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1 PROJECT MANAGEMENT . Vol. 5, No. 1, 1999. International Project MANAGEMENT Journal ISSN 1455-4186. QUEST FOR TEAM COMPETENCE. SOFTWARE PROJECT MANAGEMENT . ORGANIZATIONAL CHANGE AS A PROJECT. FACTORS IMPEDING PROJECT MANAGEMENT LEARNING. Publisher: Project MANAGEMENT Association Finland Project MANAGEMENT International Board of Editor-in-Chief Advisors and Contributors Karlos , Helsinki University of Technology Professor Luis Alarcon, Universidad Catolica de Chile, Chile Editorial Coordinators Marko Korpi-Filppula, Iiro Salkari, Professor Karlos Artto, Helsinki University of Technolo- Helsinki University of Technology gy, Finland Professor David Ashley, University of California, USA. Project MANAGEMENT Association Finland Publications Board Professor John Bale, Leeds Metropolitan University, UK. Marko Arenius, Matti Haukka, Pia Arenius, Kalle Professor Juan Cano, University of Zaragoza, Spain K hk nen, Aki Latvanne, Rauno Puskala Professor Franco Caron, Politecnico di Milano, Italy Inquiries Professor Chris Chapman, University of Southampton, Address submissions and inquiries to: UK.

2 Karlos , Editor-in-Chief Doctor David Cleland, University of Pittsburgh, USA. Helsinki University of Technology Doctor Nashwan Dawood, University of Teesside, UK. 9500, 02015 HUT, Finland Telephone +358 9 451 4751, Facsimile +358 9 451 3665 Professor Mats Engwall, Royal Institute of Technology, E-mail Sweden More information about the journal can also be found Professor Pernille Eskerod, Southern Denmark Business from the Project MANAGEMENT Association Finland web School, Denmark site at: Professor Roger Flanagan, University of Reading, UK. Submissions Professor Carlos Formoso, Universidad Federal do Rio Manuscripts should be submitted to the Editor-in-Chief in Grande do Sul, Brazil electronic format by E-mail. Doctor J. Davidson Frame, University of MANAGEMENT &. Journal Policy Technology, USA. The Project MANAGEMENT (ISSN 1455-4186) is published Professor Roland Gareis, University of Economics and by the Project MANAGEMENT Association Finland (PMAF).

3 Business Administration, Austria The mission of Project MANAGEMENT (PM) is to promote Doctor Ari-Pekka Hameri, CERN, Switzerland theory and practice in the field of project MANAGEMENT and project-oriented business. It is the policy of PMAF to pub- Doctor Keith Hampson, Queensland University of lish one issue of PM yearly, which will be distributed free of Technology, Australia charge. The main distribution channels comprise circula- Doctor Francis Hartman, University of Calgary, Canada tion arranged by national project MANAGEMENT associations Otto Husby, Control Bridge AS, Norway to their members and distribution to the attendants of in- ternational events on project MANAGEMENT in cooperation Simon Indola, Nokia Telecommunications Ltd., Finland with the arranging organization. The circulation of the jour- Doctor Kalle K hk nen, VTT Building Technology, nal is 5 000 copies. The aim of PM is to reach extensively Finland interest of project MANAGEMENT experts and professionals worldwide in any sector both in academic world and indus- Professor Daniel Leroy, Universite des Sciences et try, and this way to extend communication between all dif- Technologies de Lille, France ferent sectors of industries including the public sector, uni- Marko Luhtala, Nokia Mobile Phones Ltd.

4 , Finland versities and research organizations. Professor Rolf Lundin, Ume Univesity, Sweden The PM seeks articles on any aspects of project manage- ment for publication. In addition to reviewed academic ar- Professor Jens Riis, Aalborg University, Denmark ticles, it welcomes papers of more practical nature. Authors Professor Asbjorn Rolstadas, Norwegian University of are encouraged to submit the following types of original Science and Technology, Norway manuscript: summaries of research results; surveys on cur- John Russell-Hodge, Synergy International Limited, New rent practices; critical analysis and developments of con- Zealand cepts, theories, practices, methodologies, application or pro- cedures; analyses of failure; and case studies. In the selec- Professor Rodney Turner, Erasmus University Rotterdam, tion of manuscripts primary importance will be based on the The Netherlands novelty value and the extend to which they advance the Veikko V lil , Industrial Insurance Co.

5 Ltd., Finland knowledge on project MANAGEMENT . Those wishing to sub- Doctor Stephen Ward, University of Southampton, UK. mit a paper or a case study should contact the editor-in- chief. Kim Wikstr m, bo Akademi, University, Finland 1999. Project MANAGEMENT Association Finland. All rights Doctor Terry Williams, Strathclyde Business School, UK. reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, record- ing or otherwise, without the prior written permission of the publisher. All articles in PM are the views of the authors and are not necessary those of PMAF. Table of Contents Industry Focused Editorial: MANAGEMENT Across the Organisation .. 4. Karlos A. Artto, Editor-in-Chief, Project MANAGEMENT , Finland Quest for Team Competence .. 10. Francis Hartman, University of Calgary, Canada Greg Skulmoski, University of Calgary, Canada Applied Project Risk MANAGEMENT - Introducing the Project Risk MANAGEMENT Loop of Control.

6 16. Martin Elkjaer, PricewaterhouseCoopers, Denmark Finn Felding, Denmark Major Risks in ERP Implementation .. 26. Jari V lim ki, Andersen Consulting, Finland IPMA Research: PM-Competence of the Project-oriented Society .. 28. Roland Gareis, University of Economics and Business Administration, Austria Martina Huemann, University of Economics and Business Administration, Austria Software Project MANAGEMENT - Software by Committee .. 30. Matt Weisfeld, preEmptive Solutions, USA. John Ciccozzi, United States Patent and Trademark Office, USA. Development of a Project Simulation Game .. 37. Juan L. Cano, University of Zaragoza, Spain Mar a J. S enz, University of Zaragoza, Spain Research The Assessment of Client Satisfaction in the Client-Project Manager Relationship: An Expectations - Artefact Model .. 42. Mike Browne, University of Ulster, Northern Ireland Sean O'Donnabhain, South Africa Organizational Change as a Project .. 50. Antti Salminen, Helsinki University of Technology, Finland Harri Lanning, Helsinki University of Technology, Finland Factors Impeding Project MANAGEMENT Learning.

7 56. David L. Hawk, New Jersey Institute of Technology, USA. Karlos Artto, Helsinki University of Technology, Finland A Model for Supplying with Constrained Resources in Project MANAGEMENT under Random Disturbances .. 68. Voropajev, Russian Project MANAGEMENT Association, Russia Ljubkin, Russian Project MANAGEMENT Association, Russia D. Golenko-Ginzburg, Ben-Gurion University of the Negev, Israel A. Gonik, Ben-Gurion University of the Negev, Israel A Multi-Criteria Framework for Competitive Bidding .. 74. E. Cagno, Department of Mechanical Engineering, Politecnico di Milano, Italy F. Caron, Department of Mechanical Engineering, Politecnico di Milano, Italy P. Trucco, Department of Mechanical Engineering, Politecnico di Milano, Italy A. Perego, Department of Mechanical Engineering, Universit degli Studi di Brescia, Italy Book Reviews Managing Change in the Workplace - a 12-step program for success .. 80. Ralph L. Kliem and Irwin S. Ludin Project MANAGEMENT : Planning and Control Techniques.

8 81. Rory Burke Project MANAGEMENT Association Finland Corporate Members .. 82. Board 1999 .. 83. EDITORIAL KARLOS A. ARTTO. MANAGEMENT Across the Organisation Karlos A. Artto, Editor-in-Chief, Project MANAGEMENT Keywords: Project MANAGEMENT , Project Business, Project Company, Project- oriented Company, Corporation MANAGEMENT , Organizational Model for Project MANAGEMENT A major new challenge in projectized industry will be how to organize project-oriented companies that apply projects as their major business vehicles. There is an increasing discussion of how projects relate to manage- ment of the company as a whole. The business aspect is emphasized. This editorial provides an organizational view on project MANAGEMENT that widely covers aspects of managing corporate business. The organizational model is a new construct that puts project MANAGEMENT in place and links it to related MANAGEMENT activities in different organizational levels. MANAGEMENT by Projects conference in Sydney, Australia, and sis of which issues project MANAGEMENT A major new challenge in projectized IPMA 2000 world congress in London, must concern in order to cover the busi- industry will be how to organize project- England.

9 The whole 'Managing Busi- ness in a project company, the paper oriented companies that apply projects ness by Projects' theme selected for constructs and introduces an organiza- as their major business vehicles (Artto Nordnet'99 conference relates to the tional model for project MANAGEMENT . et. al. 1998). While companies devel- organizational business context (Artto, The organizational model is a new con- op appropriate practices in project busi- K hk nen, Koskinen 1999). Similar struct with the purpose of positioning ness, other organizations in the pub- orientation is reflected by the IRNOP project MANAGEMENT and its links to re- lic sector develop either their project conference interest areas: Global lated MANAGEMENT activities in differ- level activities to boost their temporary project collaboration; projectized com- ent organizational levels. efforts, or whole organization level panies; projects and strategic alliances; Project business and MANAGEMENT ' MANAGEMENT by projects' related issues.

10 Multi-project contexts; and working life of project companies is a new area with ' MANAGEMENT by projects' as an organi- in a projectized society (IRNOP 2000). only limited amount of reported stud- zation's way to conduct its work and Further, the MANAGEMENT across the ies. The purpose of this editorial is to tasks in a project form is discussed in organization theme is also present in a introduce a new organizational model Turner (1993) and Gareis (1994, stream of the IPMA world congress held with appropriate company MANAGEMENT 1996). in the beginning of the new millenni- issues at different organizational levels. um (IPMA 2000). The organizational model constructed Managing Business by Projects enables understanding of different lev- There is an increasing discussion of how Introduction els and dimensions of project-oriented project MANAGEMENT relates to manage- The rationale for this editorial is to con- MANAGEMENT applications in corpora- ment of the company as a whole.