Exploiting Opportunities in the Uncertainty Management

Abstract:The uncertainty management theory has become well established over the last 20-30 years. However, the authors suggest that it does not fully address why opportunities often remain unexploited. Empirical studies show a stronger focus on mitigating risks than exploiting opportunities. This paper therefore addresses why so few opportunities are explored in large projects. The theory claims that risks and opportunities should be equally managed in the same process. In two surveys, conducted in six (private and public) companies over a four-year period, project managers stated that uncertainty management is about managing risk and opportunities. However, two case studies from 12 projects from the same companies revealed that all of them had their main focus on risks, and most of the opportunities were left unexploited. We have developed a theoretical explanation model to shed light on this phenomena. The concept is a reflection based on findings from our empirical data up against current project management, uncertainty, risk and stakeholder literature. Our model shows that the threshold for pursuing a potential opportunity is high. If a potential opportunity should be considered, it must be extremely interesting, since it may require contract changes, and the project must abandon an earlier-accepted best solution.

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“…Table 2. Threats and opportunities in the planning and execution phase of public sector projects [47]. …”

Section: Findings: Case Studiesmentioning

confidence: 99%

Value of Uncertainty: The Lost Opportunities in Large Projects

Johansen

Eik-Andresen

Landmark

et al. 2016

Administrative Sciences

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“…For the further research, the frequency under each management methods is showed, and merely reflects how many times to appear. [01], [03], [04], [06], [07], [08], [09], [10], [12], [13], [14], [15], [16], [19], [21], [22], [25], [29], [30], [31], [32], [34] [22], [25], [29], [30], [32], [34], [40].…”

Section: Sp1 ---Several Main Types Of the Management Methods During 19mentioning

confidence: 99%

“…[02], [03], [04], [05], [06], [08], [12], [20], [23], [24], [25], [26], [27], [28], [29], [30], [32], [33], [34]…”

Section: Mm04 Uncertainty Managementunclassified

“…As for the frequency, the Table 3.2b also shows the number of each element. [01], [04], [06], [07], [08], [09],[1 0], [12], [13], [14], [15], [16], [18], [21], [22], [25], [27] Handling historical information (Frequency:27) [01], [02], [04], [06], [07], [08],[0 9], [10], [12], [13], [14], [15], [16], [17], [18], [21], [25],[2 7], [29], [30], [31], [32], [34] [07], [08], [22], [25], [27], [29] [02], [07], [08], [11], [17], [25], [27], [29], [30],…”

Section: Sp2 ---How To Improve the Strategy Formulationmentioning

confidence: 99%

“…[02], [04], [08], [16], [17], [23],[2 5], [27], [28], [29], [30], [32], [33], [34], [40] Formulating opportunity management planning (Frequency:7)…”

Section: Sp2 ---How To Improve the Strategy Formulationmentioning

confidence: 99%

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Identifying a Better Management Method in Project Management Practice Under Uncertainty Circumstances: A Systematic Literature Review

Pang¹,

Cheok²

2019

Proceedings of the 9th Business &Amp; Management Conference, Prague

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The aim of this paper is to propose a better management method of the practice under different circumstances for formulating strategy in project management of construction industry. The empirical data were absorbed from 40 studies related to project management between 1997 to 2017 by using Systematic Literature Review (SLR) approach. Based on these data, the researcher analysed and identified the better management methods: the uncertainty management, and also found some opportunities and gaps of further research. In conclusion, a better management method for project management under uncertainty circumstance may be able to enhance the strategy formulation of project management.

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Managing Risk and Opportunities in Complex Projects

Rolstadås

Johansen

Bjerke

et al. 2019

IFIP Advances in Information and Communication Technology

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HAL is a multi-disciplinary open access archive for the deposit and dissemination of scientific research documents, whether they are published or not. The documents may come from teaching and research institutions in France or abroad, or from public or private research centers. L'archive ouverte pluridisciplinaire HAL, est destinée au dépôt et à la diffusion de documents scientifiques de niveau recherche, publiés ou non, émanant des établissements d'enseignement et de recherche français ou étrangers, des laboratoires publics ou privés.

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Exploiting Opportunities in the Uncertainty Management

Cited by 17 publications

References 6 publications

Value of Uncertainty: The Lost Opportunities in Large Projects

Value of Uncertainty: The Lost Opportunities in Large Projects

Identifying a Better Management Method in Project Management Practice Under Uncertainty Circumstances: A Systematic Literature Review

Managing Risk and Opportunities in Complex Projects

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