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17 2.1 IMPLEMENTING 5DPM Section 1.7 discusses implementation approaches from an organizational leadership and strategy viewpoint, and this section presents an overview of implementation from a project management process viewpoint. Implementation of the 5DPM process aligns well with or overlaps the typical project development phases, as shown in Figure 2.1. The typical project development process generally consists of six phases (planning; programming and scoping; preliminary engineering; fi nal engineering; construction; and operation, monitoring, and maintenance), as shown in the left part of Figure 2.1. These phases often overlap as different parts of a project advance at different rates. Agencies may use different naming conventions for the phases or break some of them into more than one phase (such as a programming phase followed by a scoping phase). As a project moves from planning to operation, monitoring, and maintenance of the facility (e.g., after construction obligations for some complex-project contracts), a number of different deliverables are developed, including the Highway Improvement Plan (HIP) and the State Transportation Improvement Plan (STIP), which represent the 10- and 5-year development and funding plans, respectively. The timing of these two plans can vary slightly from state to state (thus the spring representations in Fig- ure 2.1). In addition, a variety of procurement options and decisions may take place on a complex project, including procurement of design services and construction services, at different points in project development. As shown down the left side of the right part of Figure 2.1 (and covered in detail later in this chapter), complexity mapping occurs multiple times in the project devel- opment process to track the changes in project complexity. The project manager and project planning team identify success factors (Method 1) early in the project devel- opment process. Assembling the project team, selecting project arrangements, and 2 USING THE 5DPM PLANNING FRAMEWORK
18 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS developing a cost model and finance plan (Methods 2 through 4) happen concurrently, soon after identification of the critical success factors, and can be variable and revisited during further development of the project. The team starts developing project action plans (Method 5) almost at project conception and continues doing so throughout project development as needed. Finally, the team selects the tools appropriate for use, depending on project needs, throughout the project. Table 2.1 shows when you are most likely to implement each of the 5DPM methods and 13 tools during each of the typical project development phases. The upper rows with darker blue shading and M in the table cells represent typical use of the 5DPM methods covered in this guide (Chapter 3), and the lower rows with lighter blue shad- ing and T in the table cells represent typical use of the project management tools included in this guide (Chapter 4). Using the 5DPM methods, your team can select from the 13 project management tools to help achieve project success. Figure 2.1. Typical project development phases and deliverables (left) with 5DPM approach (right). Figu re 2.1. Typical project developm appr ent phases a oach (right) nd delivera . bles (left) with 5DPM utilities. . .;
19 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK TABLE 2.1. IMPLEMENTATION MATRIX FOR 5DPM METHODS AND TOOLS BY TYPICAL PROJECT DEVELOPMENT PHASE 5DPM Method or Tool Planning Programming and Scoping Preliminary Engineering Final Engineering Construction Operation, Monitoring, and Maintenance Methods 1. Define critical project success factors M M 2. Assemble project team M M M M 3. Select project arrangements M M M 4. Prepare early cost model and finance plan M M 5. Develop project action plans M M M M M Tools 1. Incentivize critical project outcomes T T T T T T 2. Develop dispute resolution plans T T T T T 3. Perform comprehensive risk analysis T T T T T T 4. Identify critical permit issues T T 5. Evaluate applications of off-site fabrication T T 6. Determine involvement in ROW and utilities T T T T 7. Determine work packages and sequencing T T T 8. Design to budget T T T 9. Colocate team T T T 10. Establish flexible design criteria T T 11. Evaluate flexible financing T T T 12. Develop finance expenditure model T T T 13. Establish public involvement plans T T T T Note: ROW = right-of-way.
20 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS 2.2 ASSESSING 5DPM READINESS All transportation agencies have their own project development processes and various project management methods and tools. Some of the methods and tools presented in this guide might be new to your agency yet potentially powerful to improve or aug- ment your existing capabilities to manage any given complex project. We include a brief questionnaire with multiple-choice answers for each of the five methods and 13 project management tools detailed in the next two chapters to help you quickly and simply assess the experience, competency, or maturity level of your organization in using each of the methods or tools on any given project. The questions to consider, which are covered in this guide, are as follows: ⢠When do we use these methods and tools during our project development process? ⢠How much experience, competency, or maturity does our agency currently have in any given area needed to manage a current or upcoming complex project successfully? ⢠How can we determine whether to implement any of these methods or tools? ⢠What actions do we take to implement any particular 5DPM method or tool? Your quick assessments may help you to identify your risk level in implement- ing any particular method or tool on a project and may also help you to determine additional resources and organizational changes to consider in addition to use of this guide, as outlined in Table 2.2. You might find it useful to go through all the quick assessments suggested in Table 2.2 to aggregate, as well as pinpoint, your current strengths and weaknesses and to help determine larger-scale potential needs, but doing so is not necessary to begin using this approach or parts of it on any given project. The 5DPM approach is flexible and overlays easily onto current transportation project management processes used across the country, so you can use it to introduce incremental changes and improve- ments to your own project management processes.
21 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK TABLE 2.2. 5DPM IMPLEMENTATION READINESS ASSESSMENTS AND RECOMMENDATIONS Readiness Definition Description Recommendations Novice No project management controls applied or considered. You view your agencyâs project management maturity or experience level at the lowest level for implementation of this 5DPM method or project management tool, with little or no prior experience using it. Beginning with this complex project, consider a targeted training program in addition to use of this guide and the training materials available on this project to establish a standard process for continuous project management use and improvement. Also, survey the additional resources annotated in the guide and training materials to help meet your needs. Above novice No formal process, established tool, or designated staff, with ad hoc methods applied by a few specialists. You view your agencyâs project management maturity or experience level fairly low for implementation of this 5DPM method or project management tool, although you may have had some prior experience using it on an ad hoc basis without any established process. Beginning with this complex project, consider a targeted training program in addition to use of this guide and the training materials available on this project to establish a standard process for continuous project management use and improvement. Also, survey the additional resources annotated in the guide and training materials to help meet your needs. In-between with buy-in Basic process and tools used repeatedly but not standardized and/or management practices vary from project to project. Your agency recognizes the need to use this 5DPM method or project management tool but currently has little experience using it or has a loosely defined process, if any. Beginning with this complex project, consider a targeted training program in addition to use of this guide and the training materials available on this project to establish a standard process for continuous project management use and improvement. Also, survey the additional resources annotated in the guide and training materials to help meet your needs. Some maturity or experience Standard organizational process, methods, tools, and staff are established and documented. Your organization has some experience with, and an established process for, use of this 5DPM method or project management tool. You may want to incorporate a feedback (lessons learned) loop into your current process by collecting and analyzing the relevant information after project completion for continuous improvement. Your agency may want to refine your current process by reviewing the related 5DPM methods and tools in this guide as well as the available training materials. Also, survey the additional resources annotated in the guide and training materials to help meet your needs. Mature or experienced Performance management is enabled by quantitative feedback with lessons learned and best practices applied for continuous process improvement. Your agency is highly mature or experienced in implementing this 5DPM method or project management tool. You may want to refine your current process by reviewing the related 5DPM methods and tools in this guide, as well as the available training materials. Also, survey the additional resources annotated in the guide and training materials to help meet your needs.
22 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS 2.3 DEFINING PROJECT COMPLEXITY When implementing the 5DPM approach on a project to help manage project com- plexity, it is important to standardize and focus on each of the five dimensions to ensure the following: ⢠Every member of the project team understands and uses the same terminology in the same fashion. ⢠External stakeholders understand the meaning of the terminology used in conjunc- tion with the complex-project management documents. ⢠Each factor is categorized under a single project management dimension where it can be further associated with specific management tools and assigned to project action plans for mitigation or resolution. ⢠Consistency is maintained in the project record to make it fully useful on an ongo- ing basis and as an example for future complex-project management plans. The five dimensions are defined below. Dimension 1: Cost The focus on the cost dimension covers the factors that affect quantifying the scope of work in dollar terms. You can use the following list as a cost dimension performance standards checklist: ⢠Document the overall project scope. ⢠Communicate the estimatorâs knowledge of the project by demonstrating an under standing of scope and schedule as it relates to cost. ⢠Alert the project team to potential cost risks and opportunities. ⢠Provide a record of key communications made during estimate preparation. ⢠Provide a record of all documents used to prepare the estimate. ⢠Act as a source of support during dispute resolutions. ⢠Establish the initial baseline for scope, quantities, and cost for use in cost trending throughout the project. ⢠Provide the historical relationships between estimates throughout the project life cycle. ⢠Facilitate the review and validation of the cost estimate (AACEI 2010). Note that the second checklist item relates cost to scope and schedule. In 5DPM, cost relates to financing and context as well as schedule and scope. Table 2.3 provides a synopsis of the factors to consider in the cost dimension and includes applications and examples.
23 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK TABLE 2.3. COST DIMENSION FACTORS Factor Definition Application Example Project estimates Involves all types of cost estimates completed throughout the project life cycle. Team members and their roles are identified, which requires that all project delivery team members be aware of and provide input to the estimating process. Structural designer verifies the number of tons of steel used in the estimate and advises project manager on potential quantity growth as the design advances. Uncertainty Distributes risk in the 5DPM plan and then quantifies that risk within the estimate. ⢠Meet project objectives, expectations, and requirements. ⢠Facilitate an effective decision or risk management process. ⢠Identify risk drivers with input from all appropriate parties. ⢠Link risk drivers and cost or schedule outcomes. ⢠Avoid self-inflicted risks. ⢠Employ experience or competency. ⢠Provide input for probabilistic estimating results in a way that supports effective decision making and risk management (AACEI 2008). Risks faced in a complex project, especially if the agency is implementing a new technology such as Accelerated Bridge Construction methods or a new delivery method such as publicâ private partnerships. Contingency A method that quantifies the risk in a cost estimate. Insurance, bonding, outsourcing, and project reconfiguration are used to eliminate a specific risk (e.g., changing the project alignment to avoid a thorny ROW acquisition issue). Developing contingencies such as adding float in the budget for line items that are thought to be potentially problematic. Methods for developing contingencies include probabilistic estimating, sensitivity analysis, Monte Carlo simulations, and a spreadsheet- based application suite for predictive modeling. Project-related costs Costs borne to complete the project but that may not be financed with project funding. Agency soft costs for personnel, facilities, and administrative overhead. The costs of overtime for in- house employees due to loss of a specific group of personnel dedicated to work on the complex project only. Project cost drivers and constraints The technical aspects of a complex project that define its scope in terms of the cost to deliver it. When a complex project has a finite amount of financing and no ability to change the budget as circumstances change, managing the cost dimension becomes a zero-sum game. This makes it critical to identify those features of work that drive the final cost of the project. The dimensions of the pavement section for an urban Interstate highway reconstruction project are driven by traffic and project length; thus, pavement costs drive the cost.
24 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Dimension 2: Schedule The focus on the schedule dimension relates to all the calendar-driven aspects of a com- plex project. The schedule dimension furnishes the time factors necessary to achieve delivery of the complex project by the time they need to be resolved. The purpose for documenting the background and rationale used to develop complex-project schedules can be summarized as follows: âBy documenting the schedule basis, the project team captures the coordinated project schedule development process, which is by nature unique for most construc- tion projects. This improves the final quality and adds value to the project baseline schedule, which serves as the time management navigation tool to guide the project team toward successful project completion. The schedule basis also is an important document used to identify changes during the schedule change management processâ (AACEI 2009, italics added). The term tool highlights that coordinated scheduling facilitates time and cost man- agement and ultimately the quality of the completed project. Complex projects are often delivered at a faster pace than routine projects. Therefore, it is imperative that the delivery schedule accurately reflects the relationships between activities to mitigate potential delays. Table 2.4 summarizes the factors to look at in the schedule dimension and includes applications and examples.
25 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK TABLE 2.4. SCHEDULE DIMENSION FACTORS Factor Definition Application Example Time The period in which the complex project must be delivered. ⢠Scope of work ⢠Work breakdown structure ⢠Key assumptions and constraints ⢠Sequence of work ⢠Key project dates ⢠Critical path ⢠Schedule inclusions and specific exclusions ⢠Schedule change order process ⢠Integration and progress-reporting process ⢠Key procurements and submittals (AACEI 2009) The amount of time that must be allocated to obtaining NEPA clearance. Schedule risk Risk associated with a project that cannot be clearly identified and quantified through formal or informal methods. Schedule contingency: ⢠Number of time units (e.g., rain days, stand-by days), or ⢠Amount of money that represents the cost of mitigating the given risk. A contingency earmarked to pay premium wages to the workforce to recover the schedule in the event of a delay (sometimes called a schedule reserve or time allowance). Prescribed milestones Key project dates set for intermediate progress points that mark the start and finish of portions of the complex project. Milestones consist of events âsuch as the project start and completion dates, regulatory/ environmental key dates, and key interface dates . . . planned turn-around/shut-down dates, holiday breaks [and] key procurement mitones/activitiesâ (AACEI 2009). Key submittals, such as permits or key project quality assurance âhold points,â inspections, or both. Resource availability Availability of the necessary personnel, equipment, materials, and financial resources to be able to maintain the production rates used in developing durations for the activities in the complex-project schedule. The projectâs resource profile should separate critical resources from noncritical resources; critical resources are resources that are doubly constrained (e.g., only available in a finite quantity during a specific period). A specialized piece of equipment that is the only piece of that size or capacity in the region; must be booked in advance; and, once booked, is only available during the booking period. Note: NEPA = National Environmental Policy Act. Dimension 3: Technical The focus on the technical dimension fleshes out all technical aspects of the project, including the typical engineering requirements. Issues for this dimension include de- sign requirements, scope of the project, quality of construction, and the organizational structure of the owner or agency undertaking the project. The technical dimension also includes items such as contract language and structure and the implementation of new technologies for effective management of the project. Table 2.5 spells out the factors associated with the technical dimension and includes applications and examples.
26 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS TABLE 2.5. TECHNICAL DIMENSION FACTORS Factor Definition Application Example Scope of work The purpose of the project that technically defines the constructed facility to satisfy that purpose. An inventory of all the primary and ancillary technical features of design and construction work. The as-planned scope of work must exactly match the as-designed scope of work and, in federal-aid projects, this process must also review the scope for features of work not authorized in the project funding documents, as well as in the NEPA clearance. Internal structure How the owner or agency is organized (e.g., traditional hierarchy, matrix with project teams) to manage the complex project effectively. The form and composition of the project team should be based on the integration of the oversight, design, and construction teams, which are based on the chosen project delivery method, where designâbidâbuild represents the need for minimal integration and construction managerâgeneral contractor represents maximum integration. In many cases, achieving maximum integration requires colocation of the design team, agency oversight team, and construction team; typically, colocation means sharing office space on the project site to facilitate immediate joint reaction to issues and over-the-shoulder reviews of the design product. Contract The main legal documentation between the owner or agency and its project partners. ⢠Prequalification ⢠Warranties ⢠Dispute resolution measures Extended warranties provided by contractors to ensure quality and guarantee pieces of the project will perform satisfactorily for a specified period. Design Different aspects include method, reviews and analysis, and existing conditions. Agency policy for planning and design development. Reviews and for maintaining accuracy and quality of the design, such as value engineering analysis and constructability reviews. Construction Quality, safety and health, optimization, and climate impact. Agency policy for construction delivery. A complex project in a northern state will need to use means and methods that permit all weather- sensitive work to be completed during the typical construction season. Technology Complex projectâs need to leverage technology to facilitate design, construction, or operational requirements. ⢠Three-dimensional design systems ⢠Construction automation ⢠Project communications ⢠Project management software ⢠Project information modeling ⢠Intelligent transportation Global positioning systemâenabled or machine-guided construction equipment used to minimize the need for land surveyors during construction. Nature of constraints Complexity created by project extremes. Early recognition of project constraints is a critical factor in understanding and managing complexity. Extremes may include the following: ⢠Skewed alignment ⢠Extreme topography ⢠Narrow corridors ⢠Zero backwater rise Note: NEPA = National Environmental Policy Act.
27 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK Dimension 4: Context Focusing on context as a separate project complexity dimension helps manage all ex- ternal factors that have an impact on the project. Context factors can be some of the most difficult to predict and manage before and during construction. Context includes stakeholders, environmental issues, legal and legislative requirements, local issues, and project-specific factors. Table 2.6 defines the factors typically associated with the con- text dimension and includes applications and examples. TABLE 2.6. CONTEXT DIMENSION FACTORS Factor Definition Application Example Stakeholders Parties directly affecting, and affected by, the project ⢠Public relations planning ⢠Permitting ⢠Training for internal staff The public, politicians, owner or agency, and jurisdictional stakeholders. Project-specific issues Factors that directly relate to the complex project ⢠Maintaining capacity ⢠Work zone visualization ⢠Intermodal requirements ⢠Utility issues Work zone visualization maintains capacity by using various means to alert the public to change in normal traffic routes. Local issues Factors that are specific to the affected community ⢠Social equity studies ⢠Demographics ⢠Public services ⢠Land use ⢠Growth inducement ⢠Land acquisition ⢠ROW acquisition ⢠Economic impact ⢠Marketing ⢠Cultural sensitivity ⢠Workforce A new highway project running through a low-socioeconomic neighborhood could displace residents without the means to relocate. Conversely, a new project could produce a growth inducement, increase land use, and improve the areaâs economy. Environmental conditions Self-explanatory ⢠Commitments made to obtain permits ⢠Special ecological issues ⢠Sustainable design Designing a pavement that maximizes the use of recycled materials from the project itself. Legal and legislative requirements Local procurement law and local industry and internal staff acceptance ⢠Enabling legislation for alternative delivery ⢠Industry bidding culture ⢠Availability of sophisticated design consultants and construction contractors Industry outreach sessions to collect potential issues that might act as a barrier to receiving enabling legislation. Global and national conditions Events that occur outside the region that affect the complex project ⢠War ⢠Commodity shortages ⢠Labor strike among material suppliers ⢠Natural disasters Hurricane Katrina created a shortage of sheet piling in its aftermath, causing many projects to be delayed pending availability of that material. Unexpected occurrences Self-explanatory ⢠Unusually severe weather ⢠Force majeure Catastrophic weather events, wildfires, earthquakes, and delays and damage due to terrorism.
28 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Dimension 5: Financing Focusing on financing as a separate project complexity dimension is increasingly im- portant because, for complex projects, it is no longer sufficient to merely know the project cost. The owner must know how the project will be paid for and integrate that knowledge into the scope of work. The mechanics of financing can have a direct impact on the project design, the speed with which the project is delivered, and the ability to achieve contextual requirements. Traditional three-dimensional project manage- ment assumes that the cost of the project is a direct function of its technical requirements. Therefore, designers work on the principle that the agency must find the money to fund the project and, the design, itself, will define project budget and schedule. Complex projects often reverse that prin- ciple. Many complex projects need the financing arranged in conjunction with the design process. Therefore, available financing materially drives the features of work that result in the final design. This approach shifts the focus away from how much money is needed to deliver the desired capacity to how much capacity can be delivered for the available financing. If the scope is not flexible for modification, then additional revenue or financing capacity needs to be rigorously identified for proj- ect authorization. Table 2.7 defines the factors to consider in the financing dimension and includes applications and examples. Finance Dimension Resource Because of the varied nature of innovative and experimental financing policies poten- tially available for transportation agencies to leverage for complex projects today, it is difficult to differentiate and categorize the methods. The methods frequently become so project-specific that any attempt to develop a precise yet general definition is prob- ably impossible. For more in-depth knowledge of emerging thought on project finance and pro- gram policies, the U.S. Congressional Budget Office has released a detailed study of the financing issues for complex projects titled Alternative Approaches to Funding High- ways (https://www.cbo.gov/ftpdocs/121xx/doc12101/03-23-HighwayFunding.pdf). âAs public funds become insufficient to provide for timely renewal of the nationâs infrastructure in the traditional pay-as-you-build model, innovative funding and the injection of private capital into traditionally public financing arrangements have added new modes of complexity to projects.â R. J. Tetlow (2007)
29 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK TABLE 2.7. FINANCING DIMENSION FACTORS Factor Definition Application Example Public funding Traditional sources of funding for public projects ⢠Federal-aid funds ⢠State funds Advance construction that âallows a state to begin a project even if the state does not currently have sufficient federal-aid obligation authority to cover the federal share of project costsâ (FHWA 2002). Bond and debt financing Methods to access capital markets Capital cost financed using some type of bond, and the revenue generated by the facility used to retire the debt over a specified period. ⢠Size of bond fixed with an early cost estimate ⢠Bond issue creates a fixed delivery schedule to service debt ⢠Postconstruction revenue estimates ⢠Actual traffic growth versus estimated growth Grant anticipation revenue vehicles (GARVEEs), private activity bonds (PABs), Build America Bonds (BABs), and so forth. Loans and credit assistance Direct loans from the federal government or improved credit Help state or project sponsor to obtain loan directly from the federal government or tap into the capital market at a lower interest rate with the federal governmentâs credit assistance. Transportation Infrastructure Finance and Innovation Act (TIFIA), state infrastructure banks, and so forth. Exploiting asset value Using an existing asset to create new revenue ⢠Monetizing ⢠Franchising ⢠Carbon credit sales ⢠Leasing a bridge to a private company to gather toll revenue. ⢠Developing Interstate rest areas with food or fuel concessions. ⢠Leveraging a greenbelt to create securities that are salable on the Chicago Climate Exchange. Finance- driven project delivery methods Project delivery methods such as publicâprivate partnerships in which financial considerations are a major part of the delivery process. Give public agencies access to private capital and thus accelerate the delivery of its service to the traveling public. Unsolicited comprehensive development agreements to build a new bridge or road.
30 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Additional Resources FHWA and SHRP 2 have many resources available to assist complex-project managers in analyzing project needs. The FHWA Office of Innovative Program Delivery web- site is a good resource (www.fhwa.dot.gov/ipd/index.htm). SHRP 2 Highway Renewal products can be accessed at www.trb.org/StrategicHighwayResearchProgram2SHRP2/ Pages/Renewal_156.aspx. 2.4 MAPPING PROJECT COMPLEXITY To map project complexity, the project manager and project planning team must define and understand the factors affecting complexity, as outlined earlier in this chapter. Mapping project complexity will help you to identify, understand, and rank the critical project success factors. The subsequent steps involve allocation of administrative, human, and financial resources to the project (these methods are described in detail in Chapter 3). If the resources necessary to suc- cessfully manage the project are inadequate or are constrained by outside factors, you will need to develop project action plans to mitigate, eliminate, or resolve the inadequacies and constraints. The final steps in the 5DPM process will be to select appropriate project management tools (described in detail in Chapter 4). The steps are discussed in increasing detail in the following sections and in Chapters 3 and 4. Early in the project planning stages, the project leader ship team analyzes the fac- tors of complexity in each of the dimensions. The complexity survey in Appendix B will help the team analyze project complexity. Project leaders should feel free to add other factors not contained in the survey to better model a given projectâs unique com- plexity profile. Once complete, all team members must understand the teamâs defini- tions for each factor and generally agree on the sources and nature of complexity on the project. This section discusses the development of 5DPM complexity maps, which help project teams to understand and define the dimensions of their project complexity and to allocate resources and select tools. The team scores each dimension of complexity on a scale from 0 to 100 (see Figure 2.2 and Part VII, No. 2 of Appendix B). âThe definition of successful transportation project management is expanding to include broad, holistic, and long-lived measures of project performance.â K. Jugdev and R. Muller (2005)
31 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK Note that it is much less important for the team to agree on absolute scores than on relative scores (from one dimension to the other). In other words, the relative order of the scores (from 0 to 100) should match the rank order of dimensions from least to most constrained (as shown in Part VII, No. 1 of Appendix B). After averaging or agreeing on the score to assign to each dimensionâs complexity, project complexity mapping can begin. The dimension that represents the highest combination of complexity and con- straint most likely presents the greatest challenges on the project and therefore requires the most management attention. In addition, complexity is frequently created by the interaction between dimensional factors, and this interaction provides an opportunity to apply innovative solutions to the least-complex or least-constrained dimensions and mitigate the impact of the most-constrained and most-complex dimensions. To map project complexity, create a spreadsheet with two columns as shown in Figure 2.3 (and in Appendix C). Cost Dimension Complexity Scale Minimal Average High 0 25 50 75 100 Schedule Dimension Complexity Scale Minimal Average High 0 25 50 75 100 Technical Dimension Complexity Scale Minimal Average High 0 25 50 75 100 Context Dimension Complexity Scale Minimal Average High 0 25 50 75 100 Financing Dimension Complexity Scale Minimal Average High 0 25 50 75 100 Figure 2.2. Scale for scoring project complexity by dimension.
32 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS The first column in the spreadsheet contains the names of each of the five com- plexity dimensions, and the second column contains the complexity score for each of the dimensions (0 to 100) for the project. The scores for each dimension are charted, using the Radar Chart feature in Excel, for example, as shown in Figure 2.4 (and in Appendix C). Figure 2.3. Complexity mapping spreadsheet template. Dimension Score (0-100 from VII.2) Technical Cost Financing Context Schedule Figure 2.3. Complexity mapping spreadsheet template. Dimension Score (from VII.2) Dimens Technic Cost Financin Context Schedul Figur ion Score (from VII.2) al 70 90 g 50 60 e 80 e 2.4. Exam ple of radar complexity map based on scores for the five dimensions. Technical 70 Cost 90 Financing 50 Context 60 Schedule 80 Figure 2.4. Example of radar complexity map based on scores for the five dimensions.
33 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK Based on the five dimensions, the resulting pentagon provides a graphic depiction of both the overall complexity of the project (area of the pentagon) and the specific nature of the complexity (the skew of the pentagon), as the example in Figure 2.4 illustrates. This guide shows how complex projects need to be managed from conception through execution. The dynamic interaction of the dimensions and use of the 5DPM methods and tools should result in changes in the complexity map as your project pro- gresses. Managing complexity does not stop during the project and requires continual monitoring and project mapping iterations. 2.5 LEVERAGING ITERATIVE PROJECT MAPPING Project complexity is dynamic rather than static, and the relative complexity of each dimension changes as the project matures. Once a given element of complexity is effec- tively addressed, the complex-project manager needs to shift attention and resources to the next critical factor of complexity. Consequently, the mapping process needs to be revisited periodically during the project as a tool for refocusing the project team on the factors most in need of resourcing to continue progress toward achieving project objectives. The complexity map is a visual project-control metric. Given the dynamic nature of project complexity, the area of the resulting pentagon is a means to measure current project complexity at any given point in time. In theory, as a project progresses toward successful completion, complexity shrinks and the area on the map is reduced. Figure 2.5 shows how a complexity map for a hypothetical complex project changes over time. The initial complexity map was created at the project concept stage. This map shows that financing was the most complex dimension, followed by context and schedule. The second complexity map was created at project authorization. It shows that, in the intervening period, the project team had successfully addressed the financing dimension, making context the most complex dimension. The third complexity map illustrates the complexity at the point when design and construction can begin. By this time, most of the context dimension factors have been dealt with, and the technical and schedule dimensions are the remaining dimensions that require adequate resources for a successful project. Note that the area of the resul- tant pentagon was reduced by nearly half because of the endeavors of the project team to address complexity in the previous phases. One additional point deals with the changing composition of the project team. Although the complex-project manager and other key individuals should remain with the project throughout its life cycle, the next layer of personnel will probably change as the project moves from planning to design to construction.
34 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Figure 2.5. Sample project complexity map changes over time: (a) project concept, (b) project authorization, and (c) project execution. (a) (b) (c) Figure 2.5. Sample project c project a omplexity m uthorizatio ap change n, and (c) p s over time roject execu : (a) projec tion. t concept, (b) (b) (c) Figure 2.5. Sample project c project a omplexity m uthorizatio ap change n, and (c) p s over time roject execu : (a) projec tion. t concept, (b) (a) (b) (c)
35 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK Each discipline has its own unique view of project complexity that is a function of its expertise and ability to understand other disciplinesâ roles in the project. Therefore, as the project complexity map is revised over time, it remains important for project team leaders to consistently score current complexity in each dimension on the basis of input from the other team members who are engaged decisively in the current project requirements. Reevaluation of the mapping of the project is important because new or different factors will have more impact as the project develops. In addition, as discussed in the next section, the footprints of complexity maps can be compared across projects to identify the nature of complexity and make appropriate resource allocations. 2.6 ALLOCATING RESOURCES TO COMPLEX PROJECTS Project complexity maps are useful (and powerful) tools for organizational leaders in assigning internal team members, developing effective procurement plans, advocat- ing for project needs to state legislators and policy makers, and allocating financial resources effectively. Fundamentally, complexity maps elevate the visibility of the most critical dimensions at the earliest opportunity, so the project manager can identify and allocate resources for possible complexity solutions. The primary objective is to do as much early planning as required, rather than waiting for a particular phase of project development to identify and resolve issues. The Virginia DOT I-95 James River Bridge project is an excellent example of how this practice is implemented. Early Planning Example: Virginia DOT I-95 James River Bridge Project The critical success factor in the James River Bridge project was to minimize congestion on I-95 in downtown Richmond during construction. The Virginia DOT determined that to achieve this outcome, they needed to reduce the average daily traffic by approximately 50%. The project management tool they developed to deal with this aspect of complexity was to hire a public relations firm before design started to initiate a 2-year targeted public information effort that encouraged motorists and, more significantly, trucking companies, to self-detour. The effort was successful, largely because the project manager did not wait for the technical dimension of the project to be well defined and allocated appropriate resources (in this case, the public relations consultant) to deal with the context dimension during the planning, rather than the design, phase.
36 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Mapping project complexity for resource allocation furnishes a rational method with which to justify the need for additional resources. For instance, a typical DOT does not usually have engineers on staff with sophisticated knowledge and experience with innovative financing. Thus, identifying the financing dimension as the most com- plex forces the project manager to look for a resource to manage that dimension, and if it does not exist in house, the wheels can be set in motion to procure that expertise from outside the agency. The process used to identify a dimension as critical produces documentation that you can use to justify the expenditure of early resources internally in your agency, as well as externally to state legislators, highway commissioners, and the like. This guideâs foundational research clearly demonstrates that complex-project success is directly tied to timely allocation of required resources to service the dimensions with the most critical complexity. 2.7 UNDERSTANDING THE INTERACTIONS OF COMPLEXITY FACTORS In addition to being dynamic, the project dimension factors are often interrelated, although they are treated as exclusive to each dimension in complexity mapping. Project teams need to identify and understand the interactions between the complexity factors early in project development to aid in understanding and managing complexity and working through the methods, associated resource allocation, and selection of tools. To begin to understand the interactions, the project team can determine if each of the factors identified in complexity mapping is a roadblock (an absolute or fixed constraint that will prevent using needed innovations to achieve success) or a speed bump (a significant challenge that might impede project success but that has alterna- tive solutions). If, for example, an infrastructure project has a critical, fixed completion date (e.g., the 2002 Olympic Gamesâ impact on the I-15 project in Salt Lake City, Utah) or crit- ical interim milestones (e.g., coordinated ramp openings and closings), the project team must be innovative in creating flexibility in as many other complexity factors as possible. For example, if the completion date is fixed and critical, then the cost, design, financing, and context issues should be addressed with flexibility in mind (e.g., innovative financing, design exceptions, incentive contracts, and early stakeholder involvement). If more than one complexity factor is fixed, the need for flexibility and innova- tion in the remaining factors increases. As a hypothetical case, if a long-span bridge must accommodate dual barge traffic with zero backwater rise (technical complex- ity) and has a fixed, expiring appropriation with a critical completion date (financing and schedule complexity), the project team should work closely with influential stake- holders to create innovative solutions to cost and context issues. The interactions can be communicated in a table format as shown in Table 2.8 (with instructions and a sample table template in Appendix D). This table can be used to help identify the critical inputs to the project development methods (Chapter 3) and the appropriate selection of project management tools (Chapter 4).
37 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK 2.8 CONNECTING THE 5DPM FRAMEWORK TO COMPLEXITY ON YOUR PROJECT Figure 2.6 encapsulates the relationship of the factors within each of the five dimen- sions of project complexity (listed across the top of the figure) to the project analysis and planning methods, which are listed on the far-right side of the figure. TABLE 2.8. SAMPLE PROJECT COMPLEXITY FACTOR TABLE FOR CONSTRAINTS AND INTERACTIONS Most Complex Least Complex Dimension Schedule Technical Cost Context Financing Complexity Factor Expiring appropriation (constrained) Dual barge traffic (constrained) Zero backwater rise (constrained) Uncertainty over how to phase the project (flexible) Downtown business leaders would prefer signature bridge (flexible) XXX (flexible) Interaction Driver Interacts with schedule Interacts with schedule Interacts with schedule, cost, and technical Interacts with XYZ Figure 2.6. Relationship of 5DPM complexity dimensions to project development methods.Figure 2 .6. Relationship of 5DPM complexity dimensions to project development meth ods. De ne Critical Project Success Factors
38 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Figure 2.6 conceptually relates the 5DPM methods to each of the five project com- plexity dimensions as follows: ⢠Method 1, Define Critical Project Success Factors, is influenced by factors from all five dimensions. ⢠Method 2, Assemble Project Team, and Method 3, Select Project Arrangements, can be influenced by any of the dimensions, but they are most often influenced by factors in the schedule, technical, and context dimensions. ⢠Method 4, Prepare Early Cost Model and Finance Plan, is likely to be guided by factors in the cost and financing dimensions. ⢠Method 5, Develop Project Action Plans, responds to factors typically defined within the context dimension, but the method can be affected by the scheduleâs dimension. After analyzing and mapping the nature of complexity, the project team must define critical success factors (Method 1). This step serves to communicate project goals, set team priorities, and guide resource allocation decisions (Methods 2, 3, and 4). Project Complexity Example: I-405 in Portland, Oregon This highwayâs 40-plus-year-old concrete pavement carries 125,000 vehicles per day. It has been ground down to the reinforcing steel by studded snow tires. Not only is this road in an urban area with very heavy commuter traffic but it also needs 26 bridges and overpasses to be raised to meet current FHWA clearance requirements. Raising these structures will cause a ripple effect on the arterial and collector streets that connect with I-405 inter- changes, raising their grades as well. In at least one case, the grade of the street will literally be raised to nearly the second floor of a building that fronts it. The situation is further complicated by the need to lower, relocate, or lower and relocate an unusually large number of utilities that crisscross the project limits. In fact, the engineering is less complex than the context in which the reconstruction must take place. Highly sophis- ticated project management procedures will be required to complete this complex project. FHWA (2005)
39 Chapter 2: USING THE 5DPM PLANNING FRAMEWORK During complex-project management analysis and planning, the project team stays abreast of significant challenges that might impede project success (speed bumps) as well as absolute constraints that prevent using needed innovations to achieve suc- cess (roadblocks). The end of the analysis and planning effort is project action plans (Method 5) to overcome speed bumps and roadblocks to project success (the critical success factors evolving from complexity analysis). If, for example, the coordination of several schedule milestones is a source of complexity, accurate scheduling is a critical success factor for the project. After defining critical success factors, the project team needs to identify the required human resources (Method 2, Assemble Project Team), develop the critical administra- tive resources (Method 3, Select Project Arrangements), and determine the financial resources (Method 4, Prepare Early Cost Model and Finance Plan) that are necessary to meet the critical success factors defined using Method 1. Methods 2, 3, and 4 occur in parallel and are not independent activities. Admin- istrative, human, and financial resources are interdependent, so these three methods must be integrated. At the completion of Methods 1 through 4, the project team should identify any remaining weaknesses or threats to project success and develop project action plans to eliminate or mitigate these threats (Method 5). For instance, if alternative project delivery methods are not allowed by statute but the project team determines when using Method 3 that project success is dependent on the use of designâbuild contracts, the team should develop a project action plan to introduce enabling legislation or executive orders allowing the use of designâbuild for the project. Similarly, if coordination with utilities or railroads or acquisition of ROW poses a continuing threat to project success, the team needs to develop a project action plan to address that situation. Note that not all project action plans are targeted toward legislative or executive actions. Any stakeholder from the context dimension could be the target of a project action plan intended to improve communication, educate stakeholders, and increase the probability of project success.
