Innovative Project Delivery Processes - Is there a better way?

RT-271 Topic Summary
RT 271

Overview

The research identifies a new project delivery system for capital projects. The essential question answered was that if the capital project industry does not exist, and a new need were created for it, what would it look like? The findings indicate that the key factors that contribute to innovation and improve productivity of a project are alignment of interests, organizational integration, and management-by-means (MBM) (lean) methods.

An ideal project system consists of: Customer delivery with predictable outcomes, defect-free execution and retention of positive competition; Fosters a relational environment where everyone feels valued and Relationships survive the project; Has a management system with holistic optimization; optimization of the whole, not the parts; Includes collaborative financial management with financial transparency and alignment on compensation; Promotes learning where Individuals develop their capabilities and carry forward Learning from each project to future projects. 

The alignment of interest consists of hierarchical alignment within an organization; cross-organizational alignment between functional groups within organizations and alignment of objectives throughout the project life cycle. 

Organizational integration in a project requires stakeholders to be aligned with project goals and objectives. This full integration of construction project teams is achieved when the team possesses a single focus for the project operates without boundaries among parties and the work mutually benefits the project parties. 

Key Findings and Implementation Tools

1 : Organizational Integration

A high level of organizational integration can be achieved by involvement of all the teams right from the early stages of the project.

Achieving cultural alignment by understanding the cultural complexities and effective project leadership are critical components of organizational integration. (RS271-1, p. 26)
Reference: (RS271-1)

2 : Alignment of Interests

It is possible to achieve alignment of interests without focusing on contract enforcement. One way to do this is by making sure that all project team members understand the final project objective and its value to the owner. Alignment of interest can be achieved by focusing on value delivery and procurement practices that are competitive yet collaborative and aligning interests. (RR271-11, p. 38)
Reference: (RR271-11)

3 : Emergency Projects

Emergency projects may have many or most of the characteristics of an ideal project delivery system. (RS271-1, p. 24)
Reference: (RS271-1)

4 : Management by Means (MBM)

MBM is a methodology that focuses on relationships and processes to achieve targets and flow of work rather than financial targets and accounting numbers. Alignment of interests of parties and MBM alone do not guarantee project success. Organizational Integration is a key element that needs to be accomplished as well. (RS271-1, p. 18)
Reference: (RS271-1)

5 : Acting In Less Than Ideal Circumstances

Creating ideal circumstances for the project to achieve ideal project delivery system is not sufficient. It must occur throughout the execution of project with ability to respond to the dynamic nature of the projects. (RS271-1, p. 27)
Reference: (RS271-1)

Key Performance Indicators

Improved customer satisfaction, Reduced/improved risk, Improved performance/achieved success

Research Publications

Starting from Scratch: A New Project Delivery Paradigm - RS271-1

Publication Date: 07/2011 Type: Research Summary Pages: 32 Status: Supporting Product

Starting from Scratch: A New Project Delivery Paradigm - RR271-11

Publication Date: Type: Research Report Pages: Status:


Supporting Resources

Presentations (CII Annual Conference & Workshops)

Plenary Session - Starting from Scratch: A New Project Delivery Paradigm

Publication Date: 06/2011 Presenter: Number of Slides: 15 Event Code: AC11

Implementation Session - Starting from Scratch: A New Project Delivery Paradigm

Publication Date: 06/2011 Presenter: Number of Slides: 37 Event Code: AC11


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