Project performance - some thoughts and reflections

Project PerformanceProject Performance
Project Performance – SomeProject Performance – Some
Thoughts & ReflectionsThoughts & Reflections

Mike BrowneMike Browne
BSc (Hons), MSc, ADip MC, FAPM, FCIOB,BSc (Hons), MSc, ADip MC, FAPM, FCIOB,
HonFAPMHonFAPM

What do all these Projects have in commonWhat do all these Projects have in common
??????????

• The Scottish Parliament BuildingThe Scottish Parliament Building
• The Wembley StadiumThe Wembley Stadium
• The Millennium DomeThe Millennium Dome
• The Channel TunnelThe Channel Tunnel
• The Jubilee LineThe Jubilee Line
• The Sydney Opera HouseThe Sydney Opera House
ConstructionConstruction

Benefit Claimants Swipe Card System (£1 B)Benefit Claimants Swipe Card System (£1 B)
Libra Magistrates Courts SystemLibra Magistrates Courts System
Child Support Agency SystemChild Support Agency System
Canada's Gun Registry SystemCanada's Gun Registry System
Information TechnologyInformation Technology

UK Polaris : Chevaline MissileUK Polaris : Chevaline Missile
Nimrod AircraftNimrod Aircraft
The Eurofighter ProgrammeThe Eurofighter Programme
Type 45 DestroyerType 45 Destroyer
Seasprite Helicopter programme (Australian Navy)Seasprite Helicopter programme (Australian Navy)
The NASA – Space Station (USA)The NASA – Space Station (USA)
DefenceDefence

Organisational ChangeOrganisational Change
The NHS Computer SystemThe NHS Computer System
E-Government - transformationE-Government - transformation
Scottish Enterprise Agency - ReformScottish Enterprise Agency - Reform
The National Identity SchemeThe National Identity Scheme

What do all these ProjectsWhat do all these Projects
Construction & Non - ConstructionConstruction & Non - Construction
have in common?have in common?

They are perceived by many asThey are perceived by many as
FAILURESFAILURES !!!!!!!!!!!!!!

Of courseOf course PROJECT FAILUREPROJECT FAILURE is in the eyeis in the eye
of the stakeholder !of the stakeholder !
And it may change over time !!!And it may change over time !!!

What of Future NI Projects ?What of Future NI Projects ?
Desertcreat CollegeDesertcreat College
Lisanelly Shared Education CampusLisanelly Shared Education Campus
DOJ Change ProgrammeDOJ Change Programme
Waste Management ProgrammeWaste Management Programme
Flood Risk ManagementFlood Risk Management
Energy related projectsEnergy related projects

The Future – NI PLC :The Future – NI PLC :
One of the largest Public Sector reformOne of the largest Public Sector reform
Programmes in Western EuropeProgrammes in Western Europe
N.I. Civil Service Reform
Review of Public Administration
Wider Public Sector Reform
Welfare Reform

Construction & Infrastructure InvestmentConstruction & Infrastructure Investment
Programme ( approx £ 1.3 Billion p.a.)Programme ( approx £ 1.3 Billion p.a.)
• Transport : Road & RailTransport : Road & Rail
• Health & Social ServicesHealth & Social Services
• Schools / Further EducationSchools / Further Education
• Water & WasteWater & Waste
• Urban RegenerationUrban Regeneration
• Social HousingSocial Housing
The Future – NI PLC :The Future – NI PLC :

Of course notOf course not ALLALL projects are doomed toprojects are doomed to
failure but why is it that it seems to happen tofailure but why is it that it seems to happen to
our most prestigious and important ones ?our most prestigious and important ones ?
The causes ofThe causes of PROJECT FAILUREPROJECT FAILURE are manyare many
and varied.and varied.

Northern Ireland currently hasNorthern Ireland currently has
significant programme and projectsignificant programme and project
challenges.challenges.
It is our collective interest to avoidIt is our collective interest to avoid
failure by promoting success andfailure by promoting success and
delivering excellent performance.delivering excellent performance.
Consider ………….Consider ………….

History also shows us that it isHistory also shows us that it is easiereasier forfor
projects toprojects to failfail than to be successful !than to be successful !
WhyWhy ? –? – Mostly because they haveMostly because they have
Complex Interdependencies !Complex Interdependencies !
..

Whilst the causes of project failure areWhilst the causes of project failure are
complex what is clear is that without thecomplex what is clear is that without the
CLIENTCLIENT acting / behaving properly andacting / behaving properly and
knowing how they canknowing how they can CONTRIBUTECONTRIBUTE to projectto project
performance then success is unlikely.performance then success is unlikely.

Some Thoughts & Reflections onSome Thoughts & Reflections on
Client Contribution to success!Client Contribution to success!
Let us consider someLet us consider some
Client IllusionsClient Illusions !!!!!!

Assumed by the client or proffered byAssumed by the client or proffered by
internal / external advisors and / or theinternal / external advisors and / or the
supply chain.supply chain.
Observations made from investigating manyObservations made from investigating many
international projectsinternational projects
In no specific order !In no specific order !
Construction Client IllusionsConstruction Client Illusions

The Client OrganisationThe Client Organisation
Senior management value and fully appreciate theSenior management value and fully appreciate the
benefits of effective and efficient project deliverybenefits of effective and efficient project delivery
and give due leadership and direction.and give due leadership and direction.
The delivery of a major construction capital projectThe delivery of a major construction capital project
will mean little disruption to business as usual forwill mean little disruption to business as usual for
the client.the client.

The client structure does not have to be altered toThe client structure does not have to be altered to
accommodate project delivery.accommodate project delivery.
We have an organisation culture that promotesWe have an organisation culture that promotes
and delivers successful projects.and delivers successful projects.
A centrally mandated and compliance culture isA centrally mandated and compliance culture is
sufficient to promote project success.sufficient to promote project success.

Their ancillary and support departments, systemsTheir ancillary and support departments, systems
and procedures are aligned with project delivery.and procedures are aligned with project delivery.
Their people (employees) can fit this into theirTheir people (employees) can fit this into their
normal work pattern.normal work pattern.
Their people are competent to lead and manageTheir people are competent to lead and manage
ALLALL project types.project types.
Their people are adequately educated and trainedTheir people are adequately educated and trained
for the job in hand.for the job in hand.

Their people with high levels of projectTheir people with high levels of project
management competencies will always be availablemanagement competencies will always be available
for future projects within the ‘department’.for future projects within the ‘department’.
Major, significant or high-risk projects will get theMajor, significant or high-risk projects will get the
attention they deserve.attention they deserve.
Effective project professionals (leaders andEffective project professionals (leaders and
managers) are sufficiently recognised.managers) are sufficiently recognised.
Project delivery is the prime focus of the client andProject delivery is the prime focus of the client and
its employees.its employees.

All initiatives are appraised thoroughly andAll initiatives are appraised thoroughly and
properly scrutinised before they appear asproperly scrutinised before they appear as
projects.projects.
All projects are properly launched and initiated.All projects are properly launched and initiated.
We do not need external project professionalsWe do not need external project professionals
(experts) to lead and manage a significant mission(experts) to lead and manage a significant mission
critical project.critical project.

The Construction ProjectThe Construction Project
Clients know what they want before the projectClients know what they want before the project
starts.starts.
Clients know when the project is a success.Clients know when the project is a success.
We can easily hit the entire project KPI s !We can easily hit the entire project KPI s !
They will get unbiased advice.They will get unbiased advice.
Only viable projects get initiated and launched.Only viable projects get initiated and launched.

The ‘full’ project business case (FBC) is factual.The ‘full’ project business case (FBC) is factual.
‘‘Optimism bias’ doesn’t exist in my appraisals.Optimism bias’ doesn’t exist in my appraisals.
Pushing the risk down the supply chain will notPushing the risk down the supply chain will not
cost us!cost us!
Projects do not go ‘off track’ after this stage.Projects do not go ‘off track’ after this stage.

Adhering to the procurement legislation alone willAdhering to the procurement legislation alone will
deliver high levels of project performance.deliver high levels of project performance.
Adhering to the procurement legislation willAdhering to the procurement legislation will
naturally get us the best project team.naturally get us the best project team.
Project professionals and advisors do not haveProject professionals and advisors do not have
preferred procurement routes.preferred procurement routes.
A ‘One Size’ fits all procurement route alwaysA ‘One Size’ fits all procurement route always
works well.works well.

The Project TeamThe Project Team
Within the supply chain the project manager thatWithin the supply chain the project manager that
has other duties e.g. design, cost surveying,has other duties e.g. design, cost surveying,
construction etc willconstruction etc will alwaysalways act for and on behalfact for and on behalf
of the client’s best interests.of the client’s best interests.
Most projects do not require a single point ofMost projects do not require a single point of
management – the project manager!management – the project manager!
The project manager is in control.The project manager is in control.

Design & Build procurement eradicates the riftDesign & Build procurement eradicates the rift
between so called ‘professionalism’ (consultants)between so called ‘professionalism’ (consultants)
and ‘commercialism’ (contractors).and ‘commercialism’ (contractors).
The design can be frozen early in the projectThe design can be frozen early in the project
cycle.cycle.
The execution / construction part is easy.The execution / construction part is easy.
The form of contract will protect the client even ifThe form of contract will protect the client even if
they dothey do NOTNOT do what they are supposed to do.do what they are supposed to do.

The supply chain multidimensional objectives areThe supply chain multidimensional objectives are
the same as ours.the same as ours.
The supply chain will always air their mistakes toThe supply chain will always air their mistakes to
the client and not ask the client to absorb thethe client and not ask the client to absorb the
consequences.consequences.
We have achieved a positive culture of partneringWe have achieved a positive culture of partnering
and collaborative working.and collaborative working.

IIf we drive down the profit for the supply chainf we drive down the profit for the supply chain
beyond a critical limit we can still get projectbeyond a critical limit we can still get project
harmony and collaborative working.harmony and collaborative working.
If a significant supply chain partner goes out ofIf a significant supply chain partner goes out of
business it will not disrupt project progress orbusiness it will not disrupt project progress or
increase costs.increase costs.

Project progress reports and reviews always tellProject progress reports and reviews always tell
the truth.the truth.
The production of progress reports is sufficient toThe production of progress reports is sufficient to
correct any problems.correct any problems.
The existence of good governance, approvals andThe existence of good governance, approvals and
assurance systems is sufficient to correct anyassurance systems is sufficient to correct any
problems.problems.

There will be no reluctance to escalate intractableThere will be no reluctance to escalate intractable
problems to a higher authority.problems to a higher authority.
Non – viable projects will be terminated in goodNon – viable projects will be terminated in good
time!time!
We always capture key lessons learnt and alwaysWe always capture key lessons learnt and always
use them again for future projects.use them again for future projects.

And so it goes on ……and on …And so it goes on ……and on …
BUT …. what can be done about it ??????BUT …. what can be done about it ??????

Syndicated SessionsSyndicated Sessions
Focus: Improving NIPLC via the Public Sector
Client through seizing opportunities and
implementing best practice.
(Mixed sector tables with appointed facilitator)
Construction Client Best PracticeConstruction Client Best Practice

Part One
HowHow should the Public Sector Client overcomeovercome the
constraints / barriers / illusions identified earlier?
The Construction IndustryIndustry
The ClientClient Organisation
Project DeliveryDelivery
The Project TeamProject Team / Organisation
Key Action Points

Part Two
How can IndustryIndustry help the ClientClient with
this journey?
Key Action Points

The
Project
Organisation
The
Project
The Environment
Society
Government
The Construction Indust
THE PROJECT LANDSCAPE
Client
Project
Management

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