CHIANG MAI COURSE - Why FORRU's are necessary / Steve Elliott
Have we lost our way with Controls? - Steve Elliott
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Steve Elliott Have we lost our way with Controls June 2013
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This is one of many excellent presentations given over the last three years of the eVa in the UK series. They can also be found in the archive at: http://evaintheuk.org/archive along with back-copy video footage in http://evaintheuk/pmchannel EVA19, the long established Earned Value conference, has this year described its theme as looking at a project management ‘ABC’ – Agile, Benefits and Complex. The four day event, which returns to the Armourers Hall, runs from the 19th to 22nd of May with the flagship conference being held on 20th and 21st May and workshops before and after. The conference will look at how this ‘ABC’ can be made to work within a portfolio and how agile fits into major and minor projects. It will investigate how to manage the relationship between portfolio benefits and project budgets, and whether complex projects even exist. Conference organiser and APM chairman, Steve Wake says: “Currently there is little evidence that this ‘ABC’ is being effectively deployed and managed. This conference aims to address that concern through EVA’s trademark blend of learning and professional development. Case studies and unusual presentations, delivered by top-notch speakers and experienced practitioners, will again engage and entertain the audience. We’ve used string quartets to illustrate points in the past and this year we will be using a Blues band for the first time.” Speakers across the two days include many familiar faces from the APM events programme including; Adrian Pyne of the APM ProgM SIG ‘Changing the project wasteland with a portfolio culture that works,’ APM Honorary Fellow Tim Banfield Director at the Major Projects Authority and Stephen Jones, Sellafield and Planning Monitoring and Control Specific Interest Group (PMC SIG) and Carolyn Limbert of the APM PMC SIG to talk about agile, benefits and complex. Peter Taylor, the Lazy Project Manager will be presenting on “The project manager who smiled” and the ever popular Stephen Carver will present the leadership lessons that can be learnt from Alfred the Great. In addition, there will be speakers from AIRBUS, TfL, Bloodhound, Heathrow T2 and London Tideway Tunnels. The conference will be supplemented by a number of workshops being held at the Chartered Institute of Arbitrators, Bloomsbury Square on Monday 19th and Thursday 22nd May 2014. 'eVa in the UK' http://evaintheuk.org is building a reputation, brand and a learning legacy for the Project Management Profession. The event series is now in its nineteenth year. It is almost as if it all kicked-off when Steve Wake was in short trousers and knights roamed the land on their chargers! #eva19 is an excellent example of Listening, Learning and Leading #apmLLL in action, and great opportunity for professional development. I would encourage anyone who is interested in 'Building a better Project Manager,' to take a look at the web site, and book your place and get involved.
Transcript of Have we lost our way with Controls? - Steve Elliott
Steve Elliott
Have we lost our way with Controls
June 2013
Outline
Introduction
A simple view of Project Controls
What is success for Project Controls
Have we lost our way? – some observations
Summary & Conclusion
Discussion
Introduction
Over 30 years in engineering & construction projects
Chartered Engineer & Certificated PM – FIMechE, FAPM
First experience of Project Controls in Petrochem with Exxon/Esso
Project Experience
Heavy Engineering & Power, Oil & Gas, Petrochem, Pharmaceuticals
Infrastructure (Airports, Rail, Water)
Worked for contractor, consultant and client organisations
Last 2 years - Programme Controls Director at Crossrail
We cannot change the past
It’s too late to change the present
So we are only left with the future
Isn’t that what Controls is really about ?
What is Project Controls – a simple view
Baseline
Plan
Physical
Progress
Measure
Analysis &
ForecastsCourse
Correction
Review
Knowing what has to be done(Integrated Scope, Cost, Time)
Knowing what has been done(Earned Value)
Knowing how performancecompares to the plan(So What & looking forward )
Recommendingcorrective action(Doing something to make a change)
Reviewing to checkcorrective actions have had an impact(Follow up)
What is Project Controls – a simple view
Risk &Change
What is success for Project Controls
Knowing what has to be done – the plan
Understanding the risks and opportunities in that plan
Knowing what has been done
Knowing what has NOT been done and why
Knowing how performance compares to the plan
Recommending corrective action to achieve the plan
Communicating - at the right time, in the right format
All at an APPROPRIATE level of detail
The IDEAL Scope of Project Controls
Scope Management
Cost Management
Schedule Management
Risk Management
Change Management
Reporting
Contract Management )
Information Management )
Understand why others exclude these
Observations
No 1 -- Lack of appropriate effectiveness models and structures
No 2 -- Dis – integrated Project Controls
No 3 -- Inappropriate levels of detail and unnecessary accuracy
No 4 -- A need to better exploit emerging IM/IT technology
Observation No. 1
Programmes & Projects often lack an Organisational Effectiveness framework
There is no agreed simple, robust structure – much more than a WBS
Scope and structure alignment is left uncontrolled and silo working is rife
Controls professionals need to be at the core of projects to drive this
Culture & Values
Programme Controls Effectiveness Framework
Vision &Objectives
Processes &Procedures
InfrastructureSystems &
Tools
People &Resources
Structure
Client/Sponsors
CorporateStrategy
The 7 Levels of Effective Strategy, Governance & Control
ControlsStrategy
GovernanceModel
Programme & Projectsrequired to fulfil Strategy
Risk Management
Governance
Risk Appetite
En
sure
ali
gn
men
tTo
Str
ateg
y
Structure
Client/ Sponsors
Programme
Sub-Programmes(Projects)
Projects(Contracts)
Sub-Projects or Contracts(of Control Accounts)
Control Accounts(of Work Packages)
Work Packages(of Activities, where the work gets done)
Bo
ard
/Ex
ec
uti
ve
Pro
jec
t M
an
ag
em
en
t
Tas
k
Ma
na
ge
me
nt
Pro
gra
mm
e
Ma
na
ge
me
nt
Str
ateg
y &
Go
vern
ance
Co
ntr
ol &
Rep
ort
ing
Structure
• Fundamental – usually not given the attention it requires
• If not well developed and controlled – control will be virtually impossible
• Challenging in early phases – teams prefer flexibility and will resist
• Misalignment occurs vertically and horizontally
• Its for ALL the programme – i.e. not just a WBS (Typically focused at Levels 5,6 & 7)
Its all about being in control – NOT – being controlled
Observation No. 2
Lack of integrated controls – Commercial, Planning, QS’s – not joined up
Often each discipline has it’s own structure, processes etc.
They could be working on different projects
Dis - integrated Controls
What happened to Cost & Schedule Engineering
Oil & Gas vs. Construction vs. IT -- Worlds apart in approach & capability
Procurers, Planners, Estimators, Contract Administrators, Cost Engineers.
The UK is too focussed on developing specialists
In fact the various Institutions promote this – it’s in their interests to do so
We produce professionals who know more and more about less and less
We need Project Controls professionals – rounded, experienced, multi-skilled
We need standards to drive and ensure skills and competence
Ingegneria Economica
Glaxo -- Stevenage versus Glaxo – North Carolina
One facility cost twice the other – guess which one!
Same Client, similar approach:Client Team + PAE + Management Contractor with LS Subs.
TypicalProjectMeeting
Observation No.3
These 3 feed off each other and create a spiral which is difficult to stop
1 --- A drive for more and more detail – does it mean better control ?
e.g. the 10,000 activity costed programme
2 --- An unnecessary quest for decimal point accuracy
e.g. Anticipated Final Cost £10,925,863,253 --- HS2 – Budget £32.1bn
CPI and SPI 0.957, CPI 0.893 – who is fooling who?
3 --- Reports with pages and pages of data and detail – but little analysis
Funders and Sponsors, usually persuaded by academics and government
quangos often request excessive levels of information and metrics
Greater levels of
detail
Create an illusion of greater
control and accuracy
More data to manipulate & information
to report
Leads to more
resources
Observation No. 4
We must exploit the full power of emerging information technologies
BIM and 4, 5 D models
Portable devices -- still too much paper
Simple to use software – the days of PM tool experts are numbered
There are some really good examples, but they are few and far between
The petrochem/oil & gas/IT sectors are way ahead of construction
What could it be like in the future
• BIM and 4, 5D -- the virtual project world
• Automated progress measurement using intelligent components
• Smart handover of projects to operators and users
• The capture, cataloguing and Intelligent use of life cycle data
• Realtime reporting instead of month end snapshots
• Clients will expect much more automation and less resources
Summary --- Need to focus on the fundamentals & move forward
The application of a robust Strategy, Governance and Control model
Need to develop more rounded Project Controls Professionals
Need to constantly remind ourselves what the real purpose of controls is
Need to develop standards for competency and excellence
Really embrace BIM/4 & 5D technology to improve efficiency
So what should we be doing to address these issues
Do all we can to ensure Programme & Project Controls is at the CORE
We are not an add on function or a support function or a PMO
The pilot/navigator analogy
Carefully consider the level of detail you are getting into
Challenge – why do you need this – remember the first slide – plan/measure/recover
We cant change yesterday or today – too long in the rear view mirror causes crashes
We can and should all develop and broaden our skills
Get involved in other disciplines – planners in cost; QS’s in schedules – radical!
To conclude --- Have we lost our way?
In some areas, I think we have – but we can easily find it again if
we focus on what matters -- the fundamentals
Put more effort in developing rounded PC Professionals
Fully exploit information technologies and emerging devices
And stop wasting precious time, resources and money creating
overly complex, too detailed, fragmented controls environments and
models which don’t provide our Sponsors, Project Directors,
Managers and colleagues what they NEED. Which is :
Knowing what has to be done – the plan
Understanding the risks and opportunities in that plan
Knowing what has been done
Knowing what has NOT been done and why
Knowing how performance compares to the plan
Recommending corrective action to achieve the plan
Communicating it all at the right time, in the right format
Thanks for listening
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