Assess Customer Participation and Successful Project Delivery

CHAPTER ONE

1.0 Background to the study

The beginning of every business venture through to its end can be termed as a project. Basically a project is an event which has funding limits, time constraints, a beginning and an end. They are works handed to persons to perform for financial gains. Projects are usually separate from daily processes or task performed. A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality (Buchanan & Boddy, 1992).

Projects involve specific processes or set targets that need to be undertaken with the help of cross functionality. Being set for a specific time, gives projects very short life spans with limited launch windows at the same time. These specific goals are those set by clients or customer, whose interest must be satisfied at the completion of the project. Clients’ interests are like a ‘yoyo’ in project management, may rise to a level or drop also to a specific level and this fluctuation may continue till the completion of the project.

Projects usually have four stages to completion. These are;

• Conceptualization - the development of the initial goal and technical specifications.
• Planning – all detailed specifications, schedules, schematics, and plans are developed
• Execution – the actual “work” of the project is performed
• Termination – project is transferred to the customer, resources reassigned, project is closed out (Pinto, 2007).

These four stages are termed the Project Life Cycle. Customer participation and interest have been found to fluctuate significantly from conceptualisation of the project to termination. Figure 1.0 below is provided here to illustrate this significant fluctuation.

Fig.1.0

[pic 1](Pinto, 2007)

From Figure 1.0 above, it is clear that the traditional client participation in the project is high at the conceptualisation stages, since that is when specifications of the project are being given. The client’s interest falls gradually at the planning stage since the wants or specification of the project have already been given to the project team. Then it’s up to the project team to plan and put the specification together for execution. The third stage which is execution is when the project is undertaken and the specifications are tried to be met. At this stage client interest is not particularly predominant.

Clients at this stage adopt a wait and see attitude hoping that the project team will deliver. The final stage is the termination stage where the project is handed back to the client for approval or disapproval, taking into account the client’s specifications is met. The termination stage is also where the client and the project team finalise financial statements. The attention to detail required at this stage and the need for finalizing financial commitments increases client interest to a level almost equal to when the project was conceptualised, if not higher.

The purpose of my study is to assess customer participation and successful project delivery, whether the participation has a negative or positive impact on successful project delivery.

Customer participation in projects is also a major factor in the extent to which a project may be undertaken and delivered. How the project manager relays the progress of the project to the customer at each stage of the project, may determine the customer’s satisfaction level (Buchanan & Boddy, 1992). If the satisfaction level is minimal, it may invoke the client into wanting to stick by the project to oversee the progress and this is what this study is about to determine. Whether this kind of attitude is an advantage or disadvantage to the undertaking and delivery of the project.

1.1 Statement of the problem

Customer participation has a significant role in enhancing organizational performance and by ensuring that all project members understand their duties and contributions may affect the project in a positive or negative way. Unfortunately for many years, customer participation has become unpredictable in project management and the interference tends to have both positive and negative effects on the delivery of the project. The frequency of inappropriate and/or the lack of effective and efficient performance management systems are damaging projects and leading to decrease in productivity. It has also ended up with ethical and legal problems in many organizational projects.

Traditionally customer participation in project management has primarily been where the customer states what they desire for in undertaking the project and then becomes a spectator to the project. This traditional customer participation approach, often manifested into interruption in the undertaking of the project as the client frequently chips in to shape the project to their desired specifications.

Whether they acknowledge it or not, clients are fond of being catered for and they like to have their hands held when a project is being done for them.  And the less they know about what is going on with the project, the more uncomfortable they will be.  Even if they hear nothing unenthusiastic about the project, their approval level will decrease over time as doubt and concern starts to go through their minds.

 The issue therefore is that customer participation is important and relevant but what level of participation or involvement are we talking about? At what level of the project should participation be encouraged or discouraged? That is the subject of the study.

1.2 Objectives of the Study

The objective of this study is to investigate the extent of customer participation in projects and how it affects performance and delivery of the project. And also to determine systems, characteristics and qualities which influences effective customer handling in the project.

To achieve this objective the study specifically seeks to:

1. Identify the current customer participation management practices adapted by RICS Consult Ltd, Lowe Lintas and Imajin Ads.
2. Determine the effectiveness of the existing strategies for sustaining customer participation in projects of the selected companies.
3. Determine the strategies that allow for customer participation in projects without negative effects.

1.3 Research Questions

 The research questions are as follows:

1. What is the concept of customer participation in project undertaken in Ghana?

2. What are the effective customer participation management practices adopted in projects being done in Ghana?

3. What advantages can be derived if customer participation is enhanced in Ghana to obtain a successful project?

4. What strategies can sustain positive customer participation of projects in Ghana?

1.4 Justification of the study

The Purpose of this study is to provide ‘new’ knowledge on the involvement of customers in project management. This study seeks to find out the essence of customer participation and how its positive or negative impact drives a project to success or failure.

Projects are manifestations of client ideas and dreams and since client satisfaction is the main goal, customer participation is essential. A project without customer participation that is just undertaken and handed back to the client, without the endorsement of the work, would have been a waste of time; because if the client does not accept the project at termination, then the project is useless.

The study also seeks to find whether the path acknowledged on the project life cycle of high interest from clients at the initial stages, then gradually dropping from planning to termination as happens traditionally still exist presently or it is the untimely interruptions of the customer during projects justified.

 The result of the study will be used as data for potential research. The study could be a basis for developing hypotheses to be tested on a larger sample of firms, and could be constructive to people who are interested in customer participation. Especially, this study will offer relevant information on what stages customers can interfere if they do and how it may impact on the project.

1.5 Research Methodology

The research uses case study methodology to examine the extent of customer participation in projects of RICS Consult Limited, Margins Systems and Imajin Ads. The use of case study methodology permits a detailed or exhaustive examination that is not possible with a wide cross sectional study. The design of the study is exploratory and both primary and secondary data was collected. The population of the study was the employees of RICS Consult Limited, Lowe Lintas and Imajin Ads as well as their clients. The primary data was collected by survey method in which questionnaires were administered to the staff and key customers of RICS Consult Limited, Lowe Lintas and Imajin Ads. Samples were drawn from RICS Consult Limited, Lowe Lintas and Imajin Ads, and their key customers. Seventeen (17) people were selected from the three companies each using stratified sampling and then simple random was used to get thirty-two (32), clients of the stated companies.

 Secondary data was obtained from journals, magazines and through the websites of the selected companies.

1.6 Limitation of the study

The sensitivity of certain information to companies made it difficult to obtain certain kinds of data needed for the study. Companies in Ghana do not easily share information with researchers or anyone for fear of it being used to benefit a competitor.

Since these companies are private and information that is sensitive to one company may harm another, that is since they are rival companies, management may be reluctant in handing over information. This is also apparent in the way the respondent companies reacted to sensitive questions by trying hard to dodge such questions and not responding to them. People generally do not take questionnaire filling seriously and would not fill the details with utmost zeal and honestly.