How Systemic Approaches are Needed for Complex Projects
Complex projects can only be understood using a holistic systemic approach: the understanding of the performance of one part of the project is not correlated to the performance of the whole project. However, many organisations are still using discipline specific rather than transverse KPIs to assess performance and thus miss the emergence of transverse issues. It is essential to implement tools and processes that address the systemic aspect through transverse checks on the consistency of performance throughout projects and project portfolios. In our new White Paper 2020-12 ‘How Systemic Approaches are Needed for Complex Projects’ we expose in more detail the reasons for this need and what tools and processes can provide proper oversight.
Complex systems theory explains why the performance of the complex system is not just the sum of the performance of the parts. Some characteristics may emerge from the system itself; and the performance of the system is also only weakly correlated to the performance of its parts because of such effects as bottlenecks, natural variation and other non-linear behaviour and interdependence of various system components
Irrespective of a high level of oversight on each part of the system, a systemic oversight is needed, that takes a broader view. There are numerous examples of systems which looked fine seen from partial discipline indicators but were quite inadequate from a systemic perspective. An extreme example of an approach that will never work, but still sometimes observed, is the attempt to drive large complex projects using a set of discipline schedules without an integrated project schedule.
In order to assess the performance of a complex project, approaches are thus needed that consider the entirety of the system in a comprehensive manner and check the consistency across the project.
Those approaches need to be:
- Comprehensive and holistic, without necessarily going into the detail of each discipline, but focusing on the consistency of the overall picture and on the interfaces between disciplines and interdependency of stakeholders,
- Broad in terms of scope coverage (in particular, external stakeholders)
- Focused on the systemic issues such as: culture, team integration and performance, value to the organisation, consistency of the approach, proper coordination of activities etc.
- Identifying gaps and duplications across all disciplines and parts of the project
Depending on the phase of the project, the methods to provide this systemic oversight may vary, still the methods will always rely on bringing together data and reports from all disciplines and checking their consistency.
Implementing systemic oversights of project performance is not easy and often not natural in many organisations. Specific reporting and checking practices used around complex projects do respond to the need, however, they need to effectively cover all relevant disciplines in a balanced manner and with a specific focus on their interdependence. This sometimes require difficult adjustments in organisations that are more used to concentrating on the local performance of each discipline. Strong leadership is then required to effectively implement systemic monitoring, which is the only way to have a reliable measurement of the effectiveness of the organisation, systems and processes on a large complex project.
Read our new White Paper 2020-12 ‘How Systemic Approaches are Needed for Complex Projects’ to understand better why systemic oversight needs to be maintained.
If you can’t access the link to the white paper, copy and paste the following link in your browser: https://www.projectvaluedelivery.com/_library/2020-12_need_systemic_oversight_approach_v0.pdf
How Project Governance must be set up for Contractor Consortium and Joint-Venture Projects to achieve Success
Further to our White Papers on the importance of project governance such as 2018-01 ‘How governance can make or break a project’, our new White Paper 2020-08 ‘How Project Governance must be set up for Contractor Consortium and Joint-Venture Projects to achieve Success’ examines in more detail recommended practices for governance of projects involving a consortium or a joint venture. Too often we observe in this situation bloated and ineffective governance setups which severely hinder the project from achieving success. The White Paper details recommended practices for setting up the governance of such projects.
In an era when clients increasingly seek to be provided integrated solutions and avoid managing interfaces, contractors increasingly establish consortiums or joint ventures to respond to this expectation. This allows to combine several specialties to respond to the need but at the same time requires an effective governance framework between organisations that sometimes have to learn to work together. In certain cases, those consortiums can be setup between entities of the same group of companies; contrary to what could be believed, it is not always the easiest situation because of the complexity of organisational politics and tendency to be less formal when working internally.
Good practices include:
As consortiums and joint-ventures amongst contractors become more frequent to respond to market expectations, sound governance practices need to be implemented. Still, nothing can replace a sufficient amount of trust between the parties that need to be maintained on the long term. In addition, the nomination of a single, competent Project Sponsor and adequate delegation of authority to a trusted Project Director will go to a long way to ensure success of the venture. Read our new White Paper 2020-08 ‘How Project Governance must be set up for Contractor Consortium and Joint-Venture Projects to achieve Success’ for more detail about what needs to be done in this situation.
If you can’t access the link to the white paper, copy and paste the following link in your browser: https://www.projectvaluedelivery.com/_library/2020-08_project_governance_for_contractors_consortiums_JV_projects_v0.pdf