BRITNIG INSIGHTS
April 1, 2014
Strategy Execution Management and Projects Advisory Practice
Growing Importance of Sustainability as a Project Success Metric By Yakubu Olawale, PhD
Do the projects that make up your strategy implementation programmes contain sustainability success metrics? - There are signs that sustainability is going to be just as important as the classical project success criteria.
Traditionally, time, cost and quality are the fundamental criteria used in measuring project success, known as the ‘iron triangle’ (Exhibit 1).
Exhibit 1 – Classical Iron Triangle But should project success be restricted to
team members’ satisfaction, responsiveness
just these criteria? There are many schools
to clients etc; and whilst this was viewed as
of thought that say they shouldn’t. Pinto and
extreme at the time, it led to a rethink of the
Slevin argued as far back as 19871 that
traditional model. As a result, measures such
project success should include psychological
as stakeholder satisfaction are now firmly
measures such as top management support,
established.
Is sustainability emerging as a new
quality
constituent of the „Iron Triangle‟?
environmental robustness to cope with the
There are signs that it is going to be just as important as the classic constituents of the iron triangle (cost, time and quality). Although, this thinking is more mature in some
fields
notwithstanding,
than
others.
many
But
should
be
measured
on
future. Taking a holistic view of project success measurement which incorporates sustainability criteria, can result in a ‘winwin’ situation for both clients and their service providers.
organisations
(potentially your clients) are increasingly embracing sustainability.
If
organisations
incorporate
this
requirement and expectation into their service offering, it has the potential of
They are seeking to demonstrate ethical standards and incorporate broader social and environmental considerations into their balanced
scorecards
and
increasing clients’ satisfaction with the ripple effect being more successful contract wins and repeat business.
strategic
dashboards. This ultimately trickles down to the success measure of individual projects required to achieve their strategic plans.
How can this be implemented in practice? The question that comes to mind is... “All
this sounds like a great idea in theory, Dual benefits of sustainability Savvy clients are also increasingly using sustainability as an enabler to help achieve cost reduction, time optimisation and quality improvement through the implementation of a whole life costing strategy.
but how can this be implemented?” In practice, the most strategic of programmes are already embracing sustainability as part of their success metrics. Take the example of the London 2012 Olympics, the Olympic Delivery Authority (ODA) had to “agree and promote sustainable development and procurement policies, including commitments to sustainable energy
They are advocating that cost should be
and waste management goals.” 2
looked at over the whole life of a project as opposed to a myopic short-term view, while
2
In order to achieve this overarching
Sustainability - A fulcrum for the
sustainability project objective, the ODA set
classical project success metrics
itself and the companies working on the programme targets that were embedded2 in success criteria of the various Olympic projects.
The key point to note here is that sustainability is best considered across a project’s whole lifecycle. Not just during design or development, but through the operational phases as well.
Furthermore, practical measures such as local sourcing and adopting lean principles are a good starting point. While striving to integrate sustainability related policies and activities at different stage of the project life cycle, such as reduction of carbon footprint, embracing sustainable supply chain and procurement measures are a great stride towards strategic programmes achieving their sustainability targets. This will no doubt add to the sustainability credentials of
Therefore, since it is perceptible that measures like local sourcing can help prevent project delay. While sustainable supply
chain
and
procurement
can
contribute to the achievement of the quality and cost objectives of a project, then sustainability could be an enabler in the quest to achieve these classical success metrics (Exhibit 2).
your organisations.
Exhibit 2 – Sustainable as a Key Driver of the Iron Triangle
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Going forward, the traditional iron triangle will not be dismantled but supported by
Note –A version of this article is also available as a blog by the same author. 1.
Pinto, J. and Slevin, D. (1987) Critical Factors in Successful Project Implementation, IEEE Transactions on Engineering Management, Vol. EM-34, No. 4, pp. 22 - 27
2.
http://learninglegacy.independent.gov.uk/themes/sustainabi lity/index.php
sustainability as a key driver. It will therefore be of value to organisations if strategic programmes and projects are designed to incorporate sustainability success metrics during strategy execution.
Dr. Yakubu Olawale is a Director at Britnig, UK. He holds an MBA from the Warwick Business School. He has worked for various organisations in the UK including FTSE 100 companies, with experience across various industries including financial services, outsourcing and consulting. www.britnig.com
Integrated Management Solutions Copyright Š 2014 Britnig Limited. All rights reserved. We welcome your comments on this article. Please send them to info@britnig.com
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