The success of most complex projects relies on the participation of several levels of contracting / subcontracting companies. These companies may be providing services, equipment / materials, or a combination. In this scenario, each participating company would typically have a Project Manager representing them and each Project Manager would be managing the constraints (Scope, Cost, Schedule, Resources, Quality, Customer Satisfaction) in a manner that benefits the company that they represent.
A Project with multiple companies / Project Managers is ripe for conflict due to a constant tug-of-war between the different companies. Many of these conflicts can be reduced once one attempts to understand the constraints seen from different perspectives.
Let's take a generalized example of a project in which three companies are participating.
The Project
Company A needs to upgrade their facilities by installing a particular type of equipment and is purchasing this equipment from another company.
Company B manufactures this equipment and is selling it to company A.
Company C has been hired by company B in order to install / deploy this equipment.
Scope
Company A sees the scope of this project as 'whatever needs to be done to complete this upgrade succesfully'. Company A has little incentive to manage scope.
Company B sees the scope of this project as 'the delivery of equipment & services as purchased by Company A in support of this deployment'. They will keep a Hawk's eye on the scope of this project and they have little incentive to do anything extra.
Company C sees the scope of this project as 'the delivery of services as purchased by Company B'. They will only perform services as guided by company B and they have even lesser incentive to do anything extra.
Cost
Company A's cost includes everything they pay company B in order to deliver the equipment & support services. They need to have a very large budget and they will only recoup their cost (in most cases) after some time has passed and their customers have used their upgraded equipment for some time.
Company B's cost is whatever they pay company C in order to perform their services plus any operational overhead to support the project. Their costs are mostly recovered (depending on how the payment terms are written in the contract) as soon as equipment & services are delivered.
Company C's cost is based upon the time & materials spent on performing the services required by company B. Company C's costs are recovered mostly (again depending on how the payment terms are written in the contract) upon completion of services.
Schedule
Company A, if there are no references to timelines in the contracts, would want all equipment / services delivered immediately, and will drive company B & company C to do so.
Comapny B's schedule will mostly be dependent upon the availability of equipment that they manufacture & is being purchased by company A.
Company C's schedule will be dependent upon the availability of materials & manpower needed to complete the services purchased by Company A.
Resources
Company A, since having purchased equipment & services from company B will not want to increase their cost further by assigning many more resources to this project. They will only assign resources that they deem absolutely necessary for this project.
Company B will supply the resources necessary to support the delivery of equipment to company A but will expect company C to supply resources needed for delivery of services.
Company C will supply the resources necessary to support the services purchased by company B, but will make no effort to increase their cost by supplying extra resources.
Quality
Company A expects the project to be delivered with good quality.
Company B expects company A to define quality metrics for it to deliver good quality.
Company C expects company B to define quality metrics for it to deliver their services with good quality.
Customer Satisfaction
Company A's customers are all the potential users of the eqipment being deployed by Company B.
Company B's customer is company A and it will work toward their satisfaction.
Company C's customer is company B but it needs to work towards the satisfaction of company B & company C.
© 2008 Saad Farooqi
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