The document outlines best practices in project management and obstacles to delivering mega projects. It discusses defining projects and mega projects, key activities that should be managed in projects, and reasons for project failure. It emphasizes the importance of professional project management using approaches like PMI and PRINCE2. Establishing a Project Management Office (PMO) can help standardize processes and improve success rates by increasing capabilities and changing culture. The Government's PMO initiative may help overcome obstacles to mega project delivery in Saudi Arabia.

1. Addressing the challenges of
delivering Mega Projects
DR. MOHAMMED ALALSHIKH, PHD, PMP, AVS
CERTIFIED MOR, MSP & PRINCE2 PRACTITIONER
SAUDI MEGA PROJECTS CONFERENCE 2015, RIYADH
1

2. Outlines
q Introduction,
q Best practices in project management
q Obstacles that hinder deliveringmega projects
q Lessons learnt from mega project management & Recommendations
q The Government’s PMO initiative
q Conclusions
2

3. Definitions
A project is temporary organisation that is created for the purpose of
delivering one or more business outputs according to a specified business
case.
A mega project is an extremely large-scale investment project, and is
typically defined as costing more than US $1 billion and attracting a lot of
public attention because of substantial impacts on communities, environment
and budgets.
Mega projects can also be defined as "initiatives that are physical, very
expensive, and public”. (Wikipedia,2015)
3

4. Activities that should be managed in
the project
v Scope: What is the project? And how is it defined?
v Procurement: Which kind of contractual and organisational route will be
used?
v Planning and progress: Analyse the project and set a plan of action to
therefore control its progress.
v Time: Identifya project timetable and how it will be implemented.
v Cost: What is the budget and how will it be managed?
v Quality: Determinationof standards and their observance.
v People: Individual managers and project teams.
v Risk: What are the risks, who carries them, and how can they be avoided or
mitigated? (Woodward, 1997)
4

5. Ability to change
10/3/2010 5
Client value stair Client values pyramid
Clientsatisfaction
VM/VE
interventions Value steps
Peak of client satisfaction
Project performance
specifications and project brief
Project designs and
technical solutions
Project
construction
Project strategic fit and strategic brief
Abilitytochangedecreases
VE4
VE3
VM2
VM1
Changecostincreases
Ref.:
(Alalshikh,
2010)

6. Project failure
6
q According to the Standish CHAOS Report (2009):
q 68% of software projects do not meet time/cost/scope targets.
q Only 32% of projects were completed on time, within budget
and delivered measurable business and stakeholder benefits.

7. Project failure reasons
q There are many reasons for such failures. As per a PricewaterhouseCoopers
survey of 1,524 organizations:
Ø inadequate project estimating andplanning constitutes 30% of project failures,
Ølack of executive sponsorship constitutes 16% ,
Øand poorly defined goals andobjectives constitutes 12%.
ØAlso it found that using established project management approaches increased
success as measured by a project's key performance indicators of quality, scope,
schedule, budgets and benefits,
ØThe survey indicates that operating an established PMO is one of the top three
reasons that drives successful project delivery.
7

8. Causes for project failure
1. Ambiguous client objectives and brief.
2. Lack of understanding of team roles, responsibilitiesand competencies.
3. Poorly thought out management structures, lines of authority and communication.
4. Funding and business issues including changing market circumstances.
5. Sub-optimal information release, decision-making in terms of timing and adequacy.
6. Third party influences.
7. Difficulties obtaining satisfactoryplanning and statutory approvals.
8. Troubles during construction suchas site issuesand the weather or ground conditions.
9. Unresolved design issues.
10. Contractor capability and solvency.
11. Operational faultsafter handover.
12. Natural or manmade disasters (force majeure) (Dallas, 2004) .
8

9. Mega project management
q Projects failure can be attributedto different reasons as mentioned
before. Lack of experience and knowledge in professional project
management is one of the main reasons.
q Abundance of mega projects in Saudi Arabia stipulates:
Ø Initiating PMO in organisations, which will ground the rules for project
management and enhance project managers capabilities.
ØApplication of project management best practices is essential, in order to
deliver success projects. Otherwise, projects will fail to meet client values
and end users requirements.
q The Government’s PMO initiative will contribute in overcoming
these obstacles.
9

10. Best practices in project management
q Professionalismis crucial to conduct projects successfully
q Examples of best practices:
q Project management using PMI approach (PMP) or APM approach
(PRINCE2),
q Programme management, e.g. MSP (APM approach or PMI methodology),
q Initiating P3O or PMO,
q Etc.
10

11. Portfolio/ Programme/ Project
Management Office (P3O/ PMO)
q Project management office (PMO) is a group or department that develops, maintains
and promotes project management standards within the organisation. It standardizes
project management processes, tools, techniques, reports, forms and templates.
q It is a strategic driver for organisational excellence,
q It improves organisationproject management capabilities and increasessuccess in
implementing projects,
q It offers continuous improvements of project management infrastructure based on
improving capabilities and changing organisational culture towards project management
maturity model,
q It is the source of documentation, guidanceand metricsin practice of project
management and execution.
11

12. Benefits achieved using the PMO
q Stronger collaboration between projects and knowledgesharing
q Managing shared resources across all projects
q Developing project management methodology, best practices, policy, and
standards
q Developing and managing project, procedures, tools, techniques,
templates, forms and other shared documentations
q Managing Risk and Issues at a programme level by allocating dedicated
specialist in the PMO to deal with particular risks and Issues – avoids
duplication
q Prototype design approval in one project, is cascaded to other similar
project to speed up the approval process
12

13. Benefits achieved using PMO
q Share lessons learnt across all projects, to avoid problem repeating other
projects
q Manage dependencies across projects effectively and efficiently, by
implementing a programme schedule
q Compare progress and performance across projects, and investigating
common delays and bottlenecks
q Coordinating communication across projects
q Assigning, qualifying and mentoring project managers through a defined
career path
q Establish a project review function (auditing and health check)
q Save project managers time by supplying them with forms, template, tools
and techniques.
13

14. 14
Portfolio, programme & project

15. PMO benefits
q Programme Policies & Procedures
q Programme Schedule
q Dependencies Log
15

16. PMO benefits
q Risks & Issues management
16
Program Issue Register - November 2014
Risk ID# Project
Name
Category Brief Risk Description Risk Impact Mitigation Actions / Risk Response Probability
Level
Impact
Level
Calculated
Risk
(automated
)
Status Entry Date Planned
Resolution
Date
Update / Comments
3 SFMCP
-­‐
J TIMING
Missing
NOC's
(leading
to
missing
building
permits
and
future
utility
connections)
has
prevented
construction
start
and
could
delay
project
completion
Project
Delay
MOI
need
to
issue
official
letters
to
relevant
Local
Authorities
per
"NOCs
list
included
in
contractor's
monthly
report"
,
as
early
as
possible
High Very
High 20 Open 30-­‐Sep-­‐13 31-­‐Dec-­‐14 Mitigation
Plan
reviewed
on
Oct
2014
6 SFMCP
-­‐
J COST
Potentially
reduced
control
over
evaluation
of
requested
changes
due
to
revisions
of
original
BoQ
during
tender
Project
Cost
Increase
Continual
Pressure
on
SBG
to
expedite
the
submission
of
BoQ
Very
High High 20 Open 30-­‐Sep-­‐13 ASAP
Meeting
Minutes
22-­‐01-­‐2014,
our
letters
MB0B00-­‐
00LB0240/243/260,
dated
2/9/2014,
11/9/2014,
&
29/10/2014
-­‐
SBG
Letter
No
BB0B00-­‐00LM0125,
dated
6/11/2014
8 SFMCP
-­‐
JPERFORMANCE/COST
potential
Cost
implication
&
poor
equipment's
quality
due
to
Medical
equipment
list
contains
outdated
or
obsolete
equipment,
new
models
require
different
built
conditions
(regardless
of
who
buys
it)
Poor
Equipment
Quality/Project
Cost
increase
client
decided
to
hire
a
3rd
party
to
review
&
prepare
an
updated
list
,
keep
close
attention
Medium Medium 9 Open ######## 31-­‐Dec-­‐14
Highlighted
in
presentation
to
MOI
on
19/05/2014,
another
presentation
on
July
2014
mentioned
that
deadline
to
hire
the
3rd
party
is
Sept
14th
2014
9 SFMCP
-­‐
J TIMING
Contractor's
delay
in
activating
the
mobilization
and,
in
particular,
the
project
control
system
PCM
can
further
compromise
project
start-­‐up
and
efficiency.
Project
Delay
Continual
pressure
on
the
contractors
to
accelerate
the
mobilization
Medium Low 6 Open ######## 31-­‐Dec-­‐14 On
18
May
MT
sent
another
letter
to
SBG
in
breech
of
contract
11 SFMCP
-­‐
J COORDINATION
Potential
Difficult
communication
and
coordination
caused
by
lack
of
collaboration
with
Engineer's
directions
Delay
in
completing
the
activities
on
time
hence
overall
project
Delay
MT
to
keep
reminding
Contractor
for
his
contractual
obligation
&
must
conform
to
operating
procedures
Medium Medium 9 Open 30-­‐Sep-­‐13 ASAP
Program Issue Register - November 2014
Status Project
name
Project
Risk ID# /
Reference
Category Brief Issue Description Projects
Affected
Impact Description Issue Type Impact Level Mitigation Actions Entry Date Planned
Resolution Date
Current Status / Comments
Open ACC 8 Scope
Quality
of
Contractor's
Submittals
is
inadequate.
Poor
sequencing
as
in
Calculations
>
Equipment
and
Materials
>
Drawings.
Also
poor
coordination
between
trades,
e.g.
between
mechanical,
electrical
and
architectural.
Example
is
structural
drawing
approval
requested
before
lift
supplier
and
equipment
specification
approved.
WBSL-­‐1 Quality
and
Time
and
Impact High Medium
Technical
Submissions
to
agreed
standards,
sequence
and
demonstrate
coordination,
including
of
utilities
trenches
and
ducts.
Drawings
must
be
organised
,
listing
,
all
submission
clearly
identified
as
per
Submittal
Logs.
The
latter
should
be
re-­‐edited
and
updated
periodically.
22/12/13 6/26/2014
30/10/14-­‐INFO
from
MSC-­‐updated:action
Open Program 10 Scope
Changes
in
Project
site
locations
(see
also
issues
19,
33
and
39)
104
109
122
Delay
in
taking
over
the
sites Medium Medium
MOI
to
finalize
master
plans
with
final
project
site
locations
STC
Ar'ar
&
Aseer/Abha,
Infrastructure
Central
District,
STC
Jeddah
30/11/14-­‐INFO
from
MSC-­‐updated:
action
Open Program 12 Scope
New
Infrastructure
Master
plan
for
Eastern
Road
Land
and
Bersha'a
-­‐
An
integrated
storm
water
protection
for
various
project
sites
at
Eastern
Road
Land
are
required
-­‐
Water
supply,
electricity
and
Sewerage
drainage
is
required.
Asnd
Road
network
need
to
be
constructed
Zone
and
PM
Site
Utilities
and
drainage
system
will
not
be
adequate
for
completed
buildings.
Affects
sites
101,
102,
106,
110,
111,
112,
113,
119
High High
MOI
to
finalize
Infrastructure
centralization
activities
for
Eastern
Road
Land
and
Bersha'a
as
soon
as
possible
and
in
the
meanwhile
give
clear
indications
4/9/14-­‐INFO
from
FCL-­‐
updated:
action
Open ACC 15 Scope
Transferable
Flooding
/
Culverts
crossing
the
site
Internal
Roads
levels
for
Salboukh
Area
are
required
117
Delay
in
Design
/
Construction
works
Medium Medium
MOI
to
decide
for
external
road
elevation
6/26/2014
20/11/14-­‐INFO
from
HSA-­‐updated:
action
Open ACC 19 Scope
Land
deed
or
Proof
document
is
required
and
Permit
required
for
backfilling
in
sea
to
confirm
location.
122
Delay
in
taking
over
the
site
and
finish
date
of
KAP4
High High
MOI
proposed
a
new
location.
Proger
submitted
an
initial
adaptation.
MOI
to
advise.
4/7/2014 8/9/2014
20/11/14-­‐INFO
from
RPE-­‐Updated:action,
RAG
Open PMC 22
Resourcin
g
Missing
first
line
managers
for
PMC
Vice
Director
to
direct
and
the
PMC
employees
to
do
the
work.
EG
Reviewing
Engineers,
Quality
Assurance
and
Control
Manager Zone
and
PM
PMC
not
controlling
program
and
causing
delays
and
potential
extra
costs.
High High
PMC
Vice
Director
on
board
by
26
October
2014.
Recruitment
on-­‐
going
for
remaining
Engineering
and
Management
staff.
4/7/2014 6/30/2014
20/11/14-­‐INFO
from
MSC-­‐updated:
action
Open ACC 26 Scope
Existing
buildings
still
occupied
by
EU
118 Construction
schedule
may
be
affected Medium Medium
ACC
to
finalize
the
installation
of
the
temporary
EU's
building.
EU
to
move
there
4/7/2014
26/9/14-­‐INFO
from
HSA-­‐
updated:
action

17. PMO benefits
q Reporting
17

18. PMO success criteria
The research indicated that over 75% of organizations that set up a PMO shut it down
within 3 years becauseit didn't demonstrate any addedvalue(Stanleigh(n. d.)).
PMO success factors:
q Support from senior management,
q It should be carefullyPlannedand designed before a decision is made to establish
one
qClear vision regarding the scope of the PMO
q Success to report the benefits of the PMO to the organisation
q Creating added value for the organisation
qClear and accuratereporting to support seniormanagement decisions
qOvercoming changeresistance
q Conducting regular health check andcontinuous improvements.
18

19. Project failure reasons according to
Lessons learnt
q Awarding projects to the lowest offer withoutlooking at other factors,
q Ambiguity or conflict in project contract,
q Obstacle on project site or permissions,
q Changes in organisation’s strategy, project objectives or end users
requirements,
q Delaying submittals’ approval either by supervision consultant of the
client,
q Delay in decision making,
q Delay in pending issues resolution,
q Cash flow problems,
qLack of professionalism in project management.
19

20. Recommendations for managing
mega projects
q Verify that the project is the best solution for the problem in hand,
q Use Value Management (VM) to conduct the strategic brief,
q Carry out stakeholders analysis to identify project stakeholders,
q Structure their requirements,
q Validate these requirements,
q Design according to these requirements,
q Test your designs against clients requirements and get their approvals,
q Use the suitable procurement method,
q Prepare a very clear contract documents, e.g. RFP, drawings,
specifications, conditions, etc.
q Doublecheck your tender documents,
20

21. Recommendations for managing
mega projects (cont.)
q Compare offers according to fair and clear criteria,
q Review the offers to avoid any wrong assumptions or unacceptable
conditions added by vendors,
q Assign professional supervision consultant and client representative,
q Ground clear rules for all parties with clear roles and responsibilities,
q Insure that the project is managed professionally according to best
practices,
q Nominating Change Control Board helps to manage project scope,
q Initiate a steering committee and schedule a monthly project board meeting
to follow up project progress and resolve high level pending issues,
q Be aware that it could be better to manage it as a programme instead of
project,
q Programme Management Office (PMO) will help strongly to follow up the
previous steps and manage professionally projects and programmes.
21

22. Thanks!
22