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Programme Management Effects

Programme Management Effects

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Published by cakalil

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Published by: cakalil on Oct 27, 2008
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06/16/2009

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Programme Management effects – Kansas City CIMO example:
Extract from:http://www.pwmag.com/industry-news.asp?sectionID=768&articleID=362838 
See more on CIMO at:
:http://www.kcmo.org/cimo.nsf/web/home
 
]
Fast-tracking the future
By 2004, Kansas City faced a backlog of projects worth more than $240million. Teaming with private consultants, the city created a separate agencyto be its “economic engine for redevelopment.”
Source: PUBLIC WORKS MAGAZINE
Publication date: 09/01/2006By Michael Musgrave
 Kansas City, Mo.'s deteriorating urban core needed a jump start. City leaders neededto upgrade its crumbling infrastructure to draw people and businesses and revitalizeblighted areas into commercial, cultural, entertainment, residential, and retail hubs.Such initiatives stagnated, however, when inefficient, outdated, scattered municipalprocesses could not deliver projects quickly enough. Compartmentalized withinvarious city departments, those processes lacked a common systematic approach,defined schedules, and accountability to resolve issues and push projects forward.With the public works department able to deliver an average of only $40 million inprojects annually, already funded projects were stalled from three to 10 years.Backlogged project budgets swelled with rising inflation costs. Contractors hesitatedto bid on city projects or give the city “preferred client” status because of lengthytimeframes for bid-to-notice-to-proceed and contractor payment.By 2004, the city faced a backlog valued at more than $240 million.
MEETING THE NEEDS
 To fast-track its future, Kansas City needed to streamline project delivery and relieveits capital projects backlog.In early 2004, mayor Kay Barnes, the city council, and city manager Wayne Cauthenaddressed that need by launching the Capital Improvements Management Office(CIMO). CIMO is an innovative, integrated public-private project management teamcomprising city staff, consultants from MWH Global Inc., a Colorado-basedengineering consulting firm, and locally based consulting firm Burns & McDonnell.The city took the unprecedented step of placing these consultants in key CIMOleadership roles, including the director spot, giving them authority and responsibilityto make decisions on the city's behalf.“We recognized that developing a centralized capital improvements office requiredprivate-consultant support, and that placing consultants in key leadership positionswas crucial to CIMO's rapid development and success,” says Cauthen. “Those stepsallowed us to be more accountable to Kansas City's people and to be better stewardsfor the city's public infrastructure resources.”
 
CIMO's mission was to create a better-built community through lasting improvementsto Kansas City's project-delivery system. Specific objectives were to:
Fast-track project delivery by applying industry best practices.
Reduce capital improvement project backlogs.
Spur area economic development.
Prepare city staff to assume CIMO leadership positions within three years,while providing for ongoing project delivery improvements.
A NEW CULTURE
 CIMO transformed the city's old, siloed capital project delivery processes into aproject-delivery-focused culture using a centralized approach. Apivotal first step wasinitiating project-centric teams such as those used in private industry.Under the project-centric team model, a single project manager is accountablethroughout all project delivery processes, with the support of a knowledgeable, cross-functional team to help make decisions and resolve issues. Teams specializing inpublic infrastructure projects such as streets, streetlights, bridges, and parks worktogether from funding through completion.To complete the transformation, CIMO introduced powerful tools based on industrybest practices. These included project delivery controls using key performanceindicators to track progress of delivery processes toward stated goals, and systemsto provide project managers, teams and city staff with up-to-date project informationand standardized project delivery tools. CIMO also launched an external Web site togive the public transparent access to project scope, schedule, and status, and toallow contractors to look ahead on future bids.In addition, CIMO implemented education and training methods such as “KCMOUniversity,” a series of structured professional training courses, to transfer professional project delivery knowledge and skills to city staff and embed private-industry best practices within city government.
Reduce capital improvement project backlogs.
Spur area economic development.
Prepare city staff to assume CIMO leadership positions within three years,while providing for ongoing project delivery improvements.
The projects steered by theCapital ImprovementManagement Office includethe $835 millionentertainment district,which stretches acrossseven square blocks andfeatures movie theaters, liveentertainment venues,corporate offices, andresidential spaces.
 
 When Kansas City's CapitalImprovement ManagementOffice launched, thepartnership between cityofficials—such as citymanager Wayne Cauthen,left, and private consultantsincluding MWH Globalproject executive MikeMusgrave—openly sharedwith the public its plans tostreamline capital projectdelivery. Photos: MWHThe $135 million expansion of Kansas City'sBartle Hall Convention Center is one of themany projects administered by the city's public-private management team.
“Their program to train city staff ensured that the proper professional skill sets are inplace for CIMO's long-term success,” says Cauthen.Now a formal department of city government, CIMO directs $1.2 billion inredevelopment efforts, including downtown's $835 million entertainment district, the$135 million Bartle Hall Convention Center expansion, and the $276 million SprintCenter Arena—plus $190 million in neighborhood and public service projects. Theseefforts are generating as many as 5000 jobs, $170 million in annual state salesbenefits, convention business averaging $7 million annually, and $15 million in netconvention-expansion-related annual direct spending.Cauthen calls CIMO the city's “economic engine for redevelopment” because everydollar of public funds invested in the community results in $3 to $4 of private fundsbrought to Kansas City. “New venues, facilities, and services being developed under CIMO's direction will enhance opportunities and quality of life for everyone in KansasCity and its surrounding communities,” he says. “They're also attracting visitors andnew businesses, thus increasing the city's tax revenue.”
WATCHING A CITY'S REBIRTH
 

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