Mega project not mega problems session 1
Download as PPTX, PDF3 likes1,057 views
The document discusses the challenges and strategies associated with managing megaprojects, emphasizing the need for a transformation in project management approaches due to the unique scale and complexity of these projects. It outlines key advice such as strengthening foundations, adopting new governance structures, focusing on flow management, and recognizing the necessity for collaborative leadership. Critical factors for successful megaproject execution include thorough preparation, understanding risks, and utilizing modern tools and technologies for better project oversight.
Mega project not mega problems session 1
- 1. Mega Projects not Mega Problems With
- 2. Intro The rise of the Gigaproject Customer success –Parsons Aconex demo Q&A Agenda Janet Poses Bob Prieto Hans Hoppe David Shearon
- 3. Bob Prieto Chairman & CEO - Strategic Program Management Author – The GIGA Factor Program Veteran executive of Fluor and Parsons Brinckerhoff rpstrategic@Comcast.net Strategic Program Management LLC
- 4. 2/3 FAIL
- 5. WHY? Recovering to the Baseline Corrections may act to increase inefficiency of execution as resources are “jerked” from one task to another
- 6. PMTHEORY MUST CHANGE Management endeavors to introduce regularity in a world that will never allow that to happen. Fayol’s plan, organize, direct, coordinate, and control are now expanded to include confirming, monitoring, engaging, influencing, and evolving. Project management must create context, capacities, and capabilities. “It’s not about perfecting an imperfect model, it is about creating a new one.”
- 7. EXTENDED FOCUS OF LARGE COMPLEX PROJECTS Classical Focus Extended Focus Project readiness Owner readiness Output focus Emergent outcomes (Multi-finality) Tasks and transformative flows Flows including emergent influencing and induced flows Stakeholder management Stakeholder engagement (partners in success) Organize, direct, coordinate, and control Confirm, monitor, engage, influence, evolve
- 8. IMPLICATIONS OF SCALE & COMPLEXITY In a Nutshell • Expanded/Strengthened Foundations • Transformational Process (Traditional)View Not Enough • Focus on Flows • Semi-Permeable Boundary Simple Risk Relationships Complex Risk Relationships
- 9. STRENGTHENED FOUNDATIONS Owner’s readiness Probability of the Improbable Normal Cauchy 5 sigma event 1 in 3.5 million 1 in 16 30 sigma event 1 in 2.0 x 10 197 1 in 94
- 10. MEGAPROJECTS DO NOT FOLLOW CLASSICALTRANSFORMATION
- 11. MEGAPROJECTS REQUIRE CHANGED LEADERSHIP BEHAVIORS Traditional Leadership Behaviors New Leadership Behaviors Individual leadership vs. Group Cross Project Leadership Control and order vs. Motivation and movement Scientific management vs. Transformative leadership Outputs focus vs. Shared outcomes focus Assignment and directive vs. Agreement and acceptance of goals Hierarchical and siloed vs. Project-wide flat communication and information structures Acceptance of normative vs. Questioning (assumption, process, outputs) Adversarial or transactional approach vs. Collaboration and information sharing with stakeholders Management of tasks vs. Management of flows Centralized decision making vs. Engaged and decentralized decision making
- 12. MEGAPROJECT CHALLENGES Baselines are not accurate Preliminary work not complete; risks not understood or provided for Time not valued $$$ not understood
- 13. MEGAPROJECT CHALLENGES CONTINUED Basis of design too narrow Weak change management processes Project management theory does not serve Megaprojects Inadequate owner experience/capabilities Frameworks for life cycle analysis are inadequate
- 14. MEGAPROJECT ADVICE (1) – STRENGTHEN FOUNDATIONS Strategic Business Outcomes are #1 reason projects fail Owner’s organizations are not ready Baseline schedules and estimate are optimistic Scope baselines must be “fit for purpose” and fixed Low frequency, high impact risks are prematurely screened out
- 15. MEGAPROJECT ADVICE (1) – STRENGTHEN FOUNDATIONS (CONTINUED) Track assumptions – they migrate Expand risk focus Recognize risk profiles change over time
- 16. MEGAPROJECT ADVICE (2) USE NEW GOVERNANCE STRUCTURES Top level RACI at outset of program Continuing focus on program and organizational alignment Megaproject Dashboards Will NeedToTrack Outcomes Oriented Parameters
- 17. MEGAPROJECT ADVICE (2) USE NEW GOVERNANCE STRUCTURES (CONTINUED) Formal readiness assessments Performance based contracting, compensation and management Recognition of organizational change management role Programs consist of “beginnings, middles and ends”
- 18. MEGAPROJECT ADVICE (3) FOCUS ON FLOWS Manage the arrows not just the tasks Manage the “white space” Ensure packaging and phasing enhances project schedule Create supply chain opportunities through packaging Drive program logistics plan Project management must strengthen its focus on flow management
- 19. MEGAPROJECT ADVICE (4) RECOGNIZE MEGAPROJECT IS NOT BOUNDED We Need to Improve Performance Assessment Weaknesses 1.We do not “see” leading indicators well (They get lost in the volumes of data) 2.We do not see the complexity of challenges embedded in the project plan Opportunity – Big Analytics (We already have Big Data, now we need to be able to use it)
- 20. NEW PARADIGM FOR PROJECT CONTROL •Attention to flows arising from outside the project •Increased use of big analytics not only on project performance data but also on a myriad of external data sources. •Project controls must be outward and forward looking
- 21. CONCLUSION - MEGATHOUGHTS 1. Expand and Strengthen Foundations 2. Transformational ProcessView Not Enough 3. Focus on Flows 4. Plan for Semi-Permeable Boundary 5. Stakeholder engagement is essential
- 22. Hans Hoppe Principal Program Controls Manager Parsons “Parsons is committed to the highest standards of integrity in everything we do and to transparency in all of our processes...”
- 23. 13,000+ employees - 70 years of experience Project Roles: – Program Management Consultant (PMC) – Designer – Program Management / Construction Management (PMCM) – Construction Manager (CM) – APD – Design-Build (DB) – Public Private Partnership (PPP) Industries: – Infrastructure: Aviation, Rail, Transportation, Bridge & Tunnel – Industrial: Water/Wastewater, Environmental, Telecom, O&G/Energy – U.S. Federal: Environmental, Infrastructure, Security, Defense “Integrity. Ethics. Innovation. Parsons named as a World’s Most Ethical Company for Eighth Year in a Row.”
- 24. 3 points of potential failure to watch for 1. Project start without the necessary scope, roles and systems in place 2. Lack of a collaborative mindset across the shared leadership team 3. Contracts terms and language which do not support the overall goal of project success
- 25. Keys to mega project success 1. Take the time to set up and kick off the project correctly 2. Identify key challenges/risks 3. Implement proven structure and strategies 4. Use appropriate tools and systems that can accommodate your project processes and needs 5. Use modern technology to manage volume and provide intelligence to data
- 26. Benefits of anticipating key challenges / risks • Eliminate potential Error & Omissions (E&O) claims • Design Consultant on a highly technical / complex rail project • Many owner driven changes during design • Virtually eliminated the chance of E&O claims • Implementing requirements traceability tool with robust change management processes • Expedite change management processes • Mega aviation program with many Contractors • Forecasted the need for comprehensive document/information management • Able to invalidate Contractor’s claim within 48 hours
- 27. Cross organizational leadership • Challenges of shared responsibility and risk • Importance of leading by example to set the culture • New tools needed to manage this type of structure • project tools not company tools Evolution from cross organizational collaboration to cross organizational leadership
- 28. Cross organizational leadership example • Project: Large aviation terminal expansion • Challenges: Stakeholder management rather than engagement • Cross organizational leadership team • Mix of client and PM consulting firms to form an Enterprise Program Management (EPM) Team • Set up for success • Contracting style and language • Accountability • Project administration • Process management
- 29. Establishing Enterprise Governance Many Disparate Projects versus a Single Integrated Program Common processes and cadence • Across organizations • Across disciplines • Across contracts
- 30. What to look for in project-wide systems and tools • Security (neutrality) • Visibility / Transparency • Configurability • Insights (forward looking) • Proven Client Contractor PM Subcontractor
- 31. Results on Interstate 405 • Improved submittal process reduces errors, rework and claims, helping reduce contingency by US$1.375M • 33% reduction on technical documents review cycles. With 35 reviewers, this is an estimated savings of $5.5M over the project life. • Automated utility tracking to reallocate three full time engineering resources. “Aconex enabled project team members to manage each of their specific processes using easily configurable workflows.”
- 32. Mega Projects not Mega Problems David Shearon Solutions Consultant Aconex
- 33. 33 Time Lapse Video of Denver International Airport
- 34. Field Inspections Connecting teams project-wide OperateConstructDesignBidPlan Document Control RFIs & Change Orders Bidding & Tenders Workflows & Approvals BIM Collaboration Submittals Handover to Operations Cost Management Dashboards & Reporting In projects executed on the platform $1+ trillion Documents managed with complete auditability 1.2+ billion User organizations Interfacing efficiently 60+ thousand
- 35. Foresight and visibility to prevent surprises Portfolio Project Process Tasks
- 36. Every project member on a connected platform with a single view Enterprise-wide Collaboration Line-of-sight into issues Early Warnings & Predictive Insights Unified project controls for a single view of project performance Integrated Project Controls Connected Cost: Integrated, Configurable, Enterprise-wide A modern collaborative project controls solution integrating cost, schedule, contracts & project information
- 37. Packages: Improved efficiency, productivity and quality • Allow documentation and correspondence to be broken down into discrete controlled sections, or ‘packages.’ • Better manage the many project processes through design, construction and completion of the project. Design Management Configuration Management Work Packaging
- 38. Demo: Mega Projects not Mega Problems • Overview • Insights • Project controls • BIM • Packages • Configurable workflows We presented a live Aconex demo. Please view your demo at aconex.com/Demo.
- 39. Recap: Mega Projects not Mega Problems • Implement tools and processes that support collaborative leadership. • Use flexible systems that support your project team and structure. • Ensure project-wide insights so you get advanced warning into any project impacts.
- 40. Mega Projects not Mega Problems Our thanks to Parsons and Strategic Program Management LLC and to you for attending Learn more at aconex.com/Demo
Editor's Notes
- #25: Stakeholders Owners not ready – scope and funding not adequately defined Organizations not sufficiently aligned Interfaces Between organizations Between disciplines Between office and field Between organization levels
- #39: Overview, then Insights Project Controls BIM Packages Workflows AWS 5 Star demo site has Packages enabled and functioning. Andrew Barron and or Stewart Stead re: Packages. Stewart Stead was very involved in the Beta program. The whole demo is 15. Probably need about 5 minutes minimum. Can use packages to manage design review process or quality sign off. Data sheet and deep dive on Packages from Gordon Sets of docs – grouped together, like a lot of work, QA a lot of correspondence and documentation and be able to manage as a group. Can group without using meta data. If rail project, can keep an older version for a previous project. Team binder has this functionality Beta: Fletcher LendLease Simic Bechtel Tim Crisp left John Holland