A recent survey done by McKinsey reveals that on average, projects overrun their budgets and schedules by 30 to 40%.
Their model “Capital Excellence Projects 5.0”, which is not new, has 6 dimensions and they proclaim a potential to deliver projects 30 to 50% faster and at better returns.
The basis of the model is to establish an ecosystem of partners built on trust, transparency, and a common goal to execute the other dimensions.
This is achieved by:
#1: finding the right partners
#2: working together on a fair and transparent contract
#3: designing and establishing a joint governance model
Anyone who has been involved in a capital project that was on the verge of failure knows how difficult it is to turn one around and get it back on track.
There are a lot of reasons why a project might go wrong like inappropriate project organization, problematic procurement or contracting strategy, poor communication, wrong stakeholder management, insufficient or inappropriate resources, scope creep, insufficient planning, project controls or risk management to name but a few.
So, it’s not only top-down project structures, lack of trust or transparency that make a project fail. Focusing purely on an “ecosystem of partners” is too short thought for me. What is so promising about it and guarantees success?
Getting stumbling projects back on track takes more than that, because rebuilding lost trust is a long process – as is changing legal and contractual agreements. Our many years of project experience show that the purely legal consideration and interpretation of contracts in the project business has never led to project success.
In contrast our experience shows that it will take more than that: far-reaching restructuring measures in many places, competence and experience and investment in digitalization based on a holistic project understanding.
We have already proven many times that we have brought projects that were on the verge of collapse safely to completion with our holistic project approach.
PM&C: Competence for your project!