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.

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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

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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

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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

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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.

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