Page 202 - Global Project Management Handbook

MANAGING RISKS AND UNCERTAINTY IN MAJOR PROJECTS 9-7

problems that become better defined as the process unfolds. Politicians may be searching
for political opportunities, whereas contractors may be searching for business opportuni-
ties. Potential sponsors from diverse fields are also searching for opportunities at the
same time. This early project phase therefore has been called the search period.
It is often difficult to know when exactly a project starts. In retrospective, it is possi-
ble to trace the project back to its beings, the time when serious effort was first put into
what would become the project concept. The search process is very nonlinear and episodic.
Often the project will have been considered on different occasions over a long period of
time. For example, many transportation infrastructure projects and facility development
projects are in the air for decades before the timing is right to move to some form of con-
crete proposal for action. After all, Napoleon did start work on a tunnel under the English
Channel.
The existing institutional framework or a proposed new institutional framework will
define to a large extent who the main project actors can be. Regulations typically set out
who can undertake particular types of projects, particularly in areas such as transportation
infrastructure. Many examples have been seen over the last 20 years of governments sig-
naling their interest in alternative project-delivery methods by indicating changes to be
made to the institutional framework.
The project sponsor brings closure to the process of searching for a preliminary con-
cept and for the organizations that could play a part in developing and delivering the proj-
ect by signaling a choice. The sponsor identifies the critical issues that must be addressed,
the general strategies for addressing them, and the participant organizations that can con-
tribute to their resolution.

The Strategic Shaping Period

In order for a project to be viable, many pieces of the puzzle must come together. A proj-
ect concept must be developed. A sponsor/owner coalition must be formed and structured.
Political support must be mustered. The project must be anchored into the institutional
framework. And project risks must be identified and a mechanism put in place for their
management. The project sponsor plays a key role in moving the project opportunity
forward.
A preliminary concept is developed, and a preliminary coalition is formed. The spon-

sor often will initiate a small number of alternative concepts in a search for a viable proj-
ect. The project concept or concepts are tested in different arenas and found to be wanting
in many respects. The concepts and the coalition therefore must be modified and retested.
Negotiations take place with many stakeholder groups and particularly with regulator
agencies and political representatives in an effort to modify and stabilize the regulatory
regime or institutional framework. The project concepts, the environment, and the institu-
tional framework are subjected to intense scrutiny from many different points of view.
The sponsor plays a critical role in identifying the relevant points of view and in setting
up a structure that will make certain that the relevant issues are addressed. As the issues
are addressed, the concept again must be modified and retested.
Not only are the problem or opportunity and the solution being sorted out, coalitions
of players are also taking form. The rhythm is broken and sporadic. Projects often go into
limbo after periods of considerable exploratory activity. Exploratory processes often lead
to dead ends and are abandoned, at least temporarily. Major setbacks are not uncommon
because this protracted process is vulnerable to significant and unforeseen changes in the
project environment. Timing is key.
This iterative process, called strategic shaping, molds not only the project concept but
also the project organization and the way it is anchored into the institutional framework