Paris, October 17th, 2016. Ian Heptinstall, co-author of “The Executive Guide to Breakthrough Project Management, Capital & Construction Projects on-time in less time, on budget at lower cost without compromise” (full title), was there to deliver his conference on the subject.
Before you turn away thinking this has nothing to do with my industry, you should ask yourself if yours too struggles to deliver on time, in full, on budget. If yes, the ideas shared in this conference should be of interest, whatever your trade is.
Ian’s claim is to introduce a way to deliver in less time and less budget, without compromising on scope, quality and risks, no longer trading off.
The time indications are related to the video
Many project managers do not realize their projects go wrong, but several studies show that most (capex) projects do not fulfil their requirements (2:26). Ian goes through the major reasons at macro and micro level for projects to miss all their targets. Three issues are found at the heart of the problem (8:10); the way to contract, the way to plan and the way to execute.
Ian, together with co-author Robert Bolton, believe they’ve found an easy, repeatable and sustainable way to overcome these issues. The shift from traditional project management to Breakthrough Project Management is presented from 10:00.
Among the things to change is the methodology shift to Critical Chain Project Management (CCPM) briefly introduced at 14:32. The project’s monitoring Fever Chart is explained at 22:20. The proven CCPM methodology will face a major obstacle: the way of contracting and purchase (26:06).
The new way to consider contracting is introduced at 29:16 and starts with the issues related to fixed pricing. For instance, complex problems involving high-tech or some new technology are tricky to estimate in terms of costs. Second, buyers want to have fixed prices. Contractors subcontract and ask for fixed prices as well. The buyer is usually the winner on the expenses of the contractor.
Instead of a hierarchy of contractors, the new approach promotes alliancing, i.e. putting stakeholders in a single team aligned onto a common goal and paid in the same way: “cost-fixed-variable” (34:17). Cost are expenses to be covered, without markup. The fees are fixed and variable and not related to costs. The only way for the partners to make more money once the project is started is to get the variable fees, thus have a successful project. What the success is made of is left to the client to decide: time, quality, safety.. This changes the team members behaviors.
The characteristics of project alliances are summarized at 37:45. Project alliancing does not mean the bidding is not competitively sourced (39:10).
The conference summary is presented at 39:50.
The whole conference is presented in a lively way, with some funny and true everyday’s examples of the ridiculous requirements or expectations in traditional project management. It makes the conference anything but boring!
Being knowledgeable about Critical Chain Project Management (CCPM), it is not the CCPM discovery that raised my interest, but the simple way Ian presented it. It is consistent with the book’s aim: being an executive guide, thus give concise necessary insight and explanation, without boring the audience.
Alliancing was new to me and raised my interest, reminding the issues I’ve seen with the usual hierarchical buyer-supplier relationship.
Finally, I’ve found the whole conference (content and presentation) worth a post to promote it. I hope it will do.Follow @HOHMANN_Chris