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Organizational Foundation - Lessons Learned from Major Programs

July 13, 2008 | Author: admin | Filed under: Program Management, Lessons Learned

Organizational Foundation - Lessons Learned from Major Programs (#30 in the series Foundations, Frameworks and Lessons Learned in Program Management)
By Robert Prieto

The lessons learned on several major programs have been characterized in the context of the program management framework elements previously described. These lessons learned are reflected below.

The programs reflected range from $ 1 to over $ 30 billion in size and from 4 to 30 years in duration and include both US and non-US program management delivery. Over $ 125 billion of program cost is represented by these major programs. Program management lessons learned have been “sanitized” to protect the identity of specific programs. Input derives from program managers or other senior executives and in select instances from lessons learned documents prepared as part of the post mortem process.

Lessons Learned on Organizational Foundation - #1 in Organizational Foundation & Integrated Framework Processes

Program 1: Organizational framework for the program management team is to be integrated with project(s) teams as well as with the sponsors teams. The project organization must be able to relate effectively to all levels both internal and external - including the government. Teamwork, cooperation, cross-attendance at meetings, and interactive reviews are paramount. Centralize control but decentralize authorities.

Program 2: Clear definition of each organization’s functions, responsibilities and interfaces is necessary at outset of program. Owner organization must take lead in development and issuance.Very experienced Owner and program manager staff is essential. Rapid decision making is key.Avoid excessive staff and middle management layers.

Program 3: Owner’s organization must facilitate decision making by key owner staff not just owner’s senior representative. Authority and responsibility must be sufficiently delegated to the Program Manger and as appropriate to lower tier organizational elements. Value of time in large programs must be clearly understood and decisions processes developed and implemented in recognition of this.

Program 4: Owner/PM organizational interface must include ready access to the highest levels of the owners organization so that all parties understand the true condition of the program and ensure that appropriate executive level resources are brought to bear in a timely manner.Executive level reports must be comprehensive, ensuring all program costs are truly reflected and accounted for. An integrated management structure can blur accountability and responsibility and discouraged proactive program management without the governance protections required.

Program 5: Ensure program implementation procedures including delegated authorities are supportive of the execution needs of a mega program. Authority must be delegated in each instance to the appropriate organizational level.Define roles and missions as part of a comprehensive implementation planning process. Teamwork is essential - a team of adversaries is not a team.

Program 6: Owners organization must be integrated with PM delivery partner because owner could not provide enough people with the correct skills to manage program correctly. Ratio of owner to contractor personnel on team was one owner for every five contractor . Total integrated PM team was 600 people. At outset, roles and responsibilities must be agreed upon to reduce confusion and improve effectiveness of the team.

Program 7: Owner/PM organization with clearly defined responsibility and authority needs to be established at outset of project. Organizational foundation must enable rapid decision making.

Program 8: No lessons learned.

Program 9: No lessons learned.

Program 10: Integrated team with owner as decision maker on scope, evaluator of performance and authorizer of payments. Program management plan detailed roles and responsibilities. Partnering used extensively to resolve conflicts.

Program 11: Ensure owner has articulated and program manager understands the owner’s strategic business objectives including any constraints or phasing requirements. Program management roles and responsibilities, degree of integration with owner’s staff, and associated processes and procedures must be clearly established at program commencement. Roles and responsibilities for all other organizational elements within the owner’s organization and program team (designers, contractors, suppliers) must be similarly clearly defined. Integration is key to mega program success - schedule, cost, construction and many other items must be integrated across all organizational boundaries through implementation of a robust set of framework processes.

Robert Prieto, Senior Vice President

Robert Prieto is senior vice president for Fluor, where he leads strategy for Fluor’s Industrial and Infrastructure group. Mr. Prieto focuses on the development and delivery of large, complex projects worldwide.

Prior to joining Fluor, Bob served as chairman of Parsons Brinckerhoff Inc. As head of PB’s board of directors, he was responsible for overseeing management performance, establishing top-level policies, and ensuring the firm’s continued long term success.

He is a member of the executive committee of the National Center for Asia-Pacific Economic Cooperation, a member of the board of directors of the Business Council on International Understanding, a member of the board of the Civil Engineering Forum for Innovation, and co-founder and member of the board of the Disaster Resource Network. He currently serves on the National Research Council’s committee framing the challenges on Critical Infrastructure Systems. Until 2006 he served as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) and served as chairman of the Engineering and Construction Governors of The World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. He is also a member of the board of trustees of Polytechnic University of New York, and was previously selected as alumni of the year by its New York Chapter.

He has had an executive sponsorship role in the World Trade Center Transportation Hub; West Coast Rail Modernization; Train Protection and Warning System; Level 3 Communications Long Haul Network and Superconducting Super Collider.

Prieto holds a master of science in nuclear engineering from Polytechnic University of New York and a bachelor of science in nuclear engineering from New York University.

Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006. For more information, visit www.fluor.com.

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