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Pcubed helps the London 2012 Olympic Delivery Authority

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<strong>Pcubed</strong> <strong>helps</strong> <strong>the</strong> <strong>London</strong> <strong>2012</strong><br />

<strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong><br />

Internal Communication, November 2011


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

Contents<br />

<strong>Pcubed</strong> <strong>helps</strong> <strong>the</strong> <strong>London</strong> <strong>2012</strong> <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> .... 1<br />

Overview .................................................................................. 3<br />

Interview with David Higgins: The key to ODA’s Success ....... 4<br />

What has made it difficult to deliver ........................................ 4<br />

Fundamentals for Success ...................................................... 4<br />

<strong>Pcubed</strong>’s <strong>London</strong> <strong>2012</strong> Engagements ..................................... 6<br />

ODA Programme Management Office and Assurance Office 6<br />

ODA Construction Logistics Project ........................................ 6<br />

ODA IT .................................................................................... 7<br />

Support for ODA Director of Design and Regeneration .......... 7<br />

<strong>Pcubed</strong> work with CLM <strong>Delivery</strong> Partner ................................ 7<br />

<strong>Pcubed</strong> work with LOCOG: ..................................................... 8<br />

<strong>Pcubed</strong> work with <strong>Olympic</strong> Park Legacy Company (OPLC): .. 8<br />

Confidential 2


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

Overview<br />

The <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> (ODA) is on track to deliver <strong>the</strong> infrastructure for <strong>the</strong><br />

<strong>2012</strong> <strong>London</strong> <strong>Olympic</strong>s on time and on budget. This is a tremendous achievement as<br />

<strong>the</strong> ODA has, from a standing start, managed to deliver one of <strong>the</strong> largest and most<br />

complex infrastructure programmes in a tough political and economic environment.<br />

<strong>Pcubed</strong> have had <strong>the</strong> opportunity to work with <strong>the</strong> ODA over <strong>the</strong> last five years to help<br />

<strong>the</strong>m achieve this impressive feat. Our great delivery work for ODA meant that David<br />

Higgins, <strong>the</strong> CEO of <strong>the</strong> ODA, took <strong>the</strong> time to discuss with us his views on <strong>the</strong><br />

fundamentals that have driven this impressive performance.<br />

The purpose of this note is to share with everyone David’s views on <strong>the</strong> essentials of<br />

success and a summary of <strong>the</strong> work we have done for <strong>the</strong> ODA. As you read David’s<br />

comments you will see that he ascribes <strong>the</strong> ODAs success to implementing <strong>the</strong><br />

fundamental programme management principles that <strong>Pcubed</strong> try to drive on most of<br />

our client engagements. The ODA, with our help, has managed to implement more<br />

effectively than most and it is great to see what can be achieved when PM disciplines<br />

are intelligently applied!<br />

My thanks to <strong>the</strong> tremendous delivery team we have had working on ODA over <strong>the</strong><br />

last three years, as you can imagine every consultancy in <strong>the</strong> UK wants to be involved<br />

with <strong>the</strong> <strong>Olympic</strong>s and <strong>the</strong>re has been intense focus on only using consultants on<br />

short term engagements. Our five year track record exists because of <strong>the</strong><br />

tremendous hard work of Ky Nichol, Peter Henderson, Mark Sorrell, Nina Arbuckle,<br />

Barbara McLeod, Nicholas Smith, Tim Brett, Jonathan Wynands and Nickolle<br />

Paschal.<br />

Regards,<br />

Martin Hodgson<br />

Global CEO<br />

Confidential 3


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

Interview with David Higgins: The key to ODA’s<br />

Success<br />

David Higgins is <strong>the</strong> CEO of <strong>the</strong> <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> having previously been<br />

CEO of English Partnerships and Group Chief Executive of <strong>the</strong> Lend Lease Group.<br />

Our great delivery work for ODA meant that David took <strong>the</strong> time to explain to us his<br />

views on <strong>the</strong> fundamentals that have driven this impressive performance.<br />

His summary of <strong>the</strong> key to ODA’s success:<br />

What has made it difficult to deliver<br />

• Over 30 stakeholder groups that all have <strong>the</strong> power to stop progress<br />

• No politician or anyone else in <strong>the</strong> governance chain wants to force issues and<br />

make tough decisions. So ODA has to force <strong>the</strong> pace on decision making and<br />

confronting issues.<br />

Fundamentals for Success<br />

• Clarity on scope. The brief (yellow book) covers scope, responsibilities and<br />

assumptions. The brief is clear and written at a level to communicate to<br />

stakeholders and was signed-off by <strong>the</strong>m. Getting and keeping clarity on <strong>the</strong><br />

scope as it changes has been key. David’s words were create a “Firewall<br />

around scope” and “Discipline around change”.<br />

• Be very clear on what success looks like at key stages and <strong>the</strong> risks to getting<br />

<strong>the</strong>re. Make it very clear and simple. 10 key objectives each year. Line<br />

everyone up to deliver <strong>the</strong>se objectives and make <strong>the</strong>m very public. This ups<br />

<strong>the</strong> pressure on everyone, your own team, delivery partners and stakeholders.<br />

• Clarity on roles, governance and change control. Clear on rules of operation<br />

and being in charge of ODA’s reputation, <strong>the</strong> ODA has only agreed to take<br />

ownership if <strong>the</strong>y control delivery and can manage <strong>the</strong> decision making<br />

process. Very clear on what decisions have to be made when and <strong>the</strong> decision<br />

making process. Discipline on decision making (timing, responsibility etc)<br />

• Get <strong>the</strong> right team.<br />

• David personally spent <strong>the</strong> first nine months interviewing, not just his<br />

direct reports, but at all levels in <strong>the</strong> organisation to get <strong>the</strong> right people<br />

and right culture in place. Always looked for what motivates<br />

individuals.<br />

• Partnership with key suppliers needs respect both ways:<br />

• Have strong client side team: pay private sector rates and<br />

bonuses, but drive performance and deal with underperformers.<br />

You have to have people that are peers of <strong>the</strong> key<br />

suppliers and paid similar amounts or <strong>the</strong>re is envy / lack of<br />

respect / no true partnership<br />

• Assess and treat suppliers as partners. Struggled with CLM in<br />

<strong>the</strong> early days, but dealt with it. Gave CLM offices in ODA,<br />

invited to all meetings etc<br />

• You need leadership. Force <strong>the</strong> issue on poor leadership e.g.<br />

changed much of <strong>the</strong> CLM management team<br />

Confidential 4


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

• Control <strong>the</strong> money. Use Treasury as an ally. No politician or anyone else in<br />

<strong>the</strong> governance chain wants to force issues and make tough decisions, e.g.<br />

forcing <strong>the</strong> budget issues. Treasury is a great ally. Get to <strong>the</strong> people in <strong>the</strong><br />

engine room (grade 5s and 7s), spend time with <strong>the</strong>m, get <strong>the</strong>ir trust, <strong>the</strong>y brief<br />

<strong>the</strong> senior Treasury management. Be open and honest.<br />

• Rigorous execution:<br />

• Hold to your scope, schedule and budget - Don’t blink. If decisions<br />

were not made on time, <strong>the</strong>n time was added to <strong>the</strong> plan, not absorbed<br />

by hoping to do better on later stages. If scope increased, budgets<br />

increased, not absorbed into existing budgets.<br />

• Peer challenge: weekly meeting, no hierarchy, everyone has <strong>the</strong> right<br />

to challenge<br />

• Get <strong>the</strong> right Chair for all Project Boards, <strong>the</strong> role is key<br />

• Coaches for all execs, <strong>the</strong>y improve performance massively<br />

• Real smart exec assistants (Cambridge grad types) to sift through info<br />

and make sure <strong>the</strong> right elements are dealt with<br />

• Create <strong>the</strong> time and machine, so you can focus on <strong>the</strong> critical issues<br />

and get into <strong>the</strong> detail where required – detail matters<br />

• Huge attention to detail and really clear accurate summaries that make<br />

<strong>the</strong> complex simple for <strong>the</strong>ir stakeholders.<br />

• Stakeholder management. Go to <strong>the</strong>m; discipline in meeting and managing<br />

<strong>the</strong>m; let <strong>the</strong>m know you are thinking about <strong>the</strong>m; relationships matter. Have<br />

<strong>the</strong> rigorous discipline on scope, process, and clarity on issues – but <strong>the</strong>n deal<br />

with people and make sensible management discussions on what is needed for<br />

overall (not just ODA) success.<br />

• Risk: Look far enough ahead and focus on risks to your 10 key goals for each<br />

year. Use experts in <strong>the</strong>ir field who have done it before.<br />

Confidential 5


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

<strong>Pcubed</strong>’s <strong>London</strong> <strong>2012</strong> Engagements<br />

ODA Programme Management Office and Assurance Office<br />

• <strong>Pcubed</strong> helped set up <strong>the</strong> ODA’s Project Development phase – how to manage<br />

projects during pre-construction, including creating <strong>the</strong> budgets, agreeing <strong>the</strong><br />

scope and performing options analysis to identify <strong>the</strong> optimal delivery solution.<br />

With this in place, we helped to build <strong>the</strong> original ODA Programme Baseline<br />

Report, which set programme and project scope and budget baselines.<br />

• We put in place <strong>the</strong> risk management approach and process, creating and<br />

supporting <strong>the</strong> ODA executive-level risk management board.<br />

• We advised <strong>the</strong> ODA on <strong>the</strong> procurement of its delivery partner from a<br />

programme management good practice perspective and took part in <strong>the</strong><br />

competitive dialogue process.<br />

• We helped build <strong>the</strong> ODA’s programme and project assurance provision to help<br />

projects and programmes get access to good practice, to help avoid risks and<br />

to ensure <strong>the</strong>ir reporting data was robust. This included a pragmatic approach<br />

to external assurance, involving reviews by <strong>the</strong> Office of Government<br />

Commerce (OGC Gateways) for <strong>the</strong> programme and its projects.<br />

• We helped to build <strong>the</strong> <strong>Olympic</strong> Projects Review Group and gained <strong>the</strong><br />

agreement of diverse funding stakeholders (GLA, LDA, DCMS, Treasury etc.)<br />

on <strong>the</strong> benchmarks for measuring successful project investment.<br />

• We designed, wrote and provided quality assurance for <strong>the</strong> project business<br />

cases which justified <strong>the</strong> funding approvals and signaled <strong>the</strong> end of<br />

procurement and <strong>the</strong> start of project construction.<br />

ODA Construction Logistics Project<br />

• <strong>Pcubed</strong> drafted 19 business cases on behalf of <strong>the</strong> ODA Construction Logistics<br />

Project Sponsor. The total approved value was £365m.<br />

• We proofed of procurement documentation (PQQ, ITT and Tender Evaluation<br />

Reports) to ensure compliance with public sector procurement rules prior to<br />

publication.<br />

• We acted as Deputy Project Sponsors for various Construction Logistics<br />

projects, including <strong>the</strong> management of temporary highways and o<strong>the</strong>r<br />

infrastructure. This involved overseeing <strong>the</strong> CLM <strong>Delivery</strong> Partner and<br />

providing assurance to ensure success of <strong>the</strong>se sub-projects.<br />

• We wrote an Options Analysis Report for <strong>the</strong> location of <strong>the</strong> <strong>Olympic</strong> Park Site<br />

Offices.<br />

• We acted as Programme Development Manager. This entailed establishing and<br />

integrating 18 workgroups representing LOCOG and <strong>the</strong> ODA, to define <strong>the</strong><br />

successful integration of <strong>the</strong> two organisations for delivery of <strong>the</strong> <strong>London</strong> <strong>2012</strong><br />

Games.<br />

Confidential 6


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

ODA IT<br />

• IT Capability Manager, ODA IT Project: Oversight and assurance of project<br />

delivery, including business case review and liaison with business client<br />

sponsor.<br />

• ODA IT Project: Liaison with business users for roll-out and implementation of<br />

Programme-wide EDRMS (document management) project, working with<br />

projects to design new file structures and migrate all project documentation into<br />

<strong>the</strong> new system.<br />

Support for ODA Director of Design and Regeneration<br />

• Project Manager, ODA Arts and Culture Team: Full project management<br />

ownership of a varied portfolio of art installations within <strong>the</strong> <strong>Olympic</strong> Park on<br />

behalf of <strong>the</strong> Arts and Culture team, including fountains, lightpieces and<br />

entrances. The role has also included a secondment to <strong>the</strong> GLA for an<br />

ambitious project to install a landmark tower in <strong>the</strong> Park.<br />

• Assistance in setting up ODA <strong>Olympic</strong> Park Operations project and new<br />

functional area.<br />

<strong>Pcubed</strong> work with CLM <strong>Delivery</strong> Partner<br />

• PLUG (PowerLines UnderGrounding) project:<br />

1. Co-ordinated <strong>the</strong> Utilities contractor for <strong>the</strong> £6.5m removal of 54<br />

overhead pylons across <strong>the</strong> <strong>Olympic</strong> Park.<br />

2. Coordinated closeout documentation compliance for PLUG.<br />

3. Acted as client Project Manager for <strong>the</strong> design, development and<br />

installation of <strong>the</strong> Art Fence and sedum wall of <strong>the</strong> PLUG Nor<strong>the</strong>rn<br />

Headhouse (see photograph below).<br />

• Structures, Bridges and Highways project: Supported <strong>the</strong> Head of SBH,<br />

examining <strong>the</strong> governance processes and rewriting key project management<br />

documentation, including <strong>the</strong> Project Execution Plan and Scope Book.<br />

• Construction Integration: Managed <strong>the</strong> coordination of interface issues<br />

between construction projects within <strong>the</strong> <strong>Olympic</strong> Park, including design<br />

clashes between venue and infrastructure projects and <strong>the</strong> phased scheduling<br />

of construction works.<br />

• Handover Assurance: Managed <strong>the</strong> client team to coordinate and ensure <strong>the</strong><br />

HSE-compliant handover of construction areas between contractors across<br />

<strong>Olympic</strong> Park. This included handover process redesign and ongoing<br />

assurance responsibilities.<br />

Confidential 7


PCUBED <strong>Olympic</strong> <strong>Delivery</strong> <strong>Authority</strong> Update<br />

<strong>Pcubed</strong> work with LOCOG:<br />

• <strong>Pcubed</strong> developed <strong>the</strong> Venue Preparation Schedules to allow for cross<br />

workstream integration and external stakeholder buy in. We helped to integrate<br />

and coordinate <strong>the</strong> work of <strong>the</strong> Town Planning, Design and Technology teams<br />

amongst o<strong>the</strong>rs to ensure successful delivery.<br />

• We also worked with <strong>the</strong> Venues and Infrastructure team within LOCOG to gain<br />

buy in from external stakeholders including <strong>the</strong> Department of Culture, Media<br />

and Sports and <strong>the</strong> International <strong>Olympic</strong> Committee. We reported to <strong>the</strong><br />

Director of Venues, James Bulley, in coordination with <strong>the</strong> LOCOG CIO, Gerry<br />

Pennell to assure <strong>the</strong> schedules were representative.<br />

<strong>Pcubed</strong> work with <strong>Olympic</strong> Park Legacy Company (OPLC):<br />

• <strong>Pcubed</strong> helped set up <strong>the</strong> OPLC’s Project Development phase – similarly to<br />

work at <strong>the</strong> ODA we helped <strong>the</strong> OPLC set out how to manage projects during<br />

pre-construction, including creating <strong>the</strong> budgets, agreeing <strong>the</strong> scope and<br />

performing options analysis to identify <strong>the</strong> optimal delivery solution. We<br />

developed with <strong>the</strong> OPLC its overall programme and projects approvals<br />

schedule.<br />

• We helped to review and improve OPLC’s project appraisal process to meet <strong>the</strong><br />

needs of Government Departments.<br />

• We helped <strong>the</strong> OPLC develop its business planning and supported Government<br />

spending review submissions. We also supported internal and external<br />

reporting and communications including overarching programme schedule.<br />

• We worked with <strong>the</strong> OPLC to develop its stakeholder management approach<br />

for drawing down, controlling and assuring investment in projects. We liaised<br />

with various Mayoral Authorities and Government Departments to agree<br />

processes and timetable to review business cases.<br />

Confidential 8

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