Leading Megaprojects

A Tailored Approach

Mounir A. Ajam

• Publisher: Auerbach Publications
• Year: 2020
• ISBN:
  9781000046762
• Edition: 1
• Topic: Technik & Maschinenbau
• Subtopic: Projektmanagement im Maschinenbau

The performance of megaprojects is questionable, and a large percentage of them fail in one dimension or another. The challenges that contribute to these failures are known. Then why do these projects still fail at a high rate? Leading Megaprojects: A Tailored Approach e xamines the challenges facing megaprojects and, more importantly, successes in delivering megaprojects.

To close the performance gaps in megaproject deliveries, the book presents a customizable model that professionals and organizations can use to increase the chance of successful project delivery. To illustrate the model, it uses examples and case studies, primarily from capital projects, with engineering and construction components. The book also explains how the approach can be applied to all projects, regardless of industry or domain.

The book emphasizes the role of leadership because it takes the point of view that megaprojects cannot be successful without great leadership due to their massive size, complexity, number of parties and stakeholders involved, and cost, among other vital factors. Leaders can define the path for a megaproject to guide seasoned managers and project managers to successful closure.

The tailored approach is based on a stage-gate project life cycle model, which covers projects from concept to success. However, it is not limited to a purist form of traditional project management. It is a tailored methodological approach, with an emphasis on leading the work, end-to-end, at the project level, along with the management of every stage of the project. Also, it presents the integration of the business, product delivery, and operations management into a cohesive approach. The book concludes with an in-depth simulation showing how the model is can be tailored to deliver a megaproject successfully.

Part A

Current Reality to Tailored Approach

Section I

Setting the Scene

Chapter 1

Book Introduction

1.1 Something to Think About

I want to start with a provocative statement. Based on my personal experiences and research from various resources with different perspectives, I must ask:

• We know the performance of megaprojects is questionable, and a large percentage of them fail in one dimension or another.

• We know, or maybe we think we know, the challenges that contribute to these failures.

• I believe we do have answers and solutions to minimize, or at least reduce, the percent of failed projects.

• Then why do these projects still fail at a high rate?

I want to be provocative but not sensational.

I know that many claims of failures could be questioned as attention grabbers or to sell services. I understand that some of the reports could be misleading, consciously or subconsciously, or at least shared out of context. I have read academic papers complaining about long-standing theories, yet the same author(s) make alarming claims. I have also read papers that dispute these claims as fallacies. I do not want to get into the academic debate, nor do I want to drag you into it. What we know, and almost everyone agrees on, is that we have a problem, but we might not have an agreement on the size or the root causes of the problems or how to solve them. It is also possible that some practitioners and academics do not believe a solution is possible; I hope that this book will change your mind and theirs.

I know that one of the challenges relates to how we define success and failure as either/or with nothing in between. When we discuss success, we will offer an alternative view. Our view on the questions raised earlier is this: the answers might be due to the knowing–doing gap syndrome (Pfeffer and Sutton, 1999), or is it Einstein’s definition of insanity? I must admit, and agree with Professor Bent Flyvbjerg, that the field of megaproject management is still young, with not enough research or case studies of successful projects to learn from (Flyvbjerg, 2017). I also agree with the professor about the absence of “classics” in this dynamic field of study, based on a variety of reasons. However, I think that one of the biggest challenges is that failure acts as a magnet for media and public attention, whereas success might be overlooked or not shared openly.

In my professional opinion, we need to share more success stories if we want to break the proprietary barriers.

1.2 Why a Book on Megaprojects?

I think the last couple of sentences in the previous paragraph directly, if partially, answer this question. There are not enough references or academic programs on megaprojects. I also think that there are not enough educational programs that depend on practitioners to lead the study of megaprojects. Some of what we have seen or read is questioned because some claims are made without significant empirical evidence. In other words, we have read arguments and counter-arguments and even lack of consensus. However, what many academics and practitioners agree on is that we do have a problem, or many issues, and humanity can benefit from closing the performance gaps.

Massive Projects, Massive Impact

From various studies (as quoted by Flyvbjerg in The Oxford Handbook of Megaproject Management, page 5), globally, the infrastructure megaprojects market is possibly more than $3 trillion, per year. “If we include the many other fields … the market can be $6–9 trillion per year.”

Can you even imagine the positive impact if we could help organizations reduce the failure rate and increase the cost savings and benefits by 10%, even 1%?

What we aspire to here is to provide an excellent reference that presents a model that professionals and organizations can use to increase the chance of success.

The lack of content might exist because managing or leading megaprojects is a humongous endeavor that cannot be covered in a single book or limited to a domain or a degree program. To lead these types of projects successfully would require the vital integration of many fields of studies. These would include governance, engineering, construction, marketing and communication, public relations, project and program management, asset management, and value management—a full list would need more than a page, even without mentioning topics related to the new era of big data, design thinking, and artificial intelligence. Also, the diversity of megaprojects that come from numerous industries prevents or does not facilitate the presence of a “classic” (Pollack et al., 2018).

To lead these types of projects successfully would require the vital integration of many fields of studies.

My view here is not intended to be discouraging or surrendering to the status quo, but to reflect on the current reality and what would be practical. Therefore, despite our aspiration to provide a comprehensive book, it is physically not possible. However, we cannot let this massive undertaking stop us and will endeavor to provide an excellent resource for organizations, executives, and project teams working on megaprojects.

What we aspire to here is to provide an excellent reference that presents a model that professionals and organizations can use to increase their chances of success. Although our examples and case studies might be leaning toward capital projects, with engineering and construction components, the tailored approach that we will present would apply to all projects, regardless of industry or domain—of course, with the proper tailoring.

1.3 The Blockers

In this book, I offer a logical framework, in a simplified and practical language, and with a positive and optimistic message about serving the project management community. However, in this first chapter, I decided to include this part about some of the adverse blockers to progress: those who might accept the status quo or who do not understand the complexity of megaprojects. I will do this via two stories that could be representative of various scenarios across many organizations. The first story is in the text box, in which this senior professional is arguing that the management of a megaproject is like any other project.

Story No 1: Project Management Is the Same

When I started working this book, I shared the outline online on my LinkedIn page. Here are some of the the responses we get:

“I don’t get it—project management is the same, regardless of what we are managing.”

“The biggest problem with project management is trying to reinvent the wheel.”

“I don’t understand, aren’t the project management processes universal? You know, applicable to most projects?”

We all know that the basic principles of project management include concepts like the Plan-Do-Check-Act cycle, which are well known in the quality world. We agree that the basics of management do evolve—partially—around processes or process groups that are generic. We understand that some will argue that project management is common sense. However, to believe that the generic guides or processes are all we need to manage capital projects would be uninformed, to say the least.

Think about this brain teaser: it is common sense not to use common sense on non-common-sense projects. In other words, megaprojects are a different breed. I like a phrase by Professor Bent Flyvbjerg that says, “Conventional project managers should not lead megaprojects” (Flyvbjerg, 2017). Merrow calls megaprojects “fragile” (Merrow, 2011).

The second story is of another senior professional saying, “Organizational systems, project life cycles, stage-gate process are already established, so, Mounir, what value can you add?” I am not sure if this person is questioning my personal abilities, or if he is challenging the thinking that we could not improve performance.

My public answer to these two individuals is this: megaprojects are highly complex, their development and execution are the killers or makers of reputations, their successes and failures could make or break companies and countries. In other words, we need a new way of thinking, a cultural mindset that may require shifting paradigm to tackle these projects. Concerning our abilities to make a change, absolutely, we had made an impact in the past, and we will continue to do so, despite the blockers and naysayers.

1.4 Human Progress and the Giants

Human progress is not limited to inventions and inventors; it is about the human capability to grow and build on each other’s inventions and contributions. I am not sure what percent of what we present in this reference is our invention. I am willing to accept and admit that we are not reinventing the wheel—there is no need to do so. We believe that the components of what exists are good, but we might need a fresh practitioner’s look.* We are proud to say that we aim to build on what came before us, which would empower us to offer a great solution. As Sir Isaac Newton once said, “If I have seen a little further, it is by standing on the shoulders of Giants.” (The Phrases Finder, n.d.). We must accept that we, all of us, can make a difference, and we need the collective knowledge and experience to deal with an essential and massive topic such as megaprojects. Therefore, we know we have learned from others, and we will share our learnings with the proper credits. We know that some of what we present...