Aligning capital asset delivery with organizational development
How can we deliver capital projects more efficiently?
While traditional approaches to selecting delivery models for capital projects focus on risk appetite and project complexity, little focus is given to mapping what capabilities - people, processes and systems - are required for the project before partners are engaged.
Through our work on major capital projects around the world, our teams have observed that this is often the root cause of many common delivery issues, such as inefficient overhead, inappropriate/insufficient capability, reduced ROI and greater risk exposure.
This paper outlines a new approach to setting up for project delivery, the Capability Approach, and how this can deliver both a step-change in project performance, as well as supporting the longer-term objectives of an organizational.
The Capability Approach
This report addresses three key questions relating to capability when setting up to deliver a capital project:
Answering these points enables the definition of a delivery strategy, its core components and how the organization’s capabilities need to change over time, thereby setting up the project to deliver real value efficiently.
Planning and delivering the required capabilities in a structured and coordinated way can also support delivery against wider organizational objectives and long-term vision.
"Starting by mapping the capabilities required to deliver the project is critical to supporting and managing a chosen delivery model. This avoids inefficiency, enables better decision-making, management of risk and improves control."
Developing a clear understanding of the capabilities required throughout the lifecycle of a capital project can both optimize efficiency and value in delivery, as well as supporting the achievement of broader organizational objectives over the longer term.
Capital Projects Insights is a series of papers bringing together the latest thinking from members of our global team on optimizing performance and value across the lifecycle of capital projects.