nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2007‒10‒13
six papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Management of Multi-projects In a Process oriented Organization By Macheridis, Nikos; Nilsson, Carl-Henrik
  2. The Abnormal Earnings Growth Model: Applicability and Applications By Jennergren, L. Peter; Skogsvik, Kenth
  3. Building public–private partnerships for agricultural innovation in Latin America: lessons from capacity strengthening By Hartwich, Frank; Gottret, Maria Veronica; Babu, Suresh Chandra; Tola, Jaime
  4. Sharing science, building bridges, and enhancing impact: Public-Private Partnerships in the CGIAR By Spielman,David J.; Hartwich,Frank; von Grebmer, Klaus
  5. The Human version of Moore-Shannon’s Theorem: The Design of Reliable Economic Systems By Michael Christensen; Thorbjørn Knudsen
  6. Integrated management of the Blue Nile Basin in Ethiopia: hydropower and irrigation modeling By Block, Paul J.

  1. By: Macheridis, Nikos (Department of Business Administration, School of Economics and Management, Lund University); Nilsson, Carl-Henrik (Department of Business Administration, School of Economics and Management, Lund University)
    Abstract: When projects are used as an organisational platform to conduct business, a project can be the only project in the organisation or one amongst several others. The latter case is called multi-project organisation. Usually an organization with a multi-project environment has a base organisation, which can be functional, matrix structure or another. The purpose of this article is to develop a model based on a process oriented organization as a complement to functional or matrix organizational structures. The article is written from a management point of view. Management of Multi-projects in a process-oriented organisation is analysed from a strategic point of view as well as from an operational point of view. Theoretical conclusions as well as practical recommendations are presented.
    Keywords: Multiproject; Processes; Managing Projects; Project Office; Systems Approach.
    Date: 2006–10–03
  2. By: Jennergren, L. Peter (Department of Accounting and Business Law); Skogsvik, Kenth (Department of Accounting and Business Law)
    Abstract: We investigate a disaggregated version of the abnormal earnings growth (AEG) model of Ohlson and Juettner-Nauroth (2005). The value of the firm then becomes discounted free cash flows minus initial debt. Discounted free cash flows are equal to capitalized operating earnings from the initial stock of operating assets plus the present value of an infinite sequence of growth projects, where each growth project is valued by discounted economic value added. Sufficient conditions for the present value of the free cash flows to be equal to the sum of these two components are investigated. The Gordon growth formula is found to be one special case. Another case concerns lumpy growth projects with depreciation according to the annuity method. We then allow for three different interest rates, the required rate of return on equity under all-equity financing, the borrowing rate, and the required rate of return on equity under partial debt financing (the latter given by MM's Proposition 2). In the model of Ohlson and Juettner-Nauroth, these rates are the same. A firm-level model is developed that focuses on operating earnings and free cash flows with discounting at the required rate of return under all-equity financing. An equity-level model is then developed that focuses on bottom-line earnings and dividends with discounting at the required rate of return under partial debt financing. Relationships between the two models are explored. Dividend policy irrelevance holds only in a limited sense for the equity-level model.
    Keywords: Financial analysis; abnormal earnings growth model; dividend policy; discounted dividends; discounted free cash flows; capitalized earnings; discounted economic value added
    Date: 2007–09–28
  3. By: Hartwich, Frank; Gottret, Maria Veronica; Babu, Suresh Chandra; Tola, Jaime
    Abstract: "The International Service for National Agricultural Research¾on its own from 2002 until 2003, and as a division of the International Food Policy Research Institute thereafter has studied 124 public–private partnerships in agriculture in nine Latin American countries through its initiative on public–private partnerships for Agro-Industrial Research in Latin America...This paper cases of public–private partnership building in which private- sector companies, producer associations, and research organizations engage in collaboration for the purpose of developing innovations in agricultural production and value chains. The paper considers different points of entry to partnership building, emulating best practices. The paper describes (a) how common interests among multiple stakeholders have been identified; (b) how partners have been motivated to participate in partnerships; (c) how the roles of different brokers within or outside the partnerships have fostered partnership development; and (d) how the contributions of partners have been negotiated to ensure that partnership arrangements are in alignment with the interests of the partners, their capacities, and the prevailing technological and market opportunities. The paper targets policymakers and administrators in agricultural development, and collaborators in research and innovation projects who are interested in issues of how best to build partnerships among public and private agents. from Authors' Abstract
    Keywords: Public-private partnerships, Agricultural innovations, Capacity strengthening, Agricultural research,
    Date: 2007
  4. By: Spielman,David J.; Hartwich,Frank; von Grebmer, Klaus
    Abstract: "This study, which examines the role of public–private partnerships in international agricultural research, is intended to provide policymakers, research managers, and business decisionmakers with an understanding of how such partnerships operate and how they potentially contribute to food security and poverty reduction in developing countries. The study examines public–private partnerships in light of persistent market failure, institutional constraints, and systemic weaknesses, which impede the exchange of potentially pro-poor knowledge and technology. The study focuses on three key issues: whether public–private partnerships contribute to reducing the cost of research, whether they add value to research by facilitating innovation, and whether they enhance the impact of research on smallholders and other marginalized groups in developing-country agriculture. The study examines 75 projects undertaken by the research centers and programs of the Consultative Group on International Agricultural Research (CGIAR) in partnership with various types of private firms. Data and information were obtained through document analysis, semi-structured interviews with key informants, and an email survey of CGIAR centers. The resulting analysis provides a characterization of public–private partnerships in the CGIAR and describes the factors that contribute to their success. These finding are important to improving both public policy and organizational practices in the international agricultural research system." - from authors' abstract.
    Keywords: Agricultural R&D, CGIAR, Innovation, Public-private partnerships,
    Date: 2007
  5. By: Michael Christensen; Thorbjørn Knudsen
    Abstract: Moore & Shannon's theorem is the cornerstone in reliability theory, but cannot be applied to human systems in its original form. A generalization to human systems would therefore be of considerable interest because the choice of organization structure can remedy reliability problems that notoriously plaque business operations, financial institutions, military intelligence and other human activities. Our main result is a proof that provides answers to the following three questions. Is it possible to design a reliable social organization from fallible human individuals? How many fallible human agents are required to build an economic system of a certain level of reliability? What is the best way to design an organization of two or more agents in order to minimize error? On the basis of constructive proofs, this paper provides answers to these questions and thus offers a method to analyze any form of decision making structure with respect to its reliability.
    Keywords: Organizational design; reliability theory; decision making; project selection
    Date: 2007
  6. By: Block, Paul J.
    Abstract: "Ethiopia is at a critical crossroads with a large and increasing population, a depressed national economy, insufficient agricultural production, and a low number of developed energy sources. The upper Blue Nile basin harbors considerable untapped potential for irrigation and hydropower development and expansion. Numerous hydrologic models have been developed to assess hydropower and agricultural irrigation potential within the basin, yet often fail to adequately address critical aspects, including the transient stages of large-scale reservoirs, relevant flow retention policies and associated downstream ramifications, and the implications of stochastic modeling of variable climate and climate change. A hydrologic model with dynamic climate capabilities is constructed to assess these aspects. The model indicates that large-scale development typically produces benefit-cost ratios from 1.2-1.8 under historical climate regimes for the projects specified. Climate change scenarios indicate potential for small benefit-cost increases, but reflect possible significant decreases. Stochastic modeling of scenarios representing a doubling of the historical frequency of El Niño events indicates benefit-cost ratios as low as 1.0 due to a lack of timely water. An evaluation of expected energy growth rates reinforces the need for significant economic planning and the necessity of securing energy trade contracts prior to extensive development. A Ramsey growth model for energy development specifies project multipliers on total GDP over the 100-year simulation ranging from 1.7-5.2, for various climatologic conditions." Author's Abstract
    Keywords: Water resources development, Hydrologic model, Energy, Climate variability, Climate change, Irrigation,
    Date: 2007

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