This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Referencese
See Ulrich H. (1968/1970, 1984, 1978/1987); see further Rüegg-Stürm 2003 for the latest version of the St. Gallen Management Model.
2001a. See also 1999a, 2001c, 2002 and 2005.
2005.
Ulrich H. 1984: 20.
Rüegg-Stürm 2005: 10.
Rüegg-Stürm 2005: 10.
Rüegg-Stürm 2005: 10. As a case in point, see the ‘management vacuum’ in Chapter 1, illustrating the ‘dissolving’ effect, or how a development project risks falling apart without appropriate managerial influences.
SDC 2002.
Ulrich H. 1984: 50 (translation Renz). See also Rüegg-Stürm 2003, 2004.
Rüegg-Stürm 2003: 17 (translation Renz).
Ulrich H. 1984: 20 (translation Renz).
1995: 31 (translation Renz).
Malik & Probst 1984: 105. See also Rüegg-Stürm 2003: 19f.
Malik & Probst 1984: 105.
See Mann 2003 who views corporate governance as systems.
See Ulrich H. (1968/1970, 1984, 1978/1987); see further Rüegg-Stürm (2003, 2005) for the latest version of the St. Gallen Management Model.
See Ulrich H. 1984: 49ff.
Economies, for instance, are closed systems as long as their “entanglement with other spheres and appearances of the human society is not considered” (Ulrich H. 1984: 21).
Ulrich H. 1984: 59 (translation Renz).
See also Ulrich P. 2001a.
SwissNGO 2005: 3.
See Footnote 202.
In particular Rüegg-Stürm 2003, 2004, 2005. For a broader understanding, see also Ulrich H. & Krieg 1972, Ulrich H. 2001, Bleicher 1991, Gomez 1998, Müller-Stewens & Lechner 2005. For an overview of the development of the St. Gallen Management Model, see Schwaninger 2001 and Spickers 2004.
Source Rüegg-Stürm 2005: 12 (development-specific adoption by the author).
Rüegg-Stürm 2005: 11.
Rüegg-Stürm 2003: 22 (translation Renz).
Rüegg-Stürm 2003: 22 (translation Renz).
See Rüegg-Stürm 2003, 2004, 2005 for a detailed description of the different spheres.
Rüegg-Stürm 2005: 17.
The Daily Star, March 26, 2004: 1 carries the headline, “Free fall of law, order mocks government measures.” The escalation of tension that came with the numerous bombings in the second half of 2005 is — very unfortunately — no surprise to the author.
The Daily Star, March 8, 2004: 6. According to the news report, the secretary general’s claim [of producing almost organic shrimps] was immediately refuted by the Swiss Charge d’affaires, who said that there was no place for ‘almost’ with shrimp, which must be ‘fully organic.’
The Daily Star, March 26, 2004: 1.
The Daily Star, March 8, 2004: 5.
The Daily Star, February 8, 2004: 17.
Rüegg-Stürm 2005: 12.
The Daily Star, March 14 & 16, 2004.
Rüegg-Stürm 2005: 22.
Idem.
Peter Eigen, founder of Transparency International, identified ‘relativism’ as one of the “worst liabilities which the western world committed” (speaking at the Sustainability Forum in Zürich on December 8, 2005).
Rüegg-Stürm 2005: 22.
Mäkilouko 2001: 73.
House, Wright & Aditya 1996: 538.
See, for instance, Bachmann 2002.
See, for instance, the five value pairs as outlined by Trompenaars & Hampden-Turner: Universalism vs. particularism, communitarism vs. individualism, neutral vs. emotional cultures, diffuse vs. specific properties, achievement vs. ascription orientation. (2003: 29).
Tibi 1991.
Rüegg-Stürm 2004: 80 (translation Renz).
See Rüegg-Stürm 2005: 54–55.
Rüegg-Stürm 2005: 64.
Malik & Probst 1984: 105.
Gioia & Chittipeddi 1991: 443.
Adapted from Gioia & Chittipeddi, based on their ethnographic study of change management (1991: 443).
Rüegg-Stürm 2005: 28.
See Müller-Stevens & Lechner 2005: 235.
DRIVER Project Document 2004: 8.
The author is aware that in practice the terms ‘vision’ and ‘mission’ are often used interchangeably. It is not the objective of this study to draw a clear separation between the two terms. Using only one of them, however, would deprive us of “the possibilities of revealing differentiation” (Müller-Stewens & Lechner 2005: 236, translation Renz).
Waxenberger 2001: 105 (translation Renz). See also Ulrich H. 2001: 461.
SDC 2004: 4.
Waxenberger 2003: 239. Though ‘project principles’ would be the more appropriate term, it is hardly known. In building on the common terminology I maintain the term business principles. See also Ulrich H. 2001: 461.
Waxenberger 2001: 85 translation Renz. See Ulrich P. 2001c: 45.
Waxenberger 2001: 112 translation Renz.
NZZ 8. Sep. 2005: 3 on the Volcker Report towards the UNO on the investigation of the “Oil for food” program in Iraq. See further Volcker, Goldstone & Pieth 2005.
See AusAID 2005, SECO 2005, Örtengren 2003. See also SDC 1999.
See Kaplan & Norton 1992. For an overview of various scorecard methods, see Müller-Stewens & Lechner 2005: 706 ff. For usage of balanced scorecards in projects, see Fiedler 2001: 69ff. For a critical analysis of BSCs, see also Holmes, Gutiérrez de Piñeres & Kiel (2006). They point out that in government organizations of developing countries “implementation of the [scorecard] method by countries facing so many concurrent challenges would be difficult due to a lack of resources, politicization of public administration, and corruption” (2006: 1).
See SDC 1997 for monitoring on the level of the development project. See also Hilb 1997, 2002 for success-evaluation.
In recent years, worldwide development objectives have been substantially influenced by the capability approach founded by Amartya Sen and Martha Nussbaum (see Sen 1999, Nussbaum & Sen 1993). Therefore, the impact assessment would target changes in capabilities. A case study conducted by Patry (2005) suggests the technical feasibility for assessing capability change.
Rüegg-Stürm 2005: 36.
Rüegg-Stürm 2005: 36. See also Gomez et al. who argue that considering today’s high dynamics Chandler’s rule needs to be extended to “structure follows process follows strategy” (2002: 75). The high process-orientation was also crucial in our project, for which we created a process model, with respect to which all our activities were oriented. See also the characteristics of systemic thinking as stipulated by Hans Ulrich (see Chapter 4.1.3).
See SDC & Intercooperation 1995.
In fact Matta & Ashkenas draw on the insights gained by a major World Bank agricultural project in Nicaragua (See Matta & Ashkenas 2003).
Fuchs 1999: 145 (translation Renz).
Idem.
Fuchs 1999: 146 (translation Renz).
See Ulrich P. & Fluri 1995: 217ff, Thommen 2002: 212f on functional diagrams.
Malik 2002: 295 (translation Renz).
Kupper 2001: 28 (translation Renz).
See for instance Hilb 2005.
For more on board composition, see Hilb 2005: 70ff and Brönnimann 2003: 286ff.
See Hilb 2005: 107f for a list of the main tasks of the chair.
See Hilb 2005: 174ff.
Carter & Lorsch 2004: 178.
Hilb 2005: 140ff.
Hilb 2004: 134 (translation Renz). See further 2005: 142.
I use the term’ sounding board’ with reference to what Carter & Lorsch call “offering advice and counsel to management, especially the CEO” (which they name as one of the three key activities defining the board’s role; the other two “monitoring the company and management’s performance” and “making major decisions”) (2004: 67f).
Hilb 2005: 124ff.
Hilb 2005: 197ff. See also Hilb 1997, 2002 for success-evaluation.
Renz & Weichsler 2005: 15f.
See Crawford 2002.
Schwaninger 2005: 71 (translation Renz).
Idem.
Rüegg-Stürm 2005: 43. See Ulrich P. & Fluri 1995: 36ff, Lattmann 1990.
Idem.
Rüegg-Stürm 2005: 42.
Rüegg-Stürm 2005: 47.
Rüegg-Stürm 2005: 46.
Simple questionnaires, for instance the ten comprehensive questions on board behavior suggested by Carter & Lorsch (2004: 178), may be a good starting point for such reflection. A more sophisticated questionnaire is presented by Hilb (2005: 198f). It has been adapted for nonprofit boards by Renz & Weichsler (2005: 15f).
Ulrich H. 2001: 459 (translation Renz).
Hilb 2005: 82ff.
See Rüegg-Stürm on routinisation through structuring forces 2005: 46ff.
Waxenberger 2003: 235.
Paine 1997: 335 (emphasis Renz).
Idem.
Paine 1997: 335.
Paine 1997: 335.
Ulrich P. 2001a: 286 (translation Renz).
See Habermas 1981a, 1981b.
Ulrich P. 2001a: 94 (translation Renz).
See Ulrich P. 2001a: 57ff.
The importance of an ultimate foundation is known to the author. For instance, the lack of an ultimate rational foundation in Adam Smith’s construct for the standpoint of the impartial spectator is one of the criticisms directed at Smith’s theory of moral sentiment (see Ulrich P. 2001a: 63ff.). The ultimate foundation of discourse ethics, however, is also challenged by Wellmer and Maak, in that discourse ethics may “deprive itself of its moral-practical orientation power [if...] it aims too rigorously at the completion of its procedural ideals” (Maak 2001: 136; translation Renz). What is relevant for this book, however, is that a possible ultimate foundation be independent of cultural or religious rationality; or in Wellmer’s words, “not the completion of sense, but the elimination of non-sense is the principle of moral progress” (1986: 127).
See Ulrich P. 2001a: 57ff.
Teleological, from the Greek telos = target, goal, and Deontological from the Greek deon = obligation. See Ulrich P. 2001c: 45.
Ulrich P. 2001a: 94 (translation Renz).
Idem.
Crocker & Schenke 2005: 28.
See Kirsch 2004, Leisinger 2004, Steinmann 2004, von Cranach 2004.
Ulrich P. 2001a: 78 (translation Renz).
Ulrich P. 2001a: 81 (translation and emphasis Renz).
Ulrich P. 2001a: 82 (translation Renz).
Idem.
See Ulrich P. 2001a: 82ff.
Ulrich P. 2001a: 83 (translation Renz).
See Blickle 1994: 10ff.; see further Groeben, Nüse & Gauler 1990: 3. In fact, discourse ethics is sometimes also called argumentation ethics!
See Palazzo: “The search for consensus [...] must be replaced by the search for the conditions of a reasonable disagreement” (2004: 52; translation Renz).
Habermas 1981: 385 ff. (translation Renz).
Ulrich P. 2001a: 84f (translation Renz).
Ulrich P. 2001a: 86 (translation Renz).
Habermas 1991: 23 (translation Renz).
Ulrich P. 2001a: 87 (translation Renz). We will see later that for the context in which development projects take place a more differentiated concept of recognition is needed. For the moment, the principal guidelines of discourse ethics are outlined.
Ulrich P. 2001a: 87 (translation Renz).
Ulrich P. 2001a: 88 (translation Renz).
Ulrich P. 2001a: 90 (translation Renz).
Ulrich P. 2001a: 91 (translation Renz).
Ulrich P. 2001a: 91 (translation Renz).
See Waxenberger 2001, 2003.
See Ulrich P. 2001a: 92, 97ff, in particular 101: “Ethics provides criticalnormative orientation knowledge and not ‘implementable’ dispositional knowledge — it is not a social technique for a good cause.”
Ulrich P. 2001a: 286 (translation Renz).
See also Maak 1999: 146.
Habermas 1996: 62 (translation Renz).
See Benhabib 1995: 40
1997. See also Honneth 2000, 2003.
1999.
Pless & Maak: 2004: 131.
The roots of the term’ solidarity’ stem from the Latin phrase ‘obligatio in solidum’, meaning a reciprocal financial liability of the individual towards the community and vice versa. The term’ solidarity’ is widely used in ways that lie beyond the scope of this paper (see, for instance, Bayertz 1998: 11). Rather, this paper draws on the usage of solidarity from recognition ethics as described by Honneth and Maak.
Maak 1999. For a detailed description of the term, see Maak 1999: 78ff.
Pless & Maak 2004: 131.
Maak 1999: 99 (translation Renz).
See UNO 1948.
Honneth 1997: 37 (translation Renz).
Pless & Maak 2004: 132.
Pless & Maak 2004: 131. As an aside, Pless & Maak refer to recognition ethics in the context of “building an inclusive diversity culture.” They argue that ‘diversity culture,’ which is currently playing a prominent role in management theory and practice, can only be successful if “built on solid moral grounds.” Current practices of ‘assimilation’ or the focus on strategic diversity policies and processes have led many organizations to be “disappointed in their efforts” to build a diversity culture. International development projects face (not by choice, but by nature) the same challenges of diversity cultures, and hence the inclusion of recognition ethics into the context of this text seems to make a lot of sense.
Pless & Maak 2004: 131.
Paine 1997: 336.
In the terminology of knowledge management, the process model needs to foster single-loop learning, i.e. resolving the situational challenge at hand, as well as double-loop learning, i.e. reviewing the underlying constitutional strategies, structure, and organizational culture (see Argyris & Schön 1978).
Paine 1997: 336.
The model draws upon, and incorporates, several elements of Waxenberger’s organizational model for principle based management (see 2001, 2003).
Waxenberger 2003: 237.
See 3rd guideline of the normative foundation, Chapter 4.3.4.1, or Ulrich P. 2001a: 88.
Paine 1997: 335.
See www.transparency.org. On the ethical problem of corruption, see also Ulrich H. 2001: 322f, Leisinger 1997: 62–83, Stückelberger 2001, Eigen 2003.
Leisinger 1997: 96 (translation Renz).
Arvis & Berenbeim 2003: 9.
TI 2000: xviii, adapted from Caiden 1988.
Ulrich P. & Maak 2000a: 28. See Michelman: “Corruption is the subversion, within the political motivation of any participant, of the general good by particular interest” (1986: 40). See also Ulrich P. 1999b: 60 and Ulrich P. 2001a.
Idem.
The ‘Business principles for countering bribery’ (an initiative of Transparency International and Social Accountability International) mention two steps: (1) “Prohibit bribery in any form” and (2) “Commit to implement a programme to counter bribery” (TI 2002). The approach here is adapted to projects in particular, and therefore it is less isolated and more holistic, as it makes corruption part of an integrated integrity management through the leadership endorsed project governance. Otherwise, it is left to the discretion of single project managers as it was the case in the project observed in the case study.
SDC 1998
See also Wallace & Zinkin, who emphasize the need for good corporate governance to resolve the typical conflicts of interest in the principal — agent relationship (2005: 2).
Concise Oxford English Dictionary 2004.
ILO 2002.
Idem.
Idem.
ILO 2002. It is further stated that “although such practices might on the surface appear to be minor single actions, they can have a very serious effect. It has been estimated, for example, that about 10–15 per cent of suicides in Sweden each year have this type of background.”
See the 3rd guideline of the normative foundation, Chapter 4.3.4.1, respectively Ulrich P. 2001a: 88.
Kast 1987: 39 (translation Renz).
Fest 2005. Further: “We need to accept the evil in our accounts of the human being stronger than it happened since the Enlightenment. The Enlightenment pretended that the human being is good and it is only because of external influences that he falls into the evil. That is wrong. There is the possibility for good and evil in the human being. We think of this too little in the western industrialized nations.” Questions of good and evil in human beings are core phi-dustrialized nations.” Questions of good and evil in human beings are core philosophical debates. While they go beyond the scope of this book, the possibility of their existence is acknowledged. (See also Neiman 2002, Tibi 1991).
OECD 2004: 62.
Gandossy & Sonnenfeld 2004: 147. See also Leisinger 2003 and 1997: 130–141.
Oxford English Dictionary 1989 & 2003.
Lucas 2004 (emphasis Renz).
Oxford English Dictionary (emphasis Renz).
Ulrich P. 2001: 84 (translation Renz).
Sonnenfeld 2002: 16. See also Hilb, who underlines the importance of a culture of trust enabled through ying-yang team cooperation rules (2005: 82–85).
Honderich 1995: 647.
Idem.
Pless & Maak 2004: 132.
Peter & Kraut 2000: 19 (translation Renz).
In modification of Rüegg-Stürm’s definition 2005: 12.
DFID 1995: 3. DFID is the British Department of International Development. See Wood, who points at the dependencies with the following paradox: “the interdependence of many charitable nonprofits and government units is incompatible with the assumption that the sector is ‘independent’” (1996: 5).
See Hickey & Mohan 2005: 239ff for a comprehensive overview of approaches to participation in development.
Idem.
Ulrich P. 2001a: 438 (translation Renz). See also Post, Preston & Sachs (2002: 198ff) who stress the learning processes involving stakeholders, another facet of the pluralistic value chain arrangement.
See Fuchs analyzing the project management of (business) cooperation. He defines cooperation as “the voluntary collaboration of two or more legally independent enterprises with the aim to pursue common and individual objectives” (1999: 25; translation Renz).
DFID 1995: 9.
See Ulrich P. 2001a: 441ff. See also Wilbers (2004) and Rüegg-Stürm (2002, 2005) building on P. Ulrich’s distinction.
Freeman 1984.
See Gomez et al. 2002: 88.
Ulrich P. 2001a: 442 (translation Renz).
Rüegg-Stürm 2005: 20. See Ulrich P. 2001a: 442ff.
Ulrich P. 2001a: 450 (translation Renz). See also Post, Preston & Sachs who talk of “organizational morality” forming the “normative core of the stakeholder model: legitimate stakeholder interests require managerial recognition [!] and attention as a matter of moral right” (2002: 29; emphasis Renz).
See Ulrich P. 2001a: 443. See also Kirsch 1997, in particular the comment under Footnote 137.
Wilbers 2004: 331ff. In contrast to Wilber, the proposed model merges the two steps of classifying and assessing stakeholders: Particularly from the perspective of the normative critical stakeholder concept, the distinction remains ambiguous. A second enhancement is that a monitoring step is added, as suggested in a similar model by Gomez et al. (2002: 86ff). Thirdly, the normatively critical concept is complemented by elements of recognition ethics.
The matrix is inspired by Gomez et al. (see 2002: 89), and enhanced so as to be consistent with the categories of the St. Gallen Management Model.
See Paris declaration on aid effectiveness (2005) in its call for more efficiency in project implementation units.
Wilbers 2004: 354 (translation Renz).
See, for instance, Müller-Stewens & Lechner 2005, Gomez et al. 2002, Wilbers 2004.
See DFID 1995.
Wilbers 2004: 355 (translation Renz).
See Ulrich P. 2001a: 438ff, 459.
Wilbers 2004: 335 (translation Renz). See Dyllick & Meyer 2004: 120ff.
See, for instance, Gomez et al. 2002: 85ff.
See Fuchs 1999: 176ff on the need for an effective controlling of business partnerships and co-operations.
Hilb 2005: 165.
Thomsett 2004: 1. This inconsistency is also mirrored in the corporate governance literature in particular: Monks & Minow (2004), Steger (2004), Carter & Lorsch (2004) merely mention risk management, while Schwarz fails to mention it (2005) in his discussion of nonprofit organizations.
See Hamel & Prahalad 1997.
See, for instance, Hilb 2005, Boutellier & Kalia 2004, 2005.
Thommen 2000: 472 (translation Renz).
Boutellier & Kalia 2005: 6.
Boutellier & Kalia 2005: 8.
Adapted from Bodenmann 2005: 113 and IFAC (International Federation of Accountants) 1999: 7.
Thomsett 2004: 4. See PMI 2003: 82, Keiser 2005: 160, IFAC 1999: 15.
DRIVER 2002.
Rüegg-Stürm 2003: 14.
FMEA = Failure-Mode-and-Effect-Analysis. See McDermott, Mikulak & Beauregard 1996 or Dailey 2004.
Boutellier & Kalia 2004, 2005.
There is abundant literature on risk assessment, mainly on the level of project management (see, for instance, PMI 2003, 2004, Gassmann, Kobe & Voit 2001, Schott & Campana 2005, Fiedler 2001, Buchta, Eul & Schulte-Croonenberg 2004, Führer & Züger 2005). The process summarized here draws on elements common to these approaches, supplemented by insights from the case study and by contributions of specifically mentioned authors.
Boutellier & Kalia 2004: 10.
Lambert 2003: 2.
Lambert 2003: 3.
See Boutellier & Kalia 2005: 8 and Chapter 4.5.2.1.
Enhanced from Swisscom 2001, cited in Haller 2004 and Boutellier & Kalia 2005.
Boutellier & Kalia 2004: 9.
For instance, resolving or identifying a technical issue during the landing of an airplane on a carrier: This kind of fluidly adaptive and immediate reaction draws on the characteristics of high reliability organizations when handling a crisis. See Schulman et. al. 2004.
Adapted from Boutellier & Gassmann 2001: 39.
Hilb 2005: 171ff based on KPMG 2003.
2004: 103ff.
Adapted from Keiser 2005: 165.
See PwC 2005: 5ff, Hilb 2005: 158.
Ulrich P. & Fluri 1995: 152 (translation Renz).
IIA — Institute of Internal Auditor 2005a (emphasis Renz).
See COSO Framework 1992, Hilb 2005: 164.
Ulrich P. & Fluri 1995: 152 (translation Renz).
IIA — Institute of Internal Auditor 2005b: 2.
Hilb, for instance, suggests the creation of an “integrated Audit & Risk Management Committee for quoted companies” (2005: 157).
See Economiesuisse 2002, paragraph 23, 24 and annex 8.
KPMG 2002: 25.
PwC 2005: 4 (translation Renz).
PwC 2005: 4 (translation Renz).
Schweiz. Bundesanwaltschaft 2003.
Swiss NPO-Code 2005: 16
IIA — Institute of Internal Auditors 2005a.
See COSO Framework 1992, Hilb 2005: 164.
Hilb 2005: 158.
Hilb 2005: 158.
See PwC 2005.
Hilb 2005: 158.
Hilb 2005: 157ff.
Not within the scope of this text are possible organizational measures within the project unit. One might discuss how the project delivers on its own auditrelated requirements, consisting principally of the internal control tasks with respect to financial and operational control. As for what project size justifies the hiring of a full time internal controller, who would report not to the financial manager but to the governance board (or to the project manager though less ideal). A benchmark study on internal control in Germany, Austria, and Switzerland (Füss 2004) mentions that in NPOs there is around 1 person per 160 employees, while in banks 1 per 60 employees works in internal control with a (mean value 6.3 respectively for 16.67 per 1000 employees). Obviously, the number of employees represents only a partial comparison criterion. If, however, development projects are considered high-risk endeavors (which from the political and ethical perspectives perspective is the case), then bigger development projects are justified to invest project internal resources into dedicated internal control staff. In the case example, in fact, one of the donors requested a full time external auditor. Unfortunately, it did not materialize — possibly because its value was not understood as supporting a strategic audit management within integrated project governance.
See Jans’ comment on “internal control as a catalyst” (2003: 1).
Rights and permissions
Copyright information
© 2007 Physica-Verlag Heidelberg
About this chapter
Cite this chapter
(2007). The Project Governance Model. In: Project Governance. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-1927-4_4
Download citation
DOI: https://doi.org/10.1007/978-3-7908-1927-4_4
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-1926-7
Online ISBN: 978-3-7908-1927-4
eBook Packages: Business and EconomicsBusiness and Management (R0)