Mega Project Success Mega Project Success FactorsFactors

byby

Sue DyerSue Dyer

Project Management InstituteProject Management Institute

of the Bay Areaof the Bay Area

April 14, 2005April 14, 2005© Sue Dyer, 2005© Sue Dyer, 2005

NASA’s Vehicle Assembly NASA’s Vehicle Assembly BuildingBuilding

One of the World’s Largest One of the World’s Largest BuildingsBuildings

The VAB's interior volume The VAB's interior volume is so vast that it has its is so vast that it has its own weather system. own weather system. NASA employees report NASA employees report that rain clouds form that rain clouds form below the ceiling on very below the ceiling on very humid days. humid days.

How’s The Weather How’s The Weather On Your Project?On Your Project?

Denver International AirportDenver International Airport Hong Kong AirportHong Kong Airport The “Big Dig” in BostonThe “Big Dig” in Boston

What Is A Mega Project?What Is A Mega Project?

Denver International AirportDenver International AirportChannel TunnelChannel Tunnel

3 Gorges Dam3 Gorges Dam““Big Dig” BostonBig Dig” BostonHong KongHong KongInternational AirportInternational Airport

Storebaelt Storebaelt Transport LinkTransport Link

Projects That Are Very, Projects That Are Very, Very LargeVery Large

$500 million - $1 billion +$500 million - $1 billion +

Possible Lines of Possible Lines of Communication Grow Communication Grow

ExponentiallyExponentially

1

3

6

120

2 People2 People

3 People3 People

4 People4 People

16 People16 People

How Do You Control How Do You Control The Weather?The Weather?

Certainly the ways in which we Certainly the ways in which we currently manage large projects currently manage large projects

doesn’t work very well.doesn’t work very well.

Success Factor #n

Success Factor #3

Success Factor #2

Success Factor #1

MethodologyMethodology

What was it that the successful What was it that the successful projects had that the unsuccessful projects had that the unsuccessful ones lacked?ones lacked?

Patterns began to emergePatterns began to emergeSuccessful

Mega ProjectsUnsuccessfulMega Projects

Mega Project Success Mega Project Success FactorsFactors

1.1. Leader/OwnerLeader/Owner

2.2. Mega Project ExpertMega Project Expert

3.3. Committed and Integrated StaffCommitted and Integrated Staff

4.4. Run by Project Managers (Not Politicians)Run by Project Managers (Not Politicians)

5.5. Unique Structure and CultureUnique Structure and Culture

6.6. A Program ApproachA Program Approach

7.7. An Atmosphere of PartnershipAn Atmosphere of Partnership

8.8. Expect ChaosExpect Chaos

9.9. Integrated Activation Team (buildings)Integrated Activation Team (buildings)

1. Leader/Owner1. Leader/Owner

There is a person who is identified with There is a person who is identified with the program/project as its leader. This the program/project as its leader. This person has full authority to do whatever person has full authority to do whatever they feel is necessary for success. they feel is necessary for success.

The leader surrounds themselves with a The leader surrounds themselves with a group of the best of the best to help group of the best of the best to help execute the project/program.execute the project/program.

2. Mega Project Expert2. Mega Project Expert

There is someone on the project with There is someone on the project with several successful mega projects under several successful mega projects under their belt. They are in a leadership role, their belt. They are in a leadership role, from the beginning to the end of the from the beginning to the end of the project/program.project/program.

3. Committed and 3. Committed and Integrated TeamIntegrated Team

Individuals are personally committed to Individuals are personally committed to the success of the project (a quality the success of the project (a quality project, on-time and budget). The people project, on-time and budget). The people are handpicked for their LEADERSHIP, are handpicked for their LEADERSHIP, experience/expertise and willingness to do experience/expertise and willingness to do whatever it takes. whatever it takes.

No one can tell who are consultants and No one can tell who are consultants and who are employees.who are employees.

4. Run by Project 4. Run by Project Managers Managers

(not politicians)(not politicians)

When design and construction issues get When design and construction issues get politicized practicality and common sense politicized practicality and common sense are not available to the team. The project are not available to the team. The project needs a motto of “let the experts use their needs a motto of “let the experts use their expertise.” expertise.”

The political issues should have been dealt The political issues should have been dealt with by the time of schematic design and with by the time of schematic design and should not be a part of construction.should not be a part of construction.

5. Unique Structure and 5. Unique Structure and Culture Culture (new norms, policies, (new norms, policies,

procedures)procedures)

Pulled out and away from the normal Pulled out and away from the normal routines of their respective organizations, routines of their respective organizations, the project team members are free the project team members are free (empowered) to set new norms, policies (empowered) to set new norms, policies and procedures that they feel are needed and procedures that they feel are needed for success. for success.

The systems and mental attitude that can The systems and mental attitude that can complete a $10 million project are not the complete a $10 million project are not the same as those for a billion dollar one. The same as those for a billion dollar one. The project/program structure should project/program structure should enableenable the team, not stifle its ability to be the team, not stifle its ability to be successful.successful.

6. A Program Approach6. A Program Approach

A program of projects is highly inter-A program of projects is highly inter-related. It is not the same as one large related. It is not the same as one large stand-alone project and it cannot succeed stand-alone project and it cannot succeed by using the tools developed for managing by using the tools developed for managing a project. A new approach is necessary. a project. A new approach is necessary.

This means there needs to be new This means there needs to be new systems, procedures and tools that allow systems, procedures and tools that allow you to manage a program of projects you to manage a program of projects rather than managing project by project.rather than managing project by project.

7. An Atmosphere of 7. An Atmosphere of PartnershipPartnership

Everyone must work together toward the Everyone must work together toward the common end - a successful project. There cannot common end - a successful project. There cannot be any “CYA” or “us vs. them” - if there is you are be any “CYA” or “us vs. them” - if there is you are likely to fail. Without an atmosphere of true likely to fail. Without an atmosphere of true partnership communication will be poor, resulting partnership communication will be poor, resulting in team members and team leaders being in team members and team leaders being unaware of project issues and problems until it is unaware of project issues and problems until it is too late to solve them in a timely manner. too late to solve them in a timely manner.

This can work to sink the project. When people This can work to sink the project. When people are pointing fingers, either to take the heat off are pointing fingers, either to take the heat off themselves or to place blame, the focus is taken themselves or to place blame, the focus is taken off of the project (and off of solving the problem) off of the project (and off of solving the problem) and placed on protecting interests. This will and placed on protecting interests. This will assure project failure.assure project failure.

8. Expect Chaos8. Expect Chaos

When NASA sends a rocket to Mars it is on target When NASA sends a rocket to Mars it is on target only about 5% of the time. The other 95% of the only about 5% of the time. The other 95% of the time it is making corrections to come back on time it is making corrections to come back on target, gyroing back-and-forth. It is the team and target, gyroing back-and-forth. It is the team and team leaders who assure that the project stays team leaders who assure that the project stays focused on “Mars” (project success). focused on “Mars” (project success).

First you must have the right people who can tell First you must have the right people who can tell when the project is off course, and who are willing when the project is off course, and who are willing and able to tell you. Then, there must be a and able to tell you. Then, there must be a system in place that allows a “course correction” system in place that allows a “course correction” to get you back on target.to get you back on target.

9. Integrated Activation 9. Integrated Activation Team (buildings)Team (buildings)

A major building project is not a turnkey A major building project is not a turnkey operation. There have been several operation. There have been several notable failures due to the staff's inability notable failures due to the staff's inability to operate the new systems incorporated to operate the new systems incorporated into the building. into the building.

An integrated activation effort must be An integrated activation effort must be started early in the construction phase to started early in the construction phase to achieve buy-in and acceptance of those achieve buy-in and acceptance of those who will run and maintain the new who will run and maintain the new building.building.

San Francisco San Francisco International AirportInternational Airport

$3.5 billion project$3.5 billion project Completed on-timeCompleted on-time Opened flawlesslyOpened flawlessly Came in at 3% over bid Came in at 3% over bid

(national average on all projects is 4-5%)(national average on all projects is 4-5%)

Mega Projects Can Mega Projects Can SucceedSucceed

The old ways of managing The old ways of managing them often dooms them to them often dooms them to

failurefailure

Contact InformationContact Information

Sue Dyer

ORGMETRICS291 McLeod Street

Livermore, CA 94551

SueDyer@orgmet.com

(p) 925 449-8300(f) 925 449-0945

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