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Project Manager : Project Manager Dec Jan 2014
14 Project Manager •THOUGHT LEADERS • Lack of skills -- it has been a long-held belief that clients do not have the necessary procurement skills or expertise to adopt and execute innovative for ms of procurement, but we disagree. Training to promote e xpertise is always of value, particularly for clients with major programs. We believe that time and organisational pressures, rather than a lack of skills, are the major contributing factors to not adopting new for ms of contracts. Indeed, it is completely understandable that clients move quickly to deliver projects according to their prior experience or in response to industry trends to meet desired organisational and personal objectives. However, they are likely to then be missing opportunities to ma ximise project outcomes and potentially storing up future problems that could lead to delays and cost over runs. A strategic response ere is little debate that by taking the time to e ectively de ne project scope and adopting a strategic approach to procurement that e ectively balances risk with project drivers, organisations can reduce transaction costs and improve outcomes. But without an accepted approach, many professionals simply do not have the resources to do just that. We propose a simple, structured and robust approach to delivering better procurement choices: • Step one: De ne project scope -- the rst step is to clearly articulate the project vision and rigorously test the assumptions underlying the vision. e project team then needs to clearly de ne project scope, risks and opportunities. • Step two: Procurement analysis -- with a clear project vision, the project now needs to be de ned and decisions made on who will assume the delivery and perfor mance risk. Adopting a four-step approach to procurement analysis may help. 1. Understand and de ne key project objectives 2. Identify project comple xities and constraints 3. Identify the key risks and risk tolerance 4. Deter mine a procurement strategy that aligns risks and responsibilities • Step three: Risk analysis -- risk analysis and management is the key to successful project de nition. It should also be an integral part of the procurement process to ensure that the appropriate marriage of risk and responsibility is adopted. is third step should also set the framework for the delivery of risk management throughout the course of the project and as such, remain a dynamic process. By adopting a strategic approach to procurement, organisations will overcome the three major sins of project procurement, achieve the optimal approach and secure the best outcomes. ••• PROCUREMENT WORKSHOP AIPM is running Advanced Professional Practice Workshops (APPW) to demystify the process of procurement for project management professionals. Participants will gain an understanding of procurement plans for substantial projects, international procurement and commerce arrangements, closing out contracts effectively, successful supplier management, and risk mitigation in forming, awarding and accepting contracts. To find out more about upcoming workshops, contact the AIPM National Office. W: www.aipm.com.au E: firstname.lastname@example.org T: (02) 8288 8700 A STRATEGIC APPROACH TO PROCUREMENT WILL HELP ORGANISATIONS OVERCOME THREE MAJOR SINS OF PROJECT PROCUREMENT, ACHIEVE THE OPTIMAL APPROACH AND SECURE THE BEST OUTCOMES
Project Manager Oct Nov 2013
Project Manager Feb Mar 2014