London 2012 Learning Legacy Lessons learned from the construction programme

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2 London 2012 Learning Legacy Lessons learned from the construction programme Andrew Davies Innovation and Entrepreneurship Group Imperial College Business School Imperial College London

3 Agenda 1. Background 2. The research findings: drivers of success framework 3. Conclusions: transferring lessons and measuring success

4 Imperial s research on megaprojects Researchers: Ian Mackenzie and Andrew Davies The Olympics study is part of our research on megaprojects large, complex and uncertain infrastructure projects of over $1bn (Flyvbjerg et al, Megaprojects and Risk, 2003) Megaprojects are often late and over budget e.g. Channel Tunnel, Swanwick Air Traffic Control system and Wembley stadium We conduct in-depth case studies to understand how learning and innovation can improve the performance of megaprojects Heathrow Terminal 5 London Olympics Crossrail

5 Our research on the London Olympics Our research aimed to understand the drivers of success Programme level ODA acted as the client CLM as the delivery partner Project level Olympic Stadium Velodrome Temporary structures International Broadcast Centre/Media Press Centre Aquatics Centre Athletes Village

6 Interview list

7 Challenges The Games construction programme faced three main challenges: Time-critical Scale and complexity 70 separate projects Range of stakeholders The success of the construction programme could be affected by: 1. Designers and contractors failing to do what they say they do 2. Misalignment between client/stakeholders and design, design and construction, and parts of construction 3. Scope changes due to revisions in requirements, construction problems and external factors

8 Drivers of success framework Programme Outcomes On time On budget Exemplary safety Other targets (e.g. sustainability) Five key management processes Headline Drivers of Success Explicit objectives and principles Programme management philosophy

9 Five key management processes The ODA and CLM set up and applied five process 1. Up-front planning process Baseline document for scope, specifications and budget 2. Project and programme monitoring process Monthly project progress reports and audits - assurance 3. Problem resolution process CLM work with contractor to find best solution (e.g. Velodrome roof structure) 4. Change management process Early identification of scope changes 5. Integration management process Identify how changes in one project impacted on another - interfaces Applied collectively, these processes helped to keep individual projects and the overall programme on track to success

10 Explicit objectives and principles The ODA established clear objectives Time, cost and quality prime objectives Other targets and measures of success were important ODA published a strategy for six priority themes: Health, Safety and Security Design and Accessibility Equality and Inclusion Legacy Employment and Skills Sustainability These objectives cascaded downwards to the CLM, main contractors and subcontractors Health and safety critical to the successful delivery and productivity

11 Programme management philosophy The ODA and CLM used loose-tight management Programme level tightly-coupled management Consistent approach across the programme Reinforced five key processes, principles and targets and behaviours Project level loosely-coupled management Tailored approaches to cope with the challenges of delivering each project (e.g. different procurement and contractual approaches) Flexibility allowed contractors to find their own ways to implement principles and achieve targets (e.g. safety) Take advantage of the experience of each individual contractor ODA exhibited flexibility when project circumstances changed

12 Drivers of success framework Programme Outcomes On time On budget Exemplary safety Other targets (e.g. sustainability) Five key management processes Headline Drivers of Success Explicit objectives and principles Programme management philosophy Well resourced delivery partner Enabling Factors Supportive contractual arrangements Supportive culture

13 Enabling factors The Delivery Partner model Selected joint venture to bring in breadth of capability programme, project and construction expertise CLM and ODA worked closely as very intelligent client Delivery Partner (CLM) clean sheet of paper 600 staff (at peak) Manage downwards towards contractors Strong client (ODA) 200 staff Manage upwards to stakeholders Supportive contractual arrangements variations on NEC 3 ODA and CLM ODA and contractors Supportive organisational culture Open and collaborative behaviours workshops, ODA/CLM weekly management meetings Expose problems and incentivised to find solutions

14 Drivers of success framework Programme Outcomes On time On budget Exemplary safety Other targets (e.g. sustainability) Five key management processes Headline Drivers of Success Explicit objectives and principles Programme management philosophy Well resourced delivery partner Enabling Factors Supportive contractual arrangements Supportive culture Supporting Factors Olympics effect Heath & Safety Personal & org. dev. Familiar partners Full funding Market downturn

15 Conclusions Success depends on rigorous application of all processes, objectives, philosophy and enabling/supporting factors Transferring lessons learnt to other public sector megaprojects 1. Invest in project and programme management processes 2. Create an intelligent and broad-capability client delivery partner with multiple capabilities 3. Secure full funding for realistic programme 4. Invest in human resources and organisational development build skills, relationships and supportive culture Success of the programme must be measured over time Short-term successful construction programme outcomes Medium-term preparation, testing and staging the Games Long-term lasting legacy Each depends on successful transitions or handovers between different organisations very challenging; should not be underestimated

16 Thank you The official Emblem of the London Organising Committee of the Olympic Games and Paralympic text goes Games here Ltd is protected by copyright. London Organising Committee of the Olympic Games and Paralympic Games Ltd All rights reserved.