Project and Program Management: The Case of Holder Construction Group

Holder Construction Group, LLC is a company in the US construction sector. The company is committed to the planning and implementation of projects and programs that are mostly geared towards improving education (mostly higher education) as well as other aspects of human life including environmental sustainability to facilitate the attainment of global goals of greening of environment ( Rainey et al. 2015 ). Holder has accomplished a range of projects in the recent past and still plans to accomplish more of similar and other projects. Specifically, this analysis focuses on Holder’s “Confidential Project: Powered by Renewables.” This project involved installation of 10 MW of fuel cells together with 20 MW of solar array covering a total of 100 acres. The project further entailed implementation of a highly efficient 20 MW of solar array that operates on the same site, resulting in a more sustainable and comfortable working environment. This resulted in the offsetting of all the facility’s power by the renewable installation. The choice of this SME is both relevant and appropriate to the modern generation and on-going trends in climatic changes across the globe that requires climatic change ( Williams & Schaefer 2013 ). Holder Construction is also a company that is deemed the most applicable in dealing with various challenges to climatic and environmental sustainability since its focal areas not only entails construction in its purest form but also integrates aspects of technology and environmental consciousness. The company is a reputable commercial construction contractor providing construction services for commercial office buildings, corporate headquarters, higher education facilities, data and technology centers, luxury resorts and hotels, conference and convention spaces, sporting and recreational facilities, exhibit halls, municipal facilities, studios, museums and commercial interiors. The company is further diversified to offer construction services to the aviation sector. Many of the company’s construction services comprise the following activities: preconstruction services, building information modeling, construction, planning and design support, safety and risk management, sustainable services, electrical, mechanical, building systems and plumbing commissioning and support (Holder Construction 2017). 

Figure 1: Confidential Project: Powered by Renewables. Retrieved from Holder Construction (2017 ) 

Academic Literature Review

Project Management

Modern commercial and industrial projects are diverse in nature and scope and therefore require efficient planning, controlling and coordination to achieve goals and objectives of the complex projects (Kerzner & Kerzner 2017). Because of this requirement, project managers should project activities and ideas to develop new endevours. This way, the ultimate purpose of project management which entails foreseeing and predicting dangers and future problems as well as planning controlling and organizing activities can easily be achieved (Visser, van der Merwe & Gerber 2016). Achieving this goal effectively ensures that the project is carried on from the beginning to conclusion in a successful manner in spite of all the actual and possible risks involved. Because risks are ever-present and inevitable in the context of project implementation (Kerzner & Kerzner 2017), project management can only be considered a way of minimizing rather than doing away with the risks. Therefore, project management is never an accurate process. In fact, possibilities of successful project completion of project are subject to serious doubts (Webb 2017). Generally, the steps involved in project management are project initiation, planning, execution, regulation and project closure. These steps are best achieved when there is successful guidance of the project implementation team and alignment of their operations towards successful attainment of the agreed upon goals and objectives within the required scope, quality, time and budget standards. 

Strategic Management

Strategic management involves the process of formulating and implementing major goals, objectives and initiatives pursued by the top management of a company on behalf of its owners based on the assessment of both internal and external business environment as well as consideration of resources to achieve the projected outcomes (Hill, Jones & Schilling 2014). The key tenet of strategic management is that mangers align all their planning and other processes to the nature of competition or competitiveness of the company in the industry. As opposed to project management that is concerned with the failure or success of the project that is usually unique (Kerzner & Kerzner 2017), strategic management is concerned with what the rivals, new entrants, customers, suppliers and other pertinent players in the industry are doing and how this may ultimately impact on the business (Dälken 2014). However, the role of external environmental factors in the business/organizational environment such as political forces, economic trends, socio-cultural dynamics, technological developments, environmental impact and legal procedures are important aspects of consideration for both project management and strategic management. 

Operations Management

Operations management in the context of Holder Construction Group is the process of planning, coordinating, organizing and controlling resources for the ultimate production and availability of goods and services ( Bromiley & Rau 2016 ) Operations managers focuses all their duties and responsibilities in ensuring that they create the highest possible levels of efficiency so that the production of goods and services also becomes efficient. Major activities involved in operations management revolve around conversion of labor and materials into products and services in the most efficient way possible to achieve profit maximization ( Harper 2015) . Although the functions of operations management coincide with the functions of strategic management in the aspect of achieving efficiency and competitive edge, the difference is that whereas strategic management involves controlling of forces that affect profitability, operations management involves control of actual resources and processes that impact on profitability and competitiveness of an organization. 

Comparison of Project Management, Strategic Management and Operations Management
Similarities
All are geared towards organizational success and attainment of goals of predetermined goals and objectives  All are functions of SME management team  All are processes and involve planning, coordinating, organizing and controlling of resources  Objectives are measured in terms of time, budget standards and quality.
Differences
Project Management	Strategic Management	Operations Management
Main goal is to minimize risks and improve certainty	Main goal is to achieve competitive edge and maximize profitability	Main goal is to increase production and efficient utilization of resources
Concerned with project failure or success and the project is unique	Concerned with organizational reputation and products and services are often similar across companies	Concerned with creative and innovative utilization of resources that are similar in the industry
Seeks to satisfy needs and returns to the SME are less important compared to project benefits	Seeks to increase profits and returns which are more important compared to the needs in the society	Seeks to satisfy organizational needs as determined by consumer needs. However, consumer needs are secondary while organizational needs are primary
Completed after assessment and evaluation	Continuous	Continuous

Project Planning, Metrics and Tools

Project Plan

Major elements of an effective project plan include stakeholder identification, project objectives, clear deliverables and deadlines, roles and responsibilities of the stakeholders, costs involved in the project implementation and communication plan ( Heagney 2016) . These elements are represented in the table below in the context of Confidential Project: Powered by Renewables by Holder Construction Group. 

Stakeholders	Objectives	Deliverables and Deadlines	Roles and Responsibilities of stakeholders	Costs	Communication plan	Assessment and evaluation mechanisms
Holder Construction Group  Community members  Local Government	To achieve energy efficient needs in the community by establishing efficient fuel cells  To achieve a more sustainable and comfortable working environment	Installation of 10 M of fuel cells in 4 months  Installation of 20 MW of solar array across 100 acres within 6 months  Establishment of an efficient data center in 12 months	Holder Construction Group is in charge of overseeing implementation of the project through planning and execution of deliverables  The community will contribute in the provision of resources both financial and human  Local government will provide an enabling environment for project implementation.	Financial resources  Human resources such as expertise, skills and labor  Physical resources  Time  Machines, material and equipment.	Meetings, workshop, seminars, social media, mass media, email and telephone	Formative and summative assessment and evaluation.

Project Life Cycle

Project life cycle entails five major stages namely, project initiation, project planning, project execution, monitoring and control, and project closure ( Larson & Gray 2015) . 

Stage 1: Project Initiation

Project initiation stage entails coming up with the project idea followed by consideration of the project efficiency and effectiveness ( Westland 2006 ). Projection is done during this stage based on the possible circumstances that are likely to confront the project in the process of its implementation. 

Stage 2: Project Planning

Planning is an important chapter since it determines when and how the project will be accomplished, alongside the outcomes expected by the end of the project ( Burke 2013) . It is at this stage that the project manager stipulates resources that will be relevant in the successful accomplishment of the project. It is also during this stage that various stakeholders are assigned their respective roles and responsibilities. 

Stage 3: project Execution

Project execution is the process involving dissemination of the planned activities of the project ( Conforto & Amaral 2016) . Execution is usually done in relation to the available resources, time allocated as well as the projected project objectives and goals. 

Stage 4: Project Monitoring and control

Monitoring provides the project implementers and managers with vital information on the progress of the ongoing or finished project. The process of monitoring entails gathering relevant information for the purposes of informed decision-making. 

Stage 5: Closing of the project

Project closure is the final stage in the project management process. It involves summation of all the project aspects including the scope and budget ( Kerzner 2018) . During this stage, all the stakeholders submit the reports of their respective roles and responsibilities in order to measure the extent of project success. Summation of their achievements is usually done in reference to all the project goals and objectives, conformity to the project budget as well as the aspects of the projected timeliness ( Van Der Merwe 1997) . 

Project Management Process 

Stage 2: Planning 

Stage 3: Execution 

Stage 4: Monitoring and Control 

Stage 1: Initiation 

Stage 5: Closing 

Figure 2: Project Management Process 

Work Breakdown Structure 

Level 1	Level 2	Level 3
Confidential Project: Powered by Renewables	1.1 Initiation	1.1.1 Development of project charter  1.1.2 Submission of project charter  1.1.3 Review by donors and stakeholders  1.1.4 Signing and approval of project charter
	1.2 Planning	1.2.1 Preliminary scope statement  1.2.2 Determining project team  1.2.3 Development and submission of project plan  1.2.4 Approval of the project plan
	1.3 Execution	1.3.1 Kick-off meeting of the project  1.3.2 Verification and validation of requirements  1.3.3 Installation of 10 MW of fuel cells  1.3.4 Installation of 20 MW of solar array  1.3.5 Implementation of data center
	1.4 Control	1.4.1 Project management  1.4.2 Meetings to evaluate project progress  1.4.3 Application of risk management strategy  1.4.4 Updating of the project management plan
	1.5 Closure	1.5.1 Auditing the procurement  1.5.2 Updating of records and files  1.5.3 Documentation of findings  1.5.4 Writing and submission of recommendations

Project Estimation Technique: Bottom-up method

Bottom up method entails the use of a detailed work breakdown structure (Crump 2015). It is the most suitable for Confidential Project: Powered by Renewables given the complexity of the project and the level of commitment required. Further according to Crump, estimation of tasks is done individually after which the project manager rolls up these estimates to come up with higher-level numbers. For instance, installation of 10 MW of fuel cells is done separate from installation of 20 MW of solar array and other tasks and the process of rolling up gives rise to better and more accurate results. However, it requires a substantial investment of time ( Nasir 2006). 

Project Leadership

Success of project implementation does not merely end with project closure but successful integration of the project to fit into the context of an organization and to benefit the company ( Todorović et al. 2015). This depends on the nature and efficiency of project leader which is closely influenced by the pertinent attributes and characteristics of the project manager. Therefore, for the project to be completed effectively and be integrated ideally in the normal organizational culture, the project manager should posses the following attributes: 

Flexibility - The project manager should be flexible enough to modify and adjust both the project aspects and aspects of organizational culture to accommodate each other. For instance, Confidential Project: Powered by Renewables can best be integrated into the organizational culture of Holder Construction Group by increasing the scope of the company to include environmental responsibility rather than just restricting the scope to the construction work alone. 

Innovation and Creativity- This would help the company to benefit financially in an array of ways rather than what has been projected in the project objectives and goals. The project manager needs to come up with more creative and innovative ways of ensuring that the project benefits the company in as many ways and as optimally as possible. 

Time consciousness- Success of the project and its value is measured, to a considerable extent, by how effective it is to achieve goals and objectives within the stipulated timelines. For the project manager, exceeding the required deadline for individual deliverables and for the entire project makes the project to lose its taste of purpose. Once this happens, even the process of integration becomes difficult, now that Holder Construction Group is in the construction industry which is rated among the most competitive industries in the US. 

Project Risks and Failure

Risk Analysis Framework

This project entails a number of complex activities geared towards improving the wellness of employees’ working environment alongside the need to achieve environmental sustainability. Therefore, the most applicable risk analysis framework for this project is US National Institute of Standards and Technology (NIST) SP 800-30 (NCSC, 2016). This is because the framework is compatible with the US government agencies and provides for the risk assessment at all the stages. Additionally, it is concise, clear, comprehensive and most importantly, US-focused. Using this framework therefore makes it easier to integrate the project into the scope of Holder Construction Group, a purely US-based enterprise that has been in existence since 1960. 

Common causes of project failure

There are many reasons that can lead to project failure depending on the context of the project and its implementation. However, for the project implemented in the context of Holder Construction Group a reputable medium enterprise, possible reasons for project failure may differ significantly from possible reasons that may lead to project failure in the context of smaller enterprises or enterprises other countries. Some of the most probable reasons that might have caused the failure of Confidential Project: Powered by Renewables include but not limited to the following factors: 

Management inefficiency: Project management in the context of Holder Construction Group requires complex planning and systematic prioritization of functions and activities, all of which depends on the managerial efficiency. However, lack of management efficiency and commitment to product success may adversely affect the process of implementation leading to project failure. 

Legal Factors - Legal factors affect the extent to which a company can undertake certain activities and not others ( Crane & Matten 2016) . Extensionally, Holder Construction Group is a reputable LLC which is required to strictly conform to legal requirements and establish a good relationship with the government at all levels in order to succeed in its endeavors. Failure to conform to the government regulations would automatically constraint its projects, resulting in project failure. 

Impact of project failure on stakeholders

Stakeholders would be affected in different ways in the case of project failure. First, project failure would mean failure by some if not all the stakeholders to play their respective roles competently. Such stakeholders would risk being demoted or even losing their jobs, especially those who work within the company. For the external stakeholders such as the government and the community, they would experience the losses for failing to experience the desired outcomes of the project. Lastly, there would be mistrust among external stakeholders towards the project and this would adversely affect the future projects of the implementing company. 

Critical Success Factors

Project success is measured in many aspects including successful achievement of all the goals and objectives of the project, project completion within the required timeline and consideration of the side effects of the project such as environmental impact and impact on the wellbeing of the surrounding community (corporate social responsibility) among other critical success factors. 

Project goals and objectives- These are the ultimate intentions of the project. Goals are broader in scope while objectives are measurable and specific hence narrower in scope. In the Confidential Project: Powered by Renewables implemented by Holder Construction Group, the goal of the project was to achieve energy efficiency while improving working environment. However, specific goals of the project include establishment of an efficient 10 MW of fuel cells, 20 MW solar array across 100 acres, and improvement of working environment. It is only through successful achievement of these goal and objectives that the project can be said to have been completed successfully. This is the primary success factor in project management ( de Carvalho, Patah & de Souza Bido 2015 ) 

Time bound - Timely implementation of the project portrays high levels of commitment from the management and other stakeholders to their respective duties and responsibilities ( Bucero & Englund 2015 ). If the project is delayed, even though objectives may be met, its outcomes cannot serve the intended purpose as effectively as they could in the case of timely achievement. Therefore, a project that is accomplished within the required time is considered more successful than a project accomplished late or too early. 

Conclusion

This project management review has examined various pertinent areas by first distinguishing and drawing the relationship among project management, strategic management and operations management. There are differences and similarities which should be considered by managers given that project implementation is the task of managers who are also in charge of both strategic and operations management. In the management of projects, the process of planning involves identifying stakeholders, setting objectives, outlining deliverables and deadlines, assigning roles and responsibilities to various stakeholders, costing and budgeting, developing an efficient communication plan, and coming up with assessment and evaluation mechanisms. The five stages of project life cycle include project initiation, project planning, project execution, monitoring and control, and project closure. The work breakdown structure that follows show how these objectives will be achieved by specifying activities involved in every stage. To estimate the extent to which the project objectives are being achieved, the most preferred project estimation technique is bottom to up. Project leadership has also been identified as a crucial element of project success and project leaders are required to be flexible, innovative and creative, and time conscious for them to drive the project from the initial stage of initiation to the final stage of conclusion. They need to be adept with factors such as management challenges and legal factors so as to adverse effect of project failure such as mistrust from other stakeholders. Generally, critical success factors to project implementation entail project goals and objectives, leadership, time bound and side effects of the project among other factors. 

List of References

Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another view. Journal of Operations Management , 41 , pp.95-106. 

Bucero, A. and Englund, R.L., 2015, October. Project sponsorship: Achieving management commitment for project success. Project Management Institute. 

Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA . 

Conforto, E.C. and Amaral, D.C., 2016. Agile project management and stage-gate model—A hybrid framework for technology-based companies. Journal of Engineering and Technology Management , 40 , pp.1-14. 

Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization . Oxford University Press. 

Crump, K., 2015. 5 Methods of Project Estimation. Liquid Planner. Retrieved July 31, 2018 from https://www.liquidplanner.com/blog/5-methods-of-project-estimation/ 

Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical examination concerning the relevance for today’s business (Bachelor's thesis, University of Twente). 

de Carvalho, M.M., Patah, L.A. and de Souza Bido, D., 2015. Project management and its effects on project success: Cross-country and cross-industry comparisons. International Journal of Project Management , 33 (7), pp.1509-1522. 

Harper, C., 2015. Organizations: Structures, processes and outcomes . Routledge. 

Heagney, J., 2016. Fundamentals of project management . Amacom. 

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach . Cengage Learning. 

Holder Construction. 2017. Profile. Craft. Retrieved July 31, 2018 from https://craft.co/holder-construction?utm_expid=.wALo1MT0TEST7sFAcDzzgg.0&utm_referrer=https%3A%2F%2Fwww.google.com%2F 

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling . John Wiley & Sons. 

Kerzner, H., 2018. Project management best practices: Achieving global excellence . John Wiley & Sons. 

Larson, E.W. and Gray, C.F., 2015. A Guide to the Project Management Body of Knowledge: PMBOK (®) Guide. Project Management Institute. 

Nasir, M., 2006, June. A survey of software estimation techniques and project planning practices. In Software Engineering, Artificial Intelligence, Networking, and Parallel/Distributed Computing, 2006. SNPD 2006. Seventh ACIS International Conference on (pp. 305-310). IEEE. 

NCSC, 2016. Summary of risk methods and frameworks. National Cyber Security Center. Retrieved July 31, 2018 from https://www.ncsc.gov.uk/guidance/summary-risk-methods-and-frameworks 

Rainey, H.J., Pollard, E.H., Dutson, G., Ekstrom, J.M., Livingstone, S.R., Temple, H.J. and Pilgrim, J.D., 2015. A review of corporate goals of No Net Loss and Net Positive Impact on biodiversity. Oryx , 49 (2), pp.232-238. 

Todorović, M.L., Petrović, D.Č., Mihić, M.M., Obradović, V.L. and Bushuyev, S.D., 2015. Project success analysis framework: A knowledge-based approach in project management. International Journal of Project Management , 33 (4), pp.772-783. 

Van Der Merwe, A.P., 1997. Multi-project management—organizational structure and control. International Journal of Project Management , 15 (4), pp.223-233. 

Visser, D., van der Merwe, A. and Gerber, A., 2016, May. A comparison of project management in system and research projects. In IST-Africa Week Conference, 2016 (pp. 1-10). IEEE. 

Webb, A., 2017. The project manager's guide to handling risk . Routledge. 

Westland, J., 2006. The project management life cycle. ISBN , 749445556 , pp.5-37. 

Williams, S. and Schaefer, A., 2013. Small and medium ‐ sized enterprises and sustainability: Managers' values and engagement with environmental and climate change issues. Business Strategy and the Environment , 22 (3), pp.173-186.