Embracing variation: the true drivers of project delays in complex projects
by David Walter, Executive Director – Innovation & Strategy, Secora
There is a prevailing belief in many organisations that internal variations and changes are the primary causes of project delays. However, I strongly disagree with this notion and can support my position with data. In fact, these variations often serve as the catalysts that push projects out of the stagnation phase, transitioning them from concept to product.
Theoretical Foundations
Complex Adaptive Systems Theory posits that projects, especially large-scale ones, function as complex adaptive systems where multiple interconnected components interact dynamically. In such systems, variations and changes are inevitable and can even be beneficial. These systems thrive on their ability to adapt and evolve in response to new information and changing conditions. Viewing complex projects through this lens highlights the importance of flexibility and adaptability in project management.
Lean Manufacturing and Agile Methodologies emphasise the need for responsiveness to change and continuous improvement. Lean principles focus on minimising waste and maximising value, which includes efficiently managing variations. Agile methodologies, commonly used in software development but increasingly applied in other sectors, prioritise adaptability, customer collaboration, and iterative progress. These approaches advocate for embracing changes and variations as opportunities for improvement rather than obstacles.
Productivity as a Key Component
Productivity is a crucial aspect of project success. In any project, productivity is directly impacted by how well variations are managed. Efficiently addressing variations can lead to higher productivity by reducing downtime, minimising rework, and optimising resource utilisation. Conversely, projects that struggle to manage variations often experience decreased productivity due to constant disruptions and inefficiencies.
Lessons from Other Industries
Automotive Industry: In the automotive sector, companies like Toyota have mastered the art of lean manufacturing, which includes managing supply chain variations and production changes seamlessly. Toyota's Just-In-Time (JIT) inventory system is a prime example of how effective management of variations can lead to higher productivity and reduced delays. The ability to respond quickly to market demands and supply chain fluctuations has been key to their success.
Energy Sector: In my experience working with AGL and other energy providers, we've faced numerous challenges, from supply chain disruptions to workforce issues and regulatory changes. By applying robust project management practices and focusing on adaptability, we've successfully translated conceptual plans into pragmatic and cost-effective implementations. This experience underscores the importance of developing methodologies to handle variations and drive projects forward while maintaining high productivity levels.
Mining Industry: Projects in the mining sector often face geological surprises, equipment failures, and regulatory changes. Companies like Rio Tinto have successfully managed these variations through advanced data analytics and predictive maintenance strategies. By anticipating and planning for variations, they maintain high productivity levels and minimise project delays.
Construction Industry: The construction industry frequently deals with weather-related disruptions, site-specific challenges, and material supply issues. Companies like Bechtel have implemented rigorous risk management frameworks and lean construction practices to handle these variations. Their ability to adapt to changing conditions on-site has led to successful project completions within budget and on schedule.
“Interestingly, while many sectors have embraced flexibility and adaptability as critical components of successful project management, the defence sector appears to be moving in the opposite direction.”
The Risks of the Current Construct
The current construct of focusing on seemingly low-risk projects by strictly adhering to no-design-change policies induces significant risks beyond budget, schedule, and scope. This approach compromises the capability to provide the best tools and outcomes, whether in defence, energy, construction, or any other industry. By prioritizing expedience and perceived low risk, organisations may end up delivering second-rate results, which can have dire consequences in high-stakes situations. Ensuring systems are flexible and capable of adapting to new challenges is paramount. The rigidity in project execution can lead to obsolete or insufficient capabilities being deployed, ultimately putting end-users at greater risk and undermining the strategic effectiveness of the organisation.
Defence Sector Contradiction
Interestingly, while many sectors have embraced flexibility and adaptability as critical components of successful project management, the defence sector appears to be moving in the opposite direction. As highlighted in a recent article in Australian Defence Magazine (ADM) about the Royal Australian Navy’s (RAN) new general-purpose frigate program, Project Sea 3000, the government, not Defence or the RAN, is driving the program with a strict no-design-change policy. This conservative approach aims to ensure timely delivery and budget adherence but may be detrimental in the long run. The inability to adapt to new threats and changing technological landscapes can lead to second-rate military capabilities, compromising the safety and effectiveness of defense personnel in conflict scenarios. For example, the program's strict adherence to base designs without modification limits the ability to incorporate new technologies like the CEA radar and Saab Australia 9LV Combat Management System, which are critical for modern naval operations. This focus on low-risk, rigid project execution contrasts sharply with the adaptive strategies that have proven successful in other industries and may ultimately undermine the strategic goals of defense projects .
Secora: Your Solution Partner
At Secora, we specialize in providing tailored solutions that enhance project management capabilities, particularly in the face of variations and unforeseen challenges. Our approach integrates the principles of Complex Adaptive Systems Theory, Lean Manufacturing, and Agile Methodologies to deliver robust and adaptable project management strategies.
Risk Management and Contingency Planning: We help projects incorporate comprehensive risk management and contingency planning. Our expertise enables projects to anticipate potential variations and devise strategies to mitigate their impact, maintaining momentum and productivity.
Stakeholder Engagement and Communication: Secora fosters transparent communication and active engagement with all stakeholders. By cultivating a culture of openness and shared responsibility, we help projects navigate changes collaboratively, ensuring alignment with overall objectives and enhancing productivity.
Continuous Improvement: We advocate for a mindset of continuous improvement, helping projects learn from variations and adapt accordingly. Our regular feedback loops and iterative progress reviews identify areas for enhancement, ensuring projects remain on track and productive.
Conclusion
Let’s shift the narrative and focus on enhancing our ability to manage the inevitable variables that arise in complex projects. By partnering with Secora, you gain access to our extensive expertise and proven methodologies. We can drive your projects forward more efficiently and effectively, leading to better outcomes for all stakeholders involved and fostering a culture of resilience, adaptability, and productivity in project management.
Together, we can turn challenges into opportunities for growth and success.