programme management consulting are your projects in control? infrastructure conference oct 2014
TRANSCRIPT
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ARE YOUR PROJECTSIN CONTROL?
Infrastructure Conference Oct 2014
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GIntroduction
• Financial background– Chartered accountant – CFO for a number of transport businesses incl.
Heathrow Airport• Involved with Project Controls for 11 years
commencing with start of T5 construction• MD of LogiKal Projects for the last 5.5 years
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‘Project controls are the data gathering, management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or program through the communication of information in formats that assist effective management and decision making.’
Definition of Project Controls
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ARE PROJECT CONTROLS IMPORTANT?
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Literature and research
‘The design of a project control system is an important part of the project management effort’ (Shtub, Bard, & Globerson)
‘Despite the continuous evolution in the project management field, it appears evident that the traditional approaches still show a lack of appropriate methodologies for project control’ (De Falco & Macchiaroli)
‘Project performance can be improved if more attention is given to the issue of control (Avison, Baskerville, & Myers)’
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Where you REALLY need Project Controls?
High level of innovationNo experience of similar
projectsNon-aligned stakeholders
Multiple parties involved
Inherent uncertainties
Rapidly changing environment
Difficult project interfaces
Complex dependencies
Hard to measure progress
Understanding the risk too late!
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Project Controls through the Lifecycle
Too many projects failPoor management control is the biggest cause
Management of stakeholders
Capturing requirements
Allowing realistic costs to meet
needs
Moving forward without capturing success conditions
Getting the optimum solution – balancing design
and delivery
Adequate design for procurement
Best value supply chain
Integrated planning
Working to the plan
Control of execution risks
Controlling change
Measurement of performance +
Intervention
Quality management
Handover preparation
lifecycle
To get the value out of a project management control MUST be strong
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Investing in a Project Controls solution
Investment
Confidence
People Process Systems
Earlier Intervention
Reduced Risk
Improved Delivery Efficiency Returns / Business Case
Benefits:
Hard benefits – based on target improvements in efficiency and reduced risk
Soft benefits – organisation capability / confidence in outcome.
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GProject Controls Solution
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The Process Dimension
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GProcesses
• Project Controls is about operating good processes effectively– Good, workable processes are key
• Integration of processes needed to ensure all dimensions of the project work together– Test the logic flows in theory and in practice
• Training • Monitoring compliance / Assurance
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Getting the right processes
Requirements/Scope Mgmt.
Schedule Mgmt. Cost Mgmt. Risk Mgmt.
Performance Measurement Baseline (PMB)
Change Mgmt.
Current Plan
Performance Measurement
Integrated Baseline Review
Performance Management
Assurance Framework
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The Systems Dimension
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Systems
Requirements Mgmt.
EstimatingSchedule
ManagementCost Management Risk Control
Earned Value Analysis
Contract Management
ChangeManagement
Issue TrackingPerformance
AnalysisManagement
ReportingForecasting
Actual cost capture
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GProject Control Systems
• Systems are servants of the process – not the other way around
• Fit systems around a well designed solution– Critical to get ‘buy in’ to the model
• ALIGN CODING !!!• Data model
– Invest properly in designing the data model– Integrity of data is everything – its absence destroys
confidence• Integrate the tools around the operating solution• Don’t think you are saving money when using Excel !
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The People Dimension
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• A strong individual who believes in the importance of project controls
• Will fight for it and influence others• Sets realistic goals and expectations• Elevates the status of Project Controls
professionals– Attracts good people– Trains and inspires them
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GTeam
• Attract top talent• Blend the skills
– Technical– Non-technical – communication and influencing skills often
outweigh technical capability• Develop a Competency Framework – use it as a basis for
developing the capability• Recognise status of the professionals• DON’T:
– Use low grade project managers / engineers– Expect to buy in resource without properly integrating it into
your management
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What gets in the way?
Scenarios to avoid / overcome!
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Example one:Enthusiastic lip service
Scenario• Senior management want to improve
control environment• Enthusiasm for using dashboard / EV
measures at senior level• Fail to invest in the level of capability
change needed at operating level• Solution is not mature and
suboptimal in value
Underlying causes• Lack of investment funds• Don’t understand requirements• Organisations culture reluctant to
accept the change.
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Example two: Disconnected Function
Scenario• Enthusiastic team in the
organisation pushing project controls agenda
• Struggling to get recognition and support
• Function lacks authority in the organisation
Underlying causes• Competing management
priorities – absence of leadership
• Lack of understanding / differing views on value of controls
• Turf wars with related functions• Communication
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Example three:Process Zoo
Scenario• Immature process set• Standard processes not clear or
not followed• Everybody does it their way• Poor disciplines observedUnderlying causes• Too many cooks – everyone has
their way of doing it• Poor process integration• Processes too academic and
impractical• Failure to train and embed• Low consequence for non
adherence
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Example fourAll you need is love Excel
Scenario• Simplistic tools created rapidly• Data handling is unreliable• Poor integration with key
management systems• Demotivated team• Weak controlUnderlying causes• Rush to do things quickly• Familiarity with the software• Implementation cost
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1) Major Project Clients are requiring more capability in Project Controls
Recent Trends
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2) Systems – are getting more integrated
Recent Trends
Subcontractor Schedules
Integrated Schedules
Actual Costs
Status Updates
Change Requests
Risk Registers
Schedule Health Checks
Risk Reviews
Project Status Reports
Client Status Reports
Change Meetings
Logistics Reports
Portfolio Reporting
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3) Career – Project Controls becoming a career of choice
Recent Trends
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4) Move away from Fixed Reporting in favour of Data Mining / Business Intelligence
Recent Trends
Better Decisions Through Targeted Discovery
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GAnymore Questions? Find us on our stand!