The New Iron Triangle Politics Finance and Community

The New Iron Triangle – Politics, Finance and Community Yvonne Butler AIPM CEO 1 Encouraging Excellence Through Professionalism in Project Management

Overview 1 Snapshot of the Profession 2 3 2 Project Management Value Chain A Critical Sector Encouraging Excellence Through Professionalism in Project Management

Snapshot of the Profession 3 Encouraging Excellence Through Professionalism in Project Management

AIPM Purpose Peak body for Project Management Professional Recognition Advocate of PM Discipline Assurance and Accreditation Custodian of PM Knowledge & Research 4 Encouraging Excellence Through Professionalism in Project Management

The Statistics 5 Encouraging Excellence Through Professionalism in Project Management

AIPM Timeline AIPM becomes Secretariat for Asia-Pacific Federation of Project Management PM Forum formed in NSW 2014 2011 National Office formed 2010 AIPM Strategy 20152020 Over 10, 000 individual members and 250 corporate members 1989 1981 1976 6 AIPM joins the International Project Management Association PMF renamed AIPM Encouraging Excellence Through Professionalism in Project Management

Origins of Project Management Henry Laurence Gantt 1861 -1919 Mechanical Engineer Joint project offices in the USAF 7 Encouraging Excellence Through Professionalism in Project Management

1950 s: Origins of Project Management Manhattan Project Organization Chart Bechtel Corporation (USA) uses the term ‘project manager’ for the first time 8 Civil & Civic: established processes to manage design & construction - State Library of NSW collection Joint project offices in the USAF Encouraging Excellence Through Professionalism in Project Management

1960 s: Before an Australian Network IPMA formed, 1965 Civic & Civic appoints discrete project managers for work, including the Sydney Opera House PMI formed, 1969 9 Space Race North American Rockwell Shuttle, 1969 Encouraging Excellence Through Professionalism in Project Management

1970 s: Project Managers Come Together APM formed, 1972 Internet (Australia) Formation meeting held in September 1976 PMF Chapters formed First issue of the APM Journal, July 1979 10 Encouraging Excellence Through Professionalism in Project Management

1980 s: PM Systems and Software 1989 AIPM was formally registered 1988 National Conference Committee Microsoft introduced MS Project as an internal tool 11 Encouraging Excellence Through Professionalism in Project Management

1990 s: Standards Communications began to be developed 12 Encouraging Excellence Through Professionalism in Project Management

2000 s: PMOs and Organisation Maturity Communications became more sophisticated 13 Encouraging Excellence Through Professionalism in Project Management

THE STATISTICS 14 Encouraging Excellence Through Professionalism in Project Management

The Constant? 15 Encouraging Excellence Through Professionalism in Project Management

Value Chain 16 Encouraging Excellence Through Professionalism in Project Management

Most organisations only do two things 17 Encouraging Excellence Through Professionalism in Project Management

PM Value Chain © Portfolio Strategy 18 Programs Outcomes Projects Benefits Encouraging Excellence Through Professionalism in Project Management

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PM Value Chain © Strategic Portfolio Definition Strategy Portfolio Programs Outcomes Projects Benefits PROJECT MANAGEMENT DISCIPLINE INTEGRATES Enterprise disciplines: • Risk management • Governance/Compliance • HR/OD • ICT • Change/benefits management • Leadership 20 Project level focus: • Project controls • Project risk • Project quality Encouraging Excellence Through Professionalism in Project Management

Project Controls 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 governance and management decision making. 21 Encouraging Excellence Through Professionalism in Project Management

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But despite the good… • Average project runs 45% over budget • Delivers only 44% of the value expected • Organisations lose 10% on every project dollar spent • 17% of large projects are delivered so badly they threaten the very existence of the organisation • 50% of PMOs close within 3 years • Fewer than 1/3 projects completed on time and within budget • 60% of projects are not aligned with strategy 23 Encouraging Excellence Through Professionalism in Project Management

A Critical Sector 24 Encouraging Excellence Through Professionalism in Project Management

Sector Overview Infrastructure Victoria, Infrastructure Capability Assessment Report, 2016 25 Encouraging Excellence Through Professionalism in Project Management

Aus Infrastructure Plan 1. Making better use of existing infrastructure through the use of data, analytics and technology 2. Investing in integrated long term planning and business case development to prioritise the most productive infrastructure investments for the short, medium and long term. 3. Increasing contestability and efficiency in the delivery of infrastructure services. 4. Diversifying the sources of funding available to invest in the infrastructure we need. 26 Encouraging Excellence Through Professionalism in Project Management

Project Governance “A recent survey of Industry and Government senior executives found that on average 48% of projects failed to meet their baseline time, cost and quality objectives. The inconvenient truth is that, despite the massive effort expended by industry and Government, it is estimated that only a 10% improvement has been achieved in 20 years. ” 27 Encouraging Excellence Through Professionalism in Project Management

Business Council Australia • We need to improve the competitive environment in Australia and reduce project costs by improving project management skills and the capacity of (PMs) to make productivity enhancing decisions • We must lift Australia’s competiveness for undertaking major investment projects by implementing a system that is more conducive to good project performance which will improve national productivity growth 28 Encouraging Excellence Through Professionalism in Project Management

New Iron Triangle? Political Financial 29 Community Encouraging Excellence Through Professionalism in Project Management

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Call to Action 31 Encouraging Excellence Through Professionalism in Project Management

Global Trends 1. Leadership, not just management 2. Sustainability 3. Social and business networks 4. PM competency 5. Professional recognition 6. Strategy to action 7. P 3 Governance 32 Encouraging Excellence Through Professionalism in Project Management

The Future Employers Recruiters Governments The key to our future is delivery! Let’s agree the problem to be solved then deliver it with good project governance. 33 Encouraging Excellence Through Professionalism in Project Management

ybutler@aipm. com. au 34 Encouraging Excellence Through Professionalism in Project Management