Management methods and construction software specifically designed for delivery of large-scale construction projects
According to McKinsey “On average, projects with budgets above $1 billion are delivered one year behind schedule, and run 30 percent over budget.”. These ultra-large projects are wasting a considerable percentage of their time and money compared to the budget and schedule. Even if your project isn’t quite at that scale, a significant amount of the budget is lost through inefficiencies. A compressed schedule and lack of overview can often lead to rash decisions being made to keep the ball rolling. However, it’s interesting to see that McKinsey’s report noted that: “While our interviewees give full credit to the absolute necessity of getting the core project-management systems and processes right (the science), most of the practitioners almost take that part for granted, claiming that many companies attempting large capital investment already do (and must) have best-practice standards and processes implemented.”
Best-practice standards and processes, achieved by using construction software, are often overlooked by medium and large sized projects. The implementation of best practices is repeatedly seen as an afterthought. Many of the budget blowouts could have been averted if a technological solution had been specified in the contract by the client in the first place.
McKinsey’s report also highlighted that leadership and soft skills are central to the success of any project, and resulted in their current management strategies. These practices, listed below, can be used to drive a successful outcome.
In summary, McKinsey’s eight management practices are:
During the setup phase:
- Define purpose, identity and culture
- Assemble the right team
- Carefully allocate risk and align incentives
- Work hard on relationships with stakeholders
Throughout the delivery phase:
- Invest in your team
- Ensure timely decision making
- Adopt forward-looking performance management
- Drive desired behaviours consistently
A technological solution to help you deliver a successful project is easier than you may think. To find out more about how WebFM’s online solutions for the construction industry can help you with your projects, contact us today to arrange a demo of our OmTrak system.
Note: you can read McKinsey’s report here.