20 Oct Cutting-Edge Research Identifies the True Source of Non-performance
Through 28 years of research in the delivery of construction and other services, we have identified that project performance has not improved. Performance issues identified in the 1980s is now being recognized in 2020. The poor performance worldwide has been defined as:
- Lack of production improvement.
- Projects are delayed, over-budget, low quality, and have poor customer satisfaction.
- Large, experienced contractors are in litigation and are walking away from projects because they have suffered significant losses.
For the longest time, professionals have identified the “lack of technical expertise” as the source of the problem. Our research shows the solution is to move project expertise from the owners to the vendors. The key is to keep owners from managing, directing and controlling vendors. The owners should identify and utilize vendor expertise. This eliminates the need to share risk through contracts. Instead it transforms project management and risk management into to risk mitigation.
The new approach has been repeatedly tested with the following results:
- Client stakeholders and their professional representatives are responsible for 90% of project cost and time deviations.
- The approach has resulted in minimizing vendor-caused project cost deviations to less than 1%.
- Using simple metrics improves risk mitigation, and ends the need to share too much information.
- Performance information of contractors changes from key performance indicators [which are used to control the vendor and enforce project requirements] to performance information that ensures the vendor can effectively deliver the desired services.
- The Best Value Approach (BVA) has procurement and project management components; with the project management components being the most critical.
PBSRG, in partnership with CIB W117 and the SKEMA Business School’s Project Management dBA program, is currently performing research on the BVA and is attempting to partner with project management visionaries in all the major continents.
PBSRG is seeking to accomplish the following through the CIB W117:
- Attract visionaries to learn, educate and do research as partners in the new BVA paradigm.
- Give presentations to major universities, government and private sector owners to proliferate the understanding of the BVA.
If there are academic researchers in the areas of project management, risk management, using of performance information or procurement, please contact the following personnel:
- Yutian Chen, yutian.c@leadaz.org [China]
- Joseph Kashiwagi, josephkashiwagi@ksm-inc.com [Europe, United States]
- Nguyen Le, nguyen.l@leadaz.org [Asia, excluding China]
- Dean Kashiwagi, dkashiwagi1@gmail.com [Australia, New Zealand, Malaysia]