SYDNEY OPERA HOUSE: PROJECT SUCCESS OR FAILURE?

By Fernando R. De Souza

Success and Failure

How do you define a successful project?

If the product met its business case but the cost and schedule targets weren't met, has the project failed?

Is success contingent on the overall value that the product or service?

Success and Failure

“A project is successful if it not only met the traditional project managers' definition of success, but also met the

projects sponsors' perception of success.” (Willard, 2005)

Sydney Opera House: from a project management perspective it was a huge failure but it is arguably one of the most recognized buildings in the world

In numbers

Project management:

Cost overrun of 1300%: estimated to cost $7 million but cost over $100 million.

Schedule overrun of 250%: estimated to take four years but took 14 (1959-1973).

But it’s one of the architectural masterpieces from the last century

New Metrics and Measurements

According to Willard (2005): Tier 1: Project completion success Tier 2: Product/service success Tier 3: Business success

Alternatively Project success = project management

success + project product success (Baccarini, 1999)

Traditional view

Tier1- Project completion/management success: Focus on the accomplishment of the project with regards to cost, time and quality.

Extended traditional view

Tier 2- Product/service successUsers satisfaction, happiness/willingness of users…

Tier 3- Business successIf the it brings value and how it contributes financially and/or strategically to the business

Questions?

In your opinion, is the Sydney Opera House a successful project?

Some think that budget and schedule overruns are necessary if you are creating a work of art. Do masterpieces require budget overruns?

Conclusion

The traditional project management parameters are often shortsighted in their view of whether a project will ultimately be successful.

The project manager must focus not only on the specifications, money and time during the project, but also on the expected results and benefits.

Questions?

Which tiers matter the most in a project?

Is it possible to identify a project that should be canceled that is currently meeting the defined needs?