How to Handle Large Complex Projects That Involve Multiple Offices Globally

Large Complex Projects involve a global contracting strategy. Many of those projects also involve multiple project management and engineering offices that can sometimes be geographically very distant. Specific challenges arise in this configuration that need to be anticipated to allow for project success. In our new White Paper 2018-12 ‘How to Handle Large Complex Projects That Involve Multiple Offices Globally’ we share some of the best practices we have identified for those multiple-office projects.

Project offices are substantial offices consisting of a subset of the project team, leveraging on a locally established organisation, and generally headed by a direct report to the Project Director or overall Project Manager.

Typical multiple project office setups will result from the following:

• Project office quite distant from the construction site,
• Local content requirements

imposing need for local team with support from other corporate offices,

For Owners,

• Multiple key contractors, each in turn possibly leveraging several office locations.

For Contractors,

• Multiple offices due to capacity or specialisation reasons,
• Key subcontractor that requires localisation of a subset of the project team.

The dynamics of the multiple office setup will evolve during project progress, typically with the site office taking an increasing importance as engineering and procurement tapers off in other offices.

On Large Complex projects, remote offices involving project sub-teams are inevitable. In those conditions developing and maintaining an effective project team, condition for project success, is a challenge. Specific efforts must be devoted to team formation and continuous internal communication. This may require some investment in travel, tools and time, and needs to be taken into account when planning for the project.

Read our new White Paper 2018-12 ‘How to Handle Large Complex Projects That Involve Multiple Offices Globally’ to discover the details of running successful multi-office projects.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2018-12_multi_office_projects_v0b.pdf

How to Handle Large Complex Projects That Include Series Production

Some types of Large Complex Projects include some aspect of Series manufacturing and/or construction. Examples include train rolling stock projects, large offshore windfarms, marine construction, recovery of nuclear waste etc. The concept can even be extended to the development project part of automotive or aeronautical projects. A substantial contribution to project success lies in the proper exploitation of the production learning curve as well as tight configuration management. Those specifics and some other aspects need to be considered from the start of the project. Our new White Paper 2018-11 ‘How to Handle Large Complex Projects That Include Series Production’ gives an overview of the specific issues that need to be considered for those projects.

Because a substantial Series Effect in the form of improved productivity can be observed within the first 3 sets of the production of any complicated item or the performance of complicated process, the concept of Series can be very large. It covers:

• Small Series (from 3 to a dozen sets),
• Medium Series (from a dozen to few hundred sets),
• Large Series (in excess of a few hundred sets).

It is important to note that depending on the level of possible customisations offered to the end client, large Series may have to be considered as medium series (and medium series small series) at least for a part of the item that is being built.

The concept of Series might also apply to only one part of the project such as a specific component or construction operation. Because the Series Effect offers generally such a huge gain of efficiency, all aspects of a project that can be standardised and repeated should be.

Implementing a Large Complex Project that involves a Series, be it small, medium or large, requires taking specific steps to ensure the project delivers the maximum value. Those steps can have very significant structural consequences on the full value chain of the project. Most importantly, capacity issues must be carefully analysed to make sure the project understands and anticipates potential bottlenecks. Finally, the prevention of generic faults must be an essential focus and reliability engineering must be deployed in a comprehensive manner. Discover details of steps to be taken in our  new White Paper 2018-11 ‘How to Handle Large Complex Projects That Include Series Production’.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2018-11_Series_in_projets_v0b.pdf

How to Tackle the Specifics of Large, Complex Decommissioning Projects

Decommissioning projects are a specific type of Large Complex Projects that require adapted approaches for success. Usual project delivery approaches are sometimes not sufficient due to certain specifics. Our new White Paper 2018-10 ‘How to Tackle the Specifics of Large, Complex Decommissioning Projects’ describes general issues associated with decommissioning projects and how to overcome them. Further White Papers will tackle specific issues related to decommissioning projects in certain industries.

Decommissioning projects consist of the decommissioning, dismantling, remediation and removal of facility material and associated waste so as to deliver a site that is suitable for its intended reuse.
Although only a minor subset of construction projects, decommissioning projects are often very visible to the public and present distinct challenges that sometimes induce very high costs overruns or substantial delays. Specifically, there is often a wide disconnect between the official intent and the actual schedule of decommissioning, which may be much longer.

Decommissioning projects are generally tricky projects which would benefit from greater reliability. Successful decommissioning projects require substantial project definition work, and at the same time, a sufficiently flexible project execution framework to accommodate unexpected situations. Some key success factors are required, such as available waste streams, a realistic target end-state, a flexible enough regulatory framework, suitable financing and proper attention to occupational safety and the required flexibility to accommodate unexpected situations. Our new White Paper 2018-10 ‘How to Tackle the Specifics of Large, Complex Decommissioning Projects’ describes those aspects in detail.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2018-10_decommissioning_projects_v0b.pdf

How to Develop the Project Management Maturity Level of an Organization

Improving the Project Management Maturity Level of an organization is a must to improve the predictability and cost-effectiveness of project execution, in particular for Large and Complex Projects. Following up on our White Papers on measuring the maturity level of an organisation, in our new White Paper 2018-09 ‘How to Develop the Project Management Maturity Level of an Organization’ we examine what are the conditions and the constraints for maturity enhancement of a project-driven organization.

Increasing the Project Management Maturity Level of an organization is a must to confidently tackle larger and more complex projects. Our experience shows that it is generally not the result of a natural continuous improvement program. Maturity levels typically improve by jumps occasioned by targeted transformation programs, because they require substantial changes of paradigm and habits for employees. These programs are often implemented after a particularly negative experience in the execution of a project or as a result of the arrival of executives that have experienced more mature organizations.

Transformation projects are necessarily long projects from 6 to 18 months because of the time to change habits and the need to include a comprehensive roll-out of new tools and solutions and associated substantial training for employees. They are therefore a substantial investment for the organization.

Project Management Maturity Improvement projects follow the same general phasing as transformation projects. PVD applies the ‘4D’ approach:

• Phase 1: Discovery, measurement of maturity on all applicable dimensions,
• Phase 2: Definition: definition of priorities and key deliverables; full scope definition; overall implementation schedule,
• Phase 3: Development: key deliverables are developed and tested,
• Phase 4: Deployment: roll-out: and deployment of new working habits, processes and systems throughout the organization, within a comprehensive Change Management plan.

Improving the Project Management Maturity Level of an organization requires a comprehensive organization transformation project. It needs to address in a comprehensive manner a large number of dimensions of the organization. It also needs to be carefully prioritized and timed to fit with the needs of the organization. However, it is a must for an organization to be mature enough to successfully tackle Large Complex Projects. Discover in detail how to proceed in our new White Paper 2018-09 ‘How to Develop the Project Management Maturity Level of an Organization’.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2018-09_Improving_Maturity_Level_Project_Orga_v0b.pdf

Project Management Maturity Levels for Large Complex Infrastructure Projects

Measuring an organization’s maturity level in the field of project management is a question that is raised often. By using existing frameworks (CMMI-DEV) and extending them to the field of Large Complex Projects, a meaningful project management maturity framework can be developed. Our new White Paper 2018-07 ‘Project Management Maturity Levels for Large Complex Infrastructure Projects’ gives a summary of this approach and of the different maturity levels.

There are several frameworks available, a well-known reference is the CMMI® (Capability Maturity Model® Integration) framework. It has been developed historically in the field of software development and systems engineering, by the Software Engineering Institute. The CMMI-DEV document (the version of the CMMI® framework for development projects) is available for free on internet. The latest version is 1.3. Although it has been developed primarily for development projects in those fields, it provides an interesting generic structure to measuring the maturity of an organization.

Project management maturity models are useful for executive management to measure the current condition of its organization, or of part of its organization. They can also be used to compare the maturity of different organizations. The maturity level is a very useful indicator for Executive Management of the suitability of the organization to the strategic ambition of the organization in particular with respect to tackling Large Complex Projects.

PVD has developed a simple model which is based on the CMMI® generic maturity levels but uses a different list of processes using vocabulary and concepts that are possibly more common in the infrastructure industry. The model addresses both Contractor and Owners. In general, the Owners require more processes to be at the adequate level of capability – with a particular focus in terms of overall system engineering and management. Discover this version of the project maturity model in our new White Paper 2018-07 ‘Project Management Maturity Levels for Large Complex Infrastructure Projects’.

If you can’t access the link to the white paper, copy and paste the following link in your browser:  http://www.projectvaluedelivery.com/_library/2018-07_Project_Execution_Maturity_framework_v0b.pdf

How to Take Into Account Cultural Differences in Large Complex Projects

Large international Projects are multicultural. They are executed in various countries. Cultural differences need to be taken into account as well within the team as with regards to the client and the local context. This aspect is often underestimated, in particular by international project specialists, under the belief that conventional rule of contract and project management approaches prevail. However it not always so, and Project success requires to be attuned to cultural differences. Our new White Paper 2017-11 ‘How to Take Into Account Cultural Differences in Large Complex Projects’ elaborates on some aspects that need to be considered carefully.

Cultural differences express themselves at two levels on a Project:

• Large Projects are always global when it comes to the entire value chain (suppliers, contractors) and often at the Project team level as well,
• The Contractual approach and strategy needs to be adapted to the cultural context of the Client.

The impact of cultural differences on Project communication and performance should not be underestimated. It will inform the leadership styles that need to be used. It will also require substantially more investment in team members’ integration for the team to be fully effective in an atmosphere of trust. Cultural differences also too often lead to general categorization which relates to blame, and this effect needs to be carefully avoided in the Project team in particular in periods of stress.

An other aspect which is often underestimated by (western) organizations is that the British or American tough and formal contractual approach does not work universally. While it is formally the manner in which most large global contracts are setup nowadays, the way those contracts should be managed varies greatly with the local culture of the Client.

To the contractor’s dismay, in many countries, trust is more important and issues tend to be resolved at the end of the Project in a single wash-out package where both parties aim at not losing face. If the contractor has done great efforts to respond to the Client, he can generally hope to be rewarded at the end. However this creates difficult situations with respect to the formal accounting rules for profit recognition because this generally leads to a substantial degradation of the formally recognized Project bottom-line in the second half of the Project. In these cultures, writing tough contractual letters in the midst of the Project might also not be acceptable to the other party because of face-keeping issues and the expected deference to the Client.

We see too often Projects in dire straits because of some cultural misunderstanding – either within the project team itself or with the Client or local communities. The capability to be attuned to cultural differences and adapt accordingly is a key skill for the successful Project Manager on Large International Projects. The availability of a local partner and/or counsel is also an essential success factor that should be taken into account when setting up such Projects for execution. Read our new White Paper 2017-11 ‘How to Take Into Account Cultural Differences in Large Complex Projects’ to understand better those issues!

Update and correction on 4 December 2018: the link to Hoefstede National Culture Dimensions is now https://www.hofstede-insights.com/product/compare-countries/. The White Paper has been updated accordingly.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2017-11_MultiCultural_Aspects_Large_Projects_v0.pdf

Why an Information System Management Function is Required That Is Different from an IT department

In a series of White Papers, based on our extensive experience in this area, we cover challenges of Information Systems in project-driven organisations: from the overall architecture to systems implementation, development and ongoing management. In this fourth and last White Paper 2018-06 ‘Why an Information System Management Function is Required That Is Different from an IT department’ we cover the specific issues related to the ongoing maintenance and management of the evolution of Information Systems. A specific function, Information Systems Management, is required, that is different from the usual Information Technology department. This White Paper explains why and what should be the remit of the Information Systems department and of Information Systems Engineers.

We often observe that organisations have IT departments that are very focused on the technical operation of the Information Technology infrastructure, and business users. The IT personnel often lacks awareness of business needs and knowledge of the specific business software running on the infrastructure, while business users are fully ignorant of the implementation aspects of the software they are using daily.

Most organisations are missing an intermediate link which we call Information Systems Management: while the IT department looks at the hardware, the Information Systems Managers look at the software. They build the bridge between the business needs of the business users and how to implement solutions in the organisation’s IT framework.

We encourage organizations to identify and formalise the role of Information Systems Managers; and to have them organised separately from the IT department. This should be a small group of personnel that drive the systems transformation of the organization. In these times when digital transformation is a motto for most organisations, this need becomes even more urgent.

Find more about the role and profile of this Information Systems structure in our new White Paper 2018-06 ‘Why an Information System Management Function is Required That Is Different from an IT department’.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2018-06_Information_Systems_Mgt_v0b.pdf

How to Adapt Supply Chain IT Systems to the Specifics of Project Execution

Standard ERP systems and procurement systems are not well adapted to the specifics of project execution in particular for Large, Complex Projects. Substantial changes and improvements are required. Based on our experience and observations, our new White Paper 2017-18 ‘How to Adapt Supply Chain IT Systems to the Specifics of Project Execution’ explains the reasons for this issue and what can be done to overcome it in an effective and timely manner.

Adaptation of standard Supply Chain Management and ERP IT systems for the specifics of project execution is necessary. At the same time, this adaptation needs to be done with a particular focus on those aspects for which an IT system provides substantial benefits. It is a must to keep control of Large, Complex projects and an investment that cannot be avoided. The investment will provide substantial returns in terms of enhanced control and minimization of procurement costs.

Specific system adaptations are required, in particular in terms of Material-Take-Off import in the system, the detailed receipt on site, the need of a specific purchase-to-pay process based on milestones, and several other post-award management features.

Read our  new White Paper 2017-18 ‘How to Adapt Supply Chain IT Systems to the Specifics of Project Execution’ to understand the details of what need to be adapted for Large Complex Projects.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2017-18_Project_SCM_systems_v0.pdf

How to Maintain Sufficient Control of EPC Contractors on Projects

One of the most frequent failure modes we observe is insufficient, or poorly structured oversight of EPC Contractors. It is not because the contract is a turn-key EPC contract given to a reputed and professional contractor that the Project should not devote sufficient attention and oversight. In reality, EPC contracts are as susceptible to failure and commercial issues as other setups, and both direct and indirect consequences can be massive. Our new White Paper 2017-10 ‘How to Maintain Sufficient Control of EPC Contractors on Projects’ focuses on how to properly organize Project Control of an EPC Contractor.

One of the most common issues we encounter when it comes to EPC contractors that have to deliver a sizable part of the Project is a relative weakness of the supervisory organization. Projects or Owners too often underestimate the amount of control required to obtain a smooth delivery. In addition, they fail to understand that the relatively limited supervisory investment required is key to avoiding later major issues that may have consequences several orders of magnitude larger.

We are not favoring here the excessive addition of technical experts as part of this oversight, which sometimes have the opposite effect of affecting significantly the progress of the contractor and its ability to propose alternate solutions. We are focusing mainly on contract and control personnel.

Delegation is not incompatible with control, and even with lump-sum EPC contracts, it is essential to maintain substantial control in the interest of the Project. The issue of proper supervision by the Project is applicable in particular to lump-sum contracts. Contrary to common belief, in reality lump-sum EPC contracts often prove to be more risky for the Project due to the lack of detailed visibility on the actual progress, and because any change or interface issue from the side of the Project will be translated immediately into a Change Order. In a number of circumstances, it is more appropriate to use other contractual approaches. In any case, sufficient supervision remains required on the Project side even in the case of lump-sum EPC contracts..

Our new White Paper 2017-10 ‘How to Maintain Sufficient Control of EPC Contractors on Projects’ gives some pointers as to the required setup and areas of focus. Professional supervision of EPC contractors is a must.

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2017-10_Project_Control_EPC_Contractors_v0.pdf