17/09/2022

Advance Project Management

(On-the-job Training 02)

Session 2:
Project Challenges &
Recommendations

Presented by: Prof. Roque Senga, IntPE, Eur Ing, IPMA-B

Chairman, IPMA Philippines
CEO, RS Management Education & Training Services

Copyright Materials

“Reproduction, distribution, display and use of the

presentation without written permission of RSPMCTS
& IPMA Philippines is prohibited”.

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Global Standards for Project Management

Project O w ner
(Sponsor)

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IPMA PM Standards

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I know all
of these!

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Key Words (Strategy)

1. Align with organizational

mission and vision
2. Identify and exploit
opportunities to influence
organizational strategy
3. Develop and ensure the
ongoing validity of the
business / organizational
justification
4. Determine, assess and review
critical success factors
5. Determine, assess and review
key performance indicators

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Align Projects with

organizational mission and
vision

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Organizational Mission

• Mission Statement:
• Lists products and services, target customers and
markets and has a more immediate business
focus with a time horizon.
• A brief summary, of approximately one or two
sentences, that sums up the background,
purpose and benefits of the project.
• Mission:
• It describes the organization's purpose and its
overall intention.

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Organizational Vision

• Vision Statement
• What the organization strives to be in the future
• An outward-facing description of the new
capabilities resulting from a project or
programme delivery.
• Vision
• the desired future position of the company.

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Alignment of Vision & Mission

• Routes used in
organizational
strategy:
1. Through Line
Organization (BAU)
2. Through PPM

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Alignment of Vision & Mission

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Identify and exploit

opportunities to influence
organizational strategy

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Business Opportunities
• An opportunity is a chance to take advantage of a situation.
• A business opportunity (Bizopp) is the chance to take
advantage of an occurrence in the market for business gain.
• A business opportunity has five elements which are as
follows:
1. Assured market scope,
2. An attractive and acceptable rate of return on investment (ROI),
3. Practicability of the idea,
4. Competence of the entrepreneur to encase it,
5. Potential of future growth.
• Is this project a good investment?

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• Number of financial techniques used in assessing

Business Opportunities (Bizopp)
1. Average return.
2. Payback period.
3. Net Present Value.
4. Internal Rate of Return.
5. Bang for Buck Index.
6. Real Options Analysis.

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Business/Organizational Justification

• Remember, Projects bring change.

• Any time a business goes through (major) changes, a
business justification can help the leaders set the
appropriate course of action.
• also called a business case, a document which
outlines the justification for the start-up of a project.
It includes:
• A description of the business problem (or opportunity)
which exists in the business
• A listing of the available options for delivering a solution
to resolve the problem
• The benefits and costs associated with each solution
option
• A recommended solution option for approval.
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Challenging
characteristics of today’s
industrial business environment:

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Challenging characteristics of today’s

industrial business environment:

1. Pressures to increase
profits by reducing costs
2. Reduction in owner project
staff and increases in
outsourcing of services
3. Demand for shorter
project cycle times (Fast
Phasings)
4. Lack of planning
capabilities and supportive
tools

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Standish Group - CHAOS Report

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Standish CHAOS Group Report (IT)

The CHAOS reports classifies

projects into:
• Success – the project was
delivered on time, on budged
and will all features.
• Challenged – the project was
eventually delivered but either
over budget, not on time or
not fully completed
• Failure – nothing was
delivered

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Project CHAOS report 2020

The CHAOS reports classifies

projects into:
• Success – the project was
delivered on time, on
budged and will all features.
• Challenged – the project
was eventually delivered but
either over budget, not on
time or not fully completed
• Failure – nothing was
delivered

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Factors that cause projects to be challenged

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Project Success Factors

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Changing Project Requirements

& Specifications

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Factors influencing or causing change

1. Design changes
2. Design omissions
3. Extra work
4. Improved technology and materials
5. Unforeseen conditions
6. Force majeure
7. Government regulation changes
8. Unavoidable time delays Schedule revisions
9. Defective materials
10.Work interruptions or stoppages

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Factors influencing or causing change

11.Impact of work by others
12.Acceleration of work
13.Late deliveries of material or equipment
14.Failure to make timely decisions
15.Owner or contractor interference.

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The Contractor’s Fence

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“We equip the next generation of Filipino Architects & Engineers” Prof. Roque Senga www.RSenga.com
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The Contractor’s Fence:

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“We equip the next generation of Filipino Architects & Engineers” Prof. Roque Senga www.RSenga.com
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Guard Your Fence!

You should take care of these things!

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“We equip the next generation of Filipino Architects & Engineers” Prof. Roque Senga www.RSenga.com
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Guard Your Fence From Your Client/Consultants

For Unreasonable Delays:

1. Request for Information 6. Late Payments
2. Late Conducting 7. Denial of Work Access
Inspections
3. Delayed Issuing change 8. Ambiguous Specifications
orders 9. Inadequate Design
4. Document
reviews/approval 10. Interruptions of Contractor’s
5. Late Decisions Production Flow

11. Conflicting Instructions

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“We equip the next generation of Filipino Architects & Engineers” Prof. Roque Senga www.RSenga.com
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Construction Cost Overrun Factors

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Construction Cost Overrun Factors

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Construction Cost Overrun Factors

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Construction Cost Overrun Factors

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Construction Cost Overrun Factors

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Construction Cost Overrun Factors

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• Plese read Mitigation Strategies suggested by

Practising Professional Engineers & Architects

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Mitigation Strategies

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Mitigation Strategies

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IPMA Phillipines YT Channel

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To contact us:
• Prof. Roque S. Senga
email: roquesenga@gmail.com
Viber/WhatsApp: +971 503243781
Mobile: (+63) 9196855422 - Philippines
(+971) 503243781 - UAE

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