Paradigm Shift | Project Management Magazine Spring 2020 by Australian Institute of Project Management

PARADIGM SHIFT THE AIPM DIGITAL MAGAZINE

THE RECOVERY EDITION

SPRING 2020

Stream project management content on your time with our new video library of past webinars and online events at AIPM OnDemand. ONDEMAND.AIPM.COM.AU

CONTENTS MESSAGE FROM THE CEO . . . . . . . . . 4 IN THE NEWS. . . . . . . . . . . . . . . . . . . . . 5 INNOVATIONS AND INSIGHTS REFINED AUSTRALIAN DEFENCE OBJECTIVES. . . . . . . . . . . . 8 SPECIALIST PROJECT MANAGEMENT WILL DELIVER THE BEST OUTCOMES. . . . . . . . . . . . . 12 HOW RESILIENT IS YOUR PROJECT TEAM? . . . . . . . . . . . . . . . . . 18 LEVERAGING THE PROPERTY INDUSTRY TO SUPPORT ECONOMIC RECOVERY . . . . . . . . . . . 24

Cover image: Australian Defence Force personnel from Adelaide, South Australia disembark a Royal Australian Air Force C-130J Hercules aircraft at Melbourne Jet Base airport to provide support to Op COVID-19 Assist (Source: Defence. Photographer: LAC John Solomon).

Paradigm Shift is published quarterly. Calls for articles for the next publication will be made approximately 45 days before publications. Please see the back page for more details on how you can feature in our next edition

PROJECTS IN THE SPOTLIGHT BRISBANE AIRPORTâ&#x20AC;&#x2122;S NEW PARALLEL RUNWAY. . . . . . . . . . . . . . 28 HOW GS1 AUSTRALIA PIVOTED TO SUPPORT PPE MANUFACTURERS. . . . . . . . . . . 34 NSW HEALTH INFRASTRUCTURE PROGRAM. . . . . 38 RESEARCH CONSTRUCTION, COMPLEXITY, COLLABORATION AND COVID-19. . . 42 ENSURING PROJECTS ARE EFFECTIVE AND EFFICIENT . . . . . . . 46 FELLOWS FORUM REBUILDING INFRASTRUCTURE THROUGH THE CIRCULAR ECONOMY . . . . . . . . . . . . 52 CONNECT WHAT EVENTS ARE COMING UP? . . . . . . . . . . . . . . . . . . . . 56 3

MESSAGE FROM THE CEO ELIZABETH FOLEY

Welcome to the Spring edition of Paradigm Shift. Like Spring, we are seeing the first green shoots of government and business plans to recover from the COVID-19 crisis. How can project management as a profession support Australia in its recovery efforts? For this special issue of our magazine, we have a range of articles that really pinpoint where we are headed as a nation, starting with a feature article on the “Refined Australian Defence Objectives” from the Hon Linda Reynolds, Minister for Defence. We also hear from project managers that have pushed through and delivered incredible projects during such a challenging time, plus plenty more on the subject of COVID-19 recovery. AIPM has recently conducted a survey with KPMG to find out where project delivery is currently standing and how the events of 4

this year have impacted the project management world. The results of our Project Insights Survey 2020, will be available on International Project Management Day this year. In the coming months, we are also looking forward to announcing the winners of this year’s Project Management Achievement Awards (PMMAs). We received a great number of entries, showcasing exceptional achievements in program and project delivery and are planning a virtual presentation to showcase the winners later in the year. We are on the path to recovery and now, more than ever, project managers will play a vital role in Australia’s recovery. The Australian Institute of Project Management (AIPM) will continue to look for ways to advocate on behalf of members to ensure that project professionals have a seat at the table and have a role in shaping our recovery efforts. Enjoy reading, Elizabeth Foley MAIPM MCom BBus FAICD CEO AIPM

IN THE NEWS HERE’S WHAT HAS BEEN HAPPENING AT AIPM

OUR 2020 PROJECT MANAGEMENT SURVEY Over the past few months, we have invited project managers to have their say on how COVID-19 has impacted Australian project delivery performance, by taking part in our Project Insights Survey with KPMG. Our 2019 survey results pointed to challenges in applying consistent governance oversight and managing benefits and change through the project lifecycle. As we look to use projects to rebuild our economy, will these results change this year? Our report will be available on International Project Management Day (Thursday 5 November) as part of a virtual event, which will be available across the country. Put the date in your diary now.

PROJECT MANAGEMENT IS NOW A RESEARCH CLASSIFICATION Another milestone has been achieved for the project management profession. The Australian Research Council has now included “Project Management” as a research classification in Australia and New Zealand with the code 350713, listed under Strategy, Management and Organisational Behaviour. AIPM worked with Dr Julien Pollack at the University of Sydney to ensure the prominence and legitimacy of this important area of interdisciplinary research. This is a crucial step in increasing the prominence and legitimacy of research around the area of project management.

PMAA SUBMISSIONS HAVE NOW CLOSED AND WE ARE READY FOR JUDGING! We would like to acknowledge and thank all of those who have entered this year’s awards. In its 20th year, the 2020 Project Management Achievement Awards (PMAAs) celebrate project management excellence and innovation across 13 award categories for both organisations and individuals. With our submissions now closed, stay tuned as the winners will be announced in the coming months.

AIPM ADVOCACY OVER 2020

OVER THE YEAR, AIPM HAS BEEN INVOLVED IN A NUMBER OF IMPORTANT ISSUES. BELOW ARE SOME OF THE RECENT ACTIVITIES WE HAVE BEEN SUPPORTING SINCE OUR LAST EDITION.

A Community of Practice Roundtable has been formed in NSW to capture the cur

NSW BUILDING COMMISSIONER CoP ROUNDTABLE In partnership with Western Sydney University, we coordinated the involvement of 15 AIPM representatives to contribute to the first NSW Building Commissioner Community of Practice (CoP) Roundtable on the theme, “Current and future landscape of construction industry’s professional services”. Further roundtables are being coordinated for AIPM representatives to contribute to the ongoing shaping and rollout of the new 2019 Design and Building Practitioners Bill, and the 2020 Residential Apartment Buildings (Compliance and Enforcement Powers) Bill. 6

rrent landscape of the construction industry. (Source: Unsplash)

SUPPORTING MAJOR INFRASTRUCTURE AND CONSTRUCTION PROJECTS

ENSURING GRADUATES ARE “JOB-READY” TO DELIVER FUTURE PROJECTS

As part of the planning initiatives to pull the economy out of the impact of the COVID-19 crisis, we have been in correspondence with several federal and state government ministers about the acceleration of major infrastructure and construction projects. AIPM and its industry partners have been encouraging governments to put these discussions into action and ensure that competent project managers are at the helm of these major infrastructure projects.

Following the announcements of numerous major projects being brought forward, the “Job-ready Graduates Package” has also been announced, which will provide an additional 39,000 university places by 2023. AIPM has written to a number of prospective academic partners outlining AIPM’s support to leverage the package through the endorsement of project management tertiary and vocational courses. Read our media release here. 7

INNOVATIONS AND INSIGHTS

REFINED AUSTRALIAN DEFENCE OBJECTIVES SENATOR THE HON LINDA REYNOLDS CSC, MINISTER FOR DEFENCE EXPLAINS WHY OUR CHANGING WORLD AND REFINED AUSTRALIAN DEFENCE OBJECTIVES OFFER OPPORTUNITIES FOR PROJECT MANAGERS.

Avionics Technician Leading Aircraftman Ryan Johnson of No 77 Squadron, inspects the nose gear strut of an F/A-18A Hornet. In line with Australian Governm health and safety of its personnel due to COVID-19. (Source: Defence. Photographer: SGT Guy Young)

The world we all grew up in is no more. Our region is now facing the most consequential strategic realignment since the end of World War II. Across the Indo-Pacific, countries are modernising their militaries and increasing their preparedness for conflict. New weapons and technologies like hypersonic glide and long-range missiles, autonomous systems, space and cyber capabilities, and AI – are transforming the characteristics of warfare. 8

Some nations are increasingly employing coercive tactics – such as cyber-attacks, foreign interference, and economic pressure – to exploit the grey area between peace and war. And the COVID-19 pandemic is still an active and unpredictable threat. All of these factors and pressures are contributing to uncertainty and tension, raising the risk of military confrontation and strategic competition while compromising free and open trade. As the Prime Minister observed, we need to be prepared for a postCOVID world “that is poorer, that

ment Advice, Defence has implemented significant measures to ensure the

is more dangerous, and that is more disorderly”. As the Prime Minister observed, we need to be prepared for a post-COVID world “that is poorer, that is more dangerous, and that is more disorderly”. The recently announced 2020 Defence Strategic Update is a timely and detailed response to the demands of our constantly evolving Defence environment. The companion 2020 Force Structure Plan articulates what this will look like over the coming decade, and

what it will cost. Importantly, it provides industry with insight into Defence’s capability needs and underscores the need for their closer partnership across the full spectrum of capability requirements. Together, these two documents signal and substantiate Australia’s resolve to pursue three new Defence objectives: • first, to shape our strategic environment; • secondly, to deter action against Australia’s interests; and • thirdly, to respond with credible military force, when required. Shaping our strategic environment means Australia working even closer with our friends, partners and allies to ensure a stable, prosperous and rules-based IndoPacific where the sovereignty and independence of all states, large and small, is respected. That is, an IndoPacific where disputes are resolved peacefully without coercion; where there is cooperation and healthy competition, not confrontation and conflict. Australia’s Defence activities will focus on our immediate region: the area ranging from the northeastern Indian Ocean, through maritime and mainland South East Asia, to Papua New Guinea and the South West Pacific. We will seek to enrich partnerships through cooperative Defence activities and capacity building initiatives, like joint-training exercises, delivering security-related infrastructure and maritime deployments. 9

Our capacity to deter and to respond will also be sharpened. Over the next decade the Government is investing $270 billion in Defence capabilities across five domains – maritime, land, air, information and cyber, and space. In particular, we will develop long-range strike weapons, offensive and defensive cyber, and area denial systems to hold a potential adversary’s forces and infrastructure at risk from greater distances, while influencing the decision-making of those who seek to threaten our national interests. The Government is bolstering capabilities by investing in: •m ine warfare; • integrated air and missile Defence; • r emotely piloted, semiautonomous and autonomous systems and aircraft; • integrated intelligence, surveillance and reconnaissance programs; • a sovereign controlled network of satellites; and • the exploration of directed energy weapons. Moreover, we will increase the ADF’s ability to address multiple and concurrent challenges, such as its capacity to support civil authorities in response to national and regional crises and natural disasters. This means developing more assured and resilient supply chains and expanding sovereign industrial capabilities – a necessity directly reinforced by the COVID-19 pandemic. Australia’s Defence industrial sector comprises some 4,000 businesses 10

which employ some 30,000 people. These businesses, in turn, are supported by an additional 11,000 Australian companies. Moreover, when downstream suppliers are considered, early analysis shows that Government investment in Defence capabilities benefits some 70,000 workers. And we expect this number to keep growing. Through the Australian Industry Capability Program, ten Sovereign Industrial Capability Priorities have been identified which present a range of opportunities to maximise Australian Industry participation and support growth of Australia’s sovereign Defence industrial base. At this critical time, this can bring greater certainty for industry, jobs for Australians, and more resilient capabilities for the ADF. Our Defence capabilities will be further enhanced by targeted research which brings together the distinct strengths of academia, industry and publically-funded research agencies to address some of our biggest strategic challenges. Over the next decade, the Government has allocated $3 billion of capability investment funding for Defence innovation, science and technology. We will increase investment in the Next Generation Technologies Fund and the Defence Innovation Hub. And by the middle of this decade, we will establish a Capability Acceleration Fund for the intensive development of disruptive technologies. Highly skilled project, product and program managers are the

Australian Army soldiers from the 3rd Battalion, the Royal Australian Regiment, provide security for battle casualties during Exercise Long Khanh in Townsville Field Training Area. (Source: Defence. Photographer: CPL Brodie Cross)

key professionals that will have responsibility for managing complex projects of national significance and who will successfully lead the delivery of capability outcomes for the Australian Defence Force (ADF) – on budget, schedule and to the desired quality. More broadly, a thriving and engaged project management sector will inject vitality into our economy and help steer the nation on the road to recovery from the financial impacts of COVID-19. Defence’s current project managers are certified through AIPM. Their experience, skills and ongoing training contributes significantly to Defence’s capability and infrastructure development, its science and research endeavours, and the Government’s security and development initiatives at home and in our immediate region. These are some of the most complex and important projects of our time which will have lasting strategic implications.

I encourage all project management professionals to read the 2020 Defence Strategic Update and 2020 Force Structure Plan with a view to potential opportunities for highly skilled people like you. I hope that, equipped with these insights, you too will look for ways to become engaged with Defence and utilise your skills for Australia’s strategic benefit. Author: Minister Reynolds was sworn in as the Minister for Defence on 29 May 2019. Minister Reynolds served for 29 years in the Australian Army as a Reserve Officer in a wide range of part and full time appointments. She was the first woman in the Australian Army Reserves to be promoted to the rank of Brigadier and was awarded the Conspicuous Service Cross. Minister Reynolds was elected to the Australian Senate in 2014 and again in 2019.

INNOVATIONS AND INSIGHTS

SPECIALIST PROJECT MANAGEMENT WILL DELIVER THE BEST OUTCOMES

WITH THE STAKES SO HIGH AND THE ECONOMY SO UNCERTAIN, NEVER BEFORE HAS THERE BEEN A MORE CRITICAL TIME TO ENSURE WE LEAVE A LEGACY OF MONEY WELL SPENT ON PROJECTS THAT MAKE A CHANGE AND SOLVE LONG TERM PROBLEMS.

(Source: Canva)

As COVID-19 disruption continues to put pressure on our economy and heighten uncertainty in the marketplace, Australiaâ&#x20AC;&#x2122;s federal and state governments are kicking off the recovery process using multiple economic levers, including fast tracking shovel ready projects. 12

The volume of projects commissioned across every state and territory are worth billions of dollars and present a huge opportunity for our country as well as future communities … if we get it right. As governments strive to deliver results under significant pressure, the project management profession has a valuable role to play in ensuring we do get this right, and that these shovel ready

projects achieve their strategic goals – supporting economic growth, generating jobs, and creating resilient infrastructure that is fit-for-purpose. What’s needed to ‘get it right’ through this infrastructure stimulus package? History reminds us that the pressure to deliver large volumes of shovel ready programs can exacerbate weaknesses in 13

the structure and processes adopted by organisations, contractors, construction, and the engineering, architecture and design industry as a whole. Agencies with significant increases in capital spend often need a significant uplift in governance, skills and expertise to deliver that spend in a strategic and diligent way to achieve the best outcomes. This highlights the pressing need for competent and qualified project managers to deliver projects to a high standard, as efficiently and effectively as possible, to deliver on the government’s stimulus strategy. If the project management profession can tackle this collaboratively with government, we could reshape the future of project management, and the value of programs delivered.

CRITICAL SUCCESS FACTORS We know what good looks like, how do we get there? When it comes to project outcomes and the key elements of managing shovel ready projects, government and professional project managers know what good ‘looks like’ – on budget, on time, delivers scope, is safe, and good culture around the project. The main challenge is how we get 14

there and how we transition to best practice on a widespread, consistent basis, nationally. We’re seeing an evolution where organisations are now more aware of the benefits of increased structure around establishing professional project management. Those leading the way have several critical factors in common, they: • Get the basics right and make sure the fundamentals are done well and pause, consider, and assess processes to ensure they are robust, and ready. When forced to move fast, before pushing go or pressing stop, critically assess your circumstances and ask: Are we ready to grow? Are we ready to do this? Do we have existing weaknesses in our systems and processes? Can we fix these issues before we take on this new project work? •M ake sense of uncertainty with a scalable methodology and diversity of expertise and perspective, such as that of a multidimensional Capital Program Assurance solution that adopts a structured, riskbased solution to manage risk, reduce ballooning project costs, and safeguard the value of assets. Taking an evidence-based approach to decision making can make

all the difference. It helps to navigate uncertainty and underpins success. It provides assurance. Fundamental to the success of this approach is diversity of expertise, and project management is a critical part of this mix. A multidisciplinary skillset of deep real-world experience – in legal, project management, procurement, risk, finance, stakeholder management and governance – can better pinpoint the root cause of potential, current and future issues and can ultimately contribute to a broader range of solutions for a broader range of problems. •E mbrace digital technology and tools to move success measures beyond time, cost and quality, and towards realtime insights, data analytics and asset performance. The current raft of shovel ready projects presents an opportunity to invest in digital ways of working and use stimulus funds to not only inject construction money into the economy, but also to leap forward in the technology space, and create a responsiveness that will enable the project management profession to rapidly and flexibly adapt to future challenges and disruptions.

• Move away from process/ procedure project management to a more human centred management culture. A combination of racing to the finish line and a commonly adopted focus on process/ procedure type project management, can create negative impacts for the people at the centre of these projects. This fast paced, everchanging COVID-19 environment presents an important opportunity to deliberately step towards developing a human centric management culture to achieve better outcomes for the people at the centre of managing these projects, and for our communities. • Elevate project management to a more strategic level to create a professional legacy, community legacy and government legacy. When project managers have more input at a strategic level, improvements are made, and better outcomes are achieved. Having an equal voice at the ‘top table’, moving from doer to advisor, is an important part of the solution for achieving the best possible strategic outcomes for projects, and for the future of the profession. 15

(Source: Pexels)

LEARNING FROM PAST RECOVERY PROJECTS These moments in history do not come around very often – it’s a once in a generation response to a once in a generation pandemic – which makes it even more critical to get this right and learn from the experience of stimulus packages over the past few decades. Looking back at the centrepiece of Australia’s Global Financial Crisis stimulus response – Building the Education Revolution, the program’s Implementation Taskforce Report, released in July 2011, provided some pertinent insights into the Australian construction and project management industries and capacity to manage infrastructure projects of this kind. 16

The report specifically called out project management as a problem area, with lack of coordination at a national level in terms of qualification and structure. It highlighted inconsistencies in work performance and quality control issues in tradesmanship and on-site project management. However, these issues were not present when efficient project management was in place, resulting in many good quality buildings. The report made a case for governments to strengthen their project management capability, increasing the skillset in the public sector. It also noted a need for a consistent approach to qualification in the market. This consistent approach to certification and qualification has been taken

by AIPM and its members for many years, consisting of a standard set of competencies and assessment which can achieve the level of assurance the Building the Education Revolution report asks for. These learnings can help inform how we approach this current tranche.

A CAUTIONARY TALE If we don’t take this opportunity to learn from our past, get the basics right, assess projects holistically, take a human centred approach and elevate our profession to a more strategic level, there will inevitably be downsides for both the public and private sectors – from reputational damage to loss of votes for a government and impacts on people and on the economy. There are also significant health and safety implications, as we saw with the home insulation program (Pink Batts) where four people died and many were injured. The implications of not getting this right are serious and far reaching. But when we get this right, when we deliver these projects in the right way – with accountable governance, making sure an organisation’s systems and methodologies are aligned to operation, risk and internal

capabilities – we can deliver the best outcomes for Australia. It’s our role as project managers to make this happen. It’s also our role to ensure we leave a legacy not just for our country and communities, but also for the project management profession itself. This is a profound moment in history where the decisions we make will impact our way of life for generations to come. The projects delivered will shape our economic future and be remembered as a formative period for the professionals that deliver them. If we use this moment in history to proactively step up and embrace our new role – not just in driving process and procedure but also in shaping and developing the human side and the strategic side – we can shape our destiny as a profession. Let’s not wait for disruption to take us there. Author: Lachlan Waite is a progressive and intuitive Program Manager who is currently working in Aurecon’s Global Advisory Business. He has established himself as an intelligent and forwardthinking Program Manager who has provided leadership and management advice to commercial and government organisations globally.

INNOVATIONS AND INSIGHTS

HOW RESILIENT IS YOUR PROJECT TEAM?

HOW PROJECTS OF ALL TYPES CAN WEAVE RESILIENCE PRINCIPLES INTO PROJECT MANAGEMENT ACTIVITIES, IMPROVING THE OVERALL PROJECT ECO-SYSTEM AND CREATING PURPOSEFUL VALUE FOR ALL STAKEHOLDERS.

Resilience can mean different things, depending on the context in which it is being looked at. For teams that manage projects, and the organisations that are involved in them, a perspective on resilience is how well they collectively anticipate, absorb and adapt in a purposeful way to changes and events that impact the project environment, including the project value chain and local community stakeholders. 18

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The ability to achieve a “purposeful state of resilience” hinges on how people on the project work together to look ahead, plan, anticipate and adapt to change and circumstances.

THE NEED FOR RESILIENCE IS CRITICAL IN TODAY’S WORLD As we progress through 2020, projects of varying sizes, across all sectors and all around the world, face difficult challenges as they tackle risks, issues and events caused by the COVID-19 pandemic. How can we ensure our project goals and objectives have inbuilt and purposeful resilience to them, which is first and foremost

focused on people and their wellbeing, in the face of potential change and disruption to scarce project resources? We cannot simply increase buffers to cost and time – we need to be smart in our approach, and we need to demonstrate our values in action as we do so.

SOME POINTERS ABOUT RESILIENCE 1. Projects, and the businesses and public sector bodies that are involved in them, exist in an eco-system that is increasingly dynamic and interconnected – which represents threats and opportunities.

2. Understanding the dynamism and velocity of project risks is always an important part of managing risk to achieve objectives. Some risks, if they turn into issues, can ripple through the whole project eco-system quickly. Some risks are smaller and / or slower in velocity, yet they can still be large in potential impact. 3. We need to be ready for change throughout a project’s lifecycle. Sometimes change can be anticipated, and teams managing capital projects typically have strong change management processes. Resilience is about being agile to adapt to change (be it 19

sudden or gradual), but not in an uncontrolled way. The way project parties work together is key to having “controlled agility”. 4. Whilst we cannot plan for or anticipate everything that we would do in the face of a sudden and unanticipated change or disruption, by adopting good resilience principles that are people-focused, help us maintain flexibility and help us be prepared to adapt, we can demonstrate true purpose when a major change or disruption occurs. This demonstration of purpose applies right across the project value chain, and the communities and other stakeholders that the project supports and impacts. An important, foundation-level consideration for project resilience is to ensure you have the right degree of flexibility and adaptability in your project structure and your eco-system, so that you can be nimble and responsive to change when you need to be. This isn’t easy – it requires the right balance between rigour and control (which we need to have on a project) and agility to adapt. For example, what linkages exists between the client(s), contractors and suppliers, and what type of flexibility is built into this structure? Contract management and structure, procurement processes and the management of counterparty risk 20

are some of the parts of the formal project structure, and they should be coupled with how relationships between project parties work on a day-to-day operational level. Are there certain “critical suppliers”, for example, that are hidden away from the head team’s view because they have a contractual relationship deep in the value chain that this team does not have visibility of? Ensuring full and open visibility of value chain / supply chain relationships is important (as well as for resilience, this can benefit various supply chain management matters, such as good sustainability management and ethical supply chain management).

BE PRACTICAL WITH YOUR APPROACH TO RESILIENCE We need to make sure our resilience planning and management activities are practical and that they are suited to the context of the project. General guidelines on resilience and business continuity exist from the ISO, which can be useful for project teams to review. When you understand your current state of resilience, and the risks that exist, you can review whether this current state is appropriate for what you are aiming to achieve on the project. This approach can be stitched into project areas such as the management of health & safety, scope, procurement, quality, time

and cost, using risk-informed options analysis and perhaps appropriate use of risk quantification.

SOME QUESTIONS TO ASK ABOUT YOUR PROJECT’S RESILIENCE 1. Does our project team understand its resilience risks and vulnerabilities (perhaps through a mapping exercise or a Delphi-method survey)? 2. Do we have a good culture on our project that helps us to look ahead, plan, anticipate, adapt, and respond effectively to events and change? 3. D o we focus enough on supporting and empowering people to achieve and to ensure we have a good state of resilience? 4. What are the best tools and techniques for project teams/ functions to use to ensure a good state of resilience? Teams to involve in such a review could include Planning/Scheduling, Supply Chain/Procurement, Commercial/Cost Control, Health, Safety & Environment, Sustainability and (if your project has it) Community Engagement & Relations. 5. How does our project schedule, cost control and general commercial activities take into account different factors relating to project resilience? 6. Can scenario analysis help us to stress test our project’s resilience?

One form of scenario analysis, for example, is a “PreMortem”, in which you use “prospective hindsight” to imagine a very bad project outcome and discuss what could have caused it. 7. Do we review our project performance targets (for all our stakeholders) against our resilience to change and potential disruption (for example, using scenario analysis to stress-test our targets)? 8. Are there skills and expertise that we can leverage from a central support team in our organisation (e.g. a PMO or Portfolio team), or a fellow project that has undertaken a “resilience review”? For examples of tools and techniques that can help you manage resilience.

ANTICIPATE AND BE PREPARED TO RESPOND TO CHANGE Rather than actions to achieve a good state of resilience being stand-alone, or occasional, or something that is the remit of a single team, they are most effective when they are embedded into the regular rhythm of the project activities – which means ensuring that a broad cross-section of the team is regularly involved in them. Sometimes it helps to have a resilience practitioner to facilitate discussions to help to tie things 21

PURPOSEFUL RESILIENCE IS PART OF A GOOD PROJECT CULTURE Having a good state of purposeful resilience in place on your project, and across your value chain, helps to reinforce a strong and positive culture.

(Source: Canva)

together, but it should always be the project team that owns their resilience planning and activities. A Plan-Do-Check-Act (PDCA) model is a good, simple approach to take. PDCA is about planning actions and undertaking them, holding regular tests and lessons learned reviews to check that things are working, and acting to correct elements that need to be fixed or improved. Regular tests of resilience can be quick to undertake, and they can be stitched into regular meetings and project reviews – there’s no need to create separate meetings for them. At all times, you should keep your resilience measures in line with the objectives, context and status of your project, and maintain a state of resilience that is in-built into how the project proceeds. If the project objectives change, some of your activities towards resilience may need to change as well. 22

When you have thought through the resilience measures that need to be in place, and planned and practised how to respond to change and events (including but not only crisis events) that can cause disruption or worse, you can be ready to implement measures that are purposeful towards people, society and the environment if a major event or disruption occurs. When this modus operandi is stitched into your project culture, your values will shine through. Examples of demonstrating purposeful resilience as part of your culture could be: • when a major and/or sudden disruption occurs, quickly (and with the involvement of many parties) adapting your schedule, rostering, scope and commercial approach early, in agreement with stakeholders whilst maintaining the best health and safety; • adapting a schedule to turn a potential problem of delays into an opportunity to “get ahead”

of some activities that would otherwise be performed later; • being ready, and capable, of shifting some project activities from the usual on-site project location to places off site, if feasible and appropriate (which depends on the context of the project); • quickly implementing back-up options to maintain continuity of supply of project resources, if the usual resources become vulnerable or are disrupted; • working purposefully and quickly with project parties in the value chain (e.g. small suppliers) that find themselves in a difficult financial situation due to a sudden external event beyond their control (as an example, COVID-19 has impacted the cash flow for many businesses – payment terms and bank loan guarantees for them can be critical); • assisting your local community with specific resources in times of need (for example, providing resources and expertise if there is an external event such as a health crisis, extreme weather or a severe geological event in the vicinity of the project);

CONCLUSION Purposeful resilience that puts people first is part of a good project culture. Demonstrating a good state of purposeful resilience can help you anticipate and prepare for change, and deal with unexpected and/or sudden situations and events (including crisis events) that put stress on your project. It can also help you to see opportunities to achieve sustainable outcomes. Purposeful resilience helps everyone in the project value chain and the community, society and the environment that your project is designed to serve. It pays to think through what might happen and how resilient you are to change and disruption, and to “have a radar” continually scanning the horizon for things that could be coming your way. Looking ahead, planning, anticipating, adapting, and responding effectively to events and change is good resilience, and good project management. Author: Gareth Byatt is an Independent Risk & Resilience consultant and owner of Risk Insight Consulting.

• maintaining a true focus on peoples’ wellbeing when challenges occur and innovating to ensure this happens. 23

INNOVATIONS AND INSIGHTS

LEVERAGING THE PROPERTY INDUSTRY TO SUPPORT ECONOMIC RECOVERY PROPERTY HAS ALWAYS BEEN CENTRAL TO AUSTRALIA’S PROSPERITY AND IS A MAJOR ECONOMIC DRIVER, SUPPORTING 1.4 MILLION JOBS NATIONALLY AND CONTRIBUTING 13% OF GROSS DOMESTIC PRODUCT.

(Perth Coastline. Source: NS Group)

NS Group has sought to shape and drive the property industry as a pivotal role in our country’s economic recovery. When the COVID-19 global pandemic hit Australian shores, no one could have predicted the duration of the disruption nor the magnitude of its impact on the nation’s wellbeing and economy. In Australia, we were fortunate to ride through the first wave of infection and so far, we have fared better than many other countries from a health management 24

perspective. However, we are not immune to the direct and flow-on effects of closed borders, business shutdowns, social distancing measures and the ongoing uncertainty until an effective vaccine is available. Like most other companies, at NS Group our initial priorities were to respond swiftly to safeguard the health of our staff, their jobs, and business continuity for our clients and their respective projects. Once the transition to a remote workforce quickly became the norm, we then turned to finding a way to help others.

From this challenge that we set ourselves, the following initiatives were borne: 1. Pandemic Series: a threepart digital update sharing information and thoughtprovoking discussion to assist businesses with navigating through the impacts of COVID-19. 2. Emerging Stronger Together: a 60-page publication, developed in partnership with the Property Council of Australia and industry leaders, providing evidencebased guidance on key and innovative economic recovery initiatives for Western Australia.

INITIATIVE 1: PROVIDING SUPPORT THROUGH THE PANDEMIC SERIES

HARNESSING PROJECT MANAGEMENT FOR THE GREATER GOOD NS Group works with government, private, institutional, and not-forprofit clients on diverse projects across Australia. With a community-minded ethos embedded across the company – and given our significant knowledge, skill sets and experience across property and construction – we asked ourselves: how can we share our unique capability and insights to contribute towards recovery efforts?

Released during March and April 2020, NS Group’s Pandemic Series comprised three data-driven online articles. They were designed to help others better understand the coronavirus context and its impacts in order to plan for a way out through to the other side. This series of digital updates was developed by assessing the pandemic situation through a lens of recovery planning, bringing together relevant information and research, and generating discussion to guide action. Part 1 of the series collated the various federal and state government fiscal responses throughout the nation. This served to provide a snapshot of all stimulus packages available and who could benefit. 25

Part 2 delved into a comparison of Australia’s fiscal response with previous global economic and pandemic crises. It revealed potential impacts and expected resilience across specific sectors, including property and construction. Part 3 the final instalment of this series, centred around economic recovery versus nation building initiatives. Whilst the size of the total stimulus response was unprecedented, would it be enough and what lessons could we learn from the past? How could infrastructure projects play a role? The feedback we received was that the Pandemic Series distilled critical data and presented insightful, futurelooking perspectives. It helped other businesses by providing greater clarity and hope in a time that was filled with bleak information overload.

INITIATIVE 2: EMERGING STRONGER TOGETHER FOR A BRIGHTER FUTURE Commencing in April and officially published in early June 2020, NS Group partnered with the Property Council of Australia to develop an industry-led report, Emerging Stronger Together: Leveraging the property industry to support Western Australia’s economic recovery. The 60-page publication was released ahead of the inaugural meeting of the Western Australian Government’s State Recovery 26

Advisory Group tasked with leading recovery planning. Completed pro-bono and within a very tight timeframe, this initiative unlocked the expertise of industry leaders across Australia from property, development, infrastructure, finance, legal, retail and other backgrounds. We asked all participants and contributors to identify broad themes of opportunity – both within the realms of property and beyond – for kick-starting the local economy. We then challenged them to put forward innovative and effective recommendations that would maximise benefits to the state. These discussions and insights were subsequently distilled and prioritised based upon viability, potential uplift to jobs and economic impact. The final recommendations were supported with evidence-based research and real-life case studies. The Emerging Stronger Together report proposed 10 key stimulus measures across three key themes: 1. Driving demand in the property market 2. Diversification of the economy 3. Smarter decision making The recommended initiatives within these overarching themes presented a spectrum of quick wins through to game-changers and opportunities that may come only once in a lifetime.

Emerging Stronger Together summary table of recommended stimulus measures. (Source: NS Group)

Whilst this report was developed for the WA context, there are parallels that can be drawn – or inspire similar undertakings – in every other Australian state and territory. It is our hope that these recommendations will assist with informing and shaping immediate economic recovery planning, as well as longer-term decisions for a stronger, more resilient economy – plus encourage greater collaboration across the public and private sectors. Several themes and initiatives recommended in the Emerging Stronger Together report were reinforced by subsequent forwardlooking industry reports released in late June and early August 2020 respectively: Boorloo Kworp by the Committee for Perth; and A Stronger Tomorrow from Infrastructure WA. Some of these themes and initiatives were also highly aligned with the

State Government’s WA Recovery Plan unveiled in late June 2020. Emerging Stronger Together continues to attract ongoing interest and discussion amongst media, government and private sector alike. At NS Group, we will continue to challenge industry to think differently – we must not squander this chance to think smarter about how we can capitalise on our strengths, create new opportunities, and leave an enduring legacy. Author: Damian Fasher is a Director of NS Group. He is a Certified Practising Project Director (CPPD) with more than 20 years’ experience in the property and construction industry.

PROJECT IN THE SPOTLIGHT

BRISBANE AIRPORT’S NEW PARALLEL RUNWAY

BRISBANE AIRPORT CORPORATION’S NEW PARALLEL RUNWAY WAS A MAJOR PROJECT SOME 15 YEARS AND $1.1 BILLION IN THE MAKING.

New Parallel Runway. (Source: Brisbane Airport Corporation)

This article explores the methodology behind Operational Readiness and Testing (ORAT) – the critical and final phase of the project – and details the COVID-19 challenges that were overcome during ORAT, so as to ensure Brisbane Airport 28

successfully launched its new runway on 12 July 2020, as publicly committed to â&#x20AC;&#x153;pre-COVIDâ&#x20AC;?. This additional capacity positions Brisbane and SE QLD to strongly recover from the economic loss associated with the ongoing global pandemic.

The runway was constructed over a period of eight years (2012-2020). The early years were characterised by extensive early works, dredging, and surcharging to prepare the site for subsequent development. The later years saw the key physical elements of an airfield take form; pavements, drainage, the airfield ground lighting system and landscaping. Construction reached its peak in mid-2019, with 650 workers onsite each day. 29

ORAT STRATEGY DEVELOPMENT Defining the challenge. By late-2018 it was evident that construction was on-track to achieve the 01 May 2020 practical completion milestone and a strategy to ensure the airport was ready to commence parallel runway operations shortly after practical completion was required. Some very basic but challenging queries presented themselves: • What does readiness for parallel runway operations actually mean? How is the scope of ORAT to be defined? • Who does ORAT apply to and what are the roles and responsibilities associated with delivering ORAT scope? Appreciating the complexity. Adding to the complexity of defining ORAT was the critical role of Airservices Australia, who were also required to deliver new infrastructure including: • a new Aviation Rescue Fire Fighting (ARFF) Station; • an expanded Advanced Surface Movement Guidance and Control System (A-SMGCS); and 30

• a new Instrument Landing System (ILS). Separate to the management of their own construction works, the commencement of parallel runway operations represented a major operational change to Airservices air traffic control operations, requiring the introduction of system upgrades, new radio frequencies, training delivery and changes to airspace. Managing complexity. Whilst the establishment of parallel runway operations was the end-state of ORAT, preceding operational changes were also required. These included the introduction of new airspace, the establishment of a third surface movement control zone and the decommissioning of the cross runway (runway 14/32). Each operational change needed to be carefully introduced into operation with compromising aviation safety or regulatory compliance requirements.

Site development history. (Source: Brisbane Airport Corporation)

PLANNING PHASE During the ORAT Planning Phase, the ORAT team mobilised the expertise inherent within Brisbane Airport Corporation (BAC), Airservices and industry to define the scope of ORAT through Operational Change Appreciation workshops. These workshops applied a consistent method to identify impacts to four defined readiness attributes arising from each operational change: • People; • Processes, Procedures and Publications; • Plant, Equipment and Systems; and

• Operational Conditions (the examination of impacts to aviation safety, security and emergency, the environment and the consideration of interaction with others). Any impact to one or more of the readiness attributes led to the creation of a readiness task that was then programmed for execution within one of the five work packages. The ORAT team developed a BAC-Airservices program (the Integrated MultiAgency Program) to enable jointagency progress reporting, risk management and decision-making during execution. 31

Transition to Airside. (Source: Brisbane Airport Corporation)

EXECUTION, MONITORING & CONTROL PHASE Whilst COVID-19 triggered enforced working-from-home arrangements during the critical March-May 2020 period, the ORAT team had already built the necessary relationships, documentation and control mechanisms to effectively manage stakeholders remotely. During this phase, specific weekly and fortnightly coordination meetings were in place to monitor and control the execution of readiness tasks for the stakeholders most impacted by the operational changes, these being: 1. Airside Operations (BAC) 2. Security & Emergency (BAC) 3. Airport Facilities (BAC) 4. Aviation Rescue Fire Fighting (Airservices); and 5. Air Navigation Services (Airservices). 32

The most significant impact of COVID-19 during this phase was the cancellation of the June 2020 events program which was to include a 25,000-person open day and an 8,000-person fun run. These community events, along with staff and industry events, were designed to celebrate and promote the arrival of Brisbaneâ&#x20AC;&#x2122;s New Runway after 15 years of effort. Adjustments to the delivery of training tasks were also necessary due to social distancing considerations, forcing changes to both the scale and nature/ complexity of training and exercises. Separate to ORAT requirements, ongoing business continuity requirements also meant that Airservices and BAC Operations staff had to move to new rostering arrangements to

“This new runway is so much more than asphalt; it is an enabler for recovery and growth across all facets of business, with an estimated 7,800 new jobs created by 2035 and an additional five billion dollars in annual economic benefit to the region” he said. “Now more than ever, it is crucial that we have the infrastructure and mechanisms in place to allow our great city and state to recover from the COVID-19 global pandemic, and Brisbane Airport and this new runway will play a strong part in that.” manage the impact of any potential COVID-19 outbreak. Despite the imposts, both BAC and Airservices completed their readiness requirements ahead of the 12 July 2020 runway opening.

RECOVERY BAC CEO Gert-Jan de Graaff said the completion of the runway was a culmination of eight years of physical construction, many years before that in planning, and foresight from nearly half a century ago for an airport with the growth capacity to meet the aspirations of the city and the state. Mr de Graaff reflected that whilst the milestone marked the end of the project, it represented a new beginning for Brisbane Airport, and a hopeful sign amidst the wide-reaching negative impacts of COVID-19 on Australia’s aviation sector.

Author: Adam Tull is a Certified Practicing Project Manager with over fifteen years’ experience across the Defence, Aviation and Mining sectors. Over the 2018-2020 period Adam supported the $1.1B New Parallel Runway Project as the Project Manager of the Existing Runway 01/19 Rename project (2018) and Operational Readiness & Testing (2019-2020), successfully introducing a program of operational changes that culminated in the establishment of parallel runway operations on 12 July 2020.

PROJECT IN THE SPOTLIGHT

HOW GS1 AUSTRALIA PIVOTED TO SUPPORT PPE MANUFACTURERS WITHIN A WEEK, AN IDEA BECAME A REALITY, AND GS1 AUSTRALIA WAS ABLE TO SUPPORT PPE MANUFACTURERS TO GET MUCH NEEDED ITEMS TO HEALTH CARE WORKERS QUICKLY.

(Lark Distilling Co hand sanitiser. Source: GS1 Australia)

While we knew something was coming, when COVID-19 hit Australia and we went into lockdown in mid-March, so many plans went out the window. At GS1 Australia, we were not only concerned for our employees and our members, we were also concerned for the broader community and determined to find a way to assist. THE IDEA A GS1 staff member had seen on the news that the NSW government had issued a call-to-action for manufacturers to re-tool for the manufacture of personal protective equipment (PPE) to support the national effort. PPE includes masks, gloves, sanitiser, gowns and all manner of equipment that keeps our healthcare professionals safe when treating COVID-19 patients. Our colleague suggested, having worked with the healthcare sector, that many of these companies would not be familiar with the requirements of the sector. Regular procurement needs include the provision of a barcode and accurate master data. We resolved to smooth the pathway for these companies to

ensure their products didn’t clog up the supply chain and were able to get to the places they were needed – the medical front line.

HOW COULD WE HELP? After a brief meeting of the executive team it was agreed to provide free barcode numbers to any company who didn’t already have them for PPE products. However, having a barcode was only part of the solution. Many state and territory health jurisdictions and private suppliers have built their systems around the provision of accurate data through the GS1 Australia National Product Catalogue (NPC). Communication of product recalls through Recall Health (and with the rush to manufacture, recalls were a real possibility) and Barcode Check reports are important to confirm that the barcodes scan and that the product number is unique. As part of the solution we also needed to train and support these companies, many of whom had never used barcodes before, to ensure they did it right the first time, as there was no time to waste. It was approved that new membership and access to the relevant services for suppliers of PPE products would be made available free of charge, at least until the end of June 2021. 35

MAKING IT HAPPEN It was critical we put everything in place to support these companies as quickly as possible. Many had already begun to re-tool, while others were considering their own positions. First, we had to make sure we could fully support the initiative. This involved updating our online membership subscription system to ensure it did not charge new members who were joining for the PPE program. Then ensure the customer support team were ready to contact those companies, understand their requirements and point them in the right direction. Our Customer Relationship Management (CRM) system had to be updated with a new customer interest group and accounting systems were adjusted so a fee was not charged when they used services offered by GS1.

COMMUNICATION WAS KEY A web page was built in a day to outline details of the program and display a list of all the PPE suppliers that could then be shared with healthcare providers who were desperately looking for scarce supplies. Letters were sent to health and industry ministers in NSW, federally and in other states, to alert them of the program and allow them to direct manufacturers to GS1 who were reaching out 36

to government for advice and guidance – keen to assist but not sure how to go about it. A media release was shared with mainstream and trade media, with over a dozen publications circulating it. Our social media channels also shared the news. We did not know who would be needing us, but we wanted to get the message out there quickly, because the need for equipment was urgent. An email went to each of our 22,000 member companies. We didn’t segment by sector, as we often do, because companies from all sectors were throwing their resources into the cause.

PROMISE DELIVERED Within a few weeks, over 100 companies had joined GS1 Australia and ordered their barcodes, which would go out on products sent to the healthcare frontline. Lark Distilling Co. was one such company. They already had barcodes for their world-famous Lark whisky, made in Tasmania, and committed to making sure the Tasmanian healthcare system had enough hand sanitiser by re-tooling their operation for production. The GS1 PPE program allowed them to put the necessary programs in place to fulfil that commitment. “I am forever grateful to our suppliers and organisations like

Personal protective equipment. (Source: iStock)

GS1 for their support, and I am in awe of what we have been able to achieve in such a short time, by working as one in the face of a common threat,â&#x20AC;? said Dan Knight, Head of Hospitality at Lark Distilling Co.

Author: Marcel Sieira is the Chief Customer Officer of GS1 Australia, a neutral, not-for-profit organisation that develops and maintains the most widely used global standards for efficient business communication.

PROJECT IN THE SPOTLIGHT

NSW HEALTH INFRASTRUCTURE PROGRAM

BEN MACKEY, GENERAL MANAGER AT SJA SHARES THEIR APPROACH AND INSIGHTS INTO A $100 MILLION PROGRAM OF WORKS FOR NSW HEALTH.

Tomaree Community Hospital. (Source: SJA)

SJA is engaged by NSW Health Infrastructure as the Program Project and Cost Manager for a $100m program of works, bringing together primary and community health across nine Local Health Districts (LHDs) in NSW. The HealthOne Strategy Program arose from the NSW Government’s 2015 commitment of $100 million of capital funding under the Primary and Integrated Care Strategy. The sites in the program were selected 38

based on areas experiencing an ageing population and an increased demand for community health services. The project management function for planning and delivery of projects is held by the Local Health Districts with a budget under $10 million. SJA’s role, working with NSW Health Infrastructure, is to provide a program-level management framework and project assurance, to enable LHDs to achieve project outcomes. This role has required the ‘right sizing’ of project systems and controls, and related assurance activities, to avoid undue management burden

on the Local Health Districts and their capital consultants.

PROGRAM MANAGEMENT GUIDELINES At the outset of the program, guidelines were prepared to describe project management principles and processes to support scope definition, project planning as well as monitoring and control techniques for individual projects. This included narrative around project management process and templates to assist individual LHDs in the planning and delivery of their HealthOne projects.

While not intended to be rigid requiring strict compliance, it was designed to guide Local Health Districts on the expectations that NSW Health Infrastructure has for project control and assurance, to enable consistency of management and reporting across the program. The ongoing program assurance role has not been one of patrolling Local Health District compliance with the guidelines, but of reviewing LHD process and outputs and providing a feedback and an improvement loop to the LHD project teams. The guidelines presented approaches to WHS management and compliance but did not foresee the requirements of social distancing arising from COVID-19. The program team has worked with LHDs in addressing these new WHS requirements with works contractors.

PROJECT BRIEF PROCESS While the $100 million HealthOne Strategy Program is funded via a program-wide final business case, governance required the LHDs to develop project brief documentation typically with respect to scoping and cost confidence consistent of a resolved schematic design. This compelled clinical service definition, functional briefing, concept, and schematic design supported by necessary interrogation of site conditions, planning approval pathway, as 39

well as resolution of IT systems to support the model of care. The detailed scoping addressed capital and recurrent costs, including managing multiple projects within a given Local Health District within the component budget envelope for that LHD. The program enabled the Local Health Districts to control their briefing and capital works planning, in addition to their clinical service planning, to the submission of a project brief. The use of standardised documentation from the templates enabled a degree of consistency in presentation and afforded the program team the opportunity to assist and support budget-compliant solutions, which satisfied the service requirements.

Evans Head HealthOne. (Source: SJA)

GOVERNANCE AND REPORTING The program governance was similar to typical NSW Health Infrastructure projects however the Local Health District leadership of projects resulted in their chairing and administration of project governance and reporting processes below the Executive Steering Committee. While a series of reporting templates, including cost planning and management templates, have been provided, the LHDs did not always consistently apply these templates, requiring review of outputs to confirm their general intent with the objectives of the guidelines. Monthly meeting attendance permitted the program team to

understand progress at a project level and help where issues confronted the projects. Program governance has broadened WHS considerations to address COVID-19 requirements and now specifically addresses this in the review of works contractors WHS plans and processes.

REQUIREMENTS FOR SUCCESS The key metrics to the success of the program assurance role working with the Local Health Districts, has been the alignment of objectives, clarity of governance, articulation of project brief requirements, and professional maturity of all parties to the program. While the value of these projects may exceed the capital works accreditation of LHDs, the LHD personnel running these projects are typically experienced and capable project practitioners. The challenge of managing this program is to: • Support these LHD practitioners with a suitable project management framework. • Provide consistent programlevel assurance and assistance when requested. • Draw on the broader NSW Health Infrastructure capabilities for the benefit of the individual projects. • Remain flexible to changes in project environment including impacts such as COVID-19.

Program and project success require acknowledgement and respect for the LHD project practitioners’ capability and experience, with support in a manner that is not perceived as interventionist. It requires genuine risk assessed involvement and not involvement for the sake of arbitrary compliance with the project management framework, processes, and templates. As with all project management, the management of human dynamics is a key requirement for project success and the conduct of the program team in its interface with the project teams, in this instance the nine LHD project teams, is a crucial requirement to realise the benefits of the capital investment via an assured program model. Author: Ben Mackey is a General Manager at SJA. He has over 23 years’ experience in the construction and engineering industries with extensive experience across a range of property sectors including public and private sector projects. His technical skills are complemented with a strong ethic towards collaborative project environments and optimising project outcomes.

RESEARCH

CONSTRUCTION, COMPLEXITY, COLLABORATION AND COVID-19 THIS ARTICLE DRAWS ON FINDINGS OF A RECENT ROUNDTABLE REPORT BY THE SCHOOL OF PROJECT MANAGEMENT AT THE UNIVERSITY OF SYDNEY ON INCREASING COMPLEXITY AND THE NEED FOR COLLABORATION IN CONTRACTING. (Source: Canva)

Construction is known to be one of the most important sectors contributing to social and economic growth, so it is unsurprising that the Australian Government has identified construction and infrastructure projects as vehicles to drive recovery from the impact of COVID-19. This article reports on feedback from interviewees regarding challenges of collaboration and contracting in recovery, in the face of COVID-19. 42

In early 2020, researchers at the University of Sydney, working with a visiting colleague from Norway, Professor Ole Jonny Klakegg, interviewed professional project owners and project managers. The participants were from a selection of public and private sector organisations, in the construction industry across New South Wales, Victoria and Western Australia. This resulted in a report on Designing Contractual Relationships for the Future, which is available from the School of Project Management at the University of Sydney. Learning points for clients to set up successful projects through a

collaborative and relationship-based approach to contracting, highlighted by the research, included: • Deliver value to key stakeholders including society and users. • Establish effective governance with roles and responsibilities defined and an effective collaborative delivery model. • The owner organisation must prepare to fill their own role in the project. • Ensure the project is attractive in the market to attract competition, competence, and capacity from the right suppliers. • Invest in preparation for collaboration – training and mature mindset. • Identify and develop a culture for successful collaboration from the start. • Engage the right people with the right competences, on the right tasks at the right time. • Identify the right partner. The research investigated the effect of complexity on the preparations for entering a collaborative contract. A distinct pattern was found where the very complex projects need to establish a flexible framework for collaboration, whereas the less complex projects need to gather and structure existing information as basis for collaboration. The very complex projects require negotiations on the big issues and use of less precise definitions to

allow for emergence and change. A high degree of integration between the parties is needed. Less complex projects need negotiations on more practical and operational issues, using precise definitions to allocate risks and rewards upfront. Six of the interviewees represented public infrastructure projects of different types, sizes, and complexities. All six projects were relatively complex. In June and July 2020, we revisited four of these projects to check if the COVID-19 situation had made serious changes to the situation that might influence the conclusions in the previous report. Interviews confirmed that in established collaborations, ongoing work has been well managed through the COVID-19 period, from March to July 2020. However, we asked about the consequences of COVID-19 and the future:

IMPACT ON COMPLEXITY The first question was concerning the COVID-19 influence on the complexity. The interviewees confirmed that there is no doubt the COVID-19 situation increases complexity, directly and indirectly. Consequences seem different depending on the situation of the owner. The factors that influence daily work are particularly travel restrictions and hygiene measures. The consequence for future projects 43

may be more severe in terms of future uncertainties and financial situation. Delay and re-planning may be expected. Especially at the planning stage, this represents increased complexity. Two illustrative quotes from one of our follow-up interviews: “Yes COVID-19 adds a degree of complexity however the overall impact has been minimal.” And “Yes – managing the hygiene needs for COVID has been difficult but well managed. Our major projects are continuing with new protocols on social distancing, hand washing, staggered meal breaks etc. This has worked and has been resolved in a collaborative manner with our contractors. On the negative side we have paused all capital works projects but this is mainly due to the weakening of the financial situation caused by COVID.”

(Source: University of Sydney)

IMPACT ON COLLABORATION IN ONGOING PROJECTS The second question was on changes in collaboration between contract partners in ongoing projects. The answers indicated that COVID-19 seems not to qualify as a force majeure event under ongoing contracts. Neither does the situation seem to pose very serious consequences in established collaboration. The parties seem to be handling the COVID-19 situation well in general. Practical changes include shifting from physical to virtual meetings and reviews, increased hygiene measures on site (sanitising; hand washing), prevention of transmission (personal distancing; staggered meal breaks; temperature testing onsite; traceability of personnel and their contacts; additional site facilities; additional training), administrative measures (extra record keeping, new protocols),

external relationships (additional fencing, social distancing, stakeholder information and community education). As one of our interviewees said: “There have been no formal policy changes other than those required by the Government with respect to personal distancing etc. I’d expect that policy changes would be dependent on the time we are affected by COVID. At this stage contractual arrangements are being managed on a case by case basis.”

IMPACT ON FUTURE CONTRACT STRATEGIES The third question asked about the need for changes in future contract strategies, as identified in light of the COVID-19 situation. The answers indicate that at the time of interview, no new official policies had been announced. Some project owners already see the need for increasingly taking into consideration future COVID-like situations. The owner may have to retain the more extreme and unpredictable risks. Project owners need to negotiate the potential consequences, in particular those that are imposed by external factors such as government mandated closures, labour supply, and travel restrictions. According to one of the interviewees: “Future contracts will now take into account pandemic related risks and mitigation outcomes during contract negotiation. The pricing

of such options will also need to be developed and negotiated. For smaller value projects with a lower risk of community exposure, the changes to such pricing will be minimal whereas changes due to external factors such as government mandated closures, labour supply, restriction of travel etc. will need to be carefully negotiated, keeping in mind learnings from the current pandemic, which offers us a chance to look backwards.”

CONCLUDING REMARKS The impact of COVID-19 on current contracts seems less dramatic than feared. Milestones are still being met, and cost consequences seem to be moderate. Given current contract strategies the extent of claims to come from the first COVID-19 period may increase the perceived need for changes in future contracts. These are yet to be determined, but the need to learn from this current COVID-19 situation is evident. The future may hold significant changes due to increasing external complexity, especially on the client (project owner side). Authors: Julien Pollack, Associate Professor, School of Project Management, the University of Sydney, Lynn Crawford, Professor, School of Project Management, the University of Sydney and Ole Jonny Klakegg, Professor, NTNU, Norway. 45

RESEARCH

ENSURING PROJECTS ARE EFFECTIVE AND EFFICIENT

RESEARCHERS FROM THE SCHOOL OF BUSINESS AND LAW AT EDITH COWAN UNIVERSITY LOOK AT WHY INVESTING IN THE RIGHT PROJECTS AND TRACKING THE BENEFITS THAT EACH PROJECT REALISES, IS AN IMPORTANT PART OF HOW PROJECTS CAN CONTRIBUTE POSITIVELY TO THE HEALTH OF THE AUSTRALIAN ECONOMY. THE RESEARCH PROBLEM Over the last 18 months and with the support of AIPM we’ve been exploring the peak performance of projects. We wanted to know what contribution projects could make to the health of the Australian economy. The reason this is important is because the economy is changing. We’re already seeing a shift in Australia from an industrial to a “post-industrial” configuration, and this means many businesses are now using project management 46

(Souce: Canva)

processes to support innovation without running formal projects. While we think this will have a positive impact on a firm’s performance, the reality is that this is not really tracked, and we can’t say with certainty how this impacts the economy. All we know is projects should create some sort of value.

OUR APPROACH In some ways it might seem like a simple research task; projects make things, and these things help

the economy to grow, and that’s where the value comes from. But when we investigated it, things weren’t that simple. It is correct that benefits stem from the use of the products created by the project, which in turn creates value. But proving it is a difficult task. There’s no national directory of projects, and project managers aren’t the people who define what benefits the project will bring. That’s the job of the sponsor. Nor are project managers around after the project has ended to see

if what was promised was what was realised. That’s the job of the client organisation.

THE VALUE OF VALUE To set our research up properly we needed to define what we meant by the word “value”? Here we’re treading on old ground. Way back in 2008, the PMI funded some research which partially answered the same question but also concluded that the question was far from simple. Since then academics have researched value 47

beyond the financial angle and have looked at the environmental and social concepts. For more than a decade there’s been little consistency and the result is a swathe of articles that look at topics as diverse as earned value management, value for money, client value, the value chain, cultural values, the value of diversity and trust, competing values, the value at risk and even the value of values. In 2019 researchers writing in one of the best academic journals tried again. They produced 10 papers that still left gaps in our understanding. What this meant for us was that we had to agree a definition that we’d use. We also accepted that other academics would disagree with it. So we settled on value as being the worth of the project or the deliverables that arise from the things the project creates. Furthermore, when we’re looking at what projects contribute to the economy, we need to be aware that the building blocks of a research question are founded on the multiple meanings of value. This can cause problems when we try and link it to economic, environmental, and social perspectives. This problem is not uncommon in research. The way we deal with it is by explaining what we mean when we use terms and when we make arguments. 48

THE ECONOMIC CONTEXT In early 2020, the context of our research shifted when the COVID-19 pandemic impacted Australia. We saw that it accelerated an existing decline in the performance of gross and net national product. It meant that the policy decisions of national and state governments to inject large capital sums of money into the economy would put projects, project management, benefits and value under scrutiny. It presents Australia with a new challenge. Can significant government investment in capital projects help to rebuild the national economy? To what extent will the management of projects come under scrutiny?

DOING THINGS RIGHT It is not new to suggest that organisations running projects need to address two issues - efficiency and effectiveness. Doing a project right is important but doing the right project is arguably vital. At the moment, effective and efficient projects with clearly defined benefits and mechanisms for tracking these against the original investment are crucial to assisting the national economic recovery. But recovery isn’t just about returning to what existed before. Australia is witnessing a reshaping of the economy. We’re seeing businesses close, merge, morph and new ones being born. Good projects make these things

happen. As they do, an economic supply side stimulus is also being created. That’s also how projects support the economy. Efficiency Let’s consider efficiency first. In one strand of our research we looked at efficiency using a modelling technique called data envelopment analysis. We ran a national survey for project managers to capture the data we needed. This gave us a lot of information about different projects. Using our modelling technique, we saw that some projects were less efficient than others. Mining projects seemed to be the most efficient, whereas construction projects were the least efficient. In fairness we also found examples of efficient and less efficient projects in every sector. Mining projects seemed to be the most efficient, whereas construction projects were the least efficient. In fairness we also found examples of efficient and less efficient projects in every sector. Together with other research we think the reasons for this are already known; a lack of skilled labour, poor cash flows, smaller profit margins, and high indirect costs. But what should organisations look at when deciding how to assess efficiency?

Our research suggests that looking at whether the project schedule was achieved is fundamental, but so too is technical performance, client satisfaction, and the amount of rework. Some of these issues may already be familiar to construction project managers. Finding out why mining projects manage these in a better way requires further study. This is not to say that all mining projects were efficient. Far from it. It’s just that the projects we looked at placed the efficiency of mining projects higher than the efficiency of construction projects. What is useful is that organisations can use the same modelling techniques as we used to see if they can work out how efficient their projects are. We also developed some tools that can complete the data set if any values are missing. We believe this is important because an efficient project could save time and money. This goes some way to maximising the investment that a client makes when funding the project. Effectiveness Having considered efficiency, we know that this is only part of the issue. It brings us neatly on to discussing effectiveness. That’s where the business case and some notions of “value” come in. The point of the business case is that it should guide the client towards choosing the right project at the start. One that best delivers the return on the investment they are making. 49

(Source: Canva)

What we found was interesting. While most of the projects we looked at had a business case, only half reported that they identified tangible benefits that could be measured. What we found was interesting. While most of the projects we looked at had a business case, only half reported that they identified tangible benefits that could be measured. It is well known that benefits stem from the use of the products created by the project which in turn creates value. If we can’t measure them, we can’t track them. Furthermore benefits aren’t random. They should be linked to the strategic priorities of the organisation. Benefits identification and management have long been known about in project management but ironically do not feature prominently in all approaches. For example, while PRINCE2 practitioners embed them in their approach, other practitioners following a PMBOK Guide set of processes only enter the project 50

once it has been chartered. This means it has already been given the green light by the organisation. So not all project management approaches enter the project at the same stage. Perhaps a broader question is what role is played by the organisation? After all, they own and commission the project. Perhaps we should be asking them what their benefits identification and management process looks like? Organisations such as AIPM are already ahead of this. They recognise that for the organisation, maturity in this area begins with having a good benefits management framework that is applied right across the portfolio. This sets the scene for projects within the organisation to be selected and managed in a way that delivers the strategic objectives. As these objectives need to be measurable, so too must the benefits for individual projects. It’s a cultural thing. The organisation needs to map planned benefits for all projects against its own strategic objectives. This map is not a benefits register. The benefits register only records

information about each benefit which includes its category, and how that benefit contributes to the organisationâ&#x20AC;&#x2122;s strategic objectives. Mature organisations will therefore have a framework that describes the structure of the benefits register without being a benefits register itself. A mature framework is also more than just a toolbox. Organisations that understand this are well placed to maximise good project management. They can also be fairly brutal. If projects are not contributing sufficiently to the strategic benefits framework then they should be terminated. What this does is contextualise the role of the organisation at the portfolio level, and the role of the project manager at the project level. They are not the same thing. Collectively however they work together to deliver value. COVID-19 The final fundamental issue is whether any of this needs to change given the context of a post COVID-19 economy? Arguably yes. The operating environment and therefore the strategic context of organisations is changing. Maybe clients should now be focusing on the specific strategic objectives that underpin economic outcomes such as a financial return on investment or changes in headcount. These are both tangible and measurable. But while this may be beyond the daily remit of project managers, it remains part of the consultancy provided by

project management professionals within organisations. Our research suggests that the wider project management profession should be encouraging client organisations to look at the maturity of their own project management techniques. Organisations should be looking at the financial and economic case for any future projects so that they only spend money on the most suitable projects to get the investment returns and value they need to maintain corporate health. Does this apply to government projects as well? Certainly. Doing a government project right is important but doing the right project based on an economic recovery plan is arguably vital. The conclusion we draw from all this is that investing in the right projects, and running projects in an efficient way, and particularly tracking the benefits that each project realises, is an important part of how projects can contribute positively to the health of the Australian economy. Authors: Alistair Campbell PhD, Denise Gengatharen PhD MAIPM, Reza Kiani Mavi PhD (Joint Chief Investigator), Richard Hughes MAIPM CPPM (Joint Chief Investigator) and Ross Yates PhD MAIPM CPPD from the School of Business and Law, Edith Cowan University.

FELLOWS FORUM

REBUILDING INFRASTRUCTURE THROUGH THE CIRCULAR ECONOMY FELLOWS HAVE GIVEN EXCEPTIONAL CONTRIBUTION TO THE PROJECT MANAGEMENT PROFESSION. HEAR FROM ONE HERE EACH QUARTER.

(Source: Gerard Coutts & Associates)

The development of shipping containers as a form of compact housing in multi-unit and single dwelling modules is a concept which is currently being investigated for application in Australia. The Circular Economy strategy demands the minimisation of waste, repurposing of existing assets and the avoidance of landfill and one such option as we look to the other side of the post pandemic crisis, is salvaging and repurposing shipping containers for use as offices, amenities and housing.

HAVE YOU EVER THOUGHT OF WORKING OR LIVING IN A SHIPPING CONTAINER? I’m sure you’ll be thinking ‘steel’, ‘rigid and strong’; but I’m sure the words ‘embodied energy’ won’t spring to mind. Embodied energy means in a broader definition “….. the energy consumed by all of the processes associated with the production of a building, from the mining and processing of natural resources to manufacturing, transport and product delivery”.1 In other words, and in the case of a shipping container, the term embodied energy means: the process of creating a shipping container requires a significant amount of energy to manufacture the steel shell. Not only does the repurposing of containers build support for the Circular Economy by recycling an asset with high embodied energy, it also provides an employment value via the minimisation in disruption to property owners due to off-site fabrication. It is a type of building practice, which is commonplace in Europe, whereby containers as dwelling modules are built off-site, mobilised and efficiently lifted into place. The perception I’m sure we all have of a shipping container in its latter life, is a ‘rusted’, ‘dented’ hulk sitting on the docks or discarded in a paddock. This is often the destination for a container past its 1

Principal Author: Geoff Milne, Australian Government, 2013

use by date as a viable asset on the open seas, either rusting in an industrial estate or dumped into land fill. However, a shipping container has considerable viable life past its estimated 20-year service on the open seas. Research indicates a further design life of 50-years for a well maintained, repurposed shipping container build.

LOOKING TO THE OTHER SIDE OF THIS POST PANDEMIC CRISIS The recent bush fire recovery program is an excellent opportunity for this type of building product to be introduced as a viable, cost effective and time efficient solution within the Australian landscape. The world is now facing a new global challenge which is having wide reaching implications on our lives and the economy. The repurposing of shipping containers destined for the scrap heap, into comfortable, energy efficient workspaces and respectful accommodation solutions, is just one example which needs to be considered as a worthy response to rebuild confidence through the Circular Economy on the other side of this post pandemic crisis. This was particularly demonstrated during the days and weeks post the 2011 earthquake in Christchurch, New Zealand. The government quickly deployed 53

repurposed shipping containers as an immediate response for the re-creation of a shopping precinct within the centre of the city. The containers were brightly coloured, vibrant and workable spaces. They fulfilled a critical role in the re-engagement of people whilst also providing a muchneeded retail, creative arts and community hub. Their use became a symbol of urban renewal and recovery and even more importantly they brought enjoyment back into the centre of the city.

THE ULTIMATE GIANT-SIZED LEGO BLOCK Fixed dimensions, rigid, robust, few moving parts, water-tight and with a near perfect industrial quaintness, its egalitarian and industrial look is in fact the furthest thing from reality. The process of container repurposing needs to satisfy building standard requirements to ensure they are weathertight, comfortable, and accessible whilst also meeting the requirements of the Building Code in terms of classification. But we shouldn’t only think, although importantly, of just the requirements to achieve a building permit. We should also look at the amenity of a container. Of course, colour is not the only method used to soften 54

(Source: Gerard Coutts & Associates)

the industrial quaintness of the giant Lego building block. Repurposed containers can be delivered finished with wall frames and an internal lining. Pod roof structures are creatively packaged inside the container as a prefabricated kit to assemble after the container is positioned onto site. Containers can be painted brightly, as per our Christchurch cousins, or alternatively they can be finished in a ‘drop down menu’ of cladding types. Either

with timber sourced from a sustainable growth plantation, or with panels of recycled timber sleepers. Even solid or patterned Corten steel panels can be carefully designed to be installed by invisible clips or screwed into place with copper spacing bars. As we look towards the future and how we can build ourselves out of the COVID-19 period, thinking outside the box becomes all the more important â&#x20AC;&#x201C; or should I say living inside the box.

Author: Gerard Coutts is a Certified Practicing Project Director and a Fellow of AIPM. Gerard has a long history in the delivery of sustainable built outcomes and is especially interested in the Circular Economy and the minimisation of waste and the process of recycling. His organisation is heavily involved in the repurposing of shipping containers for both industrial, recreation and residential uses.

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Have a project that you would like our project community to know about? Do you have a project insight you believe needs to be shared? Our next theme is SHOWCASING SUCCESS and we would love to hear your article ideas. Email communications@aipm.com.au with the subject line ‘Paradigm Shift article contribution’ and tell us what you have in mind before Friday, 2 October. Our next issue will be out in December 2020.

Paradigm Shift | Project Management Magazine Spring 2020

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