Project Management

The RenĂŠ Carayol column

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Keep away from locked-in syndrome to save time and money | Page 2

April 2013 | business-reporter.co.uk

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Spotlight on agile project management and the secrets behind project success | Pages 14 – 15

PROJECT MANAGEMENT

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Seb Coe on how to plan an Olympics Alison Kervin reports from Rio de Janeiro | Pages 8-9

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Project management

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Opening shots René Carayol As the discipline of project management matures and the tool kits available become ever more sophisticated and powered by leading-edge software tools, one question stands out: why do so many high-profile projects keep failing?

It might just be down to an excessive dose of hubris, sometimes called “lock-in”. The prize of winning the bid to deliver a real “trophy” project can become so overwhelming that reality can be suspended.

The redevelopment of Wembley Stadium was a trophy project. After several rounds of bidding, Ken Bates – The Wembley National Stadium chairman – continued to encourage cheaper and cheaper bids, culminating in Australian firm Multiplex being awarded it with a bid of £347m.

As we now know, the stadium eventually came in late and over budget at some £750m.

This is one example of how trophy projects can lead to even the most pragmatic and careful businesses getting all too macho about the “win”, and the associated kudos and glory, and ignoring the basic rules of project management.

How did the project managers supporting the bid feel when they were obviously overruled by those who just wanted to win – at any cost?

I had the opposite experience when sitting on the board of the Inland Revenue as a non-executive director. As I had served as a CIO previously in my career, I was a lead sponsor for the Aspire project, which at the time was the largest IT outsourcing project in the UK. A strong team of project management technocrats put together the bid document (which ended up being some 2, 000 pages) which left nothing out, but made life for potential bidders near-impossible.

A focus on winning is better than trying to prevent a failure More than 100 potential bidders were waiting for this document but most fell by the wayside when they received the tome of tomes. Most eventual bids received were collaborations or consortiums, which carry their own inherent risk, especially if the members are nominally equals.

The Inland Revenue desperately wanted to ensure that they were being fair and avoid the perils of lock-in. So much so, that they bent over backwards to ensure that the best providers actually responded with a sensible and competitive bid. They even compensated them for the cost of the bid, and ensured that scope creep, inflation and other cost triggers were also covered.

By trying to be fair, the total cost of HM Revenue & Customs’ 10-year Aspire IT outsourcing contract has more than doubled since it was awarded in 2004, and Capgemini’s profits are likely to quadruple, according to a Commons Public Accounts committee report.

I’ll never forget leading the final presentations from the shortlist of six consortiums. We had them all deliver their presentations on the same day, to

some 40 people in a dreary building in Telford. Capgemini were the last to present.

The lead project manager saw that energy levels in the room were at near zero and, attention waning, marched in and turned to me and said: “You really don’t need to see our 60 slides, do you?” I couldn’t help but agree.

He then said: “I’m going to pull out three slides that I believe will answer the questions you have raised in your bid document.” The sense of theatre was palpable, we all sat up, alert again. This was bold, brave and perhaps reckless.

It was brilliance personified. He sparked a powerful conversation and came away as the only presenter that day who we all felt would be credible in the boardroom of the Inland Revenue.

He had obviously focused on winning, while most project managers are fixated on preventing failure as opposed to accommodating success.

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Project management

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If anyone has a plan to steer through hard times, it’s a PM

By Dave Baxter Why enter project management? Circumstances make this an awkward question to answer. As years of belt-tightening vanquish rosier memories of a boom decade, industries are feeling the pinch.

One example, the construction sector, is almost a posterboy for recent decline. The Markit/CIPS UK Construction Purchasing Managers’ Index shows commercial construction output suffered its steepest decrease for three years in February, offsetting a housing boost. Even worse, the sector’s overall contraction was at its sharpest since October 2009.

Work is haphazard and stop-start.

Though, as Crossrail boss Andrew Wolstenholme says, projects such as his provide a stable source of work for now.

Sectors keep shrinking, and project managers face further peril. As security firm G4S learned during the Olympics, making mistakes on a high-profile assignment creates a media firestorm capable of unpicking reputations and share prices.

And, as those behind the HS2 plans will be painfully aware, big projects attract vocal opponents – be it campaigners, residents or politicians.

The UK industry has a bright future, despite this gloom. As Tom Taylor, president of the Association for Project Management, argues, British universities have created a generation ready to enter the trade. He says: “People are being educated in project management as a career of first choice. Most of the people over 35 didn’t go into project management – they arrived by accident.”

He believes sustainability will play a bigger role in the industry, as a generation enamoured with green issues gains a foothold: “There are people over 35 who had never had a day’s training in sustainability at school, but now you can’t go to school without being told about it.”

Improvements are still needed. Bent Flyvbjerg, of Oxford University’s Said Business School, agrees higher education produces a strong pedigree of future project managers – but he says this model fails with large-scale projects. He says: “At the moment people who have cut their teeth on smaller projects come to run big projects, and that can be a recipe for disaster. The difference is like that between driving a car and flying a Boeing 747.”

He believes people need extensive experience before receiving schooling – both practical and academic – in managing larger, more unwieldy projects.

“You can’t train people in their 20s to do this,” he says. “You need somebody who has a lot of experience, and then they need further training.”

Project management could become dominated by a more focused generation of decision-makers.

Above: Bent Flyvbjerg of Said Business School

‘You can’t train people in their 20s to do this’

But this won’t solve all drawbacks. The red tape which, for example, can lead to drawn-out procurement processes for projects, is unlikely to disappear.

Taylor says: “When you try to dismantle it, the system is quite hard to simplify. There is talk of technology speeding things up, but it can create new bureaucracy.”

There is also the inevitability of mishaps and even crises – which must be handled before they get worse.

“When the tsunami is racing across the ocean, that’s a crisis. When it hits the beach, that’s a disaster,” says Taylor.

“It’s a question of making sure all the different projects work together.”

And Flyvbjerg notes that other issues – such as bringing the private and public sector together – can add to the complications around project management.

Project managers face an exasperated economy and some tiresome drawbacks. But with the training available today, many should feel ready for this.

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Project management

Bridge made to be quake-proof

ExpertInsight

If the Izmit Bay Suspension Bridge project shows one thing, it is that architecture goes beyond skyscrapers.

The bridge forms part of a new highway linking the Turkish cities of Izmir and Istanbul – it will cross the Bay of Izmit and have a length of 3.3 km.

The big challenge for the development is the fact it will be built in one of the most seismically active parts of the world, meaning it needs its own anti-earthquake measures.

But plans are in place to make it earthquake-resistant by building in pylons on a concrete foundation resting on a large gravel bed. If an earthquake hits, the pylons will be able to slide on the gravel bed and energy, which could damage the structure, will be dissipated.

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Building will rise from ashes of tragedy as sign of triumph

By Dave Baxter Supermarkets, pubs and tower blocks all have something in common: building or dismantling them causes huge fuss, be it among residents or heritage enthusiasts.

But while building developments can be controversial, iconic structures such as the Eiffel Tower, Rome’s Colosseum and even Sydney Opera House have made their mark on history.

As new projects spring up around the world, the architectural landscape looks likely to become more eye-catching.

Among these is a response to one of the most blood-curdling event of recent American history.

In 2001 the world was shocked when two planes crashed into the twin towers, killing workers inside and bringing the buildings down.

The 9/11 attacks had huge consequences: thousands of people were killed, lower Manhattan was devastated and the events led to the invasion of Afghanistan and Iraq. But some good

INDUSTRY VIEW

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n 1995, while working for the Secretariat of the Treasury Board of Canada, Martin Cobb stated that: “We know why projects fail; we know how to prevent their failure – so why do they still fail?”

The current age of austerity, increasing levels of scrutiny, plus a hardening intolerance of failure, all make it imperative that this paradox be definitively addressed. “Project management professionalism among all those involved lies at the heart of the solution,” explained Andrew Bragg, chief executive of the Association for Project Management (APM).

APM has set out its 2020 vision as a world in which all projects succeed. It’s indeed a bold vision but one that’s achievable by constantly raising the bar of project professionalism across all sectors in the UK. “Our vision for the profession is ambitious, challenging and radical. But above all, it reflects what society expects,” says Bragg.

Thousands of members The association – the lead professional body for project management in the UK – celebrated its 40th anniversary last year.

It has more than 20,000 individual members and in excess of 500 corporate members across the public and private sectors.

“We support practitioners through APM’s Five Dimensions of Professionalism – Breadth of knowledge,

could come out of this. Plans for a new World Trade Center, originally hatched in 2002, are on track, with a set of new skyscrapers expected to open in 2015.

Homage to victims As expected, the new development will pay homage to the old WTC and the victims of the attacks while also trying to create something new. There will be a memorial dedicated to the nearly 3,000 people who died in the 9/11 attacks across America and a separate WTC attack from Februar y 26, 1993, consisting of two large pools in the footprints of the twin towers. The names of all the 9/11 victims – in New York, Pennsylvania and at the Pentagon – and the 1993 WTC bombing victims will be inscribed around the edges of the pools.

There will also be a memorial museum giving a narrative of the attacks and displaying various exhibits.

And the development will stand out.

One of the towers, the One World Trade Center building, has already overtaken the Empire State Building in height and when complete will be 1,368ft high

excluding its antennae – the same height as the original tower. With its antennae it will reach to 1,776 ft.

The WTC will be interspersed with retail outlets, making up an estimated 550,000 square ft of total space in an attempt to turn it into one of America’s stand-out shopping attractions.

And the area will boast other elements. A huge, immaculately designed transport hub with retractable glass and steel “wings” will give connections to nearby subway lines.

The project will also include a 1,000-seat performing arts centre, though some details around this have not yet been worked out.

Turkish delight Building projects have been gratefully received elsewhere in the world – particularly by tourists – as Istanbul plans to connect Europe to Asia via the Erdogan: those in favour of the bridge, raise your hand

Bosphorus Straits. But the stretch – served by two bridges – has become congested, leading to plans for a third bridge.

The bridge, announced last year, will be built with help from the private sector, and will be the longest on the straits, running at almost 1.3km. The government says it will open in 2015, costing an expected €2bn.

It is hoped lorries will use the bridge rather than clogging up roads – but opponents claim it will pull in more traffic and wreck the landscape.

The project has attracted some fierce critics, including the Forestry Faculty of Istanbul University, which is raising concerns about trees being felled, as well as the Istanbul Chamber of Architects, which argues the bridge will not solve Istanbul’s traffic problems.

The bridge has also gained a powerful ally. Turkish prime minister Recep Tayyip Erdogan once said the project would mean the “murder of the city”, but now backs it.

A world in which all projects succeed Professionalism needs the right platform Depth of competence, Achievement through qualifications and experience, Commitment to continuing professional development, and Accountability to a code of professional conduct – which provide them with a robust framework to develop their career,” adds Bragg.

The association continues to invest substantially in developing the competency of practitioners through the APM Body of Knowledge, defining the knowledge needed to manage any kind of project, and the APM Project Management Competence Framework.

Bragg explains: “The emergence of project management as a true career of first choice for new entrants marks a sea-change for the profession. And, as with any profession, it’s incumbent on all project managers to continually enhance and refresh their own competence.

“That is why we’re investing at all levels, from the recently launched Higher Apprenticeship in Project Management to the APM Registered Project Professional (RPP) standard.”

The Higher Apprenticeship in Project

Management was officially launched at the APM’s annual conference in June 2012. At the launch, Gill Hancock, APM’s product development manager, said: “When participants complete the qualification, they will have the technical knowledge required to manage projects in unfamiliar environments, as well as practical experience of having managed projects in the environments where they have trained.”

Gold standard At the top end of the scale, RPP is the pan-sector gold standard for assessing those able to demonstrate the capabilities of a responsible leader, able to manage a complex project and use appropriate tools, processes and techniques.

Through the association’s annual conference and awards, the successes and good practice of the profession are regularly celebrated.

Lessons learned are also shared through the APM’s extensive network of specific interest groups and regional branches, which hold regular meetings

Andrew Bragg, chief executive of APM and seminars on a wide range of topics.

APM is proud to lead this campaign for enhanced professionalism. Bragg concludes: “We’re helping provide the platform from which the profession can deliver. There is now a compelling need, urgency and opportunity for project management to become synonymous with success, for a world in which all projects succeed.”

0845 458 1944 www.apm.org.uk

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One World Trade Center is due to be complete later this year

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City scraper is just grate, says expert

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With its loudly hyped opening earlier this year, the Shard has already caused ripples in the English capital.

But other London buildings such as the Cheesegrater are close behind it.

The skyscraper, which has been designed by Richard Rogers and has a distinctive wedge shape, is due to be finished in 2014 after the financial crisis initially stalled its progress.

The building is designed to be 737ft tall, housing 48 floors.

John Roycroft, of the Institution of Civil Engineers, says: “The Cheesegrater is a fantastic example of architecture and engineering expressed clearly in precise and honest details that can be examined and traced with the eye. The proportions are also just right.”

The building, in the heart of the financial district, has already attracted attention, with insurance giant Aon agreeing to occupy several of its floors.

We need to talk about Kevin How Interim Partners helped resolve a major operational performance problem for an NHS Acute Trust INDUSTRY VIEW

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nterim Partners specialises in sourcing exceptional interim project and programme managers for organisations experiencing rapid growth, turnaround and business improvement.

In January 2012 we were approached by a major UK NHS Trust to assist with its 18-week target; the process of treating a patient within 18 weeks of their initial consultation.

Hitting the 95 per cent target is vital for those NHS Trusts attaining Foundation Trust status, as not doing so creates the possibility of fines and lost revenue.

The Trust had improved performance against the 18-week target from less than 80 per cent in April 2011 to over 90 per cent by Q4 2011. In December 2011 their forecast showed that performance was on track to fall back to the 80 per cent level in Q1 2012.

The Trust met with Steve Melber, below, Interim Partners associate director for healthcare, so that he could fully understand the nature of the problem and analyse the best interim project management solution available to restore successful 18-week performance.

Following these consultations, and after scouring both his known and unknown UK network for interim project management experts, Steve introduced Kevin Pirie to the Trust.

Pirie is a senior interim project manager with over 20 years’ experience and 14 years’ military service before that.

Pirie has successfully performed multiple interim project management assignments and committed to getting the Trust back over 95 per cent by April 1 – giving himself just two complete months to reverse the decline.

Pirie found that the Trust was focusing all their efforts on the backlog – the group of patients that had waited for more than 18 weeks. Although commendable, this shortsighted approach was treating the effect of the problem rather than the cause. Patients were being removed from the backlog at the same rate as new patients were joining it, so the number of people in the backlog was not

decreasing and the target percentage was not increasing.

At times of high bed pressure such as winter, this static system can quickly go over a numerical cliff – which is exactly what the Trust forecast.

Pirie shifted the Trust’s focus to the pathway; those patients within the 15 to 18-week period to cut the flow into the backlog rather than clearing it from the tail end. His six-month assignment delivered the following results: l The Trust regained more than 95 per cent 18-week compliance by the end of March 2012 l The Trust reduced the backlog from more than 260 to 108 – exceeding Pirie’s 50 per cent reduction target l The Trust has remained above 95 per cent against the 18-week target since Pirie’s departure l The Trust better utilises the 18-week rules, such as using declined appointments to freeze a patient’s position in the queue.

To find out more about Kevin Pirie’s assignment, or to discuss the range of interim project management options available to your organisation, please call Thomas Bridge at Interim Partners 020 7936 2865 tbridge@interimpartners.com

Target: to treat patients within 18 weeks

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Project management

Interim managers: a cost-effective alternative INDUSTRY VIEW

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here are approximately 25,000 interim managers operating in Britain today, and 40 per cent are working on a special project, according to the Interim Management Association’s (IMA) Ipsos MORI survey.

It was due, in part, to this senior, flexible and overqualified resource that the London 2012 Olympics proved such a success – the right people were pulled together at the right time.

Today interim managers are increasingly in demand among organisations in the public and private sectors because they offer a low risk, affordable way to access specialist skills, manage projects or handle pressing business challenges.

These top-flight executives can be parachuted into an organisation for eight to 12 months but they are not there to act and behave like a permanent member of staff.

Instead, they deliver results quickly before moving on to their next assignment.

Where resources are lean, organisations cannot afford to hire the wrong people.

Increasingly, interim managers are viewed as a cost-effective alternative to hiring management consultants or recruiting senior members of staff.

At the IMA, we recognise the need for consistency and quality of interim service. In 2012, we launched the IMA Approved campaign, which focuses on raising the bar in our sector. All IMA members adhere to a rigorous code of practice and appoint only the best interim managers for each role. Look out for the IMA-Approved tick-mark when appointing an interim provider.

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We learnt from Terminal 5 chaos, says Heathrow head Construction is growing for one major project, as Dave Baxter talks to the man behind Heathrow’s terminal developments An age of recession is no time to talk shop, and for project managers it can make for miserable conversation.

The Office for National Statistics estimated that in January 2013, for example, construction output was 7.9 per cent lower than in January 2012.

It also noted that just two construction sectors had grown between November 2012 and January 2013.

But John Holland-Kaye, right, is happily – and reassuringly – changing tone. As development director at Heathrow Airport, he gets to watch

Jason Atkinson is chairman of the Interim Management Association (IMA), and managing director of Russam Interim www.interim management. uk.com

In progress: Heathrow Terminal 2

the progress on its mammoth Terminal 2 development, as the 1950s complex is demolished to be replaced with a new £2.5bn structure.

And the progress is encouraging.

Building works for the new terminal – which Heathrow expects 20 million passengers to use annually – are on track, and Holland-Kaye says preparations are in place for next year’s grand opening.

He says: “Construction will be completed at the end of this year. We then get a six-month window to do the operational readiness and to make sure people know what they are supposed to be doing.”

Systems will be thoroughly tested, staff trained in what to do at the terminal and the 25 airlines operating from there will be briefed on systems and procedures.

The plan looks solid – this is probably because, as Heathrow learnt the hard way in 2008, project hiccups can be disastrous.

Its Terminal 5 complex, which cost £4.3bn, was met with praise – until it opened. It was hit by a slew of errors as a baggagehandling system broke down and passengers suffered through more than 200 flight delays.

Crises have knocked others off course. In the midst of an otherwise successful Olympic Games, security firm G4S was hit by a deluge of bad press when it failed to deliver all of the 10,400 guards required for the spectacle.

The company is estimated to have taken a hit of more than £70m in negotiations with Locog for not fulfilling its contract entirely.

The Terminal 5 predates HollandKaye’s time with the airport, but he

says it helped people focus on avoiding catastrophe.

He says: “You have to have your business plan, but then you also have to have contingency plans.

“With the Olympics, things went brilliantly for us because we had a Plan B but also a Plan C and a Plan D.” And he emphasises the importance of working to schedule, so teething problems can be solved early.

“Working to schedule reduces the risk that people on the airlines have issues. You need to anticipate what the problem could be and use the experiences of other people who have been through a similar process.

“We meet with people from other airports and talk about the risks.”

And, with safety issues and the problem of replacing a terminal located in the middle of a busy airport, there is plenty to worry about. Holland-Kaye has reason for cheer, but plenty to do.

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Project management

The big interview Andrew Wolstenholme

‘Crossrail can inspire a generation of future engineers’

By Dave Baxter Long after the Tube grinds to a halt, something stirs under London’s streets. Tearing its way through the capital’s underbelly as far as 40 metres deep, a pack of four 1,000-tonne metallic beasts rip tirelessly through clay, sand and gravel, leaving gaping holes in their wake.

Should Londoners be alarmed? Most likely not: the powerhouses bludgeoning their way through the earth (named Ada, Phyllis, Victoria and Elizabeth) are giant tunnelling machines used for Crossrail, the mammoth infrastructure project set to link key parts of London and the south east, due to be complete around 2018.

The machines are currently excavating tunnels for the project and overwhelm in scale: they are 148 metres long, operate 24 hours a day, thanks to three teams working eight-hour shifts, and have “enough push force to lift 2,900 London taxis”, according to Crossrail. They form just part of an infrastructure project – Europe’s biggest – which will cost £14.8bn and involve the construction of 26 miles of tunnel and nine new stations as well as other works.

Crossrail is such an enormous, intimidating project that it is almost odd to imagine a real person in charge.

But when I arrive to interview CEO Andrew Wolstenholme in the basement café of the Institute of Civil Engineers building not far from Westminster, it is a small, polite man in a suit who rises to greet me.

Wolstenholme is looking studious, and occupied, next to a stack of papers and an empty coffee cup. He is as busy as he seems – there are just 30 minutes free in his calendar following a session at the Treasury, just across the road, where he chairs the Government Construction Strategy Steering committee.

Speaking to Wolstenholme, it’s easy to imagine him discussing the big issues with the government’s numbercrunchers. He is comfortable with figures and happy to churn out endless statistics as he argues the case for Crossrail – the 7,000 people it is already employing, the work it is giving SMEs across the country and the expected longer-term benefits for the nation’s infrastructure.

Wolstenholme knows his way around the industry behind the numbers. After studying civil engineering at Southampton University, he spent some years in the army but later resigned his commission to pursue a career as an engineer. This took him around the world, working on projects in America and even Hong Kong airport. He later oversaw the successful construction of Heathrow’s Terminal 5 – something praised for running to time and cost, only to be overshadowed by a shambolic opening – before joining Balfour Beatty and later taking the helm at Crossrail.

He has proven an evangelist for upping the game in his industry – in 2009 he penned the report “Never waste a good crisis”, lamenting shortcomings such as firms’ inability to work together. But, for now, he is reluctant to stray from the subject of Crossrail.

He is careful to promote the project without getting distracted, and courteously bats away more general queries.

Aside from singing its praises, he hammers home points

about Crossrail’s importance and the pressure to prove its worth as an example of infrastructure as an investment.

He says: “We are very conscious at Crossrail that the industry and key decision-makers are watching our every move and using this project as a measure of how valuable infrastructure spending can be.

“The ultimate success or otherwise of Crossrail will, I’m sure, have a bearing on decisions about what other schemes are given the go-ahead in future.”

This may explain his demeanour: following points like a hawk and pausing, at length, to consider questions.

Wolstenholme is palpably serious about the subject.

But beside the pressure, he is keen, in the stopstart industry of construction, to use Crossrail to invest in a new generation of talent, and, as he puts it, do for the industry what the Olympics have for sport.

This involves not only getting people interested in the area but also pouring money into training schemes – such as Wolstenholme’s pet project, the tunnelling academy.

He says: “If the Olympics was about inspiring people, I would like to feel that Crossrail can inspire engineers to enter the trade.

“We have invested in things such as our tunnelling academy, and I feel this is a way to up-skill a generation.”

And he sees continually justifying infrastructure spending, in order to build up and maintain the country’s talent base, as a crucial mission – he likes to talk of avoiding “lumpiness”, when there are more workers skilled in an area than projects for them to be deployed on.

He says: “I think if there is a lumpiness in the UK, we will lose the talent. But we have a very strong construction base and it’s highly transferable overseas as the UK demand levels [out], so you have international suppliers who go overseas.”

On the rare moment he talks more generally, he speaks of seeing a healthier industry to the one he criticised in his 2009 report, thanks to the Darwinism of recession.

“Ten years ago we were a very disparate industry – clients behaved in very different ways and there wasn’t a national infrastructure plan,” he says, “What’s happened now is that suppliers work better together.

“And 15 years ago, we were in ten years of growth, but now we are suffering stagnation.

“That provides an incentive for upping the game.”

After this, Wolstenholme is off for more meetings to discuss Crossrail. He may be a regular person, but with his files and his smart suit, he is facing a superhuman task.

Quick fire round How do you relax?

I go walking and I paint landscapes What film did you last see?

The Impossible What was the last book you read?

How much is enough? by Robert and Edward Skidelsky What was your last holiday?

Skiing in France

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Project management

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COE: good partnersh You can’t manage a p EXCLUSIVE Alison Kervin reports from Rio de Janeiro, Brazil LORD Sebastian Coe sits back on the hotel veranda and admires the view of Rio de Janeiro stretching out in front of him. From the magnificence of Sugarloaf Mountain to the sun-scorched beauty of Copacabana beach – this is a stunning place.

But Coe’s focus is elsewhere as he scans the horizon: he’s thinking about how the organisers of the Rio Olympics are going to get people from the airport to the Olympic venues, how will the roads will cope, will this be a safe base for the Games, what about legac y and urban regeneration?

“I do become slightly obsessed,” he admits, with a gentle laugh. “I can’t go anywhere without thinking about how they’d host a major sports tournament!”

Being “slightly obsessed” was Coe’s route to greatness when London won the bid to host the 2012 Olympic Games, then he planned and executed it with such brilliance that the whole nation became entranced by sport for one glorious summer. Now he’s in the Brazilian city for the Laureus World Sports Awards, and to talk to the organisers of the 2016 Olympics. “There’s a ‘transfer of knowledge’ programme where previous organisers of the Games talk to the new organisers,” he explains.

Great start: ‘You have to kick things off in the right way.

The opening ceremony was breathtaking,’ says Coe

Great people are key So, what will he be telling them about managing a project twice the size of Heathrow’s Terminal 5 in half the time, and with the eyes of the world on him?

“You need a great team,” is his immediate response. “Great people are the key.”

OK, so what would he say were the three most important things he did to make the London Olympics such a resounding success?

“Good partnerships, prioritising, and good people. You can’t manage a project well without those.”

The irony is that when London won the bid on that memorable night in Singapore, there were no people on board. “We were starting from scratch,” he says. “I think that’s what made this such an unusual task – a huge, high-profile, multi-billion pound project, and you have no one to manage it. We couldn’t grow organically, like most companies do.”

They had to put together the largest workforce ever assembled in peacetime, starting with a chief executive – Paul Deighton. He joined just before Christmas 2005. “The more good people

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hips and good people. project without those we brought in, the easier everything became,” said Coe. “I realised the value of good people.”

Coe says he realised that his “good people” mantra would extend not just to those he employed, but those he worked alongside. He knew that good partnerships would have to be formed in order to make things happen. “We couldn’t do it alone – we knew that Ken Livingstone’s support was vital because he was responsible for London’s transport.

Crucial partnerships “Then there were the 19 government departments who were involved in delivering the Games.

Around 70,000 additional visas had to be produced. We needed those departments to be on our side and to get the visas done quickly, and help us make the Games a success. They did, and that’s why it worked. Partnerships were absolutely crucial.

“Away from dealing with people, there was building work to be done, and the regeneration of the East End of London. A main Olympic stadium, aquatic centre, velodrome and multi sports arena were accompanied by a media centre and athletes village – they all needed to be built from scratch.

“More than 100 individual planning applications were required for the Olympic Park site.

“We had an astonishing number of people to please, from the public who were worried we were wasting money, to local councils and

government, as well as the IOC [International Olympic Committee].

“Then one day I realised that the most important group of all was the athletes themselves. If they were looked after and performed well, the Games would be a success. They had to be my number one concern. Once I realised that, things flowed into place.

“That’s why I talk about prioritisation as being important. You need to have great relationships with everyone and employ great people but, at the end of the day, you have to remember what it’s all about. My project was all about sport, so the sportsmen and women had to b e prioritised.”

With this in mind, Coe was keen that competitors, wherever possible, were based together. In Beijing, equestrian events were staged in Hong Kong, more than 1,000 miles away. Coe spoke to riders who said Lord Coe picking up his Laureus Lifetime Achievement award in Rio

they felt out on a limb and wished they’d been with the other athletes, so he wanted the riders based with everyone else – in central London.

“But how do you find a place in central London that’s suitable? We decided that Greenwich was the only venue that would put the riders slap bang in the heart of London.

But there was huge resistance to this.

A pressure group was formed called NOGOE who opposed us all the way.

We won the battle in the end, but it was tough going.

“We were accused of planning to cut down 700-year-old oak trees and desecrating a n A n g lo - S a xon burial ground along the way. We had no pl a n s to de s t r oy anything and promised to restore the place afterwards, but it was difficult – a real battle to ma ke sure t he athletes were as happy as possible.”

As well as developing a “healthy obsession” with making sure the athletes were well looked after, he admits to also becoming obsessed with security. “I knew we were doing

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everything we could possibly do, but in the early hours of the morning I’d wake up worried, thinking whether there was anything else that could be done to make London safe. The sound of a police siren would throw me into a panic.”

Global audience The opening of the Games was another area that concerned him. “You have to kick things off in the right way,” he said. “We didn’t have half the budget that Beijing had, but I knew we’d be compared to them. Based on my ‘get the right people involved’ theory, I turned to Danny Boyle.

He was fantastic. The opening ceremony was breathtaking. It attracted the biggest global audience that British television’s ever had.”

Once the ceremony was over, it was left to the athletes to make it all work. “At the end of it all, when I look back, I’m pleased with what we achieved and I think Britain is a better place for us having hosted the Olympic Games.

“Witnessing the transformation in the lower Lea Valley was astonishing. There’s now a commercial hub that is the source of 10,000 new jobs. We lifted the country for the summer and we showed the world what we can do.

“I feel really honoured to have been involved, but it was Britain that made it happen. Perhaps that’s what project management really is…it’s about the importance of detail, the need for analysis and straight thinking, then it’s about magic…it’s about people really getting it and being sucked in and dragged along with you.”

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Wanted: skilled managers for global projects There are big opportunities for professionals with the right skills INDUSTRY VIEW

O

ver the past decade, globalisation has placed increasingly complex demands on organisations. The drive to remain competitive, paired with technological advances, has created an interconnected, 24/7 world that presents companies with an array of challenges and opportunities that were unimaginable in the past.

UK organisations are particularly challenged by the global shift in the way they do business. With FTSE 100 companies reporting that 75 per cent of profit is generated outside of the UK, it is evident that local organisations are reliant on resources that provide them with this global perspective.

Project management is at the centre of this new world order. Project managers with global credentials and experience are among the most sought-after professionals in the marketplace.

According to the Project Management Institute (PMI), the world’s largest association for the project management profession, 15.7m new project management roles will be added globally across seven project-intensive industries – including manufacturing, business services, healthcare, finance and insurance, oil and gas, information services, construction and utilities – by 2020.

Nearly a million of those jobs will be in the UK where median project salaries have reached £63,410 and where project managers with the Project Management Professional (PMP) ® certification, the most globally recognised and respected project management credential, earn 16 per cent more on average than peers without the credential.

Further research, including PMI’s 2013 Pulse of the Profession TM, shows that four in five organisations have difficulty finding qualified project management candidates. In particular, project practitioners with the proper combination of technical, leadership and interpersonal skills are needed to ensure that projects are not only successfully completed, but also that they align with the organisation’s strategic goals.

All strategic change in an organisation starts with projects and programmes; all must be expertly managed to deliver the on-time, on-budget results that organisations need. According to PMI’s Pulse of the Profession, the unpredictable economy – which shows little sign of

long-term stabilisation – has organisations operating with limited resources and under the demands of a “do more with less” culture. By applying the right knowledge, skills and techniques to execute projects effectively and efficiently, project managers enable organisations to tie project results to business goals – and, therefore, better compete in their markets.

Mind the gap While more organisations are adopting project management as a core competency out of pure necessity, not all have adequately invested in skilled project management talent. As a result, a talent gap has developed, creating an efficiency divide between organisations that master project management and those that fall short. The reasons for this gap are twofold. In advanced markets, career project managers are at or near retirement, creating a void of knowledge and experience.

Emerging economies lack enough trained or experienced project managers to go around. The potential for crisis becomes even more apparent considering the fact that educational institutions are not graduating enough project professionals to replace those who retire, as well as to fill the increased demand for skilled project professionals.

This is troubling news for organisations. For project management professionals though, it translates differently. The next seven years will offer unparalleled opportunities for job seekers who are armed with the right skills.

The next generation The key to solving the talent riddle for both organisations and professionals lies in one word: preparation. Decades ago, project management was seen as a tactical role which primarily required technical skills to manage project costs, scope and schedule.

Today’s project manager, however, plays a much more strategic, high-profile role. Organisations need project managers with skills in negotiating, networking and working in a culturallydiverse environment: problem-solving, risk management, critical and strategic thinking, an ability to collaborate and to lead, technological proficiency, and a strong foundation in science, engineering and mathematics.

PMI’s Pulse of the Profession also identifies communication skills as a

You could be the missing piece of the puzzle for a large, global organisation

TCS and PMI: An important relationship The programme management group of Tata Consultancy Services (TCS) Global Consulting Practice values its relationship with the Project Management Institute.

PMI represents the world’s largest not-for-profit membership association for the project management profession, with more than 650,000 members, certification and credential holders in more than 185 countries.

We look for a professional certification in candidates applying to us and strongly encourage our staff to acquire this type of certification from the main professional bodies, such as PMI. We also find that our customers are increasingly looking for professional certifications in the programme managers we propose for large scale engagements.

TCS’s Global Consulting Practice is a member of the PMI UK Corporate Council.

We receive a number of benefits from our relationship with PMI, including: l Our internal approaches for programme management and our programme management competence model are based on the body of knowledge captured and

must-have project management skill.

According to executives and other leaders, this more strategic skill-set is too often lacking in today’s labour force. Yet, with the right education and training,

published by organisations such as PMI. l The professional capital of our staff is increased through professional certification. l Our ability to understand developments within the profession is improved by sharing knowledge and information with other UK Corporate Council members.

We will seek to continue and broaden our relationship with PMI in other countries, as both organisations operate on a global basis.

About Tata Consultancy Services (TCS) Tata Consultancy Services is an IT services, consulting and business solutions organisation that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering and assurance services.

This is delivered through its unique Global Network Delivery Model, recognised as the benchmark of excellence in software development. A part of the Tata Group, India’s largest industrial conglomerate, TCS has a global footprint and is listed on the national Stock Exchange and Bombay Stock Exchange in India.

project professionals can acquire and successfully practise them.

Learn how to manage project talent www.pmi.org

Business Reporter · April 2013

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Building strong foundations for the construction industry Working efficiently with others holds key to success INDUSTRY VIEW

A

s UK PLC stutters along, pressure is mounting for politicians and businesses to find a way out of the mire and boost the country’s industries.

The Royal Institute of British Architects (RIBA), the Confederation of British Industry (CBI) and the British Chambers of Commerce are just a few prominent business groups urging a boost in capital expenditure on the country’s infrastructure.

Last month the Chancellor pledged £3bn extra, such as to roads, rail, water tunnels and energy networks from 2015/16. But there is still a feeling more must be done with increased capital spending to kickstart the economy.

Bill Hocking, executive vice president at construction firm Skanska UK, said: “It’s so easy to take infrastructure for granted and we only notice when things go wrong. The reality is that we are still relying on infrastructure from the Victorian era, so projects like the Thames Tideway Tunnel are vital. Not only will it prevent sewage discharges into the River Thames but the investment is a stimulator for economic growth. The same principle applies to our roads, railways and energy infrastructure.”

The argument is robust: figures from the 2009 study “Construction in the UK Economy, the benefits of investment”, commissioned by the UK Contractors Group, show that in 2008 alone, the construction sector made up a whopping £124 billion, or 8.5 per cent, of UK GDP. The investment tends to give strong returns. Every £1 invested in construction generates £2.84 in economic activity as well as raising tax and stimulating the various sectors supplying construction projects.

Halting race to the bottom

‘We invest heavily in our staff and make sure we have competent people’ – Hocking

Project management

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But the construction industry has been battered by recession. And, as some firms feel forced to cut back to keep their balance sheets in order, they are in danger of sacrificing product quality. But this race to the bottom can be halted, and firms can still succeed by focusing on managing projects efficiently.

Skanska, which funds and constructs new infrastructure, has worked on a number of high profile success stories. As part of a design, build, finance and operate contract for the Highways Agency it widened a 62km stretch on the northern section of the M25 in time for the London 2012 Olympic Games. Hocking said: “In

The 1,200-tonne Borough Viaduct, constructed by Skanska

this economic environment having access to such financial resources is really important to developing new infrastructure, providing a stimulus to the wider economy too.”

One priority is co-operation with others – whether clients, users, suppliers, partners or community groups.

Companies must involve contractors and developers in the procurement discussions early to make the process smoother, and show what is and isn’t possible. And maintaining good relationships with other concerned parties is vital.

“Good relationships are helpful in any project,” says Hocking. “The key is early involvement, stakeholder management and ensuring you have appropriate project controls in place, such as planning, forecasting and risk management. We apply this principle to all our clients, from Crossrail and Network Rail to the Highways Agency and National Grid. Contracts can be inefficient in the delivery phase if you have the wrong people. We invest heavily in our staff and make sure we have competent people who have the right attitude and will always be focused on client goals and outcomes.”

Getting it right involves not only assessing and meeting client expectations but also maintaining good relationships within the supply chain.

Skanska, for example, does this by committing to fair payment terms for suppliers to give financial certainty in

Bill Hocking, right

an uncertain climate.

Hocking also stresses the importance of flexibility, such as when a client needs change. He says: “The main thing here is a can-do attitude, but you also need the technology, competence and the ability to absorb change and minimise the impact.”

And he argues other forms of collaboration also matter. Joint venture (JV) partnerships have become an inevitable part of tackling major projects, and Hocking says this has numerous benefits.

He says: “Joint ventures provide muscle in terms of resources and may reduce a very competitive landscape.

They can be useful if you need a wider range of skills or technologies. It also makes sense because it means you can be involved in a major project but manage your risk in doing so.”

The recent work on the M25 was carried out using a JV partnership, as Skanska and Balfour Beatty came together on what was a £1billion construction project.

Hocking also mentions the need to focus on sustainability in projects. He says: “We design to minimise embedded carbon and whole life carbon, because carbon equals cost.

“Having efficient infrastructure assets will become increasingly important with energy prices rising and infrastructure having a long lifespan; we think it gives us a competitive edge.”

Hocking says the firm’s people and values, its balance sheet, focus on relationships and sustainability give it a bright future.

Exceptional engineering Construction projects are rarely easy, but carrying out complex work is even tougher when it’s slap-bang in a popular tourist spot.

Working on the Borough Viaduct at London Bridge, right above the bustling Borough Market, was always going to be a challenge. Skanska constructed an eye-catching 400m viaduct alongside the existing railway and above one of London’s busiest road junctions. It had to be carefully threaded between and over existing historic buildings.

Going back around five years, all the social media buzz homed in on the chaos this was expected to cause.

Skanska’s managing director for civil engineering, Greg Craig, says that with meticulous planning and people trained to engage with the local community, the project was successfully delivered with minimal impact.

Craig says: “We worked closely with the local community through Network Rail. We deployed community liaison workers to continuously explain what was happening, to persuade people to adapt to the change and to respond to their needs.

“Very few people actually realised that whilst they were shopping in the market, a 1,200-tonne viaduct was being built right above their head. In fact many of them only realised what we had been doing after we rolled the completed bridge into place over a single weekend.”

01923 423494 www.skanska.co.uk

Business Reporter · April 2013

Project management

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Projects can be flexible Agile Project Management is fast becoming a popular method INDUSTRY VIEW

T

he UK’s most widely used project management method – PRINCE2® – is not known for its flexibility. It brings rigour, accountability and process to the art of project management.

Marrying PRINCE2 to its more flexible cousin – agile project management – would surely be an unnatural and uncomfortable alliance. Or would it?

While PRINCE2 is the most widely used method in the UK – more than 1m PRINCE2 certificates have been issued globally – the agile project management qualification – AgilePM- is the fastest growing certification, according to issuing body APMG. In his 2013 paper, AgilePM: Integrating DSDM into an existing PRINCE2 environment, Keith Richards of agileKRC says: “PRINCE2 should not be seen as a blocker to agile, in fact it is quite the opposite – it is an enabler, allowing agile to happen in a disciplined manner.”

AgilePM is based on DSDM Atern (Dynamic Systems Development

Method). It focuses on the elements of an agile project that are specific to the project manager, in particular, the early delivery of benefits, offering agility and ensuring that good practice within projects, project delivery and project management are maintained. Used alongside PRINCE2, AgilePM introduces measured and balanced change. It offers flexibility while still recognising the processes that give project managers confidence.

On a traditional project, project managers may be actively involved in directing work and telling their team what needs to be done – a style often referred to as command and control. AgilePM is different. In the early stages, the agile project manager (in conjunction with the team) creates a plan, based on outline requirements and a high level view of the solution to be created. From that point onwards, the end product is created iteratively and incrementally, with each step building on the output of steps preceding it. The detailed plans for each step is created and maintained by the team members themselves and not the project manager.

Agile is based on the principles of clear and continuous communication and transparency, with checkpoints to track progress. Agile also facilitates preventative cost control, as correcting mistakes is more costly than avoiding

them in the first place.

AgilePM comprises established and proven components that provide a holistic approach to the management and governance of agile projects. It has an overarching philosophy and guiding principles, together with a lifecycle and a set of deliverables to be created and maintained as the project progresses from a controlled start to completion.

It provides clearly defined roles with specific responsibilities designed to bring together all the stakeholders in the project.

When PRINCE2 project managers complete their status reports they don’t necessarily have an insight into the health of their project. With AgilePM, the team collaborates closely with a representative of the business or customer so they understand the detail and have a clear view of the next step, thus creating an evolving solution.

Mary Henson of the DSDM Consortium says: “Adopting the good practice guidance within AgilePM will provide the project manager with confidence that the correct levels of formality and rigour are applied and the project will deliver real value to the organisation.”

01494 452450 www.apmg-international.com

Agile is based on clear communication

International

Business Reporter · April 2013

an independent report from lyonsdown, distributed with the daily telegraph

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Diary I

t will cost £14bn and take 10 years to complete.

But Hinkley C is of “crucial national importance,” says Energy Secretary Ed Davey.

Estimated to provide 7 per cent of the UK’s electricity, it will be one of the biggest infrastructure projects for years, creating 5,600 construction jobs and around 900 for daily operations over

the next 60 years.

Contracts worth £87m have already been given to UK firms in the south-west and 1,000 local companies have so far registered for the accreditation process to be part of the EDF supply chain.

Alistair Smith, chairman of the power division at the Institution of Mechanical Engineers said: “It has to be a very well-planned pro-

My interest in football is rather limited. But for a large number of people, the beautiful game is a huge part of their lives.

In a 2011 grassroots football survey by the Football Association, the most pressing issue raised by 84 per cent of respondents was “poor facilities”.

So in response, the FA has pledged £150m to improve

run-down urban facilities.

Managing this improvement project won’t be easy.

With more than 80 per cent of football being played on publicly owned

pitches, the FA will need to work pro-actively with local authorities and schools to develop sustainable, long-term plans to guarantee the development and protection of football facilities.

Simply put: improved pitches will produce better players... maybe even a Messi of our very own?

ject; every day you’ve got to know exactly what you’re doing in relation to all the other contractors working around you.”

It has been likened to the scale of the 2012 Olympics and involves not only the construction of two nuclear reactors but also a series of highway improvements, campus accommodation and park and ride facilities for workers.

EDF is also working with Jobcentre Plus to ensure people in Somerset are made aware of new job opportunities as they arise.

However, the question still remains as to whether potentially high electricity prices set by EDF will overshadow the benefits.

It seems our London mayor has come over all French during a recent speech in Paris.

Boris Johnson, who has called for a new four-runway airport to be built in the South East said he felt “envy” at the French approach to building projects and suggested that vast expanses of English countryside should be used for airports, railways and nuclear power.

He says: “I wish we could imitate the ease and ruthlessness with which the French send high-speed trains streaking across the landscape.”

Considering the opposition to HS2 ploughing through the countryside, I’m not sure we will all be singing the same French tune anytime soon.

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Coming to a computer screen near you? Government’s £530m broadband boost

An easy-to-use app that allows project managers to plan and share their ideas with team members. It can be used for the simplest to the most complex projects.

Mind Tools

Fast broadband has transformed people’s lives and businesses. But for private sector companies, investing in infrastructure in rural areas doesn’t always make economic sense.

To stimulate interest, the government has invested £530m with the aim of improving broadband services for as many homes and businesses as possible.

It’s a huge project – with its fair share of problems – and requires the co-operation of central government, local councils and private companies to succeed.

But the benefits are worth the effort.

Not only will everyone be able to watch Gangnam Style in full 1080p, more importantly, it will allow rural businesses to rapidly expand their customer base, develop a social media brand and do business anytime and anywhere.

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Mavelink

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Currently #1 in the Google Apps Marketplace, Mavenlink advertises itself as an app to manage projects, collaborate with your team, enter tasks and work within a budget.

All in one place.

A girl’s guide to project management

By Ollie de Kretser u Editor’s pick Association of project managers

pm4girls.elizabeth-harrin.com

apm.org.uk/blog APM is a registered charity and the largest professional body of its kind in Europe, providing leadership for individuals and organisations who share their passion for improving project outcomes. As part of its service, the team of bloggers offers opinions on APM, the profession, and project management. They encourage people to share their thoughts by leaving comments or debating an issue in their discussion section. If enough interest around an issue is raised then people can form groups to develop the discussion further.

13

Boris longing for a French connection?

Ollie de Kretser

FA pledge £150m to ensure pitch-perfect game facilities

Project management

Find us online: business-reporter.co.uk

This blog began after a realisation that, while there are plenty of women working in project management, there aren’t enough of them writing and speaking about it. So career project and programme manager, Elizabeth Harrin, decided to set up a blog that discussed the profession from a female perspective.

Voices of Project Management

Guerrilla Project Management

blogs.pmi.org/blog/voices_on_project_ management

guerrillaprojectmanagement.com

The Project Management Institute blog gives insight, tips and stories from project managers in different regions and industries. Their goal is to get managers thinking and spark discussions, encouraging comments on articles.

Guerrilla Project Management brings together thoughtleaders from project management, organisational change management, psychology, social science, and neuroscience to share their insights and inform on how complex projects can be effectively managed.

PM Hut pmhut.com

The Project Management Hut came about when a group of project managers decided to make their vast experience accessible to everyone by writing and gathering articles and presenting them in a digestible format. Today, PM Hut is considered the largest database of categorised project management articles in the world.

In their own words: “Apparently, a group of project managers working together were able to finish something.”

Business Reporter · April 2013

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?

The future

Q uestio

Agile project management

Tony Marks, MD of 20|20

Quality business solutions can be found with agile, says Andrew Craddock

A

gilePM® is an agile project management framework based on DSDM (Dynamic Systems Development Method), which is one of the approaches that helped shape the agile world back in 2001.

Organisations have turned to agile software development approaches in an attempt to deliver higher quality solutions for businesses that have a real need to do this in an efficient manner, without the outdated and flawed document-driven processes that have been associated with this field since the 1970s.

There is plenty of evidence to suggest that an agile approach does deliver better quality solutions but many larger, more complex organisations often struggle to reconcile business governance needs with the low bureaucracy and low formality way of working that characterises agility.

The DSDM framework was initially created in the 1990s through the collaboration of thought leaders and innovators from blue chip companies in the UK such as Abbey Life, British Airways, British Telecom, Logica, IBM, Oracle, Barclays, Norwich Union, Ford Motor Company, Clerical and Medical Investment. By design, DSDM is intended to be used in such

The DSDM framework was created through the collaboration of thought leaders organisations and meet their governance needs and, in use, has been shown to significantly improve project performance, ensuring they are on time and on budget.

Although DSDM has continued to evolve over the years, it has remained true to its corporate roots and is now very well placed to meet the governance needs of the current age while offering all the advantages of agile development.

Scrum is, by a long way, the most well known of the agile software development approaches used in the world today but, by default, it lacks the project focus and formality that larger organisations need to frame and govern software development.

AgilePM can be used out of the box in

“DSDM mode” to meet all agile development project needs of an organisation new to agile. Alternatively, for an organisation that has already invested in Scrum or wishes to exploit the experience of the many Scrum practitioners available in the market place, AgilePM can be used in tailored form to complement Scrum for software development.

You can download the DSDM Agile Project Framework for Scrum whitepaper from our website.

Andrew Craddock is Technical Director of the DSDM Consortium 01233 611162 www.dsdm.org

A corporate approach The directory

Hannibal

“

We will either find a way, or make one

The UK public sector has invested millions in project and programme management training courses. However, there are still problems and the investment is not being used effectively to enhance the way people work.

While there is a corporate approach to things such as job applications and complaints procedures, there is still a lack of corporate approach to managing projects and programmes.

As a result of this, the terminology and methodology used are not standard across the industry and people involved don’t fully understand what their responsibilities are.

“Unless we put together some form of corporate methodology we will not make a difference,” says Rajiv Khanna, above, director and lead trainer at Raj

a n + ns

Business Zone

Project management – Industry view

r we

14

an independent report from lyonsdown, distributed with the daily telegraph

Khanna Associates Ltd, also known as RKA. Apart from providing expert project and programme management training, RKA Ltd is working with organisations to develop a corporate approach of managing projects and programmes using an affordable and readily available tool, rather than over complicated proprietary software.

Their job is to help organisations adapt this tool to suit their needs, develop a corporate approach and then train their staff on how to use that approach.

According to Rajiv Khanna, “staff being trained on a corporate methodology is far more cost effective than sending them on external courses with examinations attached.” www.rkassociatesltd.co.uk

John Laing is a specialist investor, operator and manager of public sector infrastructure assets, globally.

0207 901 3200 www.laing.com

What’s the best advice you could give someone about running a project?

It all boils down to good planning and risk management. This underpins everything and means you are more likely to deliver a successful project outcome. You need to plan your planning, which is difficult for people in practice because it’s an unnatural process – people are usually much more interested in getting stuck into the detail and can neglect planning stages. Risk management is probably the most under-rated attribute of a successful project manager.

What’s your most memorable learning experience?

Developing a good project team is a vital element to ensure success and you need to invest time into achieving this. I learnt this when I worked on the CHIEF (Customs Handling of Import and Export Freight) project for BT. I had to deliver a technically demanding project in very compressed timescales.

This meant having to take time out of project work to help build a large team of people. It was counterintuitive to have to take time out of a timesensitive project to build the project team, but that’s exactly what was needed.

What’s your most interesting project?

It would have to be writing my book. Having not done it before, it required a completely different set of skills .

20|20 Project Management – How to deliver projects on time, on budget and on spec is published by Kogan Page www.2020project management.com

Business Reporter · April 2013

an independent report from lyonsdown, distributed with the daily telegraph

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Project management – Industry view

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15

The debate

Major projects: what is key to success?

Malcolm Noyce Executive director, Major Projects Association

David Walton Managing director, Bestoutcome Ltd

Richard Pharro CEO, APMG-International

Mark A Langley President and CEO, Project Management Institute (PMI)

Geoff Haley Global chairman, International Project Finance Association

Most faults and problems that occur on major projects can be traced back to the very beginning.

Hence the two vital components for success are client knowledge and skills, and clear project objectives and robust planning.

The key question that everybody in a senior position on a project should ask is: “Why are we doing this project?”

Followed by: “Who is going to use this project and how will they use it?”For example, the Crossrail project is not about building a tunnel and a rail system under London. Rather, it is about providing new public transport infrastructure to enable passengers to have a safe and quicker journey.

Key outcomes for the users centre on safety of travel and quality of the experience – such as reliable timetables and ease of use of trains and stations.

Once these objectives are established, the client should rigorously define the project specification and then resist attempts for changes. The later the scope changes, the greater the cost and delay.

Key to the success of every project is an understanding of what business outcomes your project must achieve.

Too many projects start with a vague notion of what the business wants, and sometimes they are wrong.

For example, in a recent project the end goal was expressed in terms of a head office move – moving people from A to B. This was an obvious project output but the real outcomes were much more profound. The CEO did not want to spend millions of pounds just moving people: the real business outcome of this project was to re-engineer the business and the office move was simply a catalyst.

When the owners and stakeholders are clear about the end-goal of the project and the milestones needed to achieve it, then the project has a solid foundation for success.

Conversely, if the end-goal or target is unclear then it is unlikely to succeed.

Invisible targets are hard to hit!

My single keyword for success of major projects is “clarity”.

Projects are delivered by people, who need to know what has to be done, by whom, when and for what. It is imperative that there is clear communication and engagement by all stakeholders. Success criteria need to be unambiguous and everyone must know what their particular role is in achieving that success. Excellent communication and shared knowledge to tackle project issues and overcome obstacles is required.

I don’t think you can overestimate how important good communication skills are.

An unmovable end date, such as the 2012 Olympics, is helpful in focusing the individual’s and the team’s mind. All this is simple in theory but very difficult to apply in practice, usually because objectives and drivers are not aligned.

People often have different and competing priorities so it helps if there are full-time project team members working to pull everything together.

When organisations execute their projects and programmes better, they drive success and deliver competitive advantage. But when an organisation’s executives undervalue the benefits of effective project, programme and portfolio management, they put money at risk.

PMI’s Pulse of the ProfessionTM research, which is consistent with other studies, shows that fewer than a third of projects meet their goals and business intent [success rates have been falling since 2008], and about 17 per cent fail outright. Failed projects waste an organisation’s money: for every £1bn spent on a failed project, £169m is lost forever.

Some organisations are excelling by aligning project management with organisational strategies; these organisations risk 14 times less money than their counterparts. Significant improvements still need to be made.

Driving efficiency, cultivating a strong talent base, improving communications and better aligning projects with enterprise strategies will help organisations increase project success and reduce budget at risk.

Without doubt the secret to the successful building of a major infrastructure project is leadership by a project champion.

The project champion acts as a visionary, a strategic leader and a figurehead that can take the lead if and when it is called for.

Every project needs someone – be it an engineer, lawyer or banker – who will lead a project through the bidding and negotiation stage through to financial close.

All projects need someone who will deal, negotiate, compromise and answer any questions regarding issues that may arise.

A project champion brings together the equity investors, the banks, the contractor and operator and produces mutually agreed documents.

No project champion limits the chance of a successful project. Their experience and strength can improve the likelihood of a project’s success, in addition to providing moral and physical support to all stakeholders.

The champion must be reliable, resourceful and reputable.

01865 422 581 www.majorprojects.org

01753 885 864 www.bestoutcome.com

01494 452 450 www.apmg-international.com

www.pmi.org

020 7831 2222 www.ipfa.org

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Organisations that have a defined career path for project managers have 25% more projects meet their goals than those that have no defined career path.

PMI is the world’s leading project management organisation. Their unique global study, Pulse of the Profession™, reveals what organisations that successfully deliver projects around the world do differently to those that don’t.

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15/03/2013 15:06