Project Management Leadership, Concept, and Ideas: A Report

This report examines project management leadership through the lens of the Carillion case study, focusing on the abandoned road construction project in Aberdeen. It analyzes the company's financial difficulties, including revenue decline, debt, and issues with stakeholders, labor, and payments. The report highlights the importance of proper project management implementation, organizational structure, and risk assessment. It explores the impact of stakeholder influence, government involvement, and the challenges faced by Carillion. The report further provides recommendations for cost control, labor management, and project planning, offering valuable insights into preventing project failures and ensuring successful project outcomes. The analysis includes financial data, organizational charts, and discussions on project management best practices to contribute to a better understanding of leadership and project management.

Running head: PROJECT MANAGEMENT LEADERSHIP, CONCEPT, AND IDEAS
PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Name of the Student
Name of the University
Author Note

1PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Executive Summary
The report has shed light on the road construction abandoned situation in Aberdeen and the fall
of revenue and their profit margin. The company's drastic change in the economy is the concern
reason and for this reason the all the relative aspects are highlighted in this report and evaluate
the project management cases for the development of revised construction case. Carillion has
faced a major loss and their supply property management service and the construction work has
stopped. The Labour issues, interrupted money lending issue highlighted in such manner that
these are also become a huge case of collapse situation. The disaster puts thousands of the
company’s workers and subcontractors at hazard and climaxes the infirmity of other construction
corporations; this company has almost no resources and outsources virtually for other works. The
segment is susceptible to sluggish imbursement practices and Carillion has had a bad status of
late payments to dealers and another reason for their drastic change in business. The issues
regarding stakeholders, labors, payments, and material all these are the important concern that
has justified with the new innovations and creativity. There are certain pinch point and project
basement that Scottish government has done for the justification of competitive rate in market
and analyses the indicative identification of risk that needs to be mitigated for the establishment
of the project. In the recommendation analysis, the cost controlling and planning over the labor
management and the impact of a project management to justify a project in a difficult situation
has established so that proper planning is to make for the project establishments.

2PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Table of Contents
Introduction......................................................................................................................................3
Overview about the wrong implementation of project management...............................................3
Nature of Project..............................................................................................................................6
Project Organizational structure......................................................................................................7
Consideration for the new case........................................................................................................9
Project Management and associated risk factors...........................................................................10
Evaluation process of new case.....................................................................................................12
Stakeholders influence...................................................................................................................13
Recommendation...........................................................................................................................13
References......................................................................................................................................15

3PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Introduction
Carillion is one of the greatest production companies that construct different royal
projects like Channel Tunnel or Tata Modern Gallery. However, the situation had come when the
company's base is crumbling and for this reason, the foundation of the company is shaken from
their route. The company is in debt and their dividend stakeholders are not eager to renew their
contracts rather they do not want to join the venture anymore. The construction or the foundation
company is under the towering debt and the forced to reject the contract of £845 (telegraph.co.uk
2017). There are no other options left for the company as they are forced to be remain in this
condition and for this reason, the basic infrastructure of the company has submerged. The
company has 50,000 employees worldwide but the company rising debt created problem for the
company as well as for the employees since 2011 of Eaga, which is an energy service business
and wadding (telegraph.co.uk 2017). The company's downturn and support service is the most
important section that based on the company's infrastructure. The financial crisis has imposed
over the situation and that comes up over the company in a drastic manner (telegraph.co.uk
2017). For that reason, profit and revenue generation has lagged down and almost all those
effective terms of the company have nullified due to that liability. The company has several
issues like a late payment or competency maintenance and these issues are basically hampers the
construction process for several years.
In this report, detailed analysis of the situation in Aberdeen and their road construction
issues are highlighted and also make sure that these steps are not followed or measure those steps
for the establishment of project success. Important scenario for the project has been discussed
along with the estimated consideration needed for that project is also analyzed. Possible
recommendation and expected fulfillment are the important issues in this report, which are
discussed in an ethical way.
Overview about the wrong implementation of project management
From the point, a view of North – East Scotland, road building, and construction is the
major issue that helps Western Peripheral Route of Aberdeen and for that reason, Scottish

4PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Government also welcomed the project (sustainability2014.carillionplc.com 2014). The project
was expected to provide 36-mile long route and with this proposed formulation there are some
chances for employment and that might cut down the ration of unemployed people. Most of the
people who are concerned about their job are Oil industry can come and join that job but the
relative scheme is associated with that and project pursed cost creates a serious threat due to the
cash flow problem (telegraph.co.uk 2017). The major change in Carillion was happened due to
the corporate heart attack where an amount of loss had been faced by the company. All the
shareholders were not in state of dealing with Carillion, their financial framework has completely
damaged by the huge collapse faced by the company. The payment of the contract and the
Carillion strategy were also used for the in and out cash flow situation which helps the business
to sustain in market. Some of the Middle – East contractors are the slow payers and sometimes
they are not even paid their proper bills, this is the reason the earning was being staged and for
that reason, the growing business has stopped. The crisis ensures the accountability of the
company and they tried to scrap with that adverse condition but the growing cash problem and
money debt condition is the major reason behind the crisis that has faced by Carillion
(telegraph.co.uk 2017).
Figure 1: Revenue fall of Carillion
(Source: walbrockresearch 2017)

5PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
There are some other aspects also that have created an unnatural situation for the
company to sustain this competitive business arena. Carillion is under the risk where the support
services are faced the trading condition and for that reason, a huge slow rate has accessed in
between the company. The slump continuation is still going on and further 26.6 pc and that all
time growth rate has decreased to 57.2p.which will decrease the market value of £90m
(sustainability2014.carillionplc.com 2014). Though, some of the other evade finances may have
profited commencing descend. Carillion is the most selected stockpile in FTSE 250, with
additional 25pc of its shares on credit to short-sellers, gambling that the organization carves up
value would fall rather than increase (sustainability2014.carillionplc.com 2014). This is the
major issue that faced by the company in their troublesome moment when the profit warning
affected the company policy as well as appeared the stakeholders for the betterment of the
company (Frank and Ribeiro 2014). The company has confronted postponements to payments on
public-private Corporation which made an agreement in the Scotland — a part it is retreating
since the situation has turned on. As well as increasing resources and Labour costs are the major
issue for the drastic end of this business. It has also agonized, laterally with manufacturing
competitors, the slowdown in ratification agreements then the Brexit. However, in that adverse
situation those stakeholders are not standing with the company and for that reason, the company
is under such debt condition (Ramazani and Jergeas 2015).
Figure 2: Share Price collapse in Carillion

6PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
(Source: Stockopedia 2017)
Sub-contractors are the major factor that delivers more business problems as they are the
controlling measure for business development. Initial government estimation was in between
£295m and £395m but the stakeholders’ initiation and subcontractor pressure situation is the
ultimate reason behind the project non- implementation (sustainability2014.carillionplc.com
2014). The share price of the company plunged in and they are stating their relegation from
FTSE index (sustainability2014.carillionplc.com 2014). There are several contracts and Tender
executives are playing a crucial role that certainly contingent over the performance of Carillion.
Carillion market capitalization has warned-out drastically as their revenue has dropped down
from £1bn to less than £250m (sustainability2014.carillionplc.com 2014). Sustainability of the
managing the government and the influence that government has done to support Carillion work
is impeccable but most of the work is initiated by the Public sector union thus sub-contractors
delayed their work and this delayed work makes the whole work as a ruined one.
Nature of Project
The project is to identify the problem that faced by Carillion in the earlier time and to
mitigate those problems and suggest the recommendation from the selected problems to sustain
the project management in an effective manner. At the initial moment, the stakeholder
implementation that their thought process over the work is important as this is the only way to
maintain a good relationship with them (Walker 2015). On the other hand, Government initiation
and their engagement in the works are important for the intervention of the process. Government
is the fundraiser for this construction issue and for that reason their involvement is important
(Ramazani and Jergeas 2015).

7PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Figure 3: New Order booking of Carillion and their rates
(Source: Stockopedia 2017)
In this new dimensional project culture, different committees like risk management committee,
infrastructure committee, financial and contract and stakeholders maintaining committees are the
actual measurements that are related with the new project culture where the economic and
functional framework will help the project to analyze and maintain them in an effective way
(Bolman and Deal 2017).
Project Organizational structure
A project organization is an arrangement that facilitates the management and execution of
project actions. The main motive is to generate an atmospherically change that fosters
connections along with the team members with the least amount of disruptions, overlaps, and
disagreement. Each project has some different characteristics and for that reason the project
initiation phase of the level of authority is different. An appropriately planned project
organization diagram is important to project achievement (Bryman and Bell 2015). An
organization diagram shows where each individual is located in the project constitution (Fletcher
and Marchildon 2014). An organization chart is haggard in pyramid shape where persons
situated nearer to the pinnacle of the pyramid have more power and accountability than members
positioned in the direction of the underneath of that (Ramazani and Jergeas 2015).

8PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Project Coordinator
Accountant/ AdministrationDevelopment Coordinator
Provincial CoordinatorProvincial Coordinator
Field
Coordinator
Field
Coordinator Field
Coordinator
Field
Coordinator
Figure 4: Project Organizational structure
(Source: Created by Author)
Project management structure is important for creating a management base and to construct the
establishment of an issue. Field coordinators are the effective subordinate who precede the work and
maintain a good work ration for the sustainable development of the management (Frank and Ribeiro
2014). The project manager must produce a project arrangement that will assemble the different
project requirements at different phases of the plan (Larson and Gray 2013). The arrangement cannot
be planned too firm or too mislay because the project organization's reason is to make easy
communication of people to attain the project final goals within the specific constraints of range,
agenda, financial plan, and excellence (Fletcher and Marchildon 2014). The chart has presented the
organizational hierarchy and establishes the function of each and every person. This is the reason the
operation process will go in a uniform sense and the communication and workflow will enrich the
project management and their organization (Nahavandi 2016). The formal environment of the
management has changed and for this reason, the major change has also come in the new construction

9PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
of the road. The constructing operation and their limitation are the key criteria that acknowledged by
the new company and due to that reason the efficient communication and incorporation in the midst of
all the chief project participants and accomplish open and useful statement among them.
Consideration for the new case
There are major challenges in a project that need to consider in that sequence to analyze
the best project management designing and approach. Managing sustainability and ensure the
governance factors are the basic involvement that Carillion was needed in their work, however,
this strategy was missing in their work and for that reason, the priorities facility and managing
across the group was shrunken due to the structure (Burke and Barron 2014). There are certain
effects that can change the project scenario as well. For the better consideration, specialization in
the project structure and focus on the development are specific areas that needed to be innovative
as well as attainable in the different manner of business productivity and sharing (Trivellas and
Reklitis 2014). There are lots of creative ideas and innovative mannerism may establish over the
situation and for that reason, there are certain discrepancies are noted to meet the goal
(Northouse 2015). In case of Carillion, the project, the project sustainability and stakeholder's
initiation in those projects are the important scenarios that ensure the drastic end of that project.
Figure 5: Share Collapse
(Source: Thisismoney 2017)

10PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
There is some identical risk management issue that has found in every project base
situation and for that reason, the event management team has to understand the possible
mitigation theories for the reduced effectiveness of those problem facing scenarios. For the new
project that has been proposed in a new formation Matrix based project organization has used in
that specific cases (Kerzner 2013). The construction company has to draw a framework and
specialized over the road build up the case for the development of the project analysis and
management (Fletcher and Marchildon 2014). The temporary program managers have not
involved in that case, not even the extreme sub co-coordinators, rather project manager will
ensure some good staffs in their region and to maintain a chain of people who are effectively
doing their work in an effective way and this is the reason behind the successful program
analysis and management (Cox 2015).
Project Management and associated risk factors
The identification and monitoring of the risks are the principal value that needed to be
understood for the better management scenario. Each project management unit has risk manager
and the manager has to take the initiative to maintain all the risk generating aspect from that the
manager can determine the scope of mitigation of risk. There is several risk factors that project
may confront like uncertainty over the project (Moran, Abramson and Moran 2014). Future
findings are impossible to determine and for that reason, the development understanding of the
foresee nature is not established over here. This is the uncertain factor that has come up with
project management issue and can be mitigated beforehand. Risk managers have to set the goals
of the risk strategies and by the implement from that strategy how it helps to reduce the problem
situation (Bell 2014).

11PROJECT MANAGEMENT LEADERSHIP, CONCEPT AND IDEAS
Figure 6: Carillion’s Profit warning and share decrease
(Source: independent.ie 2017)
There are some projects objectives that can be managed by the effective mitigation of risk
factors. Risk establishes on the nature of the invention. Established expertise has a reduced
amount of risk than products needing invention and creation (Morgan 2015). This comprises
such substances as investor movements, untrustworthy estimations, team revenue, changes in
necessities, unsatisfactorily expert staffs and these are considered as the sources of risk. In case
of Carillion, the board is eventually accountable for confirming that their risk management
arrangements are apposite for classifying and estimating noteworthy sustainability risks. There
are legal obligations that government has imposed some procedures and that integrity and
environmental change tried to manage the integral participation and social and ethical risks that
delivering the successful measures (Verzuh 2015). Carillion appraises risk at every phase, from
early believed procedures to evaluating how workers and subcontractors are likely to accomplish
through our supply chain management protections (Graham 2016). For that reason of ensured
thinking and the encouraged reflection of attitude is the important factor that provides the
genuine and confidential understanding between the government and Carillion and for that
reason, road blockage or not the implementation of that project any sustain as a big issue but
could not analyze the matter.