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Project Claims and Damages Report
Name of Project
In Figure 27 on page 114 of Chapter 6 of Walker & Walker book “Collaborative Project Procurement arrangements”, the authors suggest RBP (Relationship Based Procurement) model applying Wittgenstein Idea of Family Resemblance.
Please explain your understanding of this RBP model and its sixteen (16) elements in the light of concepts discussed in 1st and 2nd Column of Tables 11, 12 & 13 given on pages 117 - 123 in Chapter 6. (Word limit is 1500 +/- 10%).
Walker & Walker recently developed the Relationship Based Procurement (RBP) that was adapted from the understanding that it can be compared to a family relationship advanced by Wittgenstein. According to Walker & Walker (2014), the common concept that defines RBP across various opinions is its reference to a mechanism through which a project can be delivered while embracing collaboration of the stakeholders and a common method of solving problems.
The ability to solve emerging project problems through established framework in a collaborative manner are defining features of any RBP method. RBP recognizes that all contracts involve some sort of relationship as anchored in the family set-up. The relationship within the contractual agreement can be transactional where the project owner adopts a hands-off or hands-on like in the RBP where the owner actively participates in the decision-making process. The project owner collaborates with the appointed delivery team for the delivery of key result areas (KRA).
The central cores in the RBP taxonomy are the components for delivering the anticipated outcomes of the project. According to Walker & Walker (2014), the cores are surrounded by elements that are useful in explaining various forms of RBP. Each RBP version has unique characteristics of the elements that fall within the general similarity such that when the elements are viewed holistically, they can aid in identifying the specific dimensions of the RBP form. Wittgenstein’s idea of RBP encompasses 16 elements that interact to influence the outcome of a project. Project delivery aimed at achieving defined project KRAs is supported by the 16 elements. At the base of the model are elements that provide the guidance on how the RBP form would operate.
Motivation and Context: The motivational and context elements define how the collaboration process. The focus of the project manager should be to deliver on the best value aspect of the project rather than focusing on cost control. It spells out the best value that the process aims to achieve, evaluation of known risks, the emergence recovery path and the relational rationale among other factors. These factors are defining motivators that are likely to shape the logic that the stakeholders and the project team in particular, will adopt during the collaborative process. Another important element in the RBA model is the Joint governance structure.
Joint Governance Structure: This structure defines how the decision-making process will be done throughout the project. The purpose of the governance structure is to establish the management structure that delivers on decisions that are robust, logical, and repeatable. For example, the governance structure would define the roles of the project manager and the responsibilities of project partners in the collaborative system. It is through the governance structure that the organization establishes the approach to conducting internal activities. It also defines the best value strategy that hinges on the stated KRAs and the key performance indicators (KPI).
The integrated risk mitigation strategy: The risk mitigation strategy is an element within the RBA model that guides the risk sharing approach among the stakeholders in the project. Project partners establish their share of inherent risks in the project and the actions that will be taken by each stakeholder in mitigating the risks. The risk mitigation strategy also establishes the integration of the system in such a manner as to limit the occurrence of potential risks. Walker & Walker (2014) further elaborate on the joint communication strategy as an element of the RBP model.
The Joint Communication Strategy: The joint communication strategy spells out the integrated communication platform that will be used during the project implementation process. Communication process is a central element in the contract negotiation process and it is important for the project manager to establish the necessary platform that will guide the process of communication between the project owner and the project delivery team.
The Substantial Co-Location: The substantial co-location element establishes in the contract negotiation process where the resources that would be used in the project would be located. Collocation refers to the centralization of the project resources in one location to ease access and management of the critical material resources. The Wittgenstein’s idea of the RBP model envisions these five elements as the platform foundation facilities for the model. The second and equally important component of the RBP model comprises five elements that shape the behavior of stakeholders in driving normative practices to strengthen collaborative efforts.
Authentic Leadership: This refers to the wisdom, pragmatism, and spirit of the project leadership. The project manager who leads the project delivery process must demonstrate these qualities when making decisions and when interacting with other team players. Another behavioral element in the RBP model is the trust-control balance.
Trust-Control Balance: This element establishes the level of autonomy in decision-making process for the stakeholders. It clarifies the extent to which individual team players can be entrusted to make certain decisions that impact the project outcome. Trust is an important aspect in contract negotiation as it minimizes suspicion among stakeholders that might delay the project timelines. Trust-control balance also extends to establishing workplace culture that promotes health and safety, relationship building and forms of trust.
Commitment to Innovate: The commitment to being innovative during the project life is a crucial element. The project manager must seek innovative ideas that would be critical in delivering desirable outcomes. It is also critical that every team member demonstrates a commitment to continuous improvement in their productivity. Cultural demand requires hiring highly motivated and skilled individual for the project team. Innovative ideas are tested and prototypes tested during the evaluation of this element. High level of intensity demonstrated for these behavioral factors is critical for promoting the level of collaboration in the RBP model. On the other hand, if the level of intensity shown for these elements is low then the collaboration platform in the RBP model would be considered to be minimal.
The Common Culture and Mindset: The common culture and mindset appropriate for the project outcomes is an important element in the behavioral aspect of the RBP model. Wittgenstein posits that as a family, projects must advance a common culture and mindset. According to Walker & Walker (2014), the project manager and team must align common goals toward realizing the overall KRAs. The project manager must also establish performance measurement and output levels within the project team, challenge members toward seeking excellence in the service delivery and recruit necessary support staff.
No-Blame culture: The project manager establishes the rationale for establishing a no-blame culture within the project team. No blame refers to each player in the project delivery team to assume a common responsibility toward for the success and failures of the project (Lloyd-Walker & Walker, 2015). The project manager can achieve this objective by building a team spirit and designing outcomes based on collaborative activities. The project manager should encourage project team members to acknowledge potential problematic situations early to avoid shifting blame on others.
Consensus decision-making: consensus refers to the extent on which decisions regarding operational and strategic planning are agreed by all executive team members. The project team can attain a consensus decision-making process by engaging in elaborative and extensive discussions on important issues. However, undue elaborative process may compromise the project timelines (Lloyd-Walker & Walker, 2015). In this regard, the team may focus on making project goals clear while leaving the means of delivering the aims vague in the interest of time. The project manager should also adopt a collaborative leadership style when dealing with other team players.
Focus on learning and continuous improvement: continuous improvement entails delivering projects that can be used as compelling examples for best project practice and where teams can use it as reference for continuous improvement. The project manager should impress upon the team to prioritize KRA and KPIs as success factors. Project participants should adopt the culture of learning on-job and improving their productivity.
Incentive Arrangement: incentives refer to the process of establishing the mechanism for sharing project gains and project losses. The project manager should establish a risk and reward structure for the project team. Team should be encouraged during the early contract negotiation process to put the profit/loss sharing structure that recognizes total project delivery outcomes (Lloyd-Walker & Walker, 2015).
Pragmatic Learning-in-Action: the project team leadership should approach the project work as a learning opportunity. The team remains aware that for the project to succeed there would be a need to collaborate, discuss and analyze project variables as a team. Often, unexpected opportunities may arise in the course of the project life and teams should be ready to exploit these opportunities as a learning curve (Lloyd-Walker & Walker, 2015). Pragmatic learning-in-action can be achieved through conscious experimentation on important issues and a readiness to learn if the experiments fail. Failures are seen as an opportunity to approach the issue at hand from a different perspective in light of the lessons learnt from the failures.
Transparency and Open-Book Practices: Transparency refers to the extent to which project leaders are willing to be scrutinized for their decision-making processes. Project tea, leaders should be receptive to regular scrutiny and audits. To encourage transparency, the team should have trust in the team performing audits not to take undue advantage of their privileged access to information. However, it is important for all stakeholders to adhere to both ethical and legal principles for this element to be enforceable. Unethical practices would breed resistance to scrutiny. Equally important is the balance between hands-on and hands-off approach to management adopted by the leadership team (Lloyd-Walker & Walker, 2015).
Mutual Dependency and Accountability: This element seeks to address collaboration effort that recognizes interdependency of the decisions taken by the project team leaders. The purpose of this element is to encourage unified efforts within the team when communicating during the project processes. Leaders ought to adopt team spirit that recognizes that all of them will either win together or fail together and therefore a need to remain in support of each other. Participants should counter potential inhibitors to collaboration efforts.
Part B (10 Marks)
Claims and Damages report
Program Information
Program Name: Queensland Health Payroll Program
Date: Date of the current report
Project Ownership: Area responsible for the project
Prepared by: Name and project position
Distribution List: List of those receiving the report
Project1: Forward strategy for payroll system
The preferred form of procurement as an outcome from the negotiation process for Project 1 proposed in the PPMP20011 Projects Negotiation and Conflict Report was Relationship Based Procurement model.
The subthemes and KSAE’s that will best mitigate and reduce project claims and damages are itemised in the following tables.
Platform Foundations (pp. 117-118)
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Elements |
KSAE’s to maximize the effectiveness (pp. 123-133) |
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1. Motivation and Context |
Technical KSAE: The focus of the project team should be on knowing the payroll system that would work best for Queensland Health (QH). Care should be given to understand how the adopted system works and what makes it work. This knowledge would inform where to implement the chosen payroll system and how it is likely to affect other parts of the payroll system (Lloyd-Walker & Walker, 2015). The determination of the system should also incorporate the appropriate time for implementation after necessary pretesting. The priority at the motivational level is to understand the technical aspects of the system that would add value to the payroll outcomes. Project Management KSAE: Additional processes that require extra allocation of funds should be frozen. The focus should on delivering a system that improves on value generation. Control of costs associated with ballooning project expenses should be curtailed. This process is achieved through adherence to budgets and consensus decision-making if additional costs are to be incurred. Business Solution KSAE: QH should develop a clear vision for the payroll system. The vision should establish what the system intends to achieve. The vision should then be communicated to the project team to guide planning and implementation phase (QH Payroll Review Report, 2012). Relational KSAE: QH and IBM should build an environment of trust in the delivery of a sound payroll system. Authenticity of the leaders suggests that what leaders say is actually what they do.
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2. Joint Governance structure |
Technical KSAE: establish a link between QH financial system upgrade and Payroll Portfolio Governance since the existing interdependence between the two systems (QH Payroll Review Report, 2012). Change business processes while focusing on improving accuracy, timeliness, and decreasing the period for retrospection and manual entry of data into the system. Project Management KSAE: The project manager should Define the roles and responsibilities of each stakeholder to ease communication. Clearly defined roles would limit inter-party conflict and build trust. Business Solution KSAE: QH should proactively engage all stakeholders as a critical step in reducing potential claims and disputes. Relational KSAE: Building trust through effective structures for communication and team-building.
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3. Integrated Risk Mitigation Strategy |
Technical KSAE: The project team leaders should identify risks that are inherent in the proposed payroll system. The process starts with determining the weak areas in the current system and seeking to install a system that builds on the strength of the current system. Project Management KSAE: The project team should focus on determining what processes of the payroll system work and how process can be improved. Importantly, the project manager must identify the risks inherent in the new payroll system. Business Solution KSAE: QH should engage an independent expert to ascertain issues of quality assurance. Collaboration among stakeholders to share potential strengths and pitfalls of the new payroll system. Relational KSAE: Establish mechanism for stakeholder’s responsibility to share gains and losses of the project as a team (QH Payroll Review Report, 2012).
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4. Join Communication Strategy |
Technical KSAE: Identify potential inhibitors to communication between parties. The project leaders must discuss mechanism for inputting changes into the system and the individuals tasked with the responsibility. Project Management KSAE: Project leaders from both IBM and QH should evaluate communication paradigms between the parties involved in the project. Business Solution KSAE: QH should communicate to the management staff potential benefits of the new payroll system. QH and IBM should also communicate the way forward pertaining to service delivery in the midst of system breakdown (QH Payroll Review Report, 2012).
Relational KSAE: The contract agreement should spell individuals from both parties that would be responsible for communicating project decisions.
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5. Co-location Strategy |
Technical KSAE: The project teams should identify resources that would be necessary for the project work. These resources should be kept in an ideal, single place. Project Management KSAE: identifying critical resources along the project processes are centrally located. Business Solution KSAE: The project team should make project resources available to teams that would need the resources. Relational KSAE: determine team leaders that would have access to the equipment, softwares and hardware that would be used in the payroll upgrade process.
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Behavioural Factors (pp. 119-120)
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Elements |
KSAE’s to maximize the effectiveness (pp. 123-133) |
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6. Authentic Leadership |
Technical KSAE: knowledge of what the leader ought to do in different scenarios. Technical skills are relevant in leading other team members. Individuals appointed in different leadership capacity must have requisite knowledge.
Project Management KSAE: recognise potential problems in disruptive changes in the payroll system and devise ways to manage proposed change. Identifying leadership skills that would be relevant at various points along the project cycle (QH Payroll Review Report, 2012). Business Solution KSAE: QH and IBM leadership should demonstrate wisdom and understanding in key result areas. IBM should also demonstrate authentic leadership to build trust among the team members. Relational KSAE: Regularly communicate new ideas with the line managers to keep them informed of the project progress.
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7. Trust-Control Balance |
Technical KSAE: identify potential risks associated with creating autonomous leadership at various operational levels. Project Management KSAE: Establish checks and balance between departments to ensure that trust between stakeholders is not compromised. Business Solution KSAE: any significant disruption to staff payroll should be postponed to a later date to minimize potential negative effect as they would lose necessary trust in the system and the leadership of the project (QH Payroll Review Report, 2012). Staff project leadership with persons of integrity to minimize potential fraud. Relational KSAE: Demonstrate authentic leadership between IBM and QH
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8. Commitment to be Innovative |
Technical KSAE: QH should emphasize the innovative features in the new payroll system. Project Management KSAE: Project team leaders should encourage project team leaders to think creatively toward solving systemic problems in the payroll department. Business Solution KSAE: QH should make innovation and creativity an important value for the department. This core value should be adopted by all leaders and escalated throughout all decision-making levels. Relational KSAE: ability to encourage team players to consider each other as agents of positive change.
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9. Common best-for-project Mindset and Culture |
Technical KSAE: Establish the best organizational culture and mindset to guide the project processes. Project Management KSAE: Entrench organizational culture into the decision-making process. Business Solution KSAE: : Ensure that business cases identified as cases for improvement of the payroll system support the organizational culture. Relational KSAE: communicate the organizational culture and mindset to all stakeholders involved.
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10. No-blame Culture |
Technical KSAE: Establish systems that take responsibilities for their actions. Project Management KSAE: Establish decision-making process that is based on team work. Business Solution KSAE: Define organizational culture that is geared toward accepting failure and working toward improving outcomes. Relational KSAE: Establish clear communication channels for early reporting of problems.
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Processes, Routines, and Means (pp. 121-123)
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Elements |
KSAE’s to maximize the effectiveness (pp. 123-133) |
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11. Consensus Decisions |
Technical KSAE: QH and IBM should establish structures for collaborative efforts in decision-making process. Project Management KSAE: New payroll system to be adopted by QH should be decided on the basic of all stakeholder engagement. All sub-systems that would be affected should be included in the decision-making. Business Solution KSAE: identify parties and sub-systems that would be affected if a new payroll system is implemented and establish business culture that support participative leadership. Relational KSAE: Have the trust in other stakeholders to represent the best interest of their departments.
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12. Learning and Continuous Improvement |
Technical KSAE: establish potential learning outcomes from the new payroll system. Project Management KSAE: Align project goals with individual career progress. Key performance indicators should be used to improve the skills of the project team members. Business Solution KSAE: QH should treat failures within the payroll system as opportunities to adopt a different strategy in procurement. Relational KSAE: Encourage members to adopt positive view in failures and seek ways to improve on outcomes through collaborative learning (Yousefi et al., 2010).
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13. Incentive Arrangements |
Technical KSAE: establish how the payroll system affected the performance of staff at QH. Project Management KSAE: Explore ways of simplifying the current QH payroll system to improve individual staff performance. Business Solution KSAE: determine the characteristics of a new payroll system and how they fit into the overall business vision. This determination would require evaluation of the whole government payroll system. Relational KSAE: Liaise with stakeholders to determine how the new payroll system affected employee performance.
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14. Pragmatic Learning-in-Action |
Technical KSAE: Determine aspects of the project that support user-learning. Project Management KSAE: establish how failures in the payroll system can be used to improve current knowledge in payroll management (Cheung & Chow, 2011). Business Solution KSAE: Develop business-wide culture to take failures as linchpin for making individual progress. Relational KSAE: encourage supportive culture and participatory leadership attitudes.
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15. Transparency |
Technical KSAE: determine how matters relating to funding of the payroll system can be reported. Project Management KSAE: establish critical elements in the payroll system that should be audited to guarantee transparency. Develop ways of scrutinizing the decision-making process regarding funding for the payroll. Report on the costs related to maintenance of the payroll system, discretionary improvement, and system enhancements (QH Payroll Review Report, 2012). Business Solution KSAE: engage stakeholders on funding shortfalls particularly between what was allocated ad what was committed to the project. Relational KSAE: regularly communicate expenses regarding system enhancement and the rationale for making such decisions.
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16. Mutual Dependence and Accountability |
Technical KSAE: establish system within the payroll delivery project that are interconnected and how they are likely to affect each stakeholder. Project Management KSAE: QH should design accountability structures that are interconnected and requiring the input of other stakeholders to realize individual goals. Business Solution KSAE: QH should relate reward structures to the success or failure of the project. All stakeholders should be informed of the need to have a common business front in realizing individual as well as organizational goals (Cheung & Chow, 2011). Relational KSAE: Project leaders should communicate the need to remain accountable to other stakeholders throughout the project enhancement period.
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References
Cheung, S. O., & Chow, P. T. (2011). Withdrawal in construction project dispute negotiation. Journal of Construction Engineering and Management, 137(12), 1071-1079.
Lloyd-Walker, B., & Walker, D. (2015, April). Collaborative project procurement arrangements. Project Management Institute.
QH Payroll Review Report. (2012). Queensland Health. KPMG. Retrieved from http://www.healthpayrollinquiry.qld.gov.au/__data/assets/pdf_file/0008/177902/KPMG_Report_dated_31_May_2012.PDF
Yousefi, S., Hipel, K. W., & Hegazy, T. (2010). Attitude-based strategic negotiation for conflict management in construction projects. Project Management Journal, 41(4), 99-107.
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