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No.2   I ntro / 01   C o m p a n y N e w s / 02   I n d u s t r y N e w s / 03   A r t i c l e s / 04   E v e n t s / 06
2012




                                                                       Working with Kaibo
                    We endeavour to work with all stages of the construction
              project providing world class management, consulting services,
                                                      and project management.
              We also provide training sessions to help your company achieve
                          the best results in dealing with Chinese enterprises.
                                  Address: B1502, Vantone Center, Chaoyang District, Beijing (100020)
               Telephone:(+86)10-59073235 Email: info@kaibogroup.com Web: www.kaibogroup.com
NEWSLETTER
           0 5 / 0 3 / 2 0 12         N o . 02
                                                 INTRO    Company News   Industry News   Articles   Events




2012 has started in great style for Kaibo Group with the annual
awards night held on the 12th of January in Beijing

2012 has started in great style for Kaibo Group with the annual awards night held on the 12th
of January in Beijing. During the course of the event we had video feeds from our projects in
Sudan, Nigeria, and Mongolia.
Kaibo Group would like to congratulate all the award winners for their hard efforts during
2011 and we all look forward to sharing their success with you this year.
As we are all well into 2012 the year shapes to be a year full of events and major news that
will hit the construction industry. Looking into the European crisis and how it affects the
overall global construction industry and the steadying of the Chinese economy and how this
will play out through the year.




                                                     01
NEWSLETTER
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                                                                                      Intro         COMPANY NEWS             Industry News          Articles             Events


                                                                                                   $1.53 billion dollars.
Mongolia Project
                                                                                                   4. Current status:
1. Project background:                                                                             Currently the project design works team and Kaibo are working together on the
In the past five years, Mongolia has undergone rapid urbanization development. A                   completion of the master plan and scheme design. Work will commence shortly on
large number of the population migrate to Ulaanbaatar, causing the living area per                 the construction design work. In addition after the employer modified some of the
capita to be less than 7 square meters. To satisfy the growing needs Mongolia have                 scope of the contract terms Kaibo is assisting during this phase to the employer.
implemented a modern city plan for Ulaanbaatar to build 100,000 new homes.
This development will provide a higher quality standard of living for residents and
bring new facilities to the residential area. Yarmag has been created on the
outskirts of the Mongolian capital.
                                                                                                   Progress of Sudan Project
2. Project target and significance:                                                                The Sudan team have been involved in control network survey, including leveling,
The Mongolian government planning of the new city is located in Ulaanbaatar                        has been done, and data is being processed, the topographical survey will be
Yarmag Khan-Uul district, covering 970.0 hectares in the Khan-Uul area. The                        carried out in no time. The laboratory report for geo investigations on link canal
target for Yarmag is planning to build 36000 sets of residential and supporting                    has been submitted; and lab tests of samples from offshore drilling is being
public facilities, for local residents to create a comfortable living and working                  executed in accordance with the program issued by the Engineer. Construction of
environment.                                                                                       the contractor’s main camp is well under way.

3. Project implementation plan:                                                                    A two-round negotiation has been held with the Employer in January, and the
This project implementation plan is project of 15000 sets and supporting facilities                re-priced BOQ and related suggestions to the original contract and specifications
including highways, commercial facilities, schools, hospitals, water supply, power                 have been submitted and are under evaluation by the employer and engineers. The
supply and supporting infrastructure. A new professional training center and a                     design of conceptual design for pump stations, shop drawings for canal works and
National Science Research Center (medical) will also be built in Yarmag                            relevant structures are in preparation. Tendering for DIU’s Township will start
composing of 250 hectares of land. The estimated costs for this stage project are                  upon the approval of the drawings.


                                                      Mongolia Project Site                             Sudan Project Site




                                                                                              02
NEWSLETTER
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                                                                                      Intro          Company News         INDUSTRY NEWS              Articles              Events




Chinese Construction News:                                                                         World Construction News:
31st of Jan: China Guangdong Nuclear Power Corporation (CGNPC) CGNPC, is                           20th Feb: The European Bank for Reconstruction and Development (EBRD) has
bidding alongside the China-Africa Development Fund in its effort to boost access                  granted a loan of €28.5 ($37.48 million) for the construction of roads in
to uranium supplies, wants to buy Kalahari for its 42.7 percent interest in Extract                Bosnia-Herzegovina. The loan amount will be used to finance the construction of
Resources, which owns the giant Husab uranium project in Namibia.                                  a new, two-lane bypass around the centre of Brcko town, in the north-eastern
                                                                                                   part of the country. The total length of the new bypass will be 19km.
15th of Feb: GCL-Poly Energy Holdings of China will start 1 gigawatt of solar
power projects in the U.S. funded by Bank of America Merrill Lynch or BofA                         20th Feb: New York state transportation officials and industry participants are
Merrill.                                                                                           scrambling to meet Gov. Andrew Cuomo's push to have work under way later
                                                                                                   this year on the $5-billion-plus replacement of the aging Tappan Zee Bridge.
Jan 15th: Mazaya Qatar Real Estate Development Company said on Saturday it                         Four design-build teams shortlisted on Feb. 7 have yet to see a final request for
has awarded a $130m construction contract to China's Sinohydro. The agreement                      proposals but have only until about mid-June to submit their detailed design and
will see the Chinese company construct the Sidra Village project and deliver it in                 building plans, says a state transportation agency spokesman.
20 months. Sidra Village consists of 1,165 residential units, including 658 one
bedroom apartments and 507 two bedroom apartments, Mazaya Qatar said in a                          3rd Feb: The $200million USD Ngong Wind Power Plant has been given the
statement.                                                                                         green light to go ahead by project owner General Electric. This project will start
                                                                                                   in Q1 of 2012 with an estimated time of completion by Q4 of 2012.
Feb 16th: China Railway Construction Corp. furthered its strategic expansion into
Africa by winning new contracts totaling 9.1 billion Yuan. In an exchange filing                   17th Feb: US-based real estate Company Related California has broken ground
on February 15, China Railway Construction said the contracts, secured by its                      on The Village at Santa Monica, a $350 million mixed-use scheme in the US
subsidiary, China Civil Engineering Construction Corp., include the construction                   state of California.
of expressways in Nigeria and a railway project connecting Djibouti and Ethiopia.
                                                                                                   The Village at Santa Monica will be developed at Ocean Avenue in close
6th Feb: China pledged to invest over USD 161bn in metro projects for 28 cities.                   proximity to Santa Monica beach. The scheme involves construction of 318
As of November, some 12 cities in the country had metro networks. The plan                         luxury condominiums and affordable rental apartments, 20,000 square feet of
announced by the China's Communications and Transport Association last month                       retail and restaurants, and walkable plazas and gardens.
would see a total network 250 times the length of the London Underground Circle
Line. Over 90 new lines were approved.                                                             20th Feb: The Peruvian government has announced that a concession will be
                                                                                                   awarded to construct $2 billion Lima Metro's second line. The new metro line
                                                                                                   will link the Callao to the west of Lima with Ate Vitarte to the east. The contract
                                                                                                   will include expanding the network by more than 30km.



                                                                                              03
NEWSLETTER
                        0 5 / 0 3 / 2 0 12         N o . 02
                                                                                        Intro          Company News          Industry News           ARTICLES               Events



                                                                                                     from the construction industry, as well as related sectors such as producers of raw
Construction poses biggest credit risk worldwide                                                     materials and machinery manufacturers. These players are reaching out to other
                                                                                                     emerging regions in Africa and the Middle East, which may spur growth in those
Worldwide, the construction sector is becoming like a canary in the mines, an
                                                                                                     areas.
indicator of each country’s economy, according to a report by global credit risk
agency Coface.                                                                                       ( Article written by Adeline Theo – www.projectmanager.com.au )
“The construction sector was badly hit by the 2009 crisis, and a large number of
payment incidents were still occurring in 2011,” according to Coface’s analysis.
“The intensity of activity in the construction sector varies according to the impact                 Project management education in a lean environment
of the crisis on the economy of the concerned country and according to sensitivity
to economic conditions that varies from one subsector to another.”                                   Organisations are becoming leaner—reducing waste, trimming budgets and
Coface’s Global Construction: Substantial Geographic Differences, High                               heightening efficiencies—in a bid to cope with global economic stress. Global
Sensitivity to Economic conditions, Permanent Credit Risk report shows that                          training organisation ESI International set out to discover how public and private
activity is strong in emerging markets, particularly subsectors such as public                       leaders were adapting their human capital initiatives to this lean environment via
works and private and institutional non-residential construction. Conversely,                        a survey. Below is an overview of the results.
activity in developed markets is either moderate or stagnant, with particularly                      Lean workforce: According to respondents, the recession has forever changed the
large disparities in the residential construction sector.                                            makeup of their employee base. Commercial and government organisations now
Unfortunately the uneven fortunes of the industry poses a credit risk, particularly                  operate with a lean workforce, where employees, regardless of level, must have
in stagnant economies in parts of Europe, where activity will depend on                              the capability to lead and execute work across cross-functional teams.
forthcoming austerity plans. Defaults and payment incidents have risen in Ireland,                   New approaches to learning: Best-in-class organisations expect to continue their
Iceland, Spain, Denmark, the Netherlands, Greece and Central Europe and high                         investments in innovative, multi-modal learning, but will also devote further
prices have started to affect the more robust economies of the UK, France,                           resources towards the development of leadership skills and business capabilities
Belgium and Italy. Other countries, such as Germany, Austria, Norway, Sweden,                        within communities of technical professionals.
Finland and Poland, however, remain somewhat untouched.                                              Further, survey respondents reported that targeted and highly-relevant learning
Conversely, construction in the Asia-Pacific zone is “relatively buoyant”,                           programs are essential to support the achievement of organisational priorities,
particularly in Australia, Japan and New Zealand where reconstruction efforts,                       maximise resources and enhance workforce effectiveness.
following respective natural disasters in 2011, are taking place.                                    Measurable impact: To invest in their people, companies are focusing their
The building boom continues in China, however, even after the government                             training dollars on programs that produce measurable results and lead to
restricted bank loans for the property market to avoid inflation. “The drop in sales,                demonstrated business improvement.
price adjustments and increased stock levels are expected to slightly slow the                       The ability to transfer learning in the classroom to changed performance in the
activity in the private residential segment, but this will be partly offset by the                   workplace is essential in the achievement of enhanced productivity. Organisations
launch of a new public social housing construction program,” according to                            must develop a supportive and complementary on-the-job environment, where
Coface.                                                                                              management, business processes and supporting tools all permit the learner to
The effect of the China boom has seen a number of world-class players emerge                         apply new knowledge and skills immediately upon return to work.


                                                                                                04
NEWSLETTER
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                                                                                     Intro          Company News          Industry News           ARTICLES                Events




                                                                                                  program management and project management governance with project
PMOs in Asia: The New Frontier                                                                    governance and process left until last. This approach has left many organizations
                                                                                                  with an obvious gap in capability at the delivery level, with limited processes and
Project management is moving through Asia with the speed and tenacity of a
                                                                                                  support available at the coalface of projects. The solution? Buy in expertise.
raging bushfire. I have recently been working my way through Singapore, Hong
Kong and Mainland China talking with organizations from several different                         Asia has historically used expatriate labor, bringing in expertise that did not
industries about their PMOs and their attitudes towards project management in                     already exist. They are doing so with project management by bringing in star
general. The vibe as I moved through Asia was electrifying. There is an                           performers who can carry a project at the delivery level on the back of their own
excitement about this ‘new way of working’ that is inspiring even to the most                     expertise. This solution is not sustainable long term, however it is buying them
embattled veterans of the well established projects as a way of doing business set                enough time to develop their own capability, which can then be institutionalized
of the West.                                                                                      to allow for homegrown project managers to be developed and supported.
Project management emerged in the West through traditional industries such as                     One of the key benefits of the top-down approach is that project management
engineering and construction, defense and aerospace, before being taken up by the                 emerges within an organization with an intrinsic link to the top-level management
non-traditional industries such as IT, banking and finance, telecommunications                    and is positioned as a means of delivering on corporate strategy. This sense of
and pharmaceuticals. This historical progression followed a slow path of                          value has many Asian organizations in an enviable position where management
development from the project level processes of planning and estimating,                          ‘gets it’ and they will hopefully avoid the all too familiar rollercoaster ride that
followed by control processes and on to risk management.                                          PMOs in the West experience when project management comes in and out of
                                                                                                  favor with the latest wave of restructuring.
Now as we feel confident that we understand the basics, even if we don’t always
implement them to perfection, we’ve turned our attention to developing the                        The role of the PMO at the enterprise level must include demonstrating the value
concepts of program and portfolio management. The realization that project                        of not only the PMO but project management more broadly to the organization.
management is the enabling capability for organizations to execute on strategy has                In this area, Asia will
led us to develop methods and tools for devolving corporate strategies into                       lead the way!
program and projects, as well as balancing the portfolio to meet the demands of a                 ( Article Written by:
rapidly changing economic, social and political landscape. As a capstone to this                  Alicia Aitken “Alicia
thinking and development, we have created the concept of the PMO, be that                         Aitken is CEO at
project, program, project management or portfolio management office.                              Human Systems
In contrast, many Asian PMOs have taken an almost opposite approach to                            International and
developing organizational project management capability by establishing an                        managing director at
integrated network of PMOs united at the corporate level by a single enterprise                   Project Performance
PMO. This corporate level PMO manages a network of smaller PMOs                                   Group” )
predominantly established at the country level rather than being organized by
function or project.
In the main, Asian PMOs have opted for a top-down approach and have developed
their portfolio management capability first, followed by an understanding of


                                                                                             05
NEWSLETTER
                        0 5 / 0 3 / 2 0 12         N o . 02
                                                                                      Intro          Company News           Industry News           ARTICLES               EVENTS




Time: the bright side of the iron triangle                                                         distort concepts of time to suit your other resources, but time itself will march on.
                                                                                                   This means what the iron triangle really measures is not time, cost and quality but
                                There’s a lot to be said of timing it right. In fields             the ability of your project schedule, budget and scope to meet the expectations you
                                like comedy, music and sport, timing is of the                     set at the start.
                                essence and can be the difference between a                        An interesting take on this is Pat Weaver’s recent article, the truth about Gantt
                                well-told joke and a flop.                                         charts. Think you know what a Gantt chart is? Think again. Henry Gantt was a
                                Time is one side of the so-called project                          smart guy, but he didn’t invent the bar chart that bears his name. He did, however,
                                management ‘iron triangle’ by which the success of                 work out a way to track progress and therefore give a better understanding of how
                                a project is superficially measured. Cost and                      long things took to get done. Which is good information if you want to look into
                                quality complete the trio. It’s interesting to see time            estimation and productivity?
                                elevated to the same level as the other constraints                So don’t look at time as something you can control; it’s only your own timing you
                                when it is the most predictable but the least                      have the power to alter.
                                manageable of the three.
Most predictable? Well, time as a human construct has 60 seconds in a minute, 60
minutes in an hour, 24 hours in a day for the length of the project until such time
as you’ve forgotten what day it is—or how old your kids are. And try as you                               Events
might, no matter how organized or how productive you are, a day will always have
24 hours in it, which makes it the least manageable of the three constraints.
                                                                                                          April 11th – U.S.A, New York, ENR Global Construction Summit
Culturally too, you will see that there is a broad scale of attitudes towards the
importance of managing time that centres on adherence to schedules and                                    April 24-25 – Macau, China, 3rd International Infrastructure
deadlines.                                                                                                Investment & Construction Forum
In Managing Across Cultures*, a book I highly recommend if you work with
international stakeholders, the authors put Germans on one end as they are                                May 7-9 – France, Marseille, PMI Global Congress Europe
generally strict about punctuality and have a preference for projects to run like
clockwork. On the other end are Thais, who view time as an element that cannot                            May 21-23 – Hong Kong, China, Brazil Invest 2012
be controlled and therefore treat schedules as a guide that serves people rather than
the other way around.                                                                                     July 15th – Pakistan Karachi, PMI Project Management Symposium
At the risk of fence-sitting, I don’t think either attitude is completely right or
completely wrong. Deadlines serve a purpose and if we were lax with them we’d                             October 20-23 – Canada, Vancouver, PMI Global Congress North
have no Olympic Games, New Year’s fireworks or events of any kind. But the                                America
Thai view that schedules serve people is also a key one; good project management
is more than the iron triangle.                                                                           October 29-31 – Greece, Crete, 26th IPMA World Congress
The most inclusive view is to treat project schedules as living documents. You can


                                                                                              06
Address: B1502, Vantone Center,
Chaoyang District, Beijing (100020)
Telephone:(+86)10-59073235
Email: info@kaibogroup.com
Web: www.kaibogroup.com

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Kaibo Engineering March 2012 e-newsletter

  • 1. No.2 I ntro / 01 C o m p a n y N e w s / 02 I n d u s t r y N e w s / 03 A r t i c l e s / 04 E v e n t s / 06 2012 Working with Kaibo We endeavour to work with all stages of the construction project providing world class management, consulting services, and project management. We also provide training sessions to help your company achieve the best results in dealing with Chinese enterprises. Address: B1502, Vantone Center, Chaoyang District, Beijing (100020) Telephone:(+86)10-59073235 Email: info@kaibogroup.com Web: www.kaibogroup.com
  • 2. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 INTRO Company News Industry News Articles Events 2012 has started in great style for Kaibo Group with the annual awards night held on the 12th of January in Beijing 2012 has started in great style for Kaibo Group with the annual awards night held on the 12th of January in Beijing. During the course of the event we had video feeds from our projects in Sudan, Nigeria, and Mongolia. Kaibo Group would like to congratulate all the award winners for their hard efforts during 2011 and we all look forward to sharing their success with you this year. As we are all well into 2012 the year shapes to be a year full of events and major news that will hit the construction industry. Looking into the European crisis and how it affects the overall global construction industry and the steadying of the Chinese economy and how this will play out through the year. 01
  • 3. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro COMPANY NEWS Industry News Articles Events $1.53 billion dollars. Mongolia Project 4. Current status: 1. Project background: Currently the project design works team and Kaibo are working together on the In the past five years, Mongolia has undergone rapid urbanization development. A completion of the master plan and scheme design. Work will commence shortly on large number of the population migrate to Ulaanbaatar, causing the living area per the construction design work. In addition after the employer modified some of the capita to be less than 7 square meters. To satisfy the growing needs Mongolia have scope of the contract terms Kaibo is assisting during this phase to the employer. implemented a modern city plan for Ulaanbaatar to build 100,000 new homes. This development will provide a higher quality standard of living for residents and bring new facilities to the residential area. Yarmag has been created on the outskirts of the Mongolian capital. Progress of Sudan Project 2. Project target and significance: The Sudan team have been involved in control network survey, including leveling, The Mongolian government planning of the new city is located in Ulaanbaatar has been done, and data is being processed, the topographical survey will be Yarmag Khan-Uul district, covering 970.0 hectares in the Khan-Uul area. The carried out in no time. The laboratory report for geo investigations on link canal target for Yarmag is planning to build 36000 sets of residential and supporting has been submitted; and lab tests of samples from offshore drilling is being public facilities, for local residents to create a comfortable living and working executed in accordance with the program issued by the Engineer. Construction of environment. the contractor’s main camp is well under way. 3. Project implementation plan: A two-round negotiation has been held with the Employer in January, and the This project implementation plan is project of 15000 sets and supporting facilities re-priced BOQ and related suggestions to the original contract and specifications including highways, commercial facilities, schools, hospitals, water supply, power have been submitted and are under evaluation by the employer and engineers. The supply and supporting infrastructure. A new professional training center and a design of conceptual design for pump stations, shop drawings for canal works and National Science Research Center (medical) will also be built in Yarmag relevant structures are in preparation. Tendering for DIU’s Township will start composing of 250 hectares of land. The estimated costs for this stage project are upon the approval of the drawings. Mongolia Project Site Sudan Project Site 02
  • 4. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News INDUSTRY NEWS Articles Events Chinese Construction News: World Construction News: 31st of Jan: China Guangdong Nuclear Power Corporation (CGNPC) CGNPC, is 20th Feb: The European Bank for Reconstruction and Development (EBRD) has bidding alongside the China-Africa Development Fund in its effort to boost access granted a loan of €28.5 ($37.48 million) for the construction of roads in to uranium supplies, wants to buy Kalahari for its 42.7 percent interest in Extract Bosnia-Herzegovina. The loan amount will be used to finance the construction of Resources, which owns the giant Husab uranium project in Namibia. a new, two-lane bypass around the centre of Brcko town, in the north-eastern part of the country. The total length of the new bypass will be 19km. 15th of Feb: GCL-Poly Energy Holdings of China will start 1 gigawatt of solar power projects in the U.S. funded by Bank of America Merrill Lynch or BofA 20th Feb: New York state transportation officials and industry participants are Merrill. scrambling to meet Gov. Andrew Cuomo's push to have work under way later this year on the $5-billion-plus replacement of the aging Tappan Zee Bridge. Jan 15th: Mazaya Qatar Real Estate Development Company said on Saturday it Four design-build teams shortlisted on Feb. 7 have yet to see a final request for has awarded a $130m construction contract to China's Sinohydro. The agreement proposals but have only until about mid-June to submit their detailed design and will see the Chinese company construct the Sidra Village project and deliver it in building plans, says a state transportation agency spokesman. 20 months. Sidra Village consists of 1,165 residential units, including 658 one bedroom apartments and 507 two bedroom apartments, Mazaya Qatar said in a 3rd Feb: The $200million USD Ngong Wind Power Plant has been given the statement. green light to go ahead by project owner General Electric. This project will start in Q1 of 2012 with an estimated time of completion by Q4 of 2012. Feb 16th: China Railway Construction Corp. furthered its strategic expansion into Africa by winning new contracts totaling 9.1 billion Yuan. In an exchange filing 17th Feb: US-based real estate Company Related California has broken ground on February 15, China Railway Construction said the contracts, secured by its on The Village at Santa Monica, a $350 million mixed-use scheme in the US subsidiary, China Civil Engineering Construction Corp., include the construction state of California. of expressways in Nigeria and a railway project connecting Djibouti and Ethiopia. The Village at Santa Monica will be developed at Ocean Avenue in close 6th Feb: China pledged to invest over USD 161bn in metro projects for 28 cities. proximity to Santa Monica beach. The scheme involves construction of 318 As of November, some 12 cities in the country had metro networks. The plan luxury condominiums and affordable rental apartments, 20,000 square feet of announced by the China's Communications and Transport Association last month retail and restaurants, and walkable plazas and gardens. would see a total network 250 times the length of the London Underground Circle Line. Over 90 new lines were approved. 20th Feb: The Peruvian government has announced that a concession will be awarded to construct $2 billion Lima Metro's second line. The new metro line will link the Callao to the west of Lima with Ate Vitarte to the east. The contract will include expanding the network by more than 30km. 03
  • 5. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News Industry News ARTICLES Events from the construction industry, as well as related sectors such as producers of raw Construction poses biggest credit risk worldwide materials and machinery manufacturers. These players are reaching out to other emerging regions in Africa and the Middle East, which may spur growth in those Worldwide, the construction sector is becoming like a canary in the mines, an areas. indicator of each country’s economy, according to a report by global credit risk agency Coface. ( Article written by Adeline Theo – www.projectmanager.com.au ) “The construction sector was badly hit by the 2009 crisis, and a large number of payment incidents were still occurring in 2011,” according to Coface’s analysis. “The intensity of activity in the construction sector varies according to the impact Project management education in a lean environment of the crisis on the economy of the concerned country and according to sensitivity to economic conditions that varies from one subsector to another.” Organisations are becoming leaner—reducing waste, trimming budgets and Coface’s Global Construction: Substantial Geographic Differences, High heightening efficiencies—in a bid to cope with global economic stress. Global Sensitivity to Economic conditions, Permanent Credit Risk report shows that training organisation ESI International set out to discover how public and private activity is strong in emerging markets, particularly subsectors such as public leaders were adapting their human capital initiatives to this lean environment via works and private and institutional non-residential construction. Conversely, a survey. Below is an overview of the results. activity in developed markets is either moderate or stagnant, with particularly Lean workforce: According to respondents, the recession has forever changed the large disparities in the residential construction sector. makeup of their employee base. Commercial and government organisations now Unfortunately the uneven fortunes of the industry poses a credit risk, particularly operate with a lean workforce, where employees, regardless of level, must have in stagnant economies in parts of Europe, where activity will depend on the capability to lead and execute work across cross-functional teams. forthcoming austerity plans. Defaults and payment incidents have risen in Ireland, New approaches to learning: Best-in-class organisations expect to continue their Iceland, Spain, Denmark, the Netherlands, Greece and Central Europe and high investments in innovative, multi-modal learning, but will also devote further prices have started to affect the more robust economies of the UK, France, resources towards the development of leadership skills and business capabilities Belgium and Italy. Other countries, such as Germany, Austria, Norway, Sweden, within communities of technical professionals. Finland and Poland, however, remain somewhat untouched. Further, survey respondents reported that targeted and highly-relevant learning Conversely, construction in the Asia-Pacific zone is “relatively buoyant”, programs are essential to support the achievement of organisational priorities, particularly in Australia, Japan and New Zealand where reconstruction efforts, maximise resources and enhance workforce effectiveness. following respective natural disasters in 2011, are taking place. Measurable impact: To invest in their people, companies are focusing their The building boom continues in China, however, even after the government training dollars on programs that produce measurable results and lead to restricted bank loans for the property market to avoid inflation. “The drop in sales, demonstrated business improvement. price adjustments and increased stock levels are expected to slightly slow the The ability to transfer learning in the classroom to changed performance in the activity in the private residential segment, but this will be partly offset by the workplace is essential in the achievement of enhanced productivity. Organisations launch of a new public social housing construction program,” according to must develop a supportive and complementary on-the-job environment, where Coface. management, business processes and supporting tools all permit the learner to The effect of the China boom has seen a number of world-class players emerge apply new knowledge and skills immediately upon return to work. 04
  • 6. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News Industry News ARTICLES Events program management and project management governance with project PMOs in Asia: The New Frontier governance and process left until last. This approach has left many organizations with an obvious gap in capability at the delivery level, with limited processes and Project management is moving through Asia with the speed and tenacity of a support available at the coalface of projects. The solution? Buy in expertise. raging bushfire. I have recently been working my way through Singapore, Hong Kong and Mainland China talking with organizations from several different Asia has historically used expatriate labor, bringing in expertise that did not industries about their PMOs and their attitudes towards project management in already exist. They are doing so with project management by bringing in star general. The vibe as I moved through Asia was electrifying. There is an performers who can carry a project at the delivery level on the back of their own excitement about this ‘new way of working’ that is inspiring even to the most expertise. This solution is not sustainable long term, however it is buying them embattled veterans of the well established projects as a way of doing business set enough time to develop their own capability, which can then be institutionalized of the West. to allow for homegrown project managers to be developed and supported. Project management emerged in the West through traditional industries such as One of the key benefits of the top-down approach is that project management engineering and construction, defense and aerospace, before being taken up by the emerges within an organization with an intrinsic link to the top-level management non-traditional industries such as IT, banking and finance, telecommunications and is positioned as a means of delivering on corporate strategy. This sense of and pharmaceuticals. This historical progression followed a slow path of value has many Asian organizations in an enviable position where management development from the project level processes of planning and estimating, ‘gets it’ and they will hopefully avoid the all too familiar rollercoaster ride that followed by control processes and on to risk management. PMOs in the West experience when project management comes in and out of favor with the latest wave of restructuring. Now as we feel confident that we understand the basics, even if we don’t always implement them to perfection, we’ve turned our attention to developing the The role of the PMO at the enterprise level must include demonstrating the value concepts of program and portfolio management. The realization that project of not only the PMO but project management more broadly to the organization. management is the enabling capability for organizations to execute on strategy has In this area, Asia will led us to develop methods and tools for devolving corporate strategies into lead the way! program and projects, as well as balancing the portfolio to meet the demands of a ( Article Written by: rapidly changing economic, social and political landscape. As a capstone to this Alicia Aitken “Alicia thinking and development, we have created the concept of the PMO, be that Aitken is CEO at project, program, project management or portfolio management office. Human Systems In contrast, many Asian PMOs have taken an almost opposite approach to International and developing organizational project management capability by establishing an managing director at integrated network of PMOs united at the corporate level by a single enterprise Project Performance PMO. This corporate level PMO manages a network of smaller PMOs Group” ) predominantly established at the country level rather than being organized by function or project. In the main, Asian PMOs have opted for a top-down approach and have developed their portfolio management capability first, followed by an understanding of 05
  • 7. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News Industry News ARTICLES EVENTS Time: the bright side of the iron triangle distort concepts of time to suit your other resources, but time itself will march on. This means what the iron triangle really measures is not time, cost and quality but There’s a lot to be said of timing it right. In fields the ability of your project schedule, budget and scope to meet the expectations you like comedy, music and sport, timing is of the set at the start. essence and can be the difference between a An interesting take on this is Pat Weaver’s recent article, the truth about Gantt well-told joke and a flop. charts. Think you know what a Gantt chart is? Think again. Henry Gantt was a Time is one side of the so-called project smart guy, but he didn’t invent the bar chart that bears his name. He did, however, management ‘iron triangle’ by which the success of work out a way to track progress and therefore give a better understanding of how a project is superficially measured. Cost and long things took to get done. Which is good information if you want to look into quality complete the trio. It’s interesting to see time estimation and productivity? elevated to the same level as the other constraints So don’t look at time as something you can control; it’s only your own timing you when it is the most predictable but the least have the power to alter. manageable of the three. Most predictable? Well, time as a human construct has 60 seconds in a minute, 60 minutes in an hour, 24 hours in a day for the length of the project until such time as you’ve forgotten what day it is—or how old your kids are. And try as you Events might, no matter how organized or how productive you are, a day will always have 24 hours in it, which makes it the least manageable of the three constraints. April 11th – U.S.A, New York, ENR Global Construction Summit Culturally too, you will see that there is a broad scale of attitudes towards the importance of managing time that centres on adherence to schedules and April 24-25 – Macau, China, 3rd International Infrastructure deadlines. Investment & Construction Forum In Managing Across Cultures*, a book I highly recommend if you work with international stakeholders, the authors put Germans on one end as they are May 7-9 – France, Marseille, PMI Global Congress Europe generally strict about punctuality and have a preference for projects to run like clockwork. On the other end are Thais, who view time as an element that cannot May 21-23 – Hong Kong, China, Brazil Invest 2012 be controlled and therefore treat schedules as a guide that serves people rather than the other way around. July 15th – Pakistan Karachi, PMI Project Management Symposium At the risk of fence-sitting, I don’t think either attitude is completely right or completely wrong. Deadlines serve a purpose and if we were lax with them we’d October 20-23 – Canada, Vancouver, PMI Global Congress North have no Olympic Games, New Year’s fireworks or events of any kind. But the America Thai view that schedules serve people is also a key one; good project management is more than the iron triangle. October 29-31 – Greece, Crete, 26th IPMA World Congress The most inclusive view is to treat project schedules as living documents. You can 06
  • 8. Address: B1502, Vantone Center, Chaoyang District, Beijing (100020) Telephone:(+86)10-59073235 Email: info@kaibogroup.com Web: www.kaibogroup.com