit professional organization set up to promote project management in the Gulf Region by: fostering professionalism in the management of projects, advancing the quality and reach of project management, stimulating project management application to the benefit of the industries, organizations and the public communities we serve. Advertisements We encourage organizations to advertise in this widely read Gulf Project Magazine and leverage its widespread distribution at low cost to gain exposure, increase the reach for their products and services and open new doors of opportunity. Magazine Advertising Rates Whole page: SAR 15,000 (outside back cover); SAR 10,000 (inside back cover); SAR 6,000 (inside); Half page: SAR 4,000; Quarter page: SAR 2,000 For inquiries please call the PMI-AGC office at (+966 3) or Layout and Graphics Design Al-Mohtaraf Assaudi Ltd Join PMI-AGC Today! From the Chief Editor s Desk Welcome Message From the PMI - AGC President PMI - AGC 13th International Conference 2011 The Project Simulation Game Risk Process Basics Take a Minute to Understand and Be Understood A Complex Process in the Construction Sector The Art of Questions Maximizing Project Return on Investment Starting Your Project Management Career SCADA Construction Challenge HSE Management as a Project Management Knowledge Area 2010 in Retrospect 10 Easy Ways to Earn PDUs FEATURES SCADA Construction Challenges in a Desert Environment Successful construction projects require experience in management, design, and in overall project execution.. While planning presents its own set of challenges deserves serious attention, execution during construction phase is the most critical aspect of any project. HSE MANAGEMENT as a Project Management Knowledge Area Due to the immense importance of the subject, HSE management must be included as a separate project management knowledge area.

4 Contributors Abdulla J. Alkuwaiti Saleh Al-Wadei PMI-AGC Making project management indispensable for business results. Abdulla obtained his BSc degree in Systems Engineering from the University of Arizona in 2000 and received his master s degree in project management in He started his career as an HSE engineer and now works as a program manager in a governmental municipality. He is a certified Project Management Professional (PMP) and PMI Risk Management Professional (PMI-RMP) He recently published a book titled Study Guide for the PMI Risk Management Professional Exam. Abdulla can be contacted at alk. Dr. Ian Kennedy Ian is a chartered engineer, Partner and Head of Strategic Asset Management at EC Harris LLP. He is an internationally recognized authority on maintenance optimization and industrial asset management with over 25years experience of delivering improved profitability across global industrial organizations. His areas of specialization include:industrial performance improvement, benchmarking, strategy & transformation, change management, maintenance strategy, maintenance systems, productivity improvement, consulting, and management. Ian currently leads the development and delivery of strategic asset management and maintenance optimization services to global industrial clients in the oil & gas, manufacturing & rail sectors. Khaled Abouzeid, PMP Khaled is a 1996 graduate of Computer Science from the American University In Cairo (AUC) and obtained a Diploma in Sales Management from the same university in Khaled has been a program manager in the PMO department at Environment Agency, Abu Dhabi since Prior to that he worked as a project management practitioner and in the Information Technology and banking sectors for ten years. Hammam A. Saab, PMP Hammam has over 19 years of experience in architectural codes & standards, project management, engineering management, QA/ QC procedures & policies, and in training & career development. He is currently the Director of Engineering Department in the Royal Commission of Yanbu. Hamman holds a Bachelor of Science in Architecture, obtained from the University of Miami, USA in December 1990 and is a certified Project Management Professional (PMP). Saleh is Project Engineer at Saudi Armco. He obtained his Bachelor of Science in Computer Engineering from King Fahad University in 2001 and an MBA from University of Phoenix in His 8 years within Saudi Aramco have been in the following departments: Industrial Security Planning, Information Technology and Pipeline project Department. Saleh is a PMP, CPM, AVS, LSS, CWNA. Dr. David Hillson PMP HonFAPM David is recognized internationally as a leading thinker and expert practitioner in risk management, and he writes and speaks widely on the topic. He specializes in both strategic and tactical risk, with a particular interest in risk psychology. He is active in the Project Management Institute (PMI ) where he received both the PMI Fellow award and the PMI Distinguished Contribution Award, for his work in developing risk management. He is also an Honorary Fellow of the Association for Project Management (APM), and a Fellow of the Institute of Risk Management (IRM). David is a Chartered Manager and was elected a Fellow of the RSA to contribute to its Risk Commission. Manavasi Krishnamurthy Ramesh, BE, MBA, PMP Manavasi holds a Bachelor of Engineering in Civil Engineering, and has more than 26 years of experience in managing the construction of substations and transmission lines for organization s operating within India s energy sector. During his career, Manavasi has managed a diverse range of projects and has also been involved in project management consultancy in the Middle East Josh Nankivel, BSc PM, PMP Josh coaches new and aspiring project managers to achieve their career goals through various publications and training courses. He founded pmstudent.com in 2006 to help himself and others learn more about project management as a discipline and career. He has been managing IT and non-it projects in computing, financial services, telecommunications, and aerospace for over a decade. Josh holds a Bachelor of Science degree in Project Management and he is a certified Project Management Professional (PMP).. He lives in Sioux Falls, South Dakota, USA with his wife and 3 sons. 2 Gulf Project Magazine Advancing the project management profession in the Gulf Region

5 Cornelius Fichtner, PMP Cornelius is a noted PMP expert. He has helped over 12,000 students prepare for the PMP Exam with The Project Management PrepCast and The PMP Exam Simulator. He guides PMI credential holders on earning PDUs with The PDU Insider. A. A. Bou Abbas Bou Abbas holds a B.Sc. in Electrical Engineering from Oklahoma State University, USA. He is currently Team Leader, QA/QC and Quality Management Representative, in the Projects Department of Kuwait National Petroleum Company (KNPC). In the last 18 years he has worked for KNPC in various capacities and supervised the establishment and certification of Quality Management System meeting ISO 9001: 2000 requirements for his company. Venkateswarlu B. Dasigi, PMP Venkateswarlu holds a Bachelor s degree in Metallurgy Engineering from India Institute of Technology, Madras, India and a Post graduate degree in Industrial Engineering from Andhra University. He is currently the QMS & EMS adviser in the Projects Department of Kuwait National Petroleum Company. Venkateswarlu has about 44 years experience of which 5 years was in manufacturing, 12 years in construction project management, 8 years in software project management, and 17 years in project management consultancy. He is a Life Fellow, of the Institution of Engineers India, Senior Life Member, Computer Society of India, Professional Member, American Society of Safety Engineers, Registered as QMS 2000 Principal Auditor with IRCA, London. Stuart.Arndt Stuart Arndt is a Partner of EC Harris and the founding Partner and Country Manager of the Saudi Arabian business. He has over 20 yrs experience in Project Controls, Project Financing & Structured Finance for major projects, including 15 years in the Oil, Gas & Petrochemicals industry. issue

6 Join PMI-AGC Today! PMI-AGC Making project management indispensable for business results. Joining the Project Management Institute-Arabian Gulf Chapter (PMI- AGC) opens you to a world of opportunities for your professional growth and accelerates your project management career success. In a global economy that is as competitive and dynamic as the one we live in today project managers can t go it alone. Turn to PMI membership for the tools and support you need to make your mark on the profession. Become a member and see what PMI can offer you at every stage of your career. PMI Membership is All About Dedication PMI membership signifies that you re serious about your project management career and your professional development. It highlights this dedication to employers, colleagues and stakeholders, giving you an edge in the job market. It also provides you with access to valuable knowledge; networks and resources that help you improve and advance.. Membership Benefits PMI credential exams and renewals. Attendance at PMI global congresses and conferences including AGC conferences. Training classes, seminars and continuing education to sharpen your skills. Tremendous knowledge sharing and networking opportunities with professional peers and fellow project management practitioners. Leadership and volunteer opportunities. Educational informative articles written by your peers, and reviewed by seasoned practitioners. PMI Currently has: Nearly 500,000 members (and the PMI-AGC membership base is currently around 4050) and credential holders around the world. 11 global professional and practice standards which they develop and maintain, and which represent a growing body of knowledge that can be applied to projects. What Makes PMI Certification Special? PMI certifications certify your knowledge and experience in project management so you can be more confident at work and more competitive on the job market, put you on the path of higher career earnings and give you a technical and financial edge. Equally important, business, government and other organizations increasingly recognize the project management is vital to successful outcomes. Of the 5 widely recognized credentials choose the certification that best fits your current expertise and your future career plans and your qualifications. Project Management Professional (PMP) Certified Associate in Project Management (CAPM) Program Management Professional (PgMP) PMI Scheduling Professional (PMI-SP) PMI Risk Management Professional (PMI-RMP) Already Have a PMI certification? Consider earning another PMI certification: Visit: ww.org.certification.aspx. to find out which certification is right for you. Maintain your certification and your edge. Earn and report professional development Units (PDUs) For more details about PMI-AGC membership please visit: or contact the PMI-AGC office at (966-3) or via at aramco.com. 4 Gulf Project Magazine Advancing the project management profession in the Gulf Region

7 From the Editor-in-Chief s Desk Dear readers, Welcome to the first issue of the Gulf Project Magazine in We are extremely pleased to be able to present this magazine to you as a primary vehicle for communication of Project Management advancements, best practices and notable events in the Gulf Region. Tony Ikhimokpa Editor-in-Chief, Gulf Project Magazine. I write to inform you about some of the changes we are making to the magazine. First off, you will have noticed significant improvements in the overall quality of the magazine. You may have also noticed that the name of the magazine has been changed. The new look, quality improvements and new name - Gulf Project Magazine - are further steps forward by PMI-AGC to develop a strong brand image and raise the bar on quality and timely information flow. And you will agree with me that a substantial transformation of this proportion is a sign of the magazine s maturity and relevance. Our goal going forward is simple: to publish the Gulf Project Magazine every quarter, ensure a wider distribution and readership of the magazine and gain a reputable and well-defined standing amongst our readers. Achieving this goal and sustaining our accomplishments thus far, will depend in part on the continued supply of highly engaging articles of sterling quality and value from our members. The year 2011 is off to a good start. I am very excited about its promises and potentials and urge you to rise to the challenges facing your industry in the months ahead, and no less important, to take up the gauntlet to send articles that will help us keep our wide range of readers informed and advance project management in the Gulf Region. We gratefully acknowledge the contributions of all those who have made this and previous publications possible. And to all our members I want to assure you that we are absolutely committed to providing you information that will help improve your ability to manage projects, advance in your project management career and positively impact your organization s bottom line. This, as you know, is in keeping with PMI s strategic intent of making Project Management indispensable for business results. We would as ever be pleased to hear from you. Please send us your any thoughts or comments on how we can serve you better at Best wishes, issue

8 Welcome Message From PMI - AGC President Dear Chapter Members and Conference Delegates, The project management culture in the Gulf Region has undergone breathtaking socioeconomic changes in the last decade even as we expanded our ties and partnerships with a variety of world markets. Indeed it is inspiring to see our region directing oil and natural revenues to major infrastructure projects, developing the higher education sector and establishing world-class universities and institutions for scientific research right here at our door steps. We are also currently witnessing a revolution in our transportation system, telecommunications, medical science, information technology and a host of other industries. All these revolutionary changes are of course in addition to programs aimed at boosting oil, gas and refining capacities throughout the region. And to add icing on the cake, for the first time our region will host the FIFA world cup in PMI-AGC Making project management indispensable for business results. The question therefore is: «are we ready for all of these major expansion initiatives across the region? The boom and bust cycles clearly provided us with many important lessons as well as opportunities. Certainly we can learn from the market volatility we experienced and be better prepared for a dynamic and constantly changing environment in the future. The 13th PMI-AGC International Conference with the theme: Delivering Value and Productivity through Project Management: Lessons Learned from the Boom and Burst Cycles will certainly provide us with tremendous opportunity to learn from recent events. The conference program has been carefully packaged to provide opportunities for project management practitioners and young professionals the opportunity to learn about best practices in the banking sector and financial markets, and the key factors driving supply and demand in other industries. We will host special sessions on emerging trends in Islamic capital markets, and exhaustively discuss other topics such as: green technology, human resources management, lean project delivery, application of project management to health care, government and administration, and best practices in information technology, public transportation, and many more interesting topics! I sincerely encourage all our members and other related professionals to take advantage of this prestigious and highly educational conference. Come join us in a rich knowledge sharing environment. Regards, Mohammed A. Hammad President PMI-AGC. 6 Gulf Project Magazine Advancing the project management profession in the Gulf Region

9 Under the Patronage of His Royal Highness Prince Sheikh Khalifa Bin Salman Al-Khalifa Prime Minister, Kingdom of Bahrain 13 th International Conference 2011 Delivering Value & Productivity Through Project Management Lessons Learned From The Boom & Bust Cycles Register PMI-AGC.com January 24-26, 2011 Gulf International Convention Centre, Gulf Hotel, Kingdom of Bahrain Theme The conference theme is: Delivering Value and Productivity through Project Management: Lessons Learned from the Boom and Bust Cycles. The PMI-AGC 13th Conference provides a unique venue for advancing the Project Management profession, offering a wide international perspective and a variety of networking opportunities. Our goal for the conference is simple, yet bold: to raise awareness and promote participation in the dialog about the impact of globalization and trade liberalization among our members and communities. We have packaged the conference technical programs, and a wide array of topics, to ensure a strong focus on this theme, with a view to highlighting lessons learned from the boom and bust cycles and to stimulate discussions on ways we can leverage the lessons learned to minimize dependence of the region on oil and lay the foundation for a host of non-oil, alternative energy industries to ensure sustainable development in the future. Conference Highlights: Sessions focused on your professional development as a Project Management Professional and will provide you with innovative insights into green technology, lean project delivery & value creation. There will also be special sessions on emerging trends in Islamic capital markets. You ll quickly see there is a wealth of topics to explore. High returns for the time spent. You will walk away from this event with cutting-edge project management tools and techniques and best practices in the banking and finance, IT and telecommunication, public transportation and contracting that you can put to use right away. Improve your knowledge of PMI principles and your project management expertise. We offer sessions that will provide you with opportunities to hone your skills and knowledge of the application of project management principles to novel areas, such as medical and health care, government and administration, and human resources management to keep you abreast of the latest project management tools and techniques to enhance your professional development as a project management professional. Networking: 1,500 delegates from major companies, corporations, as well as prominent individuals from the region and beyond are expected to attend the PMI-AGC 13th Conference. The VIP guests will include top executives from major organizations in the Gulf, which will create a vast networking opportunity. You will have the opportunity to hear how others faced the challenges during the boom and bust cycles, meet and get connected with your peers, and share best practices. Maximum access to Vendors. A wide array of the region s top vendors and contractors in the Project Management community will be on hand to share their knowledge and tools to help set you up for success. Opportunity to take home what you ve learned. You will come away from the Conference refreshed, inspired, your knowledge expanded and your skills sharpened. You ll go home equipped with the tools and new insights you need to stay ahead, and make change happen. The conference will feature an extraordinary lineup of over 40 prominent local and international speakers and presenters covering several technical tracks. issue

10 The Project Simulation Game Simplifying Project Management through Concrete Learning and Use of the Project Book PMI-AGC Making project management indispensable for business results. By Abdulla J. Alkuwaiti The Problem Since 2008, a municipality in the Middle East has adopted a management by projects approach to all its activities and linked all its projects to a strategic plan. The strategic plan contains more than 200 projects ranging from US$50,000 to more than US$200 million. The difficulty is with the project managers, mostly fresh graduates with little or no experience in project management. They jump directly to project To improve training, the PMO conducted extensive research to identify new training methods and decided to provide a training course that is centered on a game that simulated a real-life project. The Method execution and provide excuses for bypassing the project planning stage such as Project management is a dry subject and very difficult to learn, and «Planning is a waste of time and its benefits are minimal in the practical word. The challenge is to present project management (as a science) in an innovative way that grasps the attention of those project managers. The project management office (PMO) started investigating ways to make the project managers practice and implement methodologies and techniques of project management. It was clear that training was needed, but records showed that different project management courses were offered yearly by the training department. After analysis, it was concluded that the way training was conducted failed to transfer the knowledge gained of project management from training manuals to the actual projects, for the following reasons: Failure to address the uniqueness of the municipality. Project managers expressed frustration that what is taught in training courses seldom represents what they face in their day-to-day work. For example, most of the projects in the municipality are done via consultants and contractors, whereas training courses only teach about situations in which the project manager is the one who will design and implement the project. The way that exercises were presented. It was found that few exercises were discussed in training courses, and that the way that they were presented lacked the creativity to catch the project manager s attention. (As one project manager put it, They give you three to four pages of a self-paced case study of a project without even an illustration and expect you to relate to it! ) The amount of information. Project managers complained that the amount of information presented to them was overwhelming and made them think of project management as complex and difficult. To improve training, the PMO conducted extensive research to identify new training methods and decided to provide a training course that is centered on a game that 8 Gulf Project Magazine Advancing the project management profession in the Gulf Region

11 The remainder of the course followed the model in figure 1, where a brief description of a project management subject was given, followed by observing the game model and filling the template related to the discussed subject and, finally, discussing the real-life benefit of the subject. Figure 1: The model of the training course. simulated a real-life project. The use of the game served the following purposes: Focusing on concrete vs. abstract learning. A model of the project was constructed using toys. In this way, the participants could more easily relate to the case study by interacting with the toys directly. Fun and simplicity. The way that the game was designed, using toys, provided a fun atmosphere to the course in general. In addition, training manuals were used as a minimum to avoid any sign of complexity. Competition. Participants were divided into teams to provoke competition. This also enabled the instructor to use group pressure in a good way, where being part of a team made members keen on attending and focusing on the different lectures so that they wouldn t let their team down. Purposely designed plot and using templates as checkpoints. A great deal of thought was put into selecting the game so that participants could relate to it in their day-to-day work. The game was designed in a way that enabled the instructor to go over different elements of project management methodologies in a smooth and logical manner. In addition, the use of templates made it easy for participants to know when they had finished a particular task (which was extremely helpful in discussing the different elements of the project planning stage) The Training The course lasted for 2 days with 17 participants and was started with a brief introduction about project management followed by an introduction to brainstorming and how to conduct its sessions. After that the game was started with a problem statement and teams were created. The case study was about the recent changes in weather conditions in the area which had caused some hurricanes and floods, and the project (i.e., the game) was to build a weather station tower. The remainder of the course followed the model in figure 1, where a brief description of a project management subject was given, followed by observing the game model and filling the template related to the discussed subject and, finally, discussing the real-life benefit of the subject. The topics discussed were the ones that the PMO felt project managers most needed to know; such as scope management, WBS, and time management and risk management planning. To make the course lively and avoid boredom, each topic was discussed for about 1.5 hours on average. The Templates and the Project Book A big emphasis in the course was to fill templates. Templates were designed with the objective that no template would be more than one page long. In addition, templates were arranged in a binder called the Project Book. The Project Book had sections for each part of the project life cycle (from initiation to closeout) with relevant templates placed in each section. The Project Book served issue

12 Figure 2: The Project Template Model PMI-AGC Making project management indispensable for business results. The use of templates was found to be very important because it triggered brainstorming, which in turn triggered communication amongst people interested in the project. Also with each template completed, a better understanding of the project was developed. The model shown in Figure 2 explains the benefits amongst using the templates a very important role; it gave the project managers a sense of the importance of the project planning stage (as it contained the majority of templates). In addition, once a template was completed it signaled the completion of the subject under discussion and gave permission to move to the next one. It should be noted that although working in teams, every participant was asked to fill out his or her own template after conducting a brainstorming with the team, and thus every participant should have a completed Project Book. The use of templates was found to be very important because it triggered brainstorming, which in turn triggered communication amongst people interested in the project. Also with each template completed, a better understanding of the project was developed. The model shown in Figure 2 explains the benefits of using the templates: Observation and Recommendations 1. As expected, using a physical model for the case study proved to be very helpful. It improved the participants brainstorming skills because it helped them imagine what the project would look like by seeing a physical model of the construction site and the tower. It also reduced the abstractness of the game, reducing thereby conflicts and disputes usually generated when different people interpret a written exercise. 2. When designing a game or exercise, be sure of the plot. I remember attending one training course that was also centered on a case study; however, the case study was displayed only on paper and the game did not flow smoothly from one project stage to another. Conversely, in this training, deep thinking was employed to connect the different project management Knowledge Areas to the game so that maximum benefit could 10 Gulf Project Magazine Advancing the project management profession in the Gulf Region

13 The Project Simulation Game be obtained (for example, during execution phase, the participants were handed three proposals from imaginary contractors to construct a weather tower, so that they could implement the selection criteria they defined during project planning phase). 3. Participants liked the templates and found them very useful. This can be attributed to several factors: first, the templates were designed to fit in only one page with the minimal information possible; second, the templates were unique in that they provoked the user to try see things in new ways, for example, the template to develop the project scope required the participant to draw a picture of the scope; finally, the templates were numbered in sequence, which provided a sense of order on how to proceed with filling them (e.g., there were two templates for the project schedule management plan, one to be filled after completion of the WBS and then edited and finalized in another template after the risk management template was completed. This have done to emphasize the fact that project risks have the potential to impact the project schedule baseline). 4. Don t be afraid of simplicity. In the training course, we tried to simplify project management concepts so much that we were afraid that participant would be annoyed by the oversimplification. What we discovered, however, was that many participants were being introduced to the concepts for the first time and asked for more explanation (e.g., on topics such as stakeholder management and even the WBS!). This might be attributed to what is sometimes called the curse of knowledge, which describes the situation in which people become so knowledgeable about a particular subject that they forget how difficult it was to learn it initially. 5. The use of The Project Book gave a concrete meaning to the different stages of the project life cycle. This was especially important to highlight that the initiation and planning stages are important stages worthy of the project manager s attention (remember in the problem statement, project managers in the municipality were bypassing project planning and jumping directly to execution by writing the RFP, the request for proposals to potential consultants). During the course, participants were not allowed to start execution until they filled all the templates in the planning section of the project book. What s Next? Explore the concept of The Project Book further to see if project managers will actually use it in their real projects and what improvement on it should be made. In this paper it was shown that the use of a structured and simple framework (made of templates) has the potential to improve project planning which will definitely have a positive impact on projects progress. In addition, the paper recommends that new methods for training should be tried to increase the awareness of project managers about project management. issue

14 RISK PROCESS BASICS By Dr David Hillson, PMP, HonFAPM PMI-AGC Making project management indispensable for business results. What should a good risk management process cover? Anyone undertaking a risky or important venture should ask themselves eight simple questions: 1. What are we trying to achieve? 2. What might hinder our ability to achieve this? 3. Which of these potential hindrances are most important? 4. What shall we do about them? 5. Have we taken action? 6. Who needs to know? 7. Having taken action, what has changed? 8. What did we learn? These questions describe the steps required to manage risk. They can easily be expanded into a basic risk process, with one process step to answer each question: 1. Getting started (process initiation). Risks only exist in relation to defined objectives, and these are what we are trying to achieve. We cannot start the risk process without first clearly defining its scope and clarifying which objectives are at risk. It is also important to know how much risk key stakeholders are prepared to accept, since this provides the target threshold for risk exposure. 2. Finding risks (risk identification). Once the scope and objectives are agreed, it is possible for us to start identifying risks, which are the things that might affect us, including both threats and opportunities. We should use a variety of techniques to help us find as many risks as possible. 3. Setting priorities (risk assessment). Not all risks are equally important, so we need to filter and prioritise them, to find the worst threats and the best opportunities. When prioritising risks, we could use various characteristics, such as how likely they are to happen, what they might do to objectives, how easily we can influence them, when they might happen, etc. 4. Deciding what to do (risk response planning). Once we have prioritised individual risks, we can think about what actions are appropriate to deal with individual threats and opportunities. Each risk needs an owner who should decide how to respond appropriately. 5. Taking action (risk response implementation). Nothing will change unless we actually do something. Planned responses must be implemented in order to tackle individual risks and change the overall risk exposure, and the results of these responses should be monitored to ensure that they are having the desired effect. Our actions may also introduce new risks for us to address. 6. Telling others (risk reporting). Various stakeholders are interested in risk at different levels, and it is important to tell them about the risks we have found and our plans to address them. 7. Keeping up to date (risk reviews). We have to come back and look again at the risks on a regular basis, to see whether our planned actions have worked as expected, and to discover new and changed risks that now require our attention. 8. Capturing lessons (risk lessons learned). At the end of the exercise we should reflect on and document our experience for the benefit future similar endeavours. This means we will spend time thinking about what worked well and what needs improvement, and recording our conclusions in a way that can be reused by ourselves and others. Any good risk process will follow these steps to ensure that we identify, assess and manage our risks effectively. While they are by no means easy to implement, all of these steps are required for a risk management process to be complete. 12 Gulf Project Magazine Advancing the project management profession in the Gulf Region

15 Take a Minute to Understand and Be Understood By Hammam A. Saab Managing projects is not an easy task. Stakeholders, project schedules, and budgets can be very difficult to manage. Having individuals of different nationalities and backgrounds on your team or on the contractors team can make it a control nightmare. Modern technology enables us to communicate with team members on projects from various locations which are far apart. While communication makes life easier in a way, we must appreciate the challenges that these new forms of communication represent and insist on understanding and being understood in the project management world. Take a minute to understand and to make sure that you are understood. I found that taking the time to understand issues will make them easier to manage. If someone says jump you should ask why, where, when and then how high. Equally, if you want someone to jump you should provide the whys and wherefores. Proceeding with the wrong understanding will create a whole new set of problems. Different people might have different understanding of the same statement. Different people might have different understanding of the same statement. If you schedule a meeting with your team members at 7:30am, some will be there 5 minutes earlier, some will arrive exactly at 7:30am while others will assume 10 or 15 minutes delay is perfectly acceptable. With this in mind, you need to explain your policy very clearly to all the required attendees and emphasize that they be there exactly at 7:30am and stress that anyone who comes in afterwards is considered late. Sometimes if the meeting is of high importance, you would need to ensure that the times on all clocks, watches and mobile phones of the required attendees are synchronized. So you need a status report by the end of the week? Then you should unequivocally specify when you want to receive the report. Some of the team members will bring the report a day before the last day of the week, some will bring it at the last minute of the last day of the week and others will bring it at the beginning of the following week. Therefore, you need to be explicit about the exact time and day when the report is due and what the consequences would be for late submittals. In fact, nowadays you would need to confirm what day is the end of the week in your understanding, especially if you have a cosmopolitan team working in far-flung locations. If you are living in Dubai, it is Saturday; if you are living in Europe it is Friday; and in Saudi Arabia Wednesday is the end of the week. Repeat your point of view, ask for feedback, document it, and always ensure that you take a minute to understand and to be understood. issue

16 PMI-AGC Making project management indispensable for business results. COMMUN 14 Gulf Project Magazine Advancing the project management profession in the Gulf Region

17 ICATION a Complex Process in the Construction Sector By M.K. RAMESH, BE, MBA, PMP Introduction Project communications management includes the processes required to keep all participants both team members and key stakeholders up-to-date on the project s progress. The project communication management processes are also intended to help project managers and project key stakeholders make major project decisions and achieve critical project milestones and project objectives. To achieve a successful outcome, project managers need a vast amount of information, such as expectations, goals, needs, resources, project plans, schedules, status reports, budgets and purchase requests. They also need to communicate this information at regular intervals to all team members and other project stakeholders. This article is addressing the issue of complex matrix involved in the implementation of communication management process in the construction sector. Communication Management- A knowledge area The processes involved in the Project communication Management as per PMBOK Guide 4th Ed; 2008 are: 1. Identify stakeholders 2. Plan Communications 3. Distribute information 4. Manage stakeholder expectations 5. Report performance issue

18 Key Stakeholder Internal Stakeholder External Stakeholder Client (Positive Impact) (Powerful/ Influencer) Site Manager &Team members(civil) (Positive)/ Interest Other Client Departments/ Power& Impact Consultant (Positive Impact) (Powerful) Site Manager (Electrical)- Influence & impact Government statutory Top Management ( Positive/Interest Group) Site Manager( Commissioning ) Impact Authorities ( Power/) Design Consultant- (Civil) Positive/interest Design Coordinator (Civil)- Interest Erection agencies( Positive & Negative / Impact ) Design Coordinator ( Others)- Impact/ influence Health, safety and environment (HSE) Table 1 - Stakeholder identification and analysis PMI-AGC Making project management indispensable for business results. Communication in a project occurs both internally and externally. Project communication travels vertically through the various hierarchies in the organization structure and horizontally among others involved in the Project. Stakeholder Analysis In any project communication, it is of utmost importance to identify and analyze the stakeholders involved in the project. For construction projects, the process is manifold depending upon the industries for which the construction project is designed. For example, the stakeholders involved in the construction of sub-station project are: 1. Key stakeholders: client, consultant, top management, design consultant, erection agencies & HSE team 2. Internal stakeholders: site manager, team members (civil erection), site manager (electrical and commissioning), design coordinator (civil & electrical) 3. External stakeholders: client other departments & government statutory authorities Communication in Construction Project why it is complex? The process of managing a project s communications should keep all participants - both team members and all key stakeholders - upto-date on the project s progress. Project teams often lack the communication skills that are so vital to achieve project goals. There are so many components, expectations, deliverables and ultimately organizational success, carried through in our projects, it is surprising that some organizations still haven t done anything about this and there can be many reasons for this. One of the reasons for communication becomes so complex is that the project members in a construction project have communication channels and interact with other members directly without using the approved communication models. Communication channels which can be established at project sites: 1. Project manager to client 2. Project manager to suppliers 3. Project manager to team managers (civil, electrical & commissioning) 4. Project manager to design coordinators, design consultant and site consultant 5. Project manager to erection agencies 6. Site manager to erection agencies 7. Site manager to team members 8. Erection agencies peer communications 9. Erection agencies to their own team members 10. Amongst the work force Factors contributing to ineffective communication: Project communication plan is not in place The methods of communication between stakeholders are not well defined. The project manager should decide what type of communications is required and at what stages Inadequate co-ordination of the design coordinator with project stakeholders resulting in design input and output shortcomings. Communication channels established between erection agencies Direct communication channels between the project managers and the entire workforce Communication channels established directly between top management and shop level personnel. 16 Gulf Project Magazine Advancing the project management profession in the Gulf Region

19 Communication channels established by client with erection agencies Analysis of communication complexities of stake holders: Project Manager: Having the project manager responsible for the development of the project communication plan and methods is a known best practice. But during the execution stage most project professionals seldom adhere to the project communications plan and allow cross-communication to take place. Per the approved communication plan the project manager has interactive communication with almost all the key stakeholders and limited push communication with other members within the approved plan. However, often we found that the project manager does not have confidence in the team members and to cross-verify facts they create a loop communication system with other members/stakeholders. On an ad hoc basis this approach may be effective but in the long run deviating from the communication plan will almost always create confusion and frustration among project team members and stakeholders. How to overcome this complex situation In the construction project the best practices of communication channel is redefined below which is self explanatory to avoid complex situation: Conclusion: From the above one can conclude that for successful project implementation: The site manager should not communicate with all stakeholders in a construction project as issue

20 Top Management (Interactive) External Agencies Interactive Push Client Consultant Interactive Project Manager (Interactive) Health, Safety & Environment (HSE) Interactive Team Members Site Managers Design coordinator Interactive Push Push Interactive PMI-AGC Making project management indispensable for business results. Erection agencies Figure II- Illustration of Communication Channels to be maintained by Project Manager as Industrial Best Practice this is not consistent with project management principles. Project communication should flow from the project manager. So it is the project manger s responsibility to ensure that the full loop of communication is achieved by defining the owners for channels of communication, direction for sharing appropriate information, timing, method, format and most importantly reducing communication noise while focusing on the stakeholders objectives. Design Consultant Supply Division -Elect & Mechanical to tap in to all information flow channels and provide necessary feedback. The format and frequency of communication at various levels shall be agreed upon by all stakeholders. No cross communication channel should be allowed without providing for appropriate feedback to all concerned. A robust communication plan should be developed and approved at the inception stage of project and be discussed and finalized with all stakeholders. It s not essential that all information pass through the project manager, but to stay in control he or she must be able 18 Gulf Project Magazine Advancing the project management profession in the Gulf Region

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