People and Organization (P&O)

Vignesh Sivadass

MANG6311-Week10-ProjectSuccess-Bb-07Dec21.pdf

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Project Success/Failure

‘On time, On Budget, On Specification:

Would these be ENOUGH?!’

MANG6311©RV2021-22 1

Southampton

Business School

MANG6311 PM – People & Organizations

Week 10

Dr Ramesh Vahidi 7th Dec 2021

Sydney Opera House

A Disaster or

A Masterpiece?

2MANG6311©RV2021-22

SOH - Project Overview

• 1957: Jørn Utzon won the bid

• 1959: Work commenced on Sydney

Opera House

• 1966: Utzon resigned

• Original estimate of the project

duration: 4 years

• Original cost estimate: $7 million

• He was awarded £5000!

• 1973: Opening of the Opera

House

• SOH opened without him

• Project’s real duration:

14 years

• Final cost: $102 million

Goal

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Changing the World’s perception of Australians from ‘sport-mad’ to ‘vigorous cultural and intellectual’ people

https://vevox.app/#/m/111-694-793

Success 111-694-793

MANG6311©RV2021-22

Project Success/Failure

Question

•1. You are an Australian in 1950-60s: Is

Sydney Opera House a success or a failure?

https://vevox.app/#/m/111-694-793

SOH - A Controversial Construct

• Wonderful exterior

• Innovative design

• Brilliant interior

• A major tourist attraction

• Unworkable physical

properties

• Not even suited for opera!

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Project Success/Failure

Question

•2. You are an Australian in 2000s: Is Sydney

Opera House a success or a failure?

https://vevox.app/#/m/111-694-793

Success/Failure 111-694-793

https://vevox.app/#/m/111-694-793

MANG6311©RV2021-22 7

Projects succeed and fail in any field, industry, discipline, country, environment, … (So do the Non-projects)

Is there any difference between success/failure in Operational vs. Project environments?

“Project management differs from the conventional line

management [RV: refers to operations or non-project

works] in many ways but particularly, in one most vital

respect: A project has but one chance of success,

whereas with conventional line management [RV: same as

previous notes] there is always the opportunity to “do

things better next time.” (Kharbanda and Stallworthy,

1984) Failure to recognize this vital difference has been

one of the main factors in project failure.”

(Kharbanda and Pinto, 1996, p.21)

MANG6311©RV2021-22 8

Aims

“Providing you with various traditional and contemporary dimensions

of and perspectives on project success and failure.

Learning the shortcomings and imitations of the traditional models.

Introducing a structured framework for comprehensive analysis and

management of project success and failure.”

MANG6311©RV2021-22 9

We will talk about

✓ Evolution of project success studies.

✓ Impact of time in assessing project success/failure.

✓ Structured and multi-perspective analysis of success/failure.

✓ Steps of failure management.

✓ Value of Lessons learned in project success/failure.

MANG6311©RV2021-22 10

MANG6311©RV2021-22 11

“Evolution of

Success/Failure

Studies in PM

literature … ”

Southampton

Business School

Most Traditional Perspective on Project Success

Since 1950s!

Time

Cost Quality or Performance

MANG6311©RV2021-22 12

“The basic view of how project success is

measured is that the project is finished

on time, within budget & to quality. It is

sad how people thoughtlessly trot this

out as the measure of project success.”

Turner et al. (2010, p.81)

Reminder (Week 1)

Traditional Approaches: Examples of Triangle Extensions

The Square Route (Atkinson, 1999)

Triple Constraints (Hamilton, 2001)

Tetrahedron (Davis, cited in Wideman, 2004)

The Tetrad Trade-off (Wideman, 2004),

The Project Pyramid (Marasco, 2004)

MANG6311©RV2021-22 13

Lock’s amalgamated version (Lock, 2013)

(Vahidi & Greenwood, 2009)

Success/Failure in PM Literature

Large number of projects widely studied in the last three-four decades.

Major improvements in PM theories and practices.

More and more attention to soft and external aspects/dimensions.

Multiple views on what constitutes project success or failure. (Gives you a very brief overview: Pinto et al., 2021 )

Some major organizations publish regular reports on (their) projects failure/success (e.g., UK Gov.’s report on Major Projects and Standish Group on Software projects → See the ref list)

For a comprehensive list of previous key studies and their specifications refer to: Morris (2013, p.287).

MANG6311©RV2021-22

Later Approaches: Project Success – Concepts for Analysis

MANG6311©RV2021-22 15

*Also referred to as: “Critical Success Factors (CSFs)”

Helps in: Identifying and selecting

appropriate PM methods, tools,

resources, …

Assess whether: The selected PM methods, tools,

resources, … were appropriately selected &

implemented or not.

Later Approaches: Examples of Critical Success Factors (CSFs)/Elements Lists (also more focus on industry CSFs)

Belassi and Tukel (1996, p.145) MANG6311©RV2021-22 16

Question/Criticism:

Could these models cover all the elements of

project success?

…

This is the major difference between the traditional

approaches and more contemporary ones.

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Later Approaches (Major Finding): Differences in Perspectives on Success/Failure

MANG6311©RV2021-22 18

Stakeholders have different:

• Expectations of the project outcome;

• Perceptions of success;

Hence, have different:

• Criteria for measuring/assessing

success;

• Factors to affect their success;

Project Success/Failure

Questions:

• You are an Australian in 1950-60s: Is Sydney Opera House a success or a failure?

• Would you hold the same view if you were:

– Utzon;

– Australian or Local Gov.;

– Engineers;

– Australian Society in 1960s;

– …

MANG6311©RV2021-22 19

MANG6311©RV2021-22 20

Question:

Could a list of success factors/criteria be all inclusive for all

projects and all stakeholders?

Read the chapter on “Contingency School of

Thought” from Turner et al. (2010)

Comprehensive Approach – (basis for Contemporary): Shenhar and Dvir’s (2007, p.29) Main Dimensions (Measures) of Success

Project Success

Efficiency Impact on customer

Impact on team

Business and direct success

Preparation for future

MUST READ: Shenhar and Dvir (2007, p.27) 21

MANG6311©RV2021-22

Meeting Schedule Meeting Budget Yield Other efficiencies

Meeting Requirements & specifications

Benefits to customer

Extent of use Customer

satisfaction and loyalty

Brand name recognition

Team satisfaction Team moral Skill development Team member

growth Team member

retention No burnout

Sales Profit Market share ROI Cash flow Service quality Cycle time Organizational

measures Regulatory

approval

New technology New market New product line New core

competency New

organizational capability

MANG6311©RV2021-22 22

Changing Perception of Success: Impact of Time

Project Success

Efficiency Impact on customer

Impact on team

Business and direct success

Preparation for future

MUST READ: Shenhar and Dvir (2007, p.30) 23

MANG6311©RV2021-22

Short Medium Long

Timeframe for Assessing Success DimensionsProject Completion

Strategic PM

Project Success/Failure

Questions:

In 2000s, who feels the project has been a success:

– Utzon;

– Australian Gov. or Local Gov.;

– Engineers;

– Australian Society;

– …

MANG6311©RV2021-22 24

Project Success

Efficiency Impact on customer

Impact on team

Business and direct success

Preparation for future

25 MANG6311©RV2021-22

Assessing Success Dimensions: Sydney Opera House

D I

M E N S I O N

S/ M/ L

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Project Success/Failure

Question

•3. Sydney Opera House: Which dimensions

did the project fail in?

https://vevox.app/#/m/111-694-793 Success/Failure

111-694-793

https://vevox.app/#/m/111-694-793

27MANG6311©RV2021-22

Project Success/Failure

Question

•4. Is a project like SOH a success or failure?

https://vevox.app/#/m/111-694-793 Success/Failure

111-694-793

https://vevox.app/#/m/111-694-793

28MANG6311©RV2021-22

Project Success/Failure

Question

•

5. As a PM professional-to-

be, which one of the views

you would take to manage

and analyse the

success/failure of your

projects?

https://vevox.app/#/m/111-694-793 Success/Failure 111-694-793

Project Success/Failure

Question

•

If your answered 1-3: you will

need to spend a good time on

in-depth reading of the sources

on the reference list. Also

review the Lecture/readings

from Week 1 very carefully.

https://vevox.app/#/m/111-694-793 Success/Failure

111-694-793

https://vevox.app/#/m/111-694-793

“Success/Failure

Studies in PM

literature … ”

Southampton

Business School

Valid Reports on Projects’ Contribution to Economy:

Examples of UK:

- Project management industry adds £156 billion of value to UK economy (15 April 2019 Consultancy.uk) https://www.consultancy.uk/news/20997/project-management-industry-adds-156-billion-of- value-to-uk-economy

- National Infrastructure Delivery Plan 2016–2021

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/ file/520086/2904569_nidp_deliveryplan.pdf

- Government reports on Major Projects at the end of 2013: Delivery of 95% of the government’s policies through 191 major projects, worth £354 billion:

– Some historical reasons for major projects failure in meeting their set expectations: • Poor (internal) project management;

• External factors;

• Over-optimism in estimations;

– Some of the main reasons for failure in estimation were weaknesses in: governance; stakeholder management; initial approval; quality; skills and resources management, etc.

Read and look for more in your study time

https://www.consultancy.uk/news/20997/project-management-industry-adds-156-billion-of-value-to-uk-economy

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/520086/2904569_nidp_deliveryplan.pdf

Example of Reports: Success/failure in IT Projects

Factors in increasing success:

“… looking at the entire project environment of processes,

methods, skills, costs, tools, decisions, optimization, internal

and external influences, and team chemistry.”

(The CHAOS Manifesto, 2013, p.1) Interesting reports are published by Standish Group but not all in public domain anymore. Read specifically if you are analysing a software project. (Thinks: Is their perspective traditional or contemporary?

Read and search for examples in your study time

Professor Peter Morris - UCL

In 1980 Prof. Peter Morris found out project

overruns were mainly associated with “contextual

things like stakeholders, geographical conditions,

weather and other exogenous factors, as well as

poor technology management, commercial issues

and people (Appendix 1)”. (Morris, 2013)

MUST Read:

Appendix 1 from the following textbook: http://site.ebrary.com/lib/soton/reader.action?ppg=313&docID=10674845&tm=141 7723442478

Example of Literature: Projects Failure Rates

http://site.ebrary.com/lib/soton/reader.action?ppg=313&docID=10674845&tm=1417723442478

“Failure Happens! … ”

Southampton

Business School

Case Study

Walkie-Talkie Skyscraper

Located in London

£200m building

Curved 37-story

Was due to open early 2014

Became a tourist attraction in

Sept 2013!

https://www.youtube.com/watch?v=TGnZz8-PvdY

Walkie-Talkie Skyscraper

https://www.youtube.com/watch?v=TGnZz8-PvdY

Concave shape: curved mirror & downdraught

Beams of light up to 117 °C: Melted metal, plastic parts, cooked eggs, …

Strong wind tunnel: Blown away people, shopping trollies, …

Winner of London’s worst building of the year 2015

http://www.bloomberg.com/news/2013-09-05/london-s-walkie-talkie-fryscraper-draws-crowds-in-heat.html

http://www.dezeen.com/2015/07/23/walkie-talkie-skyscraper-rafael-vinoly-blamed-powerful- downdraught-london/ http://www.theguardian.com/artanddesign/architecture-design-blog/2015/sep/02/walkie-talkie- london-wins-carbuncle-cup-worst-building-of-year

Skyscraper or Fryscraper

http://www.bloomberg.com/news/2013-09-05/london-s-walkie-talkie-fryscraper-draws-crowds-in-heat.html

http://www.dezeen.com/2015/07/23/walkie-talkie-skyscraper-rafael-vinoly-blamed-powerful-downdraught-london/

http://www.theguardian.com/artanddesign/architecture-design-blog/2015/sep/02/walkie-talkie-london-wins-carbuncle-cup-worst-building-of-year

A project representative: “very strange phenomenon and certainly not something we were expecting to happen”.

Guardian (cited in Bloomberg Business): “A hotel and spa In Vegas designed by the same designer produces a similar effect because of its curved shape!!”

http://www.bloomberg.com/news/2013-09-05/london-s-walkie-talkie-fryscraper-draws-crowds-in-heat.html

Lessons Learned: Do we learn?

http://www.bloomberg.com/news/2013-09-05/london-s-walkie-talkie-fryscraper-draws-crowds-in-heat.html

Lessons Learned: How far we learn? What

we learn?

http://www.dezeen.com/2015/07/23/walkie- talkie-skyscraper-rafael-vinoly-blamed- powerful-downdraught-london/

“Following the string of complaints about

the Walkie Talkie and other skyscrapers,

The City of London Corporation is now

demanding independent assessment of

the wind reports submitted at the

planning stage, at property developers'

expense.”

http://www.dezeen.com/2015/07/23/walkie-talkie-skyscraper-rafael-vinoly-blamed-powerful-downdraught-london/