Decision making

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Week 8

“Decisions’ Elements”

Dr Ramesh Vahidi [email protected]

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Southampton Business School

24th Mar 2022

Overall Review: Aspects of DM in Projects

• Strategies

• Success

• Context

• Stakeholders’ goals, requirements, expectations, …

• DM Models

• DM in groups

• Problem identification & formulation techniques

• Individuals as decision makers

• Heuristics methods

• Human errors & biases

• Decision Types

• Related disciplines

• Classification of project decision

• Interdependence

• Reality in DM Conceptual Aspect

Decision makers Aspect

Decision Elements

Aspect

Decision Methods & Processes Aspect

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Proportion of Decision Elements

Traditional

Hard Factors

Soft Factors

Contemporary

Hard Factors

Soft Factors

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Hard factors:

- Easy to spot

- Easy to measure

- Not project specific

Soft factors:

- Hard to spot

- Hard to measure

- Project specific

Examples: Time, cost, technical specifications, number of people affected, …

Examples: Long term benefits, acceptability, strategic, reputation, …

Elements in Project Decision

– Decision Elements: What we normally consider/should consider in making or analysing a decision. Besides, elements affect our decisions unknowingly and unintentionally.

– Numerous factors specifically for large projects. Which ones people consider or affect them depend on their:

– Decision making skills, experiences, styles and competencies;

– Natural limitations (e.g., cognitive, personality, bounded rationality and biases);

– Available data and knowledge related to the decision in the org.;

– Decision making biases;

– Specific situations and context;

– ….

– Quality of decision making and capability of decision makers:

– How many of the influencing elements were identified?

– How many they actually did use/consider in making a decision?

– To what extent they actually used/considered these elements.

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If and how these could inform making

and analysing decisions?

Stakeholder Management

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If and how these could

help in making and

analysing decisions?

Main Decision Elements in Projects - Some Main Sources

• Who should be involved? their concerns? Impact?

• Governance impacts?

• What contextual factors can impact the decision? How should they be considered in decision making?

• How can the decision affect project success?

• Which success factors/criteria can affect the decision?

• What is the impact of decision outcome on project/org. strategies and vs.?

• Are these

aligned?

Project Strategies

Project Success

Project Stakeholders

Project Context

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Leadership Governance

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If and how these could

help in making and

analysing decisions?

Project

Strategy -

Strategic

Management

of Projects

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Let’s agree on: ‘Project Objective’

“Something toward which work is to be directed, a

strategic position to be attained, a purpose to be

achieved, a result to be obtained, a product to be

produced, or a service to be performed.”

(PMI, 2013, p.548, my italics)

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X MANG6312@Ramesh Vahidi 2022

Status of ‘Project Strategy’ Studies

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• A recent development;

• Growing agreement on its impact on firms and project success;

• Should be created based on the situations/project.

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Why basically develop a Project Strategy?

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“Ultimately, the goal is to provide a framework and guidelines for

organizations and managers on how to plan their projects with a

strategic focus in mind and how to manage them in a more strategic way

for better business results.”

Shenhar and Patanakul (2010, cited in Turner, 2014, p.35)

RV: And basically from a practical point of view to be able to justify your project, to be able to secure required but scarce resources within the organization and survive within the changing organizations!

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Portfolio Strategy

Programme Strategy

Project Strategy

Project Objective

/Plan /tasks

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Organizational Strategy

Various Levels of Strategy – Large Org. with Many Projects

(Maylor, 2010)

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Project Strategy and its Components

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Shenhar and Patanakul (2014, cited in Turner, 2014, p.39)

Project Strategy: the project perspective, position, and guidelines for what to do and how to do it, to achieve the highest competitive advantage and the best value from the project.

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*These should be embedded from the very early stages of formation and some were discussed further in Success lecture.

‘Shenhar and Patanakul’s’ (2014, cited in Turner, 2014) suggested questions for designing ‘Project Strategy’

The source provides a detailed example.

(Table extracted from Turner, 2014, p.45)

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Traditional vs Strategic Approach

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Maylor (2010, p.52)

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Global Extension of Strategies

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https://www.un.org/youthenvoy/2016/09/un-global-compact-prme-announce-student-engagement- platform-support-sdgs/

*Responsible Management Education → Responsible Managers **“Responsible Graduates”!

***“Responsible Human Beings”!!

From the Exercise on SDGs …

• How were these relevant to your selected project?

• Will these affect your project management style? How?

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https://www.un.org/youthenvoy/2016/09/un- global-compact-prme-announce-student- engagement-platform-support-sdgs/

Now You Tell Me …

• What were the most important things you learned from this lecture?

• How will you use these in analysing a case study?

• How will you use these as a project manager?!

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Do you see how your country report has helped you in developing your understanding of the external

environment of projects in your country?

Food for Thought: Self-reflect and have a developmental plan for yourself!

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• What are the capabilities of a modern world project leader then?

• How could these be developed?

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Readings/References Boddy, D. (2014) Management: an introduction. 5th ed. Imprint: Harlow : Financial Times Prentice Hall. [electronic resource via the Library]. Chapter 3.

Combe, C. (2014) Introduction to Management. Oxford: Oxford University Press.

Maylor, H. (2010) Project management. 4th ed. [electronic resource]. Pearson education/Financial Times Prentice Hall. Chapter 3. (Abbey Bank Case, page 56)

*Turner, R. (ed.) (2014) Gower handbook of project management. 5th Ed. Farnham: Gower. Chapter 3. 2010 Edition has more or less the same content on this particular topic but always try using the most recent versions.

Patanakul, P. & Shenhar, A.J. (2012) ‘What Project Strategy Really Is: The Fundamental Building Block in Strategic Project Management’. Project Management Journal. pp.4-20.