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Ingredients and Soup

Lecture for Students DCM TuDelft October 2016

Ronald van Warmerdam

on 20 October 2016

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Transcript of Ingredients and Soup

We discussed the ingredients....
Now the Soup
Which topics are you going to address?
Most important ones?
What kind of organization do you suggest and why? Is it possible to know that up front?
Are you going to say something about the budget or do you have a process proposal?
How are you goining to deal with the question of employment?
How do you bring realism in your proposals?
With regard to quality, time and money.
How are you going to deal with
quality and quality control?
What is your proposal on procurement of agents and constructors?

Complex projects
- Not simply definable upfront.
- Are unique. No repetition…
- Peoples business: We have to learn to work together
- Don’t fit in a certain category
- Have an emotional value
- Many people involved &
- Not everyone agrees on outcome, solutions, ways etc…
- Stretches out over a long period in which value(s) change(s)
- Systemic Management tools only don’t work


Budget and control

Project management here represents the complete set of decisions regarding the set-up, organization and management of a project, taken during the various phases of the project, aimed at coordinating the efforts of the various actors involved in order to successfully realize the project (see also Kjær, 2004; Drucker, 2007).
Management is about playing with the ingredients

Designing a strategy

How do you play with control and flexibility
"Management is about playing with all ingredients"

Start cooking!
Winch states that the project manager’s role is to facilitate alignments between the various actors involved in the project: the client, stakeholders, designers, contractors, actors in the supply chain, and operators. ( Winch 2002)
How could we define complexity?
What kind of team has the best chance to win?
Predict and Control perspective
Detailed specs upfront

Command and Control
Front - end approach
Phase change is formally done
Tendency to simplify

Prepare and Commit Perspective
Functionally specified

Cooperation and trust
Open information loops
knowledge management
Interface management
Agile phase changes

On his first workday it became clear that BAM had to write off 87 million euro’s on two projects; highway A15 and the replacement of the Botlek Bridge.

"This is what I changed. Big and complex projects seem to be nice but they always come with a lot of risks".

"There is too much optimism in this company. There are only a few people able to handle this kind of challenging and complex projects".
But no one (in the municipality nor the agents) rings the alarm bell, when it turned out that the financial contingencies were down to 4% of the total budget. The Alderman of finance, Stadig, did not care. He knew the 4% was not sufficient. But raising the budget for contingencies was, at that moment political not opportunistic. "So be it", Stadig must have thought!
The culture within the project organization is reason for investigation.

During an interview, Jaap Geluk, the CEO of subway, seems not to be aware that the project is imbedded in an urban context with citizens, inhabitants and companies.

The CEO doesn’t understand what is happening. “My organization works with the very best intentions on the project. He claims that the city and its inhabitants react emotional. In cities like Rotterdam or The Haque people would applaud for the project but in Amsterdam it’s the opposite".
Over budget, over time
1. Organize dissenters
"the force against".

Dissenters are people who have the courage to disturb and challenge prevailing views, habits and rules.
De Dreu (Professor at the University of Amsterdam) states that we need dissent and rebellion, because society comes to a standstill without dissent. (Mercer, 2010, p 17.).

"Cross Thinking" also prevents groupthink and tunnel vision, it helps opening up the discussion on complex issues and it is valuable for renewal, change and innovation. As Psychologist Nemeth says: "If you want to innovate in your business, then cultivating a healthy dose of dissent is exactly what you need" (Mercer, 2010, p 14.)

To win the tender the contractors did to low an offer. Besides of that they took all risks concerning permits on their account.
The newspapers
3. Organisational Change

The new director took a position and
changed the nature of the project:
From one sided to pluralistic
Guiding questions
Uncertainly and complexity
How to deal with it?
(Koppejan et al 2014)
(Flyvbjerg 2012)
Complexity: or the condition where the information is, in principle, available, but it is too costly or time cosuming to collect and analyse

What kind of expertise is needed?
Do you take that into account?
Solutions ?

Business case
Why do you think projects fail?
Part of MOTIQ...
Projects "fail" but still...
Bernardo Rossellino.
Cathedral and papal palace at Pienza
"You did well Bernardo, in lying to us about the expense involved in the work"

Pope Pius II to Bernardo Rossellino on a 500% overrun on his cathedral and papal palace at Pienza.

Winch p.217
Climate, Adaptation, Mitigation, Energy, Water, Social Sustainability, Smart City Development, Livability, Equity, Circular Economy, Sutainable finance, Sustainable Assets, Reuse, BREEAM, LEED, sharing economy etc.
When to incorporate it?
What is the project?
Is it already a project?
Can you define a strategy?
How are you going to deal with sustainability?
Believe in yourself. Stay up all night. Work outside of your habits. Know when to speak up. Collaborate. Don’t procrastinate. Get over yourself. Form follows function. A computer is a Lite-Brite for bad ideas. Find inspiration everywhere. Network! Educate your client. Trust your gut. Ask for help. Question everything. Have a concept. Learn to take some criticism. Make me care. Use spell check. Do your research. Sketch more ideas. The problem contains the solution. Think about all possibilities.
2.public hearings
Reference class
Believe in your fucking self. Stay up all fucking night. Work outside of your fucking habits. Know when to fucking speak up. Fucking collaborate. Don’t fucking procrastinate. Get over your fucking self. Form follows fucking function. A computer is a Lite-Brite for bad fucking ideas. Find fucking inspiration everywhere. Fucking network! Educate your fuckig client. Trust your fucking gut. Ask for fucking help. Question fucking everything. Have a fucking concept. Learn to take some fucking criticism. Make me fucking care. Use fucking spell check. Do your fucking research. Sketch more fucking ideas. The problem contains the fucking solution. Think about all fucking possibilities.

One more thing!
(winch 2010)
Full transcript