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What are the most common control failures leading to project failure?

Enrique UgartePartner, Helmsman International

Best Practice Project Controls

C ONQU E R E DCOMPLEXITY© Helmsman International Group Pty Ltd 2017 2

A number of years ago we set out on a Journey….

….tounderstandwhysomeorganisationscansuccessfullydelivercomplexprojects,Butotherorganisationsstruggletodelivereventhemoststandardprojects.

TheHelmsmanComplexityScale

HowComplexisYourProject?


We did a lot of research….what did we discover?

ProjectControls


We mapped project complexity against project performance


…and as expected, the industry mapping looks like this!


We thought an individual Organisational view would look like this

OrganisationalView


But it doesn’t…, it looks like this!

OrganisationalView


We call this the “Complexity Cliff”

Organisations have a complexity tipping point beyond which project competency and control systems under-perform and leads to project failure


Where is Your Complexity Cliff?

Our research shows that projects high on the Helmsman Scale have a different way of thinking and operating


Helmsman Project Controls Benchmarking


This research has been translated into a toolkit and approachthat helps projects understand which controls they need in place

0 1 2 3 4 5 6 7 8 9 10

ApproachUncertainty- Familiarity of implementation approachAssumptionUncertainty- confidenceofcr iticalassumptions being…

Breadthof Assumptions - numberofcriticalassumptions dependent…CostEstimation- certaintyofprojectcosts

LevelofAccountabilityRiskDistr ibution

RiskDistr ibution - part1RiskDistribution- spreadRiskDistribution- transfer

StakeholderAlignmentConstraints(time/cost/Quality)

ContractingMechanism- complexity/intricacyof…Experienceofprojectteam

FinancialLens(spend)- Total BudgetFinancialManagement Complexity

NumbersofTasks inthecorescheduleProjectJourney- multithreading&parallelactivitiesintegrated

ResourcingComplexity (Access)- DifficultyinresourcingResourcingComplexity(structure)- requiredresourcestructures

Rollout- coordinationofdifferentaspects inrolloutScheduleSize- numbersofmajormilestones/deliverables

Size- NumbersofFTE's resourcedontheprojectSize- ProjectTeam- NumbersofFTE'sresourcedontheprojectSize(overall)- FTE'sresourcedtoproject(Suppliers&broadly…

Structure(Layers)- Complexityofmanagement structureStructure(Locations)- ComplexityofGeographicLocations

Timeframes- projectdurationVariation - NumberofdifferentsolutionsrequiredBreadthof Change- Howdifferentarethecultures

BreadthofChange- impactacrossculture/viewpointsCrossDisciplinary

DepthofChange - personal/psychdifficultyforrecipientsDepthofChange- personal/psychdifficultyforthose impacted

MultidisciplinaryImpactonInfrastructure- SizeandImpact ofinfrastructurechange

SystemComplexitySystemIntegration- Numbers(complexity/intr icacysystem interfaces

SystemIntegration Complexity- Coupling- inter facehandshake…SystemIntegrationComplexity- Fidelity - ErrorRate Level

SystemIntegration Complexity- Invasive- ChangeacrosstheinterfacesSystemIntegration Complexity- realtime - interfacesintegration

SystemSize

Ambiguity

Context

Projectmanagement

Social

Technical

TN4 FactorID TN2 FactorID TN3 FactorID TN5 FactorID TN8 FactorID TE3 FactorID TE4 FactorID27% 1005 TN2 28% 1005 TN3 40% 1005 TN5 35% 1005 TN8 33% 1005 TE3 50% 1005 TE4 49% 1005 TE219% 1006 TN2 26% 1006 TN3 37% 1006 TN5 32% 1006 TN8 30% 1006 TE3 43% 1006 TE4 47% 1006 TE224% 1007 TN2 27% 1007 TN3 38% 1007 TN5 38% 1007 TN8 36% 1007 TE3 53% 1007 TE4 50% 1007 TE217% 1008 TN2 44% 1008 TN3 30% 1008 TN5 27% 1008 TN8 18% 1008 TE3 45% 1008 TE4 55% 1008 TE29% 1009 TN2 42% 1009 TN3 26% 1009 TN5 22% 1009 TN8 16% 1009 TE3 46% 1009 TE4 51% 1009 TE219% 1010 TN2 45% 1010 TN3 27% 1010 TN5 29% 1010 TN8 25% 1010 TE3 50% 1010 TE4 57% 1010 TE219% 1011 TN2 45% 1011 TN3 38% 1011 TN5 29% 1011 TN8 25% 1011 TE3 49% 1011 TE4 58% 1011 TE218% 1012 TN2 27% 1012 TN3 26% 1012 TN5 28% 1012 TN8 31% 1012 TE3 41% 1012 TE4 47% 1012 TE221% 1013 TN2 27% 1013 TN3 26% 1013 TN5 28% 1013 TN8 34% 1013 TE3 39% 1013 TE4 48% 1013 TE214% 1014 TN2 36% 1014 TN3 38% 1014 TN5 32% 1014 TN8 31% 1014 TE3 58% 1014 TE4 61% 1014 TE219% 1015 TN2 40% 1015 TN3 34% 1015 TN5 38% 1015 TN8 30% 1015 TE3 54% 1015 TE4 57% 1015 TE215% 1016 TN2 41% 1016 TN3 41% 1016 TN5 36% 1016 TN8 30% 1016 TE3 50% 1016 TE4 57% 1016 TE210% 1017 TN2 38% 1017 TN3 35% 1017 TN5 34% 1017 TN8 30% 1017 TE3 52% 1017 TE4 54% 1017 TE212% 1018 TN2 27% 1018 TN3 30% 1018 TN5 23% 1018 TN8 24% 1018 TE3 46% 1018 TE4 52% 1018 TE212% 1019 TN2 29% 1019 TN3 33% 1019 TN5 20% 1019 TN8 21% 1019 TE3 47% 1019 TE4 53% 1019 TE211% 1020 TN2 28% 1020 TN3 31% 1020 TN5 17% 1020 TN8 19% 1020 TE3 46% 1020 TE4 52% 1020 TE212% 1021 TN2 31% 1021 TN3 33% 1021 TN5 42% 1021 TN8 39% 1021 TE3 67% 1021 TE4 57% 1021 TE233% 1022 TN2 38% 1022 TN3 45% 1022 TN5 50% 1022 TN8 48% 1022 TE3 62% 1022 TE4 67% 1022 TE230% 1023 TN2 35% 1023 TN3 38% 1023 TN5 52% 1023 TN8 52% 1023 TE3 64% 1023 TE4 65% 1023 TE233% 1024 TN2 37% 1024 TN3 43% 1024 TN5 50% 1024 TN8 48% 1024 TE3 61% 1024 TE4 67% 1024 TE229% 1025 TN2 35% 1025 TN3 39% 1025 TN5 47% 1025 TN8 44% 1025 TE3 59% 1025 TE4 62% 1025 TE233% 1026 TN2 36% 1026 TN3 40% 1026 TN5 48% 1026 TN8 47% 1026 TE3 58% 1026 TE4 63% 1026 TE233% 1027 TN2 37% 1027 TN3 45% 1027 TN5 49% 1027 TN8 46% 1027 TE3 61% 1027 TE4 64% 1027 TE235% 1028 TN2 37% 1028 TN3 44% 1028 TN5 51% 1028 TN8 48% 1028 TE3 62% 1028 TE4 67% 1028 TE233% 1029 TN2 36% 1029 TN3 44% 1029 TN5 45% 1029 TN8 43% 1029 TE3 57% 1029 TE4 62% 1029 TE233% 1030 TN2 37% 1030 TN3 42% 1030 TN5 47% 1030 TN8 45% 1030 TE3 59% 1030 TE4 63% 1030 TE232% 1031 TN2 35% 1031 TN3 39% 1031 TN5 42% 1031 TN8 39% 1031 TE3 61% 1031 TE4 63% 1031 TE229% 1032 TN2 38% 1032 TN3 45% 1032 TN5 41% 1032 TN8 38% 1032 TE3 60% 1032 TE4 68% 1032 TE233% 1033 TN2 38% 1033 TN3 44% 1033 TN5 40% 1033 TN8 37% 1033 TE3 60% 1033 TE4 65% 1033 TE235% 1034 TN2 36% 1034 TN3 41% 1034 TN5 49% 1034 TN8 47% 1034 TE3 66% 1034 TE4 66% 1034 TE218% 1035 TN2 32% 1035 TN3 33% 1035 TN5 29% 1035 TN8 31% 1035 TE3 49% 1035 TE4 51% 1035 TE213% 1036 TN2 32% 1036 TN3 27% 1036 TN5 31% 1036 TN8 23% 1036 TE3 54% 1036 TE4 43% 1036 TE210% 1037 TN2 35% 1037 TN3 45% 1037 TN5 27% 1037 TN8 27% 1037 TE3 52% 1037 TE4 59% 1037 TE220% 1038 TN2 39% 1038 TN3 46% 1038 TN5 24% 1038 TN8 25% 1038 TE3 53% 1038 TE4 63% 1038 TE219% 1039 TN2 38% 1039 TN3 41% 1039 TN5 22% 1039 TN8 22% 1039 TE3 50% 1039 TE4 60% 1039 TE219% 1040 TN2 47% 1040 TN3 36% 1040 TN5 29% 1040 TN8 26% 1040 TE3 55% 1040 TE4 58% 1040 TE220% 1041 TN2 40% 1041 TN3 27% 1041 TN5 31% 1041 TN8 20% 1041 TE3 49% 1041 TE4 49% 1041 TE219% 1042 TN2 32% 1042 TN3 43% 1042 TN5 17% 1042 TN8 17% 1042 TE3 46% 1042 TE4 57% 1042 TE221% 1043 TN2 42% 1043 TN3 37% 1043 TN5 30% 1043 TN8 28% 1043 TE3 47% 1043 TE4 48% 1043 TE27% 1044 TN2 23% 1044 TN3 36% 1044 TN5 26% 1044 TN8 13% 1044 TE3 22% 1044 TE4 18% 1044 TE24% 1045 TN2 28% 1045 TN3 12% 1045 TN5 6% 1045 TN8 3% 1045 TE3 22% 1045 TE4 22% 1045 TE27% 1046 TN2 27% 1046 TN3 11% 1046 TN5 3% 1046 TN8 1% 1046 TE3 24% 1046 TE4 22% 1046 TE26% 1047 TN2 26% 1047 TN3 7% 1047 TN5 7% 1047 TN8 2% 1047 TE3 20% 1047 TE4 19% 1047 TE20% 1048 TN2 42% 1048 TN3 27% 1048 TN5 23% 1048 TN8 13% 1048 TE3 35% 1048 TE4 43% 1048 TE28% 1049 TN2 43% 1049 TN3 25% 1049 TN5 31% 1049 TN8 22% 1049 TE3 43% 1049 TE4 46% 1049 TE214% 1050 TN2 29% 1050 TN3 55% 1050 TN5 21% 1050 TN8 26% 1050 TE3 49% 1050 TE4 61% 1050 TE28% 1051 TN2 22% 1051 TN3 29% 1051 TN5 16% 1051 TN8 19% 1051 TE3 32% 1051 TE4 35% 1051 TE2

Complexity Algorithm Controls


Insufficient controls is a predictive indicator of project performance

• A home grown Australian innovation

• Empirical data, not consulting opinion

• Avoids the politics & cuts to the heart of the matter

• 20-40% cost reduction or value uplift

• 1,000 Projects across multiple industry sectors

Helmsman Project Performance Diagnostic (PPD)


How does it work?

HowdifficultismyProject?

ComplexityBenchmark

ControlsBenchmark Report

PROJECTPERFORMANCEDIAGNOSTIC(PPD)

Whatdidotherprojectslikeminedotobesuccessful?

WhatcontrolsdoIneedtoputinplace?

+ =


Controls are grouped into 8 primary domains, and considers 172 factors

1. Executive AlignmentAlignment 9Governance 9Ownership 7

1. Executive Alignment Total 25

3. Scope ControlRequirements Management 10

3. Scope Control Total 10

2. Value ManagementAmbiguity Resolution 8Measurement Systems 15Outcome Definition 4

2. Value Management Total 27

4. End State DesignBusiness Operating Model 3Execution Operating Model 4

4. End State Design Total 7

5. Execution PlanningBusiness Solution 7Execution Solution 15

5. Execution Planning Total 22

6. Delivery ManagementBudget Management 3People Management 11Schedule Management 12Supplier Management 5Technical Management 7

6. Delivery Management Total 387. Stakeholder Mobilisation

Change Management 8Mobilisation 4

7. Stakeholder Mobilisation Total 12

8. Governance & RiskContextual Risk Management 10Issue Management 9Project Risk Management 12

8. Governance & Risk Total 31


With a view of ‘Soft’ and ‘Hard’ Controls


Allowing assessment of controls maturity by domain

1.ExecutiveAlignment

2.ValueManagement

3.ScopeControl

4.EndStateDesign

5.ExecutionPlanning

6.DeliveryManagement

7.StakeholderMobilisation

8.Governance&Risk

ControlsIm

portance

CurrentPerformance

PossiblePerformance

Gap


And benchmark evaluations across 172 factors


To identify opportunities for improvement within each domain


And understand key gaps


All built off hard empirical data, not subjective opinion

100 page report providing in-depth statistics and analysis on your project complexity and controls


What are the most common control failuresleading to project failure?


• Focussed on the front end of the project rather than the back end of the project

• Orientated around people and behaviour rather than tools and methods

• Driving alignment and agreement rather than accuracy and correctness

Interesting to note that they tend to be….


The most common control failures leading to project failure


Like to know more?

• Download the Research White Paper from our website

• Keep an eye on our blog, Complexity ConqueredWe regularly publish our latest insights & learnings, focused on understanding and managing significant and complex projects.

• Call or email to arrange a complementary initial discussionHelmsman’s Project Consulting practice has deep research-backed experience in understanding both the complexity of specific projects and identifying the Complexity Cliff in organisations; and developing approaches to ensure capabilities and controls appropriate to your needs are developed and maintained.

E:[email protected]:(02)99227069W:helmsman-international.com


Project Phase Summaries

DEFINITION

ProblemDefinition:Weknowtheminimumsetofthingsthatexplainthelackofperformance.

ValueDrivers:Weknowthekeyvaluedriversandcascadedoutcomes

MeasuresofSuccess:Theperformancegapsarebaselined & quantified

ValueManagement:Wecantrackourprogress&proximitytotheOutcome

Commitment:TheClientiscommittedtosolvingtheproblems

DESIGN

LeanSolution:Wehavedefinedthemostsimple,lowestrisksolution

OperatingModel:TheEnd-Statedesignisorganisationallyenduring

ExecutionDesign:Wehavearoadmap;solutionapproach,releaseplanandimplementationplan

GovernanceModel:KPI’s, Accountabilities,Decisionrights&Jurisdictionsareset

ConditionsforSuccess:Allpotentialshowstoppershavebeenagreedandaddressed

DELIVERY

DesignAuthority:Weareprovidingclarityandenablingimplementation

Ownership:FieldLeadershiphastakenOwnershipoftheBusinessOutcome

Mobilisation:Changeagents&recipientsareinaction&outcomefocussed

Adoption:Thechangesarebeingrolled-outandaccepted.

DeliveryOversight:Weareoverseeingdeliveryperformance andmanagingtheissues

DIRECTION

ContextManagement:Wegetthepictureandweknowwhat’sgoingon

ExecutiveVision:TheExecsconceptuallyagreewhat‘success’looks/feelslike

BusinessOutcome:WehavedefinedandagreedtheOutcome

CaseforAction:Weknowourtrajectoryandwhywecan'tstayhere

ExecutiveAlignment:TheExecsarealignedaroundtheOutcome

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