Aim:
The overall aim of this module is:
To promote an understanding of key commercial management underpinning projects environment and to understand how commercial integrity will ensure the likelihood of project and project management success
Learning Outcomes:
On completion of the module learners are expected to (be able to):
1. Critically analyse the key commercial issues involved in the management of projects.
2. Critically appraise the business environment, finance, procurement integrity, contract management, disputes and legal frameworks within the project environment.
3. Establish the Project's Supply Chain and evaluate the commercial integrity.
Instructions:
This is an integrated coursework assessing financial, procurement, purchasing, supply chain management and legal issues of capacity development of renowned A2Z Project Management Training Company (A2ZPMTC) Plc (Private Limited Company). Capacity development under consideration is expansion (to new untested training markets/frontiers), franchising, joint venture with other leading Project Management training providers, re-branding, innovative delivery methods including content development, distance offering, innovative boot camps, hosting mock assessment centres for global companies and brand owners, merger or acquisition with smaller and medium size Project Management training providers, local content partnership, partnership with local government initiatives on developing Project Management and Commercial Management Academy for industry practitioners and apprentices, etc., You could choose any one of these initiatives for capacity development of A2ZPMTC
A2ZPMTC is one of leading and specialist provider in Project Management and Commercial Management trainings. A2ZPMTC has won several industry accolades including from Project Management Institutions such as APM (Association of Project Management) and PMI (Project Management Institution). A2ZPMTC also offer specialist and bespoke training for its client. A2ZPMTC also provide trainings in leading industry's Project Management and Commercial Management professional qualifications. A2ZPMTC offering are in various modes such as workshops facilitated in-house, client's site, distance learning packages and modules, weekly blocks, weekend blocks, simulation, self-study packages, residential and evenings (part time). A2ZPMTC has in its possession strong and effective IT/IS support, world class training facilities, competent trainers and facilitators, content development specialists and other capital assets. However for this new initiative, A2ZPMTC need to think about acquiring more resources and new capital assets. This is to ensure and support A2ZPMTC's drive for business changes and effective segmentation in this capacity development.
A2ZPMTC's offering are for various range of clients and industries predominantly Oil and Gas, Construction, Energy, Renewable Energy, Human Resource, Banking and Financial Institutions, Engineering, Public Sectors, NGOs (Non -Governmental Organisations including INGOs (International Non-Governmental Organisations)), Charity Sector, Manufacturing, Production and etc., You would need to assume that A2ZPMTC is aspiring to be a specialist training provider on Project Management and Commercial Management in Projects environment. You need to critically evaluate within project management boundary the commercial integrity and commercial fitness of this initiative. There are three sections for this coursework, Finance, Procurement/Contract/Supply Chain and Legal administration. You would need to critically appraising the commercial integrity of this new initiative. All three sections MUST be covered by the students. This coursework is to be done INDIVIDUALLY.
You can make all necessary and realistic assumptions and MUST include all of these following caveats below:
Note: Project here refers to any of the initiatives proposed above within the capacity development.
Ø How much funds you would want to ask A2ZPMTC's Steering Group for this new Initiative/project (capacity development).
Ø Required capital assets and resources - e.g., Capital Expenditures, Operational Expenditures and other Financial Expenditures
Ø Types of Industry and Customers you want to consolidate and position in this new market
Ø Identify this project's stakeholders (all project partners). You need to briefly establish the role and responsibilities of each of these stakeholders, communication plan and their contribution (effort) to this project. You need to produce a stakeholder's analysis grid, communication plan and responsibility assignment matrix.
Ø Construct this project's life cycle diagram and identify specific phase, activities, stages, deliverables, issues and challenges at each of this project phases (you can either produce high-level or detailed level project life cycle diagram for this mega-project). You can map/chart the issues and challenges, scenarios and exposures after scanning the project's internal and external environment.
Ø Have adequate market research is undertaken to ascertain the viability of this project in short term, medium term and long term? You may want to carry out a project business environment appraisal. There are many tools, techniques and framework available to appraise the feasibility of a project, e.g., SWOT, PEST, PESTEL, STEEPL, 5-PORTER Boston Matrix (BCG Matrix) and McKinsey 7-S Model. All these tools serve as a guideline to decompose (break-up) your appraisal. Select any tools that you are comfortable with and appraise this project. You can use either any one of the above tool or more than one tool. You need to appraise the internal and external environment for this project. You need to carry out a detailed project environment scanning to ascertain the feasibility of this project. The motivation for this appraisal to determine key determinants of this project's success. You have to be very careful NOT to list critical success factors (CSFs) and critical failure factors (CFFs) - these are entirely different.
Ø You would need to appraise the proposed procurement route, purchasing mechanisms, supply chain management and contract management strategy, contract management and administration issues in this capacity development. You need to criticise and evaluate this project's procurement and contracting strategy. You must also consider where possible Supply Contracts, Sub-contracts and Service Level Agreements. You must critically evaluate the contract arrangement/structure by including a supply chain map, contract strategy, pricing strategy for this project and how the contract should be managed for this project. How do you ensure a high performing contract for this project?
Ø You would need to appraise the potential legal issues in this project. You can identify and critically assess potential legal issues at each phase of this project, e.g., dispute resolution strategy between the project's stakeholders/partners, contractual term/conditions ambiguities and clarification including service level agreement (SLA), non-compliance/non-conformance to the project's commercial and technical specifications and this project's risk and contingencies allowances. You may want to identify potential risk events and critically map and appraise against the dispute resolution approaches. You may have to prepare a risk register for any potential conflict and dispute, use probability/impact grid and identify appropriate dispute resolution method. You MUST remember it should NOT be a mere discussion or reporting of legal/litigation techniques, legal instruments, contract law, dispute resolution and alternative dispute resolution tools and techniques in this project. You need to ensure that critical assessment of these legal issues must be identified for this project.
Ø You MUST discuss and critically relate to the profit, value, benefit, achievability (success rate) for this project. Plus any other realistic assumptions to ensure a successful capacity development. You MUST consider financial scenarios, procurement scenarios, purchasing scenarios, identify the Supply Chain for this proposed initiative including stakeholders in this new market and legal instruments. You would also need to consider how Project and Commercial Professionals would study and learn, cultural underpinning and any other commercial constraints for this proposed capacity development of A2ZPMTC.
Your Task: To Prepare a Report considering the financial and economic scenarios, contractual, legal obligations and exposures of this capacity development (Project) and advise the A2ZPMTC's steering committee of this Project's viability (feasibility). The A2ZPMTC's steering committee wants to know potential financial, procurement, contractual, supply chain management and legal scenarios and exposures including any commercial oversights. You would need to convince the A2ZPMTC's steering committee of this Project's viability financially, contractually and legally. You would need to assume that your career progression and future with A2ZPMTC is dependent upon this Project's successful expansion bringing in the required profit, benefit and value. You can assume yourself as the Capability Lead (your role) when reporting back to the A2ZPMTC's steering committee. The membership of this A2ZPMTC's steering committee is composed from senior and executive management. The remit of A2ZPMTC's is either to finally approve or reject the proposal.
Reminder:
Report must cover all three elements of this project's commercial fitness (financial, procurement/contract/supply chain & legal context).
You MUST complete this coursework in order to pass the module successfully
Very Important:
In three sections the argument, logical reasoning and critical evaluation of the above project that you had identified must be made in Commercial Context for Capacity development (project). By only discussing commercial tools and techniques, definitions will not attract any high marks - please avoid this. Development and application is the key for any critical analysis and the academic underpinning.
Word Count: 4,000 words
Tolerance: +/-10%