Large Complex Projects (PMI-MY presentation Sept 2012)

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Large, Complex Project Management is Fundamentally different from smaller, simpler project management. In this comprehensive presentation for the Project Management Institute, we dwell into the details of what needs to be setup to be successful in these world-changing ventures.

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  • 1. Project Value Delivery Large, Complex Projects: a different ball-game Jeremie Averous September 2012 Project Value Delivery, 2012www.ProjectValueDelivery.com
  • 2. Project Value Delivery Intercultural leadership Project Soft Power Team effectiveness Project Coaching Unleashing Value Leadership development from YourProject Control and Reporting Large, Complex Project Recovery Project Startup support Projects Advanced project training Support systems integration Project Health Check Remote sites integration Advanced risk management Organizational maturity Convergence planning We Empower Organizations To be Reliably Successful in Executing Large, Complex Projects Discover more on www.ProjectValueDelivery.com
  • 3. Specifics of Large, Complex Projects Project Value Delivery, 2012www.ProjectValueDelivery.com 3
  • 4. Specifics of Large, Complex Projects What is the difference between day-trekking and climbing Mt Everest?ORGANIZATION / SYSTEMS / PROCESS TEAM EQUIPMENT Project Value Delivery, 2012www.ProjectValueDelivery.com 4
  • 5. Specifics of Large, Complex Projects Running a Successful Large, Complex Projects Company is fundamentally different from running a Successful Simple Projects Company Project Value Delivery, 2012www.ProjectValueDelivery.com 5
  • 6. Specifics of Large, Complex Projects What is a Large, Complex Project? Convergence processContents Organization Survival Project Controls Systems Project Soft Power: Project LEADERS Conclusion Project Value Delivery, 2012www.ProjectValueDelivery.com
  • 7. Specifics of Large, Complex Projects What is a Large, Complex Section Project? 1 About size and complexity Project Value Delivery, 2012www.ProjectValueDelivery.com
  • 8. What is a Large, Complex Project? What is complexity? Project Value Delivery, 2012www.ProjectValueDelivery.com 8
  • 9. What is a Large, Complex Project? Complex System = System with many independent components and strong interactions Project Value Delivery, 2012www.ProjectValueDelivery.com 9
  • 10. What is a Large, Complex Project? In the Offshore Construction Industry Complex ~ EPIC project Sizeable Complex Procurement & Fabrication & related engineering (30, 40%+ of revenue) Large ~ 300 MUSD+ in offshore industry ~ 200 MUSD+ in onshore industrial construction Risk ownership varies not important lump-sum projects = risk & opportunity with Contractor = higher potential margins Project Value Delivery, 2012www.ProjectValueDelivery.com 10
  • 11. Large, Complex Projects Business Benefits Leverage revenue / asset base Lump sum higher potential margins Multi-year predictable activity / revenue / cash Market premium & market leverage Increased organization capabilities allows to tackle new developments Project Value Delivery, 2012www.ProjectValueDelivery.com 11
  • 12. Large, Complex Projects MINDSET ISSUE How do you recognize easily a company which mindset is only one of Simple Projects? Project Value Delivery, 2012www.ProjectValueDelivery.com 12
  • 13. Specifics of Large, Complex Projects Convergence process Section 2 The Key To Successful Large, Complex Projects Project Value Delivery, 2012www.ProjectValueDelivery.com
  • 14. Convergence processSimple Project Complex Project Project Value Delivery, 2012www.ProjectValueDelivery.com 14
  • 15. Convergence process Project Performance Driver (or, what kills a project) Simple project Large project Efficiency Convergence +20% 10% Potential upside/ downside - 30, -50, -100% Project Value Delivery, 2012www.ProjectValueDelivery.com 15
  • 16. Convergence process For Complex Projects, the focus of project management needs to be on convergence Main driver: avoid standby of project & major assets Project management is geared on timely delivery of all required deliverables This might require investment = additional cost upfront Very different project management focus & process than Simple Projects Project Value Delivery, 2012www.ProjectValueDelivery.com 16
  • 17. Convergence process Real life examples Africa, 2006: A late 0.5MUSD item causes a 60MUSD loss on a 800MUSD contract Delay impacted First Oil: huge organizational disruption Loses next contract with same Client Numerous examples of lump sum projects finishing at cost x2 or x3 Project Value Delivery, 2012www.ProjectValueDelivery.com 17
  • 18. Specifics of Large, Complex Projects Organization Section 3 Large, Complex Projects Require Specific Organization Patterns Project Value Delivery, 2012www.ProjectValueDelivery.com
  • 19. Organization An integrated team Geographically regrouped Team effectiveness Direct report to top management No Part-time job! Functions support project Integrated team Resourcing Processes and tools away from departments! Project Value Delivery, 2012www.ProjectValueDelivery.com 19
  • 20. Organization An experienced Project Manager of Simple Projects is not necessarily suitable to lead a Complex Project Different skills required Project Value Delivery, 2012www.ProjectValueDelivery.com ? 20
  • 21. Organization Different skills required also for Procurement Engineering Project Value Delivery, 2012www.ProjectValueDelivery.com 21
  • 22. Specifics of Large, Complex Projects Survival Section 4 Project Value Delivery, 2012www.ProjectValueDelivery.com
  • 23. Survival With a Large, Complex Project, the very survival of the company is at stake. Project Value Delivery, 2012www.ProjectValueDelivery.com Mt Everest claimed 219 lives so far 23
  • 24. Risk Pattern of Complex Systems In Complex Systems, freak events happen regularly

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