Project Management Consultant and Strategy Advisor Tunde Ajia shares his insights on how adopting an outcome-based approach can redefine the success trajectory of major projects and the managers who deliver them.
The delivery of major projects has witnessed an exponential transformation in the past few decades, where the buzzwords were predominantly centered around process optimisation and efficiency. Project optimisation and efficiency, where efforts led to the use of techniques such as Linear Programming, Critical Path Methods, Program Evaluation and Review Techniques. Giving project managers a grasp on developing realistic schedules, allocating resources judiciously, and minimising project duration while maintaining the project within the stipulated budget. Fast forward to today, a sea change has ushered in an era where the limelight is firmly fastened on the pursuit of outcomes. Why not? The evolving nature of client expectations and the constant redefinition of project success (to align with socioeconomic and environmental demands) necessitates this. I therefore share insights on how adopting an outcome-based approach can redefine the success trajectory of major projects and the managers who deliver them.
Sample Case: The Channel Tunnel
Let’s cast our eyes back on one of Europe’s most ambitious major project undertakings, the Channel Tunnel. Conjoining the UK and mainland Europe, this megaproject dubbed the “Chunnel” embodied a vision that transcended the confines of engineering excellence of its day. From ideation, construction and commissioning, the Chunnel touches the realms of political diplomacy and economic revitalisation. When work commenced in 1988, the goal was not merely to connect two regions; an amount way less than £11.6billion could have done that. The goal was to foster connectivity and trade across 120 years. Despite facing myriad challenges, including financial overruns and technical setbacks, the relentless focus was on the larger outcome of creating a vital link that would nurture economic and cultural synergy; this focus played a pivotal part in ensuring the project’s successful completion in 1994.
For instance, one of the key challenges in the initial phases was ensuring that the two tunnels met in the middle. Though advanced laser-based surveying equipment was used, such a large project could not guarantee it would work. Another challenge was financing; per the agreement, neither the British nor French governments could fund it so as to mitigate financial risk. There was also another reason: neither government could afford it. Therefore, it was opened up to private sector proposals, attracting over 200 banks who were among the private investors.
Sample Case: Pursuing Outcomes
Since the Channel Tunnel’s first journey 29 years ago, 450 million people and 90 million vehicles of various types have travelled through the Tunnel, says operator Getlink. More so, goods worth €135 billion have been traded between Britain and France using the route now considered one of the seven wonders of the modern world. The Chunnel would not score very high if we judged project success purely by optimised cost, timely completion and quality. Environmental sustainability indicators show that the route emits 90 per cent less greenhouse gas emissions than the equivalent flight, according to Eurostar. With 91 years left in its life span, it would continue to serve various generations of users until 2114.
The outcome-based approach in brief
An outcome-based approach encapsulates a forward-thinking vision, where the focus is hinged upon the end goals and the broad impacts that the project intends to achieve rather than a myopic view of ticking off milestones.
This shift in perspective requires not only a strategic rethink but also a cultural realignment within project teams. Here, I will outline seven essential elements of a successful outcome-based approach.
1. Aligning Stakeholder Vision
With managing major projects, the emphasis often leans heavily towards process adherence and milestone achievements. However, steering towards an outcome-based approach necessitates a cohesive alignment of stakeholder visions. Stakeholder engagements should be nurtured to foster a clear understanding of the overarching goals and the broader impacts that the project aims to accomplish.
2. Dynamic Risk Management
The intricacies involved in major projects requires a dynamic approach to risk management. An outcome-based approach encourages project managers to envisage risks not merely as process impediments but as potential disruptors to the larger project outcomes. I believe such foresight facilitates the development of robust mitigation strategies that align with the project’s ultimate objectives.
3. Flexibility and Adaptability
Adapting to changing circumstances becomes increasingly crucial as projects journey from initiation to completion. Perhaps no other class of projects are more susceptible to changes than major projects. Thanks to their size, scope and timeline, they are vulnerable to market forces, technological disruption, sociopolitical tides and, internally, a maze of politics.
An outcome-based approach provides a flexible methodology that accommodates evolving project dynamics without losing sight of the end goal. This agility enables project teams to realign strategies effectively to safeguard the more significant project outcomes.
4. Integration of Technology
Although my previous point mentions technology in passing, its sheer impact on project outcomes deserves a standalone. One way to mitigate technological risk is to integrate it across the project’s timeline. In a world that is rapidly embracing digitalisation, the integration of technology is no longer a luxury but a necessity. Leveraging technology facilitates data-driven decision-making, enabling project managers to make informed choices that align with the broader project outcomes.
5. Developing Outcome-Oriented Metrics
As the adage goes, “What gets measured gets managed”. Shifting the focus towards outcome-oriented metrics enables project teams to gauge the real-time impact of their strategies on the broader project objectives. This shift from output to outcome metrics fosters a culture of continuous improvement, driving the project towards successful fruition.
6. Fostering Collaborative Learning
An outcome-based approach thrives on the pillars of collaboration and knowledge sharing. Therefore, encouraging cross-functional teams to share insights and learning fosters a collaborative ecosystem that nurtures innovation and facilitates the achievement of broader project outcomes.
7. Cultivating Leadership Excellence
Steering a project towards its envisioned outcomes requires a breed of leaders who are adept at navigating the complexity of major projects. To paraphrase the words of Stephen R. Covey, “Project management works in the system. Project leadership works on the system”. Cultivating leadership excellence ensures that teams are guided by visionary leaders who harbour the expertise to steer the project towards its intended outcomes.
As managers of major projects, embracing an outcome-based approach requires a seismic shift in thinking and operational strategies. It beckons us to rise above the traditional confines of project management, urging us to foster a visionary outlook anchored on the broader impacts that the project intends to achieve.
References
Flyvbjerg, B. (2014). What you should know about megaprojects and why: An overview. Project Management Journal, 45(2), 6-19. https://doi.org/10.1002/pmj.21409
Morris, P. W. (2013). Reconstructing project management reprised: A knowledge perspective. Project Management Journal, 44(5), 6-23. https://doi.org/10.1002/pmj.21370
Kerzner, H. (2018). Project Management: A Systems Approach to Planning, Scheduling, and Controlling (12th ed.). John Wiley & Sons.
Müller, R., & Turner, R. (2010). Leadership competency profiles of successful project managers. International Journal of Project Management, 28(5), 437-448. https://doi.org/10.1016/j.ijproman.2009.09.003
Channel Tunnel Group Ltd/ France-Manche S.A. (1994). Channel Tunnel: Project Management Case Study. Channel Tunnel Group Ltd/ France-Manche S.A.
Winter, M., Smith, C., Morris, P., & Cicmil, S. (2006). Directions for future research in project management: The main findings of a UK government-funded research network. International Journal of Project Management, 24(8), 638-649. https://doi.org/10.1016/j.ijproman.2006.08.009
Tunde provides numerous organisations and governments with advice on strategy for managing megaprojects, developing infrastructure, and financing projects.
Tunde is also an active volunteer in the project management community and currently sits on the board of the Project Management Institute (PMI) UK Chapter and Oxford Urbanists (OU).
He holds an MSc in Major Programme Management from the University of Oxford, an MBA from Grenoble Graduate School of Business, France, an MSc in Project Management from Northumbria University, and is currently a Doctoral Researcher at Cranfield School of Management, researching the complexity of projects.
Connect with Tunde on LinkedIn: @Tunde Ajia and Twitter: @Tuibaj.