Department of Architecture and Civil Engineering Division of Construction Management CHALMERS UNIVERSITY OF TECHNOLOGY Master’s Thesis ACEX30-18-26 Gothenburg, Sweden 2018 Sustainable Project Management Integrating sustainability in Sweco Management’s projects Master’s thesis in the Master’s Programme International Project Management MARKUS BOHM ÖHLUND JONNA SMIDING MASTER’S THESIS ACEX30-18-26 Sustainable Project Management Integrating sustainability in Sweco Management’s projects Master’s Thesis in the Master’s Programme International Project Management MARKUS BOHM ÖHLUND JONNA SMIDING Department of Architecture and Civil Engineering Division of Construction Management CHALMERS UNIVERSITY OF TECHNOLOGY Göteborg, Sweden 2018 Sustainable Project Management Integrating sustainability in Sweco Management’s projects Master’s Thesis in the Master’s Programme International Project Management MARKUS BOHM ÖHLUND JONNA SMIDING © MARKUS BOHM ÖHLUND & JONNA SMIDING, 2018 Examensarbete ACEX30-18-26 Institutionen för Arkitektur och samhällsbyggnadsteknik, Chalmers tekniska högskola 2018 Department of Architecture and Civil Engineering Division of Construction Management Chalmers University of Technology SE-412 96 Göteborg Sweden Telephone: + 46 (0)31-772 1000 Cover: United Nations sustainable development goals (United Nations, 2018) Department of Architecture and Civil Engineering Gothenburg, Sweden, 2018 I Sustainable Project Management Integrating sustainability in Sweco Management’s projects Master’s thesis in the Master’s Programme International Project Management MARKUS BOHM ÖHLUND JONNA SMIDING Department of Architecture and Civil Engineering Division of Construction Management Chalmers University of Technology ABSTRACT The concept of sustainability has become a recognized component of decision making and gained increased attention in management research and practice during the last decades. Integration of sustainability in project management has picked up momentum in the research field, but there are few studies that illustrate how it can be achieved in practice. As the interest and demand for sustainability within the urban development market is increasing, the aim of the thesis is to investigate how the consulting organization Sweco Management can integrate sustainability into their projects. The study was conducted with a research design called systematic combining where the initial aim and research questions were modified along with an increased understanding of the phenomenon. A qualitative research methodology was chosen with a single case study carried out at Sweco Management. A literature review was conducted along with semi-structured interviews with both project managers at Sweco Management and their customers, participant observations and reviews of the intranet and internal documents. The study shows that understanding and concretizing of the sustainability concept in projects is challenging. It is unclear what is expected of project managers and they perceive that there are insufficient supporting functions for sustainability work. Additionally, the study shows that working with sustainability entails several values and opportunities implying that there are strong arguments for integrating sustainability into projects. The conclusions indicate that Sustainable Development Goal’s (SDGs) provide a meaningful tool for concretizing and understanding the concept and that sustainability can be used in order to maintain market positions. The project managers need to become more proactive and address sustainability in order to meet customer expectations and demands. Vertical integration and supporting functions to embed the concept are needed where the skills, knowledge and mind-set of the project manager are important to consider. The recommendations suggest design and utilization of several methods such as e-learning, workshop, routine at Sweco@Work and checklists. Finally, a corporate environment needs to be promoted where sustainability is discussed and emphasised in order to normalize the sustainability concept. Key words: Sustainability, Sustainable project management, Sustainable development, Integration of sustainability, Project management II Hållbar Projektledning Integrering av hållbarhet i Sweco Managements projekt Examensarbete inom masterprogrammet Internationell Projektledning MARKUS BOHM ÖHLUND JONNA SMIDING Institutionen för Arkitektur och Samhällsbyggnadsteknik Avdelningen för Construction Management Chalmers tekniska högskola SAMMANFATTNING Hållbarhet har blivit en erkänd del inom beslutsfattande och fått ökad uppmärksamhet i både managementforskning och praktik under de senaste årtiondena. Forskning för att integrera hållbarhet i projektledningsmetoder har ökat men det finns fortfarande få studier som illustrerar hur integrationen kan realiseras i praktiken. Eftersom intresset och efterfrågan av hållbarhet ökar inom samhällsbyggnadssektorn syftar denna studie till att undersöka hur konsultbolaget Sweco Management kan integrera hållbarhet i sina projekt. Rapporten har utgått från en forskningsdesign som kallas ‘systematic combining’ där det initiala syftet och tillhörande frågeställningar ändrats i takt med en ökad förståelse för fenomenet. En kvalitativ forskningsmetod har använts tillsammans med en fallstudie utförd hos Sweco Management. En litteraturstudie utfördes tillsammans med semi-strukturerade intervjuer med både projektledare på Sweco Management och deras kunder, observationsstudier på företaget samt genomgång av intranätet och företagets interna dokument. Resultaten visar att det är utmanande att konkretisera hållbarhetsbegreppet och dess relevans i projekt, att det är otydligt vad som förväntas av projektledare samt att det saknas stödfunktioner kopplade till hållbarhetsarbete. Vidare visar studien att det finns många värden och möjligheter relaterade till hållbarhet, vilket indikerar att det finns starka argument till varför Sweco Management bör integrera hållbarhet i sina projekt. Slutsatserna från studien visar att FN’s globala mål fungerar som ett verktyg för att konkretisera och öka förståelsen för begreppet samtidigt som hållbarhet kan användas för att stärka ett företags marknadsposition. För att möta kundens efterfrågan måste projektledarna proaktivt föreslå hållbarhetsfrågor och lösningar i projekt. Vidare behövs en vertikal integration samt stödfunktioner för att integrera konceptet inom företaget där det är viktigt att beakta projektledarens kunskap, kompetens och tankesätt. Studiens rekommendationer föreslår utformning och nyttjande av metoder som e-learning, workshops, rutin inom Sweco@Work samt checklistor. Slutligen måste en företagsmiljö prioriteras där hållbarhet diskuteras och främjas för att normalisera konceptet. Nyckelord: Hållbar projektledning, Hållbarhet, Hållbar utveckling, Hållbarhetsintegrering. Hållbarhetsarbete, Projektledning CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 III Contents ABSTRACT………………………………………………………………...………... I SAMMANFATTNING….…………………………………………………………... II CONTENTS ................................................................................................................. III PREFACE …………………………………………………………………………....V 1 INTRODUCTION ................................................................................................. 2 1.1 Background ............................................................................................................... 2 1.2 Problem formulation ............................................................................................. 3 1.3 Aim and research questions ...................................................................................... 4 1.4 Structure of the thesis ............................................................................................... 5 2 THEORY ............................................................................................................... 6 2.1 Sustainable development .......................................................................................... 6 2.1.1 Values and benefits of sustainability .................................................................... 7 2.1.2 Limitations and challenges of sustainability ........................................................ 8 2.2 Project management .................................................................................................. 9 2.2.1 Sustainability principles in project management ................................................ 10 2.2.2 The role of the project manager.......................................................................... 12 2.2.3 Integrating sustainability in project management process groups ...................... 13 2.3 Project interconnectedness ...................................................................................... 16 2.4 Theoretical framework ............................................................................................ 17 3 RESEARCH METHODOLOGY ......................................................................... 19 3.1 Research design ...................................................................................................... 19 3.2 Research process ..................................................................................................... 20 3.3 Data Collection ....................................................................................................... 21 3.3.1 Literature review ................................................................................................ 22 3.3.2 Interviews ........................................................................................................... 22 3.3.3 Participant observation ....................................................................................... 25 3.4 Quality of study ...................................................................................................... 25 3.5 Ethical conduct ....................................................................................................... 27 4 EMPIRICAL FINDINGS .................................................................................... 28 4.1 Sweco@Work ......................................................................................................... 28 4.2 Perceptions of the sustainability concept ................................................................ 29 4.3 The value of sustainability ...................................................................................... 30 4.4 Expectations on project managers .......................................................................... 32 4.5 Procedures of integrating sustainability in projects ................................................ 33 4.6 Sweco Management’s customers ............................................................................ 35 4.7 Benefits and challenges of sustainability work....................................................... 38 5 ANALYSIS .......................................................................................................... 41 5.1 Organizational sustainability .................................................................................. 41 5.2 Benefits and values of sustainability work ............................................................. 42 5.3 Limitations and challenges of sustainability work ................................................. 43 5.4 Design and utilize new methods of sustainability work ......................................... 44 5.4.1 The role of the project manager.......................................................................... 46 CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 IV 6 CONCLUSION .................................................................................................... 48 6.1 Suggestions for further research ............................................................................. 50 7 RECOMMENDATIONS ..................................................................................... 51 REFERENCES............................................................................................................. 55 APPENDIX A ............................................................................................................. 60 APPENDIX B .............................................................................................................. 62 CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 V Preface This master’s thesis is the pinnacle of our education, the Master of Science Program International Project management at Chalmers University of Technology in Gothenburg, Sweden. The research was conducted in collaboration with the consulting company Sweco Management, a place where we felt greeted and respected. We would sincerely like to thank those of you who in some way have contributed to this thesis and extend our gratitude towards our supervisors. First, we would like to thank our supervisor at Chalmers University of Technology Viktoria Sundquist for your knowledge, positivity and support. Your feedback and guidance have been incredibly helpful for us and contributed to a continued improvement of our research. Secondly, we would like to thank our supervisors at Sweco Management, Anders Ekberg and Emelie Lindqvist Person for giving us this opportunity. Thank you for the time and resources you have provided for us and for the feedback you have given during our study. We would also like to thank the interviewees for your time and interest, our opponent for your feedback, and all others that contributed to this thesis. Lastly, we would like to thank Chalmers University of Technology for these five worthwhile years. We look forward to using our knowledge and experience professionally, but will also miss the wonderful time we have had as students. We hope that this thesis contributes to an enhanced understanding of how project-based organizations can integrate sustainability in their projects. Thank you all! Gothenburg, June 2018 Markus Bohm Öhlund and Jonna Smiding CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 1 CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 2 1 Introduction This chapter explains the background of the sustainability concept, its linkage to project management and why it is an area of interest. It also introduces the experienced problems at the asserted organization. Lastly, it presents the aim, research questions and structure of the thesis. 1.1 Background The journey towards sustainability has been marked with several milestones, most recently the Sustainable Development Goals (SDGs). Embraced by world leaders in 2015, the SDGs are universally applicable with the aim to mobilize effort from countries worldwide in order to eradicate poverty and inequalities as well as fight climate change by 2030. Sustainability is built upon three elements; economic growth, social inclusion and environmental protection which are all interrelated, meaning that advancement in one field cannot be on the expense of another. The principles are set out to protect the planet by creating an inclusive, sustainable and resilient future through aspects such as equitable economic growth, creation of basic standards of living as well as sustainable use of natural resources and ecosystem services (United Nations, 2018). The concept of sustainability has since its introduction in the Brundtland Report, until today's SDGs attracted attention worldwide (Gareis, Huemann, Martinuzzi, Weninger and Sedlacko, 2013). Businesses all over the world have implemented sustainability policies and the concept of sustainability has become a recognized component of decision making and gained increased attention in management literature and media (Gareis, Huemann and Martinuzzi, 2010). Additionally, as of the 1st of December 2016 the Swedish government introduced a law stating that all organizations that fulfill certain criteria, are obligated to present a sustainability report with information on environmental, social and personal conditions as well as efforts to mitigate corruption (Sveriges riksdag, 2016). Along with the increased recognition and importance of the concept, the debate regarding the role of businesses in society have also been growing. Businesses are increasingly being seen as social actors with responsibilities that goes beyond the interests of shareholders and stakeholders. Businesses are considered to affect communities and other groups, implying that there is a need for an active responsibility commitment concerning sustainability (Gareis et al., 2010; Silvius, Schipper, Planko, Brink and Köhler, 2012). The increased pressure on businesses to extend their accountability for sustainability performance, besides from the economic performance has helped foster the implementation of sustainable policies and goals (Silvius et al., 2012). Sustainability has mainly been researched in correlation to the field of organizational management and strategy where the concept is linked to CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 3 organizational performance and benefits when integrated into core processes (Gareis et al., 2013). The Project Management Institute (PMI) emphasises that project management is driven by organizational strategies and that projects are a way to deliver organizational strategy in an effective way (PMI, 2013). Therefore, the alignment between an organization and its projects becomes important to ensure an effective outcome. This requires that project management processes are influenced by sustainable practices as mentioned by Silvius et al. (2012). Gareis et al. (2013) and Kivilä, Martinsuo and Vuorinen (2017) argue that the current empirical research implies that sustainability should be integrated in already established project management methodologies rather than as separate systems, hence, minimizing the trade-off between the aspects of sustainability. Similarly, Silvius et al. (2012) examine the integration of sustainability within commonly used project methodologies. In the light of this, the authors demonstrate how the concept of sustainability impacts and change the project manager profession, in addition to how it impacts the most common standards of project management. Tharp (2011) and Deland (2009) have also contributed to the field, attempting to concretize how sustainability aspects can be perceived and how project managers can work with them in practice. However, the field of integrating sustainability in project management methodologies remains an explorative area as few researchers recognize how the integration can be realized in practice (Deland, 2009). 1.2 Problem formulation Sweco Management has a long experience of working with sustainability and aim to be in the forefront in the construction industry where they see an increased demand and need for sustainability. The company has a firm belief that integrating sustainability in projects would result in a greater value-adding effect for their customers and an enhanced competitive advantage for both. Therefore, methods to accomplish this is sought after and desired. However, acting as external consultants in a majority of projects, their project managers are affected by the customers targets and demands. The customer is the main executive in decision making, thus affecting the project managers’ influential level. This requires supportive functions and methods that help project managers to raise sustainability questions, issues and solutions to customers. As such methods and routines are lacking, today’s sustainability work remains highly person and context dependent. An ignorance and insecurity about the sustainability concept seem to exist amongst project managers, resulting in limited sustainability integration in projects. Some project managers feel uncomfortable about raising questions regarding sustainability aspects, issues and solutions towards customers, thus, causing a negligence of sustainability in projects. The ambition with integrating sustainability through new methods and routines is to mitigate this negligence in addition to raising the confidence amongst project managers to actively CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 4 engage in sustainability work. This study has been initiated by the authors in collaboration with Sweco Management as the company strives for becoming more sustainable in projects. Sweco Management is part of Sweco Sweden, which in turn is part of Sweco Group. The corporate group has approximately 14,500 employees and 5,500 of them belong to Sweco Sweden (Sweco, 2018a). Sweco Management has approximately 400 employees spread across seven regions, South, North, East, West, Middle and Stockholm. Sweco Management is a consulting company, providing services to both public and private actors. The size and types of assignments and project vary greatly, but mainly include management and project management services in the construction, infrastructure and real estate sector (Sweco, 2018b). In each region, there is a sustainability network and a sustainability coordinator that, in addition to its normal role as a project manager, is responsible for communicating sustainability in its region, developing employees into sustainable project managers and emphasising sustainability work. Sweco Sweden use an internal management system, Sweco@Work, which is available to Sweco's employees through the intranet. The management system is applied by all employees on all assignments, and there are documents and instructions under the headings: Initiation, Planning, Execution, Control, Closing and Management. Sweco@Work is certified according to ISO 9001 (QA), ISO 14001 (Environment) and OHSAS18001 (Work Environment) and built on PMI's project management principles (Sweco, 2018b). 1.3 Aim and research questions The aim of this thesis is to investigate how Sweco Management can integrate sustainability in projects. To support and fulfil the aim of the thesis, four research questions were established: RQ1: How is the sustainability concept perceived and defined at Sweco Management? RQ2: What are the values and benefits related to sustainability work within projects for Sweco Management and their customers? RQ3: What are the limitations and challenges related to sustainability work within projects for Sweco Management and their customers? RQ4: How can methods for sustainability work be designed and utilized within Sweco Management? CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 5 1.4 Structure of the thesis The report is based on 7 chapters, structured as follows: ● Chapter 1 - ‘Introduction’, introduces the background of the investigated subject, the problem formulation at the organization followed by the aim and research questions. ● Chapter 2 - ‘Theory’, the field of sustainability in project management is presented through relevant literature and previous research, providing a theoretical framework used in the analysis. ● Chapter 3 - ‘Research methodology’, describes the research method and design used when conducting the thesis. The methods of data collection and literature review is explained and justified. The chapter also account for the quality of study and essential ethical considerations. ● Chapter 4 - ‘Empirical findings’, provides the thesis with the results obtained by the empirical studies. ● Chapter 5 - ‘Analysis’, compares, analyses and reflects on the empirical findings with the support of the theoretical framework. ● Chapter 6 - ‘Conclusion’, answers the aim and research questions, summarises the analysis and suggests further research. ● Chapter 7 - ‘Recommendations’, presents suggestions of how new methods should be designed and what purpose they will serve within the organization. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 6 2 Theory This chapter aims to provide theory related to the field of sustainability and project management. The theory creates a theoretical framework which is further used for analysis. The chapter starts with a general introduction to the sustainability concept, its value and its limitations of integration. Then, project management, sustainability principles in project management, the role of the project manager, sustainability integration in project process groups are described followed by project interconnectedness. Lastly, the theory is concluded in a theoretical framework for the thesis. 2.1 Sustainable development Sustainable development is an ambiguous concept. Ever since the most common and generally accepted definition was established by the Brundtland Commission, several scholars and practitioners have created their own alternative definition (Kates, Parris and Leiserowitz, 2005; Alänge and Lundqvist, 2014). Kates et al. (2005) emphasise that this allows the concept to be adapted to different contexts and situations while remaining an open and evolving idea. However, being an elusive concept has resulted in an absence of a clear, fixed and enduring meaning (Kates et al., 2005). Despite this, sustainability rest on some core principles derived from the Brundtland definition which is to meet the needs, now and in the future, for social, economic and environmental development (Kates et al., 2005). As a result, sustainability is usually understood through the concepts three core elements: economic growth, social inclusion and environmental protection (United Nations, 2018). This so-called triple bottom line approach implies a simultaneous focus on social, environmental and economic performance (Colbert and Kurucz, 2007). Colbert and Kurucz (2007) conceptions of business sustainability display that sustainability can be perceived as an optimization tool in order to sustain a business along with making profit. Meanwhile, it is also perceived as a way to integrate interests and demands from key stakeholders into the company in order to build competitiveness (Colbert and Kurucz, 2007). A sustainable organization can be described as striving to generate benefits for its stakeholders through how it conducts its business (Savitz and Weber, 2014). Sustainable organizations attempt to find a spot where the pursuit of profit blends with the common good which is beneficial for both environmental and social aspects. Savitz and Weber (2014) define a sustainable organization as one that protects the environment, creates benefits for its stakeholders and improve the lives for whom the company interacts with. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 7 2.1.1 Values and benefits of sustainability The last few decades have seen a growing recognition and importance of the sustainability concept (Gareis et al., 2013; Silvius et al., 2012) and as a result the debate regarding businesses role in society have picked up momentum (Gareis et al., 2010). In light of this, Epstein, Rejc, Elkington and Leonard (2014) mention four main reasons why sustainability needs to be addressed by corporations: ➢ Regulations. Government regulations require companies to address sustainability more frequently. At the same time, noncompliance with regulations can lead to penalties, legal costs, closing of operations and lowered corporate reputation. ➢ Community relations. There is an increased awareness of sustainability among the general public together with an increased understanding of companies’ impact on societies. Identifying issues that are important for stakeholders can foster loyalty and trust which can be essential in order for a company to conduct business on a daily basis. ➢ Cost and revenue imperatives. Benefits from sustainability can derive from increased revenue and lowered costs. Improved corporate reputation can lead to increased revenues while more efficient use of resources and process improvements can decrease a company’s overall cost. Being proactive and reducing risks for operations that may result in environmental damage can also lower a company’s overall cost. ➢ Societal and moral obligations. Due to the fact that companies have an impact on the environment, society and economy they have a responsibility towards managing sustainability. In addition to this, the potential benefits of implementing sustainability in decision making can act as a driver for change since research has shown that successful implementation can improve businesses in several ways (Epstein et al, 2014; Savitz and Weber, 2014; Silvius et al., 2012). Sustainability is increasingly being referred to as a requirement for competition by business leaders (Millar, Hind and Magala, 2012). Even though it is hard to quantify, both company reputation and competitiveness can be increased through implementing sustainability (Savitz and Weber, 2014; Silivus et al. 2012; Tharp 2011). Porter and Kramer (2006) argue that companies should implement social and environmental issues related to their operations into their strategies since it can be a powerful source of competitive advantage along with innovation improvements. Moreover, research has shown that improved sustainably performance can result in several benefits such as reduced operating costs, reduced risk, increased customer satisfaction, improved processes and improved reputation (Epstein et al., 2014; Silvius et. al 2012). Silvius et. al (2012) further claim that implementing sustainability can result in an improved work environment along with increased motivation amongst employees, thus leading to CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 8 decreased employee turnover. Deland (2009) agrees and mention that intangible benefits steaming from sustainability implementation includes increased motivation, trust and participation from employees. Additionally, the principles of sustainability can help protect, run and grow a business (Savitz and Weber, 2014). Management improvements in protecting the business includes limiting regulatory intervention, identifying emerging risk and reducing them in addition to helping the business retain explicit rights to operate. Improvements in operations include cost reductions, waste reduction and productivity improvements while growing the business include increased innovation, reputation and customer satisfaction. 2.1.2 Limitations and challenges of sustainability Despite the sustainability concept’s growing recognition and importance, limitations related to implementing sustainability into practice have been addressed by several authors (Mirvis, Googins and Kinnicutt, 2010; Epstein et al., 2014; Talbot and Venkataraman, 2011; Millar, Hind and Magala, 2012). Mirvis et al. (2010) argue that one main reason within companies is the lack of a clear and agreed upon view of sustainability. Even companies with exemplary sustainability standings have been shown to have differentiating views and perspectives of sustainability within different organizational levels (Millar et al., 2012; Colbert and Kurucz, 2007). This highlights that there is a need for vertical integration of the concept together with supporting practices to successfully embed it (Millar et al., 2012). Mirvis et al. (2010) assert that another reason is the issue related to roles of sustainability. An absence of alignment between the organization and who is responsible for sustainability is explained to hinder the implementation while also creating confusion of how to conduct sustainability work (Mirvis et al., 2010). Lack of strong commitment from companies towards sustainability is stated as a main barrier to implementation (Mirvis et al., 2010; Millar et al., 2012; Epstein et al., 2014). As a result, sustainability is often set aside for short-term profitability pressures (Mirvis et al., 2010). This is agreed upon by Epstein et al. (2014) mentioning that managers often have consensuses regarding the importance of sustainability, yet pressure on project delivery often incorporates profitability which supersede sustainability priorities. However, clients and shareholders may also change their perspective on trade-offs. At certain times focus may be on social and environmental performance whereas it may be on short-term profitability at other times (Epstein et al., 2014). Sustainability implementation also require a long-term perspective since the cost of implementation is related to an increased initial capital cost (Dobson et al., 2013; Epstein et al., 2014; Silvius et. al, 2012). The potential social, environmental and economic benefits may therefore be hard to quantify (Epstein et al., 2014). Despite these limitations, Epstein et al. (2014) assert that the question is not whether to incorporate sustainability, rather how to do it in the already existing structure. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 9 2.2 Project management ’Project Management’ is defined by PMI (2013, p.5) as “The application of knowledge, skills, tools and techniques to project activities to meet the project requirements.” Projects are complex, temporary and unique endeavours undertaken with the purpose of generating a unique product, service or result (PMI, 2017). Even though the project itself is unique and complex, it generally consists of resembling activities and deliverables (Kerzner, 2014). Tharp (2011) explains that conducting projects is the organization’s way of generating the long-term investment goals of a company, which in its turn contributes to sustainability in a long-term perspective. During the project’s planning and execution phase, project management usually involves identification of requirements, responding to interests, needs, expectations of stakeholders and balancing project traditional constraints such as time, scope, budget and risk. As opinions on which parameters that are the most vital may vary amongst stakeholders this might become a major challenge for project managers (PMI, 2013). Additionally, Silvius et al. (2012) argue that the complexity of projects requires more accurate measurements than the traditional constraints that incorporates a holistic view of the sustainability perspective that balances ecological, societal and economic factors. There are various project management methodologies (PMM) such as PMBOK which is globally recognized and applicable in various industries and projects (Špundak, 2014). The mainstream PMM is acknowledged as a method to manage the complexity of projects and used with the intention to increase the chance of project success and enhance project effectiveness (Špundak, 2014; Saladis and Kerzner, 2009; Kerzner, 2014). Implementing and modifying a methodology as a formal project procedure enables project-based organizations to create common and standardized ways of working. Several benefits can steam from common standards, such as predictability of project progress, consistency of project deliverables and optimization of resources (PMI, 2017). However, Cobb (2015) argues that adhering to a traditional PMM enables institutionalized norms, routines and methods which might negatively impact the innovation process. PMBOK is not formulated as a rigorous framework of how to manage project and should therefore be embraced as a guide for project managers helping them to deliver successful project (PMI, 2017; Saladis and Kerzner, 2009). The usefulness of the comprehensive guide, consisting of good practices, tools and techniques, lies within its ability to be adapted and modified by the relevance of the characteristics of the context interconnected with organizations and its projects (Saladis and Kerzner, 2009). Bearing in mind that the methodology itself does not guarantee successful outcomes (Cobb, 2015), the responsibility for altering and implementing a suitable approach is left to each organization (Wysocki, Kaikini and Sneed, 2014). An overly structured method can be perceived as an overloading system, enhancing the possibility of resistance as well as minimizing the motivation and commitment among employees (Cicmil and Hodgson, 2006). CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 10 2.2.1 Sustainability principles in project management Several sustainability principles are suggested to act as guidance for integrating sustainability in project management (Silvius et al., 2012; Gareis et al., 2013). According to Silvius et al. (2012), each principle’s relevance and its impact should be considered in projects. The principles are summarized by Forsling (2014) in Table 1. Table 1. Sustainability principles and its usefulness in projects Sustainability principle Usefulness in project 1. Harmonizing social, environmental and economic interest Proactive sustainability work enabling virtuous effects instead of reactive work compensating the bad for the good Has a great impact on the project scope as well as process and will therefore impact almost every project phase. What is established during the planning phase is then carried out during the execution phase. Except status reporting, the monitor and control phase does not imminently integrate sustainability. 2. Short-term and long-term perspective From an economic perspective, companies tend to consider short-term goals where a direct cash flow has more value than a future cash flow according to economic theory. However, the benefits of the project deliverables often occur after the project life-cycle, thus requiring a long-term perspective. This principle adds a time scale to principle 1. In a long-term perspective, processes, services, products, systems and resources may change, which requires acceptance within the project team. A long-term perspective in projects can change the choice of materials. More sustainable materials benefit ecological, economic and social interests. The principle influences project management in initiation and planning processes in defining scope, risks, planned results, activities, quality and stakeholders. During the implementation phase, employee development can take place from a long-term perspective beyond the project needs. The closing process is affected upon transfer to the permanent organization and upon acceptance of the organizational change that the project has created. 3. Local and global orientation Organizations are often affected by international stakeholders, resulting in a global affection of the social, economic and environmental parameters. Global aspects can entail that responsibility is taken for fair working conditions throughout the supply chain if the company has suppliers and manufacturers abroad. Local aspects may entail that the company takes into account the interests of stakeholders regarding the effects of the project, the project process and almost all project management processes in the initiation, planning and execution phase. The CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 11 project phases monitoring, control and closure are less affected by this. 4. Consuming income, not natural capital Renewable resources should not be extracted at a higher rate than they are regenerated in order not to deplete them. In order for nature to take care of our waste, we do not exceed its capacity to take care of it. Companies must use revenue and not natural capital to pay costs. To be a sustainable company, both economic and ecological and social capital must be handled well. Principle 4 means that resources and materials are utilized so that the capitals are not compromised. This, for example, ensures that all project members is in a healthy state and not exposed to high pressure. This means that resources must be utilized in a sustainable way, as un-sustainable ways may result in loss of capital. This fourth principle serves as a guide of how to use materials and resources in projects. This involves choosing eco-friendly materials. This principle affects the scope of the project in the initiation phase, the planning stage and the implementation stage. The principle has less impact on the remaining phases. 5. Transparency and accountability The company should be transparent and take responsibility for the consequences of its policies, decisions and actions to enable stakeholders to assess the business. The company should proactively engage its stakeholders This is not a new principle in the content or process of the project. It is about being transparent to the public and stakeholders affected by the project. The principle influences all project management processes through how it will be done and what is being done in communicating with and engaging with stakeholders. 6. Personal values and ethics Change is the key to sustainability, which is a normative concept that reflects values and ethical circumstances. In order to change our implementation, we must first change our view of how we implement things. This principle affects all project management processes and is more about how work is done rather than what is done Deland (2009) argues that the principles should be considered as early as possible in order to influence the overall sustainability of the project. Silvius et al. (2012) agree with Deland (2009), stating that the greatest opportunity to influence the sustainability principles is within the initiation, planning and execution phase. Table 2 illustrates the different principles and their impacts during the various process groups, a darker colour indicates a greater impact (Silvius et al., 2012). CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 12 Table 2. The sustainability principles impact in process groups, adapted from Silvius et al. (2012. p.52) The six sustainability principles in this chapter are powerful means, but are not very practical for using in projects which is why Silvius et al. (2012) provide a checklist based on GRI criteria and indicators. Several sustainability checklists have been published by Silvius and Tharp (2013). They have obtained a practical approach, concretizing some of the abstract concepts of sustainability through listing potential considerations and interventions. The checklist should according to the authors be regarded as a tool for integrating the sustainability principles into projects and project management practices. 2.2.2 The role of the project manager The possibility and outermost responsibility of deciding and affecting the level of sustainability integrated in projects lies with the role of the project manager along with the project customer (Silvius et al., 2012). According to Tharp (2011) this includes a responsibility of deciding which aspects of sustainability that are relevant for the specific case. These roles should therefore be utilized to raise the level of sustainability, both in projects and within organizations (Silvius et al. 2012). Regardless of project and customer, if the project has an internal or external focus, Deland (2009) claims that project managers possess the necessary skills to incorporate sustainability in projects. Furthermore, the author states that the cross-functional and interrelated role of the project manager is a critical success factor. Each project manager is responsible for raising sustainability issues and potential sustainability solutions to customers and must therefore adopt a holistic perspective of projects, integrate external and internal factors, and maintain the sustainability focus during the whole project life cycle. Deland (2009) further states that its a personal responsibility to urge sustainability decisions and actions, whether the customers explicitly asks for sustainability integration in projects or not. Moreover, project managers should raise questions concerning sustainability regardless if there is a firm support from the CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 13 organization as well as establishing a sustainability program to educate teams within the field (Deland, 2009). The awareness amongst actors suggests that the project manager role is in need of adoption in order to correspond the increasing demand of working with sustainability (Hwang and Jian Ng, 2012). This means that sustainability needs to be integrated in the project managers’ area of expertise which includes knowledge areas such as communication management, stakeholder management, cost management and planning. Hwang and Jian Ng (2012) present some key features enabling mitigation of challenges arising which are linked to soft skills such as analytical ability, problem solving, cooperation, decision making and delegation. Silvius et al. (2012) argue that in order to integrate sustainability into projects and project management methods, project managers need a basic understanding of the versatile and difficult-to-understand sustainability concept. Furthermore Tharp (2011) adds that project managers need to obtain a long-term and holistic perspective of the project, and that the project manager is utterly responsible for project result, including results concerning sustainability aspects. Deland (2009) stresses that project managers are accountable in terms of educating project team members in sustainability and sustainability design. Deland (2009) also lists several benefits for project managers, deriving from integrating sustainability into project management practices: ➢ Adds value to the job as well as continued employment ➢ Develops skills within leadership, analysis and negotiation ➢ Increases the possibility to connect with others ➢ Enables new ways of thinking, thus increasing innovation ➢ Fulfils the need of contributing to a sustainable society ➢ Improves the project managers’ marketability 2.2.3 Integrating sustainability in project management process groups 47 project management processes identified in PMBOK are furthered categorized in ten knowledge areas: Integration Management, Scope Management, Time Management, Cost Management, Quality Management, Human Resources Management, Communications Management, Risk Management, Procurement Management, and Stakeholder Management. These are aimed to support the process groups with inputs and outputs of each process in addition to providing project managers with related tools and techniques (PMI, 2017). The nature of project management is described by PMI (2017) as an iterative process between five categories, known as process groups: ➢ Initiation ➢ Planning ➢ Execution CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 14 ➢ Monitor and Control ➢ Closing These process groups should not be regarded as project lifecycle phases as their integration and interaction in the project vary dependent on its characteristics. Some processes will occur repeatedly, others overlap and all process groups can occur in one single project phase (PMI, 2017). A common way to describe the interaction between the process groups is illustrated in Figure 1. Figure 1. Project process groups adapted from PMI (2013, p. 50) In chapter 2.2.1, several sustainability principles have been suggested to act as guidance for integrating sustainability in project management with varying impact on the different process groups. Furthermore, this study has summarized valuable insights that describe important sustainable activities that should be considered in each process group presented below. Initiation Project managers should initiate dialogues concerning sustainability, including environmental, societal and economic aspects and propose, when possible, solutions beneficial for a global perspective of sustainability and not only locally for the project (Deland, 2009). This includes questioning decisions such as materials and logistics solutions. The author further claims that improved sustainability should be established as a prerequisite for the end-product and not only as a separate condition. Asserting that even though the project manager is not always involved in the phase of developing the project requirements and constraints it is essential to raise sustainability questions and dialogues. This is agreed upon Tharp (2011) who highlights that the initiation of a dialogue concerning sustainability with each client is essential in the process as the customer has the power of deciding the project direction. Hence, Deland (2009) finds it central to prioritize those aspects relevant to the size and complexity of the specific project, as it may not be possible to integrate all aspects of sustainability. Deland (2009) further explains that the goal should be to integrate sustainability to the extent that unsustainable exceptions are minimized. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 15 Tharp (2011) further argues that sustainability commitments needs to be iteratively considered in the communication, stakeholder and risk management process throughout the whole project lifecycle. Silvius et al. (2012) add that in the early stages of projects the manager needs to balance the sustainability constraints besides the traditional constraints. Planning In planning processes, attention should be addressed and directed towards sustainability. The project planning has to include sustainability baseline measurements, tracking and reporting as these activities are some of the most expensive and challenging aspects of sustainability. However, creativity as well as incorporating it in design and planning phases minimizes these challenges (Deland, 2009). Tharp (2011) argues that defining results, conditions, targets as well as success factors connected to sustainability can be achieved through integrating sustainability principles in project plans. Silvius et al. (2012) and Tharp (2011) describe the importance of integrating sustainability in almost every planning process as sustainability options and solutions affect cost-estimations, budgeting, communication as well as risk analysis. As the project plan and its initially stated demands is what formally authorizes a project, it is increasingly important to incorporate sustainability principles as these levels. According to Deland (2009) the backcasting can be useful during the planning phase, a tool promoted by the organization The Natural Step (TNS). In backcasting, project managers define the desired level of sustainability in the end-product and uses backcasting as a way to create a more detailed planning of the way of achieving it. Deland (2009) mentions that the project manager is responsible for educating and informing project members about sustainability and what is expected of them in the project so that everyone is aware of what should be achieved and how. Project managers are also responsible for integrating sustainability conditions and principles in procurement and purchase processes. This includes choosing contractors, sub- contractors and suppliers that can deliver according to the sustainability requirements in the project. When the project group commits and engage in sustainability related questions and issues, project managers perceives that it leads to a higher overall performance according to Deland (2009). Execution Embracing and retaining a systematic approach throughout the execution process is according to Deland (2009) a key feature for the project development group to successfully integrate those requirements and conditions that have been established concerning sustainability. The most essential activity is to spread information and raise awareness of the sustainability concept amongst project members, subcontractors and stakeholders. The project manager constantly needs to observe and inform people involved in the project and use their authority to steer them in the right direction to minimize the use of material, reduce waste and save energy. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 16 Tharp (2011) and PMI (2013) highlight that the execution process can be challenging as opinions and what aspects that are prioritized may vary amongst stakeholders and project members. Supplier and subcontractor selection remains a critical activity within this process (Deland, 2009). Tharp (2011) further describes the vital role of the project manager in this process as the manager are familiar with day-to-day activities and execution, thus enabling a more thorough analyse and perception of issues and situations concerning the social aspect of sustainability. Project culture, norms and traditions may render a project differently which is essential to understand. Challenges will also arise from coordinating all stakeholders towards common goals (Schen et al., 2007). Monitor and Control Deland (2009) asserts that embracing a holistic approach of sustainability aspects and integrating them early as conditions in the project lifecycle will help during this phase. As challenges and issues arise during the project, it may be tempting to change, avoid or decrease the established sustainability commitments, especially those interfering with the traditional constraints. Closing Regardless of how much effort that have been focused on sustainability commitments, the closure process is where the results become definite and visible. Both the project and contract closure is essential activities (Deland, 2009). Concretizing the results is important in order to increase the understanding and awareness of what actions have been taken and what they have resulted in. Deland (2009) clarifies this with an example showing cost savings due to closed-loop processes and LEED-certifications. Moreover, communicating and reporting both quantitative and qualitative results from progress and benefits deriving from the project and the learning connected to sustainability integration is an important and beneficial activity. Continued maintenance and requirements for the operation phase should be handed over in the contract closure phase to ensure that the property is used properly (Deland, 2009). The previous section summarized valuable insights that describe important sustainable activities in each process group. However, the degree of implementation also depends on the project specific context and embeddedness addressed in the following chapter. 2.3 Project interconnectedness While most organizations are permanent structures, projects are to its nature limited processes and temporary endeavours, often viewed by several scholars as unique and solid units separated from their organizational environment and independent from history and future (Sydow, Lindkvist and DeFillippi, 2004; Engwall, 2003; Project Management Institute, 2013). In recent literature however, a context driven theory are emerging where studies claim that projects are embedded in more permanent CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 17 organizational contexts which affect them throughout their lifecycle (Sydow et al., 2004; Blomquist and Packendorff, 1996) and where a project’s history and anticipated future need to be considered (Engwall, 2003; Maaninen-Olsson and Müllern, 2009). Projects are regarded to be both affected by and affect the context it is executed in (Engwall, 2003). Engwall (2003) also calls into question the notion of projects as unique phenomenon and assert that while some procedures are used for the first time and specifically tailored for a project, others are recurring and even standard routines derived from the organizational context. Several project assignments are of a repetitive nature and therefore of little deviation of previous or even preceding projects (Engwall, 2003). Understanding the embeddedness of projects in a wider context is important since actors may refer to the surrounding systems for rules and practices. Actors may even refer to practices as typical or even compulsory which may lead to managerial difficulties if challenged (Sydow et al., 2004). No project is executed in an organizational vacuum and the challenge is to take the context into consideration (Engwall, 2003). While project success often has been determined by a generated sets of success factors, findings suggests that the success of a project is highly dependent on the context it is executed in. One projects approach to success may therefore not be fully applicable in a different context under different circumstances (Engwall, 2003). Even if project success is deemed highly individual, past experiences and knowledge may produce predictability in both behaviour and outcomes of the project thus making it essential to share within parallel as well as future projects (Engwall, 2003; Maaninen-Olsson and Müllern, 2009). In order to transfer knowledge from the project and its context, some knowledge transfer needs to be applied in order to foster inter- project learning (Sydow et al., 2004). If not implemented, projects may face knowledge-related issues such as the need to reinvent solutions that already exist what Sydow et al. (2004) refer to as the “knowledge silo” within projects. 2.4 Theoretical framework The presented theoretical topics can be summarized in a theoretical framework which will help the researchers to analyse the empirical findings, thus fulfilling the aim and research questions. Each theoretical topic can be connected to a research question in order to explain how the theory has been used in the study. Chapter 2.1, ‘Organisational sustainability’ is connected to research question 1, 2 and 3. It provides the research with an understanding of the underlying issues and opportunities related to sustainability work as well as the ambiguity of the sustainability concept in existing literature. Chapter 2.2, ‘Project Management Methodologies’ addresses valuable insights of how sustainability can be integrated in project management practices and explains the role and responsibilities of the project manager, hence it is mainly connected to research question 4. Chapter 2.3, ‘Project interconnectedness’ support and facilitate all four research questions and provide the thesis with insights and relevance of the project context and interconnectedness. The theoretical framework is illustrated in Figure 2. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 18 Figure 2. Illustration of the theoretical framework and the linkage to research questions CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 19 3 Research methodology This chapter aims to describe how the thesis have been conducted in terms of the research methodology and includes descriptions of the research design, research process and data collection. Additionally, the quality of the study and ethical considerations are discussed. 3.1 Research design This thesis has embraced an elaborated form of abductive reasoning called ‘systematic combing’. Dubois and Gadde (2002) describe ‘systematic combining’ as “a non-linear, path dependent process of combining theory and reality” (p. 555). The elaborated abductive approach is an interactive process where empirical findings are matched with theoretical insights and vice-versa. Thus, enabling a deeper understanding of a broad spectrum of aspects related to the phenomenon being studied and not only what was initially requested (Dubois and Gadde, 2002). Going back and forth between theory and data allows questions to evolve and emerge during the course of the research (Bryman and Bell, 2013; Alvesson and Sandberg, 2011; Dubois and Gadde, 2002). The systematic combining is illustrated in Figure 3. Figure 3. Illustration of the systematic approach, adapted from Dubois and Gadde (2002) With regards to the benefits mentioned, systematic combining was considered as an appropriate methodology in this study. The initial research questions were modified and altered as more knowledge and understanding of the organization and its way to conduct business were gained. As the topic and the underlying context were difficult to grasp in an early stage of the process, it was important to let the case evolve over time. Moreover, the approach enabled a deeper understanding of the context CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 20 surrounding the studied case and the openness in its design constantly gave room for new perspectives, ultimately enhancing the results of the study. Embracing a qualitative research approach could be seen as a prerequisite in this study as the aim was to investigate how Sweco Management could integrate sustainability in their projects. To achieve this, the researchers had to investigate how alignment and work processes related to sustainability were perceived and implemented amongst project managers. Furthermore, insights and perceptions of Sweco Management’s sustainability work were also required from customers. According to Bryman and Bell (2015) qualitative research is preferable in studies of explorative character as it enables non-numeric data collection, including subjective data such as thoughts, emotions and personal experiences. This approach was required in order to fully understand the dynamics related to the issues initially described by Sweco Management. Additionally, this study was conducted with a case study design (Bryman and Bell, 2015: Easterby-Smith et al., 2015; Dyer and Wilkins, 1991) considered as an efficient approach, enabling extensive and detailed data collection. In this study, Sweco Management has been conducted as a single case study. Single case studies are applicable in this type of research where there is a need to highlight integrations and interactions between processes and actors. By illustrating this, studies can exemplify how the interplay affects and reflects the social reality of the specific case (Easterby- Smith et al., 2015). Dyer and Wilkins (1991) agree and further argue that single case studies are especially applicable where the goal is to describe and analyse a deep social behaviour in a specific context, thus giving valuable understandings of the underlying variables related to the research. Furthermore, the authors highlight that multiple case studies do not necessarily facilitate more significant or better theory, which is argued by authors such as Eisenhardt (1989) and Yin (2012). Eisenhardt (1991) and Yin (2012) further claim that one of the main drawbacks with single case studies is their lack of generalizability and inability to be replicated in other situations. However, as the context of each case study differ and several intervariables exists, several authors (Dubois and Gadde, 2014; Dyer and Wilkins, 1991) advocates deep- probing analysis with the argument that the essence lies within a greater understanding of the complex context surrounding each case. 3.2 Research process The subject of this study was originally proposed by the researchers, but was furthered developed in collaboration with Sweco Management to match their observed real-life problems and needs related to sustainability. In the beginning of December 2017, a preliminary topic of the report was registered at Chalmers University and a planning report was handed in during January. A general literature study was carried out in the beginning of 2018 in correlation with the planning report, resulting in a overall idea of the topic of interest. The topic was further developed and CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 21 discussed together with supervisors at Chalmers University and Sweco Management, resulting in aim and research questions. The initial idea was to compare projects from each region and see if the sustainability work differentiated, but as the influential level of the project manager and the type of project varied greatly the researchers realised that it would not be possible to achieve within the timeframe. This resulted in that the aim and research questions were modified throughout the study along with the increased understanding of the company and its way to conduct business. In parallel with formulating the interview guides during February, efforts were focused on gathering knowledge about the company and its daily operations. To obtain a general idea of how sustainability was integrated at the corporation and whether there existed any supportive functions that could or should be used in sustainability work, the internal management system Sweco@Work was investigated. As each region of the organization was part of the study, the researchers sent out a request to acquire appropriate interviewees from each region manager and their customers. It was a challenging process to find project managers and customers from each region. Whereas some did not want to participate, others wondered if they were the right person to interview, indicating an insecurity amongst project managers and customers concerning the sustainability area. The empirical data collection was carried out and transcribed during Mars and April in parallel with further literature studies. The theory and empirical findings were then analysed and discussed from which conclusions could be drawn. Lastly, the study recommends how methods can be designed and used at the asserted organization. Figure 4 is a simplified illustration of the research process. Figure 4. Simplified illustration of the research process 3.3 Data Collection This study is, as stated, based on a qualitative character with a single case study design. Data collection is therefore anchored in this decision and includes both primary and secondary data collection. The empirical findings were mainly obtained through semi-structured interviews and participating observations (primary data), together with an investigation of existing methods. This data was systematically CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 22 combined with the theory throughout the process. Secondary data collection includes a comprehensive literature study resulting in a theoretical framework with the aim of supporting the analysis of the empirical findings. Obtaining secondary data is a time- consuming activity, thus contributing with valuable input and already known knowledge of the field of interest (Easterby-Smith, Thorpe and Jackson, 2015). 3.3.1 Literature review A literature research refers to the process of summarizing, analyzing and critically evaluating existing literature with the purpose of synthesizing it in a way that opens up for new perspectives. This does not only justify the interest of conducting the research, but also intends to create an understanding of what is already acknowledged within the field by providing readers with pertinent concepts and terms (Easterby- Smith et al., 2015). In order to create a balanced view of the research topic, the literature review should include a wide range of information and appropriate information sources (Bryman and Bell, 2013). The literature review is conducted before and parallel to the case study and aim to systematically support the case findings with conceptualized meaning (Dubois and Gadde, 2014). All literature collection was carefully accomplished through the search functions Summon, Google scholar, Chalmers library website and Chalmers Library. The information and data collection was primary obtained by scientific papers, student literature, journals, reports and relevant dissertations, resulting in a versatile and comprehensive theory framework. 3.3.2 Interviews In order to obtain valuable non-numeric data, interview studies have been an important method. In this study, semi-structured interviews have been used with the aim of charting the sustainability work of the organization being studied. In semi- structured interviews, a series of questions are established in advance and if the interviewees do not spontaneously come across the desired topic, or if new relevant topics appear, attendant questions can be questioned to utilize the interview (Bryman and Bell, 2015). The questions are mainly of explorative nature and more open than in structured interviews (Easterby-Smith et al., 2015). Semi-structured interviews are common in research where theory is not predetermined, allowing the empirical world to contribute to valuable insights (Bryman and Bell, 2013). In order to achieve a good balance between structure and openness, semi-structured interviews are used as they give the interviewers a greater opportunity to observe the entire context related to the question with regards to articulated tone, body language and facial expression rather than simply obtaining a definite answer. This ultimately gives a more comprehensive insight of the investigated phenomenon and thus, the interviewer can express, without being guided by the interviewer, how the social reality is perceived in relation to the studied subject (Easterby-Smith et al., 2015). The drawback of interviews is that it is a time-consuming activity and it can be challenging to remain objective when analysing and performing interviews (Bryman and Bell, 2013). The performed interviews were CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 23 transcribed, meaning that the spoken words were translated into written answers (Bryman and Bell, 2013). The interviews were recorded with the permission from the interviewee, allowing the researcher to remain objective and focused on the interview situation instead of taking notes (Bryman and Bell, 2013). Transcription of the interviews functions as a early first analysis of the results, which could be beneficial even though it is a time consuming activity (Easterby-Smith et al., 2015). Eighteen interviews contributed to this study, from which semi-structured interviews were conducted with twelve project managers and six customers, all spread out on the national regions. The interviewees of this study were not randomly sampled as each regional manager selected project managers appropriated for the study. However, the researchers had three criteria regarding the selection to mitigate a biased selection from the company. This were that each region provided the study with two project managers, one that worked in a project with a sustainability focus and one without sustainability focus. This sampling method is called purposive sampling and was found suitable for the study as the researchers found it important to include people that is working actively with sustainability and people who does not. One of the disadvantages with this sampling method is that it is hard to remain unbiased and that the reliability of the study can be lowered (Robinson, 2013). As the study includes project managers who do not explicitly or actively work with sustainability, these disadvantages could be considered mitigated not yet avoided. All interviews were conducted in Swedish as this was the interviewees’ native language, thus avoiding insecurity and confusion amongst project managers. A majority of the interviews were carried out through Skype for Business. This was not considered to have a negative impact as it is a common established work method at the organization, which the project managers are used to incorporate in their daily operation. The interview guide for the project managers can be found in Appendix A and the interview guide for customers in Appendix B. An overview of the interviewees is presented in Table 3. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 24 Table 3. Overview of the interviewees Title Date of interview Time of interview [min] Project Manager A 2018-03-06 38:35 Project Manager B 2018-03-06 37:07 Project Manager C 2018-03-09 53:45 Project Manager D 2018-03-09 37:07 Project Manager E 2018-03-15 31:34 Project Manager F & Project Manager L 2018-03-18 49:47 Project Manager G 2018-03-16 57:00 Project Manager H 2018-03-19 35:55 Project Manager I 2018-03-20 41:53 Project Manager J 2018-03-23 43:46 Project Manager K 2018-03-27 38:12 Customer A 2018-04-03 18:04 Customer D 2018-04-23 13:09 Customer E 2018-03-19 25:02 Customer G 2018-03-28 18:53 Customer H 2018-04-11 17:17 Customer J 2018-04-10 18:19 CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 25 3.3.3 Participant observation During the course of the study, the researchers have been located at the company's office landscape in Gothenburg, thus gaining valuable insight into how employees interact and work on a daily basis. Additionally, the researchers participated in and observed meetings with explicit focus on sustainability, held by sustainability coordinators from each region. In order to study and grasp what is happening with individuals, groups or organizations, one who performs a research can participate in its daily operation and by listening, observing, and asking questions to receive an insight in the way business are conducted (Easterby-Smith et al., 2015). Casual conversations with colleagues where there is no explicit focus on a certain topic is considered to provide a more balanced view of a phenomenon, hence, considered to be a good complement to interview studies to understand what is truly taking place in an organization (Easterby-Smith et al., 2015). Establishing a structured system of how to gather the observed information might be beneficial as it eases the process of validating the output. Criticism similar to those of qualitative studies, is the heavily reliance of the observers’ subjectivity and how this person interpret and perceives situations. However, Bell and Waters (2015) argue that the explicitly best method of understanding the context influencing an organization, its groups and individuals, is to be a part of as well as being accepted in its social structure. With regards to these aspect, the researchers, with support of the supervisor, decided that it was beneficial if the researchers were physically located at Sweco Management’s office in Gothenburg during the study. 3.4 Quality of study To ensure quality in qualitative research, trustworthiness and authenticity need to be assessed and evaluated (Bryman, 2011). According to Bryman (2011) authenticity covers general questions concerning science policy. In order to ensure the authenticity of this study, the case, methods and results have been described and managed in the most transparent, honest and fair way possible. Trustworthiness are comprised of four different criteria, each have an equivalent in quantitative research (Bryman, 2011). ➢ Credibility (in preference to internal validity) ➢ Transferability (in preference to external validity and generalisability) ➢ Dependability (in preference to reliability) ➢ Confirmability (in preference to objectivity) Credibility reflects on how congruent the results are with reality (Bryman, 2011; Shenton, 2004). Several measures can be made to promote confidence that the phenomena have been accurately recorded (Shenton, 2004). The adoption of research method and data collection method have been successfully utilized in comparable CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 26 studies and therefore deemed appropriate to answer the line of questioning in this study. An early familiarity with the organisation was made through investigation of appropriate documents and internal systems before the first data collection session took place. Moreover, each interviewee was given the opportunity to refuse participation when approached in order to ensure honesty when contributing data. The anonymity of the interviewees was emphasised along with the statement that there were no right or wrong answers to the questions. This meant that the interviewees could be honest and frank without fearing consequences from the organization. However, purposive sampling was used as the organization provided the study with appropriate interviewees. Thus, the organization's own bias cannot be neglected. Through the prolonged engagement and participation in the daily activity of the organization, a high degree of agreement between concepts and observations can be ensured, thus contributing to the credibility of the study. Triangulation was incorporated in the study through the use of different data collection methods besides interviews with customers from various organizations. Debriefing sessions were conducted with the supervisor and others with the same role within the corporate group. Such sessions helped draw attention to alternative approaches along with providing the opportunity to test ideas and findings. Lastly, an examination of previous research findings were made in order to relate this study’s findings to existing knowledge. Transferability refers to the extent in which the findings can be generalized to other contexts and situations (Bryman, 2011; Shenton, 2004). Bryman (2011) mentions that it is important to provide a sufficiently “thick description” in order for the reader to determine the extent of which the findings are transferable to another situation. However, Shenton (2004) mentions that some authors note that information deemed as unimportant, and therefore unaddressed, may be critical for the reader. In order to provide sufficiently “thick description” the number of organizations taking part in the study are given along with the data collection method, number and length of data collection sessions as well as the time period the study was carried out. However, the degree of which the findings can be applied to other situations has not been focused upon as the study was not meant to be generalized in other contexts than at Sweco Management. However, the findings of the study may be applied within other organizations within the Sweco Group as they use the same internal methods and may have similar problems with integrating sustainability in projects. In order to address dependability, Bryman (2011) asserts that all phases of the research process should be reported in detail. This enables auditing to assess the quality of the procedures chosen and how they have been applied (Bryman, 2011). The dependability of the study can therefore be deemed high as the phases of the research process are thoroughly explained. Moreover, feedback has been received from both the study’s supervisors and other student’s familiar with master thesis writing through a peer-review. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 27 Efforts to remain objective permeated throughout the study in order to ensure confirmability. The study was conducted with prior knowledge of the subject, however, with no prior knowledge of the company's context and work methods. Therefore, when more knowledge was gained of the subject, the systematic combining approach enabled an interactive process where empirical findings were matched with theoretical insights and vice-versa. The theoretical framework has therefore not affected the creation of the analysis and conclusions, instead it has been shaped to understand the empirical findings. Moreover, triangulation is emphasised by (Shenton, 2004) in order to promote confirmability and reduce investigator bias which this study has implemented in order to remain objective. 3.5 Ethical conduct Several measures have been taken to ensure that this thesis has been conducted in an ethically correct manner. All interviewees were informed that their participation in the study were voluntary and anonymous. A description of the study and the interview questions were sent to the participants prior to the interview to ensure that the interviewees were aware of the subject and the process. Each participant was asked of the permission to record the interview and was informed that their answers could be cited in the report. No classified information has been used in this study as a protection of the confidentiality. The use of material obtained from the intranet has been approved by the company. CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 28 4 Empirical findings This chapter presents the empirical findings from the conducted case study. It starts with presenting the results from investigating the management system Sweco@Work and continues with the perception of the sustainability concept, the value of sustainability and the expectations on project managers. Lastly it presents the current procedures of integrating sustainability in projects, the perspectives of Sweco Management’s customers and the benefits and challenges related to sustainability work. 4.1 Sweco@Work Sweco Sweden is responsible for all routine texts and common tools that describe what employees at the different business units should do in the projects and assignments, i.e. routines such as assignment plans containing possible risk and environmental assessments. In turn, Sweco Management is responsible for the guidelines and any company requirements that describe how project managers can or should work. Furthermore, Sweco@Work has supportive features that may be helpful to employees. Several documents were found on the intranet, but the following were identified as particularly interesting from a sustainability perspective: Routine ➢ Environmental management in the assignment plan Supporting document / guidance ➢ Sustainability Book 2010 ➢ Environmental laws However, most documents that exist concerning sustainability have a strong emphasis on environmental aspects, which could complicate the search for such documents. Environmental management presented guidance on environmental and sustainability issues along with questions that could be relevant to project managers when planning projects. This further referred to supporting guide documents such as environmental laws and the Sustainability Book, which has not been revised or updated since 2010. The Sustainability Book is described as a guiding document for integrating sustainability in projects. A previous survey conducted by the company in 2011 showed that employees demanded more communication, knowledge retrieval and concrete tools relevant to sustainability work. It was also found that the Sustainability Book was supposed to be updated and revised, but this does not seem to have been carried out. In addition, a checklist should have been prepared for sustainability in projects and an integration of sustainability into the templates used in the company. The environmental management in the assignment plan reucurre in the process groups Initiation and Planning and are mainly built on four main questions: CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 29 1. What are the conditions? 2. Are there any significant environmental/sustainability aspects? 3. Can environmental goals be defined? 4. How should the environmental management be implemented? Other tools that are used and promoted by the corporation is the use of the Sustainable Development Goals (SDG). 4.2 Perceptions of the sustainability concept Even though the perception of sustainability varies amongst project managers, there is a unanimous agreement of the importance of sustainability. Project manager F argues that working sustainably and with sustainability should be unquestionable as it is about “saving the world for the sake of our lives and the ones of the future generations”. Additionally, claiming that enough proof has been provided by science and research regarding the importance of sustainability and that everyone has to contribute to this global issue. The long-term perspective of creating an enhanced world for future generations as well as integrating the three aspects of ecological, economic and social parameters, are common denominators when the project managers define the concept of sustainability. Project manager D states that working with sustainability includes “more than just ecological issues. Ecological, economic as well as social aspects of the society should be taken into account.” “Everything from energy-saving to people being treated with dignity, everyone must have the same conditions and we must protect the environment. In summary, thinking about the future, that's how I think." - Project manager A “It's about reducing footprints, creating a better world or at least not a worse one, for our future generations.” - Project manager B Building and contributing to societies where future generations can use different values and functions in a better way than today and with less impact on the future are described as meaningful parameters. Project manager A emphasis a holistic view of sustainability, claiming that all three aspects should be taken into account to avoid that one or more parameters are compromised. On the other hand, project manager F states that “looking at the term sustainability from the gigantic holistic perspective also makes it hard to substantialize and elucidate it in your projects”. Furthermore, the manager highlights that the concept needs to be adopted and customized into each project as the uniqueness of each project needs to be considered. This is agreed upon by two project managers, B and C, whom highlight the importance of continuously finding new perspectives and angles of the sustainability concept. The ambiguity of the sustainability concept is identified as one of its main challenges explained by project manager E ”Finding a common place for sustainability is difficult, because people are used to different things and people’s references are different". This refers to the differentiated view of sustainability, where the term is perceived as a subjective matter by the project managers. However, the majority of the managers agree that CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 30 there is a necessity for a greater understanding of the concept so that it can be more easily understood, elucidated and consciously used in projects. Project manager B, C and E consider sustainability as a natural part of their daily work, something that is included in every situation where it is possible. Others find it hard to concretize how they incorporate it into their different roles and daily work. As stated by project manager G "it’s too gigantic to think about every aspect in every situation, it ends up in you thinking about nothing, you don’t know where to start." This was also identified by project manager F describing that people frequently ask questions such as “where do I begin? How do I incorporate it? And how can I use it more concretely in my projects?” In order to increase awareness and clarify the sustainability concept several suggestions of internal methods were identified. Education, including workshops, seminars and e-learning were presented by the project managers as meaningful tools. The project managers described that internal workshops are used in several regions and that the SDG’s have a central role in discussions. Seminars concerning sustainability with charismatic, engaging people and mentorship program are further explained as meaningful tools by the project managers. Organizational culture was not explicitly discussed as a subject during interviews, but was mentioned by project manager B and L. The project managers highlight the importance of having an organizational culture that embrace and enable knowledge sharing. This is agreed upon project manager K, who think that recommendations and suggestions concerning sustainability should be shared and visualized within the organization. During coffee breaks and in the office landscape, employees tend to focus on ecological issues when discussions concerning sustainability were initiated. When the researchers present the subject of the study a majority of the people became uncomfortable when discussing the subject, mentioning it as an ambiguous concept they have a hard time to relate to. Some mention that they focus explicitly on ecological aspects, while others find a great interest in the social parameters. The confusion of the subject is obvious, as there was a continuously need for an elaborated explanation when the researchers mention that the subject is related to sustainability in projects. These findings reveal that there is an insecurity and confusion of its ambiguity. 4.3 The value of sustainability All project managers acknowledge the potential of working with sustainability. However, it is pointed out that time, consistency and patience is needed as the value- enhancing effect involves a long-term perspective. There has according to project manager A always existed a value with working with sustainability issues, but the focus has changed over time along with the evolvement of the concept. Project manager L identified a commercial value of incorporating sustainability with the motivation that it drives innovation, moves business processes forward, solves issues CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 31 with more efficient processes and reduces waste. Thus, generating more profit and an added value for both customers and consultant organizations. In line with this, project manager I thinks that “sustainability creates a fairly big weight in a company if you work with it in a substantial way, visualizing it concretely into something manageable.” Furthermore, project manager L argues that the upcoming generation are more aware and informed within the field of sustainability and want to work with these issues. Therefore, it is necessary for companies to provide this opportunity in order to remain an attractive employer. Sustainability responsibility is according to project manager F and D an obvious factor when being a major actor on the market. “We must include sustainability in all projects and convince our customers in the importance of doing so. Otherwise, I feel that we don’t take our responsibility. Being a large actor in the market includes taking responsibility and acting accordingly.” - Project manager F Or as expressed by project manager E “if you gonna talk the talk, you have to walk the walk.” This is agreed by project manager D, adding that the perception is that this responsibility is not yet fulfilled by the company. Other identified values mentioned by project manager A, B, C and H is for companies to meet current obligations and future market demands. This is especially addressed as a significant value for public actors whom generally are more pressured to meet specific requirements provided by the government. The value for Sweco Management in this process is described as the ability to cope and facilitate customer requirements. Another empirical finding described as an essential value by a majority of the project managers is sustainability as a requirement to maintain market positions. Project manager B argues that the sustainability concept could be used as a competitive advantage a few years ago, but has now shifted into an inevitable factor. This is agreed by other respondents, for example, project manager K who claims that: “It is not a question whether or not to work with sustainability, it is more or less taken for granted. Sometimes it’s even requested in the procurement process.” Project manager A symbolizes the process with what happened with the concept of quality. Referring to a time when there was no requirement to work with quality, but today having a quality assurance system does not give value itself, it is basically a prerequisite to acquire business. An external image as a sustainable company was furtherly identified as an essential value. According to project manager E companies profile themselves as sustainable, but fail in its attempt to execute and accomplish their projects accordingly. Project manager H states with an example, claiming that customers occasionally install solar panels on rooftops of their properties, not because it is economically or ecological reasonable, but because it generates an image of sustainability awareness. Although all respondents find it valuable to work with CHALMERS Architecture and Civil Engineering, Master’s Thesis AECX30-18-26 © Markus Bohm Öhlund & Jonna Smiding, 2018 32 sustainability, it is often mentioned that the specific value strongly depends on the customer and type of project. 4.4 Expectations on project managers The concept of sustainability involves a lot of possibilities and freedom according to project manager L who asserts that Sweco Management does not know to handle it, what to do with it or how to maximize it. This makes it difficult to sell sustainability to customers for project managers according to project manager G. As of today, project managers incorporate sustainability into projects if time is given according to project manager C. In addition, sustainability is not always regarded as an individual task by project manager C but rather as delivering a whole package to the customer based on knowledge and expertise from the whole corporate group. This is further emphasised by project manager G stating that Sweco need to start taking advantage of the resources available within the organization and start teaching each other about sustainability through knowledge management. Moreover, project manager A, E and F state that it is clear that Sweco Management has an ambition to become more sustainable through activities and actions which have intensified during the last couple of years. Project manager A asserts that it is clear that Sweco Management want to emphasise the importance of the sustainability concept. Project manager F states that the intensified focus has led to sustainability coordinators in each region, business plans and clear goals related to the concept which is perceived as a step in the right direction. Nevertheless, they agree with the majority, that it has to be concretized further; what should be done and how. Moreover, none of the respondents acknowledge any clear directives or expectations of how they as project managers should work with sustainability. Each project is regarded as unique according to project manager B, C, E and F where the ambition level and extent of sustainability work differs. However, it is also mentioned by project manager E that sustainability is “a natural part of my work but I