2

Factors for Project Success

or Failure

Copyright 2007 Dennis Lock and his licensors. All rights reserved.

We might say that a successful project We might say that a successful project must satisfy three basic objectives:must satisfy three basic objectives:We might say that a successful project We might say that a successful project must satisfy three basic objectives:must satisfy three basic objectives:

11 Cost – all work done within budgetCost – all work done within budget11 Cost – all work done within budgetCost – all work done within budget

22 Time – the project finished on timeTime – the project finished on time22 Time – the project finished on timeTime – the project finished on time

33 Quality – which we shall define later.Quality – which we shall define later.33 Quality – which we shall define later.Quality – which we shall define later.

This view can be too simplistic, but it This view can be too simplistic, but it serves to start our debate on what serves to start our debate on what makes a project a success or a failure. makes a project a success or a failure.

This view can be too simplistic, but it This view can be too simplistic, but it serves to start our debate on what serves to start our debate on what makes a project a success or a failure. makes a project a success or a failure.

COSTTIMEQUALITYTHE

PROJECT

We might have to give priority to one or We might have to give priority to one or more of these objectives at the expense more of these objectives at the expense of the others, as the following examples of the others, as the following examples show:show:

We might have to give priority to one or We might have to give priority to one or more of these objectives at the expense more of these objectives at the expense of the others, as the following examples of the others, as the following examples show:show:

11 A nuclear power station is just one A nuclear power station is just one of many examples where QUALITY of many examples where QUALITY

and safety must come first.and safety must come first.

11 A nuclear power station is just one A nuclear power station is just one of many examples where QUALITY of many examples where QUALITY

and safety must come first.and safety must come first.

22 Preparing for a public event that has Preparing for a public event that has already been advertised means already been advertised means

being ready on TIME must come firstbeing ready on TIME must come first

22 Preparing for a public event that has Preparing for a public event that has already been advertised means already been advertised means

being ready on TIME must come firstbeing ready on TIME must come first

33 A public charity organization A public charity organization building its new headquarters will building its new headquarters will have to consider the COST first.have to consider the COST first.

33 A public charity organization A public charity organization building its new headquarters will building its new headquarters will have to consider the COST first.have to consider the COST first.

Thus the three basic objectives are Thus the three basic objectives are related to each other and the project related to each other and the project manager may have to pay more manager may have to pay more attention to cost, or time, or quality.attention to cost, or time, or quality.

Thus the three basic objectives are Thus the three basic objectives are related to each other and the project related to each other and the project manager may have to pay more manager may have to pay more attention to cost, or time, or quality.attention to cost, or time, or quality.

Dr Martin Barnes illustrated these Dr Martin Barnes illustrated these choices as a triangle of objectives. Here choices as a triangle of objectives. Here is how he first presented his triangle.is how he first presented his triangle.

Dr Martin Barnes illustrated these Dr Martin Barnes illustrated these choices as a triangle of objectives. Here choices as a triangle of objectives. Here is how he first presented his triangle.is how he first presented his triangle.

The triangle of project objectives(after Martin Barnes, then of Deloitte, Haskins & Sells)

The triangle of project objectives(after Martin Barnes, then of Deloitte, Haskins & Sells)

TimeTime

QualityQuality

CostCost????

Consider what is meant by ‘quality’.Consider what is meant by ‘quality’.Consider what is meant by ‘quality’.Consider what is meant by ‘quality’.

QualityQualityQualityQuality

• Attractive appearanceAttractive appearance

• Good performanceGood performance

• Reliable and safeReliable and safe

• Satisfies the specificationSatisfies the specification

• Delights the customerDelights the customer

• Attractive appearanceAttractive appearance

• Good performanceGood performance

• Reliable and safeReliable and safe

• Satisfies the specificationSatisfies the specification

• Delights the customerDelights the customer

Quality guru Joseph M. Duran defined quality better and more succinctly when he declared that:

Quality guru Joseph M. Duran defined quality better and more succinctly when he declared that:

A product (or service provided)

has to be

A product (or service provided)

has to be

Fit for its intended purposeFit for its intended purpose

Now let us apply Duran’s definition of quality as fitness for purpose to a projectNow let us apply Duran’s definition of quality as fitness for purpose to a project

When we manage a project, the output must be fit for the purpose that was intended.

When we manage a project, the output must be fit for the purpose that was intended.

Thus “quality” is non-negotiable and must Thus “quality” is non-negotiable and must not be downgraded in priority against time not be downgraded in priority against time and cost. and cost.

How does that affect the triangle of objectives?How does that affect the triangle of objectives?

Consider two different bathrooms.

One has gold-plated taps

The other has chromium-plated taps.

Both are fit for purpose, and both satisfy the

definition of quality.

But the gold-plated taps have:

a higher level of specification.

Consider two different bathrooms.

One has gold-plated taps

The other has chromium-plated taps.

Both are fit for purpose, and both satisfy the

definition of quality.

But the gold-plated taps have:

a higher level of specification.

Dr Martin Barnes modified his original triangle of objectives by substituting ‘performance’ for ‘quality’. Dennis Lock uses ‘specification’.

Dr Martin Barnes modified his original triangle of objectives by substituting ‘performance’ for ‘quality’. Dennis Lock uses ‘specification’.

TimeTime

Performance or specificationPerformance

or specification

CostCost????

Introducing two buzzwords (in the context of project success or failure)

Introducing two buzzwords (in the context of project success or failure)

The desired project outcomesThe desired project outcomes

Persons or organizations who will affect, or will be affected by, the projectPersons or organizations who will affect, or will be affected by, the project

1 Deliverables1 Deliverables

2 Stakeholders2 Stakeholders

A project success or failure?A project success or failure?

For the original designers?For the original designers?

For the builders?For the builders?

For the Pisa tourist trade?For the Pisa tourist trade?

It all depends on which stakeholder you considerIt all depends on which stakeholder you consider

Project success or failure?Project success or failure?

This project will finish two weeks early

Costs running well below budget

No significant non-conformances

This project will finish two weeks early

Costs running well below budget

No significant non-conformances

Happy stakeholdersHappy stakeholders

Suicidal stakeholdersSuicidal stakeholders

Success or failure for whom?Success or failure for whom?

Original budget: £500 000 000Final cost: £600 000 000Contractor's loss: £100 000 000

Original budget: £500 000 000Final cost: £600 000 000Contractor's loss: £100 000 000

Target opening date: May 1998Actual opening date: Aug 1999Owner's lost revenue: £9 500 000

Target opening date: May 1998Actual opening date: Aug 1999Owner's lost revenue: £9 500 000

Project phase

1 Original concept

2 Feasibility study

3 Business plan

4 Risk assessment

5 Public enquiry

6 Authorization

7 Organization

8 Planning

9 Design

10 Procurement

11 Fulfilment

12 Test/commission

13 Handover

14 Economic life

15 Disposal

Five-year periods

Here is the project life cycle again . . .Here is the project life cycle again . . .

. . . but now in the context of project success or failure. . . but now in the context of project success or failure

Project phase

1 Original concept

2 Feasibility study

3 Business plan

4 Risk assessment

5 Public enquiry

6 Authorization

7 Organization

8 Planning

9 Design

10 Procurement

11 Fulfilment

12 Test/commission

13 Handover

14 Economic life

15 Disposal

Five-year periods

Project success or failure depends largely on defining the project correctly from the beginning.Project success or failure depends largely on defining the project correctly from the beginning.

Project phase

1 Original concept

2 Feasibility study

3 Business plan

4 Risk assessment

5 Public enquiry

6 Authorization

7 Organization

8 Planning

9 Design

10 Procurement

11 Fulfilment

12 Test/commission

13 Handover

14 Economic life

15 Disposal

Five-year periods

This is the fulfilment period, when success or failure depends largely on what the project manager does. This is when the contractor expects to make a profit.

This is the fulfilment period, when success or failure depends largely on what the project manager does. This is when the contractor expects to make a profit.

Project phase

1 Original concept

2 Feasibility study

3 Business plan

4 Risk assessment

5 Public enquiry

6 Authorization

7 Organization

8 Planning

9 Design

10 Procurement

11 Fulfilment

12 Test/commission

13 Handover

14 Economic life

15 Disposal

Five-year periods

During the economic life the investor expects to realize benefits and see a return on capital invested.During the economic life the investor expects to realize benefits and see a return on capital invested.

Project phase

1 Original concept

2 Feasibility study

3 Business plan

4 Risk assessment

5 Public enquiry

6 Authorization

7 Organization

8 Planning

9 Design

10 Procurement

11 Fulfilment

12 Test/commission

13 Handover

14 Economic life

15 Disposal

Five-year periods

Successful disposal means dismantling safely, recovering maximum scrap value, and causing no damage to the environment.

Successful disposal means dismantling safely, recovering maximum scrap value, and causing no damage to the environment.

End of Presentation 2End of Presentation 2