Project Management Best Practices

This assignment delves into the realm of project management by examining established best practices. It draws upon a selection of academic books and journals to explore concepts such as knowledge transfer, goal-directed management, human resource management within projects, and factors contributing to project success. The analysis highlights key principles and strategies that organizations can implement to enhance their project management effectiveness.

Organizations and
Project Management
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TABLE OF CONTENTS
Introduction .....................................................................................................................................3
Analysis of the decision to vertically integration through acquisition........................................3
Analysis of key success factors and risks with integration of the Consultancy insourcing
project..........................................................................................................................................6
Evaluation of options ..................................................................................................................8
Recommendations to CEO ........................................................................................................11
References......................................................................................................................................14
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INTRODUCTION
In present scenario, project management plays very important role in success of a
business enterprise. It has emerged as one of the most crucial aspects of the organizations. The
present study is based on DBCL which is an international company that deals in areas such as
infrastructure contracting engineering consultancy, engineering manufacturing along with
project/program management. It can be also stated that more than 50% of its annual turnover is
generated by one of its divisions that is infrastructure contracting. The brand carries out its
operations in different countries of the world and has workforce of more than 10,000 employees.
This report highlights the critical evaluation of DBCL decision regarding vertical integration.
Along with this, it also depicts key issues and benefits which are associated with such the kind
integration. The present study also depicts success factors and risk related to integration of
consultancy in-souring project.
Analysis of the decision to vertically integration through acquisition
In simpler terms, vertical integration can be defined as the merger of two organizations
which are operaA22172ting at different levels of productions. Furthermore, it is completely
different from horizontal integration in which same businesses merge with each other. DBCL is
an organization which carries out its operations in the field of contracting and engineering. It can
be also argued that the brand is financially very sound and stable as compared to other market
players in the industry. According to the provided case scenario, DBCL's horizontal integration
approach is termed as one of the major factor which has contributed in its growth and success.
Start from the beginning DBCL has outsources its consultancies services related to project
management and consultancy. This approach has provided the brand with adequate opportunities
related to growth and expansion. On the other side of this, it will allow the brand to increase its
sales and profitability.
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On contrary to this, it can be argued that it has resulted in providing poor services to
clients. It has affected the overall sales and profitability of DBCL. This is the only reason why
the brand has decided to go for the strategy of in sourcing/vertical integration. DBCL is looking
forward to enhancing its sales and profitability by providing more effective and satisfactory
services to all its clients. DBCL has taken decision regarding in sourcing/vertical integration with
TBT which is an engineering consultancy organisation having its base in the North America. It
can be evaluated that this decision of vertical integration will help DBCL to have more control
over its value chain process.
Along with this, the decision will also make DBCL capable of lowering down its overall
cost of operations and offer its services at low cost. However, it can be argued that the
organisation will be required to invest huge amount of time, money and other resources at the
time of carrying out vertical integration (Schwalbe, 2015). In addition to this, DBCL will be
required to make downstream and upstream investment which will results in reducing overall
flexibility of the organization. As per the strategy of vertical integration, DBCL will have an
opportunity to control its overall cost of operations by using the process of distribution.
The benefit of vertical integration will be that it will enhance sales and performance of
one of its core segment which is of providing consultancy services related to project management
and engineering. It will also provide the organization with opportunities to expand its operations
in new markets such as North America where it is not performing at present.
Key issues and benefits
It can be argued that vertical integration is a very complex and risk strategy approach and
businesses have to be very careful at the time of using it. Furthermore, entire performance and
productivity of organisations is directly affected when such strategies fails (Shenhar and Dvir,
2007). It can be also stated that success and failure of vertical integration depends on the efforts
which has been made by businesses in carrying out complete analysis of the risk associated with
the same. Bowmar who was market leader in developing held-held calculators made efforts to
carry out circuit production with the help of vertical integration (Huemann, Keegan and Turner,
2007). The strategy completely failed and also forced Bowmar to withdraw all its operations. It
can be also said that it affected the overall sales and market share of Bowmar. Another example
of vertical integration is of Google which has acquired mobile device maker Motorola (Kwak
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and Anbari, 2009). This strategy is resulting in increasing the rate of innovation and success for
both the brands. One of the best examples of companies which have been successful in vertical
integration is of Apple.
It can be also explained that it is the result of vertical integration that the brand is able to
produce its own iOS operating system and other effective applications (Winter and et.al., 2006).
Therefore, it can be stated that if vertical integration becomes successful, it can provide
businesses to new height of growth and success. Its key benefits are increasing market share,
sales, profitability, and customer base of organisations (Turner, 2014). On the other side of this,
it can be critically argued that vertical integration is considered as one of the most important
factor which has resulted in failure of AT&T (Schwalbe, 2008). Furthermore, the planned
acquisition SBC of the organisation was a very big mistake as it was carried out with the strategy
of vertical integration.
It can be stated that one of the major issue which is faced by businesses while carrying
out vertical integration is that it can result in capacity balancing problem. Other than this,
mergers and acquisitions which are carried out vertically also offers businesses with less scale of
economies (Rosenau and Githens, 2011). The reason behind this is that majority of organisation's
process of production are carried out at different levels. Another issue which can be faced by
businesses during the strategy of vertical integration is that it can create restrictions for firms in
terms of entering new markets. In addition to this, such type of strategy also requires huge
amount of investments. Now the issue is that even if businesses invest required money, vertical
integration does not provide any kind of guarantee for success and it is very risky (Ika, 2009).
Therefore, it can be stated that before adopting such strategy, organisations are required to
evaluate the benefits and risks associated with vertical integration. All the above stated examples
highlights the vertical integration can provide success as well as failure to organizations.
Analysis of key success factors and risks with integration of the Consultancy insourcing project
Success factors
One of the major factor which is going to contribute in success of integration is the brand
name and reputation of TBT in market. As per the provided case scenario, it has been found that
TBT is considered as leading and most potential organization in this sector. Therefore,
integration with such a brand will provide DBCL with better opportunities related to growth and
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development. Along with this, it will also help the organization to develop its competency and
become expertise in providing consultancy services. It can be also stated that DBCL will not be
required to put many efforts in integration as TBT is performing very good in existing markets. It
has been observed from the provided case scenario that the consultancy services which DBCL is
providing at present is very limited (Martinsuo and Lehtonen, 2007). Integration with TBT is
going to enhance overall range of consultancy services offered by the organization. Another
success factor can be considered as the success history of DBCL in carrying horizontal
integration.
However, it can be argued that the organization is doing vertical integration for the first
time but it is well aware about the facts and measures to be taken. DBCL is performing quite
well in markets such as Europe and middle east.
Risk involved in integration of the Consultancy insourcing project
At the time of carrying out integration there are several kinds of risk which needs to be
taken into consideration by DBCL. Furthermore, it can be also argued that the integration will
expos financial risk of the organization. In the present scenario, strategies such as acquisition has
started to make a direct impact on areas such as risk management and risk exposure of businesses
(Wysocki, 2011). The brand is carrying out integration with a consultancy organization named
TBT. As per the provided case scenario, it has been also observed that the structure of TBT is
very unusual. Now, the major risk in this situation is that somewhere or the other, operations of
DBCL will get affected by this integration. In addition to this, DBCL is looking forward for
future and long term growth through this acquisition.
Another risk is that the arrangements made in TBT are unique and are created in their
own way which may not be suitable for DBCL. On the other side of this, employees of TBT are
having shares which will further create problem in the decision making process. During the
process of integration, all resources, structure and culture of both the organization will be
integrated with each other (Lientz and Rea, 2007). Management of DBCL may faces various
challenges as culture of TBT is entirely different from the culture which exists in other private
limited partnerships. It will not be easy task for DBCL to integrate two different cultures
effectively.
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On the other hand, transfer for staff will be another risk which the organization will be
facing during integration (Walker, 2015). It can be argued that a lot of changes happen in
businesses during the process of acquisition. Existing employees may not cope up with changes
and this can also result in increasing the rate of employee turnover. Workers are considered as
one of the most valuable assets of an organization and therefore, high rate of turnover will
directly affect performance of DBCL. In addition to this, transfer of responsibility is another risk
factor associated with the process of integration.
It may happen that the roles and responsibilities of existing workers may get transferred
to others. Such kind of situation can create dissatisfaction among people in organization and can
also lower down their overall productivity. Furthermore, this will also restrict DBCL to provide
better and more satisfactory services to all its customers. During the process of integration, there
will be different kind of changes in organizational structure of DBCL. It will not be easy for
employees of the organization to adopt new structure. In order to handle the above mentioned
risk, DBCL will be required to use different tools and techniques related to risk management.
Furthermore, it can improve its performance in North America, by developing effective project
management plans. Other than this, employees views and opinions can be taken into
consideration in order to create sense of satisfaction among workers (Andersen and Grude,
2009). At the time of changes in culture and structure the organization can encourage
participation from workers. More clients can be attracted with the help of effective marketing of
DBCL's products and services.
Evaluation of options
DBCL can faced with different types of challenges in the proposed acquisition of TBT. These
challenges can be discussed as follows:
 Unusual structure – The Company that DBCL is acquiring is having an unusual structure.
It is based on unique ownership arrangements. Under this arrangement, the employees are
having all the shares despite of being a private limited partnership (LLP). This has
developed a specific environment which is very different from the traditional hierarchical
Public Listed Company.
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 Difficulty in control – Acquisition also brings changes in the pattern of control and
planning. Here control will go into the hands of DBCL. Hence it can be said that there are
many things which are important in control.
 Integration issues – Both the firms can also face different types of integration issues. The
business processes and systems of the companies could take lot of time to achieve
integration. Presence of cultural changes can bring resistance among the employees. Lack
of incorporation may spoil the results of the business. Company may not be able to
achieve the proposed objectives behind acquisition (Kwak and Anbari, 2009).
 Financial fallout – The expected returns arising from the acquisition may not provide the
desired benefits to the shareholders (Rosenau and Githens, 2011). The cost may consume
too much time in order to get materialize due to presence of so many factors. This may
increase the costs and prices for the DBCL. There may be fewer synergies as anticipated
and some other unforeseen circumstances.
 Unrelated diversification– Difficulties related to managing the resources and
competencies may also arise when an acquisition brings together diverse product or
service lines. The management of departments and people may face high extreme hurdles
which can be hard to avoid. The time needed to address such type of concerns may also
deplete.
On the basis of the review of all projects of company by using the model of P3M3, it has
been found that at present the company is at level 2. Furthermore, it can be stated that the model
has provided with a framework which depicts current performance and improvement plans which
can be used in the future. It has also supported in carrying out effective analysis of each and
every area of DBCL effectively and separately. The entire model was divided into three main
parts which are project management, portfolio management and program management. It can be
also argued that client has started to demand more maturity in products and services which were
offered by the DBCL. It is required by the brand to be on level 3, in order to improve its overall
performance.
As per the provided case scenario, it has been observed that the highway infrastructure is
one of most important and large project which is taken care by DBCL. The client for this project
is very large and it is one of the major source of the organizations future revenue. It has been also
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observed DBCL is not been able to manage this project in appropriate manner. The entire project
was divided into two main parts which was installation and commissioning of new highway
management system.
Recommendations to CEO
In order to make delivery of consultation division successfully, some recommendations to
CEO of DBCL are mentioned below as:
 At the time of going for integration, it is recommended that DBCL should consider each
and every alternative available in front of it. There are various kinds of strategies such as
mergers, acquisition s, organic growth etc. which can be used by the organization in order
to find better opportunity for growth and development. Therefore, before selecting any
kind of strategy, the brand is required to carry out analysis of each and every alternatives
available with it.
 It can be also recommended that organization is required to develop effective backup
plans in order to carry out the process of mergers and acquisition in the future. It has been
analysed that back up plans will support the organization in getting the best possible
outcome of acquisition.
 It can be recommended that in order to find better opportunities for growth and
development, DBCL should always try to focus on satisfying the specific needs and
demand of all its clients.
It can be stated that all the above mentioned recommendations will support the
organization in carrying out its activities and projects in more effective manner.
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REFERENCES
Books and journals
Ajmal, M.M. and Koskinen, K.U., 2008. Knowledge transfer in project‐based organizations: an
organizational culture perspective. Project Management Journal. 39(1). pp.7-15.
Andersen, E.S. and Grude, K., 2009.Goal directed project management: effective techniques and
strategies. Kogan Page Publishers.
Huemann, M., Keegan, A. and Turner, J.R., 2007. Human resource management in the project-
oriented company: A review. International Journal of Project Management. 25(3).
pp.315-323.
Ika, L.A., 2009. Project success as a topic in project management journals.Project Management
Journal. 40(4). pp.6-19.
Kwak, Y.H. and Anbari, F.T., 2009. Analyzing project management research: Perspectives from
top management journals. International Journal of Project Management. 27(5). pp.435-
446.
Lientz, B. and Rea, K., 2007. Project management for the 21st century. Routledge.
Martinsuo, M. and Lehtonen, P., 2007. Role of single-project management in achieving portfolio
management efficiency. International journal of project management. 25(1). pp.56-65.
Meredith, J.R. and Mantel Jr, S.J., 2011. Project management: a managerial approach. John
Wiley & Sons.
Rosenau, M.D. and Githens, G.D., 2011. Successful project management: a step-by-step
approach with practical examples. John Wiley & Sons.
Schwalbe, K., 2008. Introduction to project management. Cengage Learning.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Shenhar, A.J. and Dvir, D., 2007. Reinventing project management: the diamond approach to
successful growth and innovation. Harvard Business Review Press.
Turner, J.R. ed., 2014. Gower handbook of project management. Gower Publishing, Ltd..
Turner, J.R., 2014. The handbook of project-based management. McGraw-hill.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
Winter, M., Smith, C., Morris, P. and Cicmil, S., 2006. Directions for future research in project
management: The main findings of a UK government-funded research
network. International journal of project management. 24(8). pp.638-649.
Wysocki, R.K., 2011. Effective project management: traditional, agile, extreme. John Wiley &
Sons.
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