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Improving the Predictability of Project Outcomes

Event Date

Jun 30, 2013

Type

Conference Presentation - Implementation

Research Team

RT-291

Slides

Topic

Improving the Predictability of Accurate Project Outcomes

DOCUMENT DETAILS

Abstract

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Abstract

Project outcome predictability is actually influenced by factors across multiple core competencies intrinsic to capital project delivery. The team found that the processes and tools used to generate, communicate, and revise a project’s cost and schedule forecasts are as diverse as any other assessment or evaluation undertaken within the industry. However, the research revealed that there were distinct and identifiable practices, that when implemented, distinguished effective project from ineffective ones, with respect to their ability to forecast final cost and schedule outcomes. For owners, changes associated with scope, work planning, and execution disrupt predictability the most, while for contractors, changes associated with scope and control functions were statistically found to be the most disruptive. The outcomes of this research show predictability to be an effective risk mitigation and value-increasing mechanism. Early predictability adds value by enabling the proper response to surprises and changes. Project managers who can foresee impending cost and schedule deviations can mitigate the causes by assigning the right people, implementing the right processes, and encouraging the right behaviors. This study has produced a comprehensive set of recommended practices for improving the accuracy and timeliness of project outcome predictions. This research proves that human behaviors and interpersonal team interactions, all influenced by the culture of the organization have the most significant and profound influence on forecasting. Further, there should be recognition, as presented in this research, that there are certain variables associated with project characteristics, forecasting practices, and management processes that can determine the effectiveness of cost and schedule predictions. Change reasons must be proactively managed, and their potential negative impact to overall performance must be properly mitigated.

Filters & Tags

Knowledge Area

Project & Program Management, Project Controls, Project Planning

Project Phase

Detailed Scope, Detailed Design (Engineering), Procurement, Construction, Commissioning & Startup

Project Function

Project Management, Architects & Engineering, Project Controls, Construction, Commissioning & Startup, Health, Safety & Environmental, Risk Management, Quality Management

Industry Group

Light Industrial, Heavy Industrial, Buildings, Infrastructure

Research Topic

Improving the Predictability of Accurate Project Outcomes

Keywords

Predictability, Cost/Schedule, Forecasting, Management Processes, Earned Value Management (EVM), Change Management, Contingency Management, Risk Management, Business Drivers, Commissioning & Startup, rt291

Related Resources

Improving the Predictability of Project Outcomes

Related Resources

Improving the Accuracy and Timeliness of Project Outcome Predictions

How to Assess and Improve Your Project Outcome Predictions

The Predictability Index — Benchmarking Project Outcome Predictions

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