The paper “ Planning and Management of Perth Arena - Visualizing and Mapping Stakeholder Influence, Governance Problems and Solutions” is a meaty example of a case study on management. It is worth noting that the Perth Arena project will not only be delivered behind schedule but will also cost over three times more than what had been budgeted. This resulted from some governance problems outlined below; Description of the Benefit to be Achieved Description of Current Situation/ Performance of the Business Process Target KPI Measure after the Planned Change Triggers or events that will cause the Benefit to be Realised Type of Contribution to the Business Strategic and Corporate Objectives and outcomes Supported by this Benefit Project Name: The Perth Arena Patronage and Revenue -The Arena is nearing completion.
This implies that there is no data available regarding patronage and revenue. However, it is estimated that benefits regarding to patronage and revenue will flow on completion of the Arena. -High level of quality standards of services and facilities provided -being able to offer a high level of customer satisfaction -Achieve at least 1 million visitor numbers annually -achieve at least $8 million annually in terms of revenue -High level of customer visitor satisfaction -achieve at least 1 million visitors annually. -achieve at least $8 million in terms of revenue -achieve profits of between $3.5 million and $4.5 million annually -Making the Path Arena a destination of choice able to attract both local and international visitors. Attracting new events -On opening, it is hoped that Path Arena will herald a new era of access to international concert tours and the world’ s best entertainers - being able to attract high-quality venue facilities in a bid to attract top performance -the number of top artists and concerts that will be hosted in the venue -Investing in high-quality Arena facilities -Organizing top gear concerts and events -Top gear marketing initiatives -We will be able to attract at least half of the world’ s top concerts and performances annually to the venue - To become the world’ s leading concerts destinations and hence a leading tourists destination. Retaining the Hopman cup -There had been rumors of relocation of the Hopman cup outside Perth due to lack of venue.
However, the management has been able to reverse this and the new Perth Arena is expected to be the new host of the cup -completion of the Path Arena on time -Installation of high-quality facilities in the Arena -Increased marketing efforts geared towards increasing the number of audience -Completion of the construction of the Perth Arena on time -Being able to install very high quality facilities in the Arena necessary for hosting the Cup. -Top gear marketing initiatives that will lead to an increased number of visitors and hence audience for the events -By hosting the Hopman cup, we expect to retain the $132,000 worth of the cup to the Western Australia economy.
This is also a big boost to the local tourism industry -Retaining the $132,000 worth of the Hopman cup in Western Australia Public support -The completion of the project has been bedeviled by challenges including under budgeting both in terms of time and finances.
As such, its completion will give us a chance to gain back the public support so that it can achieve its establishment objectives. (Perth Arena, 2014) -The number of visitors /audience -the number and quality of performances and concerts -the level of revenue attained -Timely completion of its construction -increased marketing activities so that we can attract the maximum number of audiences -installation of high-quality facilities -offering a high-quality level of services -By regaining public support, the project is expected to realize a maximum of $200,000 annually in terms of revenue both directly and indirectly -attainment of $200,000 annual revenue both directly and indirectly National and International Recognition -The project is nearing completion but it has been much publicized both nationally and internationally and it is expected that its completion will attract interest and recognition both nationally and internationally -The number of visitors /audience hitting the 1 million mark annually -The percentage of international arrivals being more than 10% of total visitors. -Increased marketing activities both nationally and internationally -installation of high quality arena facilities - offering high-quality services --This is expected to result in an overall revenue of $200,000 annually -attain a revenue of $200,000 annually Placemaking benefits -on completion, the path Arena is expected to become a landmark building for Perth owing to its bold and striking design -the high quality design in which it has been constructed (Peter, K& , Kim, 2009) -the high-quality design is expected to be of interest to many who will come across it -this is expected to result in more visitors to Perth -Increased number of visitors to Perth The project was characterized by insufficient scoping and planning hence rendering the original cost estimate and opening date unrealistic.
It should be noted that key decisions on the project during related negotiations altered the planned risk allocation between the contractor and the state increasing the risk to state and hence project delays and cost increases. This is despite there lacking sufficient systematic impact analysis, alternatives considerations, legal advice or external scrutiny. There was no adequate appropriate planning, reporting, and monitoring while significant changes to the project as well as resulting risk were not communicated to the minister and hence cabinet thus leading to uninformed decisions. DHW also failed to implement the project management and governance arrangements necessary for controlling such a project resulting in inadequate transparency, oversight and accountability (WA Sports center).
Further, DHW failed to transfer responsibility for completing the arena design to the contractor as per the procurement strategy hence the state retained higher risk than intended. This is in addition to accepting prices containing significant uncertainties meaning relying on them to achieve the contracted price was highly optimistic and high risk which led to constant budget increases.
DHW also failed to enter into contract negotiations with clear objectives or a plan defining the acceptable outcomes. For instance, they accepted a revised offer that did not transfer design responsibility to the contractor. Furthermore, key risks including changes in contract type and pricing uncertainties were not communicated to the minister leading to uninformed decisions. There lacked adequate governance, oversight, administrative and project management skills while failing to follow normal processes with the project team being inadequately resourced.
This was worsened by poor record-keeping that contravened the state records act of 2000. Suggested solutions to the above governance issuesThe stakeholders in the project ought to have put in place governance structures and project management systems that reflect the scale and project complexity. They should have ensured that the government is given full and complete advice on the status of the project, decisions and risks. There was also need to seek appropriate legal advice while establishing and maintaining adequate records in accordance to state records act 2000. There is need for the department of treasury and finance to exercise more active oversight of major projects while ensuring consistent application of the strategic asset management framework to the project (Lynda, and Derek, 2005).
This should have ensured that the project is only funded when well-scoped and planned while timing and budgets are realistic. In addition, the risks at each stage of the project should have been identified and addressed. There was also need for transparency and adequate communication at all project stages to support informed decision making regarding the project.
Perth Arena, 2014, What we thought would kill us, Committee for Perth.
Peter, K&, Kim, M2009, New arena doubt on cost, timing, Retrieved on 3rd January 2015, from;
WA Sports center, 2012, Annual report, Retrieved on 3rd January 2015, from;
Lynda, B&, Derek, H2005, Visualizing and mapping stakeholder influence, Management Decision, vol. 45, no. 5, pp. 649.
Western Australian Auditor General’s Report, 2010, The planning and management of Perth Arena, Western Australia Auditor General.