How to Avoid Project Wreckages

Professor Andy Gale UoM

TacomaNarrowsBridge

Opened1July1940

Collapsed11November1940

NicknamedGallopingGer=e

WhenwasthebridgenicknamedGallopingGer=e?

Nicknamedbytheworkforcein1938–becausethebridgejumpedaroundinhighwinds

Cobb’s Paradox https://www.standishgroup.com/sample_research_files/chaos_report_1994.pdf

“We know why projects fail, we know how to prevent their

failure – so why do they still fail?”

Source: Martin Cobb Treasury Board of Canada Secretariat Ottawa, Canada Standish Group CHAOS University 1995

ProjectFailure

•  Unplannedevents•  HealthSafetyandEnvironment•  Uncertainty•  People–difficultresource•  ImportanceofaProjectCharterandaProjectStrategy

AccordingtoPlato,“Thebeginningisthemostimportantpartofthework.”

HistoricalProjectCharters

OnApril30,1492,KingFerdinandandQueenElizabethofCas=le,Spain,issuedacharterandprovidedChristopherColumbuswiththenecessaryvesselsandresourcestodiscoverandsubdueislandsandacon=nent.Theexpedi=oncharterwastherealiza=onofColumbus’dream;aYermanyyearsofwork,heconvincedthemonarchyofthebenefitsoftheproject,andtheysponsoredhisendeavorwithresources.Addi=onally,basedontherisks,theyrewardedsuccesswithapromo=ontoadmiralandgovernor.ThishistoricprojectcharterresultedinthediscoveryoftheAmericasandremarkablerichesfortheprojectsponsors,projectdirectors,andSpain.(adaptedfromMcKeever,C(2006)TheProjectCharter–BlueprintforSuccess,TheJournalofDefenseSoYwareEngineering)

ChartersareaboutPeople“ProjectCharteringisapopularformofhelpingtheteamtobuy-intotheprojectpurpose.TheProjectStart-upconcepthaspromotedtheideaofcombiningbehaviouralteam-buildingac=vi=eswithprojectplanning…..”...”Start-upandcharteringini=a=vesshouldnotonlymakeclearwhatthepurposeoftheprojectisbutalsohowtheteam’sperformancewillbemeasured.......”(Morris,P.W.G(2013)Reconstruc=ngProjectManagement,Wiley-Blackwell,p103.)

Chartersshouldaddress:Behaviour,Conflict,Decisions,CommunicaFon,DiversityClarifyingexpectaFonsofbehaviour

ProjectStrategy

TheProjectChartershouldleadto

TheProjectStrategy

WhatshouldbeintheStrategy?•  StakeholderEngagement•  RequirementsManagement•  BusinessAlignmentandCommitment•  BusinessCase•  HighLevelAssump=ons•  LessonsLearned•  Objec=ves•  HighLevelRisksandOpportuni=es•  ProjectContext•  ProjectExecuFonStrategy

WhatsortofacFviFesarecoveredbyExecuFonStrategy?

Project Charter Execution Strategy

Project Management Plan

Stakeholder Engagement Requirements Management Business Alignment and Commitment Business Case High Level Assumptions (Critical Success Factors) Lessons Learned (from previous projects) Objectives: Clarity and Priority High Level Risks and Opportunities Project Context (PESTLE) How?

ProjectSuccessFactors

1.   Governancestrong2.   GoalsandObjecFvesclear3.   Commitmenttosuccess4.   Capableprojectsponsors5.   Securefunding6.  Projectplanningandreviewstrong7.   Supportwithinandfromorganisa=onsinvolved8.   Enduserinvolvementstrong9.  Competentprojectteam10.   Supplychainalignmenteffec=ve11.  ProjectManagementtoolsrobustandflexible12.  AppropriateregulatoryenvironmentAPM(2014)FactorsinProjectSuccess,APM/BMGResearch,November2014

Wehavediscussedallthesethingsyesterday

12 Ways to Wreck a Project

Source:Pinto,J.(1996)WhatMadeGer=eGallop:LessonsFromProjectFailures,VanNostrandReinhold

MostofourworkisaProjector

partofaProject

12 Ways to Wreck a Project

12 Ways to Wreck a Project

12 Ways to Wreck a Project

12 Ways to Wreck a Project

12 Ways to Wreck a Project

12 Ways to Wreck a Project

Why Projects Fail What Practitioners Tell Us l  InvolveNovelty:Technology,geography,newsupplier,newsoYware

l  BusinessCaseDevelopment

Scopingandchangecontrol

l  ChangesbetweenProjectOfferandSancFon•  WhatwaspromisedtotheSponsor/Client/OwnerorandEndUserisnotfeasible

l  PoorExecuFonStageIniFaFonPoorlaunch,poorresourcemanagement,lowcapability,NoFrontEndLoading

l  LackinConFnuityofAccountabilityFromProjectIni=a=on/OfferStagetoExecu=onStage(RACIEssen=al)

l  PoorPlanningPlanningNotusedtocontrol-“pre6ypicture”-Notatool

l  FocusonFinancialAccounFng

Alloca=onofcostforaccoun=ng-Notcontrol.LookingbackwardsNotforwards

Summary of Key Points Planning compared with Scheduling

50% of the benefit of planning is in the planning process Strategy is Important

Problems are solved before actually starting a project Monitoring

Use a few simple measures Measure what is important Juran’s Principle: “Vital few and trivial many”

Reviewing

Look ahead to the future Facts Not Blame

Learn from experience in the present

If there is novelty

Project manage the entire lifecycle from inception

Execution initiation

Continuity of accountabilities across the entire project lifecycle

Planning & scheduling

Avoid focus on financial accountancy

Requirements Management Clarity & Priority of Objectives Business Alignment Risk & Opportunities Lessons Learned

Application of Process throughout the Lifecycle Project Execution Strategy

Business Alignment & Commitment Critical Success Factors Clarity & Priority of Objectives

Requirements Management Clarity & Priority of Objectives Stakeholder Management

Lessons Learned Risks & Opportunities Planning & Scheduling

Business Alignment & Commitment Clarity & Priority of Objectives

Topreventthecausesofprojectfailure

Thethingshighlightedinyellowcanbedirectlyinfluencedbytheprojectstrategy

1. Ignore the project environment including Stakeholders 7. Never admit a project is a failure

2.  Push a new technology to market too quickly

3.  Don’t bother building in fall-back options

4.  When problems occur, blame the one most visible

5. Let new ideas fall way from inertia

6.  Don’t bother conducting feasibility studies

8.  Over manage project managers and their team

9. Never conduct post-failure reviews

10. Never bother to understand projects trade-offs

11.  Allow organisational expediency and disagreements to dictate crucial project decisions

12.  Make sure the project is run by a weak leader

WhatdidtheMillenniumDomebecome?

TheO2ArenawasconsideredhighlySuccessful

ButwhathappensifstakeholderexpectaFonsdiffer?

Factor6intheCIFTERcomplexitymodelis:

“Stakeholderalignmentregardingthecharacteris=csoftheproductoftheproject”

QuesFonIfstakeholdershavedivergentobjec=ves,

cantheprojectbe“Successful”?

Crawford-Ishikura Factor Table for Evaluating Roles

CIFTERPROJECTCOMPLEXITYMODELProject Management Complexity Factor Descriptor and Points

1. Stability of the overall project context Very High (1) High (2) Moderate (3) Low/Very Low (4)

2. Number of distinct disciplines, methods, or approaches involved in performing the project

Low (1) Moderate (2) High (3) Very High (4)

3. Magnitude of legal, social, or environmental implications from performing the project

Low (1) Moderate (2)

High (3) Very High (4)

4. Overall expected financial impact (positive or negative) on the project’s stakeholders

Low (1)

Moderate (2) High (3) Very High (4)

5. Strategic importance of the project to the organization or organizations involved

Very Low (1) Low (2) Moderate (3) Very Low (4)

6. Stakeholder cohesion regarding the characteristics of the product of the project

High (1) Moderate (2) Low (3) Very Low (4)

7. Number and variety of interfaces between the project and other organizational entities

Very Low (1) Low (2) Moderate (3) High/Very High (4)

UsedtoclassifyProjectComplexitySelec=onofProjectManagerbasedontheComplexity

UncertaintyKaleidoscope

Saunders,F.,Gale,A.W.,Sherry,A.(2016)Mappingthemul=-faceted:Determinantsofuncertaintyinsafety-cri=calprojects,Interna=onalJournalofProjectManagement,34(2016)1057–1070

ImportanceofDeterminantsofUncertaintybySector:NuclearandAerospace(n-30)

ThingstoRemember

•  Strategy–importantcomponents•  TheimportanceofContext•  Whyprojectsfail•  StakeholderSa=sfac=oncomparedwith ProjectMetrics:Time,Cost,Quality

•  CIFTER–ProjectComplexity•  Uncertainty–Determinantsof

QuesFons

?