Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2018 Project Manager Strategies to Improve the Delivery of Construction Projects Luis Gaspar Crespo Walden University Follow this and additional works at: https://scholarworks.edu/dissertations Part of the Business Administration, Management, and Operations Commons, and the Management Sciences and Quantitative Methods Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact ScholarWorks@waldenu. Walden University College of Management and Technology This is to certify that the doctoral study by Luis Gaspar Crespo Vallejo has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made.
Review Committee Dr. Mary Weber, Committee Chairperson, Doctor of Business Administration Faculty Dr. Dorothy Hanson, Committee Member, Doctor of Business Administration Faculty Dr. Judith Blando, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.
Walden University 2018 Abstract Project Manager Strategies to Improve the Delivery of Construction Projects by Luis Gaspar Crespo Vallejo MS, Universidad Latinoamericana de Ciencia y Tecnología, 2006 BS, Universidad Santa María La Antigua, 1994 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2018 Abstract The return on investment of construction organizations is at risk because construction managers fail to execute projects efficiently. The purpose of this single case study was to explore strategies that construction managers used to deliver projects efficiently. The selected population was 10 construction managers from a single construction organization operating in Panama. The conceptual framework for this study was the McKinsey 7S.
Data were collected using semistructured interviews, observations, and a review of public documents. Collected data were compiled, disassembled, reassembled, interpreted, and then conclusions were reached, as noted in Yin’s 5-step analysis. Themes that emerged from the study included project experience, communication, collaboration, and resource management. Construction managers noted that the review of needed project experience in alignment with the complexity of the project is a strategy to deliver projects efficiently.
Leaders of construction organizations can increase strategic performance by implementing collaboration and leadership programs in accordance with the business objectives. By improving labor productivity, construction companies can complete construction projects faster and with lower construction costs. The findings of this study could contribute to positive social change by providing communication and collaboration strategies between construction organizations and local communities to source local staff and resources. Construction managers might benefit from the findings of this study by increasing their project management skills, an effect that could result in long-term employability.
Project Manager Strategies to Improve the Delivery of Construction Projects by Luis Gaspar Crespo Vallejo MS, Universidad Latinoamericana de Ciencia y Tecnología, 2006 BS, Universidad Santa María La Antigua, 1994 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2018 Dedication In loving memory of my father Luis Alberto Crespo, who provided me with the guidance to be a father and a professional engineer. I dedicate this study to my mother Dr. She gave me the support and taught me to achieve my goals through higher education and love. To my wife Karen Lee, for inspiring me through all the endless reviews and by giving me all her love during this important step in my life.
To my children Lyan Grace, Gerard, and Daniela, for their sacrifice and inspiration through all the challenges of this journey. I also want to dedicate this study to my sister Kathia Crespo, and my nephew David Abrego, who were always there for me. I dedicate this study to my friend Matt Harbison, who gave me the opportunity to be in this program and believed in changing people’s lives through higher education. Acknowledgments I would like to thank my Chair, Dr.
Mary Weber, for sharing her knowledge, wisdom, patience, and friendship through all the challenges of this journey. I wish to thank Dr. D’Marie Hanson, for serving as my second committee member and to inspire me to reach an academic level of excellence. I also want to thank Dr.
Judith Blando, for serving as the university research reviewer (URR) and for sharing her knowledge during the URR reviews. I would like to thank all the faculty members at Walden University for providing the best student experience possible during this journey. I would like to acknowledge and extend my gratitude to my colleagues at Laureate International Universities Pat Richards, Dr. Stanley Muschett, Juan Jose Hurtado, and Apollon Fanzeres.
I am fortunate to have your support and encouragement to finish this important step. I would like to thank the study participants for sharing your knowledge with me. Table of Contents List of Tables. iv List of Figures .v Section 1: Foundation of the Study.1 Background of the Problem .4 Nature of the Study .7 Assumptions, Limitations, and Delimitations.
9 Significance of the Study .9 Contribution to Business Practice. 9 Implications for Social Change. 10 A Review of the Professional and Academic Literature .10 Overview of the Construction Industry in Panama. 12 The McKinsey 7S Framework.
13 i The Hard Elements of the McKinsey 7S Framework. 15 The Soft Elements of the McKinsey 7S framework. 24 Opposing and Expanding Theories of the McKinsey 7S Framework. 37 Project Management Strategies.
43 Communication Strategies in Project Management. 45 Leadership Strategies in Project Management. 47 Innovation Strategies for Project Management. 49 Construction Management Strategies.
50 Summary and Transition .52 Section 2: The Project .54 Role of the Researcher .57 Research Method and Design. 60 Population and Sampling .65 Data Collection Instruments .67 Data Collection Technique .70 Data Organization Technique .75 ii Reliability and Validity. 81 Summary and Transition .83 Section 3: Application to Professional Practice and Implications for Change .85 Presentation of the Findings.86 Theme 1: Project Experience. 96 Theme 4: Resource Management.
99 Applications to Professional Practice .102 Implications for Social Change .104 Recommendations for Action .105 Recommendations for Further Research .109 Appendix A: Interview Protocol .136 iii List of Tables Table 1. Literature Review Source Content. Summary of Business Excellence Models. Major Themes and Subthemes Frequency.
Coding and Experience Data of Construction Managers. Coding and Description of Documents Reviewed. 88 iv List of Figures Figure 1. The McKinsey 7S conceptual framework .14 v 1 Section 1: Foundation of the Study The construction industry is an important economic force in countries worldwide (Sfakianaki, 2015), particularly for developing countries (Zhu & Mostafavi, 2014).
Potential economic drivers for the construction industry in developing countries include employment generation in local and remote locations, opportunities to more effectively manage resources, importation of raw materials, and incorporation of new technologies (Sfakianaki, 2015). To remain competitive, construction managers must constantly review and revise efficient project management strategies (Parker, Parsons, & Isharyanto, 2015). Construction managers are not using efficient project management strategies, and as a result, they are failing to increase profitability and on-time project delivery (Akiner, 2014; Pekuri, Pekuri, & Haapasalo, 2015). In a developing economy such as Panama, the potential for repercussions of failed construction projects are significant.
In Panama, the local construction industry´s activity in commercial development has increased due to the $5.3 billion investment from government and private capital from 2011 to 2016 (Kavarnou & Nanda, 2015). The construction industry requires construction managers that use project management methodologies and strategies to remain competitive and to support the growing economy in developing countries. Background of the Problem Project management activities such as budget control, quality assurance, scheduling, and resource management are fundamental considerations for construction managers in meeting customer requirements (Kissi, Ahadzie, & Cobbinah, 2015). 2 Construction managers use project management methodologies and standards—such as effective timeline management, bidding techniques, human resources, and inspections— to improve the on-time completion rate of successful projects (Kissi et al.
Construction managers select project management strategies to increase business advantages and adapt to new challenges (Eskerod & Huemann, 2013). Planning efficient project management strategies should include integration of resource management, on- time delivery, and financial targets aligned with the scope of the project (Akiner, 2014). Construction managers rely on a variety of financial and resource management strategies to improve the success rate of projects (Pekuri et al. Construction managers experience difficulty when adopting and executing strategies to ensure an on time, profitable, and successful delivery of selected projects (Akiner, 2014; Terrell & Rosenbusch, 2013).
Construction managers need to consider a series of factors including long-term financial development indicators, sustainability plans, and new market segments (Wong, Kumaraswamy, Mahesh, & Ling, 2014). Heravi and Ilbeigi (2012) posited that construction industry leaders must constantly evaluate strategies that construction managers use to deliver projects. With a population of more than 1.6 million inhabitants, Panama is one of the largest economies in Central America and the economy has been facing a fast-developing upward trend in construction over the last 10 years (Kavarnou & Nanda, 2015). The expansion of the Panama Canal, new metro lines, commercial development, and government housing solutions are the main drivers of the construction industry in Panama 3 (Sohn, 2016).
There is a need to explore project management strategies used by construction managers in Panama to deliver on time, profitable projects. According to Teh and Corbitt (2015), business leaders are implementing the McKinsey 7S framework to improve project management strategies. The purpose of this framework is to provide an efficient analysis of the organization through the interconnection of and alignment with these elements: structure, systems, strategies, skills, styles, staff, and superordinate goals (Singh, 2013). Although organizations can measure project changes with the McKinsey 7S framework, information is limited to the identification of specific strategies required for efficient delivery of projects (Teh & Corbitt, 2015).
Further exploration of strategies to deliver projects efficiently in the construction industry is the purpose of this research. Problem Statement The future of the return on investment (ROI) of construction organizations is at risk if construction managers fail to execute projects efficiently (Oyewobi, Windapo, & Rotimi, 2015). Construction managers are spending 70% of their time on remedial project activities, and construction organizations report that their project profitability has decreased by $1. The general business problem is the inefficient delivery of projects, which puts organization profitability and ROI at risk.
The specific business problem is that some construction managers lack strategies to deliver projects efficiently. 4 Purpose Statement The purpose of this qualitative single case study was to explore strategies construction managers use to deliver projects efficiently. The specific population was 10 experienced construction managers from a single company in Panama who had successfully implemented strategies to deliver projects. Data collection consisted of interviews and a review of archived construction project management documents, such as project charters, project plans, organizational strategies, and other records.
The implications of positive social change included the potential to improve construction managers’ strategies to deliver projects efficiently, which in turn, could increase managers’ job security and benefits to local communities. Nature of the Study I selected the qualitative research method to explore the strategies that construction managers use to deliver projects efficiently. Karim Jallow, Demian, Baldwin, and Anumba (2014) argued that the use of the qualitative methodology is appropriate to understand the strategies to deliver projects efficiently. Researchers use the qualitative method to better understand the how and why of the characteristics of a phenomenon through the analysis of open-ended questions, observations, coding, and methodological triangulation (Fusch, Fusch, & Ness, 2018; Karim Jallow et al.
In contrast, researchers use the quantitative method to validate relationships among variables by testing hypotheses (Heravi & Ilbeigi, 2012). The quantitative method was not appropriate because I did not test relationships among variables.