A holistic approach to the management of risk and value in project management

The objectives set for this research project are to examine the management of uncertainty and risk in project management, to investigate the interface between risk and value management and to develop new frameworks and strategies for managing risk and value in project management. These objectives have been attained and the present thesis proposes an innovative holistic approach to the management of risk and value in project management. This was achieved by adopting a mixed research methodology by means of different research methods drawing from both logical-positivist and interpretative philosophies of approach. The different research methods employed throughout the research included a continuous literature review, surveys, interviews, case-studies, document analysis, participant observations and action research. The research period was divided in three phases during which multiple frameworks were constructed, evaluated and iteratively modified according to the research evidence gathered at each successive phase. The first phase was carried out through an exploratory type of research to investigate the existing practice of risk management via stated open-ended research questions and development of a conceptual model and a theoretical framework. These research questions, model and framework were then evaluated by information gathered from an open qualitative survey and case studies of project risk management practice. The deliverable of this first research phase was an innovative holistic risk management methodology which demonstrates the different dimensions of uncertainty, its categorisation into risk and its possible control and mitigation throughout a project’s life. The holistic methodology makes use of both 'soft' and 'hard' approaches to harness uncertainty and to consider the multiple risk perceptions of project stakeholders. During this same research phase, a preliminary investigation of the possible interface between risk and value management was also conducted through an extensive literature review. In the second research phase, the risk and value management interface was developed based on both theory and practice. A conceptual model for the interface was thus constructed from the review of the literature and of the existing practices. Through the resulting enhanced understanding of the relevant issues, a new theoretical framework was constructed during this second research phase. This theoretical framework examined the different issues of importance for the in-depth investigation of value and risk management processes. In conjunction with the model and framework, a series of research questions and research propositions were also formulated. Hence a robust process of evaluation was made possible by means of a conceptual model and a theoretical framework as well as research questions and research propositions. Consequently, a second survey and interviews were carried out to obtain the perceptions of value and risk management practitioners on issues such as the current practice of value management, the process itself, the success factors, the possible interface with risk management, the extent of existing interface, the opportunities for integration, amongst others. Cases of value management studies were gathered and examined. The researcher also attended value management studies as a participant-observer for probing the VM process, the practices and the value and risk interface. New themes emerged from the resulting observations made. The extensive information thus gathered was used to evaluate the conceptual model and the theoretical framework as well as the research propositions. Further evaluation of the observed value management process was carried out by means of comparison with other 'soft' group decision methodologies identified by the continuous literature review to draw insights for developing the value and risk interface. Consequently, in the third research phase, a holistic strategy for value and risk management was developed based on conclusions and insights drawn from the overall evaluation in the preceding phases. The final deliverable of this thesis therefore is a holistic strategy for managing risk and value in project management, including multiple group decision frameworks and methodologies for the whole life cycle of a project.