问答题
2.The town of Brighttown in Euraria has a mayor (elected every five years by the people in the town) who is responsible for, amongst other things, the transport policy of the town.
A year ago, the mayor (acting as project sponsor) instigated a ‘traffic lite’ project to reduce traffic congestion at trafficlights in the town. Rather than relying on fixed timings, he suggested that a system should be implemented whichmade the traffic lights sensitive to traffic flow. So, if a queue built up, then the lights would automatically change togreen (go). The mayor suggested that this would have a number of benefits. Firstly, it would reduce harmful emissionsat the areas near traffic lights and, secondly, it would improve the journey times for all vehicles, leading to drivers‘being less stressed’. He also cited evidence from cities overseas where predictable journey times had been attractiveto flexible companies who could set themselves up anywhere in the country. He felt that the new system would attractsuch companies to the town.
The Eurarian government has a transport regulation agency called OfRoad. Part of OfRoad’s responsibilities is tomonitor transport investments and it was originally critical of the Brighttown ‘traffic lite’ project because the project’sbenefits were intangible and lacked credibility. The business case did not include a quantitative cost/benefit analysis.OfRoad has itself published a benefits management process which classifies benefits in the following way.
Financial:A financial benefit can be confidently allocated in advance of the project. Thus if the investment will save$90,000 per year in staff costs then this is a financial benefit.
Quantifiable:A quantifiable benefit is a benefit where there is sufficient credible evidence to suggest, in advance, howmuch benefit will result from the project. This benefit may be financial or non-financial. For example, energy savingsfrom a new building might be credibly predicted in advance. However, the exact amount of savings cannot beaccurately forecast.
Measurable benefit:A measurable benefit is a benefit which can only be confidently assessed post-implementation,and so cannot be reliably predicted in advance. Increase in sales from a particular initiative is an example of ameasurable benefit. Measurable benefits may either be financial or non-financial.
Observable benefit: An observable benefit is a benefit which a specific individual or group will decide, using agreedcriteria, has been realised or not. Such benefits are usually non-financial. Improved staff morale might be an exampleof an observable benefit.
One month ago, the mayoral elections saw the election of a new mayor with a completely distinct transport policywith different objectives. She wishes to address traffic congestion by attracting commuters away from their cars andonto public transport. Part of her policy is a traffic light system which gives priority to buses. The town council ownsthe buses which operate in the town and they have invested heavily in buses which are comfortable and havesignificantly lower emissions than the conventional cars used by most people in the town. The new mayor wishes toimprove the frequency, punctuality and convenience of these buses, so that they tempt people away from using theircars. This will require more buses and more bus crews, a requirement which the mayor presents as ‘being good forthe unemployment rate in this town’. It will also help the bus service meet the punctuality service level which itpublished three years ago, but has never yet met. ‘A reduction in cars and an increase in buses will help us meet ourtarget’, the mayor claims.
The mayor has also suggested a number of initiatives to discourage people from taking their cars into the town. Sheintends to sell two car parks for housing land (raising $325,000) and this will reduce car park capacity from 1,000to 800 car spaces per day. She also intends to raise the daily parking fee from $3 to $4. Car park occupancy currentlystands at 95% (it is difficult to achieve 100% for technical reasons) and the same occupancy rate is expected whenthe car park capacity is reduced.
The new mayor believes that her policy signals the fact that Brighttown is serious about its green credentials. ‘This’,she says, ‘will attract green consumers to come and live in our town and green companies to set up here. Thesecompanies and consumers will bring great benefit to our community.’ To emphasise this, she has set up a Go Greenteam to encourage green initiatives in the town.
The ‘traffic lite’ project to tackle congestion proposed by the former mayor is still in the development stage. The newmayor believes that this project can be modified to deliver her vision and still be ready on the date promised by herpredecessor.
Required:
问答题
A ‘terms of reference’ (project initiation document, project charter) was developed for the ‘traffic lite’ project to reduce traffic congestion.
Discuss what changes will have to be made to this ‘terms of reference’ (project initiation document, projectcharter) to reflect the new mayor’s vision of the project. (5 marks)
【正确答案】Objectives and scope
From the perspective of the ‘traffic lite’ project, the change in mayor has led to an immediate change in the objectives drivingthe project. This illustrates how public sector projects are susceptible to sudden external environmental changes outside theircontrol. The project initially proposed to reduce traffic congestion by making traffic lights sensitive to traffic flow. It wassuggested that this would improve journey times for all vehicles using the roads of Brighttown. However, the incoming mayornow wishes to reduce traffic congestion by attracting car users onto public transport. Consequently she wants to develop a traffic light system which will give priority to buses. This should ensure that buses run on time. The project is no longer concerned with reducing journey times for all users. Indeed, congestion for private cars may get worse and this could further encourage car users to switch to public transport.
An important first step would be to confirm that the new mayor wishes to be the project sponsorfor the project, because theproject has lost its sponsor, the former mayor. The project scopealso needs to be reviewed. The initial project was essentiallya self-contained technical project aimed at producing a system which reduced queuing traffic. The revised proposal has muchwider political scope and is concerned with discouraging car use and improving public bus services. Thus there are alsoproposals to increase car parking charges, to reduce the number of car park spaces (by selling off certain car parks for housingdevelopment) and to increase the frequency, quality and punctuality of buses. The project scope appears to have beenwidened considerably, although this will have to be confirmed with the new project sponsor.
Only once the scope of the revised project been agreed can revised project objectivesbe agreed and a new project plandeveloped, allocating the resources available to the project to the tasks required to complete the project. It is at this stage thatthe project manager will be able to work out if the proposed delivery date (a project constraint) is still manageable. If it isnot, then some kind of agreement will have to be forged with the project sponsor. This may be to reduce the scope of theproject, add more resources, or some combination of the two.
【答案解析】
问答题
(b)The new mayor wishes to re-define the business case for the project, using the benefits categorisation suggestedby OfRoad.
Identify costs and benefits for the revised project, classifying each benefit using the guidance provided byOfRoad.(14 marks)
【正确答案】Cost benefit
The re-defined project will have much more tangible effects than its predecessor and these could be classified using thestandard approach suggested in the scenario. Benefits would include:
–One-off financial benefit from selling certain car parks – this appears to be a predictable financial benefitof $325,000which can be confidently included in a cost/benefit analysis.
– Increased income from public bus use – this appears to be a measurable benefit, in that it is an aspect of performancewhich can be measured (for example, bus fares collected per day), but it is not possible to estimate how much incomewill actually increase until the project is completed.
– Increased income from car parks – this appears to be a quantifiable benefitif the assumption is made that usage of thecar parks will stay at 95%. There may indeed be sufficient confidence to define it as a financial benefit. Car park placeswill be reduced from 1,000 to 800, but the increase in fees will compensate for this reduction in capacity. Currentexpected daily income is 1,000 x $3 x 0·95 = $2,850. Future expected income will be 800 x $4 x 0·95 = $3,040
– Improved punctuality of buses – this will again be a measurable benefit. It will be defined in terms of a Service Levelpromised to the residents of Brighttown. Improved punctuality might also help tempt a number of vehicle users to usepublic transport instead.
– Reduced emissions – buses are more energy efficient and emit less carbon dioxide than the conventional vehicles usedby most of the inhabitants of Brighttown. This benefit should again be measurable(but non-financial) and should benefitthe whole of the town, not just areas around traffic lights.
– Improved perception of the town – the incoming mayor believes that her policy will help attract green consumers andgreen companies to the town. Difficulties in classifying what is meant by these terms makes this likely to be anobservable benefit, where a group, such as the Go Green team, established by the council itself can decide (based ontheir judgement) whether the benefit has been realised or not.
The costs of implementing the project will also have to be re-assessed. These costs will now include:
–The cost of purchasing more buses to meet the increased demand and frequency of service.
–The operational costs of running more buses, including salary costs of more bus drivers.
–Costs associated with the disposal of car parks.
– Costs associated with slowing down drivers (both economic and emotional).
The technical implementation requirements of the project will also change and this is almost certain to have cost implicationsbecause a solution will have to be developed which allows buses to be prioritised. A feasibility study will have to becommissioned to examine whether such a solution is technically feasible and, if it is, the costs of the solution will have to beestimated and entered into the cost-benefit analysis.
【答案解析】
问答题
Stakeholder management is the prime responsibility of the project manager. Discuss the appropriate management of each of the following three stakeholders identified in the revised(modified) project.
(i)The new mayor;
(ii)OfRoad;
(iii)A private motorist in Brighttown who uses his vehicle to commute to his job in the town. (6 marks)
【正确答案】A stakeholder grid (Mendelow) provides a framework for understanding how project team members should communicate witheach stakeholder or stakeholder group. The grid itself has two axes. One axis is concerned with the power or influence of thestakeholder in this particular project. The other axis is concerned with the stakeholder’s interest in the project.
The incoming mayor:High power and high interest. The mayor is a key player in the project and should be carefully andactively managed throughout. The mayor is currently enthusiastic about the project and this enthusiasm has to be sustained.As the likely project sponsor, it will be the mayor’s responsibility to promote the project internally and to make resourcesavailable to it. It will also be up to her to ensure that the promised business benefits are actually delivered. However, she isalso the person who can cancel the project at any time.
OfRoad – a government agency:
OfRoad were critical of the previous mayor’s justification for the project. They felt that thebusiness case was solely based on intangible benefits and lacked credibility. It is likely that they will be more supportive of
the revised proposals for two reasons. Firstly, the proposal uses the classification of benefits which it has suggested. Secondly,the proposal includes tangible benefits which can confidently be included in a cost-benefit analysis. OfRoad is likely to havehigh power (because it can intervene in local transport decisions) but relatively low interest in this particular project as thetown appears to be following its guidelines. An appropriate management strategy would be to keep watch and monitor thesituation, making sure that nothing happens on the project which would cause the agency to take a sudden interest in it.
The private motorist of Brighttown:Most of these motorists will have a high interest in the project, because it impacts themdirectly; but, individually, they have very little power. Their chance to influence policy has just passed, and mayoral electionsare not due for another five years. The suggested stakeholder management approach here is to keep them informed. However,their response will have to be monitored. If they organise themselves and band together as a group, they might be able tostage disruptive actions which might raise their power and have an impact on the project. This makes the point thatstakeholder management is a continual process, as stakeholders may take up different positions in the grid as they organisethemselves or as the project progresses.