Logi Kal Projects Performance Management Specialist We will

Logi. Kal. Projects – Performance Management Specialist We will make your Project Controls work Logi. Kal Projects – Perth Logi. Kal Projects – Brisbane Logi. Kal Projects – Hong Kong Logi. Kal Projects - London Email: info@logikal. co. uk Web: www. logikalprojects. co. uk Twitter: @Logikal. Ltd 8 th Floor, 41 -43 St Georges Tce, Perth 6000 +61 8 6140 2577 320 Adelaide St, Brisbane 4000, QLD +61 7 3182 1179 9 th Floor, CRE 303 Hennessy Rd, Wan Chai +852 8197 8088 27 -29 Cursitor Street, London, EC 4 A 1 LT +44 207 404 4826

Logi. Kal Projects – Performance Management Specialist Recent Trends in Project Controls Survey Results PROJECT CHALLENGE 11 TH October 2016

Logi. Kal Projects – Performance Management Specialist Project controls are the data gathering, management and analytical processes used to predict, understand constructively influence the time and cost outcomes of a project or program; through the communication of information in formats that assist effective management and decision making. Scope Control Schedule Management Cost Management Risk Control Performance Measurement Performance Management Change Management Quality Management

Logi. Kal Projects – Performance Management Specialist Welcome – and purpose of this session • Explain why we did the survey • Review the results and our interpretation • Discussion on implications • Are we drawing reliable conclusions? • What should we be doing to influence the agenda? http: //www. logikalprojects. com/dev/wp-content/uploads/2016/02/Logikal-Survey-Final-Report 1. pdf

Logi. Kal – Performance Management Specialist Why we Projects did the survey? • We know from experience that strength in project controls affects project outcomes • Limited published quantitative evidence to support this assertion • Clients struggling with investment case: • ROI • Confidence • We wanted to get a rounded view on: • Current status of project controls in organisations • Perceived relationship between strength in project controls and outcomes

Logi. Kalthe Projects About survey– Performance Management Specialist • Link sent to our contact groups – therefore biased towards UK / APAC and Infrastructure / Transport / Energy / Construction • Survey of opinion rather than fact • 347 respondents to date • Questions relating to: • Overall status of project controls • Recent experience of project outcomes • Specific status / trends in People / Process / Systems • Information imported into analytics tool for segmented analysis

Logi. Kal Projects – Performance Management Specialist Respondents Number of responses by Country 0 20 40 60 80 UK 100 Number of responses by Industry 120 101 APAC 68 0 50 Infrastructure 50 North America 38 Middle-East 28 Europe 18 Asia 16 Africa South America 9 6 65 Rail and Underground 34 Power and Utilities 27 Commercial 26 Information Technologies 14 Defence 14 Government 11 Mining 10 Financial Sector 150 129 Oil and Gas Global - Undefined 100 4

Importance of project controls Management Specialist Logi. Kal Projects – Performance How does your organisation currently rate the importance of Project Controls in the management of projects and portfolios? Overall Project Controls Importance Strong consensus view that it is regarded as important: 1% • 89% respondents saying their organisations regard it as at least important 10% 26% • 60% of organisations saying it is very important or critical Critical Very important Important 29% Not very important Not important at all 34%

Effectiveness of project controls. Management Specialist Logi. Kal Projects – Performance How effective are Project Controls in delivering strong and predictable outcomes in your organisation’s projects? Overall Effectiveness of Project Controls 2% • 85% regard project controls as at least ‘generally effective 14% 16% • However, 56% identify that there are gaps or that controls are weak or ineffective. Highly effective Meets most needs 28% Generally effective but with gaps Quite weak 41% Not effective at all

Logi. Kal Projects Performance Management Specialist Effectiveness by –region Effectiveness in Project Controls by Region 60% UK 50% 40% Global 30% APAC 20% North America 10% Middle-East 0% Highly effective Meets most needs Generally effective but with gaps Quite weak Not effective at all

Logi. Kal Projects Performance Management Specialist Effectiveness by –sector Industries Effectiveness in Project Controls 50% 40% Infrastructure and Construction 30% Oil and Gas 20% Other 10% Rail and Underground 0% Highly effective Meets most needs Generally effective but with gaps Quite weak Not effective at all

Logi. Kal Projects – Performance Management We asked respondents to rate outcomes from. Specialist recent projects…………. Project Outcomes 70% 60% 50% 19% Some projects underperformed 40% Most projects have met objectives 30% 37% 20% 38% 10% 0% Projects generally failed 5% Successful Unsuccessful All projects have met objectives

Logi. Kal Projects –is Performance Management Specialist And so……. what the relationship between the two……. . Project controls effectiveness Highly effective or meets most needs Successfulness of projects Most Objectives Failed Mixed results Generally effective but with gaps Most Objectives Met Ineffective All Objectives Met 59% of respondents reporting that project controls are highly effective or meet most needs also reported successful project outcomes (all or most objectives met) vs. only 11% for those reporting ineffective project controls

Logi. Kal Projects – Performance Management Specialist PEOPLE

Logi. Kal Projects – Performance Management Specialist Skill levels…. . Skill level of Project Controls Practitioners Skills Development in the Past 2 years 70% The whole team has the necessary skills 7% 4% Most have good skills but some need further training 10% 60% 50% They have deteriorated greatly They have deteriorated slightly 40% 31% Some have good skills but others don't 48% They have remained about the same 30% They have improved somewhat 48% Need to increase skills in the team Standards are poor They have improved greatly 20% 34% 10% 12% 0% 2% 4% Skills have Improved Skills have remained the same Skills have deteriorated

Logi. Kalabout Projects Performance Management Specialist What data–usage Usage of Project Controls Data 0% Successful Projects 20% 40% 9% 60% 80% 50% Unsuccessful Projects 100% 41% 31% 53% Data rarely made use of Mixed Results 16% Data made good use of • Respondents reporting successful projects much more likely to be reporting good use of data • However, this is still less than half of the relevant category – so data usage appears to be weak Skills levels compared with Data usage 60% 48% 50% 40% 39% Low Skill levels 35% High Skill Levels 30% 23% 20% 10% 4% 8% 3% 0% Always Mostly Made good use of Sometimes used Rarely mased use of Not really used

Logi. Kal Projects – Performance Management Specialist PROCESS

Logi. Kalprocess Projectsstatus – Performance Management Specialist Overall Processes status compared with Project Success 40% 36% 35% 29% 30% 25% 20% 35% 22% 17% Successful Projects 16% 15% Unsuccessful Projects 10% 5% 0% 6% 1% 2% They are well drafted and well They are well drafted but lack They fulfil many needs but not They need significant They need a complete redraft integrated integration in some areas all improvement to be effective

Logi. Kal effectiveness……. Projects – Performance Management Specialist Process quality rating - Average Scope management 5. 8 Schedule management Risk management Performance measurement 7. 1 5. 3 Performance management 7. 4 6. 1 4. 6 6. 7 4. 8 Gateway financial approval 6. 0 Cost management Change management 6. 0 6. 4 5. 1 Baseline setting 5. 5 0 2 Successful Projects 4 • Significant difference in ratings overall between categories • Respondents reporting unsuccessful outcomes also reporting lower scores for risk management / performance measurement / management • Respondents reporting successful outcomes reporting stronger scores for Schedule / Performance measurement and Gateway approval 6. 9 7. 3 7. 2 6. 9 6 Unsuccessful Projects 8 10

Logi. Kal scores Projectsof– 8 Performance Process and above Management Specialist

Logi. Kal integration Projects – Performance Process generally low. Management Specialist Overall Level of Processes Integration 2% 17% 38% Fully integrated Reasonably integrated Some aspects are integrated Mainly operating in silos 43%

Logi. Kal Projects – Performance Management But strong integration seems to be linked with. Specialist better outcomes Level of Process Integration Successfulness of projects Fully integrated Most Objectives Failed Reasonably integrated Mixed Results Some aspects are integrated Mainly operating in silos Most Objectives Met All Objectives Met

Logi. Kal Projects – Performance Management Specialist SYSTEMS

Logi. Kal Projectscontrol – Performance Management Specialist Schedule – P 6 dominates Schedule Management tools 0 10 P 6 20 30 40 50 60 70 80 90 82 MS Project 6 Asta 3 Microplanner X-Pert 2 EPM 1 CMT 1 ADe. PT 1 100

Logi. Kal – Performance Management Specialist Cost and. Projects Risks Management appear to be mainly based on Excel Risk Management Tools Cost Management Tools 0 20 Excel Inhouse. . . JDE P 6 c. CS CMi. C Cobra COINS Costrac Ellipse ERP IFS Oracle RIB itwo 4 4 3 2 2 1 1 1 1 1 6 40 60 80 100 96 0 20 Excel 40 60 80 100 120 103 Primavera Risk 11 ARM 8 @Risk 1 Acumen Risk 1 ADe. PT 1 AIM 1 Bespoke 1 CCS 1 EPM 1 RIMS 1

Logi. Kal Projects – Performance Integration…. . overall integration. Management remains quite. Specialist rare Overall Systems Integration 8% 31% Fully integrated Partially integrated Not integrated at all 61%

Logi. Kal – Performance Management Specialist But links. Projects well to successful outcomes…. . Level of Systems Integration Fully integrated Success level Most Objectives Failed Mixed Results Partially integrated Most Objectives Met All Objectives Met Not integrated at all

Logi. Kal Projects –but Performance Management Specialistlow…. BIM is emerging links to project controls currently BIM Tools Usage 50% 40% 35% 30% 20% 10% 0% 5% Use comprehensive BIM modelling integrated to project controls Use BIM modelling but not integrated with project controls BIM capability is emerging No experience of BIM

Logi. Kal Projects – Performance Management Specialist CONCLUSIONS

Logi. Kal – Performance Management Specialist So what Projects do we conclude……… • Project controls is regarded as an important discipline – capability is improving steadily • Based on the views of respondents, organisations with stronger project controls tend to achieve better outcomes • A significant gap between required and actual skills remains • Strengths in Schedule, Performance Management, and Gateway management are strongly associated with project success • Weakness in Risk and Performance Management are associated strongly with project failure • With the exception of P 6 which dominates for schedule management, controls remain very dependent on the use of Excel • Systems and Process Integration is reported as weak in most cases • BIM capability is emerging but is not generally associated with project controls

Organisations with high – dependence on project outcomes may wish to………. . Logi. Kal Projects Performance Management Specialist • Look at their current capability status in controls • Pay particular attention to effectiveness in Risk / Performance Management and Gateway Management • Consider integration opportunities for both systems and processes • Consider building a business case for increased capability based on outcome improvement

Logi. Kal Projects – Performance Management Specialist How? Project Control Maturity Assessment

Logi. Kal Projects – Performance Management Specialist Questions? http: //www. logikalprojects. com/dev/wp-content/uploads/2016/02/Logikal-Survey-Final-Report 1. pdf