Executive level capital project decision making: rational or rationale?

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dc.contributor.advisorJergeas, George
dc.contributor.authorChenger, Denise T.
dc.date.accessioned2017-12-18T22:35:52Z
dc.date.available2017-12-18T22:35:52Z
dc.date.issued2012
dc.descriptionBibliography: p. 211-219en
dc.description.abstractThe Project Management Institute estimates the current annual global investment in all capital projects and infrastructure is $12 trillion US, yet we have very little information on how and who initiated these investment decisions. Further, despite the creation of numerous programs and processes aimed at improving project success, completing projects on time and within budget still seems to elude project participants. Interviews were conducted with 21 executives in the upstream oil and gas industry to provide insight into how high profile capital project decisions were made. While capital projects were thought to be initiated by managers and follow a stage-gate process or are an output of the strategic planning process, a key finding is that these major projects were independently and intuitively conceived either by the CEO alone or by the CEO and other executives or board members. Four decision-making paths were modelled based on the type of opportunity: planned, opportunistic, combined, and one followed a rational decision-making process. Formal risk processes were not used in the decision-making process, nor were other resources such as consultants. These findings have implications for existing project management practices, including aligning risk perspectives and how risk is managed, the role of a stage-gate model, how projects are conceived and moved into the planning phase, and how projects are communicated within the executive team and organization. The findings also raise questions regarding broader external implications. If major decisions are made independently by CEOs, how are companies ensuring our corporate leaders are trained to make good decisions, as major projects not only impact the organization but also affect the communities in which the company operates? This research provides some valuable insight into how executives perceive risk, equity markets, organizational readiness, project opportunities, and their perceived role in projects. This helps to prepare the expectations of project managers and others in organizations who are craving for more face time and insight into the strategic process as well as project planning and execution.
dc.format.extentxiv, 225 leaves : ill. ; 30 cm.en
dc.identifier.citationChenger, D. T. (2012). Executive level capital project decision making: rational or rationale? (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/4976en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/4976
dc.identifier.urihttp://hdl.handle.net/1880/105977
dc.language.isoeng
dc.publisher.institutionUniversity of Calgaryen
dc.publisher.placeCalgaryen
dc.rightsUniversity of Calgary graduate students retain copyright ownership and moral rights for their thesis. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.
dc.titleExecutive level capital project decision making: rational or rationale?
dc.typedoctoral thesis
thesis.degree.disciplineCivil Engineering
thesis.degree.grantorUniversity of Calgary
thesis.degree.nameDoctor of Philosophy (PhD)
ucalgary.item.requestcopytrue
ucalgary.thesis.accessionTheses Collection 58.002:Box 2104 627942974
ucalgary.thesis.notesUARCen
ucalgary.thesis.uarcreleaseyen
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