Professional Documents
Culture Documents
Formative APM On Hilti's Digital Transformation
Formative APM On Hilti's Digital Transformation
I hereby declare that I have read and understood BPP’s regulations on plagiarism and that
this is my original work, researched, undertaken, completed, and submitted according to the
requirements of BPP School of Business and Technology.
The word count, excluding the contents table, bibliography, and appendices, is
5018 words. Student Reference Number: Date:
By submitting this coursework you agree to all rules and regulations of BPP regarding
assessments and awards for programs. Please note, that submission is your declaration
you are fit to sit.
BPP University reserves the right to use all submitted work for educational purposes and
may request that work be published for a wider audience.
BPP School of Business and Technology
Table of Content
s
BPP Coursework Cover Sheet.............................................................................................................1
Introduction...............................................................................................................................................3
A. Project Selection and Portfolio Management..................................................................................3
Concepts and Differences between Projects, Programs, and Portfolios...................................................4
Challenges in Portfolio Management.......................................................................................................5
B. The Organizational Context.................................................................................................................7
C. Project Governance............................................................................................................................10
Roles and Responsibilities of Key Stakeholders....................................................................................11
Board of Directors' Impact on the Project..............................................................................................12
D. Leadership...........................................................................................................................................13
The Role of the Project Champion and Project Sponsor........................................................................14
E. Advanced Planning and Scheduling......................................................................................................16
F. Managing and Leading Change.............................................................................................................18
Conclusion................................................................................................................................................20
Introduction
This report is organized to focus on the critical facets of project screening and selection and
project governance. Furthermore, it inspects and manages selection for Hilti Group and gives
universal recommendations for deliberation.
A. Project Selection and Portfolio Management
Hitli Company’s strategy is “Value creation through leadership, built on differentiation and
direct customer relationships.” This strategy of Hilti is beneficial for Project screening and
Selection process. According to Keken et al., (2022) Project screening in the environmental
context involves researching and analyzing the data within an investment project document to
ascertain whether the proposed project necessitates an initial environmental examination or a
full-scale environmental impact assessment. Noble and Nwanekezi (2017) stated that Project
screening process helps to determine the appropriate level of environmental assessment required
for regulatory compliance and sustainable development. Furthermore, Nicholas and Steyn (2020)
defined that Project selection is a systematic process wherein various project ideas are evaluated,
and the project with the highest priority is chosen for further development. During this stage,
projects exist as preliminary suggestions, and selection is typically based on concise project
descriptions. Project selection process is used to identify and prioritize projects that align with
organizational goals and exhibit the most promising potential for success (Anantatmula and Rad,
2018).
Hilti Company’s strategy of “value creation through leadership and direct customer
relationships” aligns with the comprehensive project selection method AHP as it ensures
sustainable development and regulatory compliance in projects like the adaptation to Salesforce.
The Analytical Hierarchy Process (AHP) is a method that helps people make decisions
by considering different factors and how important each one is. Chen and Huang (2023) consider
it good because it can handle many criterias and their importance. Similarly, Basar (2018) said it
gives managers a structured way to compare choices. Moreover, Della Spina (2020) mentioned
that in Hilti's situation, AHP used comparisons between pairs of things to look at aspects like if a
project is doable and if it fits with the overall plan. Furthermore, Liu, Eckert and Earl (2020)
high points AHP's aptitude to handle particular conclusions in decision-making. Given the
multinational landscape of Hilti's workforce, AHP's agility in assimilating varied observations
makes it an appropriate selection for certifying a comprehensive project selection method.
The Hilti Group's strategic goal of value formation through leadership, discrepancy, and
direct customer associations is complicatedly linked to its decision to drift from SAP to
Salesforce (Hilti Corporation, 2023). This step line up with the company's assurance to customer
relationships and discrepancy. According to Nayyar (2019) salesforce, being a cloud-based CRM
structure, improves direct customer engagement, providing tools for modified communications
and better considerateness of customer requirements. This supports the distinction strategy by
providing advanced resolutions and a superior customer involvement. The TOWS matrix is
applied here to highlight the opportunities (O) offered by Salesforce implementation in
improving customer relationships and the strengths (S) of Hilti's leadership and revolution in the
construction segment.
Strength-Opportunity (SO) Strategy:
Utilize the global presence and strong brand reputation to maximize the opportunities offered by
Salesforce. This involves emphasizing the advantages of the new CRM system in marketing
efforts and leveraging it to enhance customer relationships globally (Amoako and Okpattah,
2018.).
Weakness-Opportunity (WO) Strategy:
Address weaknesses in the transition process by investing in comprehensive training programs
and change management. This strategy focuses on turning the transition challenges into
opportunities for workforce development and improved operational efficiency (Fernandez and
Rainey, 2017).
Strength-Threat (ST) Strategy:
Leverage the company's strengths to mitigate threats. The established global network and brand
reputation can be used to overcome potential disruptions during the migration process, ensuring a
smoother transition (Bharadiya, 2023).
Weakness-Threat (WT) Strategy:
Proactively address weaknesses to minimize potential threats. This involves addressing any
vulnerability in the transition process, such as resistance to change, through targeted strategies
that prioritize employee engagement and communication (Cho et al., 2020).
Functional Organizational Structure:
In a functional structure, employees are grouped based on their specialized skills or functions
(e.g., marketing, finance, IT). The reporting lines are clear, and individuals report to functional
managers. This structure promotes efficiency within each department but may hinder
communication and collaboration across functions.
Matrix Organizational Structure:
Matrix structures combine elements of both functional and projectized structures. Employees
have dual reporting relationships, typically to both a functional manager and a project manager.
This structure facilitates better project coordination and resource utilization but may lead to
power struggles and role confusion.
Projectized Organizational Structure:
In a projectized structure, the organization is structured around projects. Project managers have
significant authority, and team members may report exclusively to them during the project's
duration. This structure enhances project focus and flexibility but can result in inefficiencies
when resources are not fully utilized between projects.
Aguilar Velasco and Wald (2022) stated that the main variances among functional,
matrix, and projectized organizational structures falls in the dispersal of consultant and the
degree of project management impact. In a functional structure, employees are assembled by
their specialty, while a matrix structure associate practical and projectized tactics Kiruba et al.,
(2020). Taking into account the transformative nature of Hilti's software relocation, a matrix
organizational structure will be appropriate. According to Bergstedt (2019) Matrix structure
permits for a balance between functional specialization and project-specific necessities.
Moreover, Harrison and Lock (2017) suggested that the CEO should reflect a matrix structure
with a robust project management office (PMO) to certify direction and effectual reserve use.
Organizational culture pointedly effects project management (Galvin et al., 2021). In
Hilti's project scenario, two facets are notable. Initially, a culture that holds communication and
collabration will enable sander approval of the new Salesforce system. Reassuring a culture of
risk tolerance and innovation is vital during the re-skilling procedure (Rangraz and Pareto,
2021). Furthermore, Lemos (2017) evaluated that a collective and communal-friendly culture is
vital for multi sector collaboration in a matrix structure. A culture that values open
communication and knowledge sharing can lessen probable challenges ascending from practical
repository (Ayatollahi and Zeraatkar, 2020).
1. Communication and Collaboration:
According to Arditi, Nayak and Damci (2017) Organizational culture significantly influences
communication and collaboration within a project. Newman and Ford (2021) stated that in a
culture that values open communication and collaboration, team members are more likely to
share ideas, address issues promptly, and work together effectively. Conversely, Henry,
Eshleman and Moniz (2018) analyzed that in a culture that fosters hierarchy or stifles open
communication; information may be siloed, leading to misunderstandings, delays, and potential
project failures. The organizational culture sets the tone for how team members interact, share
feedback, and navigate challenges, directly impacting the project's overall efficiency and success
(Ahmad and Karim, 2019).
2. Risk Tolerance and Innovation:
The organization's culture shapes its tolerance for risk and innovation, affecting how the project
team approaches challenges and explores new ideas (Rubin and Abramson, 2018). According to
Guinan, Parise and Langowitz (2019) in an inventive culture that boosts risk-taking, project
managers and team members are more probable to experiment with inspired solutions and
acclimate to changing situations. On the contrary, Maleka (2023) reported that a risky culture
may repress innovation, heading to conventional decision-making and confrontation to change.
Understanding and steering the organization's cultural attitude on risk and innovation is vital for
operational project management. It can influence the project's ability to acclimate to unexpected
situations, adopt new technologies, and stay modest in vibrant environments (Zaman, Nawaz and
Nadeem, 2020).
C. Project Governance
There are different types of project governance frameworks such as PMBOK (Project
Management Body of Knowledge) and the three pillars of project governance. PMBOK is a
framework that is used to outline best practices that are used in project management (Simonaitis
et al., 2023). Moreover according to Portny and Portny (2022) PMBOK is used by the project
managers to get help for their projects in order to understand and apply industry-standard
methodologies. Whereas Three pillars framework is used for managing projects and to recognize
how the project is set up, the people involved, and the information used (Clayton, 2022). The
Hilti Group is using these three pillars to guide their Salesforce execution project.
1. Structure Pillar:
In simple words Volberda et al., (2021) said that to make projects work well, it is important to
set up a good plan and have strong leaders. For example, in Hilti's Salesforce project, a special
team was made just for the project, which is a good way to do things. This helps the team stay
focused, talk clearly, and make sure that everyone is working towards the company's big goals
Azanha et al., 2017). It is also important to have a clear plan for the project, like knowing who
does what and who reports to whom. Having regular check-ins and meetings with top
management is smart because it helps everyone stay on the same page and make good decisions,
as (Sroufe, 2017).
2. People Pillar:
The people part knows it is important to get the right group together. This group should have
different skills, like top bosses, IT people, marketing folks, and salespeople. Making sure
everyone knows what the project is about and what they need to do is super important for
working together and reaching goals (Martens and Carvalho, 2017).
Gregory et al. (2022) suggested that to make sure everyone understands the project goals, it is a
good idea to spend time and money on good training programs for new team members.
Moreover, it is important to create a culture where people work together well, talk openly, and
share what they know. Marasi (2019) mentioned that doing fun team-building activities regularly
can help team members become closer and work together better.
3. Information Pillar:
The information pillar says that it is super important to have the right info on time for good
decisions. Making sure everyone can get the important info, like rules, goals, progress, and tasks,
is key for projects to work well (Aragonés-Beltrán et al., 2017). Lee et al. (2021) recommend
using strong information systems so people can check project data in real-time. Also, Lim and
Greenwood (2017) think it is smart to have regular ways to talk and report to keep everyone in
the loop while keeping the project info safe with good security measures.
Roles and Responsibilities of Key Stakeholders
1. Project Manager:
In making a project successful, the person in charge, called the project manager, is super
important (Cabral, 2017). They have to make sure the project fits with the big plans, handle
resources well, and watch over everything happening regularly. Martens and Carvalho (2017)
also said project managers are like the main coordinators, making sure the project goes where it
is supposed to. Niederman (2021) talked about the challenges of project managers job. They
need to make hard decisions, especially when things get complicated or there are problems. Also,
they have to balance different things like managing teams, handling many tasks at once, and
making sure everyone talks well (Chofreh et al., 2019).
2. Project Board (Board of Directors):
According to Mitchell (2021), the project board, which is usually made up of important people
like the Board of Directors, is in charge of giving the project a clear direction, supporting big
achievements, and making sure everything fits with what the organization wants to do.
Hoffmann, Ahlemann, and Reining (2020) also said that the Board of Directors guides the
project's big plan, looks at important decisions, and makes sure the project matches with what the
whole organization is trying to achieve. The project board faces challenges like needing to
predict the future and make good decisions. Making sure the project matches the organization's
goals, and thinking about possible problems or tricky situations, needs a good understanding of
both the project and the organization (Buehring and Bishop, 2020).
3. Project Stakeholders:
El Khatib et al. (2020) noted that people participating in a project, are heavily influenced by
it. These include workers, customers, and suppliers and they have important jobs. They
communicate valuable ideas, endorse changes, and innovate new methods. Similarly, Davis
(2017) say that these people are really important for making the project work well. They bring
different ideas, make sure that everyone stick to the company's values, and are willing to change
when needed. According to Lewis (2019), people might have a hard time with change. This
is because either they do not want to change or have different interests, or do not understand each
other. It is emphasized by Urbinati et al. (2021) the significance of communication,
collaboration, and strategizing to address changing needs of all team members in a project, even
when their desires diverge.
Board of Directors' Impact on the Project
Hilti's software migration programs are overseen by the Board of Directors, who plays a crucial
role in making important decisions. According to Manita et al., (2020), decision-making for the
accomplishment of the project is truly important. Also, Manita et al., (2020) stated that it
is important to manage capital well and use innovative technology. The leaders claimed that they
will use more technology for the project. This exemplifies the company's preparedness to
embrace advanced technology and compete with other businesses. One more study by (Demirel
et al., 2022) presented that when leaders show consideration to vital things and make choices
quickly, it can have a giant influence on the project. In the interim, Bajere et al., (2017) realized
that when leaders do not have sufficient conferences or do not comprehend the project
objectives, it results in delays. Also when there are not sufficient capitals, it can initiate
difficulties with the project. If the leaders do monitor well, it can make the project go slower and
cause difficulties. It is really important for Hilti's software migration to work well that the
leaders provide strong support.
The board needs to oversee all activities, ensure alignment with project objectives, and maintain
regular communication to enhance performance and achieve improvement. Studies say that
having a strong team in charge is really important for the project to succeed (Demirel et al.,
2022). Talking regularly and checking how things are going can help solve problems and make
sure the board keeps supporting Hilti's software move project.
D. Leadership
Hayes (2017) explained the situational leadership in an easy way. In simple words, situational
leadership means that being a good leader depends on the situation. Henkel, Marion, and
Bourdeau (2019) said that for a leader in a project to do well, they need to change how they lead
based on what the team and project need. This is like being flexible in how you lead to make sure
things go well. Furthermore, Tortorella and Fogliatto (2017) stated that the Situational
Leadership Model identifies four leadership styles: directing, coaching, supporting, and
delegating, and suggests that leaders should adjust their approach based on the team's
development level and the nature of the task.
In the initial stages of the Hilti Group's Salesforce implementation project, the project leader
adopts a "Directing" style. In the beginning, when the team is just starting to use the new
Salesforce system, they might not know much about it but are really committed to learning
(Johnston and Marshall, 2020). In their research, Saleem et al. (2020) found that the
leader carries out a vital function. The team receives assistance from the leader through
instructions, clarifying individual roles, and ensuring understanding of the objectives and
processes.This is extremely vital in the early stages when the team is still working to grasp
everything.
The leader adopts a new "Coaching" method as the team gains knowledge about
Salesforce. Johnson and Hawk (2020) stated that the boss provides clear guidance and offers
strong support to the team. Sousa and Rocha (2019) found that in this style, team members get
better at their tasks, but some may be more committed than others. The leader helps by giving
advice, listening to worries, and promoting teamwork. Also, Forlenza et al., (2018) said coaching
is important for dealing with problems, getting better at skills, and making a friendly space
where team members feel okay asking for help.
Schermerhorn, Bachrach, and Wright (2020) found that when the group working on a project
gets better at using Salesforce and feels more sure about it, the leader of the project starts to
adopt the “Supporting” style. At this point, the team members show they are good at their tasks
and are committed in different ways. According to Lin in 2017, the leader pays more attention to
being supportive, helping the team members do things on their own, and telling them to make
their own choices. This way of leading makes the team feel stronger and more excited to work
together.
At the end of the project, when the team is doing really well and is super committed, the leader
lets the team members do their thing. This is called the "Delegating" style. This is like giving
them more freedom and letting them handle routine stuff in the project. According to Buba and
Tanko (2017), this helps the team keep going strong. Ghazzawi, Shoughari, and Osta (2017) say
that adjusting how someone lead based on the situation makes the team do better and feel
happier. Also, Raguž and Zekan (2017) found that changing how one lead to fit the situation
helps the leader be more dynamic and responsive to what the project and team need. For Hilti's
Salesforce project, the situational leadership model is a good guide for the leader. It helps them
figure out the best way to work with the team and make the project successful, as mentioned by
(Lintz, 2020).
The Role of the Project Champion and Project Sponsor
Project Champion:
According to Patterson, Dinkin and Champion (2017), a project champion is a person who assists
the manager in obtaining resources and team mobilization. Project champions help everyone stay
committed and motivated. Also, a champion often plays a crucial role in navigating
organizational barriers. They leverage their influence to secure resources, address concerns, and
ensure that the project is not impeded by bureaucratic obstacles (Wilson and Mergel, 2022).
Martiskainen and Kivimaa (2018), emphasizes that the project champion's role extends beyond
initial project approval. They provide continuous support, championing the project's cause during
challenges and ensuring sustained commitment from key stakeholders.
Project Sponsor:
Zwikael and Meredith (2019) evaluated that a project sponsor is typically a senior executive who
ensures that the project aligns with the organization's strategic goals. They are responsible for
approving the project, providing necessary resources, and overseeing its progress. Kerzner
(2022) emphasized that sponsors hold decision-making authority, especially regarding major
project issues and scope changes. Their role is pivotal in steering the project in line with
organizational objectives. Sponsors actively engage in risk mitigation, helping the project
navigate uncertainties and providing guidance on strategic decisions (Olaniyi, Olabanji and
Abalaka, 2023).
For a project with evolving requirements, a dynamic environment, and a need for continuous
customer involvement like Hilti, Agile is recommended. Agile's adaptability aligns well with the
dynamic nature of many modern projects. The Agile Manifesto, introduced by Beck et al. (2001),
emphasizes values such as customer collaboration, responding to change, and delivering working
software, reflecting the core principles of Agile methodology. On the other hand, the Waterfall
model has been criticized for its inflexibility in handling changing requirements. Boehm (1988)
discusses the challenges of managing changes in a sequential model like Waterfall, emphasizing
the importance of understanding and freezing requirements early in the project.
Critical Path vs. Critical Chain Scheduling:
Critical Chain Scheduling is recommended for the Hilti project, primarily because it addresses
the limitations of Critical Path Scheduling, particularly in resource management. Critical Chain
Scheduling is aligned with Goldratt's Theory of Constraints, which emphasizes the impact of
resource constraints on project schedules. In "Critical Chain," Goldratt (1997) argues for a
paradigm shift towards focusing on resource constraints to optimize project outcomes. According
to Von Rothkirch and Ejderyan (2021) Buffers in CCS are actively managed and protected,
allowing for better control of project uncertainties. Furthermore, few researchers Sarkar, Jha, and
Patel (2021) talk about buffer management in projects. They say it helps keep projects on track.
Another study by Roghanian, Alipour, and Rezaei (2018) agrees that using Critical Chain
Scheduling is better for using resources effectively. McCall et al. (2019) suggest that Critical
Chain Scheduling helps avoid problems like having too much work for resources or delays
because there are not enough resources. The tool helps to use things wisely by considering how
tasks are connected and how much stuff is available. This can make plans for projects more
sensible and doable. Syed et al. (2022) mention that putting and handling buffers in Critical
Chain Scheduling helps deal with uncertainties early on. This stops problems from spreading and
keeps the project on schedule. Critical Chain Scheduling focuses on finishing the whole project
instead of just individual tasks. Bao, Zhang, and Thomas (2019) also support this approach,
saying it is good for achieving overall project success.