SYDNEY OPERA HOUSE: PROJECT SUCCESS OR FAILURE?

By Fernando R. De Souza

Success and Failure

How do you define a successful project?

If the product met its business case but the cost and schedule targets weren't met, has the project failed? Is success contingent on the overall value of the project`s product or service?

Success and Failure

A project is successful if it not only met the traditional project managers' definition of success, but also met the projects sponsors' perception of success. (Willard, 2005)

Sydney Opera House: from a project management perspective it was a huge failure but it is arguably one of the most recognized buildings in the world

In numbers
Project management:

Cost overrun of 1300%: estimated to cost $7 million but cost over $100 million.

Schedule overrun of 250%: estimated to take four years but took 14 (19591973).

Some think that budget and schedule overruns are necessary if you are creating a work of art. Do masterpieces require budget

New Metrics and Measurements

According to Willard (2005): Tier 1: Project completion success Tier 2: Product/service success Tier 3: Business success Alternatively Project success = project management success + project product success (Baccarini, 1999)

Traditional view

Tier1- Project completion/management success: Focus on the accomplishment of the project with regards to cost, time and quality.

Extended traditional view

Tier 2- Product/service success Users satisfaction, happiness/willingness of users Tier 3- Business success If the it brings value and how it contributes financially and/or strategically to the business

Questions?

In your opinion, is the Sydney Opera House a successful project?