Value Engineering Decisioneering: A Risk Management Tool in the Project Management Office - Case Study of Electricity Distribution Companies in Nigeria

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Quadri, Habeeb Adekunle
Baecher, Gregory B
The Project Management Office is in its early adopter stage worldwide most especially in developing economies. The Wall Street crash in the 1930s led to the emergence of corpo-rate governance to contain agency problems which resonates with the recent global eco-nomic recession induced by recklessness in decision making, which now requires uncon-ventional but methodical engineering approach to business decisions. The unprecedented proliferation of the PMO in the last decade is an indication of its con-tinued growth and relevance as Center of Excellence in achieving business goals. Value Engineering is a function-oriented problem-solving methodology the PMO can integrate as a risk management strategy in decision-making to optimize scarce resources for opera-tional excellence and long-term growth. The objective of this research is to propose the adoption of VE as a risk management tool in the PMO and provide a framework to facilitate its adoption and application as a risk management tool in the PMO. This will result in the discovery of a new, consistent and repeatable decision making process capable of enhancing the PMO efficiency and the overall corporate performance. This research case-studied the PMO of Abuja Electricity Distribution Company and Kano Electricity Distribution Company in Nigeria. Electricity industry in Nigeria enjoyed an excruciating monopoly for over a century, bad leadership and inept project governance led to its privatization in 2013. The quests by the new investors to discover new tools and strategies to achieve higher returns on investment heralded the establishment of the PMO to leverage its capabilities to execute change management and build leadership compe-tencies. The research revealed the major drivers propelling and constraints hindering the success-ful adoption and application of VE in the PMO. However, the research discovered that prudent integration of VE as a risk management tool in the PMO will competitively repo-sition the electricity distribution companies, ceteris paribus. This research contributed to the body of knowledge in the theoretical underpinnings of the PMO and risk management literature. However, testing and validating the effective-ness of VE methodology as a risk management tool in the PMO overtime, become the objective of further research by the researcher or other researchers.