Project Planning and Project Success Relation

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Abstract

Real Estate Industry in UAE has been experiencing growth of 20% per annum. As demand for housing increases, the industry strives to meet the demand by rolling out multimillion apartment projects such as the one in the Greens at Emirates Golf Club, Dubai.

However, such big projects may not meet their goal, especially when response from end users is negative. Fortunately, the Real Estate Regulatory Authority in Dubai (RERA) has been mandated by the government to regulate this industry and review customer concerns.

In the last one year, occupants of the newly completed multimillion-dollar apartment project in The Greens have registered to RERA on the billing system on water and electricity consumption. This prompted RERA to commission an inquiry into the planning of this apartment. Interestingly, the body established some faults in the planning blueprint. Due to confidentially, I have chosen to call it Project X.

Thus, this research treatise attempts to review the question explicitly; how do bad planning affects the outcome of a project? Qualitative research methods are adopted and recommendations made from the findings. The findings supported literature review, which suggested that bad planning leads to end-user dissatisfaction since success of a project is determines by end-users’ perception on satisfaction level.

Introduction

Planning determines customer satisfaction and perception on success of a project. Planning process involves incorporation of different views of stakeholders into a single unit outcome expected to reflect these views with precision. However, the overall success is determined by end users who are the target consumers of the project.

Quality of service delivery and tailoring customized demands for potential service users determine final perception placed on the project. Therefore, planners often strive to meet demands of the market with the cost constraint. Despite their measure variables of success, actual success is determined by perception of final consumers.

Thus, this research treatise attempts to explicitly establish the relationship between bad planning and success of the final outcome of a project form the customer satisfaction and perception angle. Besides, the research will review findings and make independent recommendations on the research topic.

Background of research

Recently, the topic of utility and service charges has become a hot debate amongst the residents of apartment complexes in Dubai. Many people pay utility bills that do not reflect their actual consumption of electricity and water.

The Real Estate Regulatory Authority in Dubai (RERA), which is the sector responsible for these matters, had to step in and find out the root cause of this problem. After requesting to have a look at documentations of the planning phases of apartment complex projects, they have discovered that a mistake was made during the planning process of most of the apartment complexes within the Emirate (Deulgaonkar 2012).

This mistake was that there was no separate electricity or water meter installed in each of the apartments in the complex, which means that the entire electricity and water consumption of all the residents was measured by one meter then the bill split between water and electricity consumption.

Reflectively, it is out of order to fully and categorically assert that planning is the backbone of the success of a project. Research suggests that project planning and project success have a ‘cause and effect’ relationship (Lipovetsky et al. 1997).

This relationship is simultaneous and cannot operate independently of the other. Moreover, Dvir claim that “planning is considered a central element of modern project management” (Dvir, 2005, p. 200). Project success lies upon proper planning and proper execution. A mistake in planning can result in multiple problems arising not only during the project lifecycle, but also after the project is completed (Fishbein 1967).

Mochal (2003) states that

It’s very helpful to have an agreed upon and consultative set of project management procedures that are used to manage the project. These will include how the project manager will manage scope, issues, risks, communication, the work plan, etc.

Again, the key is to define these all upfront to manage expectations better. For instance, if you define and get agreement on the procedure for approving scope change requests, you should have a much easier time managing change once the project begins (Mochal 2003, p. 1).

Research problem

This research will deal with the problem of how a mistake in the initial planning phase of an apartment complex construction project in The Greens at Emirates Golf Club, Dubai, has produced a long term negative effect on the residents of that complex. For confidentiality reasons, the project will be referred to as project X.

Research questions

Research questions for this project are listed as;

What are the short term problems occupants of the apartment at the Greens Emirates Golf Club experience with the billing system?
What are the long term problems the occupants of the apartment at the Greens Emirates Golf Club project to experience in the future when correctional measures are not taken?
What are the suggestions of the participants on the billing problem in project X?
What are the recommendations of the RERA on the problem of project X?

Research aim

The aim of this research is to examine how bad planning affects the outcome of project X.

Research objectives

Research objectives encompass the expected results and focal point of the research in order to merge hypothesis and actual results. The following are the objective of project X.

To explore how project planning and project success are related to each other.
To investigate the case of project X.
To suggest solutions to solve the problem of project X

Rationale of research

This research will explore how proper project planning leads to project success. It will also use the case of project X to show how bad planning results in mistakes that may not necessarily show while the project is undergoing, but are visible and have a serious effect on stakeholders after the project is completed.

Besides, the project attempts to identify specific concerns, possible reasons for the oversight in project planning, and assumptions made by planners in this multi million apartment project.

Research hypotheses

There are lots of researches existing on the relationship between project planning and project success but mainly are done by identifying the success measures of project organizations and developers, not its end-users. I will be focusing more on the point of view of the end-users of a project with the aid of my case study, project X. My hypothesis for this assignment is: How bad planning affects the outcome of a project.

Literature rewiew

Project planning is by far the most important phase in the project management life cycle. It is easy to plan a project but the challenge comes in how to “correctly” plan that project in order to meet all objectives and goals.

A study conducted by Dvir (2005) and Shenhar et al. (2001) shows that many projects were considered failures because they “failed to produce actual benefits to the customer” (Shenhar 1997, p. 8) although they were perfectly executed as per the project plan.

This shows that when setting goals and objectives in the planning stage, project managers tend to focus mainly on solving problems that can only be seen at the time of project completion rather than on situations that may arise sometime in the future to final consumers of the project end product.

People measure the success of a project according to their point of view (Shenhar et al. 2001). Some projects can be forecasted as failure by their developers, but can turn out to be widely successful amongst the customers, and vice versa.

Organizations measure success by meeting budgets, deadlines, and technical specifications of their project whereas customers call a project successful when their needs are fulfilled and their satisfaction is achieved. Pidd and Robinson (1998) assert that:

The definition of success is based on a four stage model of changing perceptions and it assumes that success is not a simple binary variable, but can vary considerably throughout the life of a project. To keep your projects from ending up in this gray area (or in the failure range), you must avoid making the single biggest project management mistake: inadequate project definition and planning (Pidd and Robinson 1998, p. 200).

Therefore, determinant of project success on the side of the consumers or uses of the final product rely on what they define as a value against monetary use. It is important to reflect on consultative planning to incorporate needs and customize demands of the stakeholder or intended uses of a project. In a residential apartment project, utilities contribute substantially in the classification of satisfaction against monetary expenditure.

Customers across the business globe demand satisfaction against value of their money. Comfort and accuracy in design determine satisfaction level. When purchasing or renting an apartment, a potential customer will review maintenance cost, utility reliability, and cost of using the utilities such as electricity, water, internet, among others.

According to Mochal (2003), as painful as it is to define the project while it is in progress, it’s still preferable to ignoring the problem. The first option may end up causing rework, resulting in additional cost and a later delivery date. However, ignoring the problem may end up making the entire solution irrelevant or obsolete as soon as it is delivered (Mochal 2003, p. 1).

Quality and authenticity of services besides durability and comfort of an apartment is important and largely determine consumer satisfaction (Oliver 1980). In business, consumers rarely complain when satisfied. However, since money is involved, customers always demand quality. Consumers rely heavily on experience to evaluate quality of service and reliability of billing equipment used.

When expectations fall below the perceived quality, satisfactory level will be lower in the ideal perception. Service delivery must, therefore, align to consumer expectation since consumption decision is often controlled by consumers’ perception on a service. Olatoye and Araloyin assert that:

Services have become more and more important factor for organizations. Most service providers’ depends on performing the services correctly but also others find services as an important means of differentiation and creating better customer satisfaction.

The problem facing many real estate agents is how to meet their client’s taste, retain them and be able to gain competitive advantage over others. There is need to know what the consumers actually value so as to meet their needs and probably retain them (Olatoye and Araloyin 2011, p. 140).

Thus, the outcome of a project should strive to create conducive atmosphere in the interaction chain so as to make views of customer important. Therefore, “developing a better understanding of the perspective of the concerned consumer and devising strategies to increase their service quality. This will give the consumer satisfaction and also encourage repeat business” (Olatoye & Araloyin 2011, p. 140).

Research methodology

This is a systematic but comprehensive method of data collection, grouping, and analysis in order to scientifically apply to reason from the analyzed data. As a matter of fact, the result of this process combines outcome, purpose of the research, and actuality.

As stated by Kothari (2004), a blue print is transformed into a research design through series of operational study aimed at drawing a factual outcome comprising of evidence backed claims.

In project X, qualitative analysis will be adopted to incorporate a systematic investigation in line with a specific phenomenon approach. The actual scenario is then analyzed through mathematical, statistical, and computational modus operandi (Kothari 2004).

Research approach

This research would be conducted using a qualitative case study approach. I chose the qualitative approach rather than a quantitative because the scope of the research is focused, subjective, and dynamic and discovery oriented. The qualitative approach is better suited to gain proper insight on the situation of the case study.

Besides, qualitative data analysis is more detailed than quantitative one. Moreover, this approach will create room for further analysis using different and divergent tools for checking the degree of error and assumptions limit (Dvir et al. 2003).

Data to be gathered will be regarding

How correct planning is important for projects to succeed.
How success is measured by both organizations and customers.

Selection of the Empirical Context and Research Participants

Since I am unemployed, I approached the Real Estate Regulatory Authority in Dubai (RERA) and asked to be permitted to interview experts in planning evaluation, and those who were selected as members of the ad hoc committee to investigate into complains registered by occupants of apartments in project X. Their opinion and finding would support my hypotheses.

I conducted one-to-one interviews with subject matter experts in the field and analyzed the findings. I have been keen following the development in media station of faulty utility equipment and exaggerated bills to people living in the apartments under project X.

Thus, this formed the rationale for my choice of experts in the real estate industry who have been on the receiving end of the heated debate. In accomplishing this motive, I have opted for a ‘one-on-one interview method’ as a means of conducting the primary methods of collecting information.

The Real Estate Regulatory Authority in Dubai (RERA) is a government regulatory body on real estate development industry. The body has the best experts who have adept knowledge in real estate planning and review quality assurance on the side of consumer satisfaction.

From the body, I was accorded support and an introduction letter to interview willing experts within the industry. The ‘one on one interview’ comprised of open ended questions directed towards the main hypothesis of how bad planning affect the outcome of a project in the real estate industry.

The reason for use of open ended but directive questions was to get an expertise opinion on how planning mistake influence customer satisfaction in the real estate industry.

Interviews conducted comprised of eight experts across the regulatory body who were involved in the inquiry over complaints presented by occupants of apartments in project X. Criteria for selection depended on willingness to give an interview and availability of each target interviewee.

The participants comprised of four committee members of the ad hoc commission of inquiry instituted by RERA on project X, two experts in customer satisfaction assurance, and two real estate planning reviewers. Their period of employment in KERA varies from two years to ten years.

As part of confidentiality agreement, I have intentionally withheld their names and respective positions since the interview requested for their independent opinion which may not align to the position of KERA on errors in planning of project X besides findings from the commission of inquiry.

Data collection

Adopting semi-structured open-ended questions interview, data collection through one-on-one interview took a period of six days. The choice of one-on-one interview was based on the rationale of gaining insight on feelings, opinion, and experiences besides official findings of the ad hoc committee. Moreover, the semi-structured interviews give room for further probe depending on nature of data collected (Mugenda & Mugenda 2003).

The process of a one-on-one interview involves scheduling a meeting between each informant at a time. As a matter of time, this method is easy to apply and allow direct interaction with the informant. Besides, these meetings are not complex to arrange since each of them involves the informant and the interviewer.

In addition, the interviewer has full control of the interview process and likely to get first-hand information with minimal biases. Moreover, the researcher is in a position to seek further clarification on specific ideas and responses given within the interview time. From responses gathered, one-on-one interview makes it easy to scribe clear responses that answer the questions asked.

One-on-one semi-structured interviews allow for presentation of open-ended questions which attract diverse open ended answers. This is a plus on side of the interviewer who will have an opportunity to gather expansive answers as the respondent has freedom of speaking widely on problem statement.

In the process, the respondent may in fact, provide an insight into a forgotten aspect of the study aim. The introduction letter from the HR of RERA enabled me to interact with members of staff in this regulatory authority freely.

Besides organizing an interviewing room, the HR officer at RERA gave me a list of the most appropriate respondents from which I managed to convince eight to participate in my project. Besides, the HR officer gave me a research paper on similar topic from their archive.

This was helpful since I was in a position to review and understand background of the research problem and its current position. Besides, from the archive report, I was in a position to make a comparison between interviewee’s reply and past reply on more or less the same topic. My own experience as a tenant in our rented apartment helped me to clearly ask intelligent and deep questions on effects of poor planning.

In addition, the company of the HR officer made it easy to win confidence of the participants when seeking an audience with them. Since I accorded the research project professional seriousness, the willing respondents gave reliable, credible, and informed responses to questions asked.

Data Analysis

Data collected through one-on-one interviews were scrutinized in detail. The analysis intended to identify evidence supporting the claim that bad planning affects the success of a project outcome. Though open-ended, each question asked was comprehensive to ensure that respondents had an opportunity to give deep and answers that provide an insight into research problem solution.

Transcription was then done to each of the recorded interview processes. For each response, from each participant, the recorded transcripts were perused to coin relevant and most appropriate response. Factually, instances of divergent or convergent opinions by one or more respondents were marked appropriately (Silverman 2010).

Expected findings

After going through some of the literature, I expect to find that project X is facing its issue because it did not put a lot of consideration to customer satisfaction when planning the project.

Projects managers must focus on customer satisfaction as much as, focusing on meeting project management goals and objectives. I found that sometimes, project managers get too absorbed with meeting goals set within the project management field and forget that the reason behind their project is actually to satisfy its end-users.

Findings and Discussion

Despite professional planning and approval from RERA, mistakes often occur in real estate plan execution and lead to oversight in parts which may look negligible and seriously affect end user’s budget. The participants are from the regulatory body and 50% of them involved in the ad hoc committee inquiry on customer dissatisfaction with planning of project X.

The entire participants had similar answers to QUESTION 1 and stated that short term problems experienced by occupants of apartments in project X were exaggerated utility bills on water and electricity consumption.

Specifically, the participants drawn from the ad hoc committee stated that this problem was as a result of installation of a single meter unit to bill two utility services; that is water and electricity. Therefore, service would read the meter and charge recorded value for water and electricity independently.

QUESTION 2 attracted mixed reaction with Interviewee 5 who had a different view on long term effect of planning negligence on project X. If the fault in utility meter is not corrected, seven participants suggested that occupants of these rental apartments may move to other apartments.

However, Interviewee 5 opines that this is negligible since occupants of project X apartments were well financially endowed and liked the exclusive environment. In addition, he opines that there will be no long term problem since the ad hoc committee had made a recommendation to planners of project X to overhaul single-unit meter and replace it with independent meters for it utility service.

In answering QUESTION 3, Interviewee 1, Interviewee 2, Interviewee 3, and Interviewee 4 who were in the ad hoc committee of inquiry on project X , suggested an overhaul of the meter system and replacement with an independent one for each utility bill.

Specifically, Interviewee 3 stated that the problem experienced by occupants of project X apartments was as a result of an oversight in planning despite the fact that this project targeted choosy clients.

Interviewee 5 and Interviewee 6 from customer satisfaction assurance department recommended for compensation of affected occupants by utility provision services by offering free water and electricity for a specified period of time and changes are made. However, they suggested that this would be a public relations exercise.

The two planning experts, that is, Interviewee 7 and Interviewee 8 establishment of professional approval and consultative planning between the planner and end-user who in fact, had paid for the apartments before completion. In addition, they opine that the single-unit meter should be replaced with independent utility meters for water and electricity.

QUESTION 4 attracted similar response from participants who were aware of the recommendations made by the ad hoc committee. All stated that RERA recommended review of the plan to incorporate independent utility billing meter for water and electricity consumption.

Interviewee 6 added that the process of modifying the plan and actualizing changes was to be done in presence of the authority representatives and costs passed to planner and developers.

Summary of the Findings

All the participants shared a common stand on effect of poor planning and oversight on success of project X apartments. As projected in the review of literature, it is apparent that incorporation of a single utility measurement bill for more than one utility service has diverse effects on end-users who complained of exaggerated billing rates. Consultation with the staff of RERA identified the effects of poor planning of project X on end-users as follows:-

Customer dissatisfaction (I 7, I 8).
Extra cost on the side of customers (I 1, I 2,I 3,I 4, I 5,I 6).
Inconveniency in utility service delivery (I 1, I 2, I 3, I 4, I 5, I 6).
Extra costs on side of developers due to modification after completion (I 6).
Inconveniency on end users during the modification period (I 5, I 6).

Conclusion

Literature review on this topic drew a clear picture of support of research problem before carrying out actual research. As a matter of fact, the finding of this research affirmed literature review validity. The findings revealed that poor planning affects satisfaction level on the side of end users who would always want value for their money.

Due to bad planning, neglecting billing meter specification has resulted in series of protests forcing RERA to form a committee of inquiry. The finding of this committee revealed that concerns raised by occupants of project X apartments were genuine. “There is need to know what the consumers actually value so as to meet their needs and probably retain them” (Olatoye & Araloyin 2011, p. 140).

The participants confessed that success of a project entirely depends on consultative planning since what matter is not the blueprint, but end user’s satisfaction level against expectations. The findings by the ad hoc committee supported Olatoye and Araloyin study on effective planning in real estate industry and success as perceived by end-users.

As revealed by participants, installation of single-unit meter instead of an independent one for each utility service has made the rather successful multimillion-dollar project rejected by end-users who hand to incur costs beyond their consumption.

Among effects of bad planning on success of a real estate project as perceived by end-users include customer dissatisfaction, extra cost on the side of customers, inconveniency in utility service delivery, extra costs on side of developers due to modification after completion and inconveniency on end-users during the modification period.

Recommendations

As confirmed in the research findings and literature review, it is necessary to carry out consultative planning in order to meet demands of customers since success of a project is dependent on customer satisfaction level against their expectation. Thus, I would recommend the following for the study:

Proper planning should be carried out to include utility equipment and other fittings in the real estate industry.
Consultative planning should be adopted to incorporate views of the entire stakeholder before commencement of a project since its success will depend on end-users’ perception (Nicosia 1966).
A project plan should be flexible to accommodate adjustments which may be recommended after completion.
Project planner should incorporate research finding of the RERA body on customer views and expectations before transforming a plan into a structure.

Areas of future research

The focus of this project was based on end-user satisfaction measurement variables. The research was entirely based on determinant of end-user satisfaction level based on their perception.

Thus, little is mentioned on the cost constraints and planning rationale on the side of planners. Hence, further study should be carried out on to incorporate cost constraint and planning rationale before making an inclusive conclusion.

Reference List

Deulgaonkar, P 2012, “RERA blames chiller cost for service fee hike”, Emirates 24/7. Web.

Dvir, D 2005, “Transferring projects to their final users: The effect of planning and preparations for commissioning on project success,” International Journal of Project Management, vol. 23 no. 4, pp.257-265.

Dvir, D, Razb, T & Shenhar, AJ 2003, “An empirical analysis of the relationship between project planning and project success,” International Journal of Project Management, vol. 21 no.1, pp.89-95.

Fishbein, M 1967, “Attitude and prediction of behavior,” in M Fishbein (ed.), Readings in Attitude Theory and Measurement, New York: John Wiley, pp. 477-492.

Kothari, C 2004, Research methodology: Methods and techniques, New Age International (P) Limited Publishers, New Delhi.

Lipovetsky, S, Tishler,A, Dvir, D & Shenhar, A 1997, “The relative importance of project success dimensions,” R&D Management, vol. 27 no.2, pp. 97-106.

Mochal, T 2003, Poor planning is project mistake number one. Web.

Mugenda, M & Mugenda, G 2003, Research methods: Quantitative and qualitative approaches, Acts Press, Nairobi.

Nicosia, F M 1966, Consumer Decision Processes: Marketing and advertising implications, Prentice-Hall, Englewood Cliffs, NJ.

Olatoye, O & Araloyin, F 2011, “An analysis of real estate consumers’ perception of service quality in estate agency practice in Lagos metropolis, Journal of International Economics Nigeria,” vol. 3 no. 3, pp. 139-145. Web.

Oliver, RL 1980, “A Cognitive model for the antecedents and consequences of satisfaction,” Journal of Marketing Research, vol. 17, pp. 460-469.

Pidd, M & Robinson, S 1998, “Provider and Customer Expectations of Successful Simulation Projects,” The Journal of the Operational Research Society, vol. 49, no. 3, pp. 200-209.

Shenhar, A, Dvir, D, Levy, O & Maltz, AC 2001, “Project Success: A Multidimensional Strategic Concept,” Long Range Planning, vol. 34, no. 6, pp.699-725.

Shenhar, A 1997, “Mapping the dimensions of project success,” Project Management Journal, vol. 28, no. 2, pp. 5-13.

Silverman, D 2010, Doing qualitative research: A practical handbook, Sage, Los Angeles.

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