Minimize Project Risk and Costs: A New Approach to Project Management

Abstract

Traditional project management (PM) results have been poor. The practices of direction and control have been identified by deductive logic as problematic. Deductive logic identifies that, if a manager directs and controls, their risk goes up and performance will go down. A new approach to PM is the replacement of technical expertise with the identification and utilization of expertise. New components of this approach are the minimization of the need to think and make decisions, the use of the language of metrics, a new definition of risk, and the use of preplanning that includes the utilization of expertise and focusing on the mitigation of risk that the expert does not control. This approach has been tested by the International Council for Research and Innovation in Building and Construction Working Commission (CIB W117, formerly known as the Performance Based Studies Research Group at Arizona State University) for the past 25 years increasing customer satisfaction to 98% and minimizing cost by 5 to 30%. These practices are a part of the “PM of the Future.”