How to deliver major programmes of work successfully
“In our experience, companies which
organise their projects as programmes and employ programme
management methodology are more likely to succeed.”
What makes a major project or programme work, and what can make
it fail?
The construction industry has a chequered history of delivery, most
recently exemplified by the contrast between the Emirates and
Wembley Stadiums. But similar contrasts exist between the Scottish
Parliament Building and BAA’s Heathrow Terminal 5, as well as the
Channel Tunnel and the Channel Tunnel Rail Link.
The question is not an academic one as we face the
current global financial crisis. The UK government, along with the
US, are considering huge national fiscal stimulus packages that
include significant investment in infrastructure as a means to
generate growth and kick-start their economies. If these major
projects are delivered over budget or late, they will not achieve
their intended economic benefits.
An opportunity and a responsibility…
Major projects used to be the preserve of
government, but increasingly private sector funding has become a
vital ingredient to publicly sponsored projects, while privately
sponsored projects and programmes have also emerged. Major change
programmes are not the preserve of construction, and the principles
of successful delivery are transferable across sectors. In our
experience, companies which organise their projects as programmes
and employ programme management methodology are more likely to
succeed.
So what makes a major project or programme
successful, and how do you ensure certainty of outcome and greater
financial and economic value from investment? We outline some key
areas for focus and typical questions we are asked by clients when
advising on how to deliver major projects successfully.
An aligned client leadership
How do I better control the development and delivery
process?
Most of our clients have significant critical
business activities to conduct whilst managing major projects. Our
approach is to bring clarity and simplicity around what needs doing
at each stage, allowing them to focus and to facilitate their
strategic decision making. The success of the project is entirely
dependent on their complete involvement together with the provision
of clear objectives and the complete alignment within their
leadership team of business need, the project’s alignment to
business strategy and the outcomes required.
We also find it necessary to establish an
appropriate governance framework which provides the necessary
management controls, to ensure that the delivery achieves or
exceeds the defined outcomes. It also provides an opportunity for
peer review and value enhancement.
An engaged supply chain
How do I adapt my organisation around growth in
contracting or changing markets?
Many organisations find that they do not have an
effective working relationship with, and are unable to unlock the
value from, their supply chain. Delivery of a major project
requires high performance throughout the supply chain which can
only be achieved through full engagement and a relationship
approach.
It is necessary to work with a consultant with
significant experience in developing supplier engagement strategies
with clients to drive significant value through the supply chain.
The key is to develop and manage partnering style delivery methods,
working with collaborative style contracts such as the ECC/NEC
suite.
We find that the key issues around the supply chain
include: how the supply chain should be engaged and how early in
the project; the application of appropriate mechanisms for control
and incentivised performance; effective relationship management and
the placing of risk with the party best able to manage it. We also
find that it is most effective to develop KPIs with the supply
chain to enhance their ownership of the outcome.
An effective programme management team
How do I deliver greater performance, manage risk
and enhance returns?
Most successful companies and projects can link
their outcomes to the quality of leadership provided by their
professional management team. The management team will inevitably
have their own style but must work closely with the client to
ensure that the delivery is influenced by the client’s ethos and
vision.
Delivery performance is heavily influenced by
project stakeholders. This is particularly true for major urban
infrastructure works such as construction for London’s 2012 Games,
Terminal 5 at Heathrow and Crossrail. Our approach, as with the
supply chain, is to engage stakeholders early in the process and
work with them throughout delivery to align their objectives with
those of the project.
A feature of major projects, is the degree of
uncertainty that must be negotiated whilst providing delivery
certainty of the scope, budget and programme. This is accomplished
through robust management of change, risk and opportunity, and
should be delivered through the application of a Programme
Management Office (PMO) approach, which proactively measures
project performance and provides ‘one version of the truth’, as
well as clear processes for evaluating and managing the impact of
risk, change and opportunity.
The programme management team must be supported by
Management Information Systems (MIS) that deliver accurate and
timely information to enable effective decision making. MIS can be
web-enabled to allow visibility of data across geographies where
the client or management team require mobile access or are located
at multiple sites. Opportunities for performance improvement are
driven through assessing trends and managing supplier KPIs.
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Delivering major programmes [118kb]