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Making Projects Fly:
Where do we find the pilots?
Dr Paul ChapmanFellow in Operations Management
Director of Graduate Studies, MSc in Major Programme ManagementAcademy Director, UK Government Major Projects Leadership Academy
Saïd Business SchoolUniversity of Oxford
Session Overview
The development of new aerospace systems, like other major projects, are extensive endeavours with large budgets committed over long timescales. The ‘pilots’ of these projects are accountable for their performance and also carry with them the hopes and fears of a broad team of thousands of people as well as nations and professions.
These can be some of the best jobs on the planet and this session considers how individuals make a success of these roles through blending technical excellence, leadership and the ability to shoulder potentially crushing personal demands.
2
Where do we find the pilots?
• What / who are the ‘pilots’?
• Technical excellence: Understanding the anatomy of Major Projects• Nature• Characteristics• Success• Concerns
• Leadership: Own your learning journey• Appreciate the biggest risk is you• Act to reconcile your incompleteness
3
What kind of “pilot” / major project leader are we talking about?
Deity: One of the pantheon of the gods: immortal, although flawed, with supernatural powers whose role is to govern the universe
Silverback: Role is to ensure survival of the band, providing:• protection against predators, • protection against infanticide
by other males, • mating opportunities (Watts, 2001)
What does a major project leader do?
Chief Executive Officer Chief Operating Officer Chief Programme OfficerPurpose Secure the future. Deliver corporate strategy. Deliver major programme.
Focus Vision and direction setting.
Maintain / ensure organizational reputation and integrity.
Coordinate organisational functions.
Deliver quarterly performance in terms of return on assets/ sales / net income.
Deliver objectives:- Earned value (or similar).- Benefits. Context. Risk.
Duties Set strategy and vision. Build culture. Build teamwork. Allocate capital.
Enable team. Communicate with
stakeholders (Board / key customers / staff).
Design and develop governance regime.
Secure resource, set direction, drive progress.
Engage stakeholders. Manage risk.
Andrew Wolstenholme OBE
What does a major project leader look like?
Where do we find the pilots?
• What / who are the ‘pilots’?
• Technical excellence: Understanding the anatomy of Major Projects• Nature• Characteristics• Success• Concerns
• Leadership: Own your learning journey• Appreciate the biggest risk is you• Act to reconcile your incompleteness
7
The nature of major projects
• Major projects exist within the macro-economic context, e.g. global infrastructure spending is substantial and topical given Governmental growth agendas
• More widespread than would first appear, across a range of categories:
Mega-events: sports, culture and politics
Big science: science, infrastructure and politics
Megaprojects:
Energy:Social programmes
Enterprise: business growthphysical infrastructure, concrete, IT and politics
mostly politics
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Hangzhou Bay BridgeElon Musk, SpaceXJames Clarke, MMPM2
Beijing National Stadium DNA double helix
Sellafield nuclear plant
Fermi NationalAccelerator Laboratory
obesity education
Wind farm
Major projects that recently caught my eye
Dams in PakistanThe need to act:
Recent monsoon flooding and resulting devastation
Burgeoning need for renewable power
Context:
2010 floods killed 1600 people, left 11million homeless and affected 20 million overall
Islamabad suffers blackouts 16 hrs/day
Programmes:
Diamer Bhasha dam : $12.8bn, 2011-2020
Dasu dam : $ 4.2bn, 2014-2022
Reduce Child MortalityThe need to act:
17,000 children die each day from “from largely preventable causes.”
Context:
UN Millennium Development Goals (MDG) include cutting infant mortality by two-thirds between 1990 and 2015. At current progress, this won't be achieved until 2026.
Programmes:
BBC recently reported work in Malawi, where this MDG has been achieved, with a decline in child mortality of 72%. (Source: http://www.bbc.co.uk/news/health-29228448 )
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Reduce child mortality
UN Millennium Development Goals
(a ‘portfolio’?)Reduce Child Mortality
(a ‘programme’?)
Malawi case study(a project?)
• Network of health workers with basic skills
• Immunisation• Health advice to mothers • Treatment for diseases• Promote breastfeeding• Family planning
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Characteristics of a Major Project
Large scale, budget-busting, share price affecting
UK Government Major Projects Portfolio (GMPP) with a total value of (about) £488bn ($800bn) whole life cost
Indian Government Ministry of Statistics and Programme Implementation portfolio of 239 mega projects valued at INR 7,40,000 Crores. ($122bn) w.l.c.
US Federal investment (Defence eqpt; physical capital; R&D) approx $350bn per annum
Complex, i.e. a systems of systems
Small ‘p’ political: Product of negotiated compromise; Contested externalities1
Big ‘P’ political: Political considerations influence initiation; Viewed as a vehicle for economic development1
Large, irreversible commitments. Crafted over many years with extended front-end period, often more than five years and extended delivery period1
Deliver transformational outcomes
“90% of UK Government policy is delivered through Major Projects” 2
Advancement towards ‘the good life’
1 Source: Miller and Leasard (2000) The Strategic Management of Large Engineering Projects2 Source:: Pitchford, D., (2012) in Association for Project Management “The Importance of Project Ambition and Benefits” Benefits Management Special Interest Group publication.
Whole system(e.g. energy market reform)
Project delivery(e.g. infrastructure)
Aligning actors to policy objectives
Benefits achieved through:
Big change(e.g. business transformation)
Embedding an organisational restructure
Operating the delivered infrastructure
IdeogramArchetype Emphasis of Major Project leader
Understand and influence incentives
Lead, listen and inspire.
Set up for delivery, drive achievement
Journey(e.g. addressing obesity)
Modified behaviours
Behavioural psychology
Across the categories are a range of archetypes
Different archetypes exist across the various categories, achieving their benefits in different ways.
Project delivery
Big change
Whole system
Journey
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Major IT projects are best viewed as
‘IT enabled business transformations’
Transformationsrequire a change of
heart as well as mind
Major projects do not exist in isolation and can exact
change on a system, or be ineffective without system
change
Getting people &/or organisations to behave
differently requires a blend of regulation and cultural change
Real projects contain a combination of archetypes
Combining archetypes acknowledges the richness and complexity seen in practice, while revealing an understanding of the approaches that need to be employed.
Project delivery
Big change
Journey
Whole system
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Success remains elusive
“Over Budget, Over Time, Over and Over Again”(Flyvbjerg, Garbuio and Lovallo, 2009, Survival of the unfittest)
When it comes to Major Projects being late and over budget, “this sort of thing happens. Even to Germans,”
(Economist, 2013)
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“You did well, Bernardo, in lying to us about the expense... Your deceit has built these glorious structures, which are praised by all except the few consumed with envy.”
Pope Pius II to Bernado Gambarelli, the Architect of the newly completed “site of architectural perfection” at Pienza,1462
Concerns, for example the eternal nature of deceit
15(Source: Piccolomini, translated by Gragg, F.A. (1959), Secret Memoirs of a Renaissance Pope, London: The Folio Society, pg 280
Where do we find the pilots?
• What / who are the ‘pilots’?
• Technical excellence: Understanding the anatomy of Major Projects• Nature• Characteristics• Success• Concerns
• Leadership: Own your learning journey• Appreciate the biggest risk is you• Act to reconcile your incompleteness
16
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Own your learning journey
Understanding of context is important
Experience is essential
Theory cannot be overlooked
There is a need to develop and deepen:
Technical excellence
Commercial competence
Leadership of projects
Resilience
left to right: Nick Borwell; Steve Powell; Chiara Dottorini McCormack
Left to right: Stan Lewis (USA); Arash Kanani (Iran); Gerard Newman (UK); Raj Mehta (UK); Olukunle Akinbosede (USA/Nigeria ); Zoubir Abdel-Hamid (UK/UAE); Ralf Gehrke (Germany);Viviane Da Silva (UK/Brazil)
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Saïd Business School programmes
“Substantially improve delivery of major projects by ….commencing training of all leaders of major projects through the Major Projects Leadership Academy by the end of 2014”(340 people on 11 cohorts)
MSc Major Programme Management
• Launched 2008• Students are major
programme managers and high performing talent from around the world and across sectors (260+ so far)
UK Government Major Project Leadership Academy
• Part-time over 24 months; eight courses plus dissertation (120 days)
• Part-time over 12 months; three modules (30 days)
• Launched 2012• Participants are UK Government Major
Project Leaders
http://www.civilservice.gov.uk/wp-content/uploads/2012/06/Civil-Service-Reform-Plan-acc-final.pdf
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Saïd Business School programmes
“Substantially improve delivery of major projects by ….commencing training of all leaders of major projects through the Major Projects Leadership Academy by the end of 2014”(340 people on 11 cohorts)
MSc Major Programme Management
• Launched 2008• Students are major
programme managers and high performing talent from around the world and across sectors (260+ so far)
UK Government Major Project Leadership Academy
• Part-time over 24 months; eight courses plus dissertation (120 days)
• Part-time over 12 months; three modules (30 days)
• Launched 2012• Participants are UK Government Major
Project Leaders
http://www.civilservice.gov.uk/wp-content/uploads/2012/06/Civil-Service-Reform-Plan-acc-final.pdf
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MPLA impact - Government’s perspective
“From what I have seen it is an excellent course ... together with other things we have done it has led us to improve our confidence in delivering projects on time and on budget. Two years ago we were delivering around one third of projects on time and now it is up nearer two thirds.”- Sir Bob Kerslake, Head of the Civil Service
“The MPLA is helping to make sure we have the right people with the right skills to deliver on time and on budget … That’s why I’ve decided that all senior leaders will need to take this course before the Treasury gives the green light for any major project.”Danny Alexander Chief Secretary to the Treasury
Tony Graham,(MoD;) Stefanie Murphy (DECC); Dr Paul Chapman; Sir Bob Kerslake
Danny Alexander, Chief Secretary to the Treasury
Session Summary
The development of new aerospace systems, like other major projects, are extensive endeavours with large budgets committed over long timescales. The ‘pilots’ of these projects are accountable for their performance and also carry with them the hopes and fears of a broad team of thousands of people as well as nations and professions.
These can be some of the best jobs on the planet and this session considers how individuals make a success of these roles through blending technical excellence, leadership and the ability to shoulder potentially crushing personal demands.
21