3.0 Understand the role of culture on achieving programme success

Strategic Programme Leadership


Module purpose

On completion of this module learners will be able to assess contracting requirements and approaches to the leadership of major strategic programmes, and evaluate the role that organizational culture has to play on achieving overall success.

Module aim(s)

Major programmes are a key element in any organisational strategy, hence the successful leadership of them is a significant contributor to overall success. This module is designed for those procurement and supply professionals who will develop and lead the implementation and monitoring of contracts from the strategic standpoint requiring a practical knowledge of the associated issues and approaches to programme control.

Learning outcomes, assessment criteria and indicative content

1.0 Understand contracting for programmes

2.0 Understand programme leadership approaches

1.1 Compare contracting options for programmes

• Client coordinated approaches to major projects

• Engineering, procurement and construction (EPC)/ design and build forms of contract

• Management contracting and construction management

• Design, build, operate and ownership forms of contract

• Public and private sector partnerships

1.2 Evaluate contract forms for programmes

• The role of institutes and professional bodies in developing contract forms:

• The New Engineering Contract (NEC) core and optional clauses

• International Federation of Consulting Engineers (FIDIC) contract forms

• Institution of Mechanical Engineers (IMechE) contract forms

• Joint Contracts Tribunal (JCT) contract forms

• CIPS model forms of contract

• Comparisons of main contractual terms and schedules

1.3 Assess the use of pricing mechanisms for programmes

• Fixed lump sum pricing

• Activity schedule pricing

• Bills of quantity

• Target costing methods and risk and reward pricing mechanisms

• Cost reimbursable contracts

1.4 Contrast methods of investment appraisal for programmes

• Purpose of investment appraisal

• Payback analysis

• Average rate of return

• Discounted cash flow

• The choice of discount factor

• Calculating net present values

• Calculating the internal rates of return

• The strengths and weaknesses of different methods of investment appraisal

2.1 Assess approaches to strategic cost management for programmes

• Fixed and variable pricing methods

• Budgetary control and variance analysis

• Value engineering

• Consortium based procurement

• The use of open book costing and cost transparency

2.2 Analyse the use of financial and management information on the performance of programmes

• Estimating budgets for projects

• Measurement, monitoring control and improvement

• Project tracking and control mechanisms

• Controlling variations, claims/compensation events

• Implementing remedial actions

2.3 Analyse the impact of programme performance on the supply chain

• Consequential losses resulting from default

• Assessment of damages

• Contractual warranties and conditions

• Specific performance

• Termination clauses

2.4 Assess the implications of programme closure on the supply chain

• Obtaining client acceptance

• Installing deliverables

• Conducting project audits

• Knowledge management

• Communicating the review, evaluation and learning

3.0 Understand the role of culture on achieving programme success


3.1 Critically assess the concept of organisational culture

• The meaning of organisational culture

• The ingredients of culture

• Identifying culture

• Levels of culture

• Cultural web

• The four types of culture

• Power culture

• Task culture

• Role culture

• Person culture

3.2 Analyse the influence of national culture on programme success

• Cultural similarities and differences

• Language, religion, social, laws, politics, education systems, values and attitudes

3.3 Analyse tools and techniques which support cultural change

• Ignoring the culture

• Managing around the culture

• Changing behaviours

• Education vs. persuasion

• Coercion to change attitudes

• Recruitment policy, selection, promotion and reward

• Redundancy policy and alter workforce composition



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