Jay Armstrong's presentation looks at the current situation of project success, how project complexity feeds into this and the three critical success factors in the delivery of major programmes.

1. 3 Critical Success Factors
in the delivery of major
programmes
Jay Armstrong
Principal Consultant, LogiKal

2. Introduction
Jay Armstrong
Principal Consultant
Principal Consultant at LogiKal
Over 15 years experience in major project delivery
Rail, Water, Mining, Oil and Gas, Infrastructure
UK, Australia, Canada

3. Why are projects failing?01
Project complexity02
3 Critical success factors03
Outline
04 Summary and questions

4. Why are projects
failing?

5. What is the current situation?
Percentage of Projects Reported as Achieving Most or All Cost / Time /
Scope Objectives

6. Why are projects failing?
Statistics
A National Audit
Office Report showed:
A history of "unrealistic expectations
and over-optimism”.
35% of projects due to be completed in
the next 5 years are “unachievable” or
“in-doubt” by government bodies.

7. “I think the enormity and complexity of Crossrail in all
manners: the stations; the trains; the signaling systems;
the software integration; the control systems; the
interface with Network Rail; the truth is that the
complexity was not fully understood,”
Why are projects failing?
Crossrail
Mark Wild, Crossrail Chief Executive
New Civil Engineer – February 2019 edition

8. Major Project
Complexity
What makes a project complex?

9. Project Complexity
Major Projects are inherently complex
Often multidisciplinary
Numerous stakeholders
Mostly brownfield construction
Multiple interfaces
Complex logistics
Technological advances
Increasing number of requirements

10. HS2 is Europe’s largest
infrastructure project
Project Complexity
HS2

11. Interfaces of project delivery
Project Complexity
Thames Tideway Tunnel

12. Project Complexity
Hinkley Point C - EDF
Image source: EDF Energy – Hinkley Point C website
Two new nuclear
reactors at Hinkley
Point C in Somerset
Electricity for around
six million homes.

13. Complexity compounds the likelihood
and impact of risk
• Increased interfaces often not
appreciated
• Scope and integration requirements
often not well understood
How does complexity impact construction?

14. • Increases the likelihood of change over the lifecycle of the project
• Increased programme risk
• Increased commercial and cost risk
• Project benefits may be watered down or impacted
• cost engineering exercises reducing value/benefits
• Future investments may be delayed
How does complexity impact construction?

15. 3 Critical Success
Factors:
• Organisational Complexity
• Risk Transfer & Incentivisation
• Performance Management

16. 1. Organisational Complexity
Organisational Complexity
Way we deliver projects & programmes creates complexity
Capital
Programmes
Alliancing
models
SPVs
Programme/
Delivery
Partner
PPPs / PFIs EPC
Traditional
Design &
Build
Joint
Ventures
Delivery
Structures
Project 13 –
Integrator

17. Organisational Complexity
The Challenges
oConfrontational client vs contractor approach
oNon-integrated teams
oUnclear roles and responsibilities
oDuplication of effort
oMisalignment between collaboration intent and the conditions of
contract
oBehavioural and cultural alignment

18. Critical Success Factor
Organisational Complexity
Select the right organisational model

19. 2. Risk Transfer & Incentivisation
Risk transfer & Incentivisation

20. Risk Transfer & Incentivisation
The Challenges
oVariety of contract forms
oExpectation of risk transfer
oContract used as a weapon
oTraditional risk mitigation techniques increase complexity
oMisalignment between incentivisation model and ‘best for project’
oDifficult to identify, quantify, model and manage effectively

21. Critical Success Factor
Risk transfer & Incentivisation
Proper Incentivisation
o Use Contract as a tool not a weapon
o Need to change the embedded industry culture

22. 3. Performance Management
Performance Management

23. Performance Management
Performance Management: The challenges
oContract requirements becoming more prescriptive
oExpectations increasing
oMultiple audiences
oKPIs, KPIs, KPIs
oVolume of data
oCognitive overload

24. Critical Success Factor
Performance Management
Integrate data with a purpose

25. Timely, reliable and
transparent data can
increase trust and
empower your decision
making.
Performance Management
Per for mance Management: The Solution

26. Summary

27. Summary
3 Critical Success Factors
ONE
Select the
right
organisational
model
TWO
Proper
incentivisation
THREE
Integrate data
with a
purpose

28. Q&A