Redefining the Project Execution Strategy

Abstract

This chapter introduces a change from viewing a project as an isolated definitive execution process in the traditional world to viewing a project as a set of dynamic means to enhance project business value in the new rather turbulent world. In the new world, the project is tied to the middle of the three phases in which the business venture develops; exploring the value potential, creating business value and delivering business value. An array of value enhancing navigation strategies, ranging from defensive through adaptive to offensive are explored in some detail. The project is then viewed from a project owner perspective to accommodate for the various levels of contextual frames from which the project can be considered; (1) the business case perspective, (2) the corporate perspective and (3) the external environment perspective. The project is then viewed from a contractor perspective referring to corresponding levels of contextual frames. Finally, three complementary dimensions for how to measure added value are outlined: the production focus (value is added in the project execution process e.g. a reduction in CAPEX), the operation focus (value is added for the operation phase e.g. a reduction in life cycle costs) and the business focus (value is added directly to the project business objectives e.g. an option value (investments in safeguards), a risk reduction and an improved corporate reputation).