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Evolution of the Owner’s Role in Program Management - Introduction
February 19, 2008 | Author: PM Hut | Filed under: Program Management
Evolution of the Owner’s Role in Program Management - Introduction (#1 in the series Evolution of the Owner’s Role in Program Management)
By Robert Prieto
Traditional allocation of responsibility between Owner organizations and engaged suppliers of management, engineering, procurement and construction services is significantly modified when the Owner selects the utilization of a program management delivery strategy. The readiness of the owner organization to implement such a delivery strategy will be governed by many factors including overall capital project delivery volumes; prior experience, if any, with program management delivery approaches; inherent organizational capabilities and depth of staff; and, perhaps most importantly, degree of recognition of the level of self-change that adoption of a different delivery and management methodology will require. This change is at a minimum, evolutionary in nature and at its extreme, surely revolutionary.
From the program manager’s perspective, a key factor for success will be the degree to which its responsibilities can be clearly defined and responsibility and authority allocated consistent with these responsibilities and importantly, the owner organization’s own readiness. A well developed contractual and implementation framework are therefore key ingredients for success but in many cases, even the best developed frameworks are undermined by an inadequate understanding within Owner organizations of the degree of self-change required to support successful implementation of this delivery strategy. This later factor sometimes reflects passive resistance to change while in other instances it reflects inadequate organizational maturity (systems, processes, skill sets, change management and leadership skill sets) to adopt the new delivery regime.
The matrix described over the next articles in this series looks at some of the dimensions and organizational elements in which the Owner’s role must evolve. The points of comparison are not intended to be comprehensive but rather map to traditional Owner roles and organizational elements one would expect to find in an existing capital project delivery organization. For each activity the Owner’s role is first considered from a more “traditional” delivery organization model. Next, the changed circumstance to which the Owner’s organization will likely evolve is described. This changed state is meant to be illustrative rather than prescriptive and serves to highlight how thinking and skill sets must evolve under a program management delivery model. It also sets forth potential career opportunities that existing Owner’s staff can aspire to if they embrace the changes necessary rather than resist them.
Finally, the Program Manager’s role under program management is outlined in light of the changed role assumed by the Owner organization.
Robert Prieto, Senior Vice President
Robert Prieto is senior vice president for Fluor, where he leads strategy for Fluor’s Industrial and Infrastructure group. Mr. Prieto focuses on the development and delivery of large, complex projects worldwide.
Prior to joining Fluor, Bob served as chairman of Parsons Brinckerhoff Inc. As head of PB’s board of directors, he was responsible for overseeing management performance, establishing top-level policies, and ensuring the firm’s continued long term success.
He is a member of the executive committee of the National Center for Asia-Pacific Economic Cooperation, a member of the board of directors of the Business Council on International Understanding, a member of the board of the Civil Engineering Forum for Innovation, and co-founder and member of the board of the Disaster Resource Network. He currently serves on the National Research Council’s committee framing the challenges on Critical Infrastructure Systems. Until 2006 he served as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) and served as chairman of the Engineering and Construction Governors of The World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. He is also a member of the board of trustees of Polytechnic University of New York, and was previously selected as alumni of the year by its New York Chapter.
He has had an executive sponsorship role in the World Trade Center Transportation Hub; West Coast Rail Modernization; Train Protection and Warning System; Level 3 Communications Long Haul Network and Superconducting Super Collider.
Prieto holds a master of science in nuclear engineering from Polytechnic University of New York and a bachelor of science in nuclear engineering from New York University.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006. For more information, visit www.fluor.com.
Related Articles
- Evolution of the Owner's Role in Program Management - Activity: Schedule
- Evolution of the Owner's Role in Program Management - Activity: Scope
- Evolution of the Owner's Role in Program Management - Activity: Project Management
- Evolution of the Owner's Role in Program Management - Activity: Budget
- Evolution of the Owner's Role in Program Management - Activity: Risk Assessment & Contingency
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