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Lecture Project management: The managerial process (5/e): Chapter 12 - Erik W. Larson, Clifford F. Gray

Chapter 12 - Outsourcing: Managing interorganizational relations. This chapter extends the previous two chapters’ discussion of building and managing relations by focusing specifically on issues surrounding working with people from other organizations to complete a project. | Where We Are Now 12– Introduction to Project Partnering Partnering A process of transforming contractual arrangements into a cohesive, collaborative team that deals with issues and problems encountered to meet a customer’s needs. Assumes that the traditional adversarial relationship between the owner and contractor is ineffective and self-defeating. Assumes that both parties share common goals and mutually benefit from the successful completion of projects. Factors favoring partnering: Existence of common goals High costs of the adversarial approach Shared benefits of the collaborative approach 12– Outsourcing Project Work Advantages Cost reduction Faster project completion High level of expertise Flexibility Disadvantages Coordination breakdowns Loss of control Interpersonal conflict Security issues 12– Strategies for Communicating with Outsourcers STRATEGY 1: Recognize cultural differences STRATEGY 2: Choose the right words STRATEGY 3: Confirm your requirements STRATEGY | Where We Are Now 12– Introduction to Project Partnering Partnering A process of transforming contractual arrangements into a cohesive, collaborative team that deals with issues and problems encountered to meet a customer’s needs. Assumes that the traditional adversarial relationship between the owner and contractor is ineffective and self-defeating. Assumes that both parties share common goals and mutually benefit from the successful completion of projects. Factors favoring partnering: Existence of common goals High costs of the adversarial approach Shared benefits of the collaborative approach 12– Outsourcing Project Work Advantages Cost reduction Faster project completion High level of expertise Flexibility Disadvantages Coordination breakdowns Loss of control Interpersonal conflict Security issues 12– Strategies for Communicating with Outsourcers STRATEGY 1: Recognize cultural differences STRATEGY 2: Choose the right words STRATEGY 3: Confirm your requirements STRATEGY 4: Set deadlines 12– Preproject Activities—Setting the Stage for Successful Partnering Selecting a Partner(s) Voluntary, experienced, willing, with committed top management. Team Building: The Project Managers Build a collaborative relationship among the project managers. Team Building: The Stakeholders Expand the partnership commitment to include other key managers and specialists. 12– Project Implementation—Sustaining Collaborative Relationships Establish a “we” as opposed to “us and them” attitude toward the project. Co-location: employees from different organizations work together at the same location. Establish mechanisms that will ensure the relationship withstands problems and setbacks. Problem resolution Continuous improvement Joint evaluation Persistent leadership 12– Project Completion—Celebrating Success Conduct a joint review of accomplishments and disappointments. Hold a celebration for all project participants. Recognize special contributions. 12– Why