1 Uncertainty management in a project owner perspective; case studies from governmental projects in Norway Jan Alexander Langlo 1 ，Agnar Johansen 2 , Nils Olsson 2 (1. Norwegian University of Science and Technology, NO-7491 Trondheim, Norway 2. SINTEF Technology and Society, NO-7465 Trondheim, Norway) Abstract — This paper addresses the need for using a project owner perspective in project uncertainty management processes. Traditionally, literature and actual practice have focused on risk management, i.a. the negative effects of uncertainty. Recent published knowledge reflects a change in attitude, as it acknowledges that uncertainty management both has an upside and a downside. Most literature, however, is using a narrow project perspective when analyzing and describing uncertainty management processes, even when thinking in terms of lifecycle. We claim that projects should also use a project owner perspective and bring the project owner closer into a shared and continuous uncertainty management process. We support this claim by presenting results and viewpoints from current research on recent and ongoing Norwegian projects. Our research is based on case studies and an extensive literature and document study, as well as experience from action research. 1. INTRODUCTION NCERTAINTY MANAGEMENT in project context has traditionally been synonymous with risk. Risk has been treated as a threat that should be prevented, avoided or eluded. Uncertainty is often said to have its root cause in lack of available information, available knowledge or competence (e.g. [1], [2]). Traditionally both project literature and project practice have focused on identifying, evaluating and managing risks (e.g. [3], [4], [5]). Recently there has been a shift towards focusing on how to manage the opportunities facing the project. Ward & Chapman [5] introduce the term uncertainty management to be used in preference to both terms risk management and opportunity management. Supported by Hillson [6], they forward a theory focusing on utilizing opportunities as well as managing risks. Taking advantage of the upside possibilities (or opportunities) have in recent years been a growing issue for practitioners, at least on an executive level. Traditionally, projects are often established in order to manage risks that a line organization is not capable or willing to undertake. Hence, traditional contractual and cooperation models have been based on a principle of transferring risks to other parties [7]. The aim for the research presented in this paper is to establish a better cooperation and integration of uncertainty Manuscript submitted for review February 28, 2007. Final paper submitted May 9, 2007. Corresponding author: Jan Alexander Langlo (1971-), male, PhD student, Department of Production and Quality Engineering, Norwegian University of Science and Technology (NTNU), (phone: +4773590554, fax: +4773551326; e-mail: jan.a.langlo@ntnu.no ). management processes between project owner 1 and project organization. 2. RESEARCH METHODS The research presented in this paper is based on case studies in Norwegian governmental projects. The case studies are of a longitudinal and qualitative nature, as the authors have been involved as researchers and process contributors repeatedly in all the cases, and in large number of other industrial and governmental projects. In addition to practical and professional experience as researchers through action research and involvement in projects, we base our research on an extended literature survey carried out in conjunction with a research project named “Practical project uncertainty management in an owner perspective” [8]. 3. UNCERTAINTY MANAGEMENT IN PROJECTS Christensen and Kreiner [2] defines uncertainty as the difference between currently available information and required information when making a decision. They also provide two strategies for reducing uncertainty; 1) to reduce the necessary information (e.g. by preferring a known solution), and 2) to increase the existing information basis (e.g. by gathering more information, bringing in more competence, or gather more experience by launching a test pilot). Information Information Information Existing Existing Existing Necessary Necessary Necessary Starting point STRATEGY 1 STRATEGY 2 UNCERTAINTY UNCERTAINTY Figure 1 Strategies for reducing uncertainty [2] Simister [4] has developed a generic risk management model based on publications from national standards associations (British Standards Institute, Canada Standards Association, and Standards Australia), professional institutions (Institution of Civil Engineers [9], Japan Project Management Forum [10], Project Management Institute [3], and Association of Project 1 Project owner is in this paper defined as the actor funding the project or the future user of its product(s). U