February 2014 Newsletter - Detail

Caravel Group helps client save $14M (25%) and reduce schedule by 9 months using new Project Delivery techniques!

The Caravel Group recently assisted a client to find $14M in savings (25%) and reduced their delivery schedule by 9 months using our diagnostic tools and applying our approach to effective execution. Our ground-breaking Project Delivery techniques also identified specific organisational and commercial issues that had to be resolved to significantly increase the probability of success.

Improving Project Success Rates

Caravel continues to lead the way in projects with our revolutionary approach that covers both project management and project governance delivery. In the last newsletter we discussed project governance reform and the opportunities that reform could unlock. In this newsletter we discuss how to improve project success rates and the major benefits that ensue.

More evidence of failure

In a recent article in the AIPM’s December 2013/January 2014 Project Manager magazine entitled “The Big Issues”, Ed Merrow says that “industry needs to change the way it thinks about Project Management to improve rates of success” . The article goes on to say that:

• 35% of Mega Projects (>$500M) are successful (a 65% failure); and
• Governance is a major driver of project success

The reported failures are higher than our recent survey suggests (about 50%) however the rate is attributable to mega projects whilst the Caravel/MBS survey looked across the full project spectrum.

This is further support to the survey findings and should provoke considerable thought amongst those accountable for delivering projects.

Projects Deliver Business Strategy

The delivery of projects is normally associated with the delivery of infrastructure, IT systems, organisational change and the like.

It should also be borne in mind that business strategy is delivered by projects. Some years ago Fortune magazine reported that of the CEO’s that are removed from their positions 7/10 are removed for failing to deliver strategy! This is something that goes well beyond the project management team and right to the Boardroom! Judging by the rogues gallery of failed CEO’s regularly published in the press we don’t think that much has changed.

Solution Outline

In order to resolve these issues, an organisation needs to address the following:

• Planning for effective execution
• Measuring and controlling delivery and governance performance
• Identification and removal of constraints to successful execution
• Management of conflicts of interest
• Management of behaviours within the delivery teams

So what can the CEO do to improve the probability of success?

Caravel has achieved an average success rate of 80% which is far higher than the 50% we measured in the Caravel/MBS survey or the 35% claimed for mega projects published in a recent AIPM Magazine! On the surface of it Caravel’s success rate looks like an ambit claim but we have the case studies and references to prove it.

The Caravel/ Melbourne Business School research demonstrated that adoption of selected management practices from the major business thought leaders combined with Caravel’s well established processes and supporting systems deployed over 23 years confirms why we have been able to achieve this success rate.

Keep in mind that this same research (and that of others) demonstrates that, after all the investment into Project Management methods, processes and practices, there has only been a 10% improvement in the success rate over 20 years.

How we can help you be successful

The use of “standard” project management approaches would not be able to unlock these benefits.

Caravel has the answers that can unlock a 1%-3% ROI improvement year on year for your business. Better still, it has a direct impact on your market competitiveness, ability to sell to your customers and to attract investment.

For more on how we can help you achieve your business strategy and improve your project success rates, please contact David Rushton (david.rushton@caravelgroup.com.au) or Paul Myers (paul.myers@caravelgroup.com.au) from our Sydney office