Tag Archives: Project success

Defining project success – moving beyond benefits realisation!

What you measure is what you are likely to get – so do the so-called measures of project success used by The Standish Group[1] and other really help?  Certainly, the CHAOS definition has been updated from the ‘traditional’ assessment of on-time, on-budget, and on-target (scope) to the ‘modern’ definition of on-time, on-budget, and a satisfactory result[2]; but does this really change anything?

Challenged projects failed to achieve one or more of the measures, failed projects were cancelled before completion or the deliverables were not used.  The problem is do these measures really matter?  The Panama canal expansion was planned to finish in 2014, it was actually finished in 2016; its costs were estimated at US$5.25 billion, it actually cost will be in the range of $6 to $8 billion (depending on the outcome of disputes).  But, the expanded canal is operating close to capacity and has had to restrict bookings since January 2017 to minimise delays and the latest estimates project that fiscal transfers from the Canal to the central government are expected to increase 60% to a total USD 1.6 billion in the current fiscal year.

Given the canal is 100 years old and the new works can be expected to have a similar lifespan what is the real measures of success? In the last 11 years of Panamanian administration, canal revenues grew at a compound rate of five percent annual of the fiscal year 2006 to 2016. Given the core mission of the Panama Canal is to generate income and support the growth of the Panamanian economy is this really a ‘challenged project’?

We have been suggesting for many years real success is a much more complex issue that requires far more sophisticated measures and management than simply focusing on time, cost and scope:

All of these papers lead towards the same conclusion, project success is founded in the creation of deliverables that facilitate the realisation of benefits. But real success needs something more; the benefits have to be seen as valuable by a large proportion of the key stakeholders – success is very much in the ‘eye-of-the-stakeholders’ and if they declare the project a success it is, if they don’t see the outcomes as valuable it is not!

The simple measures used by The Standish Group are only relevant if they advantage or impact the value perceived by the project’s stakeholders.  A number of projects in Queensland leading towards the 2018 Commonwealth Games undoubtedly have time as a key component in providing recognisable value to stakeholders. In many other projects time may be almost irrelevant. Cost may affect profitability (and therefore value in the ‘eyes’ of some stakeholders) but is probably far less important than delivering an output that delights the end users.  Quality and scope should be similarly balanced against the value perceived by stakeholders.

The problem with the proposition that success is based on outcomes of a project being perceived as successful by its stakeholders are many:

  • Different stakeholders will have different views of what is important and ‘valuable’ – these differences may be irreconcilable.
  • Stakeholder’s perceptions change over time – the Sydney Opera House went for a ‘white elephant’ that suffered massive time and cost overruns to a UNESCO World Heritage landmark in record time.
  • It is impossible to know how people will react to the eventual project outcome in advance –success, or failure, emerges after the project has delivered and everyone involved has ‘gone home’.

I don’t have an easy answer to this conundrum – but I do believe two major shifts in project governance and the overall ‘management of project management’ are needed:

  1. The concept of project success is built over time; it starts during the earliest stages of a project when the concepts are being formulated – no one benefits from delivering the wrong project on time and on budget.
  2. Everyone involved in the management of the project including sponsors and portfolio managers through to the project manager need to have in-depth discussions with their stakeholders about what success looks like and what is really important to the client and end users of the deliverable. This discussion needs to be framed by the constraints of cost and time (to the extent they matter) but not limited to predetermined artificial values, to create a prioritised list of success criteria that directly relate to the needs of the stakeholders (which may include time and/or cost, but equally may not); see: Defining Project Success using Project Success Criteria.

Finally, the ‘what’s really valuable’ discussion needs revisiting on a regular basis to keep the work of the project aligned with the evolving needs and perceptions of the stakeholders.  You can call this ‘agility’ if you like (or simply effective stakeholder engagement) but by now we all should recognise that producing ‘failed’ projects helps no one and driving to achieve arbitrary and/or unnecessary time and cost targets is a good way to destroy real value.

Making these shifts presents some real challenges:

  • The challenge the project controls community needs to start looking at is how do we start measuring success? Most organisations can’t even measure benefits!
  • The challenge for people involved in the overall management of projects is primarily answering the question which stakeholders are important in this conversation and how do we engage them?
  • The portfolio management challenge is focused on developing ways to quantify and assess these intangible metrics to select the most valuable projects.
  • The governance challenge is putting rigour around the whole framework to encourage innovation, satisfy stakeholders and maintain overall accountability.

My feeling is that project success is a complex, emergent, characteristic of a project that manifests after the work of the project has been completed.

Your thoughts are welcome.

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[1] See: http://www.standishgroup.com/outline

[2] Presumably this change is to accommodate agile project where the scope is defined through the course of the work.

Good Governance, Good Outcomes!

Good governance is focused on setting the ‘right’ rules and objectives for an organisation, management is about working within those rules to achieve the objectives. Prudent governors also require assurance that the rules are being followed and the objectives achieved (for more see the six functions of governance)

Within this governance framework, getting the ethics and culture of an organisation right comes before anything else – it has far more to do with people, and culture than it does with process and policing! But crafting or changing culture and the resultant behaviours is far from easy and requires a carefully crafted long term strategy supported from the very top of the organisation. The journey is difficult, but achievable, and can pay major dividends to the organisation concerned. One interesting example of this approach in practice is the implementation of effective major project management by the UK government.

The problems with megaprojects[1]

The challenges and issues associated with megaprojects are well known, we recently posted on one aspect of this in the reference case for management reserves. The source materials used in this post clearly show that UK government has been acutely aware of the issues for many years as does any review of the UK National Audit Office’s reports into failed government projects.  At the 2016 PGCS symposium in Canberra, Geraldine Barker, from the UK NAO offered an independent and authoritative overview of the UK perspective and experience from her review of the Major Projects Authority, on the approaches, challenges, and lessons to be learned in improving the performance of major projects at individual and portfolio levels. While there were still major issues, there had also been a number of welcome developments to address the issues including:

  • Improvements to accountability with greater clarity about the roles of senior responsible owners;
  • Investment by the Authority and departments to improve the capability of staff to deliver major projects, with departments reporting to us that they are seeing benefits from these initiatives;
  • Increased assurance and recognition of the role that assurance plays in improving project delivery; and
  • Initiatives to prevent departments from getting locked into solutions too early.

Amyas Morse, head of the National Audit Office, said in a report to the UK Parliament on 6 January 2016, “I acknowledge that a number of positive steps have been taken by the Authority and client departments. At the same time, I am concerned that a third of projects monitored by the Authority are red or amber-red and the overall picture of progress on project performance is opaque. More effort is needed if the success rate of project delivery is to improve[2].

The major challenges identified in that report were to:

  • Prevent departments making firm commitments on cost and timescales for delivery before their plans have been properly tested;
  • Develop an effective mechanism whereby all major projects are prioritised according to strategic importance and capability is deployed to priority areas; and
  • Put in place the systems and data which allow proper performance measurement.

The latest report from the Infrastructure and Projects Authority – IPA (formally the Major Projects Authority) has allowed the UK government to claim an improvement in its delivery of major projects, with the number of those at risk reducing from 44 to 38 in the past year.

The report says that there are 143 major projects on the Government Major Projects Portfolio (GMPP), worth £455.5bn and spread across 17 government departments.

The data shows a steady improvement in the way that government is delivering major projects:

  • More than 60% of projects by whole-life cost are likely to be successfully delivered;
  • Since last year’s report, the number of at risk projects has reduced from 44 to 38, which continues to be an improvement from 48 the previous year;

The data shows signs of steady improvement in the way government is delivering major projects. The question is how was this achieved?

The answer is ‘slowly’ looking from the outside there seem to be three parallel processes working together to change the culture of the UK civil service:

  • The first is making project management ‘attractive’ to senior executives. Since 2000 the government has been working to develop the internal skills needed to allow the deployment of capable ‘Senior Responsible Owners’ (SRO) on all of its major projects including establishing a well-respected course for SROs. The Major Projects Leadership Academy was developed in 2012 (first graduates 2013) and is run in partnership with the Saïd Oxford Business School and Deloitte. The academy builds the skills of senior project leaders across government, making it easier to carry out complex projects effectively. In the future, no one will be able to lead a major government project without completing the academy programme.
  • The second has been making the performance of its major projects public. This includes an on-going challenge to acquire realistic and meaningful data on performance (still a challenge) and is most obvious in the annual report from the Major Projects Authority. Their fifth report is now available for downloading.
  • Finally skills development and robust challenges are put to departments to ensure adequate front end planning is completed before government funds are committed to a project.

This process is not quick and given the risky nature of major projects will never deliver a 100% success rate, but the steady change in attitudes and performance in the UK clearly show that ‘good governance’ backed by a sound multi-faceted strategy focused on the stakeholders engaged in the work will pay dividends. Proponents advocating for this type of improvement have many challenges to deal with, not the least of which is the fact that as data quality improves, the number of problems that will be visible increase – add the glare of publicity and this can be politically embarrassing!  However, as the UK reports show, persistence pays off.

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[1] For a definition of megaprojects see: https://mosaicprojects.wordpress.com/2017/06/09/differentiating-normal-complex-and-megaprojects/

[2] See: https://www.nao.org.uk/report/delivering-major-projects-in-government-a-briefing-for-the-committee-of-public-accounts/

 

Defining Project Success using Project Success Criteria

Everyone likes a successful project but the big question is what makes a project successful??  A good example is the Sydney Opera House; was the Sydney Opera House successful or not?

Was the Sydney Opera House a success or not?

The project ran significantly over budget finished very late and was technically less than perfect; $millions are currently being spent rectifying many of the technical deficiencies in the building. But can anyone say Sydney Opera House is not one of the most recognised and therefore successful buildings in the world?[1]

Success is an ephemeral concept! Different people will have different perspectives and judge the success or failure project differently. Neither a project nor a program manager can control many of the factors that have made the Sydney Opera House worldwide icon but they can address the concept of success with their stakeholders and then work to deliver a successful outcome based on these discussions.

So what is success? There are probably three key elements, but these frequently create a paradox that requires a balanced approach to success. The three fundamental elements are:

  • The Iron Triangle (Scope + Cost + Time)
  • Benefits realised (or maximised)
  • Satisfied stakeholders (but, when??)

One of the key paradox is a myopic focus on the Iron Triangle particularly time and cost can frequently destroy benefits and leave the stakeholders unhappy, but focusing on keeping stakeholders happy can frequently have detrimental effects on the Iron Triangle. There are no easy solutions to this problem[2].

In my view, the successful delivery of a project or program requires:

  • Achieving the overall goal for the project;
  • Delivering its objectives; and
  • Meeting its success criteria.

But, to achieve success you need to define and agree the project goal, the project objectives, and the project success criteria with your key stakeholders with a view to achieving a combination of stakeholder satisfaction and value created. The goal and objectives frame the project’s work and direction. The success criteria frame how the objectives are achieved.

 

The Project Goal

Goals are high-level statements that provide the overall context defining what the project is trying to achieve. One project should have one goal (if there are multiple goals you are most likely looking at a program of work[3])!  For example:  Within 180 days, reduce the pollution in the rainwater runoff from a council tip by 98%.

The goal is a key statement in the Project Charter[4] and if the project is to be successful, all key stakeholders need to agree the goal.  The goal needs to be specific and should define the project in a way that focuses attention on the key outcomes required for overall success from a technical and strategic business perspective[5].

 

Project Objectives

The objectives are lower level statements that describe the specific, tangible products and deliverables that the project will create; each objective (and the overall goal) should be SMART[6]. For the runoff project the objectives may include:

  • Develop wetlands to trap 99.8% of sediment
  • Install channels to collect and direct the runoff
  • Install screens remove floating debris
  • Etc….. There will be a number of objectives……

Each objective requires defining and specifying with clear performance criteria so you know when it has been achieved. This may be done by the client or by the project team during the scope definition process. The performance criteria may be defined by a set of precise specifications that are specific and measurable or may be defined as a performance requirement with either:

  • The external contractor to provide the specific details of how the objective will be achieved, or
  • The internal project team to develop the details in consultation with the client

The defined objectives are the building blocks that facilitate the achievement of the goal and the creation of the benefits the organisation is expecting from the project[7]. The benefits need to be realised to create value.

 

Success criteria

Success criteria are different they measure what’s important to your stakeholders. Consequently, they are the standards by which the project will be judged at the end to decide whether or not it has been successful in the eyes of its stakeholders. As far as possible the stakeholders need to be satisfied; this includes having their expectations fulfilled and in general terms being pleased with both the journey and the outcome (in this respect scope, cost and/or time may be important).

Success criteria can be expressed in many different ways some examples include:

  • Zero accidents / no environmental issues;
  • No ‘bad press’ / good publicity received;
  • Finalist in the project achievement awards;
  • Plus the goal and all of the objectives achieved (yes – you still need to do the work).

For any project, the success criteria should be split between project management success criteria which of related to the professional aspects of running the project; plus project deliverable success criteria which are related to the performance and function of the deliverable.

Documenting the success criteria is important, it means you can get project stakeholders to sign up to them, and having them clearly recorded removes ambiguity about what you are setting out to do. The four basic steps to create useful success criteria are

  1. Document and agree the criteria; each criteria should include:
    1. The name of success criteria,
    2. How it is going to be measured,
    3. How often it is going to be measured, and
    4. Who is responsible for the measurement.
  2. Use continuous measurements where possible. For example, rather than ‘finish the project on time’ measure progress continually ‘no activity completes more than 5 days after its late finish date’.
  3. Baseline today’s performance.
  4. Track and report on your progress.

As with any performance indicators, the art is to select a few key measures that represent the wider picture if there are too many success criteria defined the impact will be severely reduced. For example, the effectiveness of meetings, communication and stakeholder attitude could be measured scientifically using the ‘Index Value’ in the Stakeholder Circle[8] or pragmatically by measuring the number of open issues against a target (eg, no more than 5 high priority open issues).

 

Summary

Goals and objectives are the building blocks required to allow the realisation value from the project’s outputs; they are essential ingredients in a successful project but are insufficient on their own.  The role of success criteria is to direct the way work at the project is accomplished so as to meet stakeholder expectations, and to craft a perception of success in the stakeholder’s minds.

Project success is an amalgam of value created for the organisation and your stakeholders being satisfied with the journey and the outcome.  This concept of success may seem subjective, but it does not have to be. Successful organisations work to take the guesswork out of this process by defining what success looks like and agreeing these definitions with the key stakeholders, so they all know when the project has achieved it.

This means the key to stakeholders perceiving your project as successful lays in understanding the criteria they will measure success by, incorporating those measures into your project success criteria, and then working to achieve the criteria. But even this is not enough, to engage your stakeholders you need to communicate the criteria, communicate your progress and communicate your success at the end. For more on effective communication see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#PPM07

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[1] For more on the success or failure of the Sydney Opera House see Avoiding the Successful Failure!:  http://www.mosaicprojects.com.au/Resources_Papers_046.html

[2] For more on paradox see: https://www.projectmanagement.com/blog-post/30669/The-Problem-With-Paradox

[3] For more on differentiating projects and programs see: http://www.mosaicprojects.com.au/WhitePapers/WP1002_Programs.pdf

[4] For more on the project charter see: http://www.mosaicprojects.com.au/WhitePapers/WP1019_Charter.pdf

[5] For more on project success see: http://www.mosaicprojects.com.au/Mag_Articles/N001_Achieving_Real_Project_Success.pdf

[6] SMART = Specific, Measurable, Attainable, Relevant and Time-framed.

[7] For more on linking objectives and benefits see: http://www.mosaicprojects.com.au/WhitePapers/WP1042_Outputs_Outcomes_Benefits.pdf

[8] The Stakeholder Circle® index value see: http://202.146.213.160/help-files/stakeholder-engagement-profile/#engagement-index

Differentiating normal, complex and megaprojects

The days when projects were simply projects and project success was defined by the ‘iron triangle’ are long gone.  The intention of this post is to try and bring together four aspects of current thinking and their embedded concepts into an overall model of project management in the 21st century.  The starting point is traditional project management as defined in the soon to be published 6th Edition of the PMBOK® Guide; the major change (incorporated in the 6th Ed.) is ‘Agile Project Management’.  The two significant extensions to traditional project management that go beyond the PMBOK® Guide are ‘Complex Project Management’ and ‘Megaproject Management’. The focus of this paper is on the skills and competencies needed by the ‘managers’ of these different classifications of ‘projects’ rather than the scope of the different concepts (more on this later).

As a starting point, there seems to be a generally accepted view that the competencies needed to be a successful project manager underpin all of the other concepts. There are some distinctly different techniques used in Agile, only some of which flow into traditional project management, but in other respects ‘agile’ and ‘good project management’ are very closely aligned.  Managing complexity requires a significant additional set of competencies that build onto the traditional requirements.  Then, whilst many complex projects do not meet the definition of a ‘megaproject’, every megaproject is by definition a complex project with an additional layer of management capabilities needed to deal with its impact on society.  This basic framework is outlined below:

Stakeholders

All forms of project management recognise the importance of the project stakeholders. Projects are done by people for people and the ultimate success or failure of a project is defined by people – all ‘stakeholders’.  My work on the PMBOK® Guide 6th Edition core team was very much focused on enhancing the sections on stakeholder engagement and communication (which is the primary tool for engaging stakeholders). And as the scale of projects increase, the number of stakeholders and the intensity of public focus increases dramatically.

A heuristic suggested by Prof. Bent Flyvbjerg is as a general rule of thumb: ‘megaprojects’ are measured in billions of dollars, ‘major projects’ in hundreds of millions, and ‘projects’ in tens of millions or less. To quote the late Spike Milligan, ‘Money can’t buy you friends but you do get a better class of enemy’ – and while many stakeholders may not be ‘enemies’, the ability of stakeholders to organise around a megaproject tends to be far greater than around a small internal project. Consequently, the focus on stakeholders should increase significantly in excess of the increment in cost as you flow from small to megaprojects.

However, regardless of size, the need to identify, engage, manage, and deliver value to stakeholders, through the realisation of beneficial change, is consistent through all of the concepts discussed below. This and the temporariness of each ‘project organisation (ie, team)’ are the two consistent factors that underpin the concept of project management; and ‘temporariness’ is the key factor that separates projects and programs from other forms of management and ‘business as usual’.

 

Traditional Project Management.

The recognised guide for traditional project management is the PMBOK® Guide augmented to a degree by ISO 21500. The publicly released information on the 6th Edition highlights the need for flexibility in applying its processes, including the requirement to actively consider ‘tailoring processes’ to meet project requirements, and the value agile thinking can bring to the overall management of projects (see below).

The frame of traditional project management starts once the project is defined and finishes once the project has delivered is objectives. While this scope is somewhat limited and there may be a need to expand the scope of project management to include project definition at the ‘front end’, and benefits realisation and value creation after the outputs have been delivered (this will be the subject of another post), the knowledge, skills and competencies required to manage this type of project management are well understood.

Each project has four basic dimensions, size (usually measured in $), technical difficulty, uncertainty and complexity (these are discussed in detail in: Project Size and Categorisation). In the right circumstances, Agile can be an effective approach to resolving uncertainty. However, at an undefined point, the increase in complexity reaches a point where the concept of ‘complex project management’ becomes significant and really large projects are the realm of ‘megaproject management’. But the underpinning capabilities required to manage all of these extensions remains the conventional project management skills.

 

Agile Project Management

Agile has many facets. The concepts contained in the Agile Manifesto basically reflect a shift away for a ridged focus on process towards a focus on people (stakeholders) and adapting to change to achieve a successful outcome.  These concepts are now firmly embedded in the PMBOK® Guide 6th Edition and apply to every project. Where agile projects separate from traditional projects is recognising that in a range of soft projects, including software development, taking an iterative and adaptive approach to understanding the scope can often achieve a better outcome. Understanding what is actually helpful to the client develops based on learned experience from earlier iterations and these needs are incorporated into the next iteration of the development allowing a better outcome to be delivered to the client. This is not significantly different to much older concepts such as ‘rolling wave planning’ and progressive elaboration – there really is little point in making detailed plans for work you don’t know much about. The difference is Agile actively expects the scope to be adapted to the emerging requirements of the client, the other approaches seek to add detail to the plans at an appropriate point in time whilst the overall scope remains fundamentally unchanged.

Agile does not even need a project to be useful. Many of the Agile techniques work in any situation where there is a backlog of work to get through and can be effectively used outside of the concept of a ‘project’, this particularly applies to routine maintenance work of almost any kind.  A discussion on the value of Agile, and its limitations, are contained in our paper Thoughts on Agile.

However, for the purposes of this post, the key aspects Agile brings to the discussion, that are essential for effectively managing most types of project, are contained in the Manifesto – a preference for:

  • Individuals and interactions over processes and tools.
  • Customer collaboration over contract negotiation.
  • Responding to change over following a plan.

The Manifesto recognises there is value in the items on the right, but values the items on the left more.

 

Complex Project Management

Complexity is a facet of every project and program. Complex project management skills become important at the point where complexity becomes a significant inhibitor affecting the delivery of a successful outcome from the project (or program). This point may occur well before ‘complexity’ becomes the defining feature of the project.

Complexity is a very different concept to a complicated project, technically complicated work can be predicted and managed; launching a new communication satellite is ‘rocket science’, but there are highly skilled rocket scientists available that undertake this type of work on a routine basis. As with any traditional project, the costs, resources and time required can be predicted reasonably accurately.

The dominant feature of complexity is the non-predictability of outcomes. Non-linearity, ‘the tipping point’, and emergence describe different ways outcomes from a slightly different starting point can vary significantly compared to previous experience or expectations (for more on the concepts of complexity see: Complexity Theory).  Complexity arises from various forms of complex system, these may be organic (eg, a river’s eco-system), man-made (eg, an overly complicated system-of-systems such as too many interconnected software applications automatically interacting with each other), or interpersonal (eg, the web of relationships within and between a project team and its surrounding stakeholder community).  In all of these situations, the ‘system’ behaves relatively predictably, dealing with the effects of stresses and stimuli up to a point (and normal management approaches work satisfactorily); but after that point adding or changing the situation by a small increment creates completely unexpected consequences.

Interestingly, from the perspective of managing a project, these three areas of complexity are closely interlinked, the complex behaviour of the environment and/or man-made systems-of-systems feeds back into the perceptions of stakeholders and the activity of stakeholders can impact on both the environment, and the way complex systems function. Similarly, dealing with emerging anomalies in the environment or in a complex system needs the active cooperation of at least some of the project’s stakeholders. Consequently, the focus of complex project management is dealing with the consequences of the inherently unpredictable and complex behaviours and attitudes of stakeholders, both within the team and within the surrounding stakeholder community.

Some projects and programs, particularly large ones, are obviously complex from the outset and can be set up to make effective use of the ideas embedded in complex project management. Others may be perceived as non-complex ‘business-as-usual’ and tip into complexity as a result of some unforeseen factor such as a ‘normal accident[1]’ occurring or simply because the perception of ‘straightforward’ was ill-founded. Underestimating complexity is a significant risk.

Where the project is perceived to be complex from the outset, a management team with the competencies required to deal with the nuances of managing a ‘complex project’ can be appointed from day one (and if appropriately skilled people are not available, support and training can be provided to overcome the deficiencies) – this maximises the probability of a successful outcome.  When a project unexpectedly falls into a state of complexity the situation is far more difficult to manage primarily because the people managing the work are unlikely to be skilled in complex project management, will try to use normal management techniques and most organisations lack the resources needed to help rectify the situation – skilled complex project managers are in short supply globally.

One initiative designed to overcome this shortage of ‘complex project managers’ and build an understanding of ‘complex project management’ is the International Centre for Complex Project Management (ICCPM).  ICCPM’s approach to complex project management is to see this capability as an extension of traditional project management (as inferred in the diagram above). The ICCPM view is that while traditional approaches are insufficient to effectively manage a complex project on their own, you cannot manage a complex project without a strong foundation based on these traditional skills and processes. The relationship is described by the ICCPM as:

What changes is in part the way the traditional capabilities such as scheduling and budgeting are used, overlaid with the expectation these artifacts will need to adjust and change as the situation around the project changes, augmented with a range of ‘special attributes’ particular to the process of managing a complex project. These ‘special attributes’ are valuable in the management of any project but become essential in the management of complex projects.  These capabilities and competencies are defined in the ICCPM’s Complex Project Manager Competency Standard available from: https://iccpm.com/.

Complex projects can vary in size from relatively small undertakings involving factors such as updating a complex systems-of-systems, or a high level of political sensitivity, through to the megaprojects discussed below. A complex project may not be a megaproject or even a major project, but every megaproject and many major projects will also be a complex project requiring complex project management capabilities for a successful outcome.

 

Megaproject Management

Megaprojects are defined as temporary endeavours (i.e. projects or programs) characterised by:

  • A large investment commitment;
  • Vast complexity (especially in organizational terms); and
  • A long-lasting impact on the economy (of a country or region), the environment, and society.

They are initiatives that are physical, very expensive, and public. By definition, megaprojects are complex endeavours requiring a high degree of capability in the management of complex projects.  In addition megaprojects typically involve a number of other facets:

  • Megaprojects are by definition a program of work (see: Defining Program Types).
  • Many are implemented under government legislation, requiring skills and knowledge of government processes and the ability to operate within the ambit of ‘government’. This is a very different space in terms of accountability and transparency compared to private enterprise.
  • Most interact with a range of government agencies at all levels of government from local to national. These stakeholders often have a very different set of agendas and success criteria compared to the organisation running the megaproject.
  • The size of a typical megaproject involves large amounts of money and therefore increases the risk of corruption and other malfeasance – governance and controls need to be robust[2] to maintain high ethical standards.
  • The ‘political attractiveness’ of doing a megaproject (eg, hosting the Olympics) distorts decision making; care in the megaproject development process is required to reduce the effect of optimism bias and strategic misrepresentation (see: The reference case for management reserves).
  • Megaprojects are financially fragile[3] and fragility is typically irreversible. Once broken the fragile entity cannot be readily restored to its original function. Financial (or investment) fragility is defined as the vulnerability of a financial investment to becoming non-viable, i.e., losing its ability to create net economic value. For example, the cost risks for big dams are significant; the actual costs more than doubles the original estimate for 2 out of 10 dams; triples for 1 out of every 10 big dams. But managers do not seem to learn; forecasts today are likely to be as wrong as they were between 1934 and 2007.

Recognising the scope and complexity of managing a megaproject and training people appropriately can mitigate the risks, the UK experience around Terminal 5 and Cross Rail (both £4 billion projects) suggest that achieving a good outcome is viable provided the organisation commissioning the megaproject is prepared to invest in its management. It’s probably no coincidence the management of megaprojects and their associated risk has been the focus of the Saïd Business School, University of Oxford for many years.

 

Summary

The competencies needed to manage projects grows in line with the increase in complexity and the increase in size. There are definitely additional elements of competency needed at each step in the framework outlined above.  What is far less clear is how to demarcate between normal, complex and megaprojects! Every project has a degree of complexity and a degree of size.  The values suggested above to separate normal, major and mega projects are arbitrary and there is even less clarity as to the transition between normal and complex projects.

I suspect the domain map demarcating the different disciplines will end up looking something like this but there’s a lot of research needed to define the boundaries and assign values to the axis (especially in terms of measuring the degree of complexity).  Hopefully, this blog will serve to start the discussion.

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[1] Normal accidents are system accidents that are inevitable in extremely complex systems. The three
conditions that make a system likely to be susceptible to Normal Accidents are:
–  The system is complex
–  The system is tightly coupled
–  The system has catastrophic potential
The characteristic of the system leads to multiple failures which interact with each other, despite efforts to avoid them.

[2] For more on governance and ethics see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#OrgGov1

[3] From: Big Is Fragile: An Attempt at Theorizing Scale, in Bent Flyvbjerg, ed., The Oxford Handbook of Megaproject Management (Oxford: Oxford University Press)

Setting up a project controls system for success

A couple of hour’s hard thinking can make the difference between project success and failure!  Far too many projects are simply started without any real thought as to the best strategy for delivery and what control systems are really needed to support the management of that delivery – one size does not ‘fit-all’ and simply repeating past failures creates more failures.  Similarly, far too many control systems are implemented that simply generate useless paperwork (frequently to meet contractual requirements) when what’s needed is effective controls information.

Remembering that all project controls documents have to be used and maintained to be useful; the three key thinking processes needed to help build project success are:

  • First the big question – how are we going to do the work to maximise the opportunity of success and optimise risk??  This is a strategic question and affects procurement as much as anything – off-site assembly needs a very different approach to on-site assembly. This does not need a complicated document but the strategy does need to be agreed; see: www.mosaicprojects.com.au/WhitePapers/WP1038_Strategy.pdf
  • From the strategy, the project management team structure can be designed to best manage the work as it will be accomplished and these people (or at least the key people) can then contribute to the planning process. Pictures are as useful as anything to define the overall flow of the work; see: www.mosaicprojects.com.au/WhitePapers/WP1039_Project_Planning.pdf.
  • Once you know the way the work will be accomplished and the overall flow/sequence of the work you are now in a position to plan the project controls function aiming to apply the minimum amount of ‘controls’ necessary to be effective.  Excessive controls simply waste money and management time. My approach is always to do a bit less then I think may be needed because you can always add some additional features if the need eventuates – it Is nearly impossible to remove controls once they have been implemented.
  • Then you can develop the schedule and other control tools needed for effective management working within the framework outlined above.

This area is what PMI call Schedule strategy and Schedule planning and development. Getting this ‘front-end’ stuff right is the best foundation for a successful completion of a project; this is the reason these elements of project controls have a strong emphasis in the PMI-SP exam.

Conversely, stuffing up the strategy in particular, means the project is set up to fail and implementing control systems that do not support the management structures within the project simply mean the controls people are wasting their time and the time of everyone they engage with.

However, creating a project that is based on a sound strategy supported by a useful project controls system will require some cultural changes:

  • The project manager and project executive will need to take some time to look at strategic options and develop an effective delivery strategy.
  • The organisation and client will need to allow the project controls professionals to work through the challenges of developing a ‘light-but-effective’ controls system and then review/approve the system – this is more difficult than simply requiring every project to comply with some bloated standard controls process that no one uses (except for claims) but should deliver massive benefits.
  • The organisation will need skilled project controls professionals……….
  • And the project management team will need to be willing to work with and use the project controls.

The problem is easy to outline – fixing it to enhance the project success rate is a major challenge.

Some ideas for making project management effective and efficient in 2016

SuccessIt’s a New Year and by now most of us will have failed to keep our first set of New Year resolutions! But it’s not too late to re-focus on doing our projects better (particularly in my part of the world where summer holidays are coming to an end and business life is starting to pick up). Nothing in the list below is new or revolutionary; they are just good practices that help make projects successful.

Most projects that fail are set up to fail by the organization and senior management (see:  Project or Management Failures?).  80% of projects that fail don’t have a committed and trained project sponsor. An effective project sponsor will:

  1. Give clear project objectives.
  2. Help craft a well‐defined project scope.
  3. Remove obstacles that affect project success.
  4. Mediate disagreements with other senior stakeholders.
  5. Support the project manager.

The role of the project or program sponsor is outlined in: WP1031 Project & Program Sponsorship.

Customers or end‐users are critically important to the success of ‘their project’. Unfortunately there is an extreme shortage of ‘intelligent customers’.  A ‘good customer’ will:

  1. Help refine the project scope – no one gets it 100% correct first time.
  2. Convey requirements fully and clearly
    (see: WP 1071 Defining Requirements).
  3. Avoid changing their minds frequently.
  4. Adhere to the change management process.

Every project team needs expertise – this is frequently provided by external experts. Subject‐matter experts should:

  1. Highlight common pitfalls.
  2. Help rather than hinder decision making.

The work of the project is done by ‘the team’. A committed and motivated project team will:

  1. Buy into the project’s objectives.
  2. Identify all of the required tasks and ensure the schedule is complete and accurate.
  3. Provide accurate estimates.
  4. Report progress and issues truthfully.
  5. Deliver their commitments.
  6. Focus on achieving the intended benefits
    (see: WP 1023 Benefits and Value).

Finally, the project manager

  1. Recognises that there is no “I” in project and works with the team and stakeholder community to create a successful outcome
  2. Resolves issues and risks that may arise from the 18 items above quickly, efficiently and effectively.

Making Projects WorkAlmost all of the items listed require action by people other than the project manager – this highlights the fact that projects are done by people for people and the key skill required by every project manager is the ability to influence, motivate and lead stakeholders both in the project team and in the wider stakeholder community.

For more on Making Projects Work see: http://www.mosaicprojects.com.au/Book_Sales.html#MPW

How to succeed as a PM in 2016

On-the-busProjects are done by people for people and through the medium of social media, people power is growing.  Successful project managers know this and use it to their advantage; they create a team culture focused on working with other stakeholders to create success.

Project managers know when they get this right because their project team will challenge, follow and support them, and each other, in order to get the job done. Not only that, but word spreads and other people inside the organisation will want to join the team or be associated with its success. When a PM achieves this, they know they have created something special and paradoxically are under less pressure, can get a good night’s sleep, and as a consequence are fully refreshed each day to keep building the success. This is good for the people and great for the organisation!!

Developing the skills and personal characteristics needed to develop and lead a committed team needs more then technical training. Experience, reflection, coaching and mentoring all help the project manager grow and develop (and it’s a process that never stops). Five signs that they are on the path to becoming a great team leader are:

  1. They’re well liked. Great leaders make people feel good about themselves; they speak to people in a way that they like to be spoken to, are clear about what needs to be achieved[1], and are also interested in their lives outside work and display a little vulnerability every now and again to demonstrate that they are human. They’ll always start the day with a ‘good morning’, the evening with a ‘good night’ and every question or interaction will be met with courtesy. When the team picks up on this the project area will be filled with good humour and great productivity.
  2. They put effort into building and maintaining teams. Designing great teams takes lots of thought and time – you need the right people ‘on the bus[2]’ and you need to get the wrong people ‘off the bus’. A great project manager doesn’t accept the people who are ‘free’ or ‘on the bench’ unless they’re the right people and they’ll negotiate intensely for the people that they really need, going to great lengths to recruit people into the vision that they have. Once the team is in place, they never stop leading it, building it, encouraging it, performance managing it and celebrating it.
  3. They involve everyone in planning. Or at least everyone that matters! The PM identifies the team members and other stakeholders that need to be involved; creates a productive, enjoyable environment, and leads the process. They want to ensure that they get the most out of the time and at the end have a plan that the team has built and believe in.
  4. They take the blame and share the credit. Great project managers are like umbrellas. When the criticism is pouring down they ensure that the team is protected from it. They then ensure that the message passed down is presented as an opportunity to improve not a problem to be fixed. Similarly, when the sun is out and the praise is beaming down, they ensure that the people who do the real work bask in it and are rewarded for it. When they talk about how successful a project has been, they talk about the strengths of the team and the qualities they have shown, never about themselves.
  5. They manage up well. Stakeholder engagement, particularly senior stakeholder engagement is the key to project success[3]. Great project mangers know they need senior executive support to help clear roadblocks and deliver resources and know how to tap into the organisation’s powerlines for the support they need.

Great project mangers are also good technical managers; they have an adequate understand the technology of the project and they know how the organisation’s management systems and methodologies work. But they also know they can delegate much of this aspect of their work to technologists and administrative experts within their team. And if the team is fully committed to achieving project success, these experts will probably do a better job than the project manager anyway.

Projects are done by people for people and the great project managers know how to lead and motivate[4] ‘their people’ to create a successful team that in turn will work with their stakeholders to create a successful project outcome.
[1] For more on delegation see:  http://www.mosaicprojects.com.au/WhitePapers/WP1091_Delegation.pdf

[2] In the classic book Good to Great, Jim Collins says, “…to build a successful organization and team you must get the right people on the bus.”

[3] This is the focus of my book Advising Upwards: A Framework for Understanding and Engaging Senior Management Stakeholders, see http://www.mosaicprojects.com.au/Book_Sales.html#Adv_Up

[4] For more on leadership see: http://www.mosaicprojects.com.au/WhitePapers/WP1014_Leadership.pdf