ISSUE 27: DECEMBER 2017
CONNECT BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
In this issue: The ICCPM Story: 2015 - 2017 Delivering Effective Projects In Uncertain Times
The Modern Executive Board: Driving Complex Project Success
Dealing with Complexity in a Soft Outcome Project Environment
Social Complexity in Collaboration
Collaborative Contracting in Complex Environments
CONTACT US STAFF Deborah Hein Managing Director & CEO Collin Smith Deputy CEO Diane Hope Business Manager Marissa Ayala Marketing Communications Ian Biggs Certification Project Manager ICCPM BOARD Alicia Aitken, Chair Simon Henley Mary McKinlay Deborah Hein Harry Bradford Ian Mack Phil Crosby Tim Banfield International Centre for Complex Project Management Ltd (ICCPM) PO Box 327 Deakin West ACT 2600 AUSTRALIA Level 2, Equinox 3 70 Kent Street Deakin ACT 2600 AUSTRALIA +61 2 6120 5110 admin@iccpm.com https://iccpm.com Twitter: @iccpm LinkedIn Company Page
The views expressed by contributors to this magazine are solely their own and ICCPM accepts no responsibility or liability for these views.
Š ICCPM 2017
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CEO MESSAGE Another year is drawing to a close! 2017, our 10th year of operation, has been a very busy one for everyone I’m sure and we are all due a break of some description. Looking back and reflecting on what we have done this year is very important as is looking forward to next year and the opportunities that it will bring. As with all good things at some stage change is inevitable and it is now time for me to step down from my role in leading ICCPM as the CEO and hand over to the next person who will be charged with taking the organisation forward. I believe that I have done what was asked of me by the Board in stabilising and consolidating the organisation and it is now time for me to move on to the next challenge in my career. I have thoroughly enjoyed my time as the CEO of ICCPM with all of the ups and downs (I must say more ups than downs!) and I commend the organisation to you. I hope that you will all support Collin Smith as he steps up into the role of CEO as you have supported me. What I have noticed this year more than expected, is the increased level of acceptance in the management community (including project management) that this idea of complexity that we have been talking about for the past 10 years is actually a thing - I believe we have reached the tipping point. The participation in our education delivery is a testament to that view in that people are recognising that they need a different set of skills to enable them to work more productively in their environment that is increasing in complexity constantly. We now have a significant number of people who have participated in our programs, over 300, with a good number actually completing the assessments and receiving their certificates.
Further, we were so very pleased to be able to spend time with over 150 AIPM members at their Annual Conference when we hosted the Complex Projects Summit, again a strong demonstration specifically from the PM community. Internationally the success of roundtable events speaks volumes to the willingness of our community to give of themselves in order that others may learn, and my sincerest hope is that such support continues. I firmly believe that I leave the organisation in a very strong and positive place and as with most things timing is everything. To my wonderful staff Collin, Ian, Diane and Marissa (new to us and is a powerhouse of communications and marketing energy!) and to those who have gone before, Thu, Kate, Cathy, Erin, and Corrine I am so very grateful to have had such dedicated and committed people to work with during my time leading ICCPM, you should all be very proud of the contributions you have made
toward making the organisation a great success.
As always we value your feedback, let us know if there is something you would like covered, and more importantly if there is something you would like to contribute. Happy Holidays, Deb Hein, CEO
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
CONTENTS NEWS
RESEARCH
ICCPM Staff and Board Changes
4
ICCPM Welcomes New Fellows
5
Industry News and Events
6
Al Volpe’s Obituary
8
ARTICLES Delivering Effective Projects in Uncertain Times 10 The Modern Executive Board: Driving Complex Project Success
14
Collaborative Contracting in Complex Environments
16
Social Complexity In Collaboration
26
Call me Commish; dealing with complexity in a soft outcome project environment 28
Outcomes from Next Generation Engagement Project
30
Women in Major Project Leadership
31
EDUCATION Education Update
32
Training Calendar
33
ICCPM NETWORK Member Profile: Alison Lee
34
Fellow Profile: Nandini Srikantiah
35
LINKS & EVENTS Food for Thought
37
Event Calendar
38
THE ICCPM STORY PART FOUR 2015 - 2017
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Our Next 10 Years
24
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NEWS ICCPM Board and Staff Updates Alicia Aitken ICCPM Board Chair We are very pleased to announce Dr Alicia Aitken as the new Chair of the Board of Directors, Alicia replaces Mr Harry Bradford who has provided exemplary service as Chair since November 2015. ICCPM Managing Director and CEO, Deborah Hein said, “Harry has provided me with sage counsel and wonderful humour in some trying times and I thank him very much for that.” Harry will continue to be active as both a Director and a Fellow of ICCPM. Alicia took over the role at the conclusion of this year’s AGM on the 26th of October. Alicia has recently commenced a Transformation and Change Delivery role at ANZ Bank. Previously, she was Telstra’s Chief Project Officer, responsible for ensuring successful project delivery across the capital investment program. Prior to these roles Alicia has worked extensively with organisations across the globe to assess and develop their organisational project management capability
Julie Dunlap has resigned as a Director at the end of her current term. “During her four years on the board Julie has been the benchmark contributor. Julie is a fantastic board member, she engages in a constructive way and genuinely cares about what she does. We have appreciated her contribution and engagement”, said Harry Bradford.
J Julie Dunlap has resigned as Director at the The aICCPM Board of Directors is made up of a end of her current Chair, Deputy Chair,her MD/CEO and up to six Nonterm. During Executive Directors and is ultimately responsible for the strategic direction of the organisation. Read Full Media Release Announcement Here
Marissa Ayala ICCPM Marketing Communications Marissa comes from a strong background in customer relationship management, working across a variety of roles in the service industry. Marissa has completed a Bachelor of Commerce (International Business & Marketing) and a Masters in Business (Integrated Marketing Communications). Marissa has completed several marketing and communications projects and consultancy work in Australia and Canada. She also completed an Internship at Ogilvy Public Relations Worldwide, working across the social media and public relations teams. Outside the office, Marissa enjoys cooking and baking and plays social netball and soccer as an opportunity to relax with friends.
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ICCPM Welcomes New Fellows David Pitchford, CBE LVO ICCPM Fellow ICCPM Board and Staff would like to warmly welcome and congratulate Adjunct Professor David Pitchford, for joining the ICCPM Fellowship Program. David has over 30 years experience at the level of Chief Executive of both public and private sector corporations throughout the world and is a global authority on the development and successful delivery of Major Urban Transformation Projects. Currently the Principal of “The Right Pitch”, a global Specialist Advisory consultancy in complex Major Projects, David’s primary focus is on understanding and operating effectively within the nexus at the top levels of management in both the private and public sectors. His advisory firm also has strong capabilities across the entire spectrum of critical imperatives of successful complex Major Projects, in particular, the elusive challenge of building the best possible bid and the most powerful way to pitch it.
David is a leading authority in all aspects of Portfolio Management with particular emphasis on Project Leadership, assurance and control. A professor of Practice at the University of NSW, David is also strongly embedded within the Australian University Sector. Read Full Media Release Announcement Here
Stephen Whittle ICCPM Fellow ICCPM Board and Staff would like to warmly welcome and congratulate Dr. Stephen Whittle for joining the ICCPM Fellowship Program. Stephen is currently the Managing Director of Bustech Solutions in Adelaide, South Australia supporting an extensive career history transforming organisations for increased productivity through managing their crititcal business and ICT projects. Passionate and highly motivated, Stephen is leading change management initiatives to cater for evolving environment requirements and new technologies. Stephen is seeking to contribute to the field of complex project management, developing new tools and techniques to more flexibly harness the creativity of a changing workforce and the shape of our future society. Read Full Media Release Announcement Here
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INDUSTRY NEWS & EVENTS New Zealand Defence Industry Association (NZDIA) Forum 2017 10-11 October 2017
ICCPM Managing Director and CEO Deborah Hein, attended as guest speaker at the 20th NZDIA Forum on ‘Emerging Technologies & Cybersecurity Capabilities Supporting National Security Agencies’. This was a fantastic event with more than 700 delegates in attendance. Deb addressed her industry colleagues, discussing the elements of complexity and its impact on our working world. Deb’s contribution to the program was well received by her peers, as she encouraged deeper level thought and emphasised the need for education and strong leadership to ensure complexity is managed successfully.
“NZDIA works to deliver mutually beneficial process improvement, lower business cost and improved commercial outcomes for Defence, associated agencies (e.g. security, intelligence, border control, police, customs) and NZDIA members by achieving recognition as the Defence Industry Stakeholder Representative of Choice for reference, consultation and engagement across industry, sector and procurement initiatives.”
www.nzdia.co.nz
AIPM 2017 National Conference: Melbourne 22-24 October 2017
Amongst three jam packed days of networking, listening and interacting with members, ICCPM’s Collin Smith and Ian Biggs, facilitated a Summit on Complex Projects discussing the Establishment of Communities of Excellence in Project Complexity. With approximately 130 attendees, the workshop revolved around a newly established national framework – Complexity: Community of Practice (CoP). Workshop participants discussed the notion of shared group learning, intentionally and unintentionally achieved via regular interaction between people striving towards achieving a common goal.
International Project Management (IPM) Day 2017
Above: Ian Biggs at ICCPM’s trade stand for the AIPM Melbourne conference.
This year marked the 14th annual International Project Management (IPM) Day online conference hosted by the International Institute for Learning Inc. (IIL). Beginning on the 2nd of November and running until the 6th of February 2018, the event is expected to attract the most respected companies around the world represented by 50,000 attendees. There is a line-up of more than 25 keynote speakers including leaders and innovators in their respective fields, with the opportunity for speakers to take questions live during scheduled times. Log on at any time to view past presentations or watch them live.
IPM Day seeks to encourage PM Managers around the world to advance their professional development and careers, whilst celebrating their accomplishments and success. For more information and to register click here. 6 | ICCPM CONNECT
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Global Alliance for the Project Professions (GAPPS) and ICCPM sign Memorandum of Understanding 10-11 November 2017
ICCPM Chair Alicia Aitken signed a Memorandum of Understanding (MoU) with Brigette Schaden, Chair for GAPPS, bringing together international public and private sector professionals and leaders.
Network Updates
“Our organisations aim to work together on the promotion of professional development and knowledge sharing through education, training seminars, workshops and conferences. We will work together to support each other’s strategic vision and project management industry” said ICCPM Chair Alicia Aiken.
Left: Alicia Aitken, ICCPM Chair. Right: Brigette Schaden, GAPPS Chair.
Dubai International Project Management Forum (DIPMF) 18- 21 November 2017
GAPPS facilitates “mutual recognition and transferability of project management standards and qualifications by providing the global project management community with a reliable source of comparative information.” www.globalpmstandards.org
Global economies are growing at a massive scale, with numerous projects are continually launched, managed and operated each year. DIPMF brought together over 1,500 international attendees on a global platform to shed light on Dubai’s role in leading development across its region by successfully adopting “top-notch” (DIPMF) international standards for mega project management. The forum demonstrated “how smart, sustainable and innovative project management practices are executed to ensure successful outcomes” (DIPMF). ICCPM’s former North America President Frederick Payne presented at the event discussing organisational culture and its impact on innovative ideas, employee and customer satisfaction correlation, and the impact of design-based thinking on innovation. Click here to download the 2017 conference case studies and resources.
“Design-based thinking drives innovation and resonates with the community. This in turn helps to create an ‘energised’ culture” Former ICCPM North America President Frederick Payne speaking at DIPMF 2017 BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
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NEWS Obituary - Alberto Louis Volpe, Jr. 1947-2017
It is with deepest regrets that we announce the passing of one of ICCPM’s founding Fellows, Alberto Louis Volpe Jr. “Al”. Al passed away at 69 years of age on the 28th of August in his home state of Texas, USA. A fixer and problem solver in all aspects of his life, Al was a graduate engineer from Texas A&M University class of ’68, pursuing childhood ambitions to follow in his uncle’s footsteps. Al once noted, “I just enjoyed building things too much to think of [being] anything else.” Upon graduation, Al begun his 40 year career working with Brown & Root/KBR transitioning into the role of a Project Manager. A keen traveller with a high sense of adventure, his line of work naturally followed a path of international assignments taking on many projects worldwide including: USA, South America, Dutch Netherland Antilles, Middle East, Australia, and the UK. Finally in Australia after a thirty year career wait, Al worked on the design, construction and delivery of the Alice Springs-Darwin Railway Project; a demanding a high profile project of national interest. A complex project with numerous challenges, Al’s personal traits of high personal pride and strong perseverance ensured successful project delivery five months ahead of schedule and with the project receiving multiple industry awards.
“
We were very shocked to hear of Al’s passing. The time we spent working together on the Darwin Railway were certainly the most enjoyable & rewarding of my whole career. Al was a wonderful leader & set a very high standard for the rest of us to follow. He expertly managed & motivated his team while at the same time dealing with the high expectations of the Project Partners. Plus his margaritas were world class!
”
Kevyn Brown September 14, 2017 | Adelaide, South Australia
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His Australian objectives met, Al moved back to Houston Texas where after 20 years of working on international projects, he adjusted to working locally. Back home he supported the Government and Infrastructure, Management and Engineering Group in several of their ventures. Al enjoyed cooking and spending time with his family. He was admired by all who met him for his diligence and integrity. A celebrated man who’s wry sense of humour will be missed by all. Public condolences as published on legacy.com.
“
Al was a great guy to work with at KBR, especially on the Alice to Darwin rail project in Australia. We will miss him. Our condolences to his family from ours. Paul & Cathy Stenner September 17, 2017 | Houston, TX
”
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SEASONS GREETINGS FROM ICCPM Dear ICCPM Members and Subscribers, ICCPM would like to thank you all for your support and contributions throughout 2017. Without you, so much of what we achieved would not have been possible. We hope that wherever you may be this festive season, that you are surrounded by friends and family to welcome in a fantastic New Year. ICCPM looks forward to sharing exciting events, research and industry developments with you as we begin the new chapter of our next 10 years!
WE WISH YOU ALL A SAFE AND HAPPY HOLIDAY SEASON!
The ICCPM Office will be closed from COB Friday 22nd of December 2017, and will reopen Monday 08 January 2018. Please email us at admin@iccpm.com with any enquires and will get back to you when we return.
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CPD POINTS!*
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Candidates and Employers will gain fundamental value in understanding, navigating and leading work in complex working environments. Leadership and Team Development: Discover leadership style and qualities to help you and your team reach your full potential. Corporate Solutions: Customised support from ICCPM to help your organisation respond effectively to complexity in project environments. Executive Education: Systems Thinking Course. *CPD points available to PMI & AIPM members subject to each organisations requirements BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
CONTACT US Twitter: @iccpm LinkedIn: International Centre For Complex Project Management ICCPM CONNECT | 9
ARTICLES Delivering Effective Projects In Uncertain Times Tim Banfield Tim is a Fellow and Director of ICCPM. He has spent 30 years operating at the heart of the Civil Service and with the U.K. Parliament in project delivery, advisory and assurance based roles. He has an exceptional track record of organisational transformation and growing capability and talent as a strategic asset, latterly as UK Government Head of Project Delivery profession. In 2016, Tim joined Nichols, a strategic advisory consultancy.
Projects are the way governments and commercial organisations deliver improved social, economic, business and environmental outcomes. Here we explore five strategies to enable senior leaders to ensure that their projects are successful: Developing deeper relationships with stakeholders to understand the diversity of perspectives on what successful outcomes are. Adopting a smarter adaptive approach to change. Planning and managing major projects differently so that key outcomes are delivered earlier. Considering smaller scale projects where benefits are realised sooner as part of a balanced portfolio. Prioritising better project initiation to ensure schemes are ready to proceed when the time is right. The project delivery landscape is changing rapidly. Low interest rates have made borrowing to invest in long term projects more attractive than ever.
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Events such as Brexit have made the economic landscape uncertain and business cases must convince against a range of new scenarios. Consumers are more demanding and impatient to receive immediate benefits. Allied to rapid technology evolution, the inevitable political indecision and unexpected global events, the challenges to effective project delivery are multiplying. As learned while developing techniques to help a client respond cost-effectively to the Fukushima disaster, organisations and projects must be able to absorb the shock loading that occurs during an economic or societal earthquake and continue to perform. Yet the track record of delivering successful world-changing projects is at best varied. Organisations need to act differently to secure the anticipated beneficial change from projects. Today’s increasingly virtually connected world means transparency is optimal and interested parties are more connected to infrastructure projects than ever before. It offers new and powerful outlets. There is greater opportunity for divergent views and dissatisfaction to be expressed, making projects more political than ever before. Conversely, the proliferation of media channels provides new opportunities to engage with citizens and customers in different ways to achieve outcomes through a broad
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
range of delivery approaches. Traditionally, the focus has been on doing projects efficiently – the “iron triangle” of cost, time and quality beloved of project managers. Efficiency of delivery is important but is no longer sufficient. Understanding diverse and conflicting stakeholder perspectives and motivations is crucial to enable organisations to balance the inevitable tensions, and to plan and deliver projects effectively. To achieve an effective project requires an outcome-centred approach where projects are a living cycle, delivering benefits throughout, and better reflect our complex and uncertain delivery landscape. The difference between an efficient and an effective project is shown below. Adopting an outcome centred approach means challenging accepted thought processes. Viewed through a more traditional lens, delivering infrastructure may be complicated and cause and effect are self-evident so plans can be made and stuck to religiously and traditional best practices applied.
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
In our experience, this is often not the reality due to the many variables and unknowns. There is no such thing as best practice; rather it is what is appropriate in each given circumstance. Effective organisations adopt approaches that help leaders handle the complexities. An outcome centred approach places a premium on experience, relationship building and using diverse datasets both to predict, and to manage the effects of change positively. London’s Crossrail has adopted an approach which could be characterised as “disciplined flexibility” in response to the inevitable changes and a lively approach to innovation to maximise the opportunities presented. One way to faster benefit realisation is to commission more small scale projects. The benefits of this type of approach were highlighted in The Eddington Transport Study of 2006 which concluded that “small junction improvements often cost below £20m but show wider benefit cost ratios (BCRs) well in excess of 4 and some are between 8 and 10”.
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ARTICLES There are however, risks associated with relying too much on smaller projects. We have seen cases where projects were poorly managed, lacked quality resource and did not benefit from economies of scale because they were deemed ‘small’ and did not receive sufficient priority. Eddington recognised the importance of balancing investment in both small and major projects, particularly where sustained demand growth meant new capacity schemes were needed. The challenge for senior leaders is how such short term enhancements can be designed to provide value and fit into a wider delivery plan. Similarly, when major projects are required these could be planned and delivered differently so that benefits are gained and demonstrated throughout the project timeline. Careful consideration must be given to the outcomes that are important from a political, wider stakeholder and project management efficiency perspective.
For example, delivery of a major road capacity project might be structured as an incremental series of junction and highway improvements that reduce the most severe bottlenecks quickly. The end product remains the same but the approach will show more improvements in the early stages and gives more opportunities to recognise and share successes with stakeholders. In conclusion, successful project delivery is central to healthy organisations whether they operate in the commercial or public sectors. The environment within which projects are planned and delivered is becoming ever more uncertain, complex and contradictory. The limitations of traditional approaches are becoming increasingly apparent. Senior leaders need to think and act differently if they are to secure the full range of anticipated beneficial changes from the projects they undertake in a timely manner. An outcome focused approach characterised by disciplined flexibility is key. Relationships between delivery partners, clients and diverse stakeholders must be more engaging and intuitive.
These approaches have implications for the way senior decision-makers plan future projects and take decisions on which projects to commit to. In times of uncertainty, organisations should ensure that the full range of potential outcomes from the project have been carefully scrutinised and that vulnerability to change is clearly understood. This might mean deeper exploration of the business case, stakeholder needs and expectations, and refraining from fixing solutions too early. By investing adequately in the project initiation phase, organisations can be ready to move forward quickly when circumstances make schemes more relevant or affordable.
Early benefit delivery can be a valuable tool in winning over public support for infrastructure investments. Well planned and executed smaller scale projects can deliver benefits quickly whilst the design of larger projects can be optimised so that benefits are realised sooner as part of a balanced portfolio. Investing more time and resource into project initiation and scoping will ensure that organisations can move forward quickly when the time is right for projects to proceed.
Restructuring project portfolios and the overall management strategy may be necessary to recognise the benefits of delivering different types of outcome at different times, and prioritising designs accordingly.
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2018
ICCPM ROUNDTABLE SERIES FIND OUT MORE ICCPM is proud to announce the launch of the 2018 International Roundtable Series. Following the success of our 2016 series “Contracting For Success in Complex Projects”, we are again bringing together senior leaders to share perspectives, identify solutions and develop a shared work plan for improvement on the topic:
Project Leadership the game changer in large scale complex projects Sponsorship We invite you to partner with us and showcase your organisation to project and program managers working in complex environments. Opportunities exist to sponsor the entire series or an individual event.
Contribute! Contribute to the discussion at one of the face-to-face events or via the online forum. All submissions and contributions will be included in the compendium of outputs and used in the final outcome report.
Get in Touch To find out more, or to register your interest in attending please visit www.iccpm.com or contact us on admin@iccpm.com or +61 2 6120 5110
Locations UK - USA - AUSTRALIA - EUROPE - SINGAPORE - NEW ZEALAND SOUTH AFRICA
Download ICCPM Discussion BUILDING CAPABILITY IN Paper COMPLEX ENVIRONMENTS
Twitter: @iccpm LinkedIn: International Centre For Complex Project Management ICCPM CONNECT | 13
ARTICLES The Modern Executive Board: Driving Complex Project Success Alicia Aitken Alicia is the new Chair of the Board for ICCPM and has recently commenced an investment management role at ANZ Bank. Previously, she was Telstra’s Chief Project Officer, responsible for ensuring successful project delivery across the capital investment program. Actively involved in several industry groups and peak bodies, Alicia is a regular keynote speaker at conferences around the world and contributes to academic programs at universities in both Australia and Europe. Alicia holds a PhD in project management and psychology with a particular focus on how project managers cope with stress. The success of complex projects is driven by the engagement of the executive board. Today, more and more boards are seeing complex projects as major risks to their organisational success. A complex project that goes off the rails can not only cause significant reputational damage but can take funding away from other important investments. And so, the modern executive board is playing a far more hands on role in the stewardship of complex projects.
There are two key factors that the executive board of successful complex projects focus on:
In the past executive boards have tended to let projects, even the most complex projects in their organisation, operate at arm’s length. The bulk of revenue is generated, and cost spent on operational activities with only a fraction of funding being allocated to new projects. Many boards have prioritised their time in line with these proportions. But with many boards now finding themselves confronted with disruptive forces. The success of their most complex projects is critical to the survival of their organisation. Modern executive boards manage their time based on the strategic importance or risk of projects rather than just the single dimension of cost.
Active executive boards are asking more questions and expecting deeper answers when it comes to the organisational governance that supports complex projects. Organisations are shifting towards dynamic investment. Decision making is being passed down to the streams rather than controlled centrally. Moving decision making closer to the teams developing the capability means that organisational governance relies even more heavily on a culture of “truth in reporting”. There is a filter of middle management that has been known to translate RED to GREEN as data moves up through the organisation.
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1. Project Leadership 2. Organisational Governance Project leadership in complex projects is represented by a single accountable individual who speaks with the board. But it is a network of leadership capability that supports the project. The leadership network makes fast but not hasty decisions. They navigate the inevitable obstacles to success. This is no easy task when dealing with the most complex projects an organisation attempts to deliver. The role of the executive board is to ensure that the right network of leadership exists around the project.
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RESEARCH UPDATE Cultural inertia coupled with the psychology of safety and belonging actively works against executive boards being able to receive clear, honest insights about projects. This leadership team is responsible for ensuring they develop a culture that maximises the chances of clear and honest information being transferred through the project. Both up to the executive board and down through the project teams.
boards to pierce through the layers of delivery. It helps to find the questions and guidance that will make a material difference in the success of complex project delivery. Where executive boards actively engage in the complex systems that deliver our most exciting capabilities the future for complex project delivery looks bright.
Executive boards looking to de-risk this cultural phenomenon can engage a board level, independent advisor to review and support the board without fear or favour. This independent advisor role provides the framework for executive
Chris Smith Boeing Defence Australia
Sonia Cain BAE Systems
Kim Gillis & Greg Dival CASG
2018 KNOWLEDGE SHARING FORUM CANBERRA
Boyd McCarron Cordelta Dr. Alicia Aitken ICCPM Chair Adjunct Professor David Pitchford
Chris Otley-Doe Accenture Mark Remmers CASG
26 February 2018
Hear from influential leaders and practitioners! Our panel and industry speakers will discuss how government and industry recommended c hanges in the Defence First Principles Review can be leveraged from a structure and project/program design and execution perspective to deliver better outcomes.
REGISTER NOW! BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
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ARTICLES Collaborative Contracting in Complex Environments John Davies Parallax Project Management Services principal consultant, Dr John Davies is a thought leader in collaborative contracts and program delivery strategies. John possesses a portfolio of skills which encompass all facets of contract management, program management, systems engineering, risk management, and resource management. John has provided agencies with commercial better practice guides and strategic procurement advice across multiple domains. John has also authored numerous complex program risk studies, integration studies, Operational Concept Documents and Function and Performance Specifications. John also holds a PhD in Contract Law and Public Sector Governanace. ICCPM Research Project 3: Contracting For Success in Complex Projects , which formed the basis for the 2016 International Roundtable Series of the same name, identified that we need to ‘shift from adversarial/transactional approaches to more collaborative contracting methods and models’. The reasons for these shifts are many. Transactional approaches will rarely deliver value in emergent and complex environments. Whilst traditional arms-length contracts may provide an illusion of commercial protection, the harsh reality is that for complex programs, transactional approaches will often fail since: Parties will rarely have ‘clean hands’ and the enforcement of contractual provisions is questionable;
Multi-party involvement blurs the lines of responsibility;
Flexibility, innovation, and adaptability are often prevented or discouraged;
The goals and objectives of the parties will typically diverge and lead to disputes.
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ICCPM’s 2016 Roundtable Report: Contracting For Success in Complex Projects. Read Full Report Here.
Furthermore, where customers attempt to inappropriately transfer risk to suppliers, through transactional contracts, there will typically be a substantial increase in project costs. These costs are normally absorbed by the customer. For example, a research report by the Construction Industry Institute identified that:
Inappropriate allocation of risk resulted in a 14 percent increase in costs to projects. Of this amount, the customer was liable for 78 percent of the cost increase.1
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For complex programs, this amount will likely be higher as suppliers will add substantial management reserve or contingency to their prices to deal with high program risks. A shift to more collaborative arrangements is recognised as a valid approach to effectively deal with the above issues and the evidence shows that collaborative contract approaches regularly provide: a. b. c. d. e. f. g. h. i. j.
k.
superior cost, schedule, and quality outcomes; more effective risk management opportunities; better goal alignment; improved transparency and less surprises; dispute minimisation; reduced transaction costs; enhanced flexibility and responsiveness; increased likelihood for industry participation and competition; increased prospects for repeat business; improvements in skills and knowledge transfer between parties to the contract; and enhanced personal satisfaction for all project parties.2
The importance of collaborative contract approaches is highlighted by the fact that many organisations are proactively investing in customer and supplier relationship management initiatives. A recent survey by KPMG found that: “49 percent of organisations are implementing more collaborative models with customers and suppliers whilst 38 percent are exploring collaborative models.” 3
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Furthermore, many organisations have adopted or are adopting ISO 44001:2017 Collaborative Business Relationship Management Systems – Requirements and Frameworks. In summary, the business case for adopting collaborative approaches is robust, especially in complex environments. How then do we make the shift to collaborative approaches? There are no universal definitions as to what a ‘collaborative business relationship’ is. It is important to recognise that collaboration exists as a spectrum. At one end of this spectrum we may simply adopt informal collaborative approaches to issues and dispute resolution, whilst at the other extreme we may adopt a program alliance with shared liability and gainshare/painshare remuneration. ISO 44001 offers a useful model in exploring collaborative relationships by identifying the following desired behaviours:
Table 1: ISO 44001 Collaborative Behaviours4 Information sharing, constructive questioning, open and honest feedback Listen effectively, respecting opinions of others Communicate effectively, consistently, openly, honestly and in a responsive manner Recognise the objectives of all parties and seek to maximise their achievement Negotiate without taking advantage Appreciate and respect differences in culture; be proactive to resolve potential difficulties and overcome barriers Learn from and share experiences Understand and support others in the achievement of thier goals establish joint needs and outcomes, act in the best interests of the joint effort
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ARTICLES Table 1: ISO 44001 Collaborative Behaviours continued...4 Balance risk and reward when considering innovative thinking and future possibilities Consider the possible future implications of current issues Address short term imperatives without losing sight of long term objectives, learn from experience and to embrace changes Constructive and flexible attitude to change, facilitate creativity in others by encouraging challenge and new ideas Accomodate needs of all stakeholders to deliver shared goals Demonstrate respect and consideration for all partners and consider actions upon others Aim to create mutual understanding but hold people to account for unacceptable behaviour
These behaviours could be pursued independent of the contract selected; however, some contract provisions, remuneration strategies, and risk allocation frameworks may make it exceptionally difficult to drive these positive behaviours. For example, an emphasis on risk transfer with firm fixed price contracts and demands on suppliers for unlimited liability may not foster an environment conducive to collaboration. To this end, the pursuit of collaborative behaviours should be considered as part of the overall program delivery strategy from both customer and supplier perspectives. The recently released ‘Collaborate Contracting - Better Practice Guide’5 by the Australian Department of Defence, Capability Acquisition and Sustainment Group captures many of the ISO 44001 objectives with a focus on driving the right behaviours and tailoring collaborative approaches to the relationship maturity of customers and suppliers. Adopting collaborative approaches is not just a simple matter of drafting a relationship management plan and throwing a partnering charter on top of a traditional contract. A more strategic approach must be taken to ensure the program delivery strategy provides a coherent approach to collaboration,
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considering the culture and leadership of all parties to the relationship. Before embarking on a collaborative contract journey, organisations should be sufficiently self-aware and understand their own limitations. This tenet is identified in the following IACCM research report into relational contracting: Overall, it is IACCM’s view that participants in this [relational contract] survey tend to overrate their capabilities. This is often because they have no direct comparative reference point, so they assume they are at best ahead of competition and at worst meeting the average.6 Collaboration may yield tangible benefits to organisations, but collaboration alone is unlikely to deliver program success. We must also invest in the necessary commercial, program management, and technical disciplines to realise program objectives.
1. CCI Research Report RR210-11 “Contracting to Appropriately Allocate Risk” (2007) summarised in Altman R., Cruz J., Halls, P “One-sided Contracts: Do They Pay Off?” ACCL Vol 11 1 (2017) p 169. 2. See esp., UK Ministry of Defence ‘A Partnering handbook for Acquisition Teams’ (2008) pp 9-10; ISO 44001:2017 Collaborative Business Relationship Management Systems – Requirements and Frameworks; Australian Government Department of Infrastructure and Transport ‘National Alliance Contracting Guidelines Guide to Alliance Contracting’ (2011) p 32; T. Lendrum ‘Building High Performance Business Relationships’ (2011); State of Flux ‘Supplier Relationship Management Research Report 2012: Voice of the Supplier - A Step Closer to Mutual Benefit’ (2012). 3. KPMG, ‘Building Defence Capability: The Vital Role of Collaboration’ (2017) p5. 4. ISO 44001 p 43-4. 5. Australian Department of Defence, CASG ‘Collaborate Contract Better Practice Guide’ v1.0 (28 Sep 2017). 6. IACCM Research Report ‘Relational Contracting Capability Where do you Stand’ (2013)
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
COMPLEXITY DIAGNOSTIC TOOL Diagnose Performance
validated by research
Analyse Performance
complexity diagnostic tool
Guidance Report
complexity diagnostic report
Diagnose complexity within projects Identify complexity-related risks Best practices guidance for management interventions Track performance over time Multiple stakeholder views Executive dashboards for cross-project comparisons Based on validated research and aligned to the ICCPM Competency Standard Complexity Diagnosis
To register your project for a Complexity Diagnostic please contact us on 02 6120 5110 or admin@iccpm.com BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS ICCPM CONNECT | 19
THE ICCPM STORY PART FOUR: 2015 - 2017
2015 2015 was an eventful year for ICCPM. We accomplished incredible results in a very short time. Building on previous relationships and in line with the revised organisational strategy we took the time to develop a strategy visualisation focussed on delivering on our education strategy and growing our network.
Above: ICCPM Strategy Visualisation
We established the DMO/Industry Project Management Forum, recruited new partners, increased membership numbers, developed a suite of education courses, increased communications and commenced the process of becoming a Registered Training Organisation (RTO). We specifically took a renewed focus on delivering benefits through a strengthened research and education agenda, robust and relevant networks, utilisation of appropriate technology and the international perspective of the organisation has meant that high value outcomes have been achieved for partners, 20 | ICCPM CONNECT
members and the CPM community. The team designed and developed a new platform to communicate via this revamped magazine-style publication with the first edition published in March. The development of ICCPM branded education products was a major milestone for the organisation. Our products were designed to satisfy an identified gap in the complexity education market. On 1 July 2015, ICCPM applied to Australian Skills Quality Authority (ASQA) to become a Registered Training Organisation (RTO). This was granted on 20 January 2016.
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
2015 was an eventful year for ICCPM. We accomplished incredible results in a very short time. Building on previous relationships and in line with the revised organisational strategy we took the time to develop a strategy visualisation focussed on delivering on our education strategy and growing our network. The ICCPM 6th Annual Conference was a milestone event in 2015. Our objective for the conference was to deliver a high profile, quality event in Canberra for ICCPM partners, members and the international CPM community that showcased ICCPM and provided opportunity for delegates to network, participate in meaningful dialogue and contribute to the future. The ICCPM Annual Conference had been a central part of ICCPM’s international engagement over the past five years. Therefore it was important that the event retain an international focus. This was achieved by attracting a number of international speakers and attracting delegates and sponsors from around the world. The Australian conference surpassed the quality of content and delegates from previous conferences. We exceeded our objective for the conference. Canberra once again provided the highlight with a magnificent conference welcome reception at the Australian War Memorial and conference dinner at the National Arboretum. We appointed the inaugural ICCPM Academic-in-Residence late in 2015, Professor Stephane Tywoniak. This role acts as the single point of contact for academics worldwide wishing to engage with ICCPM on research. We appointed the inaugural ICCPM Academic-inResidence late in 2015, Professor Stephane Tywoniak. This role acts as the single point of contact for academics worldwide wishing to engage with ICCPM on research. We announced a new Fellows model that involves providing more opportunities for engagement and growing the number of Fellows. The network of Fellows grew during the year as an additional 12 fellows were appointed including: Tony Graham, Mary McKinlay, Tim Banfield (UK); Genevieve O’Sullivan (Canada); Julie Dunlap (USA); Chris Jenkins, Chris Deeble, Anthony Fraser, Raydon Gates, Harry Bradford and Jim McDowell (Australia). 2015 also saw a significant movement on our Board. Chris Jenkins our long standing Chairman of 6 years stepped down from the role as chair in October and handed over to Harry Bradford. Kim Gillis and Chris Deeble also resigned from roles as a BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Non-Executive Directors enabling the appointment of Alicia Aitken to the board. Board members in 2015 included Harry Bradford, Chris Deeble, Julie Dunlap, Kim Gillis, Simon Henley, Chris Jenkins, Mary McKinlay, Deborah Hein, Alicia Aitke Staff in 2015 included: Deborah Hein, Diane Hope, Kate Hubbard and Cathy Baljak
2016 In February 2016, ICCPM’s Certificate IV in Responding to Organisational Complexity was accredited as Nationally Recognised Training in the Vocational Education Training (VET) sector. We commenced delivery of the accredited course with our Adelaide based clients in early 2016. We welcomed Dr Erin Evans on staff as the Director of Education and Research. Erin bought with her the opportunity for ICCPM to continue to partner with QUT through the International Projects Unit on the delivery of education to various Department of Foreign Affairs and Trade Australia Awards Programs including Indonesia, Philippines, Papua New Guinea, Maldives, Myanmar, Samoa, Nepal, Bangladesh, and Sri Lanka. The provision of facilitated opportunities for discussion and collaboration with the global community is an important element of the ICCPM strategy and a key marker for maintaining our position as the international peak body. We partnered successfully with the International Association for Contract and Commercial Management (IACCM) to run an International Roundtable Series in 2016 to consider the topic: Contracting for Success in Complex Projects. We bought together the collective wisdom of senior leaders to share perspectives and confirm the issues that prevent contract and project alignment, and to create specific and practical steps that will drive major improvement. The program was launched on 3 May 2016 at an event in Canberra. The first of 7 roundtables was conducted in Canada on 19 May. The remainder of the events occurred between May and September followed by data analysis, research and drafting of the practitioner focused white paper by the end of the year. Six new Fellows were approved at the August Board meeting and we were very pleased to welcome Dr Philip Crosby, Bruce Armstrong, Rod Equid (Australia); Dan Ross, Nandini Srikantiah (Canada); and Deborah Feakins (UK) to the ICCPM Fellows. ICCPM CONNECT | 21
THE ICCPM STORY PART FOUR: 2015 - 2017 ICCPM launches its CERT IV - Responding to Organisational Complexity, becoming a Nationally Accredited Training Organisation for the first time.
Board members in 2016 included Harry Bradford, Julie Dunlap, Simon Henley, Chris Jenkins, Mary McKinlay, Deborah Hein, Tim Cummins, Alicia Aitken, Chris Deeble. Staff in 2016 included: Deborah Hein, Erin Evans, Diane Hope, and Cathy Baljak.
2017 After two very busy years of planned consolidation, 2017 provided an opportunity for us to reflect on where we had been and where we are planning to go. We identified that a restructure of our quite small team was necessary to ensure that we focussed on the right things and continued to deliver value to our partners and members. We farewelled Dr Erin Evans during the year, but be assured that her significant skill and knowledge is not lost to us, Erin continues to support our education delivery when her time allows. We formally launched the roundtable outcomes paper at the National Press Club in Canberra. The event was well attended, with a large number of attendees experiencing their first engagement with ICCPM. What was very pleasing was the participation of Board members, Fellows (Harry Bradford, Phil Crosby, Kim Gillis and Raydon Gates) and partner representatives adding significant value to the event, in particular the opportunity for attendees to meet and chat with eminent practitioners. We had the pleasure of hosting a Knowledge Sharing Forum on the 18th May in Canberra. Speakers on the day included Dr Phil Crosby (Fellow and Board Member), ICCPM MD/CEO on the outcomes paper, Dr Peter Bevan (Complexity Diagnostic Tool), Mr Ross Smith (Policy Development), Mr Steve Hein (Complex Project Management) and Bruce Armstrong and Leo Cusack from Aspen Medical (International Projects). 22 | ICCPM CONNECT
Knowledge Sharing Forum May 2017
Importantly, we were able to reach out and secure VIP women leaders from outside our usual pool of candidates to participate on a panel specifically discussing their personal journeys as women in leadership positions. We appointed a Deputy CEO to provide much needed executive support and redundancy for the CEO. Collin Smith took on the significant responsibility of managing the business operations role for the organisation including business development activities and education delivery. Collin has done a wonderful job in building the marketing capability of the organisation. We also welcomed Ian Biggs to the team to work with the CEO and Board on a feasibility study looking at the potential to develop an individual competency assessment using the Competency Standards for Complex Project Managers. Ian conducted a great deal of stakeholder engagement and although there was some support for the initiative in the project management community, a more immediate need was identified.
2017 has been a significant year for the organisation. Board members in 2017 included Harry Bradford, Alicia Aitken, Julie Dunlap, Simon Henley, Mary McKinlay, Ian Mack, Phil Crosby, Tim Banfield, Deborah Hein. Staff in 2017 included: Deborah Hein, Collin Smith, Diane Hope, Marissa Ayala, Ian Biggs, Cathy Baljak (departed Jan), Corrine Cole (departed June), Erin Evans (departed Aug). BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
ICCPM SOLUTIONS ICCPM Solutions Pty Ltd is a boutique service provider established to provide advisory services and support to complex projects and programs. We focus on helping organisations to recognise complexity in all its forms, develop strategies and advise on implementation of strategies, ICCPM Solutions has a proven track record of success.
STAKEHOLDER ENGAGEMENT
STRATEGIC PROCUREMENT & CONTRACTING
PROJECT DELIVERY LEADERSHIP
ORGANISATIONAL DESIGN &CAPABILITY GAPS
STRATEGIC LEADERSHIP
COMMUNICATIONS & NETWORKS
CHANGE & TRANSFORMATION MANAGEMENT
STRATEGIC GUIDENCE & GOVERNANCE
PROJECT/ PROGRAM & PORTFOLIO MANAGEMENT
Contact us on 02 6120 5110 or admin@iccpm.com PEOPLE
to discuss your needs and we can work out a plan to support your delivery.
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
ICCPM CONNECT | 23
THE ICCPM STORY PART FOUR: OUR FUTURE
OUR NEXT 10 YEARS Where our leaders and Fellows see ICCPM’s future: Where would you like to see ICCPM at the end of our next 10 years? ICCPM CEO, Deborah Hein: “The political landscape across the globe I fear will in and of itself be the driver of increased complexity. The instability of governments coupled with the lack of understanding and capability of the politicians charged by the people (in most cases) as the decision makers will make delivery of good outcomes problematic if not unachievable, this is due in the main to politicians not understanding what they are directing others to try to achieve. The issues raised many years ago in the “Conspiracy of Optimism” paper that led to the establishment of ICCPM unfortunately remain extant including striking agreements that are so optimistic as to be unsustainable in terms of cost, timescale or performance; ‘entryism’ when the initial cost and schedule are deliberately under-estimated using poor cost estimation techniques that omit costs for development and testing of interfaces, technology demonstration and industrialisation. Industry sees all opportunities as ‘must win’ and bids an optimistic price on an optimistic schedule, expecting to claw back some of the shortfall during subsequent phases when is some instance the program should never in fact be started. In 10 years I hope that ICCPM is the educator and advisor to political leaders and the most senior leaders in government and industry responsible for delivering complex programs, in that way we may have a chance of minimising the impact and consequences of ill-informed, agenda based decisions being made by individuals who have no capability to understand the decisions they are actually making – Utopia… we should all have a dream”
Director and Fellow, Tim Banfield: “ICCPM will be globally recognised as the preeminent organisation developing and supporting the project leaders and their teams charged with delivering the most complex capital and transformation projects in the world. The training, knowledge sharing and ground breaking research and insights ICCPM offer mean our profession consistently exceeds the expectations of clients, sponsors, end-users and citizens by delivering exceptional project outcomes which make the world a better place. We are the toast of C21st professions!”
Corporate Partner (Thales) and Fellow, Chris Jenkins: “Over the next 10 years the rapid changes in technology, information management, security and the way social change is driving human interaction in new ways will all contribute to the challenge of complexity within project environments. This is particularly so in the demanding project environments of Defence, National Security and critical infrastructure. This world will increasingly experience complex projects within countries and between countries. In this context in the next 10 years I hope to see ICCPM in demand to work with more and more organisations globally and to proactively help them prepare to meet complexity successfully, in advance of risk not after!” 24 | ICCPM CONNECT
Top: ICCPM CEO, Deborah Hein Left: Corproate Partner (Thales) and Fellow, Chris Jenkins Right: Director and Fellow, Tim Banfield
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
ICCPM Deputy CEO, Collin Smith: “I would like to see ICCPM have an increased presence and impact globally with offices in more countries around the world. This is accompanied by significant growth in membership both individual and corporate (corporate partnerships) as well as international collaboration with stakeholders and likeminded alliance partners for the benefit of increasing the body of knowledge around complex project management. In this regard I would hope that ICCPM would be front of mind for all project and program management professionals internationally as the ‘go to peak body’ for managing complexity. Following on from this I would like to see ICCPM recognised as a significant influencer in the complexity education space both in terms of the provision of our own education offerings internationally and in terms of the promotion of subject matter inclusion in external education providers programs, thereby raising the profile of complexity as a legitimate project and program management subject matter domain. I would also like to see a broader range of practitioner based tools, technology, and support offerings developed and made available by ICCPM to serve, support and enable its stakeholder community to better manage complexity in project environments. Finally, at the end of the next 10 years I would like to see ICCPM recognised as having made a real measurable impact on the improvement of complex project and program success globally. “
Chair of the Board, Alicia Aitken: “In 10 years’ time I’d like to see ICCPM at the heart of the establishment, delivery and assurance of complex projects around the world. Over the next decade the biggest shift in complex project delivery will be the engagement of executive boards. We will see more and more of the boards of DOW, ASX and NASDAQ top 100 companies and the leadership team of every major government organisation actively asking to understand the status, risks and obstacles facing their most complex projects and asking “what can we do to help?”. ICCPM will be there, next to these leaders, providing the expert advice on how to successfully steer these complex systems to meet the organisational, political and community goals.”
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Director and Fellow, Harry Bradford: “The world will become even more disorderly and unpredictable during the next 10 years. Western democracy will face existential challenges to its system of government brought about by ageing populations, unrealistic and populist expectations, ever-expanding regulation and highly disruptive and rapidly evolving technology. China will stagnate, India will become ungovernable and Russia will disintegrate. The USA will withdraw and its economy will shrink. Protectionism will reverse many of the global market gains of the last 50 years. Major conflict between states will, once again, become probable. Terrorism will continue to rise and with the real possibility of nuclear proliferation this will threaten the destruction of major population centres. So, in this dystopian vision for the future, State-sponsored programs of scale and complexity will become both common and socially critical. If my predictions materialise then these programs will become even more difficult to execute successfully than they are now. Right or not, I would like to see ICCPM with a strong international reputation as a reliable source of knowledge and help for organisations facing the ever increasing challenges implicit in socially critical programs of scale and complexity.”
Top: ICCPM Deputy CEO, Collin Smith Left: Director and Fellow, Harry Bradford Right: Chair of the Board, Alicia Aitken
ICCPM CONNECT | 25
ARTICLES Social Complexity in Collaboration Dr. Gaiyasudeen A Syed Dr Gaiyasudeen Syed is a program manager at present working in ANZ Bank and an enthusiastic researcher. His primary role includes Program Strategy, Planning, Business Case Development, Business Strategy, Project Risk, Audit and Governance Methodologies, PM Process Improvement, Architecture Design, Vendor Management, Practice and Team Development. He is also involved in a mentoring program for novice project managers. Dr Syed has obtained a PhD in Project Complexity from University of Technology Sydney (UTS), in 2016.
Executive Summary Social Complexity in Collaboration This initial paper attempts to present an ongoing qualitative research about social complexity in and of collaboration, observing globally distributed teams in a large enterprise at Sydney, Australia.
This normative research fails to acknowledge the fact that human interaction is transformative and temporal. Collaboration is much more than simple communication and a sequence of interactions. I believe the study of social complexity in organizational interactions will help us to understand the generative factors of collaboration.
Background We walk into any organization; we notice yellow stickers on the walls, blinking telephones, faces on large screens, teams huddling around, working together, resolving problems and building products. Rapidly changing market dynamics, relentless demand from the customers for quality, fast developing technology and globally distributed production centres are a few crucial factors for ever increasing complexity in today’s organizational landscape. Firms are left with no choice but to deform and form, and induce agility in their process to respond to the market volatility. A movement about adopting the Agile framework is sweeping across organizations with remarkable emphasis on collaboration, and Australia is no exception to it. However, the reality shows that these firms are experiencing various challenges in achieving the collaboration among diverse distributed teams. Copious research has been done on team building, team dynamics and team communications. 26 | ICCPM CONNECT
Literature Review Gray (1989) defined collaboration as a process of joint decision making among the stakeholders of a problem domain about the future of the domain. Collaboration is a sequence of interactions which have elements of trust and knowledge sharing with invoked action for mutual benefits. When people are attempting to resolve vaguely defined problems (known as Wicked problems), social complexity emanates because of unknown patterns of interaction with unpredictable outcomes under numerous influencing societal factors. A definition of team cohesiveness is a group’s tendency to stay united under a common goal (Carron 1982). Cohesion is considered as one of the small group phenomena, related to task performance (Bakeman & Robert 1975).
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Research Question I believe there is a correlation between collaboration and social cohesion, and hence formulated the research question: How is social complexity engendered because of “cohesion” when distributed teams collaborate in technology programs?
Factors such as perception of power, information processing ability, orientations and tactilekinesthetics are some of the contributing factors in determining the tone, mode and medium of the interaction.
Data Collection I happened to work with multiple project teams. While some groups were collaborating well, others faced difficult challenges. I recorded narratives from the team members, project managers, and technical leads. As a keen observer, took plenty of notes watching the teams interact for the past 19 months in this technology transformation program. Discussion The problem domain is complex as the problem definition has a certain degree of ambiguity. The solution is progressively developed through interaction and task delegations. Interaction occurs as dialogue, discourse, discussions and debate. During the interactions, the contexts are mutually co-constructed and the influencing factors shape these contexts. Depending on the project situation, as the groups are exchanging information and engaging in co-construction, a collective identity emerges. As noted in the data, there could be multiple, diverse binding factors that create social cohesion among the members of the teams. When the context contains conflict, the segmentation within the interacting agents occurs (teams are split). During segmentation, factors such as age, gender, regional social orders based on colour, caste, religion and language, and values, national, organizational, professional, trades, ideology, culture - all of them become referential or binding factors. This research showed that a clan-like, territorial bond is exhibited because of the informal rather than formal relationship defined by the project charter. Such a relationship is beyond the boundaries of formal teams. The social capital refers to ‘the aggregate of resources embedded within, available through, and derived from, the network of relationships possessed by an individual or organisation (Inkpen & Tsang 2004). BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
In simple practitioners’ terms, we can say that in collaboration the complexity is caused by social factors or during collaboration the complexity is experienced by the team members in social aspects. Implications for practice Practitioners will be able to react better to complex scenarios in distributed multi teams and effectively collaborate by understanding the inherent social complexity.
Read Dr. Gaiyasudeen Syed’s Full Article Here. 1. Rahschulte 2011, Page15-31, in ‘Distributed Team Collaboration in Organizations: Emerging Tools and Practices’ edited by Cathy ICCPM CONNECT | 27
OPINION PIECE Call me Commish; dealing with complexity in a soft outcome project environment Lee O’Dowd Austen Lee was ICCPM’s inaugural winner of the ICCPM PM Prize based on his academic performance in the Managing Project Complexity subject of his Masters of Project Management at the University of Technology Sydney in December 2016. Twelve months later, ICCPM caught up with Lee to find out more about his experience in dealing with complex projects since finishing his degree. Lee works in evaluation, policy and procurement for government including work to implement Outcomes-Based contracts for social services. Lee is also conducting PhD research into how government manages the quality of its procurement process and how this compares to the way industry manages quality. More information available at www.qualitymanagementforgovernment.com or email at qm4government@gmail.com What was the project? Tendering. They call it ‘Commissioning’ now as there’s growing sentiment to move towards ‘commissioning for outcomes’ rather than buying or providing output type services. The underpinnings of commissioning are about making payment more directly contingent on the intended outcomes of policy, rather than the traditional (read, entrenched) practice of paying government contractors for performing output type tasks like hiring people and taking referrals; which doesn’t necessarily have a direct or measurable bearing on the intended outcomes of the policy which gave rise to the service in the first place. For commissioning in the short term however there is a lack of knowledge, including standardised practice and aside from sentiment and a bit of talk there is no central drive, facility or definition for how to go about ‘commissioning for outcomes’ so we are doing something in the order of ‘fake it until you make it’. So in this environment, my task is to buy an evaluation to inform a state government about the effectiveness of a $90m program to decrease the number of children taken into the care (old term was custody) of the minister each year and cared for by foster carers.
28 | ICCPM CONNECT
Why specifically is this a complex project? As a reader of this publication you may know that there are several schools of thought on what makes a project complex. I’m using the definition offered by Remington & Pollack in their 2007 book, Tools for Complex Projects1. Under this account of complexity there are four parameters: Temporal, Directional, Technical and Structural. My commissioning project is complex because: Temporal – we never have enough time. This impacts the effectiveness of the thing we’re buying because no fat in the tender schedule leads to; • No room to reschedule key meetings and deadlines when something (inevitably) goes wrong, and • no time to think out a proper tender plan, selection criteria, risk plan, which flows on to:
• less than optimal attention to tender process, which leads to
• less than optimal tender outcomes BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Technical – This is the first time we have bought something like this. We are buying an evaluation of a program whose methods and effectiveness are evidence based. This is a new thing for the department I work for and because of this, it brings the challenge of unfamiliarity. We may be able to run a tender process just like we’ve done a thousand times before, but what questions do we ask? What performance criteria do we set? How can we estimate a realistic budget that still provides public value? Most important of all, how can the tender, sorry, commissioning process be designed to reliably bring about its intended outcomes? How did I act to achieve the project goal? I lined up the usual project management suspects; integration, scope, time, cost, quality, HR, communications, risk, procurement and stakeholder management plans were developed with the project staff … but also as usual, the majority of the effort was expressed in writing with limited conversations about the plan in person.
What did I learn? I took for granted that people read their emails and calendar invitations, and that their acceptance of meetings or even their non-reply to emails indicated agreement. I was wrong, and chances are that if you do this you’ll be wrong too. It won’t matter some of the time, but when it does, you realise just how much you relied on that assumption. Two things I can do differently: 1. Always, ALWAYS insist on realistic schedules. You must leave room for error and adjustment. 2. Always speak to the people you are relying on to deliver in your project, in person. A recent study into the effectiveness of email versus faceto-face conversations found that a face to face request is 34 times more successful than an email2. Conversely, this means that you would have to send about 200 emails to get just 6 people to attend a meeting. Never rely upon email alone to organise important meetings.
What went right? The plan looked tight but achievable on paper. I’m experienced so the plan and the reams of associated paperwork, cascading meetings and probity measures got organised quickly and well. Notably, all the people required to take part in the process had agreed to participate and accepted email calendar invitations to book in their time.
$
What went wrong? Expert members of the tender evaluation panel were unavailable for the meeting times they had accepted via email. It completely threw the schedule and almost derailed the whole procurement because a key tender panel member almost missed the final meeting to decide on the winning candidate due to the fact that they had accepted a job elsewhere and had an end date for their employment in our department.
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
1. Remington k. & Pollack J., (2007), Tools for Complex Projects, Gower Publishing Ltd. 2. Bohns V.K., (11 April 2017), A Face-To-Face Request is 34 Times More Successful than an Email, Harvard Business Review
ICCPM CONNECT | 29
RESEARCH UPDATE Global Research Survey We have commenced a survey to understand and shape the research agenda going forward. We are interested to know what our stakeholder community think should be the research focus in the context of complexity in project management. So please take a minute to give us your feedback. Take the Global Research Survey
INDUSTRY UPDATES
Next Generation Engagement Project At a time of unprecendented investment in Australian Infrastructure, ICCPM is pleased to be an industry partner of the University of Melbourne’s Next Generation Project. Aiming to identify and address industry knowledge gaps in engagement, social risk management and social licence, the research team has been conducting national workshops with over 200 leading practioners and policymakers in the infrastructure sector. In November, the final outcomes from the project were released. Social license expert, Dr Sara Bice, is leading the project on behalf of the Melbourne School of Government (MSoG). She said, “We found raging agreement that there are key questions to be answered within the themes of value, measurement, timing and approaches, regulation and policy and professionalisation in order for the infrastructure sector to efficiently address the $57 trillion infrastructure gap.” Need for shared data on the performance of completed projects, a stronger desire from a longterm focus in decision-making, and improved understanding of community engagement, were recognised as shared issues across the industry. Looking to 2018, the findings from this report will be used to set the agenda for an International research program, addressing identified challenges and opportunities to transform the way proponents work with stakeholders to avoid costly delays and deliver superior project and community outcomes.
30 | ICCPM CONNECT
Those interested in greater detail, a full version of the report was released in early December. Click here to download the Full Research Findings Report.
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Women In Major Project Leadership Major Projects Association event: 17th October 2017
According to the Major Projects Association (MPA), “The global demand for experienced project delivery people is in the tens of millions between now and 2020” (2017). The Gender Balance Initiative is an MPA initiative to support the struggling gender equality issue, as despite 30 years of positive action programs and changes to legislation, gender equality continues to stagnate. Seminar participants discussed the need for companies to change their own practices to ensure more women move into major project leadership. Speakers were invited to share their own experiences and knowledge of women in major projects.
Speakers were invited to share their own e
Highlights from presenters demonstrate the persistent imbalance for senior level women, pointing to organisational culture ‘alpha male club’, the inability of inclusive recruitment opportunities for leadership positions and women’s own routine ability to underestimate and value their own talent, skills and experience as contributing factors.
“Companies that fail to act could fail to win work in the future.” (MPA, 2017)
So what are the potential solutions? In the major projects environment, clients are asking their project teams to be as representative and diverse as their projects own end users. Key suggestions include: Enforced equal pay, higher transparency, intervention through quotas and new organisational perceptions of what is a normal career experience. Full highlights from MPA’s event can be found here.
“Whilst 90% of government policy is delivered through major projects, across the Government Major Project Portfolio, only one in four of the 243 project leaders (senior responsible owners) are female.”
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
ICCPM CONNECT | 31
EDUCATION UPDATE 30
ENROL TODAY! In ICCPM’S CERT IV - Responding to Organisational Complexity
CPD POINTS!*
RTO 41394
Be perfectly positioned for a project management or leadership role within the world of complexity.
What will you learn? Sound theoretical knowledge of complexity theories, frameworks and tools. Develop skills to confidently identify, assess and treat complexity in organisations, and evaluate and implement alternative approaches and strategies to respond effectively. What can you expect? A highly interactive and practical course, involving discussion of current workplace projects and organisational situations. FIND OUT MORE HERE DOWNLOAD COURSE BROCHURE *CPD points available to PMI & AIPM members subject to each organisations requirements
Twitter: @iccpm LinkedIn: International Centre For Complex Project Management
“I needed new ideas to apply in my workplace & this training gave me the insight into appropriate techniques. Non-scientific, non-reductionist approaches are a blind spot at working level - this problem is exposed by this training.”
EDUCATION
Melbourne Student - Lead Through Organisational Complexity course 2017
“Learning from other’s experiences and thinking about how the course topics related to my workplace were the best aspects of this training. The course is well developed & information presented is of a high quality - I would strongly recommend this course to others.” Sydney Student - Respond to Complexity in Project Environments course 2017
32 | ICCPM CONNECT
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Information Sessions In 2018 we will continue to host information sessions for our next intake of courses. We are in the process of planning a session in Brisbane in line with the commencement of the new course. The first units for 2018 course intake for Brisbane, Canberra, Sydney and Melbourne will commence early in the year, please refer to the training calendar for details and follow us on socail media for your local course and enrolment updates. Continuous Development The support and positive feedback from our course participants and industry market to ICCPM‘s Cert IV in Responding to Organisational Complexity has been huge. We are now being asked What’s Next? Following on from this success, we are currently in the development phase of our new Diploma course, helping you take your learning and career advancement to the next level. Your feedback is important to us, please contact us if you wish to advise your preferred course modules, content and learning experience. Twitter: @iccpm LinkedIn: International Centre For Complex Project Management
ICCPM Training Calendar 2018 Cert IV in Responding to Organisational Complexity Dates
Details
Location
14 - 15 February
Risk and Decision Making in Complex Environments
Canberra
4 - 5 April
Lead Through Organisational Complexity
13 - 15 March
Complexity in Project Environments
9 - 10 May
Risk and Decision Making in Complex Environments
10 - 11 July 6 - 8 February
Lead Through Organisational Complexity Complexity in Project Environments
10 - 11 April
Risk and Decision Making in Complex Environments
5 - 6 June
Lead Through Organisational Complexity
26 - 28 March
Complexity in Project Environments
1 - 2 May
Risk and Decision Making in Complex Environments
26 - 27 June
Lead Through Organisational Complexity
11 - 13 April
Complexity in Project Environments
dates to be advised
Risk and Decision Making in Complex Environments
dates to be advised
Lead Through Organisational Complexity
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Sydney
Melbourne
Brisbane
Perth
ICCPM CONNECT | 33
ICCPM NETWORK WE NEED YOU! Be part of the organisation shaping the future of complex projects, programs and environments! ICCPM is now hiring for an experienced Director of Business Development to join our small team in Canberra to drive national sales growth across our education, membership and solutions offerings targeted at individual project and program managers as well as government and corporate organisations.
FIND OUT MORE AND APPLY! Twitter: @iccpm LinkedIn: International Centre For Complex Project Management
Member Profile Alison Lee Alison started her career in the Australian Army as an Australian Defence Force Academy cadet studying Aeronautical Engineering. Following completion of her studies she undertook a number of postings within Army with a focus on operational positions. These postings included deployments to East Timor, Iraq, Afghanistan and an exchange posting with the US Army. During this time Alison also completed her Masters of Business Administration and a Masters of Arts (Strategy and Management). Her time within Army allowed Alison to develop strong leadership and decision making skills in what were often difficult and complex situations with limited information. In 2012 Alison left the Army to work for M5 Network Security, later Northrop Grumman, as a logistics specialist. From here she moved into a Director’s role in Integration and Support managing a number of multifaceted areas of customer support as well as project deliverables for significant Defence projects. Alison is now working as the Logistics Director for Penten Services, a local Canberra business involved in the development of secure communications and cyber security products. In this role Alison is responsible for the development of logistic management systems and processes and for supporting the implementation of manufacturing and support structures for the rapidly growing business. This work provides Alison with a number of challenges in trying to balance the needs of the business for process development and implementation with the need to remain flexible and innovative. 34 | ICCPM CONNECT
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Fellow Profile Nandini Srikantiah Based in Ottawa, Nandini is a project manager at Canada’s Department of National Defence. She has extensive experience within Defence Industry working the Department of National Defence (Canada) where she delivered Major Crown Projects and worked as a Canadian exchange officer working assigned to work at the Australian Defence Materiel Organisation (DMO). Nandini has also delivered international complex project solutions on behalf of Nortel Networks. Nandini Srikantiah is a graduate of the Executive Masters (Complex Project Management); Queensland University of Technology and a certified project manager. She has an M.Sc in Computer Science from the University of Toronto and a B.Sc in Computer Science from Queen’s University Kingston, Ontario. “As an ICCPM Fellow, it is a privilege to be afforded the opportunity to work collaboratively with an expert cadre of thought leaders and practitioners in furthering the discipline of complex project management world-wide. As a seasoned practitioner leading complex projects and programs across public, private and academic sectors, I have learnt that there are no silver bullets, standard processes or easy answers that lead to successful outcomes. Rather, it is in fostering the attitudes, interactions and inter-relations between people and organizations wherein the resilience and solutions lie. My focus has been on identifying and living in the ‘grey spaces’, bridging the gaps both formally and informally between the numerous and varied stakeholders who all must be effectively engaged in order to achieve positive enduring outcomes.”
ICCPM Welcomes New Members Richard Kelly Alicia Jaques Amandeep Singh Darren Spee Gigy George Collin Perera Pat Rawlins Shannon Howell Steven Grant Matt Plant
Natasia Pulford Jega Janarthana Kevin Santos Ching Foreshaw Jennifer Hodgeman Rajan Singh Yazdi Bhote Penelope Lee Jane Wood Michael Frith
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
Sam Bullock Dr. Gaiyasudeen Syed Agata Hajduga Mark Whipp Mitchell Thornton Dr. Stephen Whittle Miguel Cruz Franco Derek Grigg
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ICCPM NETWORK
Why Become an ICCPM Member? Membership benefits include: Monthly member bulletin with exclusive updates
Discounts on ICCPM courses and events
Access to research, communications and information reserved for ICCPM members
Networking Opportunities
Exclusive member events and early notification of ICCPM events
Opportunities to contribute to ICCPM sponsored research Access to ICCPM’s Digital Gateway
Access to the online member forum
How to join ICCPM Visit iccpm.com/register and follow the links to join as either an Individual Member (open to everyone) or a Partner Employee (open to employees of our partners). If you are a Partner Employee please contact us so we can provide you with your Corporate Code. We will be profiling members of the ICCPM network in each issue of the CONNECT magazine; if you would like to appear or suggest someone for a profile in a future edition please get in touch. 36 | ICCPM CONNECT
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LINKS & UPCOMING EVENTS How can groups make good decisions? Interesting TED TALK on constructing healthier group democracy. Ethical Thinking (Part 1)
Developing Next GenerationMajor Project Leaders
Leaders need to take time to think before making decisions!
MPA highlights report
FOOD FOR THOUGHT
Melbourne University: Next Generation Project
Creating Safer AI TED TALK for the vision of human-capability matched AI
Community Engagement: Fostering wellbeing and Resilliance
Ethical Thinking (Part 2)
Getting Beyond the Cost Benefit Ratio MPA Highlights report
Unraveling The Future State Of The World
Why leaders need to fill the ethical thinking gap.
Improving humanity’s prospects for a better future
BUILDING CAPABILITY IN COMPLEX ENVIRONMENTS
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LINKS & UPCOMING EVENTS Event Calendar Dates
Title
Location
14 Feb 2018 23-24 Feb 2018 25 April 2018 30 May - 1 June 2018
ADM Congress 2018 GAPPS TLF - Workshop with practitioners APM Project Management Conference IACCM Australasia Conference
Canberra, Australia Vienna UK Brisbane, Australia
20-22 June 2018
University-Industry Interaction Conference
London
The next edition of CONNECT will be published in mid March - watch out for it in your inbox • More information and registration opporutnities for the 2018 Roundtable Series • Share lessons, insights and opinions from other Project and Program Managers • Stay up to date with the latest industry news • Book Reviews • Education and Research updates • Around the network - upcoming events • Discover the latest complex project management tools and techniques Contributions are welcome and need to be submitted to admin@iccpm.com by 1 March 2018 38 | ICCPM CONNECT
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PARTNERS
ICCPM also recognises the support of the following organisations: AIPM APM (UK) APM Group ARPI CSIRO DAU GAPPS Hudson IACCM IPMA MinterEllison The PM Channel SE Group
Telfer Centre for Executive Leadership
University of Hull
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Keep connected to ICCPM through iccpm.com, find us on Twitter (@ICCPM) and participate in the LinkedIn discussion group.