learning across megaprojects€¦ · we are ipma 8 ® the project world becomes the megaproject...

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We are IPMA 1 ® Learning Across Megaprojects A Joint MEGAPROJECTS and Omega Centre Workshop COST Office Brussels, 02 April 2014 Prof Mladen Radujkovic, IPMA President

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Page 1: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 1 ®

Learning Across Megaprojects A Joint MEGAPROJECTS and Omega Centre Workshop

COST Office Brussels, 02 April 2014

Prof Mladen Radujkovic, IPMA President

Page 2: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 2 ®

345 years of tradition

1669. Leopold I Habsburg issued a

decree granting the status and privileges of a university to the Jesuit Academy of the Royal Free City of Zagreb

• 29 Faculties

• 3 Art Academies • 65.000 students

• 7.500 teaching and

administrative staff

Prof. Mladen Radujkovic, University of Zagreb, Croatia

• about 4.000 bachelor students/year

• about 7.500 masters students/year

• about 400 doctors of science/year

Page 3: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 3 ®

We are IPMA!

International Project Management Association

Prof. Mladen Radujković, IPMA President

v10

Page 4: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 4 ®

IPMA: Leading the way World’s first International PM organization

Formerly named INTERNET (1965)

First with role-based, competence- assessed PM certifications

Awards for Project Excellence

Organisational competence certification A Partner for Project Management

knowledge, competence and performance Alliances with those having

complementary visions.

Page 5: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 5 ®

IPMA: Leading the way PROJECT, PROGRAM, PORTFOLIO

Research

Education and Training

Young Crew

Events

Standards

………

Visit www.ipma.ch

Page 6: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

6

IPMA – coverage

Individual countries

Page 7: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 7 ®

Megaprojects : Success or Failure ?

International Project Management Association

Prof. Mladen Radujković, IPMA President

Page 8: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 8 ®

The Project World becomes The

Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested

by adavance The expectation is that it will grow to 20.7%

of the GDP or 22,3 trillion in 2016. (8.600 EUR

/year/person included all from newborn to senior)

(Advanced Economies Investment Statistics

http://www.economywatch.com°

In 2006: 24.4 million project-oriented employees in

projectized industries and 2016: 32.6 million (31% of

them new employees since 2006). Equates to 1.2 Million

jobs annually (Anderson Economic Group, 2006.)

Project Manager is marked like key job in 21st century

(Fortune Magazine, USA, 1999.)

Page 9: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 9 ®

Megaprojects Performance

• Survey of 300 global megaprojects (1B USD

+ ; 0,5B EUR+) shows that 65% failed to

meet expected objectives

• When facts overcomes fiction the consequences

are huge cost overruns, delays, missing revenues,

crippling debt, and, to add insult to injury often

also negative environmental and social impacts (B.

Flyvbjerg, Harvard Design Magazine, 2005.)

• Megaproject failure – Community failure,

because it not just simple delivery, but

rather “community future creation”

Page 10: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 10 ®

Why Megaprojects Fail so Often ?

• Greed : We want to keep it all!!!

• Schedule pressure : We want it now !!!

• Gap : We want project to move, we shall adjust

business case later.

• Up front spending: Skimping on the front-end

definition.

• Cost cut policy: We reduce 20% of that number!

• Risk strategy : We transfer risks to contractors!!

• Beat and fire people: We shall immediately fire

those who are overspending !! • (adopted from Edward Merrow : Industrial Megaprojects, J. Wiley 2011.)

Page 11: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 11 ®

Why Megaprojects Fail ?

• Missing element : vision, alliance, government,

approval, management, ...

• Missing 3D approval approach : Business –

Community – Environment – Underestimated costs and Overestimated revenues (B),

– Overvalued development effects, (C)

– Underestimated environmental impacts (E).

• Misbalanced stakeholder approach :

Balance of project pushing and controlling

processes (better-bigger-cheaper vs. risk-change-

constraint control)

• (Prof. Mladen Radujkovic – at Panama Canal Congress 2012.)

Page 12: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

IPMA Practice in Megaprojects : Individuals, Projects and Organizations

International Project Management Association

Prof. Mladen Radujković, IPMA President

Page 13: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

®

IPMA Practice in Megaprojects : Individuals

Prof Mladen Radujkovic, IPMA President

Page 14: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 14 ®

IPMA Standards

The ICB3 standard proves its value to PM practitioners and our stakeholders.

IPMA OCB is standard for organizations. It

highlights PM knowledge, and the key competences expected from managers of:

– Projects – Programmes – Portfolios

Page 15: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 15 ®

Demonstrating PM competence

The Progression: 1. Classes introduce Knowledge 2. Application leads to Skill 3. Reinforcement, plus Inter- personal Skills: Attitudes 4. Experience and adaptation generates PM Competence 5. Review proves Performance

5 Performance

4 Competence

3 Attitudes

2 Skill

1 Knowledge

The Result? Business Benefits

Page 16: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 16 ®

IPMA’s advanced PM certifications IPMA does offer an exam-based certification: – IPMA Level D® Certified Project Management Associate

IPMA’s Advanced Certifications engage profess-ional assessors to assess PM Competence: – IPMA Level C® Certified Project Manager – IPMA Level B® Certified Senior Project Manager – IPMA Level A® Certified Projects Director, Portfolio Manager, or Programme Manager

A Role-based Certification Suite

Megaprojects

Page 17: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

®

IPMA Practice in Megaprojects : Projects

Prof Mladen Radujkovic, IPMA President

Page 18: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 18 ®

IPMA International PE Awards

Objectives: Increase the recognition of projects from different

countries, different industries and different

organizations and to motivate project teams to

develop and improve project management.

Identify projects that are qualified to be examples of

excellent project management

supports professional project management as a

way to achieve greatness

Special attention to MEGAPROJECTS

Page 19: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 19 ®

IPMA Project Excellence Award -

Based on the Excellence Model

Evaluates Project Processes and Results

Awards offered in several categories, since 2002

Award offers prestige for the project, the recipient

organization, and the nation, all major industries

Leadership

(80)

Goal

orientation

(140)

Processes

(140)Employees

(70)

Resources

(70)

Project management (500) Project results (500)

Satisfaction other interested

parties (60)

Employees satisfaction (80)

Client satisfaction (180)

Results

(180)

Innovation and learning

PROJECT EXCELLENCE (1,000)

Page 20: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 20 ®

Project Excellence Criteria

Taking applications for the Awards Celebration, held at

the IPMA World Congress, October 2012 Crete, Greece.

Megaprojects

Page 21: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

IPMA Project Excellence Awards Winners

Winner 2013

SIVECO Romania SA,

Optimizing the Educational Process in Line with

the Knowledge Based Society Competencies

Thales Opthronique S.A.S., France

BELLA Laser System,

South Australian Water Corporation,

Australia with Adelaide Desalination Project

PetroChina Guangxi Petrochemical Company,

China

Guangxi Petrochemical Company 10 MMT

Refinery Project,

Winner 2012

Sberbank of Russia

Basic Product

Winner 2011

GE Oil & Gas - Contractual

Services, Italy

Qatar Modular Replacement

Winner 2010

CNOOC Huizhou Refinery, China

CNOOC Huizhou Refinery Project

Siemens, Germany

Velaro RUS

Winner 2009

Siemens, China

Beijing T3 Airport Expansion Project

Petrom, Romania

Well Modernisation Program

Winner 2008

Foster Wheeler Italiana SpA,

Italy

Lomellina 2 Project

Winner 2007

Jiangsu Sopo (Group) Co. Ltd., China

Technological Revamping Project of 150,000 t/a

Acetic Acid

Winners 2006

Chinese Academy of Space

Technology

Shenzou 6-Manned Spaceship

T-Systems International, Germany

Project: TDN REWE IP-VPN 2

Winner 2005

NTPC Ltd. India

Simhadri Power Project

Winner 2004

T-Systems Spain

Open Administration of Cataluña

Winner 2003

UBS AG

IT Wrap Program

Winner 2002

Fluor Daniel B.V.

ROG AOP-II Project

Page 22: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

®

IPMA Practice in Megaprojects : Organizations

Prof Mladen Radujkovic, IPMA President

Page 23: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 23 ®

IPMA Delta assessment and certification of organisations

360 assessment of: Individual competences Project results & PM application Organisational PM competence

Environment

Process

Strategy

Structure

Culture

Organisational PM Competence

€ $

Megaprojects

Page 24: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 24 ®

Supporting Continuous Development

Initial

The achievements of Project Management are at a personal level. There are individuals who perform well, but PP&P performance is coincidental. The organisation has no formal PP&P standards, structures and processes in place

Defined There are partially defined PP&P standards, structures and processes in place which are partially applied in the organisation

Standardised There are fully defined PP&P standards, structures and processes in place which are mostly applied throughout the organisation

Managed There are fully defined PP&P standards, structures and processes in place which are fully applied throughout the organisation, which the Management actively controls

Optimising There are fully defined PP&P standards, structures and processes in place which are fully applied throughout the organisation, which the Management actively controls and continuously improves.

Page 25: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 25 ®

IPMA Delta Outcomes

Assessment of actual state in project management

Certification against desired competence class

Independent assessment, and certification of the

organisation, selected projects, and individuals

Identification of areas for improvement a basis for

organisational and personal development

Identification and comparison of Best Practices

Page 26: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 26 ®

IPMA Delta Benefits

Know areas for improvements to lever performance

in project management -- in all dimensions

Learn from experienced local and international

assessors applying proven standards

Show management attention and commitment for

project related work

Align projects with corporate strategy

Improve competitive market position

Page 27: Learning Across Megaprojects€¦ · We are IPMA 8 ® The Project World becomes The Megaproject World In 2010 , 18,6 % of GDP or EUR 15,9 trilion, was invested by adavance The expectation

We are IPMA 27 ®

Visit our website:

www.ipma.ch

[email protected]

International Project Management Association

Prof. Mladen Radujković, IPMA President

IPMA: Moving society forward