Improving PWA Drainage Projects: Core Value Proposition Analysis

This report provides a comprehensive analysis of the Public Works Authority (PWA) STW&TSE section's drainage projects in Qatar. It begins with a business background, outlining the PWA's strategic objectives and commitment to infrastructure projects, including those related to the Qatar National Vision 2030 and the FIFA World Cup 2022. The report then assesses customer needs and quantifies project performance, highlighting delays and budget overruns in past projects. Based on this, it defines the core value proposition of the STW&TSE section and conducts a business audit using value chain analysis to identify improvement opportunities. The report emphasizes the importance of stakeholder and performance management, proposing a management agenda with quantifiable benefits and strategic action plans. Finally, it addresses internal and external business linkages to enhance project delivery, including recommendations for improved equipment procurement and stakeholder engagement. The report concludes with a cost-benefit analysis of the proposed improvements, strongly recommending their implementation to mitigate financial risks and improve project efficiency.

S M / 9 6 8 7 9 1 1 / N o v 1 5 / 3
STRATEGIC MANAGEMENT
POST WORKSHOP ASSIGNMENT
Ramesh babu S
9687911
Manchester
Business
School
Dubai
08Fall

Strategic Management Assignment 2
Table of Contents
Part – 1 Business Background + data: (163 words).............................................................................3
Part – 2 Customer Target/Needs + quantification (248 words):.....................................................5
Part – 3 Current and Desired Position – Core Value Proposition (74 words).............................6
Part – 4 Business Audit using: Strategy Canvas OR Business System OR Value Chain OR
Activity System Map (174 words)............................................................................................................... 7
Part - 7 with the operating model described you have 500 words to audit – find
improvement opportunities (487 words)...............................................................................................8
Part 6: 300 words: Management Agenda to enhance position + quantification (424 words)
............................................................................................................................................................................. 11
Part 7: 161 words: Business Linkages internally and to the ecosystem considered..............14
References.............................................................................................................................................................................. 15
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Strategic Management Assignment 2
Part – 1 Business Background + data: (163 words)
The Public Works Authority (PWA) is a government entity in Qatar which is responsible for delivering and
managing infrastructure projects related to Roads, Drainage and Public buildings and its organization
structure is presented in Figure 1.
PWA was established in 2004 with a well-directed strategy to meet the needs of Qatar National Vision
2030 (QNV 2030), FIFA world cup 2022 (FIFA 2022) and Qatar National Development Strategy (QNDS).
Details of PWA Mission, PWA Vision, Strategic Themes, Strategic Objectives and Core Values are
presented in figure 2.
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Strategic Management Assignment 2
PWA has a commitment to deliver projects valued over GBP 20 billion in next five years. Commitment
promises of different affairs are as Figure 3.
This assignment is focused on improving the core value proposition of STW&TSE section of
drainage projects department (DPD) in Infrastructure affairs (IA) of PWA as highlighted in
figure 4. STW&TSE section id required to deliver state capital projects of worth more than
GBP 5 Billion in next five years.
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Strategic Management Assignment 2
Part – 2 Customer Target/Needs + quantification (248 words):
Even though the end users of the assets constructed by STW&TSE
section are common public, the delivery of the projects is very
critical for the whole nation to meet QNV 2030, QNDS and FIFA
2022 requirements. Successful project management is balance
between competing project constraints (PMBOK ® Guide, 2013)
Schedule, Budget, Scope, Quality, Resources and Risks in order to
generate customer satisfaction.
In case of STW&TSE section the main attributes that effects the
customer satisfaction derived from strategic requirements (QNV 2030 , QNDS and FIFA 2022) and
important project constraints their weightages, current level of customer satisfaction and maximum
level (as there are no competitors in this case) are tabulated in table no 1.
Based on the PIMS tabulation the current weighted average score of critical factors of successful project
delivery stands at 5.7 for a maximum score of 10. The main problematic factors which need further
evaluation are Timely completion, Completion within budget, Risk and resource Management The basis
for low score for these are based on the analysis of STW&TSE section previously completed projects
from 2009 – 2014 and their details in terms of Initial contract value, final contract value, budget over run
analysis and time delay analysis are carried out and tabulated below.
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Quality Avg. Weight
attributes Weight
Current
Status Max Ratio times
ratio
Col 1 Col 2 Col 3
(1 - 10) Col 4 (10) Col
5=3/4
Col
6=2*5
1 Timely Completion 25 3 10 0.30 7.5 FIFA 2022 &
Project Constraint
2 Completion within Budget 25 5 10 0.50 12.5 Project constraint
3 Quality Compliance 15 7 10 0.70 10.5 Project constraint
4 Sustainability compliance 15 8 10 0.80 12.0 QNV 2030
5 Environmental compliance 10 8 10 0.80 8.0 QNV 2031
6 World class Infrastructure 5 8 10 0.80 4.0 QNDS
7 Risk and Resource
Management 5 5 10 0.50 2.5 Proejct Constraint
100 57.00
Attainment score 5.7 10
Weight on Quality attributes 50% 50%
(Weighted average of all attribute scores)
Weight on the project
Table No 1: PIMS Tabulation on critical factors of Project delivery
Adopted from R. Buzzel & B. Gale, The PIMS principles
Alignment with
Strategic
requirements
GBP (Mn) GBP (Mn) GBP (Mn) %
1 DWSTW 157.58 216.69 59.11 38%
2 DNSTW Package 1 297.05 329.69 32.64 11%
3 DNSTW Package 2 415.00 475.00 60.00 14%
4 DSSTW 115.17 137.50 22.33 19%
5 IASTF 16.50 16.50 0.00 0%
6 TSE from DWSTW to ARF 22.70 27.13 4.43 20%
7 TRF at DWSTW 6.65 8.45 1.80 27%
8 TSE MAIN 1000 mm 14.85 17.68 2.83 19%
9 Alkhor STW 12.26 13.26 1.00 8%
1,057.75 1,241.90 184.14 17.41%Total
Table no 2: Projects Delivered by STW&TSE section from
2009 - 2014, Budget Over run Analysis
S.no Project Name
Original
Value
Final
Value Budget Over run Original
Duration
Final
Duration Delay
No of days No of days No of days
1 DWSTW 2464 2752 288 12
2 DNSTW Pacakage 1 2464 1979 983 10
3 DNSTW Package 2 1272 2918 1646 2
4 DSSTW 911 2166 1255 15
5 IASTF 359 1441 1082 2
6 TSE from DWSTW to ARF 539 782 243 1
7 TRF at DWSTW 269 774 505 3
8 TSE MAIN 1000 mm 539 833 294 3
9 Alkhor STW 799 799 0 3
894 1462 751 6Average
Table no 3: Projects Delivered by DPD, PWA from 2009 - 2014,
Time Delay Analysis
S.no Project Name No of variation
orders

Strategic Management Assignment 2
Based on budget over run analysis and Time delay analysis presented in Table 1 and Table 2, on an
average each project in STW&TSE section is delayed by 750 days and has incurred 18% additional
expense in addition to original contract award sum.
Part – 3 Current and Desired Position – Core Value Proposition (74 words)
Based on this, the current and desired position project delivery factors such as timely completion,
completion within budget, Quality compliance, Environmental compliance, world class infrastructure,
risk and resource management can be pictured as Chart 1.
Based on chart 1 current and desired
analysis of project delivery factors, the core
value proposition of STW&TSE section
should be “to deliver world class and
sustainable projects within time, within
budget without compromising the quality
of the output”
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Strategic Management Assignment 2
Part – 4 Business Audit using: Strategy Canvas OR Business System OR Value Chain OR Activity System
Map (174 words)
STW&TSE section is responsible for managing
the projects during construction stage,
delivering sewage treatment works and
treated sewage effluent networks related
assets for the whole country. Different parties
directly involved in delivery of a project in
STW & TSE section and their roles and
responsibilities are as highlighted in figure 5.
Inception, tender preparation and contract award is
managed by Drainage Design department (DDD). After
the award, representative from Drainage Projects
Department (DNPD) will drive the project with the help
of supervisory consultant and contractor till closeout
and handover to Operations & maintenance
department (O&MD). Typical organization structure of
STS& TSE section is as per adjacent picture.
Value chain of project from
initiation till handover has six (6)
primary activities such as design
and tendering, contract
management, Design and
Procurement management,
Construction management,
Erection and commissioning,
closeout & Handover. Further
there are many supporting
activities to be performed such as
Stakeholder management
(external and Internal), Quality Management, Performance management, utilization of Project
management systems and processes and risk management to successfully complete a project.
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Strategic Management Assignment 2
Part - 5 with the operating model described you have 500 words to audit – find improvement
opportunities (487 words)
To find out improvement opportunities in the current practices, value chain analysis is carried out and
different activities of the PWA STW&TSE section operations are modelled in the adjacent table.
Emam et al. (2014) have listed 20 major factors that contribute to project cost and time overruns caused
by different parties Client, Consultant, Contractor and external authorities. In PWA case the major
Improvement opportunities observed are Stake holder management (Internal & External), performance
management (consultant, contractor and PWA employees) and incorporating project management
processes at different stages of the projects. The main reasons for cost and time overruns at PWA and
their percentage contribution to overall delay and budget over run are gathered by conducting personal
interviews with the respective project managers and head of the section and tabulated as below.
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Strategic Management Assignment 2
From the above table poor stake holder management (internal & External) and poor performance
management of involved parties (Consultant, Contractor and PWA employees) contributing to 80% of
the additional costs and time delays.
Further if the current efficiency levels of project management are continued than STW&TSE section
many need to spend an additional amount of GBP 981 million to deliver projects of worth 5 billion GBP
and wait for additional 750 days than planned duration to complete the projects as calculated in the
adjacent table.
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A. Cost of Budger Over Run Assumptions / Remarks
Expected cost of project delivery
in next 5 years
5000.00 Million GBPBased on expected projects
tobe delivered in next five years
Current budget over run
18%
Based on historical efficeincy of
STW& TSE Section propjects
calculated in table 1
Expected additional amount to
be spent based on current
efficiency levels
900.00 Million GBP
B. Cost of Time Delay
PWA STAFF 10 Nos
Consultant staff 300 nos 15 nos for 250 million project
Average delay 750 Days
Cost due to day 81.00 Million
Assuming only 70 % of
consultant staff is utilized
during the delay period and
staff rate is calculated as 500
GBP/day per consultant and
300 GBP/day for PWA employee
Total additional cost due to
inefficiency 981.00 Million GBP
Budget over run and Time delay
A+B
Additional cost that will incur on future projects based on current efficiency levels
S.no Project Name
Addiitonal works
Contractor
inefficiency
Consultant
Inefficiency
Internal
departmental delay
External Authority
Delay
Inefficeincy of PWA
Project Manager
Lack of Project
management
systems and
processes
Other Reasons
1 DWSTW 15% 15% 8% 12% 18% 8% 12% 12%
2 DNSTW Package 1 10% 20% 8% 16% 16% 11% 9% 10%
3 DNSTW Package 2 11% 16% 9% 12% 21% 11% 12% 8%
4 DSSTW 10% 15% 20% 12% 17% 14% 6% 6%
5 IASTF 9% 16% 15% 19% 18% 12% 5% 6%
6 TSE from DWSTW to ARF 4% 15% 9% 14% 24% 12% 10% 12%
7 TRF at DWSTW 12% 10% 9% 14% 20% 10% 11% 14%
8 TSE MAIN 1000 mm 12% 10% 11% 16% 17% 8% 12% 14%
9 Alkhor STW 10% 18% 5% 16% 25% 7% 12% 7%
10% 15% 10% 15% 20% 10% 10% 10%
Additional works, Other Issues and Peroject management systems and processes
Average Value
Table no 4: Reasons for project delay and Budget over run based on personal interview with respective project managers
Source: Personal interviews of the PWA project Managers and Section heads conducted between 01 st Feb to 24th Feb 2016.
Issues related to Stakeholder Management - 35%
Issues related to Performance management - 35%

Strategic Management Assignment 2
Performance management (PWA project managers, Consultants and contractor): Currently there is no
Training & development, Increment and promotion policy
at PWA for expat project managers. Even the professional
service agreements made with the expert consultants do
not have clear mechanisms to penalize the consultants for
delays and does not have clear performance
measurement criteria. Current contracts have no
mechanism to encourage the contractors to deliver the
contracts before or on time. Further the maximum
amount of penalty that can levied on a contractor cannot
exceed 10% of the contract value which all the contractors
normally factor 10% into their bid price, hence does not
provide sufficient motivation to complete the projects as per committed schedule. Performance
management at PWA can be improved in many ways the typical improvement model can be as below.
Stake holder management (External and Internal): Projects at STW&TSE section has many permits to be
obtained from different stakeholders at various stages of the projects as below picture. Proper
stakeholder management at PWA can reduce a delay of 35% of the overall delay.
Different approvals that are required to be obtained during a project life cycle in Qatar and responsible
authorities are as tabulated below.
SM/9687911/Non/2015/1 10
S.no Approval Authority
1. Design Control 1 Ministry of Municipality and Urban planning
(MMUP)
2. Design Control 2 MMUP, Water & Electricity department, QTEL, PWA
Roads department, PWA Drainage Department
3. Firefighting system approval Ministry of civil defense
4. Building Permit MMUP
5. Electricity connection Water & Electricity Authority, Municipality
clearance and civil defense Clarence
6. Environmental permit Ministry of Environment
7. Dewatering permit Ministry of Environment

Strategic Management Assignment 2
Typical stakeholder management contains different steps such as identification, analysis, engagement
information flow, abide by agreements and debriefing. There is a need for implementation of effective
stakeholder management strategy at PWA in order to deliver projects efficiently.
Typical effective implementation strategy advised by BCG contains five elements including building the
right capabilities, developing tailored approach for each stakeholder, executing integrated engagement
strategy, monitoring progress and determine the priorities to smoothly manage the progress.
Part 6: Management Agenda to enhance position + quantification (424 words)
Performance management
PWA corporate strategy is to be cascaded to IA and DPD and individual level as shown in the adjacent
Strategy MAP. Accordingly the following steps are needed to improve the PWA project Manager’s
performance.
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Strategic Management Assignment 2
 Individual SMART objectives setting aligned to departmental strategy and goals.
 Further to motivate the top performers’ performance linked pay, career advancement including
promotions to be introduced.
 Formal one on one feedback sessions to create opportunities, reveal strengths and areas of
improvements.
 Holistic training and development plan.
As mentioned previously consultant professionals’ service agreement should be added with clear
performance evaluation criteria along with additional penalty clauses. Currently all the contracts in
STW&TSE section are design and built contracts with lump sum price as recommended previously the
type of the contract needed to be changed to cost Plus incentive family of contracts which motivates the
contractors to finish the projects before or on time (Baden felt, Ulrika 2008). Strategy action plan for
improving the performance management of all the parties is as below for the next 5 years with
milestones at different stages is as below.
Initiative name
Initiative Owner / Sponsor
Project manager
Initiative description
Time lines
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Initiation
Planning
Implementation
Employee PMS
Consultant PMS
Contractor PMS
Monitoring and control
Quarterly review
To improve the perfromance of STW&TSE project managers, Performance of Consultants and
Performance of contractors difffent plans will be implemented. This will target to improve
expected annual excess expense of 70 million GBP (35 % )
STRATEGY ACTION PLAN - PERFROMANCE MANAGEMENT (PWA PROJECT MANAGER, CONSULTANTS AND CONTRACTORS
Perfromance Management of STW&TSE section
Head of STW&TSE section
Mr. Ramesh babu S
Major Taks / Mile stones FY 2016 FY 2017 FY 2018 FY 2019 FY 2019
To implement the proposed improvements related to performance management different heads such as
Additional staff costs, capital costs and other costs are calculated in the following table.
Remarks
Full time staff hours, Hrs/anum One additional staff per anum for Employee PMS
Saff costs per anum
Employee PMS @ 100 GBP per hour
Consultant PMS No additional manpower for consultant PMS
Contractor PMS No additional manpower for Contractor PMS
Capital costs, GBP
Employee PMS PMS software purchasing and mantainance later
Consultant PMS Initial cost of agreement preparation
Contractor PMS
Other costs 10% of the Staff and capital costs
Total costs Total expenses GBP 250,000
Additional expenses expected to
incur due to no perfromance
management system @ 35% of
over all expected waste , GBP
Poor PMS contributes to 35% of overall delay and
budget over runs, assuming that 0%, 40%,
60%,70% and 70% improvement in the five years
Return
(amount of money saved)
Total savings - 168 million GBP approximately in
5 years
Intanginble benefits High / Medium / LowL M H H H
32,040.00
(121,680.00) 27,967,960.00 41,967,960.00 48,967,960.00 48,967,960.00
- 28,000,000.00 42,000,000.00 49,000,000.00 49,000,000.00
Assessment of benefits
60,000.00
121,680.00 32,040.00 32,040.00 32,040.00
20,280.00 5,340.00 5,340.00 5,340.00 5,340.00
5,000.00 300.00 300.00 300.00 300.00
10,000.00 - - - -
- - - - -
- - - - -
264.00 264.00 264.00 264.00 264.00
26,400.00 26,400.00 26,400.00 26,400.00 26,400.00
FY 2019FY 2016 FY 2017 FY 2018 FY 2019
COST BENEFIT ANALYSIS OF STRATEGICACTION PLAN
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Strategic Management Assignment 2
The total expenditure for these suggested improvements is roughly 250,000 GBP whereas the expected
benefits in a five year horizon are 168 million GBP.
Stakeholder Management: Main action plan for effective stake holder management contains the
following steps.
 Preparation of stakeholder management plan
 Preparation of stakeholder specific strategy plans
 Formulation of interdepartmental overlapping teams for internal stakeholder management
 Formulating external stakeholder action team (minimum 2 Qatari nationals)
 Review, monitor and control the performance
For STW&TSE section one of the critical internal stakeholders is Operations and maintenance, Inter
departmental overlapping team to be formulated from beginning of the every project and making them
responsible for success or failure of the liaison process best way to control related delays. Further to
manage external stakeholders stakeholder action teams comprising minimum two (2) local people from
reputed families to be deployed to manage all the grievances and permits with external authorities.
Strategic action plan for stakeholder management with milestones for next 5 years is below table.
Cost benefit analysis of stakeholder performance management is tabulated below.
It is estimated that by spending approximately 500,000 GBP, there is a benefit of more than 200 million
GBP. Hence,
the author
strongly
recommends
SM/9687911/Non/2015/1 13
Initiative name
Initiative Owner / Sponsor
Project manager
Initiative description
Time lines
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Initiation
Preparation of stakeholder
management plan
Preparation of stakeholder specific
strategy plans
Interdepartmental overlap team
formulation
Formulating external stakeholder
action team
Review, monitor and control the
performance
Major Taks / Mile stones FY 2016 FY 2017 FY 2018 FY 2019 FY 2019
STRATEGY ACTION PLAN - STAKEHOLDER MANAGEMNET PLAN
Stakeholder Management of STW&TSE section
Head of STW&TSE section
Mr. Parvez khan
To improve the stakeholder management of STW&TSE section This will target to improve
expected annual excess expense of 70 million GBP (35 % )
Remarks
Full time staff hours, Hrs/anum 4 additional staff for interdepartmental overlap
team and external stakeholder action team
Saff costs per anum
Inter departmental overlap action
teams 2 persons @ 100 GBP per hour
External stakeholder action team 2 persons @ 100 GBP per hour
Other costs, GBP
Initiation
Preparation of plans Initial cost of agreement preparation
Monitoring and control costs
Stakeholder management software purchasing
and mantainance later
Other costs 10% of the Staff and capital costs
Total costs Total expenses GBP 500,000
Additional expenses expected to
incur due to no perfromance
management system @ 35% of
over all expected waste , GBP
Poor stakeholder manangement contributes to
35% of overall delay and budget over runs,
assuming that 0%, 60%, 70%,80% and 80%
improvement in the five years
Return
(amount of money saved)
Total savings - 203 million GBP approximately in
5 years
Intanginble benefits High / Medium / LowL H H H H
- 42,000,000.00 49,000,000.00 56,000,000.00 56,000,000.00
(115,920.00) 41,922,120.00 48,922,120.00 55,922,120.00 55,922,120.00
115,920.00 77,880.00 77,880.00 77,880.00 77,880.00
Assessment of benefits
10,000.00 3,000.00 3,000.00 3,000.00 3,000.00
28,120.00 21,780.00 21,780.00 21,780.00 21,780.00
5,000.00 300.00 300.00 300.00 300.00
20,000.00 - - - -
52,800.00 52,800.00 52,800.00 52,800.00 52,800.00
1,056 1,056 1,056 1,056 1,056
52,800.00 52,800.00 52,800.00 52,800.00 52,800.00
COST BENEFIT ANALYSIS OF STRATEGICACTION PLAN
FY 2016 FY 2017 FY 2018 FY 2019 FY 2019

Strategic Management Assignment 2
implementing the improvements in order to save additional expenses around 400 million GBP with in
next 5 years.
Part 7: 161 words: Business Linkages internally and to the ecosystem considered
Internal & External Linkages: The improvements suggested in the previous sections creates internal
(with internal stakeholders) and external linkages (Action teams to deal with external authorities).
Further one of the other internal linkages that can be strengthened is to involve O&M and DPD right
from the design stage which is handled by DDD. By doing this concern from all the departments will be
taken care from the tender stage itself resulting in preventing the need of change in scope of at later
point of time.
External linkage: Apart from that other external linkage that can be strengthened is making delivery
agreements with equipment suppliers. Most of the STW&TSE projects contain electro mechanical
equipment to be procured from outside Qatar and shipped to Qatar and long lead items contribute to
8% of the overall delays. By making delivery agreements to provide equipment of best quality at a less
lead time will help the project to avoid delays due to long lead items.
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Strategic Management Assignment 2
References
1. www.ashghal.gov.qa accessed on 12th February 2016
2. Grant M, R. (2014) Contemporary Strategy Analysis, 8th ed. John Wiley &Sons Ltd.
3. Porter, M.E. 1985. Competitive Advantage, Free Press, New York, 1985
4. Study Guide (2015) Strategic Management Study Guide, University of Manchester
5. PMBOK ® Guide (2013), A Guide to Project Management Body of Knowledge (PMBOK® GUIDE) -
5th Edition, Project Management Institute, Chapter 1, PP 13
6. Robert D. Buzzell and Bradley T. Gale, 1989, “ The PIMS Principles: Linking Strategy to
Performance”, Journal of Marketing Vol. 53, No. 2 (Apr., 1989), pp. 126-129, accessible at URL:
http://www.jstor.org/stable/1251419
7. Emam H et.al. (2015): Emam, H, Farrell, P and Abdelaal, M (2015) Causes of delay on infrastructure
projects in Qatar In: Raidén, A B and Aboagye-Nimo, E (Eds) Procs 31st Annual ARCOM Conference, 7-9
September 2015, Lincoln, UK, Association of Researchers in Construction Management, 773-782.
8. Badenfelt, Ulrika. "The selection of sharing ratios in target cost contracts." Engineering, Construction and
Architectural Management 15.1 (2008): 54-65
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