Whether you’re trying to deliver a major project, improve asset sustainability or renegotiate a critical contract, if you want to achieve your objectives you need to motivate the right human action. The best way to do that? By communicating with purpose.
“Value of an item must not be based on its price, but rather on the utility which it yields” – Daniel Bernoulli
A paradox of traditional project management practices is that project success is most frequently judged through three criteria;
- on-time or schedule achievement;
- on-budget or cost achievement; and
- met requirements criteria or scope achievement;
Yet the reason a project exists is to deliver value, either as benefits or outcomes, to an organisation. So why isn’t benefits realisation consistently part of the project success criteria yet?
Understand what causes one of the major barriers to contract performance — and how you can break it.
The goal of doing things through contract is for two parties to achieve their shared and individual goals more effectively than they could on their own. But when independent parties are engaged in a performance exchange, they each bring their own unique context. If either party lacks understanding of their partner’s context, it creates a major barrier to shared performance. We call it “The Context Barrier”.
Topics: Contract Performance
Projects fail — a lot. Nearly half of all projects fail to meet time, cost and quality requirements. Eighty-four percent of projects don’t meet all success criteria and 9 in 10 projects go over budget. In fact, only 2% of organisations don’t experience any kind of project failure (Standish Group; McKinsey; PwC).
In the last 20 years, organisations – both public and private – have invested heavily in improving their capability to deliver projects. Yet project success rates have only improved by 10% or less. Having a PMO isn’t a silver bullet either – they only reduce the failure rate by 8% (PMI).
Over the same period, ‘projectisation’ has continued to gain prominence as a means of delivering core elements of business strategy.
It stands to reason then, that if you’re delivering your strategy though projects, your Project Delivery System is either a competitive constraint or a competitive advantage. And the way yours works can be a key driver of success (or not).
Topics: Project Performance
Helmsman recently worked with an Australian resources company with international operations in remote and inhospitable environments.
Effectively managing operations ‘in the field’ is an essential part of this business. Managing their equipment and assets, and ensuring operational efficiency on-site has a direct effect on financial results.
“If I were given one hour to save the planet, I would spend 59 minutes defining the problem, and one minute resolving it” – Albert Einstein
These words aptly represent the problem that exists with the traditional view of project controls - a parochial focus on the Delivery or Implementation stage of a project.
While project delivery is key to realising the value of a project, creating the value occurs primarily in the early stages of a project, and well before delivery gets underway.
Similarly, research suggests that cost of getting the early stages wrong, such as misdiagnosing the business problem, is up to 10 times costlier to an organisation than project implementation failures. In Australia, inaccurate understanding of requirements is the #1 primary cause of project failure (PMI, 2018).
Our thanks to all who participated and shared at the Victorian Major Projects Conference in Melbourne last week.
Victoria certainly has some exciting and innovative projects in the works, and a passionate community engaged in delivering them.
We were delighted to be part of this event, and to have Andrew Wegener share our learning on driving project performance.
If you'd like a copy of his presentation, you can get it here.
Explore our refreshed case study library, with the stories of organisations we’ve worked with to navigate complexity, achieve project performance, and transform businesses.
Project complexity is most commonly considered by organisations on a project-by-project basis. This is important as the drivers of complexity are often defined by the unique challenges the project sets out to overcome.
However, the Project Management Office (PMO) can play a critical role in extending their organisation’s capability to successfully handle complexity. Common PMO goals include raising project success rates, effective portfolio planning, growing capability through access to specialist resources, providing cost savings through standardization, and improving project schedule and budget achievement.
The PMO’s view - of multiple projects from the past, those in-flight, and in the pipeline, across different business areas and project types, with qualified success rates - allows PMO’s to make five significant contributions to conquering complexity: