McKinsey&Company Delivering the world’s largest projects Capital Projects & Infrastructure Practice | September 2017‘sinoIneyoq pauisep eu) Buljjapow joi aie siepee| yey pue Wes} ay) dojanap 0} anunuod ‘suoispap ayew 0} Juepyuod ese Koy) Jey) e’NsuD ISN JOUM ayy) aseyd AJaaljop 84) Ul 29UO “PasyuoLd aue sdiysuoNejes Japjoyayeis pue peubije a1e senqueoul pue ysu yeu) ‘paysiiqelse asodind pue sanjen Buoys yjIM Wee} e aunsue ISN J8UME, ‘uy aseyd dnjas uy uj ‘saonoeid g sasuduioo ye ayy ‘uoRIppe Ul “sio}e1)UO YIM sdiysiouLed Buoys ys\iqe}se pue sseooid Jo SUONEyUU!] pUe syauaq au) BUIPUE\SJepUN ‘seLOO}NO Jo diys!auMo In} aye} sn! Sueped “joe[oId e Oy] OU ‘ssauISNg e oy] uN oq ysnW sjoafoud 6:14] -eayin ‘Ajjeuawepun.{ “diysiepea} yoe[oud Jo we ay) 0} jes]US9 aue SjespUl Koy > “s1epee| joofoid Jo uonesoueb }xou oy Bulules} Ul siseydwue YBnoue UAAI6 Jou ese sjoadse diysuapes] esay| “(seojoesd ‘syaspujwi) diyssapea) joafoid jo ye, ay} Jo UoMeoydde Inysseoons auinbe Key) {(spaepueys ‘sessaooad ‘sula}sAs) auo|e ,soualos, jusweBeUeW yoloud uey} a1ow auinbas syafoud aBye|-enIn) “saseesoul Ayxe|dwoo pue azis jooloud se Ayjnolyip ul esee.oU! apnyUBewW Jo Jopio ay pasiseydwia sioUoANOeId peouowedxy eqo|6 peounouue Ajueuino sjefosdefow +009 84} 10} AyuNyoddo uoIIILN ggn e sjUasaidal SI] “%40G~ Jo UNLAAO BINPaYpS pue %OP~ JO UNUAAO JoBpng aBesere Ue YIM ‘SuOJDas ||P SSOI0B JOOd AjjeoUO|SIY UBaq'sey BoUeWOHed ‘4eAOMOH “9L0Z Pue GI0Z USEMJOq “e'd %gz 1 MOJB LOIIIG LgSN eroge syeHpng YM syoafoud uo puads uojonsuo. ‘AwoUod jeqo|6 ay} ul 901 jUeYOdUI! A\BuIseasoU! Ue Aed sjoaloid e6se7 Ayeuiwns oaynoexyThe objective of our effort was to investigate factors that resulted in successful delivery of the world’s largest and most complex construction projects We wanted to understand why the world’s largest The ‘Art’ of Project Leadership construction projects kept overrunning despite extensive = The ‘art’ of project leadership refers research, effort, and publications to the organisational and leadership aspects — We analysed 500+ large projects, capabilities, mindsets, practices — required to deliver researched the existing literature, the largest and most complex construction projects and interviewed 27 ultra-large (S project practitioners’ with a = The ‘science’ of project management (processes, panei re erences ence systems, methodologies) is well documented, however in delivering large projects eat the ‘art’ gains importance with increasing project size We found that mastering and complexity the soft aspects, what we term the ‘art of project leadership’, is = From our interviews and research we distilled 4 & critical to delivering the largest mindsets and 8 practices across project setup and and most complex projects, and fs oaee delivery phases that are critical to project success that little had been written previously on this topicFoe ty oo oaTe plel=)(e¥ [R= le\-M-ANv/ peounouue TVTo}TT Tle I Aoyp bak) 1) (0) 0} Celtel ole) i) (vo 1gsni<) siefoud enn pue eBoW ( (us 19 LSSN>) siosfoud sejyews suomin asn zBulpueds uononysuos jeqo|9 spefosdeBew u! payseau! Bulag si jeydeo ajow Ajayeuoodoid :Burseasoul $s} ezis y9lO1gMegaprojects are prone to cost and schedule overruns across all sectors Historical performance for projects with budgets >US$1 bi Cost overrun’ % 0&G Downstream Mining Other Infrastructure Transport O&G Upstream 086 Midstream Real estate lion, N=274 Schedule overrun? % | 38% | MN% Ea meso} ee eas 63% 63%2b furdung 9 suse 7 —— syedx3 AeSuIyoW ae aa suedx3 Aysnpu| eoualadxe Asaayap yoaloid yo sieak +00 SAjdaI}09 & UYIM SJQUONNOBId yoaloud eByel-e.jjN 1Z PEMAIAJE]U! BAA,Our interviewees suggest that the ‘art’ of project leadership gains importance with increasing project size and complexity and becomes critical for success Organisational capabilities required to deliver Dai! Mindsets Cee nd BEET | Focus of complexity....In a : > this work aad Practices encod emu eet oer) ro rl ay eee esau emis ek! ; deliver. BUR Utes oe Sea Project size and complexityOEY ie ECyT Poe esata CoP CCC elas Pe cacy Pen ees Ores Pee ice Pera een) Poteet eno Erol aizznd ayy joacaid | Burssiwi ‘ euL Buryoeod diysioumo JeSPUIN ys, uonesogel|o diysiepeo7 ainpeyos “4809 sta ueId $8001 vals) HORM 9858S smelMeyu] —,24n}e19}7 Ww % Loe Bm eou2g fe SMOIAIO}U} yoanqes9y17, PIOM ‘SPIOM PAYDIBES % youeas plomad pouinbo, si diysisepea| yeu} MouY jnq ‘sassesoid inoA ysniLThe mindset ‘deadly sins’ that must be avoided Fat Blaming the Contractor and not solving the d m This is the way we have always run projects The Contractor is underperforming, we need to ramp up the pressure a2 @ Blindly following processes fe " 5 | like your idea but | It's the contractor's x know the Project job to bring the y Manager won't project in on-time and consider it because on-budget it's not following process 99siapjoy ‘Aquaysisuoo wu -9ye18 YIM sinoneyeq "SCF voor CQ) sinvonae: EOF wen. ou AAR 00104: pouiseponuq @ — Ajewin aunsu3, uo prey x0, euoiquessy © -0ud NO 3st queweBeuew senquedul soueuuoyed Bye pue aumyno >e[os Bunj00) wea, Su aye00]12 pue Aiquop! f puemuoy idopy ‘uy Ul Sanu Aunyoueg ‘esodund euyoq Arenieg dnjeg Sa008ld ssaoons joelod efiel-e1n 0} jeonUD aye yey) seo1j9e/d g pue sjespulW py sasudwoo diyssepea| jefoud jo ye euInvest in the team{ewooyno (+044) apIsuMoP e Jo} ABEL NOK ay 6 e(suonejas Jepjoyeyers eBeuew 0} 1yBIem sNoK Buyynd Aq “6'8) wee) ayy Suidiey nok aay g éseuiy yee ‘sepnime pue sinoeyaq paulsep ety Buljjapotu jos Wea} doy yy pue Nok eay L ¢Aiquep! pue ‘eunyino ‘esodind pesisep tp tym eu ut eye1edo Spee 0} uonesiueBi0 99[01d NOK Os|I\qOU PUB UBIIE NOK |W! MOH Q {SAAqUBDU! JO quawubije poo6 YM diysuone|a, pased-isnyy e axey NOK og Z2umno pauisep snok aseys (Sio}eAUOD) sYBUed INK og. G e(sino je s1 1 Ajoyeusyn yerp Buipueysiopun) em yy6u ouput ys Jo woWeBeueW aly Bunedo|/e am ary Epareo|unwiwos uaeq sity sey UoReS|ueBI0 21g ul deep moy {129)9 yoaloid exp jo aumyno pauisep ag s| € Eppaloid jeuonipen e ysnf you ‘ssaulsng e se pee} o} 2ige Buleq ‘somijenb 030 ens arey Jo}DaNIG yoolOig NOK Seog. Z epeloid 94) Jo sseoons aly 2oueNyul }SOW UBD CUM sJaPIOUHEIS ‘up Aq paieus pue seep je1sKio aloud oy) Jo esodund aug S| oe ld-O1d ap é$ JOUMO 309/O1d OU} 10} BdIAPY