bidding for megaprojects: a case study of the rome olympic...
TRANSCRIPT
Department of Business and Management Course: Strategic Management of Innovation
Bidding for Megaprojects: A Case Study of the Rome Olympic Games 2024
ADVISOR
Prof. Andrea Prencipe
CANDIDATE
Giorgia Pacifico
665991
CO-ADVISOR
Prof. Luca Giustiniano
ACCADEMIC YEAR 2015/2016
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Thispageisleftblankonpurpose.
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INDEXCHAPTERI:MEGAPROJECTSANDTHEELEMENTSTHATSETTLETHEM
1.1Theroleoftheprojectmanager………………………………………………..………….………………………………9
1.2WhatareMegaprojects……………………………………………………………………………………....................11
1.3MegaProjectschallenges:KeynotespeakerMarkThurston………………………………………………..13
1.3.1FactorsrelatedtoMegaProjects………………………………………………………………..…………….14
1.3.2TheHolisticapproach………………………………………………………………………………..……………..16
1.4Howknowledgeissharedamongprojects:resourcesandtheroleofartefacts…………………..21
1.5Whatisabid……………………………………………………………………………………………………………..…………25
1.6Thebidprocess………………………………………………………………………………………………………..………….26
CHAPTERII:WHYCITIESDECIDETOHOSTMEGAEVENTS:THECANDIDATUREOFROMEFORTHE
OLYMPICGAMES2024
2.1MegaprojectsandMega-events:Whycitiesdecidetohosttheseevents……………………..…….…29
2.1.2Financialsustainabilityandbalancingcostsandbenefits…………………………………………….30
2.1.3GovernanceIssues………………………………………………………………………………………………………31
2.1.4Endorsementforenrichingthepositiveeffectsofmega-events…….…………………………...33
2.2TheBidprocessfortheOlympicGames…………………………………………………………………………………34
2.2.1ApplicationProcess……………………………………………………………………………………………..………37
2.2.2.LearningProspects–stage1…………………………………………………………………………..……..…..38
2.2.3Governance,legalandvenuefunding……………………………………………………..…………………..38
2.2.4Learningprospects–stage2..………………………………………………………………………………………39
2.2.5Gamesdelivery,experienceandvenuelegacy-stage3……………………………………………….39
2.2.6Evaluationcommission…………………………………………………………………………..……………………40
2.3CandidatureprocessOlympicGames2024………………………………………………..…………………………40
2.4Candidatecitiestothe2024Games……………………………………………………………..………………………42
2.5ThecandidatureofRome2024:Whatwerethekeypoints…………………………………………………..43
2.6BenefitsfrombiddingfortheOlympicGames……………………………………………………..……………….51
2.7BenefitsofhostingtheOlympicGames……………………………………………………………………………..…52
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CHAPTERIII:OUTCOMESFROMHOSTINGOLYMPICGAMESANDHOWKNOWLEDGEISSHAREDAMONGHOSTINGCITIES3.1Romewithdrawsfrom2024Games...…………………………………………………….………….…………………..54
3.2CostandcostoverrunattheGames……………………………………………………….….….………………..…….56
3.3TheefficiencyoftheOlympicGamesKnowledgeManagementProgram:
Hascostoverrunslowdownovertime?.....................................................................................59
3.4TheimpactofOlympicGamesoncommunities…………………………………………………..…….…..………61
3.4.1Socio-economicimpact…………………………………………………………………………………..…...……….61
3.4.2Socio-culturalimpact………………………………………………………………………………..…………………..62
3.4.3PhysicalImpact…………………………………………………………………………………………..…………………63
3.4.4PoliticalImpact…………………………………………………………………………………………..……...…………64
3.5Recommendationforthepathahead…………………………………………………………………..………………..64
CONCLUSIONS………………………………………………………………………………………….......….………………….…....67
REFERENCES……………………………………………………………………………………………………….………………..………70
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TABLESANDFIGURES
Table1.1CharacteristicsoftheProjectManager.Source:PrincipidiProjectManagement
(ElisabettaSimeoni,GiovanniSerpelloni,Chapterone,pag.10).
Figure1.1AtypologyofartefactsSource:ResolvingConflictsinProblem-Solving:Systemsof
ArtefactsintheDevelopmentofNewRoutines.(Cacciatori,2012).
Figure1.2AbidProcess.Source:BidWritingforProjectManagers(DavidCleden2011.Page36).
ITT=Invitationtotender
Figure1.3Abidprocess(Stages3bto5).Source:BidWritingforProjectManagers(DavidCleden,
2011)
Fig.2.1Manycountriesorganizetheirownnationalselectionprocesstoidentifyasinglecityto
enterPhase1oftheIOCbidprocess.(Biddingfordevelopment,2014).
Fig2.2TheIOChasintroducedavarietyoftoolsandresourcesforbidderstousethroughouteach
phaseofthebidprocess.(Biddingfordevelopment,2014).
Figure2.3:RomaCandidateCityOlympics2024.Source:Candidaturefilestage1:Vision,Games
ConceptandStrategy,2015.
Figure2.3StrategicDevelopmentPlanforthecityofRome,2011.Source:(Candidaturefilestage
1:Vision,ConceptandStrategy,2015)
Figure2.4UrbanAgenda2025forthecityofRomeSource:(Candidaturefilestage1:Vision,
ConceptandStrategy,2015).
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Table3.1:Actualoutturnsports-relatedcostsoftheOlympicGames1960-2016,in2015USD
Source:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.
Table3.2TheOlympicGameshavethelargestcostoverrunofanytypeoflarge-scaleproject,real
termsSource:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.
Table3.3:Sport-relatedcostoverrunintheGamespre-1999andpost-1999,realterms.The
differenceisstatisticallysignificant(p=0.0101).Source:TheOxfordOlympicStudy2016:Costand
CostOverrunattheGames,2016.
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ABSTRACT
ThisthesisinvestigatesthenatureofMegaprojectsandthedifferentphasesto
undertakeinordertodeliverastrongperformance.Thein-depthanalysisallowedto
discoverindetailalltheelementsconstructingabiddingprocessthatotherwisewould
behiddenfromthegeneralknowledge.Thankstocasestudies,research,papersand
thewitnessofoneofthemostrenownedprojectmanagerithasbeenpossibleto
coveralltheaspectboundedwiththeoutcomesofthesemegaprojects.
Subsequently,thecaseanalysisofthecandidatureofRomefortheGamesof2024
providedarealexampleofhowtoughisforcitiesmanagingsuchassignments.Itwill
beexposedthebiddingprocessandthemanifestproposedbythecityofRometo
supportitscandidaturefortheGamesandtheimpactsthesecouldhaveonthecity
andcommunities.Furthermore,itwillbehighlightedthepositiveandnegativeresults
derivingfromthemaswellasprosandconsattributedtohostcitiesthatoverseeto
deliversuchprojects.Inthefinalsection,willbeexplainedthereasonsthatledthecity
ofRometoretractfromtheOlympics2024withaglanceonamoregeneralvision,
analyzingwhycitiesdecidetonothostingtheGameswithdrawingtheircandidature.
Then,itwillbepresentedasectiondedicatedtothecitiestransferofknowledgefrom
eventstoevents,anditwillbeshownhowperformancesimprovedfrompast
Olympics,thankstotheknowledgesharing.Inadditionpotentialenhancementswillbe
listedforfuturebiddersinordertoavoidfurthererrorsandwasteofmoneytohost
theGames.Tosupporttheseproposalsstatisticsshowshowmuchcitiessaved,in
termsofmoney,andimprovedtheirperformancewithhugedifferences,innumbers,
since1999whentheOlympicGamesKnowledgeManagementframeworkwas
introduced.Thecontributethisthesisgivestothegeneralliteratureishighlightedin
descriptionofalltheaspectsrelatedtomegaprojectsandtherecommendationin
ordertoimprovethepositiveoutcomesoftheGamesandmegaprojectsingeneral,
reportingrealexampleswiththeissuesfacedbythecitiesandprojectmanagers.From
thebiddingtothedeliveryphase,thereareaseriesofelementstoconsiderthat
cannotbetakenforgranted.Thebidprocesstakes,mostofthetime,severalyears
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beforebeingapproved.Atfirst,projectmanagerstrytouseavariationofexisting
biddingroutines,verifyingthattheycanbeadoptedforthenewbid,settingthemas
anobjectivetoreach.Then,acostanalysisisimplemented,duetothefactthat
managershavetoplanhowmuchtheyneedtospendforadeterminedproject.Finally,
theprocessisimplemented,oftenwithverylimitedsuccess,especiallywhenthe
biddingisforhugeprojects.Herecomesthechallengesproject-managersface,such
as,realizingtheendresultoftheproject,achievingfinancialobjectives,communicate
anyissuesencounteredinthecourseoftheproject,adoptrightdecisioninorderto
reachproject’spointsandabandonifpurposescannotbereached.Theobstaclesto
overcomemaketheseprojectsprodigiousbuthardtomanage.Themostcommonis
thecostoverrun.Dealingwithmegaprojects,especiallyOlympics,oftenincurincost
overrun,leadingprojectmanagerstofindasolutiontoovercomethisbarrierthatmost
ofthetimestransformtheprojectinaliabilityforbothcitiesandcitizens.Forthese
reasons,inordertotrytodeliverthemostmagnificentperformanceovertimethereis
theneedtoimposestrictrulesthatwillallowtoreachthisobjective.
Specifically,myworksuggestthatorganizingcommitteesshouldcontrolandmanage,
thankstoparticularorganizations,theflowsofmoneyaddressedtotheconstruction
ofinfrastructures,neededfortheevents,andgeneralexpendituresboundedtothis
typeofprojects.Inaddition,theyshouldensurethattherearenotanymore“ghosts
amenities”,becausetheywouldrepresentjustawasteofmoney,paidbycitizensor
sponsoredbytheoneswhokindlydonatesittothehostcity.Summarizing,super-
visioningtheliquidity’sflowsshallbeimplementedtoovercometheaforementioned
challengesandobstaclesthatconstitutethemainissuewhenconsideringthe
Olympics.
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CHAPTERI:MEGAPROJECTSANDTHEELEMENTSTHATSETTLETHEM
Inthisfirstsectionofthepaperwewillgivesomenotionsaboutthefigureofthe
projectmanager;theresponsibilitiesanddegreeofinvolvementinthedevelopmentof
aproject.Then,willbeenlightenedwhatmegaprojectsare,providinginformationand
toolsthatmeasurestheimpacttheyhaveoncitizen’slivesandcitiesurban
developmentandtherisksassociatedtothem.Subsequently,willbereportedan
exampleofarenownedprojectmanager,MarkThurston,whomanagedseveral
megaprojectsandfacedalotofchallengesinordertoaccomplishhisobjectives,then
willbetakenintoaccounttheelementscharacterizingmegaprojects,concludingwith
anintroductionofthebidprocess.
1.1 TheRoleoftheProjectManager
Projectsarenotatout-courtrealizationofcomplexartefacts(bridges,buildings);they
aretheaccomplishmentofoneormoreobjectives,whichareexpectedtogenerate
precisebenefits.Theprojectisnotadeadlinetorespectneitheraseriesofactivitiesor
taskstobeperformed.Itbecomesthesatisfactionoftheinternalandexternal
customers,whicharetheonesbenefittingfromagoodservice.
Thevisionofanenlargedprojectconceptinvolvesaparallelextensionoffieldsand
areasofapplication,suchasaprogramofresearch,developmentofsystemsand
technologies,reorganizationoftheinternalprocesses.Thesearesomeexamplesof
modernprojectswecanfindinindustry,banks,publicadministration,universities,etc.
Inthiscontext,theProjectManagerisresponsiblefortheoperationalmanagementof
theproject,withoutlimitinghisworktothepureandsimple“technicalsupervision”.In
ordertoensuretheoverallsuccessoftheprojectthathasbeenentrustedtobenefits
andobjectives,itisessentialfortheProjectManagertoadoptanapproachthatis
completeandcomprehensive.Thus,theimportanceoftheProjectManageris
increasingduetotalentsandmanagementskills,whichenablinganunderstandable
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andeffectiveoversightoftheproject.TheProjectManagerisresponsibleforthe
qualityandfinancialmanagementoftheproject;hemanagesrisksassociatedwiththe
projectresources(tangibleandintangible),humanresourcesanddifferententities
besidesthebusiness.Apartfromtechnicalandmanagerialskills,theProjectManager
musttakeonstakeholders;dealwiththeTopManagement,negotiatewithsuppliers
andpotentialclients.Alltheseelementsleadtodevelopingtheprofessionalfigureof
theProjectManager.Heistheformalmanageroftheprojectasawholeandmust
ensurethattheendresultsareachievedinlinewiththecosts,timeandquality.His
rolediffersmarkedlyfromtraditionalbusinessrolesinvolvedwithintheworkprocess
throughtheuseofformalauthority.Hisroleisbasedontheauthorityderivedfromits
powersandrequiresamanagementstyleorientedtosocialrelationships,orthe
constructionandmaintenanceofit,bothwithteamprojectandotherorganizational
actors(Baglierietal.1999).Themainobjectivesthatthisactormustimplementare:
• Realizingtheendresultoftheproject
• Achievingfinancialobjectives
• Communicateanyissuesencounteredinthecourseoftheproject
• Adoptrightdecisioninordertoreachproject’spoints
• Abandonifpurposescannotbereached
TobeappointedProjectManagerisrequiredaformallegitimacyoftherolethrougha
preciseassignment.Atthisstage,theProjectManagerwillhavetodemonstratethe
abilitytocommunicateandnegotiatetheirassignmentwiththedeveloperofthe
project.FromnowontherewillbenointerferenceontheProjectManager’sdecisions
concerningthedevelopmentoftheproject.Hewillbeassessedonthebasisofthe
resultachievedoronintermediateevaluationindexes.Oneofthemechanismsfor
evaluationoftheprojectbythecontractorwillcoverthefinancialaspect,whichmust
notdeviatefromtheex-anteforecast.Inthecaseinwhichtheprojectfails,the
contractorwilldetermineiftheelementsthatdidnotovercamedependsonthe
projectmanager.Furthermore,theProjectManagerhastomeetanumberofspecial
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skillsespeciallyonpersonnelmanagement,assetplanning,controlsystemandtheuse
ofinformationsystems.HereceivestotaldelegationbytheTopManagement,being
responsibleformanagingallprojectinterfaces(customers,managers,suppliers,
partners,teametc.).Hence,thereareseveralprerequisitesrequiredfortheProject
Managerregardinghissupervisionandinterpersonaltechniques.Asthetablebelow
shows,therearethreefundamentalcharacteristicstobetakenintoaccountinorder
todevelopthissolidfiguresuchasmanagerial,relationalandpersonal.
Table1.1CharacteristicsoftheProjectManager.Source:PrincipidiProjectManagement
(ElisabettaSimeoni,GiovanniSerpelloni,Chapterone,pag.10).
Forwhatitconcerntechnicalcharacteristics,therearedivergingopinions.According
tomostexperts,isnotrequiredfortheprojectmanagertohaveexpertiserelatedto
thesubjectoftheproject.Hemustbeagreatmanagerandfindthebestprofessionals
figuresabletoachievetheprojectsobjectivesinanintegratedandcoordinated
manner.Beforegoingindeeponhowprojectsaremanagedwewillintroduceinthe
nextparagraphwhatareMegaProjects,thatwillbethefocusofouranalysisinthis
paper.Wewillthenseehowtheroleoftheprojectmanagerisappliedtoprojectsof
suchsize.
1.2 WhatareMegaProjects
“MegacomesfromtheGreekword“mega”andmeanslarge,vast,highandimposing.
Theyrepresentcomplex,large-scaleendeavorsthatcostabilliondollarsormore,take
manyyearstodevelopandbuild,involveprivateandpublicstakeholders,andimpact
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millionsofpeople”(BentFlyvbjerg,2014).Hirschman(1995:vii,xi)calledsuch
projects“privilegedparticlesofthedevelopmentprocessandpointedoutthatoften
theyaredesignedtoambitiouslychangethestructureofsociety,asopposedtominor
andmoreconventionalprojectsthatusedtofitintopre-existingstructuresanddonot
attempttomodifythese”.Hence,MegaProjectsarenotalargervisionofminor
projects.Theycoveracompletelydifferentstrainofprojectsintermsofcomplexity,
lead-timeaspiration,andstakeholderinvolvement.Subsequently,theyarealsovery
differentanddifficulttomanage.Megaprojectsareincreasinglyusedasthefavorite
transfermodelforgoodsandservicesacrossarangeofbusinesssectorslike
infrastructure,IT,bigscienceandmajorevents.Samplesofmegaprojectsareairports,
high-speedraillines,damsandtheOlympics.Eveniftheseprojectsaremadeinorder
toimprovecommunity’squalitylife,suchasconstructingbridgesthatallow
connectionsfromoneplacetoanother,ratherthanorganizingamegaeventthatwill
providemanyjobs,theyhaveseveralweakpointsthataretoughtoovercomeand
couldleadtothefailureoftheseMegaProjects.Theseare:
• Riskduetolongplanninghorizonsandcomplexboundaries.
• Scarceplannersandmanagersexperiencethatleadstoleavingleadership
fragile.
• Decision-makingandplanningaretypicallymulti-actorprocessesinvolving
multiplestakeholderswithconflictinginterests.
• Non-standardtechnologyanddesignthatmakestheprojectuniqueand
preventlearningfromotherprojects.
• Earlyovercommitmentthatmakesimpossibletolookforalternativeanalysis
• Changeoftheprojectscope
• Costoverrunsanddelays
Nowadaysprojectmanagerlivesinstuckwiththemanagementofmegaprojects;they
donotknowhowtodeliverthemsuccessfully,therefore,theytendtobreakand
reorganizeagain,andsometimesrefinancing,inattempttohitproblemsanddeliver
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someversionoftheinitiallyscheduledproject.Thus,isnoteasytodrivemegaprojects.
Successisdefinedastheprojectbeingdeliveredontime,budgetandbenefits.But,as
theevidenceindicates,aroundoneoftenMegaProjectsisonbudget,onscheduleand
onbenefits.ManagingMegaProjectssuchasahugeinfrastructureenterpriseorplant
developmentrequiresbetterqualityprojectmanagementcontrolsinordertoavoid
excessivecostsandscheduleoverruns.Earlyorganizationandplanningofconstruction
MegaProjectssetthestageforeverythingthattakesplaceaftertheproject
authorization.Oncematerials,machineryandmanpowerentertheframe,muchofthe
planningelasticitydisappears.Hence,ishardtobeontrackwiththepre-established
plans.Bybeingsmartaboutprojectdelivery,contractingstrategiesandbyputting
appropriateprojectmanagementcontrolsinplace,manyprojectriskscanbe
eliminatedormitigated.Furthermore,isusefulforprojectmanagerstosharetheir
knowledgeamongprojectsinordertohaveafullpictureoftheproblemthereare
goingtoface,inparticular,isusefulhavingmoreresourcesandtimesavedtocount
on.Inthenextsections,wewillgothroughMegaProject’schallengesreportedby
examplesandadirectdepositionbyoneofthemostfamousUKprojectmanager:
MarkThurston.
1.3 MegaProjectsChallenges:KeynotespeakerMarkThurston
OnMay19th2016LUISSGuidoCarliUniversityinRomehostedthe4thInternational
Workshopdedicatedtothetheme“MegaProjects:TheorymeetsPractice”,organized
byLUISSBusinessSchool(representedbyProfessorAndreaPrencipeandMariangela
Barbuzzi)incollaborationwiththeProjectManagementInstitute(representedby
CarlaMessikomer)andPMIRomeItalyChapter(towhichwerepresentPresident
SergioGerosaandPastPresidentAnnaMariaFelici).Itwastheoccasionforameeting
ofstudyinganddeepeningbetweentheworldofresearch,universitiesandlarge
companiescommittedtobigglobalprojects.Duringtheevent,severalargumentswere
faced;inparticular,aspectsdirectlybundledtoprojectsofbigdimensions.The
keynotespeaker,MarkThurston,detectedsomefactorsmorespecificallyrelatedto
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MegaProjects:scalefactors,complexity,regulation,politicsandinterface.Allofthat
basedonlongpersonalexperience,puttingevidenceonfourprojectsofhuge
dimensionssuchasLondonOlympicGames2012,realizationofa25kmtunnelright
belowtheThames(Tidewayproject)andtherealizationofahighwayfromLondonto
LeedsandManchester(HighSpeed2project).Furthermore,MarkThurstonexhibited
theinterestingparallelbetweentheconceptof“homeostasis”foralivingsystemand
themodelingofthevariablesettingmanagementsuchastomaintainthestabilityofa
complexsystem,appliedinthefieldofmanagementoflargeprojects.Thatargument
hasbeenaninterestingdebatewiththegreatparticipationofthosepresent.Hethen
setsoutthefactorsofgreatestinfluenceoflargeprojects,dividedintofour
perspectivesofgreaterimpact:peopleandleadership,governanceandcontrols,
organizationandculture,outsideworld.Thedeepeningissuesbroughttofocusthe
debateontopicsrelatedtoriskmanagement,theimportanceofthedefinitionand
scopeofcommunicationanddisciplinenecessarytoconductinanefficientwaythese
companies.
1.3.1 FactorsrelatedtoMegaProjects
Accordingtothespeaker,thetransferofknowledgeisoneofthekeypointstobe
takenintoconsiderationwhenwetalkaboutMegaProjects.Takingtheexampleof
Terminal5atHeathrowAirportinLondon,itwasconsideredthefirsttimefrommany
yearswhereprimeorganization,supplychainandgovernmentregulatorscame
togetherandgotitright.TherehasbeenalotofresearcharoundTerminal5project
andithasbeenseenasaplatformforthingsthathavegoneandhappenedsince.Also,
theOlympicswerebuiltonallthegoodworkingaspectsthatweredoneoutat
Heathrow.TheseMegaProjectsaresignificantundertakingsthatgovernments,
agencies,countrieshavetakenonandthesefiveelements:scalefactors,complexity,
regulation,politicsandinterfacearemeanttobethefoundationforsuccess.Theyare
thethingsthatscancomplexity,andbecauseofthatscaleandcomplexity,thereis
invariablyhugepoliticaldimensionandtheUKGovernmenthasbeenattheheartof
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fundingmanyoftheprojectsthatwillbelistedbelow.Inevitably,thescancomplexity
leadstointerfacesandtheseinterfacesarenotnecessarilytechnical;theycouldbe
alsoorganizational(thechanneltunnelthatisbetweennations).Ifwetakeastep
back,wewoulddefineMegaProjectstheonesthathavethosecharacteristics.
MarkThurstonwillthenconsiderfourprojectsdividedintodifferentstages:
• LondonOlympicgames2012-Completed
• Crossrail-70%Completed
• TidewayTunnel-Juststartedtheconstructionphase
• Highspeedtwo–ThirdHybridBillreadings
Startingfromthefirstone,theOlympicgamesinLondonwasa9billionpound
scheme,highlytime-critical.LookingatmanyOlympiccitiesaroundtheworld,they
spentahugeamountofmoneymainlyoninfrastructureandtransportsthathadno
realsustainablebase.Thegamesinterestedagiantamountofnotjustnational,but
globalmediainterest.TheimportanceofmanagingthisMegaProjectwasgivenbythe
partnersinthepreliminaryparliamentorganizationthatinvolvedMarkandhisteam
fromtheoutsetrightthroughtocompletion.Thefollowingone,Cross-rail,isabout
70%doneincontractsandthisisrightgoingonunderneathcentralLondonprovidinga
newEast/Westrailwaythatwilltransformthetravellingexperienceforpeopleinthe
SoutheastofEngland.Thisisabigdealthatwillallowfurthertransportationforthose
whotravelseverydaybybusesorbytubesystem,whicharebusyalldays,everyday,
allyearround.TheTidewayTunnelhasaverydifferentscheme.Theactualphysical
work,itsheartisthreebigtunnelingcontracts.It'seffectivelyprovidingamassive
sewerundertheThamesRiver.ThetunnelwillfollowthealignmentoftheThames
RivergoingundertheHouseofParliament.Theoutsetisnowmovingawayfromthe
developmentphase.Finally,turningtothelastproject,andthisverymuchisamega
projectbuiltintheUKfordecades.TheHybridBillhasgonethroughthehouseof
parliamenttogetapprovaltobuildthisrailway.ItisthelargestHybridBillinitiativefor
UKlegislation.Itisonlyjustgettingintoitsdeliveryphaseandyetthisprojecthas
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alreadyexistedfouryears.Soit'stakenfouryearsofdevelopment.Havingpointed
thatout,whatisthetakeawayfromthesemajorprojects?Theanswer,accordingto
therelatoristotakeaholisticapproach.
1.3.2 TheHolisticapproach
ProjectManagershavetoseethingsasonecompletewhole.ManyofthoseMega
Projectsthathavebeenbrokendownintotoomanysmallerpiecesorinfacthave
beentreatedasmultiple,individualornotrelatedprojectsfindingthemselvesin
trouble.Forthatreason,theauthorwantedtounderlinetheimportanceoftheholistic
integratedapproach,whetheritisprogrammanagementorsomekindofportfolio
management,ifthereisanorganizationinvolvedintheseMegaProjects,ithastobe
takenintoconsiderationthatcomplexityhasbeinganattributetoMegaProjects.That
complexityinevitablydrivesahighdegreeofambiguityintheseprojectsatdifferent
times.Theorganizationsthatgetinvolvedindesigning,buildinganddeliveringthese
majorprojectswanttogetthemselvesinaplacewheretheyarecomfortablewiththe
extentofthatcomplexity.Thefactthatatvariouspointsinthelifeoftheprogram
therewillbeerrorsofambiguityisperfectlynormal.Generally,organizationstrytoget
clarityontoomanyissuestoosoonleadingtofocusonthewrongthings.Then,these
ideasconsideredhaveopposingprioritiesandbecomemonsters.Theytouchthelives
ofthousandsofpeople,theyaffectcommunities,takehumantoo;effectivelyand
divideitinfourpockets.Thefirstone,peopleandleadership,areabsolutelypivotal.
Goingonsomecontrols,themachinerybywhichthesemegaprojectsarebeingdone
andcontrolledisabsolutelymaterial.Arrivingattherightorganizationcultureis
imperative.Thelastpointisthemainissuewiththeoutsideworld.Whenpeoplework
onmegaprojects,theyareallconsumed.Theyabsolutelyconsumealmostevery
minuteofpeople’sday,sevendaysaweek.Formanypersons,ithadbeenacareer-
definingopportunitytoworkonsomeofthesethings,butactuallythereisamuch
biggerworldoutthere.Hence,startingwithpeopleintheindustry,thespeaker
focusedonhowpeoplemanageinteractionswiththesuppliersandotherentitiesin
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thefield,puttingthemrightatthehearthoftheproject’ssuccess.Continuityand
successionintheprojectmanagementexperiencearekeyfactors.Somepeoplespend
five,eventenyearsoftheircareeronsomeofthesemegaprojects,andtheytakea
longtimetocomplete.Ontopofthat,therearesomehumancomponentsaround
succession,continuity,andresilienceoftheorganization.Experienceandpersonality,
forexample,Ifwewanttotakealookatsomeoftheseniorleaders,executivesthat
havebeeninvolvedinsomeofthesemegaprojectsandseewheretheycomefromor
whattheyhavedonewecanconsider,forinstance,TerryMorgan,ChairmanandChief
ExecutiveofCrossrail.Theirpersonality,charisma,drive,theyfocusabsolutelyinthe
organization.AndyMitchellwhoisnowtheChiefExecutiveoftheSubwayTunnel
spentfiveyearsonCross-railtakenthatlearning;hehadtakenthatexperience.Heis
nowapplyingthethingsheliked,changingthingsasexpectedto.Butexperienceand
personalityoftheseleadersineachbigprogramseitheronclientsideoronsupplier
sideisabsolutelyhalfsuccess.Markputemphasisonthefactthatrelationships
betweentheteamareessentialinordertodevelopandimplementtheprojectin
whichpeopleareworkingon.Thehighdegreeofpersonaltrust,courage,honesty,
oftenveryintimateconversations,makespossibletobesurethatthingsaredonein
therightway.Peoplecouldnotbeonlypolitical,guarded,playtoomanygamesand
freezeeverysingledayintermsofgettingthisjobcompleted.Thatisjustallbucket,
thirstbucketaroundpeopleandleadership.Guidanceandcontrol,asmentioned
above,areconsideredthemachineryofmegaprojects,gettingtheseisabsolutelythe
key.Toseehowrelentlesstheseare,itissufficienttothinkaboutmarketreports,
projectmanagementandmonthlyreportsthathavetobedone.Itisimportantdoit
everymonthforfiveyearsandthatrequiressignificantpersonaldisciplineandthat
relentlessdisciplinewrittenacrossmegaprojectisabsolutelythecrucial.Authority
delegationisanothersignificantelement.LookingatwhatishappeningtodayinHigh-
Speedtwo,theyhadnoauthorityfromtheUKgovernment,soeverysignificant
decisiontheywanttotake,theygottogobacktomajesty'streasury.
Itishugelytimeconsuming,hugelyfrustratingbutthereisaveryfirmgovernment
processwiththeUKgovernmentbywhichtheyreleasededicationalauthorityto
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agencybywhichtimetoconsume.Riskisreallyatthehearthofmakingastrategy
beforemanagingmegaprojects.Whatisgovernment’srequirementtoquenchits
appetiteandmanagingrisk?Goingbacktocomplexityinterfacesandscale,these
thingsarejustawashwithcommercialtime,reputational.Gettingthatappetite
controlriskrightisfundamental.Scopeandbaselineareabsolutelyessentialwhen
thinkingaboutmanagingchange;forinstance,maintainingHigh-Speedtwoprojects
controlledwastough.Stillnotgotahybridbillandauthority,theProjectmanageris
alreadyonbaselineversionsix.Itishowbaselineisrevisedthatbaselinesixtimesto
getwhereitistoday,showingtherelentlessdisciplinerequiredtomanagechange,but
itisjustbreakingthemegaprojectdownintomanageablechunksatthetime.The
projectwascalledtwo-four-one.Twoyearstoeffectivelygetasignready,fouryearsto
build,andayeartogetreadyforbanks.Peoplewhoworkedonitunderstoodwhat
weretheydoingandhoweffectivewasthenextbigfaith,tocometoworkeveryday
ononeofthesebigprojectsandthenstillgotnineyears,fourmonthsand20daysto
go,takesalotofdiscipline.Atleastifispossibletobreakthethingsdownwithchunks
ofpeople;ithelpsthesupplychain,government,andteamtounderstandwherethey
sitatthetime.But,thisisdifferentforpeopleandleadership.Thisisverymuchabout
thequestionsandanswersoftheorganization.Fiverings,theOlympicmovement,
peopleunderstoodwhytheywenttoworkeveryday.Whenmanagerswereworking
onit,itwaspossibletoseethestadiumscomeoutofthegroundandfeelthething
beingbuiltaroundthem,thatsenseofidentityandrandomcultureisveryclearand
important.Then,incentivesandalignment,that’sthroughgovernmentand
government’sdepartment;thepartoftheorganizationsthatguaranteesthesupply
chain.Thesemegaprojectsemploythousandsofpeople.ThebetterjobfortheProject
Managerishelpingindividualsunderstandwhereheorshefitintheorganization,
whentheirpersonalcontribution,whatitdoesisoverendday.Anotherpointwould
be,healthandsafety.TakingintoconsiderationtheLondonOlympicgamesin2012,
projectmanagershadnofatalities,wasthefirsttimetheOlympicmovementthatno
onehaddiedduringconstructionphase.Inessence,20peoplediedinBeijing.Looking
intoorganizationalculture,healthandsafety,well-being,allthepointsrightatthe
19
heartoftheorganizationarematerialintermsofmakingsurethatpeoplegohome
whentheyfinishuntiltheycometoworkagain.
Anadditionalaspectthatisfundamentalisthedeliverymodel.Tomakesurethat95%
oftheorganizationknowsexactlywhytheyarethere,whattheyarebringing,they
havetoknowexactlywhatthereareworkingon,ispossibletoseejusta5%ofthe
peopletobestillscratchingtheirhead,workingouthowtherearegoingtogettheir
taskdone.
Finally,theoutsideworld;theseMegaProjectstouchedthelivesofmanypeople.In
theOlympics,therewere500boroughs,bothCrossrailandtheTidewayTunnelwhich
expandeast-westacrossLondon,touchedmanyofthelocalboroughs,councils,
communities,businessesandignoringthemandnotinvestingtimeinmanagingthat
relationshipisattheheartofsuccess.Creatingadvocacyisreallyimportant.Agreat
exampleofthisistheLondonGames.ItwassupposedtobeseenasaUK’sproject,but
itwasofcourseseen,asitwasaLondon’sproject.
But,oneofthesmartestthingsMurkThurstonandhisteamdidwastotakethetorch
aroundthecountryandhadthisbigtorchrelay,wentallaroundtheUK.Theyhave
seenothercitiesdoit,touchingcommunitiesallaroundtheUK,andmakethewhole
countryfeelthatitwaspartofwhatwasgoingoninLondon.Advocacyandsupport
createdacrosstheUKwereverymaterial.Understandingthecompetitionandthe
accesstotalentandpeopleisanimportantexternalfactor.But,therewerealsomany
divergentopinions.TheGovernmentcouldhavedonealotwith£30billion.There
werealotofhospitalstheycouldhavebuilt,schoolsandthingsaboutsecurityand
policeforce,so,Markandhisteamhadtomakesometoughdecisionsandthemedia
werealloverthis.Thesemegaprojectsknowsomeofthatmediaintrusion,thatmedia
commentary.Itcouldbeverydamagingandequallygetthemediaonyourside;for
thatreason,creatingadvocacycanbeverysignificant.
Funds,governmentsandunionsareotherkeyplayers.Maybethosekeyindividual
areashavebeenallresearched,butonlyifwestoodbackandthoughtaboutit,the
questionnow,aboutlearning,isthisreflectionthatallofthosefactorsareinplay
collectivelyinteractingwitheachotheralmostallthetimeinthesemegaprojects.Itis
20
thisideathattheyarealmostlikealivingsystem;theygetonournextgoingsystem
steering.ThatMegaProjectisaverylivedynamicsystemandbreathinganddoes
differentthingsjustlikeaspeopledoeseverysingledayandthatwhatistheheartof
people’slearning.
Atthispoint,thespeakerunderlinesthecoreofhisspeechthatisbasedonhow
mergestheoryandpracticetogether.Forthatreason,heexplainedthatthereisa
frameworkformegaprojectsthatactuallymanagersandpeoplecouldlearnfrom,
creatingareferencepointfromwhichwepeoplethinkthereissomethingtobe
thoughtaboutandresearchedinprobably,evenmore,detail.Thatiswhathecallsthe
ideaofhomeostasis.Itisabouthowsystems,particularlylivingsystemsmaintainsome
senseofbalanceandequilibriumwhenallthevariablesareinplayallthetime.This
ideaofcreatinghomeostasismoreformegaprojectsiswhenwehavetakenthese
stepsbackwithaheartofourlearning.Hereferredtotheidea,"Allthesemega
projectsaremonsters.Theyhavemultipletentacles,theytouchthousandsoflivesand
actuallytoputallthoseinternalandexternalthingstogetheratthesametime."
Peoplehaveaverysignificantchallengeontheirhands.Keepingallofthose,which
nowmayhavebeentranslatedtokeepmostplatesspinningatthesametime,isreally
ahighaerialexperienceofthesuccessforthisMegaProjects.Thatiswhatmakes
peoplethemasterofsomewhat.But,whatstruckpeopleisbeingawareofthese
answers,understandtheyareallinplayandatanypointintimetheycandialupand
downattentionandleadershipenergytoallthesedifferentfactors.Thereisnoright
andwrong.Aswehaveseen,elementsareconsistentlybeingappliedbetweenthe
fourprojects,becauseoftheportabilityoflearningacrossmegaprojects.Wehave
seensignificantdeviationsfromwhathasbeendoneontheOlympicsandinsome
levelsofdifferentprojects.Eveniftherearedifferententities,thosethingsarestillat
playinthehomeostasisroleofmegaprojectsandprojectmanagerstrytokeepallof
theminbalance.Beingflexibleandseenthecorporationasawholewiththesupply
chain,clientorganization,stakeholdersanddevelopmentteamleadstowardtheheart
ofthedeliveryofsuccess.
21
Insummary,thesemegaprojectshaveinternalandexternalparametersthatare
applied,theyarepartofrestrictionsandarereallyhardtoset.Itisaboutthesecritical
issuesandknowingwhentofocusonwhat,isanartform.Continuingonthe
importanceofsharingknowledgeandthetransferoflearning,inthenextparagraph,
wewillseehowthesearesharedamongprojectsandwhattypesofresourcesare
usedinordertoimplementtheperformanceresult.
1.4 Howknowledgeissharedamongprojects:Resourcesandtheroleofartefacts
Transferringlearningsuccessfullyacrossprojectshasbeenforalonganaspiration
amongprojectmanagers.Thedifficultiesinreachingthisobjectivearecreatedbythe
verynatureofprojectsthemselves:theirseparationfromstableorganizationsand
theiruniqueness.Despitesignificanteffortsbyfirmstodevelopreliablesystemsto
transferlearning,itisraretofindanorganizationthatdoesnotdesiretobeableto
transferknowledgeinordertogainbenefits.InthecontextofMegaprojects,it
becomesevenmorechallenging;thisisduethesizeandcomplexityofMegaprojects
thatmakeitverydifficulttodefineactorsandfactorsthatinfluencetheperformance
ofaproject.Theconditionisfurthermorecomplicatedbymuchofthelearningthatis
transferredbetweenMegaprojects,beingcircumstantialinnature.Someacademic
studiesformulatedrigorouslythefoundationsofMegaproject’sperformancebutthis
farandfewamongandtendtorelyonveryancientsources.Beforedelvingintohow
knowledgeissharedamongprojects,wehavetoconsiderseveralfactorsthatdrive
projectmanagerstomakedecisions.Firstofall,wehavetounderstandhowfirms
storagetheirknowledge.
Basedontheresource-basedviewofthefirm(Penrose1980)competenciesarekey
elementsinthesurvivalandgrowthofcompanies.Fromanorganizationalpointof
view,skillsaretheresultofalearningprocessthatleadstobuildingnewroutines.
Thesearethemainelementsthatrepresentorganizationalmemorywithregardsto
firm’soperations.Inthisway,firmsrememberbydoing.Thepresenceofhigherorder
routines,capableofmodifyingoperatingroutines,areseenastheperilousmeansby
22
whichfirmsareabletoadapttheircompetenciestosurviveinavaryingandturbulent
environment.Atthecorebothofthenormaloperationsoffirmsandtheirabilityto
produceoradaptchanges,therearethereforestableorganizationalprocesses.
However,firmsthatoperatemainlywithprojects,hasarguedthatthetemporaryand
ofteninter-organizationalnatureofprojectsmakesitdifficulttodeveloproutines,
preventingoneoftheprincipalmeansthroughwhichorganizationsrememberwhat
theyhavelearnt.Ifweconsidertwodifferentfirms,oneanadvertisingfirmandthe
otheroneITfirm,weknowthattheyhavedifferentwaysofstoringknowledge.The
advertisingcompanyneedsindividualexpertiseasakeysourceofcompetitive
advantage,theyhavetobecreativeandusecurrentknowledgeinnewcreativeways,
whileintheITfirmtheimportanceistoaccumulatetechnicalandorganizational
competencies.Hence,stickingtopreviousandestablishedcompetenciesandroutines
ismuchstrongerintheITCompanythanintheadvertisingone.Inthosecontextsin
whichcompaniesareimportantdepositsofinformation,theinitialreactiontothe
perceiveddifficultyofencryptinglearninghasbeentorelyeitherontechnologyoron
individuals.Thedifferencebetweenthesetwoformsisthatthefirstoneistacit,andit
reliesonthebehaveoftheindividual,thesecondonecanbeeasilystored,thanksto
theevidencethatitgives,thisisembodiedinobjectssuchasdatabaseorsoftware
modules,thatcanbereusedandsuitableforall.Thisoppositepointofviewbetween
extremelycodifiedandextremelytacitleadstoanintensedebatethatstatesthe
extenttowhichITcanbeusedtostoreknowledgeandcomplementhumanmemory
(BannonandKuutti,1996,PaoliandPrencipe,2003;SchultzeandLeidner,2002;Swan
andScarbrough,2001).Otherresearchstatesthatestablishedorganizational
processeshaveasignificantroleevenincomplexproject-basedenvironments.Forthat
reason,whenlookingatproject-basedorganizing,itisimportanttodistinguish
betweenprojectsandbusinessprocesses.Theformeraimsatdelivery,designand
productionofspecificproduct;thelattercoordinatestheaccessofeachprojectto
firm-specificresources,suchasexpertise.Studiesconfirmedthatevenifthereare
discontinuitiesofprojectsoperations,firmsareabletodeveloproutinesthat
constituteeconomiesofrepetitionacrosssimilarprojects.Inthisway,thebiddingand
23
projectexecutioncostsdiminishforlaterprojectsinspecificlinesofbusinessstages,
suchasoutsourcing,build-operate-transfer.Firmsusuallytakesolutioninoneindustry
andreadaptthatsolutionforotherproblemsinsimilarindustries.Theimportantisnot
thequestion“what”or“howmany”memoriesworksinprojects,theimportanceis
givenbyhowtheyinteractandenablethetransferofadaptationoflearningfrom
projecttoproject.
Forthatreasons,afirmshouldfocusmoreon“rememberbydoing”insteadof
focusingon“learningbydoing”.Thelearningcurveimpliesanalterationofthe
knowledge;ittakesplaceinafirm’smemorythatuseslearningasasymboltomodify
knowledge,takingforappropriatetheprocessthroughwhichthisisdeliveredtoand
recoveredfromtheorganization’smemory(Cacciatori,2012).Theprocessthatdefines
theseelementscanbebetterunderstoodexplainingtheroleplayedbyartefacts.
Severalauthors(D’adderio,Howard-Grenville,PentlandandRueter,Rerupand
Feldman,Salvato,TurnerandFern2012)identifiedtwodimensionsofartefacts.The
firstdimensioncanbedividedinSpeakingandSilentartefacts;theseconddimension
ingenerictooccupationandspecifictooccupation.Puttingtheminatableweobtain:
Figure1.1AtypologyofartefactsSource:ResolvingConflictsinProblem-Solving:SystemsofArtefactsintheDevelopmentofNewRoutines.(Cacciatori,2012).
Speakingartefactsincludesvisualortextualrepresentationofknowledge,suchas
manuals,reportsandmathematicalformulas.Theyincorporateproduct
24
representationgivenbydrawings,sketchesandvisualprototypesandprocess
representation,formedbyproceduresandchecklist.Speakingartefactsare
fundamentalbecausefacilitatetheexaminationoftheroleofartefactsinthe
resolutionofproblemsandreasoningaspectofroutines.Theirevidenceallowsusers
toeasilyadaptthistypeofknowledgetonewdevelopingroutines.Theyareeasyto
manipulate,thus,evolveinparallelwiththeproblem-solvingactivity.Onthecontrary,
ifartefactsarenotflexible,sonoteasytoadapt,isdifficulttodevelopnewroutines.In
thiscase,theorganization’smembershavetodecidewhethertochangetheirpersonal
behaviororchangingtheartefacts.Therigidityofspeakingartefactsenablesusersto
understandthedriveandfunctionofasystemleadingtosearchsolutiontoaproblem
theyencounter,favoringsoalternativesfromthisrigidity.
Silentartifactsdonotcontaintextualorvisualrepresentationofknowledgebutthey
embodyandmakeknowledgeavailableforusethankstotheirnotabilityin
instrumentsandequipment,butinawaythatislesseasilytoworkwiththanis
possiblewithspeakingartefacts.Themaintaskofsilentartefactsistopermitpeople
tocollaborateinordertodevelopanewproductoranewproject.Thisisduetotheir
“actionaffordances”,ortheactionsuggestedbytheirshape.Forexample,handle
shapessuggestaliftingmovementoradownwardpressureifitisadoorhandle.
Hence,weassociatesilentartefactsasdeductiveobjects;thankstothat,peoplecan
easilyfigureouttheirscope.Studiesshowthatintroducingsilentartefactswithdirect
affordancestodesiredactionsstrengthenthestabilityofroutines,ratherthan
reasoningaboutartefacts,weassociatewiththemexperience-basedaction
possibilities.
Finally,artefactsspecifictooccupationrepresentthetoolsofthetradeofan
occupationorgroupofcloselyrelatedoccupations.Examplesofspecificsilent
artefactsincludedthescalpelusedbysurgeonsorbrushusedbyartists.Examplesof
speakingartefactsspecifictooccupationaretechnicaldrawingsusedbyarchitectsor
engineers.Artefactscanbedevelopedforaspecificoccupationorcanbereadaptedto
similaroccupations.Themembersofanorganizationindependentlyoftheirspecific
occupationuseartefactsgenerictooccupation.Forexample,officefurnitureisan
25
effectivestandardofgenericsilentartefacts.Amongspeakingartefacts,organizational
proceduresanalyzedabovearetypicallygenerictooccupations–althoughthe
definitionoftheprocedures,carryingoutataskmaybeoccupationspecific.Artefacts
embodyandexhibitaparticularsetofprinciples,suggestingactionthathastobe
takenandiscoherentwiththevaluesoftheorganization.Forinstance,anopenspace
officepolicyencouragesworkcolleaguestodropinoneother.Thus,artefactswitha
strongsymbolicdimensionhaveanormativesignificanceandcanbeseenasapartof
theostensiveaspectoforganizationalroutine.Thatsaid,wecollectalltheelements
thatallowustounderstandthebiddingprocess.
1.5 WhatisaBid
TheBidisthedealer'sreplytoaclient’srequestforaproject;theanswertothe
questionspresentedbytheclient.Itisreferredalsotoaproposal;itisabinding
document,firstlyevaluatedbytheusertoestablishiftheworkshouldbeendowed
andifitis,itbecomesabinderonthepartofthesupplierastowhatwillbedone.
Therearemanytypesofbids,astherearemanydifferentprojects.Thebidding
processisakeysalesactivityformostservicesandproductsorientedorganizations.
Theprinciplesofbidwritingapplyequallyacrossthescalefromverysmalltoverylarge
project.Focusingonthecommercialbidresultsoneoftheseveralpossiblesuppliers
beingawardedacontracttoexecuteaprojectoraprogramofwork.However,many
oftheprinciplestobediscussedremainvalidoutsideofbusinesscontext,suchas
whendivingforaninternalprojectorundertakinganon-commercialbasis.Thebid
processcontrolsthewaythebidgroupprepares,maturesandsendsthetendertothe
customer.Ifwellprepared,thebidproposalrepresentsaperfectblueprintforsuccess.
Mostsuccessfulproposalsarenotcasualresults.Theyarecreatedfollowingstructured
bidprocessaimedtoguidethebidteamintherightdirection.Thekeyofhavingan
establishedbidprocessisessentialtoensurethatstepsarefollowedandthingsare
doneintherightwayattherighttime.
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1.6 Thebiddingprocess
Althougheachapplicationisunique,thebidmustensurequalityandreliability.Itasks
thesamepertinentquestions,althoughtheanswerisdifferentineachcase.Thebid
processisaguidingframeworkbutitisnotaprescriptivejoin-the-dotsformula.The
figuresbelowshoweachsteptobeundertakewhenorganizationsstartabidding
process:
Figure1.2AbidProcess.Source:BidWritingforProjectManagers(DavidCleden2011.Page36)ITT=Invitationtotender
27
Figure1.3Abidprocess(Stages3bto5).Source:BidWritingforProjectManagers(DavidCleden,2011)
Referringtothefiguresaboveandapplyingthetoolsmentionedintheprevious
paragraphs,thebiddingprocesscanbesummarizedinthreebigperiods.
Thefirstone,seethecompanyusingavariationofitsexistingbiddingroutines,
verifyingiftheycanbeadoptedforthenewbid,andsetsthen,anobjectivetoreach.
28
Thisperiodmakesitpossibletoidentifytheresourcesthatfirmsmakeavailableto
agents.Inaddition,thisphaseconsiderstheso-called“stretching”oftheartefacts
alreadyusedinpreviousroutinesinordertomakethemsupportnoveloutlineof
interaction.
Duringthesecondperiod,agentsusetheresourcesattheirdisposalinorderto
introduceanewbiddingprocess.Inthisperioditis,therefore,possibletoexamine
howorganizationstakeplace.Inthisstage,acostanalysisisimplemented,thisdueto
thefactthatmanagershavetoplanhowmuchtheyneedtospendforacertainproject
andhowmuchtheyneedinordertogettheresourcesrequiredforthedevelopment
oftheassignment.
Inthethirdperiod,thecompanyattemptedtoimplementthenewprocess,withvery
limitedsuccess–makingitpossibletocompareandcontrastareasofsuccessor
failure.Ifthebiddingrequestisdeclined,managerscanstorethatfailureintotheir
organization’smemoryasalessonlearnt.Onthecontrary,ifthebidproposalwins,a
transferofknowledgetakesplacetotheincomingteam,andtheycanreusethis
winningstrategyfornextperformances.Finally,oncetheprojectisapproved,thereis
aninitiationofit.
Conclusion
Inthenextchapter,wewillgothroughthecoreofouranalysistakinginto
considerationthegeneralbiddingprocessthatcitieshavetofollowinordertobe
electedtoparticipatetotheOlympics,thebenefitsofhostingtheseeventsandthe
casestudyreferredtothecandidatureofRomefortheOlympicgamesof2024.
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CHAPTERII:WHYCITIESBIDTOHOSTMEGAEVENTS:THECANDIDATUREOFROMEFORTHEOLYMPICGAMES2024
Inthissegmentwewilldelveintothecoreanalysisofthispaper,wewillgothrough
thephasesthatarerequiredinordertosubmitthecandidaturefortheOlympic
Games.Beforethat,wewillseethereasonsthatleadcitiestohostMega-events,in
particularMega-sportingeventsliketheOlympics.Hence,thechallengesthosecities
havetofaceandallthepositiveoutcomesthattheycouldgainfromthistypeof
occasions.WewillthenseethecaseofthecandidatureofRomefortheOlympic
Gamesof2024withthevisionandtheobjectivesproposedbytheCONI(Comitato
OlimpicoNazionaleItaliano)inordertomakethebidvalidfortheIOC(International
OlympicCommittee).Furthermore,wewillhighlightthebiddingprocessboundedto
thecandidatureandtheproposalarrangedtobepresentedtotheIOC.Finally,wewill
analyzethelegacyoftheMega-sportseventsgivingaglanceonhowthebidproposal
couldrepresentanimprovementforthepolicymakingofthecity.
2.1MegaprojectsandMega-events:Whycitiesdecidetohosttheseevents
Mega-eventsareeventswithaworldwideaudience.Theyaredifferentinclassand
organization,butthepurposeisonthosethathaveawanderingcharacter,resulting
fromdistinctivesites,andareawardedthroughabiddingprocess.Theseincorporate
theWorldCups,World’sFairandtheOlympicGames.Since1951megasportevents
haveoutstrippedothersortsofmega-eventsintermsoffrequencyandcommercial
investment,agrowthrelatedtoincreasingmediaattentionandworldwideinfluence.
Thereisavigorouscompetitionforhostingamega-event,whichisbroadlyseenasthe
chancetopromotethecityandthecountryattheglobalscale.Mega-eventsalsotook
placeinthesouthgloberecently:theOlympicsheldinBrazilin2016andinMexico
Cityin1968.Thisnewpredispositionincreasesinquiriesinthespecificcontextoffast
growingcitiesinemergingcountries,specificallytheimportanceofdistributingfunds
30
tobuildsportamenitiesandworld-classinfrastructureswheretheessentialneedsof
theurbanpopulationarenotmet,atleastofsizeableproportionofresidents(Pillar&
Bass,2009).
Twomainfeaturesleadscitiestohostmega-events.First,theyarewindowsforthe
promotionofnationalunityandthecoherentarticulationofnationalidentity.An
effectivehostingoffersinternationalmarketing,reputationandlegitimacytothehost
cityandtothenation,whichisespeciallydesiredbyemergingeconomieseagerto
provethattheyhavebecomemajorplayersontheglobalstage(Blackandvander
Westhuizen,2004).Secondly,hostingamega-sporteventrestsonthepromiseofan
economicwindfallcoupledwithasubstantialurbanmakeover(Essex&Chalkley,
1998).Theideaisthattheinternationalexposuregeneratedbymega-eventsattracts
newresourcesoffundingtohostcities.Thespecificfacilities(e.g.stadium)mandatory
bymega-sportingeventscanbecomemilestonesintheurbanbackgroundofatown.
Afarthese,hostingmega-eventsofferstheincentivefortheimplementationof
ambitiousurbanprojects,suchasrenovationofpublictransportinfrastructure(e.g.,
roads,airport,transportationsystem)andundertakingregenerationinitiativesinmany
partsofthecity.TheOlympicsheldinBarcelonain1992isconsideredafascinating
exampleofhowtoblendamega-eventwithmetropolitanmegaprojects:therebirthof
anabandonedportandindustrialareatohostsportsfacilitiesandlifthospitality
capacityallowedacitytorecombinewithitswaterfrontanddevelopatouristand
entertainingareaintheinnercity.Thus,biddingformega-eventandarrangingit
usuallystimulateamajorurbantransformation,whichmayhavebeenintheplansbut
delayedforvariouscauses.
2.1.2Financialsustainabilityandbalancingcostsandbenefits
Ingeneral,Mega-Projectsarefundedbybothprivateandpublicinvestments,ina
combinationthatisassumedtoassurefinancialsustainability.Althoughitisnow
acknowledgedthatpublic-privatepartnershipsinmegaprojectprovisionareacrucial
31
elementofmega-events,theyhavenotprovenappropriateforensuringeconomic
sustainabilityinthelongterm.
Ingeneral,publicfundsareusedtocreateatleastapercentageofthelarge-scale
projectsrequiredtohostathletesandsportssupporters,forinstance,transport
infrastructurewhetherupgradedornovel.ThereasonisthatMega-eventsare
expectedtoproducefuturerevenuethroughamultipleeffect,i.e.thestimulationof
localcommercialactivityresultinginsignificantmediumtolong-termlocaleconomic
progress.Itisessentialtonotehoweverthatmegaprojects(e.g.,massivestadiums,
biggerhospitalitycapability,etc.)systematicallyencountercostoverruns(Flyvbjerget
al.2003;Altshuler,Luberoff2003)andareregularlynotusedanylongeroncethe
eventisconcluded.Forexamplearenewedroadsystemmaybeover-calibratedfor
habitualtrafficdrifts.Moreover,infrastructureneedsmaintenancethatmayturnout
tobealiabilityontheurbanbudget.
Moresignificantly,mega-eventsusuallyfailtodeliverthemassiveeconomicbonuses
projectedbypre-eventvaluations.Theexpectedcostsandbenefitsanalysis,often
craftedbyactivists,generallyattendtobeoffthescratch,asmostautonomous
researchillustrate.Whilethedirectinfluenceofmega-eventscanbeoutstanding,
involvingvastspectators,thenetimpactonrealeconomicvariables,e.g.,taxablesales,
employment,personalincome,hasbeensystematicallyoverestimated(Matheson,
2006).Certaineconomicsegments,inparticulartourism,takeadvantagesbutthe
multipleseffectswishedfortoadvancetheentireeconomyhaverarelyconcretized.
2.1.3Governanceissues
Theevaluationwhethertobidforamega-eventfostersessentialissuesforacityor
nation,becausealthoughtheyareusuallyofferedasservingthegeneralpublic,they
tendtoservetogroupsinterest.Itappearsparticularlysignificanttoweighthechoices
inemergingcountrieswherelimitedresourcesmightbebetterspentonproviding
fundamentalgoodsandservices.
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Whenthedecisionismade,arrangingamega-eventalsoraisesgovernanceissues.
Doesthecityhavethenecessarycompetencetogetthemega-eventofftheground?
Whowilltakecontrol?Howwillcoordinationbetweendifferentagenciesbeassured?
Ithasbeendetectedthatthereisaspecificmarket,madeupofcompaniesand
professionalsworkingattheinternationalscale,whichoffertheirassistancesand
knowledge.Thisslot,expertinshapinginternationalmegasportevents,oftenhas
closeconnectionstointernationalcommitteesandfederationsreliableforthebidding
processandmonitoringoftheevents(Surborgetal.2008).Beyondthesestrategic
players,firmsfocusedintourismandmediahaveanattentionininvestinginmega-
eventsastheycanperformancealeadingroleinguidingthechoiceofcorrelated
projectstobebuiltandalsothemannerinwhichtheyarefundedandimplemented.
Currentexperiencedisplaysthatprivateinterestsarelikelytodriveevent
administration,aconditionthatpresentsseriouschallengesforgovernments.Indeed,
thedistributionofspecialistanddecision-makingpowerfrompublicinstitutionsto
privateactorscannegativelydisturbresponsibilityandtransparency.Moreover,
becausetheplanningoflargescaleprojectsformega-sporteventsaresubjecttostrict
deadlines,theyusuallyinvolve“fast-track”decision-makingandimplementation
processes,inordertoensuretheaccomplishmentofprojectsintime.Theprocedure
canviolateoncivilrights,existingregulation,environmentalsustainabilityand
democracy.
Mediareportageandthetotalstudiesofmega-eventsshowthatsomeunitsare
ignoredfromtheeventandfromitseconomicimplicationsinalife-threatening
method:forinstance,theCommonwealthGamesinDelhiruntoconsiderable
dislocationofsusceptiblesectionsofthemunicipalpopulation,especiallythoseliving
inunofficialresidence.Apartfromproducinggreatuprisingandconflicts,itstopped
thesegroupsfromgettingadmissiontoeconomicprospectsproposedbytheGames
sincetheywererepositionedfarfromthecitycenter(Dupont,2011).Thissample
showedthatmega-eventsdonotautomaticallyworkasastimulusforpublicharmony
andglobaldevelopment,contrarytocommonbeliefandwidespreadexpectation.
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2.1.4Endorsementsforenrichingthepositiveeffectsofmega-events
Improveimpactevaluation:Carryoutacompletesocialandenvironmentalanalysis,
includingadetailedcost-benefitevaluation.Thesedatashouldbecollectedbefore
takingthedecisiontohosttheOlympicGamesoranymega-event.Furthermore,
autonomousexpertsknowledgeableaboutthelocalcontextshouldconductthe
analysisandarigorousassessmentshouldbedoneoncetheeventisover.
Leadingpublicconsultationthroughouttheprocess:Inordertoefficientlyimplement
thelistoftodothingstohostamega-event,publicconsultationshouldbeincluded
intotheprocess.Inthisway,thelarge-scaleprojectsarenotimplementedagainstthe
interestandwillofthelocalpopulation.
Supervision:Isimportanttohaveapublicsectorinvolvementinordertohavewide
regulatoryregimesandsupervisinginstruments,asimplementationmostlyreliesona
largeamountofprivateactors.
Post-eventadministration:Aplanexplainingthelongtermpreservationneedsofa
plannedmegaprojects,mustbesubmittedbytheorganizersatanearlystage,inorder
toguaranteeagreementwiththenationallegislation,includinglocalandurban
strategies,avoidingfuturetensiononthemunicipalbudget.
Economicsustainability:Mostmegaprojectsrequireprivateinvestment,butthepublic
sectorshouldlingerinthemanagementinordertoensureaccountability.
Nevertheless,publicsectorcommitmentshouldnotextendtoofferingsovereign
guaranteestolenders.Toreinforceprivatesectoraccountability,partnersshouldbe
involvedindesigningperformance-basedprojects(Flyvbjergetal.2003:109-10).
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2.2TheBidprocessfortheOlympicGames
TheIOC’SadvancingdevelopmentoftheOlympicMovementhasshapedthecurrent
bidprocess.TheIOCconstantlytriestoincreasetheavailableresourcesandrefinethe
prerequisitesforbidcitiestomaximizethebidexperienceandaspireforaneventof
superiorlevel.ParalleltheIOC’Sfruition;hostsandinnovativebiddershavelearnedto
shapethebidprocesstotheirlong-termbenefits,inparticularthroughurban
renovationinitiatives.Theearlystageofbidandthebidprocessitselfareconsidered
crucial,andtheguaranteesmadeduringthesestagesaremandatoryifacityis
selectedtohosttheGames.Inthisway,applicantcitiesarestronglyencouragedto
apprehendtherequestsofhostingtheGamesbeforebuildingpublicsupportforabid
andjoiningthefirststageoftheapplicationprocess.
Fig.2.1Manycountriesorganizetheirownnationalselectionprocesstoidentifyasinglecitytoenter
Phase1oftheIOCbidprocess.(Biddingfordevelopment,2014).
TheIOCsupportswhyitsplitsthebidprocedureintotwoperiodsasitsapproachof
pickingthemostfittingcitytohosttheGamesandmeetitsobligationtoguaranteea
positiveOlympicLegacy.JustasOlympicathletescontendinaseriesofqualifying
trials,citiesundertakeasimilarlycomplexrankingprocedurebasedontheircapacity
tocompletetheGames.Ineachstage,theApplicantandtheCandidate,theIOCtries
torecognizethemostsuitablecandidatestomoveonward.Althoughatieredbid
processcanputanimportantamountofstressoncompetingcities,itcanalsoactto
35
putanedgetothefinancialburdenonbidderswhoarenotreadytoexecutethe
GamesCandidatureFee(Phase1,$150,000)andCandidatureFee(Phase2,$500,000)
(InternationalOlympicCommittee,2003).Thesefeesrepresentjustasmallpartofthe
costofpreparinganOlympicbid,whichcostabout$30million.Withineachbid,
budgetestimationmustbetakenintoconsiderationsincetheOrganizingCommittee
fortheOlympicGames(OCOG)budgetexcludesmilestoneitems.Significantexpenses,
suchastransportationservicesandinfrastructureareoverduetocitiesindependently
fromanythingenclosedorcontemplatedbytheIOC.Theseelementsmaybe
instrumentalinthesuccessoftheOlympicLegacy.Successfullyexecutingthestepsof
abidrequiresthatacityissustainedatanationallevelbybothpublicandprivate
resourcesdistinctlyfromOlympicsrelatedfunding.TheIOCdeliverstocandidatecities
instructionandpracticallearningopportunitiesthroughtheTransferofKnowledge
(TOK)program.SincetheOlympicGameStudyCommissionof2003,theIOChas
enlargeditseffortstoimproveGamesmanagingprocessthroughincreasedassistance
torepeatbidders.Hence,citiesponderingabidnowhavetochoicetotieontheIOC’s
planningandlearningmeans,manyofwhichspecificallyfocusonapplicationrequests.
Consequently,submissionscontinuetoriseinvaluefromyeartoyearintermsoftheir
acquiescencewithIOCinstructionsanddeadlines.
WitheachOlympiad,theIOCrestructurethebidprocessinordertoincorporate
valuablelessonlearned.AstheprocessdoesnotpromiseapositiveOlympicLegacy,
theIOC’snewassetsandnecessitiesareusedasstandardstoafruitfulbidandbuilding
blockforapositivelegacy.Resourcestobiddersareshowninthefollowingfigure.
36
Fig2.2TheIOChasintroducedavarietyoftoolsandresourcesforbidderstousethroughouteachphase
ofthebidprocess.(Biddingfordevelopment,2014).
Pre-bidresourcesincludeIOCkeystonesuchasOlympicLegacyguide,technical
manualsandOlympicCharter,whichmaybeusedthroughoutthebid.Further
37
resources;incorporatetheflagshipOOP(OlympicObserverProgram),whichallows
biddingcitiestohaveaglanceinsidetheexecutionoftheGames.
2.2.1ApplicationProcess
Thefirstphaseprovidesanopportunityforcitiestoassociatepoliticalsustenance,
accumulatefundsandinvolvewithresidentstostartaplantowardlong-term
infrastructureenhancement.Citieshavetoenunciatetheirresultingvisionon
transportationplaninadetailedbidbook,determiningtheplaninresponsetoa
sequenceofIOCenquiries.SubsequentlytheInvitationPhase,cities,whichdecidedto
bidforanOlympicGames,enterstotheofficialOlympicCandidatureProcess.This
coversaperiodoftwoyearsendingintheHostCityElectionbytheIOCSession.
Olympicschemahashighlightedtherequisiteforavariationinthecandidature
processinordertoadaptdistinctresultstomeetGamesrequirementswithindifferent
cities’background.Toenablethis,theIOChasplacedfurtheremphasison
sustainabilityandlegacy.Moreover,theIOC,throughthereviewofGames’needshas
approvedtoreinforcepositioningbetweenacity’slong-termextensionplansandthe
Games,qualifyingcitiestopursuitthepromotionofsustainableGamessolutionsand
realisticlong-termeffects.Throughtheoutliningofthecandidatureprocessasan
invitation,theIOCandNCOs/citieswillenterintoanegotiation.Thisongoingdialogue
andadvancedinformationinterchangewillbeunderpinnedbyperiodicopportunities
forcooperation,or,touchpointsbetweentheIOCandthecities.Througheachstage
theIOCdeliversassistancestoallcitiesembracingopportunitiestolearn,exclusive
workshopsandtransferofknowledge(OlympicGamesCandidatureProcess,2015).
OfficialproposalsbyCandidateCitieswillbethreeinlinewiththethreestagesofthe
processformingpartofauniqueprocess,whichpermitslabortomatureuntilitfilings
totheIOCtoalogicalseriesofmilestoneswithstagedanalysisbytheIOC.Eachtopic
willtackledifferentsectorsofthecities’bidintheperspectiveoftheinherenttypeof
eachcountry,regionandcity.Instage1and2theIOCEvaluationCommissionWorking
Groupwillexaminethedocumentationssubmittedandprovidearevisedversionto
38
theIOCExecutiveBoard.Succeedingstage3theIOCevaluationCommissionanalyses
thesubmissionandannouncesitsfinalreportfollowingavisittothelocationsofeach
city(OlympicGamesCandidatureProcess,2015).Aftereachbid,theIOCExecutive
boardwillconfirmthetransitionofthecitiestothenextstep.
Tosummarize,throughtheimplementationofOlympicAgenda2020theIOCandthe
OlympicMovementhavefoundedanopennesstodistinctiveGamesvalue
propositionsthatwilldelivergreatGamesforathletesmeetingalsothecity’svision,
heritageandsustainablegoals.
2.2.2LearningProspects–Stage1
Aftertheproclamation,theInternationalOlympicCommitteewillhosta
videoconferencefortheofficialcandidateCities.Thepurposeofthisvideoisto
provideinformation,tocandidatecities,withalltheimportantproceduretofollowin
ordertohaveaclearknowledgeabouttheOlympicCandidatureProcessand
highlightingtheimportanceforafairandequalcompetition.Thisphaseprovidesalso
thattheIOChostsadistinctworkshopforeachcandidatecitytodeliverinfoonVision,
GamesConceptandStrategywiththepurposeofbuildingasolidGamesalignedwith
thecityandregion’slong-termimprovementplan.
ThisphaseendsinthesubmissionbytheCandidateCitiesofthe“CandidatureFilePart
1”whichisthenanalyzedbytheIOCEvaluationCommission’sworkinggroup.TheIOC
EBconfirmsthecontinuationofeachCandidateCitytothenextstageoraddresses
specificchallengesaCitymayfaceandneedstoreevaluate.
2.2.3Governance,LegalandVenueFunding
TheIOCevaluationcommissioninthisstepwillreviewtheproposedgovernance
structures,politicalandlegalelements,privateandpublicsupportfortheprojectin
ordertoestablishthechallengesandopportunitiesrelatedtoeachproject.
39
2.2.4LearningProspects-Stage2
AfterhavingreviewedtheGovernance,LegalandVenuefunding,theIOCwillhosta
secondworkshopforthecandidatecitiesinrespecttothistopic.Atalaterstage,the
IOCwillhostanadditionalseminartoforwardindividualopiniontoeachcandidatecity
accordingtotheirstage1submissionandplans.
Atthispoint,citieswillalsoparticipatetotheOlympicGamesspectatorprogram,
whichisafundamentalelementoftheIOC’stransferofknowledgeandispartofthe
CandidateCitiesoveralllearningstrategies.Theobserverprogramisaimedat
providingtofuturecandidatecitiestheaccesstothebehindthescenesGames,in
ordertoacquireknowledgeontheevolutionandGamesprocess.
AttheendofthesecondstageCitieswillsubmittheircandidaturefilepart2tothe
IOC,whichwillbevalued,again,bytheEvaluationCommissionsWorkingGroup.The
EvaluationCommissionWorkingGroupwillprovideanupdatetotheIOCEBwhowill
announcethecitiestransitioningtothethirdandfinalstageoftheprocess(Olympic
CandidatureProcess,2015).
2.2.5GamesDelivery,ExperienceandVenueLegacy-Stage3
ThislaststepanalyseshowCandidateCitieswillensuretothegamesasustainable
legacy.
TheIOCEvaluationCommissionwillemphasisonexaminingtheGamesproceduresto
guaranteeanefficientdelivery.ItwillalsoreviewthelegacyschedulingandtheGames
involvementforallthestakeholders,withaglanceontheathleteexperiencetodefine
thechallengesandopportunitiesintheareasmentionedabove.Candidatecitieswill
submitduringthisphasethefinalfilesubmission,completingtheirfullprojectdossier.
TheIOCEvaluationCommissionwillcomeinitstotalitytoevaluatethedocumentation
presentedbythecitiesandcarryouton-siteexaminationofeachcandidatecity.The
commission’sresultswillbepublishedintheIOCEvaluationCommissionReportthat
willunderlinethechallengesandopportunitiesofeachcandidature.Thereportwillact
40
asacrucialassistancetotheIOCmemberswhenelectingtheHostCity.TheCandidate
CitieswillhavetheopportunitytopresenttotheIOCmembershipatthecandidatecity
briefingforIOCMembersandOlympicInternationalFederation(OlympicCandidature
Process,2015).Thisrepresentsachanceforboththecitiestoshow-casttheirprojects
andfortheIOCmembersandInternationalFederationtoaskquestionsandevaluate
thetechnicalaspectsofeachcandidature.
Lastly,duringtheHostCityElection,theCandidateCitieswillmakeafinalpresentation
totheIOCSessionandtheIOCsmembersvotebysecretballotandelectthehostcity.
Thenewlyelectedhostcity,thensignstheHostCityContractswiththeIOC.
2.2.6EvaluationCommission
ThetaskoftheEvaluationCommissionistoanalyzetheCities’CandidatureFile
Submissions.Thecommissionauthenticatestheinfogavebythecandidatecities,
studiesthepracticabilityofthesuggestedplans,determineseachcity’sabilityto
deliversuccessfulGamesandevaluateswhethertheGameswouldleaveapositive
legacythatmeetstheindividualneedsandlong-termdevelopmentplansofthe
respectivecityandregion.Tofosterandintensifyingtheanalysis,theEvaluation
CommissionvisitseachcityduringthethirdstageoftheOlympicCandidatureProcess
andpublishesitsreportthatstressesthetrialsandopportunitiespresentedbyeach
candidature,aswellasfocusingonthesustainabilityandlegacyproposalofeach
candidature.
2.3 CandidatureProcessOlympicGames2024
ThecandidatureprocessfortheOlympicGames2024iscurrentlyongoingandisthe
firstprocessgainingfromOlympicAgenda2020.TheIOChasgeneratedthestructure
foracandidatureprocess,whichtakesbenefitofacontinuinginterchangewith
candidatecities.
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FollowingtheInvitationPhaseduringwhichinterestedcitieshadthechancetolearn
moreabouthowtoplotGamesthatmeettherequirementsofthesociety,citieswhich
havedecidedtobidfortheOlympicGames2024entertheofficialCandidature
Process.Citiesaresustainedtobettershapetheirvalueproposition,discussing
proposalsandpotentialsolutionsthatwilldeliveroutstandingGames,without
bargainingthefieldfortheathletesandmeetingtheneedsofthecityandregionto
ensurethepositive,long-termandsustainablelegacy.Thisspansaperiodfrom15th
September2015to17thSeptember2017,whentheIOCSessionwillelectthehostcity
forthe2024Games.
Thecandidatureprocess2024iscomposedby3stages,asalreadymentionedabove,
(www.olympic.org):
Ø Stage1:Vision,GamesConceptandStrategy
Dates:15September2015–2June2016
Candidaturefilesubmission*:CandidatureFilePart1–17February2016
Ø Stage2:Governance,LegalandVenueFunding
Dates:2June–December2016(ExecutiveBoarddatetobeconfirmed)
Candidaturefilesubmission*:CandidatureFilepart2–7October2016
Ø Stage3:GamesDelivery,ExperienceandVenueLegacy
Dates:December2016–September2017ElectionbyIOCSession
Candidaturefilesubmission*:CandidaturefilePart3–3February2017
OlympicAgenda2020highlightstherequirementforthecandidatureprocessto
accommodatedifferentsolutionstomeetGamesneedswithindifferentcities’
contexts.Eachphasewilladdressdifferentcomponentsofthecities’proposalinthe
contextoftheinherentnatureofeachcountry,regionandcity.Aftersuchsubmission,
theIOCExecutiveBoardwillapprovethetransitionofthecitiestothenextstage.
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2.4CandidateCitiestothe2024Games
TheInternationalOlympicCommittee(IOC)announcedonSeptember15th2015,that
LosAngeles,Rome,Paris,BudapestandHamburgwouldparticipatetohosttheworld's
biggestsportingevent.ThewinnerwillbeannouncedaftervotingattheIOC's
conferenceinLima,Peru,inSeptember2017.Afterthecandidature,aseriesof
announcementfollowedastheCNNarticlereports:
"WearewelcomingfiveoutstandingandhighlyqualifiedCandidateCities"IOC
PresidentThomasBachsaidinastatement."OlympicAgenda2020hasshapedthe
CandidatureProcessmoreasaninvitationandthecitieshaverespondedbyengaging
withtheIOCthroughdialogueandcooperation."InthenewinvitationprocesstheIOC
learntthatallthecandidatesareembracingOlympicAgenda2020fromtheir
respectivevisionforthefutureoftheircity”.
TheIOCalsoannounceditwouldcontribute$1.7billionin"cashandservices"tothe
winningorganizingcommittee.
LosAngeles
LosAngelesreplacedBostoninJulyafterthecityfailedtoattractmajoritysupport
fromlocalresidents.LosAngeleshashostedtheGamestwicebefore,in1932and
1984.ThelasttimetheOlympicswerehostedonAmericanterritorywasinAtlantain
1996.TheU.S.OlympicCommitteethrewitsweightbehindLosAngelesafterlauding
an"environmentallysustainablebid"thatwouldtakeadvantagefrommanyexisting
venuesratherthanconstructingnewones.
Paris
TheFrenchcapitalcitywasthefavoritetowintheracetohostthe2012Gamesbefore
Londonwonit.Italsofailedwithbidsforthe1992and2008Olympicsandhashosted
twicehostedtheeventbefore,in1900and1924.
ShoulditbesuccessfulitwouldbecomeonlythesecondcitytohosttheGamesthree
times,alongsideLondon.
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Budapest
IftheHungariancapitalcitywillbesuccessfulitwouldbethesecondtimetheGames
hasbeenheldinEasternEurope,afterMoscowin1980.
IthasbidunsuccessfullyfortheOlympicsonfiveoccasions,thelastin1960.
Ofthe10mostsuccessfulmedal-winningcountriesinOlympicshistory,Hungarynever
hashostedtheGames.
Hamburg
TheGermancity'sparticipationcouldlastonlyafewmonths.Hamburgisholdinga
referendumonitsparticipationinNovemberandifitsresidentsvoteno,itwillpullout
oftherunning.ItisproposingacarbonneutralGamesandabudgetof€50million.The
lasttimeGermanyhostedtheOlympicswasin1972inMunich.
Rome
The"EternalCity"hashostedtheGamesonce,in1960.Ithadbeenintherunningto
hostthe2020Gamesbutwithdrewduetoeconomicdifficultiesinthecountry.Given
thecity'srichhistoryandagapofover50yearssinceitslastOlympics,itcouldhave
beenastrongcontender.
2.5 ThecandidatureofRome2024:Whatwerethekeypoints
ThemanifestusedforhostingtheOlympicGameswasbasedonshowingtheartofthe
Italianpillarstotietheworldthroughsport.Thevisionreliesonfamilyvaluesthat
Italiansholdandthewarmwelcomeandhighqualityexperiencethatisproposedtoall
visitorsthatcometoenjoythebeautyandtraditionalcultureofRomeandItaly.The
purposeisshowthepowerofsporttoconnectpeople,families,places,culturesand
faithsandwanttousetheOlympicandParalympicGamesasacatalysttoachieve
thesegoals,furnishingever-longmemoriesofpooledexperiencesfortheentirety.The
GamesConceptisguidedbythisvision,motivatedtorecreatethesenseofpride
44
generatedbyhostingtheRome1960Gamesandthekeymilestonethatthis
representedinRome’sprogress.Theobjectiveistodevelopanewmilestonein
Rome’shistoryin2024,aturningpointintheforthegrowthofthecity,forfutureuse
andasanincentivetoimprovethequalityoflifeforallRomanresidents.Italywantsto
demonstratetotheworldthatcanachieveitsgoalsbyhostinghighlyprosperous
majorevents,suchastheRome1960OlympicGamesandtheMilanWorldExpo2015.
Theseaspirationsarealsoinlinewiththelongtermplansforthedevelopmentof
RomeandwiththeOlympicAgenda2020.TheItalianconceptoftheGamescanbe
summarizedinthefigurebelow.
Figure2.3:RomaCandidateCityOlympics2024.(Candidaturefilestage1:Vision,GamesConceptand
Strategy,2015)
Exploringthesepointitcanbepossibletoobservehowthedifferentpointsarefaced.
Ø Culture,Lifestyle&Landscapes–Linkingthedifferentcommunitiesandbeliefs
ofRome,encouragingallvisitors,betheyathletes,spectators,officialsorthe
media,to‘experiencelifetheItalianway’,throughahighqualitycelebrationof
sport,inauniqueoutdoorscenery(Candidaturefile–Stage1:Vision,Games
ConceptandStrategy).Thiswillincorporatesupportingsocialinteraction,using
Rome’surbanparksandsquares,astheartoftheItalianwelcomeandlifestyle
tooltodevelopcommunityspiritacrossthewholetocreateasenseof
uniformitytotheworldthroughsport,Romeanditslocalpopulation.This
45
eventisalsoseenasachancetorenovatethecity’sinfrastructureandenhance
thequalityoflifeforRome’scitizens.Thesedevelopments,whichfitperfectly
withtheOlympicAgenda2020values,willbenefitbothcitizensandvisitors,
leadingtobringRomemorereachable,enjoyable,sustainableandevenmore
spectacular.
Ø Families–Usingfamilyvaluesandconceptstocreateatrulycelebratory
atmosphereanddeliverwidersocialopportunitiestotie,notonlyItalians,but
alsoplayers,touristsandtheOlympicFamily.Contestantswillcelebratewith
theirbelovedandwillhavethechancetomeetandexploreRomeandItaly
together.TheGamesrelatedprogramswouldhelptosurroundthesecultural
valueswithintheframeofamorecompletesociety,endorsingcommunication
acrossgenerations.
Ø Tradition&Innovation/Technology–CombiningRome’stradition,beautyand
heritagewithnewconceptsandinnovationtodeliveraforwardthinkingGames
concept,inourevergrowingtechnologicalworld.Rome’sGameswillshowthe
historyandheritageofsport,inamodernandextensiveway.Incorporating
revolutionaryideasanduseItaly’stechnologicalknow-how,astheyalreadydid
withthe1960Games,asthefirstOlympicGamestobebroadcast
internationallyandusetechnologysuchasslowmotionreplays.Theproposalis
foratriumphantparadeofmedalwinnersatGames-time,forthefirsttime,in
theamazingnight-timesceneryoftheColiseum,thesiteofmanyhistorical
competitionsandpublicshows,itwouldrepresentauniqueexampleofhow
mergingtraditionandinnovation.
ThereareaseriesofobjectivesthatItalianrepresentativewantstoreachbyhosting
theOlympicGames(CandidatureFilestage1:Vision,GamesConceptandStrategy,
2015).
Objective1:Createaconnectionwithpeople,notonlylimitedtothecitythatwill
46
hosttheGames,butatnationalandinternationallevel.Thepurposeistodeliveran
outstandingexperienceforathletesandspectatorscreatinglong-termmemoriesthat
aregoingtobuildtheOlympichistory.Thiswilltakeplaceinprofounderand
noteworthylegacies,incorporatingpride,honorandexcitementforthebenefitsthat
couldthiseventgivetothecityandtothecountry.
Objective2:BuildnewOlympicGamesonthelegacyofRome1960,usingthenational
traditiontostimulatenewgenerationandstrengthensocietythroughsports.
Celebrateandencourageparticipationinsportanddelivermoresporting
opportunitiesandundertakings.ThesebenefitstoItaliansportinclude:
Ø Renewedandnewsportinglocations
Ø Peopleofallagestakingpartinsportandfeelingthehealthandpersonalbenefitof
anactivehealthylifestyle
Ø Moreefficienttalentidentificationtohelpmoreyoungersachievetheirsporting
goals
Ø Moreeliteathletesachievingsuccessontheworldstageandactingasrolemodels
foryoungpeople.
Objective3:Createinteractionswithgroups,familiesandsocietyandimprovethe
qualityoflifeforRomanandItaliancitizens.TheGameswillbeusedasaninstrument
topromotegreatersocialinclusionandrespectthenexttogetherofdifferentcultures,
beliefsandreligions,forthelong-standingbenefitofsociety.Someoftheinitiatives
include:
Ø Familyfriendlyprogramsandnotionsre-establishingtheimportanceoffamily
valueswithinItaliansociety
Ø OlympicandParalympiceducationprograms,before,duringandfollowingthe
Games,providingalegacytoRomeandItaliansport,educationandsociety,aswellas
theOlympicMovement
Ø Greaterpromotionandawarenessofthebenefitsofactivehealthylifestylesto
47
augmenthealthandwellbeing
Objective4:Improvecity’sinfrastructureandlivingenvironmenttocreateamore
accessibleandsustainablecity.Bycompletingthisitispossibletoreachabetter
qualitylifestandardforcitizens,inrespectfortheRome’shistoricalenvironment.
Someofthebenefitsinclude:
Ø ConnectivitybetweenRome’sdistricts,withimprovedtransportconnections
Ø Theadoptionofnewsustainabilitystandardsandtransparentbestpractice
constructionprocesses
Ø Amoreaccessible,inclusivecity,providingimprovementsnotonlyforpeoplewith
disabilities,butalsoforeveryone,allowingvisitorstogetaroundandenjoythecity
easily.
Objective5:IncorporateinnovationandtechnologyintoallGames-relatedplanning
andprogramstodeliveroutcomesofthehighestquality.Rome2024planistouse
technologyandinnovationpositioningasthelargestmanufacturingcountryinEurope.
WorkingwithsomeoftheItalians‘hi-techclusters’,allowsnotonlyshapingthebidbut
alsoexploitingtheopportunitiesthatbiddingforandhostingtheGamescanbringand
theresultantbenefitstobedelivered.Newideasandinnovationswillbepromoted,
enhancingRome’spositionasahubforcreativity,throughengagementswith
universities,newbusinesses,aswellassportsrelatedresearchprojectsinthe
technologysector.Thiswillinclude:
Ø Continuationofthe#LabRoma2024(innovationecosystemnetwork)initiative,
introducedintheCandidaturephase,tobuildonRome’spositionasanincubatorhub
fornewbusiness.
Ø DevelopingtheresearchcapabilitiesatTorVergataUniversityaspartoftheGames
legacyplansthroughadditionalstructureandresearchprograms,involvingmore
youngpeopleandstudents.
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Uniqueiconicsettingsforsport
IncorporatingRome’siconicancientterritoriesintothevenueplanningprovidean
inspirationalsettinganduniquebackdropformoderndaysport,whilstdelivering
spectacularimagesofRomeanditsheritageacrosstheworld.Forexample,Beach
VolleyballwillbehostedintheancientfootprintoftheCircoMassimo;RoadCycling
willfinishandtheMarathonwillstartinfrontoftheColiseumandrunbesidethe
RomanForumwheretheArcheryFinalswilltakeplace.Thisconceptalsoseeksto
preserveasmanyvenuesaspossiblewithinRome’sexistingurbanareas,toreduce
traveltimesandgenerateaspecialGames-timeatmosphere(CandidatureFilestage1:
Vision,GamesConceptandStrategy,2015).
Sustainablevenueconcept
InordertobesustainabletheprojectaimingatshowcasethelegacyoftheRome1960
OlympicandParalympicGamesbyusingthesevenuesoverin2024,avoidingfurther
constructionplans.Forexample,theForoItalicohasbeeninusesince1932andwill
provideauniquebackdropfortheAquaticsevents(CandidatureFilestage1:Vision,
GamesConceptandStrategy,2015).Incollaborationwiththeuseofothercurrent
venues,thisprovidesamuchmoresustainableandfiscallyresponsibleapproach,with
theaddedbenefitoflessimpactontheenvironment.Games-timeexperienceforall
RomeandItaly’swell-developedtourismofferwillallowallvisitors,includingathletes,
tofullyimmersethemselvesintotheItalianculture.OpportunitiestoenjoytheItalian
lifestylewillbewovenintotheoperationalconceptsandGames-timeexperiences,
usingRome’sbeautifulparksandheritagesites.Inparticular,focusingonfamiliesand
familyvalueswillprovideopportunitiesforathletes,visitorsandcitizenstocelebrate
withtheirlovedones,throughconceptssuchasfamilyareasinLiveSites,family
focusedcityactivities,ticketing/tourismoffersandtheinnovativeAthlete’sParade,
enhancingRome’slong-termdevelopmentplans.Finallyandmostimportantly,Rome’s
plansforhostingtheGamesarebasedonaconceptofresponsible,feasiblestrategic
investmentandgrowth,fortheeconomyofRomeandItaly,inlinewiththeOlympic
Agenda2020.Theobjectiveistoharnesstheexistinginvestmentandgrowthstrategy
49
forRome,rushingandtransformingthecitytoenhancethequalityoflifeforfuture
citizensandvisitors.
Legacyandlong-termplanintegrationandalignment
Italiancitiesarenotrequiredtopresentalong-termdevelopmentplan.However,
Romehascompletedthisplan.InOctober2008,thecityofRomearrangedaSpecial
Commissionforthefutureofthecity,outliningthestrategicdirection.Itcameupfive
“ambitions”and14“objectives”(Candidaturefilestage1:Vision,Conceptand
Strategy,2015):
Ø AmbitionI:Romeasapolycentriccity
Ø AmbitionII:Romeasacityofknowledgeandlearning
Ø AmbitionIII:Romeasacityoftourism,entertainmentandleisureeconomy
Ø AmbitionVI:Romeascohesiveandunitedcity
Ø AmbitionV:Romeascompetitiveinternationalcity
Theambitionsandobjectivewerethenrevisitedandapprovedin2011,withfourmain
“images”ofthecityan12underlying“objectives”asshownbelow:
Figure2.3StrategicDevelopmentPlanforthecityofRome,2011.Source:(Candidaturefile
stage1:Vision,ConceptandStrategy,2015).
TheSDP(StrategicDevelopmentPlan)gavespecialattentiontosport,toimprovein
thiswaytheimageofthecityandthecountry,givingastrongcontributiontolocaland
50
nationaleconomicgrowth.DespitetheItaliangovernmentdecidedtowithdrawthe
OlympicCandidaturein2012duetotheeconomiccrisistheSDPidentifiedthathosting
theOlympicGameswouldbe“anacceleratorforthedevelopmentprocessesand
projectsalreadydefinedintheSDP,inordertoanticipatenewinfrastructuresand
servicesinvestmentsalreadyplannedandpartiallyfinanced”.
In2013,anewstrategicplanningaimedatoutlining“The2025UrbanAgendaforthe
cityofRome”waslaunched.Theprimaryobjectivesofthisplanwere:
Ø Easetheplanningandaccessibilitytofinancialresources
Ø PromoteprojectsforUrbanregeneration
Ø Attractinvestmentsforinnovativeprojectstoreinforcethecity’s
competitiveness
Ø Keepcitizensupdatedabouttheoutcomesofthetransformativeprojectsof
thecity
Thefourmainpillarstosupportthisurbandevelopmentstrategyareshownbelow
Figure2.4UrbanAgenda2025forthecityofRomeSource:(Candidaturefilestage1:Vision,
ConceptandStrategy,2015).
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DespitetheAgendaUrbanahasnotbeenapprovedbythecitycouncil,dueto
governancechanges,thereareseveralelementswhichhavebeenusedtoinformthe
developmentoftheRome2024visionandrationale,suchas:
Ø Focusonsustainabledevelopmenttopromotebalancebetweeneconomic,
social,innovative,environmentalandculturalheritage
Ø Sportandcultureasapriorityforthecitydevelopment
Ø Mobilizelocaleconomy,socialresourcesandreinforcecohesion
2.6BenefitsfrombiddingfortheOlympicGames
TheRomebidfortheOlympicGamesof2024isalreadyassistingasanincentivefor
improvement,byendorsingandprioritizinganumberofurbanfacilitiesand
environmentalmissionsthatwillaugmentthequalityoflifeforallcitizens.Biddingfor
theGamesscratchesaturningpointintheItalianeconomythatwillhelptofosterand
mergesupportacrossItaly,throughouttheeffectiveengagementofallregions.Other
benefitstobedeliveredfrombiddingfortheGamesinclude(Candidaturefilestage1:
Vision,ConceptandStrategy,2015):
Ø NoteworthysocialbenefitsfromtheOlympicEducationProgramwhichhas
alreadybegan,providinga‘digitalkit’tonationalschoolstopromotethe
Olympicvalues
Ø Enhancingthecommunicationbetweenagencies,governmentdepartments
andotherbodiesbothwithinthecity,cityandregion,andnationally
Ø Networkswithnongovernmentorganizations,forexample,atwoyearbid
programhasbeenestablishedwithActionAidtousesportasatooltointegrate
youngpeoplefromdifferentcultures,beliefsandbackgrounds
Ø Promotingandrenewinginterestinsport,particularlybyyoungpeople,
studentsandtargetgroups,specificallyengagedduringthebiddingprocessas
partofthe#wewantromacampaign
Ø Promotinginnovationandinterestthroughthe‘#LabRoma2024’campaign
whichisencouraging‘younginnovators’tocomeupwithideasandproposals
toaddressmoderndaychallenges
52
Ø Promotingactiveparticipationandinvolvementoflocalcommunitiesinthe
planningandredevelopmentoflocalareassurroundingGamesvenues
Ø ImprovedaccessibilityandawarenessofPara-sportthroughinfrastructure
projectsandeducationprogram
2.7BenefitsofhostingtheOlympicGames
Thebenefitsofbiddingwillbebroadeningboostedanddevelopedbyhostingthe
OlympicGames,asemphasizedbelowusingtheIOC’sLegacyframework.
Socialdevelopmentthroughsport
Thesocialandeducationalprogramduringthecandidatureprocesswillpositively
impactonItalian’syoungpeople,assimilatingandabsorbingthemthroughOlympic
sportanditsideals.TheGamesvolunteeringprogram,youngleadersandother
education-relatedprojectswouldalsooperateasaplatformforsocialandpersonal
growthpromotingsocialinteractionforanenhancedqualityoflife.
Economicdevelopmentandgovernance
TheeconomicimpactanalysispredictssignificantbenefitsfromhostingtheGames.By
augmentingthesebenefitsthroughgovernanceandforward-thinkingleadership,
engagingwithbusinesscommunitiesandtourismbodiesacrossItaly,ispossibleto
promotethemanyprospectsthathostingtheGameswillproduce.
Cultureandidentity
ShowcasingRomeandItaly’snationalcultureanduniqueheritageareafundamental
partofRome’svisionforhostingtheGames.TheGameswillactasastimulusto
inspiremoreculturalandcreativeactivity.TheywillalsoleadtoplaceRomeasacity
that,whilstrockedinhistory,takingamodernandinnovativeapproachtonew
challenges,providingnewimpetusintheareasoftalent,businessandinnovation.The
GameswillhaveanenduringimpactonRomanandItalianpeople,asitproducesa
greatsenseofprideandcommunitycohesion.
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Naturalenvironmentenhancement
EnvironmentalenhanceswillprovidesignificantimprovementstoRome’snatural
environmentincludingthedevelopmentofnew‘open’spacestoenjoythecity’srich
culture;respectandraiseawarenessofenvironmentallysensitiveareas;andthe
creationofamoreliveableandenjoyableoutdoorlifestyle,forwhichItalyis
renowned.
Infrastructureandurbanimprovement
Cityinfrastructureprojectswillgreatlyenhancethequalityoflifeforallresidentsand
visitors.UpgradingRome’stransportationsystemwillpromotepublictransportand
reducetheuseofcars,furtheraidingtheenvironment.Upgradedhotel
accommodationandareasaroundhistoricsiteswillmaintainthecity’sreputationas
aninternationaltourismdestination.
Conclusion
Althoughthereareseveralstudiesanddocumentsthatcertifiesthepositiveoutcomes
forhostingtheOlympicGames,therearealsoobstacles,issuesandpeople
representingtheRomangovernancethatarenotapprovingtheCandidatureofRome
forthe2024Games.Infact,lastOctober11thRomewithdrewitsCandidature.
Inthefinalsection,wewillgothroughthereasonsofthischoiceandwewillsee
similarexamplesofothercitiesthatwithdrewtheircandidaturepastyearsandthe
motivationthatledtomakethisdecision.Furthermore,wewillanalyzehowsuccessful
outcomesareusedtotransferknowledgefromcitytocityforfurtherMega-sport
events.
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CHAPTERIII:OUTCOMESFROMHOSTINGOLYMPICGAMESANDHOWKNOWLEDGEISSHAREDAMONGHOSTINGCITIES
InthisfinalchapterwewillgothroughthewithdrawofthecandidatureofRomefrom
theOlympicGamesof2024,analyzingthereasonsthathaveledtomakesuch
decision,goingforwardwiththemostcommonproblemthatdoesnotallowcitiesto
goingfurtherwiththeircandidature:costoverrun.Then,wewillseehowknowledgeis
sharedandcouldbebetterimplementedamonghostingcities,reportingvarious
examplesandstatisticstosustainthisthesis.Continuingwiththeexplorationofthe
impactsoftheGamesoncommunitiessuchassocio-economic,socio-cultural,physical
andpoliticalimpact,closingwiththerecommendation,studiedfromdifferentauthors,
forthepathaheadinordertoavoidpreviousmistakesandbuildamoresustainable
andwell-definedperformance.
3.1Romewithdrawfromthe2024GamesOnOctober11th2016VirginiaRaggi,MayorofRome,duringapressconference
withdrewthecandidatureofRomefromtheOlympicsin2024.Thereareseveral
reasonsthathaveledtomakethisdecision.TheMayorsaid:“Isirresponsiblesaying
yestothiscandidature”continuing“Wedidnotchangedourmind,westrengthened
ourposition”,ongoing“Wewereaskedtocarryonmoredebts,wecannotafford
that”(www.repubblica.it).TheMayorexplainedthattheyarestillpayingdebtsforthe
expropriationofthegamesheldinRomein1960.TheyhavenothingagainstOlympics
andsportsingeneral,buttheirwillingnessistousesportnotjustasanexcusefora
newinefficientspendingforthecityofRome;therearealotofpromisesdoneduring
theOlympics,butpeopleshouldtakeintoaccounttheseveralstructuresbuiltthatare
nowunused,suchastheinfrastructuresfortheWorldAquatics.
ThepositionoftheMayorisclear,hostinganeventsuchastheOlympicswillincurin
costoverrunsmeaningthetransformationofthiscostsinliabilitiesforthecity,its
citizensandespeciallyfortheinfrastructuresthathavetobebuiltinordertobe
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suitableforholdingtheGameswithouttheguaranteetousetheseappropriatelyafter
theevent.
Ontheotherside,GiovanniMalagò,presidentoftheINOC(ItalianNationalOlympic
Committee)stronglydisagreewiththedecisionmadebyVirginiaRaggi.Hesupported
theimportanceofthiscandidatureasachanceofredemptionforthecityRome.He
underlinedtheessentialelementsthatcouldhelpthecityofRometoimprovepublic
transportation,publicinfrastructuresandcreatenewjobpositions.Theserepresentsa
bunchoffundamentalsthatcouldbeconsideredafirststepinordertodevelopthe
eternalcity,justliketheOlympicsheldin1992contributedtothecityofBarcelonain
givingbirthtonewcityareas.Tostrengthenhisposition,thepresidentoftheINOC,
referstosomeofthekeypointslistedbyAgenda2020(www.Olympics.org):
Ø Changestothebiddingprocess,newwaytoinvitecandidatecitiestopresenta
projectthatsuitstheirsporting,social,economicandenvironmentallong-term
planningneeds.
Ø Reducingbiddingcostsbyreducingthenumberofpresentationallowedand
providingasignificantfinancialcontributionfromtheIOC.
Ø Organizationofsportsandeventsoutsidethehostcityandeven,inexceptional
cases,outsidethehostcountry,alwaysrespectingtheintegrityoftheOlympic
Village.
Ø Adaptingandfurtherstrengtheningtheprinciplesofgoodgovernanceand
ethicstochangingdemands.EnsuringcompliancewiththeBasicUniversal
PrinciplesofGoodGovernanceandtransparencyofaccounts,withtheIOC’s
financialstatementstobepreparedandauditedaccordingtotheInternational
FinancialReportingStandards(IFRS).
LastOctober11th2016,GiovanniMalagògaveuponhisconflictwiththedecision
madebytheMayor,deliveringtotheIOCtheletterthatcertifiesthewithdrawof
Romefromthe2024Games.
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Theconcernsaboutcostandcostoverrunareverycommonbetweencandidatecities,
andthesearethemainreasonsthatleadcitiestogiveuptotheircandidature.
3.2CostandcostoverrunattheGames
SincethedevelopmentofthemodernOlympicsin1986attentiontocostandcost
overrunoftheGameshasbeenraised.BaronPierredeCoubertin,themanresponsible
forthemodernGames,referredto“theoftenexaggeratedexpensesincurredforthe
mostrecentOlympiads”(Coubertin,1911).
CostforhostingtheGamesfallintothreecategories,establishedbytheIOC:
1. OperationalcostdeservedbytheOrganizingCommitteeforthepurposeofhosting
theGames.Technology,workforce,transportationrepresentthevastmajorityofthis
clusterandadministrationcosts.Othercostsincludesecurity,medicalservicesand
ceremoniesservices.
2. Directcapitalcostincurredbythehostcountryorcityorprivateinvestorstobuild
theOlympicVillages,mediaandpresscenterandthecompetitionvenuesrequiredto
hosttheGames.
3. Indirectcapitalcostssuchasforroad,airportorinfrastructures,rail,hotelorother
businessinvestmentnecessaryfortheGamesbutnotdirectlyrelatedtostagingthe
Games.
ThefirsttworepresentsthecostsrelatedtothesportsoftheGames;thelastone
representstheindirectcostsrelatedtotheGamesandgettingdataabouttheseisso
difficultandtheyarerare,duetothearbitrariness.Regularly,theindirectcostsare
higherthanthedirectones.BaadeandMatheson(TheOxfordOlympicStudy,2016)
foundthatforsevenGamesforwhichtheycouldobtaindataforbothsports
infrastructureandgeneralinfrastructure,inallcaseswasthecostofgeneral
infrastructurewashigherthanthecostofsportinfrastructure,sometimesseveral
higher.
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InthefollowingtableareshowntheoutturncostsrelatedtosportsoftheOlympic
Games1960-2016mergedwiththenumberofathletesandeventsforeachGame.
Table3.1:Actualoutturnsports-relatedcostsoftheOlympicGames1960-2016,in2015USD
Source:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.
TheabovetableshowsthatthemostexpensiveSummerGamesheldareLondon2012
atUSD15.0billionandBarcelona1992atUSD9.7billion.Sochi2014andTorino2006
arethemostexpensivefortheWinterGameswithUSD21.9billionfortheformerand
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USD4.4billionforthelatter.TheleastexpensiveSummerGamesisTokyo1964with
USD212million,fortheWinterGamesInnsbruck1964withUSD22million;not
consideringurbanandtransportationinfrastructurescoststhatrepresentsa
substantialnumber.
FurtherobservingOlympicscostoverrun,basedonthedataquotedoverhead:
Ø AllGames,withoutexceptionpresentcostsoverrun.Basedonstatistics10-20
percentofmegaeventsandmegaprojectsingeneralcomeinorunderbudget.
Thebudgetisthelimitestablished,intermsofmoney,tobespentonaproject.
ForwhatitconcerntheOlympicsthepercentageiszero.RegardingtheGamesthis
limitisconstantlyoverspent,evenifeachbudgetisestablishedwithlegal
requirementsfromhostcity,countryandgovernmenttoguaranteethattheywill
coverthecostsoverrun.Theagreementcanbecomparedtoablankcheckforthe
event,withthecertaintythatthecostwillbehigherthanithasbeenquoted
above.
Ø TheGameshavethehighestaveragecostoverrunofanytypeofmegaproject,at
156percentinrealtimes.Flyvebjergetal.(2002)foundaveragecostoverrunsin
majortransportationprojectsof20percentofroads,34percentforlargebridges
andtunnels,and45percentforrail,Ansaretal.(2014)found90percentoverrun
megadams;andBudzierandFlyvebjerg(2011)107percentformajorITprojects,
allinrealterms.Thetablebelowwillsummarizethesepercentages:
Table3.2TheOlympicGameshavethelargestcostoverrunofanytypeoflarge-scaleproject,realterms
Source:TheOxfordOlympicStudy2016:CostandCostOverrunattheGames,2016.
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Theelevatedcostoverruncouldbeboundedtothestrictdeadlineforprojects
delivery:theopeningcannotbemoved.Hence,whenproblemscomes-upisnot
possibletohavethechoiceamongcostandschedule,asisusualforother
megaprojects.Allthatmanagerscandoiscoverproblemswithmoremoney,whichis
whathappens.
Ø ThecombinationofGamescostoverrunandoutliersshouldbeconsideredby
anyonewhoisintentionedinhostingtheGames,inparticularsmallandfragile
economiesthatcannotaffordescalatingcostsandrelateddebts.Evenponderinga
slightriskofa50percentcostoverrunonamulti-billionprojectshouldconcern
governmentexecutivesandtaxpayerswhenaguaranteetocovercostoverrunis
imposed,becausesuchoverrunmayhavefiscalimplicationfordecadestocome,
ashappenedinMontrealwhereittook30yearstopayoffthedebtincurredby
the720percentcostoverrunonthe1976SummerGames(Vigor,Mean,andTims
2004:18).SimilarsituationtookplaceinAthens2004,whereOlympiccost
overruns;andthedebtworsenthe2007-2016economicandfinancialcrisis.
3.3TheefficiencyoftheOlympicGamesKnowledgeManagementProgram:Has
costoverrunslowdownovertime?
Asstatedabove,thereasonwhyOlympicGamesholdtherecordofcostoverrunis
thatthestrategy,asbiddingsmovesfromnationtonationandcitytocity,forcehosts
intotheroleofeternalbeginners.During90’stheIOCstartedtoseemoreefficientthe
knowledgetransferbetweenhostcitiesthatmightbeaffectedbythe“eternal
beginner”syndrome(TheOxfordOlympicStudy2016).Sincethattime,thecommittee
initiatesanewprogramcalledthe“OlympicGamesKnowledgeManagement
Program”,whichisaimedatimprovingtheefficiencyindeliveringtheGameshaving
newhostcitiesandnationslearnfromthepreviousones.Themaincharacteristicsof
thisprogramareaplatformofstoredknowledgeandservicesthathostscanresortto,
andaprogramtohaveabunchofpeopleaccountableforfutureGamesparticipateas
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traineesandobserveratpreviousones.Comparabletoallknowledge-transfer
programsingeneral,theaimofthisprogramistofacilitateandsupportlearningacross
cities.AsSchön(1994:69)observed,learningcanonlybesaidtotakeplaceif
performancesimproveovertime.“Performancethatdeteriorates,regresses,or
merelyswingsfromonmodeofactiontoanotherdoesnotqualifyaslearning,”
accordingtoSchön.Speakingaboutcosts,theimprovementswouldtakeplaceinthe
reductionofcostrisk–i.e.costoverrun–overtime.Ifdatashowsadecreaseofcosts,
theysupportthattheOlympicsGamesKnowledgeManagementProgramworks.
Theprogramquotedaheadwasfirstimplementedin1990’sinpreparingforthe
Sydney2000SummerGamesandhasbeenusedsincethen.Inthefollowingtableis
possibletocomparecostoverrunbeforeandaftertheuseoftheprogramin1999.
Table3.3:Sport-relatedcostoverrunintheGamespre-1999andpost-1999,realterms.Thedifference
isstatisticallysignificant(p=0.0101).Source:TheOxfordOlympicStudy2016:CostandCostOverrunat
theGames,2016.
Forthefirstfewyearsafter1999itwasimpossibletodothecomparison,duetothe
factthattheprogramwasshortwhilelaunchedandtheGamestakeplaceeverytwo
years,soobserversweretoofew.
Asthetableshows,costrisksseemtohavecomedownafterthepromotionofthe
OlympicGamesKnowledgeManagementProgram.
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3.4 TheimpactsofOlympicGamesoncommunities
Theimpactofmegasportingeventsonthehostcityorregioncanbemassiveand
various,andagreatpartoftherelevantliteraturesupportstheideathatsuchevents
canmainlygenerateoptimisticresults.Whethermega-sportingeventscansurely
producesuchoutcomes,still,hasbeenunderdebatebyseveralauthors.Theimpacts
ofmega-sportingeventsaredividedinfourcategories:socio-economicimpact,socio-
culturalimpacts,physicalimpactsandpoliticalimpacts.
3.4.1Socio-economicimpact
Themostimportantreasonforhostingamegasporteventforacityisthepositive
outcomethatthisonecouldhaveonthelocaleconomy,whichcanimprovealsothe
statusofthehostsociety.AccordingtoCrompton(1995)“theeconomicimpactofan
eventcanbedefinedastheneteconomicchangeinthehostcommunitythatresults
fromspendingattributedtotheevent”.Inthiswayitisnecessarytounderstandthat
thedirectincomeofamega-sportingevent,fromsourcesliketicketsales,sponsorship
ortelevisionrightsdoesnotcontributetotheeconomicdevelopmentofthehost
community,sincesuchincomeusuallycoversthecostfororganizingtheeventitself.
Theeconomicsupportofmegasportingeventsismainlyrelatedtothechancesthey
provideinincreasingawarenessoftheregionasatourismdestinationandthe
familiarityconcerningthepotentialforinvestmentandcommercialactivitiesinthe
region.Hence,theycaninterestmorevisitorsandinvestment,andconsequently
createnewjobsandcontributetothecommunityeconomicgrowth.Takinginto
considerationtheissueofjobcreation,indisputablyamegasporteventcangeneratea
hugenumberofjobs,notonlyforthoseassociatedwiththeeventitself,butalso
relatedwiththetourismfieldandretailindustryduetotheincreasedvolumesof
spectatorsandtouristthatwouldbepresent,andintheconstructionindustry,
especiallywhenthestagingoftheeventsrequiresmajorinfrastructuraldevelopment,
suchasthecaseoftheOlympicGames.Forexample,whenBarcelonahostedthe
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OlympicGamesin1992,fromOctober1986toJuly1992theunemploymentratefell
from18.4%to9.6%(Brunet,1995).Although,itcouldseemapositiveimpact,ithasto
betakenintoaccountthatthestagingofmega-sportingeventsgeneratesnewjob,but
aglanceshouldbegivenonthequalityandthedurationofthesejobs.AsSchimmel
pointsout“sportingeventscreateservicerelatedjobswhichareoftenpart-timeor
lower-paying”.
Whenthesocio-economicimpactofamega-sportingeventisevaluatedithastobe
takenintoaccountanumberofessentialconsiderations.First,theimportanceof
whetherthehostcityaccomplishestousetheone-timeeconomicimpulseofsuch
eventtochangeitsstructureinawaythatwillprovideaself-sustainingprocess
trough:industrialestablishment,long-lastingtourismorneweconomicrelation
betweencountriesorregions.Second,ithastobeunderstoodthatthedegreeofthe
advantageforthewholeeconomyreliesontheeconomicsituationofthecityand
whenotherinvestmentsrelatedtotheeventareachieved.Aphaseinwhichthereare
increasinginvestmentsactivitiesandincreasingconsumptionexpenditureinlinewith
aneconomicturnaroundmayreducetheeconomicbenefits.Ontheotherhand,if
expendituresmadeduringtheeventaresubjecttoaneconomicrecessionthesewill
beconsiderablyreinforced.
3.4.2Socio-culturalimpact
Megasportingeventarenotonlyasporting-festivity,theyprovidealsosocio-cultural
benefitsforthehostregion.Olympics,forexample,canincreasethelocalinterestand
participationinsportingactivities,andalso,strengthenregionaltraditionsandvalues,
increaselocalprideandcommunityspirit.Increasedsportparticipationcanmakea
significantcontributiontothequalityoflifeofboththeindividualandcommunity.
Hooper(2001)argued“increasedsportparticipationprovidesasenseofwell-being
throughfunandenjoyment,leadingtoself-fulfillmentandachievement,and
encouragessocialinteractionandcohesionforthosewhomayfeelsociallyexcluded”.
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Consequently,hostingmegasporteventscandeliverlocalitieswithanoccasionto
produceworldacknowledgmentandsupporttheirlocalprideandcommunitysoul.
3.4.3Physicalimpacts
Mega-sportingeventscreatealsochancesfortheerectionofnewsportingfacilitiesas
wellastheimprovementofthematerialbackgroundofthehostcity.Thepresentation
ofmega-sportingeventssuchastheOlympicsregularlyinvolvethebuildingofnew
sportingamenitiesortherestructuringoftheexistingonesinordertoarrangethem
forhostingthemultiplesportsinashortperiodoftime.Furthermore,thehuge
numbersofmembersaswellastouristrelatedwiththeeventusuallyrequirethe
constructionofnewhighwaysandthedevelopmentofthepublictransportnetworkto
ensuretheirefficienttransportationtothesportinglocationduringtheevent.In
addition,infrastructuraldevelopmentthatisnotdirectlyrelatedwiththeeventoften
takeplace,suchasfacilities,commercialcentersandopenspaces,whichaimto
improvethephysicalappearanceonthehostcityorregion.Thus,ithasbecome
graduallyusualformega-sportingeventstobeusedasaquickmeanforsignificant
urbanenhancement.Forexample,the2000SydneyOlympicGamescontinuedthe
themeofmajorurbanchange;theorganizersspentA$1.7billionsontheconstruction
ofsportingfacilities,inadditiontoA$1.15billiononsupportiveinfrastructure(Budget
statementoftheNewSouthWalesGovernment2000-2001.InSydneyOlympicand
ParalympicGames,2001,Ch.6).Whilethehostingofmega-sportingeventcanadd
valuetotheurbandevelopmentofthehostcityorregion,attentionshouldbefocused
ontheprocessinvolvedforachievingmajorconstructionprojects.AsLenskyjpoints
out“thesetdeadlinefortheconstructionoflocationsandthecompletionof
infrastructuresupportsareoftenusedbylocalpoliticiansastheexcuseformajor
constructionstoavoidtheusualstagesinurbandevelopmentapplications,including
environmentalassessment,publichearingandsoon”.Thechoiceofsuchprojectsis
usuallyapoliticalone,sincethecostoftheoften-widespreadevent-related
infrastructureisprimarycoveredbylocalgovernments;stressingtheroleof
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governmentsandthesubsequentpoliticsinvolvedinhostingmega-sportingevent
representedbelow.
3.4.4PoliticalImpacts
Hostingamega-sportingeventoftheimportanceoftheOlympicGamesusuallyhasas
itscentralcomponentregional,localorcentralgovernments.Themainreasonisthat
theadministrationsofsucheventsfacedifficultiesincoveringthecostforthe
supportiveinfrastructureoftheeventorevenforoperatingcostsfromticketssalesor
sponsorship,sogovernmentcontributionisrequired.Hence,thedecisiontobidfor
hostingamega-sportingeventissupportedbygovernments,whichregularlymake
thesetypesofdecisions,especiallywhentheeventdeliversthechancetocompensate
thembackeconomically,physicallyorwithothersettlements.Publicgovernanceis
mostlyaffectedinsuchdecisionsatalocalorregionallevel,sincethebenefitsfor
hostingtheOlympicsareawardedtocitiesratherthancountries.Theorganizing
committeeofmega-sportingeventsfrequentlyincludeselectedrepresentativeswho
serveastheirmembersorevenpresidents.Thesepoliticiansoftenexperience
conflictingpressurestorepresentstaxpayersononesideandprofit-orientedinterest
ontheother.
3.5 Recommendationforthepathahead
InthisfinalsectionweexploredtheoutcomesderivedfromhostingtheOlympics,the
difficultiesrelatedtocostoverrunandurbandevelopmentthataffecthostcities.In
additiontogeneralbestpracticelegacyprojection,particularlytheauthoritativeto
integrateaGamesplanwiththecity’slongtermplanningobjectives,andtoplanfor
legacyfromtheverybeginningofthebidprocess(Smith,2012),severalauthorslisted
thefollowingrecommendation(Legacyafterthebid,2014):
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Ø Supportcitiestoformalong-term“bidcoordination”organization.Manycities
applyformultiplebids,notjustfortheOlympics,butalsoforothertypesof
events.However,thereistheriskthattemporarybidorganizationswilleither
suspendafteranunsuccessfulbid,ortransitionintoanorganizingcommittee
afteraprosperousbid.Inthecaseacitypresentsmorethanonebidthereis
theorganizationcommitteethattakecareabouttheproject,buttheideal
modeltofollowwillbetheinstitutionofanexternalorganizingcommittee,
thatwillbeabletohandlethemanagementforpairingindividualbidswitha
long-termurbandevelopmentstrategy.Ifthishypotheticteamisbuiltto
representpotentialstakeholders,itcouldbecomeamanifestoforcoordinating
publicconversationaboutwhatanOlympic,orothermegaevents,should
entailinordertodevelopthecityevenifthebiddingisnotsuccessful.
Ø Monitoringongoingimpactsofbids,especiallyamonghighfrequencybidders.
CitiesthatbidfortheGamesseveraltimes,oftenimplementspartoftheirbid
plansbeforesecuringanOlympichostcontract.Muchofthisinvestmentwas
alreadyaccountedaspartofthenon-Olympicinitiatives,butthebid
themselvesprovidetheimprovementofexistinginfrastructures(empowering
sportsfacilities,forexample).Thisrepresentsachanceforarrangingand
pursuingOlympiclegacythroughoutandamongbids,andformaintaininga
long-termlocaldialogonbidlegacygoals.Italsopresentschallengesto
Olympiclegacy,inthatbidlegacyinvestmentsmustbeplannedfortwo
situations:thatabidisunsuccessfulandthatafuturebidmaybesuccessful.
WhenacitybidsfortheGamesmultipletimestheIOCshouldrequest
documentationonlegaciesofthecity’spreviousbids.Theabovementionedbid
coordinationagenciescouldplayaleadingroleinimplementingand
documentingbidlegacies,andthismonitoringwouldhelpensure
accountabilityandtransparencywithinthoseagencies.
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Ø Addsubsequentseminar,afterthehostcityelections,foralloftheapplicant
andcandidatecities.TheIOCalreadysetspost-electionexaminationsforthe
futurehostcity,managedthroughtheIOCCoordinationCommissions.The
proposedseminarwouldbeanadditional,independentevent.Itwouldideally
playtwofunctions:helpingthefuturehostcitylearnfromthebestpracticesof
itspreviouscontendersandinstructingunsuccessfulbiddersonhowtorealize
theirbidlegacies.Thesecondoneshouldaccentuatemakingpremeditated
long-lastingdecisionsaboutwhetherornottobidinfutureelectionsround,
andonpickingofferedprojectsfromwithinthebidthatwouldstilladdvalueto
thecity.TheseminarcouldbeintegratedintothecurrentOlympicGames
KnowledgeManagementframework,asaworkshopanalogoustothebidcities
orientationseminar(heldattheinitiationofahostcityelectionsround).
Thesuggestionsaboverepresentawaytoenhanceandavoidthewasteofmoneyand
timeduringtheorganizationandafterthehostingoftheOlympicGames.Eventhough
thepointslistedareveryuseful,isnoteasytoputthemintoaction,sincethereareto
manyfacetstobeconsideredthatmostofthetimemakesdifficulttonotovercoming
thelimitsimposed.
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CONCLUSIONS
Thispaperreviewsthecurrentliteratureonthebiddingprocessformegaevents,in
particular,megasportingeventsandtheRomeOlympicGames2024asthecase
exampletoclarifytheimpactsonthehostcityandcountry.Thechoiceofthistopicis
toputinevidencethekeypointsofmanagingandbiddingforsuchprojects,but
especiallyanalyzingthepositiveandnegativeaspectsandthechallengesthatproject
managersfacebecauseofthecomplexityofthese.Sincetheroleoftheproject
managerisfundamentalforthistypeofeventsithasbeeninterestingreportingthe
exampleofarespectableprojectmanagersuchasMarkThurston;hisexperiencein
managingverycomplicatedandarticulatedmegaprojectssuchastheCrossrailandthe
LondonOlympicsin2012,representsaninterestingcasewhereheexplainsthe
challengesandthestepshetookinordertoaccomplishtheobjectivespre-established
todelivertheprojectsathisbest.
Theaimofthispaperwastostressthebiddingprocessandallthefacetsthat
characterizedmegaprojects.Mostpeopledon’tknowalltheworkbehindthe
structureofthesemegaevents.Theyparticipateandmakethebestoutofthese
events,don’texpectingthatforasingleeventthereareyearsofpreparationand
especiallybattlesandriskstakeninordertodeliverthebestperformanceforeach
singleoccurrence.Hence,totheextentofrevealingthebackgroundofthesetypesof
eventsItriedtoanswerthefollowingquestions:Howthebiddingprocessisbuilt?
Whatarethemaintrialsencountered?Howhostcitiesandcountriesbehavewhen
theycompetetohostamega-event?Whatarethepositiveandnegativeoutcomes?
Toanswertheaboveinquiries,Ireferredtoseveralpaperswrotebydifferentauthors
whoexperiencedandmanagedprojectsofsuchimportance.WhatIdiscoveredisthat
therearemanystepstotakeintoconsiderationwhentalkingaboutbiddingandmega
projects.Thereareprocessestakingseveralyearsbeforebeingapprovedandthen
implemented,andespeciallyalotofcoststobecoveredthatveryoftenare
transformedinliabilitiesforthehostcities.Suchacostly,complexandhighprofile
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activityashostingtheOlympicGamesinvolvesdifferentinterestsfluctuatingfromthe
commercial,withthepurposeofmaximizingprofit,tothegovernmental,withthe
objectivesforpolitical,economicandsocialbenefits.Settlementsforthehostcities,
derivingfromstagingtheGamescanbeenormousandvarious.Forexample,theycan
recommendeconomicactivityasaresultofthejobsmadeinsociallyrelatedsectors.
Thecreationofsportsamenitiescanalsoplayaroleintheprogramsofurbanrenewal
byintroducingnewsportingandrecreationalfacilitiesintopreviouslyunder-provided
spaces.Onalargerscale,organizationsfortheeventcanalsoofferameansof
justifyingnewinvestmentintransportandinprojectstoenhancethecity’sscenery
andestheticalpresence.Furthermore,Ihaveseenthatthefundamentalqualitiesof
mega-eventshavebeenclassifiedastheunitofimpact,themanagerialcomplexity,
andcommitmentofvariousrepresentativesandscaleofthelength.Duetotherising
extent,theperformanceoftheOlympicsnowincludesconsiderableinvestmentin
sportingcapacities,addingalsotheimprovementorconstructionofother
infrastructureandservices,suchashousing,transportationandcommunications.
Recentmega-eventshasshownhowtheoutcomes,positiveornegative,affected
results.Increasedcityawareness,economicdevelopment,creationofnewjob’s
positionsandurbanreinforcementhavebeenseenalongwithhighinflation,high-
pricedhousingandevencitydenigration.However,ItisarguedthattheIOC,jointly
withlocalOlympicmanagersandpublicrelationsspecialists,haslargelysucceededin
maintainingtheimpressionthat,whilebadeffectsaswellaspressuresmaymanifest
themselvesinmisconductsorobstructions,thesportingworldisunequivocally
supportiveoftheOlympicmission.Hence,notwithstandingthegeneraldisapprovals
surroundingtheinstitutionoftheOlympicGames,whichmainlyfacethecorrelation
betweentheconceptsofOlympicsandthecurrentnatureoftheevent,theGames
continuouslygrowinscaleandimportance.ThecurrentOlympicsshowthatthe
economicbenefitsaretheprimaryreasonforalltheinterestsinvolvedinhostingthe
Games,beitthelocaladministration,whichpursuescitydevelopmentoftheregion
throughinfrastructuremadeforstagingtheevent,ortheorganizationthatchooseto
becomesponsorsoftheeventtoattractadvertising.Takingintoconsiderationthe
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candidatureofRomefortheOlympics2024,thedecisionoftheMajorisquestionable,
sincethecandidaturecouldhaverepresentedanoccasionofredemptionforthe
eternalcity.Itisconsideredoneofthemostbeautifulcitiesintheglobeandthe
chancetohostagain,afterseveralyears,theGamesshouldbeconsideredanasset
andawaytoimprovesomeofthecity’sareathatotherwisewouldbeunused.It
wouldalsohaverepresentedavalidcircumstancetoattiremoretouristsandorganize
moreeventsboundedtosportsorotherculturalactivitieswithaviewofthefuture
Games.
Asaresult,whilebiddersfightforthegloryofwinningthestagingofamega-event,the
wantedfiscal,economic,social,politicalandculturaloutcomesareprojectedto
supporttheiractions.Inconclusion,throughthiswork,havingseenthateverything
thatshinesisnotalwaysgold,ispossibletostatethatevenifisdifficulttomanageall
theaspectsofpreparingOlympicsandmegaeventsingeneral,organizingcommittees
shouldarrangeaspecifiedprogramtofolloworatleastimposestrictpointsinorderto
allowcitiestobeeligible,respectingdeadline,costsandothernon-directlyrelated
costssuchastheOlympicAgenda2020istryingtodoing.But,basedonmyresearch
themostimportantaspectstotakeintoaccountshouldbe:
• Assuringthattheinfrastructuresbuiltarenotanymoreleftas“ghostsamenities”
becausetheywouldrepresentjustawasteofmoney,paidbycitizensorsponsoredby
theoneswhokindlydonatesittothehostcity.
• Super-visioningtheliquidity’sflows.
Theorganizingcommitteeshouldensurethatnoonespeculates,earningmoney,on
thesetypesofeventsthatshouldrepresentanoccasiontounifypopulation,cities,and
nationsintherepresentationofoneofthemostspectacularworldwideevents.
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http://businessschool.luiss.it/news/la-professione-del-project-manager-chi-e-cosa-fa-
e-perche-le-aziende-ricercano-questa-figuraVisitedon29/09/2016
https://en.wikipedia.org/wiki/Bids_for_Olympic_GamesVisitedon29/09/2016
73
http://www.crossrail.co.uk/Visitedon25/09/2016
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of-branding/Visitedon15/11/2016
http://www.whoi.edu/procurement/managing-bids-negotiating-pricesVisitedon
30/09/2016
http://gamesbids.com/eng/tag/Rome-2024/Visitedon15/11/2016
https://en.wikipedia.org/wiki/MegaprojectVisitedon29/09/2016
http://www.slideshare.net/russoswaldo/london-2012-case-studie-proyect-
management-case-44057333Visitedon3/11/2016
https://www.olympic.org/all-about-the-candidature-processVisitedon10/12/2016
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2024-olympics-even-though-candidature-file-delivered/Visitedon10/01/2017
http://www.bbc.com/news/world-europe-37624948Visitedon10/01/2017
http://www.independent.co.uk/sport/olympics/rome-2024-olympic-bid-italy-mayor-
withdraws-mayor-rubbish-collection-corruption-a7357046.htmlVisitedon10/01/2017
74
http://www.ilfattoquotidiano.it/2016/10/11/olimpiadi-2024-il-coni-ha-interrotto-la-
candidatura-di-roma-ultima-speranza-di-malago-caduta-della-raggi-entro-
febbraio/3090556/Visitedon15/01/2017
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http://edition.cnn.com/2015/09/16/sport/olympics-2024-los-angeles-paris-rome-
budapest-hamburg/Visitedon11/11/2016
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29/09/2016
Records:ManagingMega-projectschallenges:lessonsfrommajorUKprogrammes.
KeynotespeechbyMarkThurston,LUISSGuidoCarli,10/05/2016.
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SUMMARY
WhatareMegaProjects
“MegacomesfromtheGreekword“mega”andmeanslarge,vast,highandimposing.
Theyrepresentcomplex,large-scaleendeavorsthatcostabilliondollarsormore,take
manyyearstodevelopandbuild,involveprivateandpublicstakeholders,andimpact
millionsofpeople”(BentFlyvbjerg,2014).Hirschman(1995:vii,xi)calledsuch
projects“privilegedparticlesofthedevelopmentprocessandpointedoutthatoften
theyaredesignedtoambitiouslychangethestructureofsociety,asopposedtominor
andmoreconventionalprojectsthatusedtofitintopre-existingstructuresanddonot
attempttomodifythese”.Hence,MegaProjectsarenotalargervisionofminor
projects.Theycoveracompletelydifferentstrainofprojectsintermsofcomplexity,
lead-timeaspiration,andstakeholderinvolvement.Subsequently,theyarealsovery
differentanddifficulttomanage.Megaprojectsareincreasinglyusedasthefavorite
transfermodelforgoodsandservicesacrossarangeofbusinesssectorslike
infrastructure,IT,bigscienceandmajorevents.Samplesofmegaprojectsareairports,
high-speedraillines,damsandtheOlympics.Eveniftheseprojectsaremadeinorder
toimprovecommunity’squalitylife,suchasconstructingbridgesthatallow
connectionsfromoneplacetoanother,ratherthanorganizingamegaeventthatwill
providemanyjobs,theyhaveseveralweakpointsthataretoughtoovercomeand
couldleadtothefailureoftheseMegaProjects.Theseare:
• Riskduetolongplanninghorizonsandcomplexboundaries.
• Scarceplannersandmanagersexperiencethatleadstoleavingleadership
fragile.
• Decision-makingandplanningaretypicallymulti-actorprocessesinvolving
multiplestakeholderswithconflictinginterests.
• Non-standardtechnologyanddesignthatmakestheprojectuniqueand
preventlearningfromotherprojects.
• Earlyovercommitmentthatmakesimpossibletolookforalternativeanalysis
• Changeoftheprojectscope
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• Costoverrunsanddelays
Nowadaysprojectmanagerlivesinstuckwiththemanagementofmegaprojects;they
donotknowhowtodeliverthemsuccessfully,therefore,theytendtobreakand
reorganizeagain,andsometimesrefinancing,inattempttohitproblemsanddeliver
someversionoftheinitiallyscheduledproject.Thus,isnoteasytodrivemegaprojects.
Successisdefinedastheprojectbeingdeliveredontime,budgetandbenefits.But,as
theevidenceindicates,aroundoneoftenMegaProjectsisonbudget,onscheduleand
onbenefits.ManagingMegaProjectssuchasahugeinfrastructureenterpriseorplant
developmentrequiresbetterqualityprojectmanagementcontrolsinordertoavoid
excessivecostsandscheduleoverruns.Earlyorganizationandplanningofconstruction
MegaProjectssetthestageforeverythingthattakesplaceaftertheproject
authorization.Oncematerials,machineryandmanpowerentertheframe,muchofthe
planningelasticitydisappears.Hence,ishardtobeontrackwiththepre-established
plans.Bybeingsmartaboutprojectdelivery,contractingstrategiesandbyputting
appropriateprojectmanagementcontrolsinplace,manyprojectriskscanbe
eliminatedormitigated.Furthermore,isusefulforprojectmanagerstosharetheir
knowledgeamongprojectsinordertohaveafullpictureoftheproblemthereare
goingtoface,inparticular,isusefulhavingmoreresourcesandtimesavedtocount
on.Inthenextsections,wewillgothroughMegaProject’schallengesreportedby
examplesandadirectdepositionbyoneofthemostfamousUKprojectmanager:
MarkThurston.
MegaProjectsChallenges:KeynotespeakerMarkThurston
Thekeynotespeaker,MarkThurston,detectedsomefactorsmorespecificallyrelated
toMegaProjects:scalefactors,complexity,regulation,politicsandinterface.Allof
thatbasedonlongpersonalexperience,puttingevidenceonfourprojectsofhuge
dimensionssuchasLondonOlympicGames2012,realizationofa25kmtunnelright
belowtheThames(Tidewayproject)andtherealizationofahighwayfromLondonto
LeedsandManchester(HighSpeed2project).Furthermore,MarkThurstonexhibited
theinterestingparallelbetweentheconceptof“homeostasis”foralivingsystemand
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themodelingofthevariablesettingmanagementsuchastomaintainthestabilityofa
complexsystem,appliedinthefieldofmanagementoflargeprojects.Thatargument
hasbeenaninterestingdebatewiththegreatparticipationofthosepresent.Hethen
setsoutthefactorsofgreatestinfluenceoflargeprojects,dividedintofour
perspectivesofgreaterimpact:peopleandleadership,governanceandcontrols,
organizationandculture,outsideworld.Thedeepeningissuesbroughttofocusthe
debateontopicsrelatedtoriskmanagement,theimportanceofthedefinitionand
scopeofcommunicationanddisciplinenecessarytoconductinanefficientwaythese
companies.
FactorsrelatedtoMegaProjects
Accordingtothespeaker,thetransferofknowledgeisoneofthekeypointstobe
takenintoconsiderationwhenwetalkaboutMegaProjects.Takingtheexampleof
Terminal5atHeathrowAirportinLondon,itwasconsideredthefirsttimefrommany
yearswhereprimeorganization,supplychainandgovernmentregulatorscame
togetherandgotitright.TherehasbeenalotofresearcharoundTerminal5project
andithasbeenseenasaplatformforthingsthathavegoneandhappenedsince.Also,
theOlympicswerebuiltonallthegoodworkingaspectsthatweredoneoutat
Heathrow.TheseMegaProjectsaresignificantundertakingsthatgovernments,
agencies,countrieshavetakenonandthesefiveelements:scalefactors,complexity,
regulation,politicsandinterfacearemeanttobethefoundationforsuccess.Theyare
thethingsthatscancomplexity,andbecauseofthatscaleandcomplexity,thereis
invariablyhugepoliticaldimensionandtheUKGovernmenthasbeenattheheartof
fundingmanyoftheprojects.Inevitably,thescancomplexityleadstointerfacesand
theseinterfacesarenotnecessarilytechnical;theycouldbealsoorganizational(the
channeltunnelthatisbetweennations).Ifwetakeastepback,wewoulddefineMega
Projectstheonesthathavethosecharacteristics.
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WhatisaBid
TheBidisthedealer'sreplytoaclient’srequestforaproject;theanswertothe
questionspresentedbytheclient.Itisreferredalsotoaproposal;itisabinding
document,firstlyevaluatedbytheusertoestablishiftheworkshouldbeendowed
andifitis,itbecomesabinderonthepartofthesupplierastowhatwillbedone.
Therearemanytypesofbids,astherearemanydifferentprojects.Thebidding
processisakeysalesactivityformostservicesandproductsorientedorganizations.
Theprinciplesofbidwritingapplyequallyacrossthescalefromverysmalltoverylarge
project.Focusingonthecommercialbidresultsoneoftheseveralpossiblesuppliers
beingawardedacontracttoexecuteaprojectoraprogramofwork.However,many
oftheprinciplestobediscussedremainvalidoutsideofbusinesscontext,suchas
whendivingforaninternalprojectorundertakinganon-commercialbasis.Thebid
processcontrolsthewaythebidgroupprepares,maturesandsendsthetendertothe
customer.Ifwellprepared,thebidproposalrepresentsaperfectblueprintforsuccess.
Mostsuccessfulproposalsarenotcasualresults.Theyarecreatedfollowingstructured
bidprocessaimedtoguidethebidteamintherightdirection.Thekeyofhavingan
establishedbidprocessisessentialtoensurethatstepsarefollowedandthingsare
doneintherightwayattherighttime.
TheBidprocessfortheOlympicGames
TheIOC’SadvancingdevelopmentoftheOlympicMovementhasshapedthecurrent
bidprocess.TheIOCconstantlytriestoincreasetheavailableresourcesandrefinethe
prerequisitesforbidcitiestomaximizethebidexperienceandaspireforaneventof
superiorlevel.ParalleltheIOC’Sfruition;hostsandinnovativebiddershavelearnedto
shapethebidprocesstotheirlong-termbenefits,inparticularthroughurban
renovationinitiatives.Theearlystageofbidandthebidprocessitselfareconsidered
crucial,andtheguaranteesmadeduringthesestagesaremandatoryifacityis
selectedtohosttheGames.Inthisway,applicantcitiesarestronglyencouragedto
apprehendtherequestsofhostingtheGamesbeforebuildingpublicsupportforabid
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andjoiningthefirststageoftheapplicationprocess.TheIOCsupportswhyitsplitsthe
bidprocedureintotwoperiodsasitsapproachofpickingthemostfittingcitytohost
theGamesandmeetitsobligationtoguaranteeapositiveOlympicLegacy.Justas
Olympicathletescontendinaseriesofqualifyingtrials,citiesundertakeasimilarly
complexrankingprocedurebasedontheircapacitytocompletetheGames.Ineach
stage,theApplicantandtheCandidate,theIOCtriestorecognizethemostsuitable
candidatestomoveonward.Althoughatieredbidprocesscanputanimportant
amountofstressoncompetingcities,itcanalsoacttoputanedgetothefinancial
burdenonbidderswhoarenotreadytoexecutetheGamesCandidatureFee(Phase1,
$150,000)andCandidatureFee(Phase2,$500,000)(InternationalOlympicCommittee,
2003).ThesefeesrepresentjustasmallpartofthecostofpreparinganOlympicbid,
whichcostabout$30million.Withineachbid,budgetestimationmustbetakeninto
considerationsincetheOrganizingCommitteefortheOlympicGames(OCOG)budget
excludesmilestoneitems.Significantexpenses,suchastransportationservicesand
infrastructureareoverduetocitiesindependentlyfromanythingenclosedor
contemplatedbytheIOC.Theseelementsmaybeinstrumentalinthesuccessofthe
OlympicLegacy.Successfullyexecutingthestepsofabidrequiresthatacityis
sustainedatanationallevelbybothpublicandprivateresourcesdistinctlyfrom
Olympicsrelatedfunding.TheIOCdeliverstocandidatecitiesinstructionandpractical
learningopportunitiesthroughtheTransferofKnowledge(TOK)program.Sincethe
OlympicGameStudyCommissionof2003,theIOChasenlargeditseffortstoimprove
Gamesmanagingprocessthroughincreasedassistancetorepeatbidders.Hence,cities
ponderingabidnowhavetochoicetotieontheIOC’splanningandlearningmeans,
manyofwhichspecificallyfocusonapplicationrequests.Consequently,submissions
continuetoriseinvaluefromyeartoyearintermsoftheiracquiescencewithIOC
instructionsanddeadlines.
WitheachOlympiad,theIOCrestructurethebidprocessinordertoincorporate
valuablelessonlearned.AstheprocessdoesnotpromiseapositiveOlympicLegacy,
theIOC’snewassetsandnecessitiesareusedasstandardstoafruitfulbidandbuilding
blockforapositivelegacy.
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ThecandidatureofRome2024:Whatwerethekeypoints
ThemanifestusedforhostingtheOlympicGameswasbasedonshowingtheartofthe
Italianpillarstotietheworldthroughsport.Thevisionreliesonfamilyvaluesthat
Italiansholdandthewarmwelcomeandhighqualityexperiencethatisproposedtoall
visitorsthatcometoenjoythebeautyandtraditionalcultureofRomeandItaly.The
purposeisshowthepowerofsporttoconnectpeople,families,places,culturesand
faithsandwanttousetheOlympicandParalympicGamesasacatalysttoachieve
thesegoals,furnishingever-longmemoriesofpooledexperiencesfortheentirety.The
GamesConceptisguidedbythisvision,motivatedtorecreatethesenseofpride
generatedbyhostingtheRome1960Gamesandthekeymilestonethatthis
representedinRome’sprogress.Theobjectiveistodevelopanewmilestonein
Rome’shistoryin2024,aturningpointintheforthegrowthofthecity,forfutureuse
andasanincentivetoimprovethequalityoflifeforallRomanresidents.Italywantsto
demonstratetotheworldthatcanachieveitsgoalsbyhostinghighlyprosperous
majorevents,suchastheRome1960OlympicGamesandtheMilanWorldExpo2015.
Theseaspirationsarealsoinlinewiththelongtermplansforthedevelopmentof
RomeandwiththeOlympicAgenda2020.TheItalianconceptoftheGamescanbe
summarizedinthefigurebelow.
Figure2.3:RomaCandidateCityOlympics2024.(Candidaturefilestage1:Vision,GamesConceptand
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Strategy,2015)
Exploringthesepointitcanbepossibletoobservehowthedifferentpointsarefaced.
Ø Culture,Lifestyle&Landscapes–Linkingthedifferentcommunitiesandbeliefs
ofRome,encouragingallvisitors,betheyathletes,spectators,officialsorthe
media,to‘experiencelifetheItalianway’,throughahighqualitycelebrationof
sport,inauniqueoutdoorscenery(Candidaturefile–Stage1:Vision,Games
ConceptandStrategy).Thiswillincorporatesupportingsocialinteraction,using
Rome’surbanparksandsquares,astheartoftheItalianwelcomeandlifestyle
tooltodevelopcommunityspiritacrossthewholetocreateasenseof
uniformitytotheworldthroughsport,Romeanditslocalpopulation.This
eventisalsoseenasachancetorenovatethecity’sinfrastructureandenhance
thequalityoflifeforRome’scitizens.Thesedevelopments,whichfitperfectly
withtheOlympicAgenda2020values,willbenefitbothcitizensandvisitors,
leadingtobringRomemorereachable,enjoyable,sustainableandevenmore
spectacular.
Ø Families–Usingfamilyvaluesandconceptstocreateatrulycelebratory
atmosphereanddeliverwidersocialopportunitiestotie,notonlyItalians,but
alsoplayers,touristsandtheOlympicFamily.Contestantswillcelebratewith
theirbelovedandwillhavethechancetomeetandexploreRomeandItaly
together.TheGamesrelatedprogramswouldhelptosurroundthesecultural
valueswithintheframeofamorecompletesociety,endorsingcommunication
acrossgenerations.
Ø Tradition&Innovation/Technology–CombiningRome’stradition,beautyand
heritagewithnewconceptsandinnovationtodeliveraforwardthinkingGames
concept,inourevergrowingtechnologicalworld.Rome’sGameswillshowthe
historyandheritageofsport,inamodernandextensiveway.Incorporating
revolutionaryideasanduseItaly’stechnologicalknow-how,astheyalreadydid
withthe1960Games,asthefirstOlympicGamestobebroadcast
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internationallyandusetechnologysuchasslowmotionreplays.Theproposalis
foratriumphantparadeofmedalwinnersatGames-time,forthefirsttime,in
theamazingnight-timesceneryoftheColiseum,thesiteofmanyhistorical
competitionsandpublicshows,itwouldrepresentauniqueexampleofhow
mergingtraditionandinnovation.
ThereareaseriesofobjectivesthatItalianrepresentativewantstoreachbyhosting
theOlympicGames(CandidatureFilestage1:Vision,GamesConceptandStrategy,
2015).
Objective1:Createaconnectionwithpeople,notonlylimitedtothecitythatwill
hosttheGames,butatnationalandinternationallevel.Thepurposeistodeliveran
outstandingexperienceforathletesandspectatorscreatinglong-termmemoriesthat
aregoingtobuildtheOlympichistory.Thiswilltakeplaceinprofounderand
noteworthylegacies,incorporatingpride,honorandexcitementforthebenefitsthat
couldthiseventgivetothecityandtothecountry.
Objective2:BuildnewOlympicGamesonthelegacyofRome1960,usingthenational
traditiontostimulatenewgenerationandstrengthensocietythroughsports.
Celebrateandencourageparticipationinsportanddelivermoresporting
opportunitiesandundertakings.ThesebenefitstoItaliansportinclude:
Ø Renewedandnewsportinglocations
Ø Peopleofallagestakingpartinsportandfeelingthehealthandpersonalbenefitof
anactivehealthylifestyle
Ø Moreefficienttalentidentificationtohelpmoreyoungersachievetheirsporting
goals
Ø Moreeliteathletesachievingsuccessontheworldstageandactingasrolemodels
foryoungpeople.
Objective3:Createinteractionswithgroups,familiesandsocietyandimprovethe
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qualityoflifeforRomanandItaliancitizens.TheGameswillbeusedasaninstrument
topromotegreatersocialinclusionandrespectthenexttogetherofdifferentcultures,
beliefsandreligions,forthelong-standingbenefitofsociety.Someoftheinitiatives
include:
Ø Familyfriendlyprogramsandnotionsre-establishingtheimportanceoffamily
valueswithinItaliansociety
Ø OlympicandParalympiceducationprograms,before,duringandfollowingthe
Games,providingalegacytoRomeandItaliansport,educationandsociety,aswellas
theOlympicMovement
Ø Greaterpromotionandawarenessofthebenefitsofactivehealthylifestylesto
augmenthealthandwellbeing
Objective4:Improvecity’sinfrastructureandlivingenvironmenttocreateamore
accessibleandsustainablecity.Bycompletingthisitispossibletoreachabetter
qualitylifestandardforcitizens,inrespectfortheRome’shistoricalenvironment.
Someofthebenefitsinclude:
Ø ConnectivitybetweenRome’sdistricts,withimprovedtransportconnections
Ø Theadoptionofnewsustainabilitystandardsandtransparentbestpractice
constructionprocesses
Ø Amoreaccessible,inclusivecity,providingimprovementsnotonlyforpeoplewith
disabilities,butalsoforeveryone,allowingvisitorstogetaroundandenjoythecity
easily.
Objective5:IncorporateinnovationandtechnologyintoallGames-relatedplanning
andprogramstodeliveroutcomesofthehighestquality.Rome2024planistouse
technologyandinnovationpositioningasthelargestmanufacturingcountryinEurope.
WorkingwithsomeoftheItalians‘hi-techclusters’,allowsnotonlyshapingthebidbut
alsoexploitingtheopportunitiesthatbiddingforandhostingtheGamescanbringand
theresultantbenefitstobedelivered.Newideasandinnovationswillbepromoted,
enhancingRome’spositionasahubforcreativity,throughengagementswith
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universities,newbusinesses,aswellassportsrelatedresearchprojectsinthe
technologysector.Thiswillinclude:
Ø Continuationofthe#LabRoma2024(innovationecosystemnetwork)initiative,
introducedintheCandidaturephase,tobuildonRome’spositionasanincubatorhub
fornewbusiness.
Ø DevelopingtheresearchcapabilitiesatTorVergataUniversityaspartoftheGames
legacyplansthroughadditionalstructureandresearchprograms,involvingmore
youngpeopleandstudents.
Romewithdrawfromthe2024GamesOnOctober11th2016VirginiaRaggi,MayorofRome,duringapressconference
withdrewthecandidatureofRomefromtheOlympicsin2024.Thereareseveral
reasonsthathaveledtomakethisdecision.TheMayorsaid:“Isirresponsiblesaying
yestothiscandidature”continuing“Wedidnotchangedourmind,westrengthened
ourposition”,ongoing“Wewereaskedtocarryonmoredebts,wecannotafford
that”(www.repubblica.it).TheMayorexplainedthattheyarestillpayingdebtsforthe
expropriationofthegamesheldinRomein1960.TheyhavenothingagainstOlympics
andsportsingeneral,buttheirwillingnessistousesportnotjustasanexcusefora
newinefficientspendingforthecityofRome;therearealotofpromisesdoneduring
theOlympics,butpeopleshouldtakeintoaccounttheseveralstructuresbuiltthatare
nowunused,suchastheinfrastructuresfortheWorldAquatics.
ThepositionoftheMayorisclear,hostinganeventsuchastheOlympicswillincurin
costoverrunsmeaningthetransformationofthiscostsinliabilitiesforthecity,its
citizensandespeciallyfortheinfrastructuresthathavetobebuiltinordertobe
suitableforholdingtheGameswithouttheguaranteetousetheseappropriatelyafter
theevent.
Ontheotherside,GiovanniMalagò,presidentoftheINOC(ItalianNationalOlympic
Committee)stronglydisagreewiththedecisionmadebyVirginiaRaggi.Hesupported
theimportanceofthiscandidatureasachanceofredemptionforthecityRome.He
underlinedtheessentialelementsthatcouldhelpthecityofRometoimprovepublic
transportation,publicinfrastructuresandcreatenewjobpositions.Theserepresentsa
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bunchoffundamentalsthatcouldbeconsideredafirststepinordertodevelopthe
eternalcity,justliketheOlympicsheldin1992contributedtothecityofBarcelonain
givingbirthtonewcityareas.Tostrengthenhisposition,thepresidentoftheINOC,
referstosomeofthekeypointslistedbyAgenda2020(www.Olympics.org):
Ø Changestothebiddingprocess,newwaytoinvitecandidatecitiestopresenta
projectthatsuitstheirsporting,social,economicandenvironmentallong-term
planningneeds.
Ø Reducingbiddingcostsbyreducingthenumberofpresentationallowedand
providingasignificantfinancialcontributionfromtheIOC.
Ø Organizationofsportsandeventsoutsidethehostcityandeven,inexceptional
cases,outsidethehostcountry,alwaysrespectingtheintegrityoftheOlympic
Village.
Ø Adaptingandfurtherstrengtheningtheprinciplesofgoodgovernanceand
ethicstochangingdemands.EnsuringcompliancewiththeBasicUniversal
PrinciplesofGoodGovernanceandtransparencyofaccounts,withtheIOC’s
financialstatementstobepreparedandauditedaccordingtotheInternational
FinancialReportingStandards(IFRS).
LastOctober11th2016,GiovanniMalagògaveuponhisconflictwiththedecision
madebytheMayor,deliveringtotheIOCtheletterthatcertifiesthewithdrawof
Romefromthe2024Games.
CostandcostoverrunattheGames
SincethedevelopmentofthemodernOlympicsin1986attentiontocostandcost
overrunoftheGameshasbeenraised.BaronPierredeCoubertin,themanresponsible
forthemodernGames,referredto“theoftenexaggeratedexpensesincurredforthe
mostrecentOlympiads”(Coubertin,1911).
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CostforhostingtheGamesfallintothreecategories,establishedbytheIOC:
1.OperationalcostdeservedbytheOrganizingCommitteeforthepurposeofhosting
theGames.Technology,workforce,transportationrepresentthevastmajorityofthis
clusterandadministrationcosts.Othercostsincludesecurity,medicalservicesand
ceremoniesservices.
2.Directcapitalcostincurredbythehostcountryorcityorprivateinvestorstobuild
theOlympicVillages,mediaandpresscenterandthecompetitionvenuesrequiredto
hosttheGames.
3.Indirectcapitalcostssuchasforroad,airportorinfrastructures,rail,hotelorother
businessinvestmentnecessaryfortheGamesbutnotdirectlyrelatedtostagingthe
Games.
ThefirsttworepresentsthecostsrelatedtothesportsoftheGames;thelastone
representstheindirectcostsrelatedtotheGamesandgettingdataabouttheseisso
difficultandtheyarerare,duetothearbitrariness.Regularly,theindirectcostsare
higherthanthedirectones.BaadeandMatheson(TheOxfordOlympicStudy,2016)
foundthatforsevenGamesforwhichtheycouldobtaindataforbothsports
infrastructureandgeneralinfrastructure,inallcaseswasthecostofgeneral
infrastructurewashigherthanthecostofsportinfrastructure,sometimesseveral
higher.
Recommendationforthepathahead
InthisfinalsectionweexploredtheoutcomesderivedfromhostingtheOlympics,the
difficultiesrelatedtocostoverrunandurbandevelopmentthataffecthostcities.In
additiontogeneralbestpracticelegacyprojection,particularlytheauthoritativeto
integrateaGamesplanwiththecity’slongtermplanningobjectives,andtoplanfor
legacyfromtheverybeginningofthebidprocess(Smith,2012),severalauthorslisted
thefollowingrecommendation(Legacyafterthebid,2014):
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Ø Supportcitiestoformalong-term“bidcoordination”organization.Manycities
applyformultiplebids,notjustfortheOlympics,butalsoforothertypesof
events.However,thereistheriskthattemporarybidorganizationswilleither
suspendafteranunsuccessfulbid,ortransitionintoanorganizingcommittee
afteraprosperousbid.Inthecaseacitypresentsmorethanonebidthereis
theorganizationcommitteethattakecareabouttheproject,buttheideal
modeltofollowwillbetheinstitutionofanexternalorganizingcommittee,
thatwillbeabletohandlethemanagementforpairingindividualbidswitha
long-termurbandevelopmentstrategy.Ifthishypotheticteamisbuiltto
representpotentialstakeholders,itcouldbecomeamanifestoforcoordinating
publicconversationaboutwhatanOlympic,orothermegaevents,should
entailinordertodevelopthecityevenifthebiddingisnotsuccessful.
Ø Monitoringongoingimpactsofbids,especiallyamonghighfrequencybidders.
CitiesthatbidfortheGamesseveraltimes,oftenimplementspartoftheirbid
plansbeforesecuringanOlympichostcontract.Muchofthisinvestmentwas
alreadyaccountedaspartofthenon-Olympicinitiatives,butthebid
themselvesprovidetheimprovementofexistinginfrastructures(empowering
sportsfacilities,forexample).Thisrepresentsachanceforarrangingand
pursuingOlympiclegacythroughoutandamongbids,andformaintaininga
long-termlocaldialogonbidlegacygoals.Italsopresentschallengesto
Olympiclegacy,inthatbidlegacyinvestmentsmustbeplannedfortwo
situations:thatabidisunsuccessfulandthatafuturebidmaybesuccessful.
WhenacitybidsfortheGamesmultipletimestheIOCshouldrequest
documentationonlegaciesofthecity’spreviousbids.Theabovementionedbid
coordinationagenciescouldplayaleadingroleinimplementingand
documentingbidlegacies,andthismonitoringwouldhelpensure
accountabilityandtransparencywithinthoseagencies.
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Ø Addsubsequentseminar,afterthehostcityelections,foralloftheapplicant
andcandidatecities.TheIOCalreadysetspost-electionexaminationsforthe
futurehostcity,managedthroughtheIOCCoordinationCommissions.The
proposedseminarwouldbeanadditional,independentevent.Itwouldideally
playtwofunctions:helpingthefuturehostcitylearnfromthebestpracticesof
itspreviouscontendersandinstructingunsuccessfulbiddersonhowtorealize
theirbidlegacies.Thesecondoneshouldaccentuatemakingpremeditated
long-lastingdecisionsaboutwhetherornottobidinfutureelectionsround,
andonpickingofferedprojectsfromwithinthebidthatwouldstilladdvalueto
thecity.TheseminarcouldbeintegratedintothecurrentOlympicGames
KnowledgeManagementframework,asaworkshopanalogoustothebidcities
orientationseminar(heldattheinitiationofahostcityelectionsround).
Thesuggestionsaboverepresentawaytoenhanceandavoidthewasteofmoneyand
timeduringtheorganizationandafterthehostingoftheOlympicGames.Eventhough
thepointslistedareveryuseful,isnoteasytoputthemintoaction,sincethereareto
manyfacetstobeconsideredthatmostofthetimemakesdifficulttonotovercoming
thelimitsimposed.
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CONCLUSIONS
Thispaperreviewsthecurrentliteratureonthebiddingprocessformegaevents,in
particular,megasportingeventsandtheRomeOlympicGames2024asthecase
exampletoclarifytheimpactsonthehostcityandcountry.Thechoiceofthistopicis
toputinevidencethekeypointsofmanagingandbiddingforsuchprojects,but
especiallyanalyzingthepositiveandnegativeaspectsandthechallengesthatproject
managersfacebecauseofthecomplexityofthese.Sincetheroleoftheproject
managerisfundamentalforthistypeofeventsithasbeeninterestingreportingthe
exampleofarespectableprojectmanagersuchasMarkThurston;hisexperiencein
managingverycomplicatedandarticulatedmegaprojectssuchastheCrossrailandthe
LondonOlympicsin2012,representsaninterestingcasewhereheexplainsthe
challengesandthestepshetookinordertoaccomplishtheobjectivespre-established
todelivertheprojectsathisbest.
Theaimofthispaperwastostressthebiddingprocessandallthefacetsthat
characterizedmegaprojects.Mostpeopledon’tknowalltheworkbehindthe
structureofthesemegaevents.Theyparticipateandmakethebestoutofthese
events,don’texpectingthatforasingleeventthereareyearsofpreparationand
especiallybattlesandriskstakeninordertodeliverthebestperformanceforeach
singleoccurrence.Hence,totheextentofrevealingthebackgroundofthesetypesof
eventsItriedtoanswerthefollowingquestions:Howthebiddingprocessisbuilt?
Whatarethemaintrialsencountered?Howhostcitiesandcountriesbehavewhen
theycompetetohostamega-event?Whatarethepositiveandnegativeoutcomes?
Toanswertheaboveinquiries,Ireferredtoseveralpaperswrotebydifferentauthors
whoexperiencedandmanagedprojectsofsuchimportance.WhatIdiscoveredisthat
therearemanystepstotakeintoconsiderationwhentalkingaboutbiddingandmega
projects.Thereareprocessestakingseveralyearsbeforebeingapprovedandthen
implemented,andespeciallyalotofcoststobecoveredthatveryoftenare
transformedinliabilitiesforthehostcities.Suchacostly,complexandhighprofile
activityashostingtheOlympicGamesinvolvesdifferentinterestsfluctuatingfromthe
commercial,withthepurposeofmaximizingprofit,tothegovernmental,withthe
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objectivesforpolitical,economicandsocialbenefits.Settlementsforthehostcities,
derivingfromstagingtheGamescanbeenormousandvarious.Forexample,theycan
recommendeconomicactivityasaresultofthejobsmadeinsociallyrelatedsectors.
Thecreationofsportsamenitiescanalsoplayaroleintheprogramsofurbanrenewal
byintroducingnewsportingandrecreationalfacilitiesintopreviouslyunder-provided
spaces.Onalargerscale,organizationsfortheeventcanalsoofferameansof
justifyingnewinvestmentintransportandinprojectstoenhancethecity’sscenery
andestheticalpresence.Furthermore,Ihaveseenthatthefundamentalqualitiesof
mega-eventshavebeenclassifiedastheunitofimpact,themanagerialcomplexity,
andcommitmentofvariousrepresentativesandscaleofthelength.Duetotherising
extent,theperformanceoftheOlympicsnowincludesconsiderableinvestmentin
sportingcapacities,addingalsotheimprovementorconstructionofother
infrastructureandservices,suchashousing,transportationandcommunications.
Recentmega-eventshasshownhowtheoutcomes,positiveornegative,affected
results.Increasedcityawareness,economicdevelopment,creationofnewjob’s
positionsandurbanreinforcementhavebeenseenalongwithhighinflation,high-
pricedhousingandevencitydenigration.However,ItisarguedthattheIOC,jointly
withlocalOlympicmanagersandpublicrelationsspecialists,haslargelysucceededin
maintainingtheimpressionthat,whilebadeffectsaswellaspressuresmaymanifest
themselvesinmisconductsorobstructions,thesportingworldisunequivocally
supportiveoftheOlympicmission.Hence,notwithstandingthegeneraldisapprovals
surroundingtheinstitutionoftheOlympicGames,whichmainlyfacethecorrelation
betweentheconceptsofOlympicsandthecurrentnatureoftheevent,theGames
continuouslygrowinscaleandimportance.ThecurrentOlympicsshowthatthe
economicbenefitsaretheprimaryreasonforalltheinterestsinvolvedinhostingthe
Games,beitthelocaladministration,whichpursuescitydevelopmentoftheregion
throughinfrastructuremadeforstagingtheevent,ortheorganizationthatchooseto
becomesponsorsoftheeventtoattractadvertising.Takingintoconsiderationthe
candidatureofRomefortheOlympics2024,thedecisionoftheMajorisquestionable,
sincethecandidaturecouldhaverepresentedanoccasionofredemptionforthe
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eternalcity.Itisconsideredoneofthemostbeautifulcitiesintheglobeandthe
chancetohostagain,afterseveralyears,theGamesshouldbeconsideredanasset
andawaytoimprovesomeofthecity’sareathatotherwisewouldbeunused.It
wouldalsohaverepresentedavalidcircumstancetoattiremoretouristsandorganize
moreeventsboundedtosportsorotherculturalactivitieswithaviewofthefuture
Games.
Asaresult,whilebiddersfightforthegloryofwinningthestagingofamega-event,the
wantedfiscal,economic,social,politicalandculturaloutcomesareprojectedto
supporttheiractions.Inconclusion,throughthiswork,havingseenthateverything
thatshinesisnotalwaysgold,ispossibletostatethatevenifisdifficulttomanageall
theaspectsofpreparingOlympicsandmegaeventsingeneral,organizingcommittees
shouldarrangeaspecifiedprogramtofolloworatleastimposestrictpointsinorderto
allowcitiestobeeligible,respectingdeadline,costsandothernon-directlyrelated
costssuchastheOlympicAgenda2020istryingtodoing.But,basedonmyresearch
themostimportantaspectstotakeintoaccountshouldbe:
• Assuringthattheinfrastructuresbuiltarenotanymoreleftas“ghostsamenities”
becausetheywouldrepresentjustawasteofmoney,paidbycitizensorsponsoredby
theoneswhokindlydonatesittothehostcity.
• Super-visioningtheliquidity’sflows.
Theorganizingcommitteeshouldensurethatnoonespeculates,earningmoney,on
thesetypesofeventsthatshouldrepresentanoccasiontounifypopulation,cities,and
nationsintherepresentationofoneofthemostspectacularworldwideevents.