70 N.O.E. Olsson / International Journal of Project Management 24 (2006) 66–74third party reports usually have a high professional standardand analyse the projects in depth as well as in abroad perspective. Of the projects, 15 are described primarilybased on third part reports. For three of the projects,information is based on both third part reports andpersonal experience. Case study reports have been establishedfor the projects that have personal experience as adata source. The analysed projects have been carried outbetween 1986 and 2003, the majority between 1995 and2000. A wide variety of projects have purposely beenanalysed in order <strong>to</strong> capture different aspects of projectflexibility. The type of projects in the study is shown inTable 1.On the basis of the descriptive information, an assessmentwas made of the project flexibility characteristics.Due <strong>to</strong> the size of the projects, the analysis is based onthe strategies of the projects and major events.To analyse the information related <strong>to</strong> the projects,codified data were entered in<strong>to</strong> a database. Table 2shows the project attributes that were used in the study.The table also shows the alternatives and scales thatwere used. Some of the information relates <strong>to</strong> the projectitself, such as industry and project budget. The analysisincludes information related <strong>to</strong> approaches <strong>to</strong> flexibilitythat were planned for or observed, including scopechanges, delays and postponed decisions. In addition,the observed opinion on flexibility for different stakeholdersis included in the analysis. In order <strong>to</strong> validatethe data, informants with experience from analysed projectshave reviewed the relative scores of the projects.Table 1The studied projects by industry and size of projectNumberType of project (n = 18)Offshore 1Hospitals 3Transportation infrastructure 7Defence 3Public buildings 4Project size (n = 17)250 mill euros (2.000 mill NOK) 3Table 2The parameters used in the analysisDimensionScale/alternativesType of project/industryTransportation infrastructure;public buildings; hospitals;defence; offshore (oil and gas)Size of projectActual cost for finished projects,latest known budget for on-goingprojectsSpecific type of flexibility Change; extension; contingencyplanning; late locking;continuous locking, noneProject phaseFront-end; planning; execution;noneFlexibility in the product Low; medium; highFlexibility in the decision Low; medium; highprocess (planned and actual)Degree of modularityLow; medium; highStakeholder who initiatedthe use of flexibilityStakeholder attitude<strong>to</strong> flexibility(project owner, user,project managementand contrac<strong>to</strong>r)Users; owner; projectmanagement; contrac<strong>to</strong>r; none;N/ANegative; neutral; positive; N/A4. ResultsIn the following, the results from the study are presented.The results are divided in<strong>to</strong> different sections,in order <strong>to</strong> address key research questions.4.1. What type of flexibility has been used and when?Changes and extensions are commonly used, and areobserved in 11 projects, covering most types of projects.A late locking was applied in 4 projects. One defenceproject used a contract with predefined options as wayof achieving a continuous locking of the project. Contingencyplanning was the main flexibility approach in oneproject. In only one project, a college building construction,flexibility was not applied.Flexibility was used in all phases of the projects, butparticularly during the planning phase. Three projectshad need for flexibility in the execution phase, two ofthem being hospitals. One of these projects had extensivechanges and extensions, followed by large cost overruns.The other project applied a late locking of thespecification related <strong>to</strong> key medical equipment. Latelocking was related only <strong>to</strong> a limited part of the project.This project was delivered on time and budget. The thirdproject with flexibility need in the execution was a renovationof an old public building. Requirements related<strong>to</strong> preservation of cultural and his<strong>to</strong>rical features ofthe building proved <strong>to</strong> be challenging <strong>to</strong> specify beforethe work was started. These results are summarised inTable 3.4.2. Stakeholder perspective on project flexibilityAs shown in Table 4, the project owners and the usersappear <strong>to</strong> look favourably upon flexibility. In only oneproject, the users were negative <strong>to</strong> flexibility. This wasa school building project, where the users (primarilyteachers and parents) wanted predictability in the
N.O.E. Olsson / International Journal of Project Management 24 (2006) 66–74 71Table 3Flexibility use by type and project phaseNumberType of flexibility applied in the projects (n = 18)Late locking 5Continuous locking 1Extensions 4Changes 6Contingency planning 1None 1Project phase for main use of flexibility (n = 18)Front-end 4Planning 10Execution 3None 1front-end phase regarding the time and scope of theschool building refurbishing. The study indicates amixed opinion on flexibility among project management.Contrac<strong>to</strong>rs were overall negative (even thoughthe contrac<strong>to</strong>rÕs opinion is based on fewer observationsthan the other categories).Regarding project management, there are indicationsthat they look favourably upon flexibility use in thefront-end or planning phase, but not in the executionphase. Furthermore, project management appear <strong>to</strong> bepositive <strong>to</strong> flexibility in projects where they and the projec<strong>to</strong>wner are found in the same or closely relatedorganisations. This was usually the case in transportationinfrastructure projects. When the project managementand the project owner are in differen<strong>to</strong>rganisations, project management had a negative viewon flexibility. This was typically the case for publicbuilding construction.Table 4 also illustrates that the stakeholders thatmost often initiate the use of flexibility, are also mostpositive <strong>to</strong> flexibility. Among the studied projects, itwas mostly project owners and users who initiated theuse of flexibility in the projects.4.3. Modularity, flexibility in the decision process and inthe productAs seen in Table 5, the majority of the projectsplanned for low flexibility in the decision process. TableTable 5The analysed attributes related <strong>to</strong> flexibility in the projectsLow Medium High N <strong>to</strong>talFlexibility in the product 8 8 2 18Flexibility in the process, planned 13 2 3 18Flexibility in the process, actual 2 6 10 18Modularity 8 5 5 185 also shows that many projects had a high actual flexibilityin the decision process. A high degree of plannedflexibility in the decision process indicates that the projectswere prepared for an iterative decision, planning orexecution process. Projects that clearly illustrated thatflexibility, or related terms, in the product was intendedare rated as having a high flexibility in the product. Projectsthat are registered as having a low flexibility had nostated or observed intentions of flexibility. Medium flexibilityindicates that the projects planned for flexibility insome phases or some areas, but not as a key issue.A technical analysis of how different changes have affectedthe flexibility in the product was beyond the scopeof the present analysis. In Table 5, flexibility in the productis therefore not divided in<strong>to</strong> planned and actual, buttreated as a characteristic of each project as a whole.Most projects had a low modularity, particularlypublic buildings. To achieve a high modularity, twotransportation infrastructure projects (one road constructionand one railway line) were divided in<strong>to</strong> sections,which could be built fairly independently. Thetwo defence projects with a high modularity were related<strong>to</strong> system development and acquisition, were the systemswere possible <strong>to</strong> divide in<strong>to</strong> modules, both from a technicaland a contractual point of view. Finally, oneschool building project had a high modularity becausethe project actually consisted of upgrading of a fairlylarge number of school buildings. Even if the plans foreach school had consequences for the other schoolsand the decision process addressed the whole upgradingplan, each school building could be managed as a subproject(and some would argue that this ‘‘project’’ wasa ‘‘programme’’, and each school was a project).An attempt was made <strong>to</strong> investigate the relation betweenmodularity and flexibility in the decision process.If a project was highly modular, flexibility in the decisionTable 4Different perspectives on project flexibility hold by project stakeholdersProject owner Users Project management Contrac<strong>to</strong>r NoneStakeholder opinion on flexibility Positive 12 9 6 0 0Neutral 4 3 5 3 0Negative 0 1 7 4 0n = 16 13 18 7 0Stakeholder who initiated the use of flexibility(n = 16)8 5 2 0 1
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Degree of redundancySlackPrecisionC