Guide to Project Management Strategies for Complex Projects (2013)

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40 3.1 INTRODUCTION Managing modern complex renewal projects demands that the cost, schedule, tech- nical, context, and fi nancing dimensions are addressed in the planning process. The complex-project management team gains a fi rmer understanding of the nature, scope, and dynamic interaction of complexity factors by examining the factors that create complexity in each of the fi ve dimensions. After analyzing the sources of complexity, the team rates each dimension to facilitate the proper allocation of resources. Complexity mapping provides a useful visualization technique for quickly representing the scope, nature, and skew of project complexity. The 5DPM conceptualization process forms the basis of the fi ve project planning and analysis methods that every complex-project manager can use (Figure 3.1). These methods demand executive-level involvement to support project-level per- sonnel at the very earliest stages of the project life cycle. The analysis, planning, and implementation methods also help project leaders identify which project management tools will add value to the complex-project management plan. Planning Method 1 involves identifying critical success factors that act as a road- map to allocate human (Method 2), administrative (Method 3), and fi nancial (Method 4) resources to the project. The planning and resource allocation methods are repre- sented in the guide as separate activities, but they are actually highly integrated activi- ties that should be performed in parallel. Any remaining barriers to success or critical resource constraints are addressed through specifi c project action plans (Method 5). The fi ve methods are highly inte- grated and are developed through an iterative process early in the project life cycle. Once complete, the 5DPM methods are used to identify project management tools that can be used to achieve critical project success factors. 3 USING THE 5DPM METHODS

41 Chapter 3: USING THE 5DPM METHODS Readiness Assessments Some 5DPM methods and tools might be new to your agency yet potentially powerful to improve your capability to manage any given complex project. At the same time, an existing method or tool that you use may be equivalent or superior to one of the 5DPM methods or tools. We include a brief question with multiple-choice answers for each of the five methods in this chapter to help you quickly assess the competency or maturity level of your organization in using each of the methods on any given project. These quick assessments may help you to identify your risk in implementing any particular tool on a project and to determine additional resources and organizational changes to consider in addition to use of this guide, as outlined in Section 2.2 (Assess- ing 5DPM Readiness). Figure 3.1. Overview of the process fo m r using the ethods. five project planning and analysis Figure 3.1. Overview of the process for using the five project planning and analysis methods.

42 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS 3.2 METHOD 1: DEFINE CRITICAL PROJECT SUCCESS FACTORS Overview Use Method 1 to identify the critical success factors for all complex projects. This step is the most important aspect of managing complex projects successfully, because it literally sets the basis for making decisions throughout the project life cycle, as shown in Figure 3.2. The dynamic interaction among project management dimensions and complex- ity factors can create confusion and misunderstanding among project team members. In addition, a high level of scope uncertainty generally exists for complex projects. Finally, complex projects often involve a high degree of irregularity for which industry and agency standards and project manager experience may not be available to help guide decisions. Identifying and ranking complexity factors provides useful guidance in defining critical success factors for the project. Figure 3.2. Relationship of Method 1 to the entire 5DPM process.Figure 3.2. Relationship of Method 1 to the entire 5DPM process.

43 Chapter 3: USING THE 5DPM METHODS Critical project success factors typically comprise both subjective and objective inputs. The Saskatoon Green Streets project provides a good example of both. The city council decided it wanted to have the “greenest streets in Canada,” which was a very subjective factor and one that enjoyed widespread public acceptance. A task force of government, academia, and industry representatives was convened to develop an action plan to achieve this lofty aspiration. Their work created an objective goal to recycle a minimum of 70% of the materials removed during demolition of existing pavements. The inputs to define critical project success factors require you to identify any leg- islative and political directives, gather input from agency and project leaders, estimate project resource requirements and determine if they are currently available, assess community needs and influence over project feasibility, and determine project charac- teristics. These inputs can then be used to define critical success factors in each of the five dimensions of the 5DPM model, as shown in Figure 3.3. Method 1 Case Study Example: The Saskatoon Green Streets Project The City Council of Saskatoon, Saskatchewan, made a decision to maximize the amount of material that was recycled in its street rehabilitation program. The city’s challenging weather conditions, varying subgrade composi- tion, and groundwater tables made adding the technical complexity of exceeding the accepted pavement design with recycled asphalt and concrete very risky. Given that the decision had been made and public opinion was very much in favor of the council’s Green Streets initiative, the solution became to develop and execute a new project delivery method called design–supply–build, in which the designer was required to assume the risk of the quality of the recycled materials by supplying them to the construction contractor. The result was savings of $1.8 million on material costs, a compressed delivery period, and a 50% to 70% energy savings due to the reduction in transport given that more than 70% of the material was eventually recycled. This project demonstrated the manner in which Method 1 was used to identify critical success factors in the technical, context, and schedule dimensions.

44 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS The process in Saskatoon led the participants to choose Tool 1, incentivize critical project outcomes, to develop a design–supply–build delivery method by permitting the designer to make a profit by actually supplying the materials to offset the material- quality risk. The participants also chose Tool 10, establish flexible design criteria, by mandating only that the maximum amount of material be recycled instead of selecting an arbitrary percentage such as 90%. Both tools were key to the achievement of the critical success factor for sustainability. In defining the critical project success factors, the word critical is important. The number of success factors should be relatively low, probably in the range of seven to 10 factors. If project success comes to include everything desired by everyone, the factors will not serve to guide project decisions and actions. However, it is important to real- ize that project success has different meanings to each stakeholder (Jacobs Engineering Group, Inc., et al. 2009) and, therefore, the definition of success should be considered from a broad perspective. Figure 3.3. Method 1 inputs and actions. Figure 3.3. Method 1 inputs and actions.

45 Chapter 3: USING THE 5DPM METHODS After defining the critical project success factors, the team selects project manage- ment tools (Chapter 4) to facilitate the achievement of project success. For instance, on a multimodal center, two of the tools selected might be evaluate flexible financing (Tool 11) and establish public involvement plans (Tool 13). It is important to once again note that using Method 1 to define critical project success factors is intended to establish higher-order success factors than those typically formalized in a project mission statement or project charter, although they should all (obviously) be related. The critical success factors defined by using Method 1 should be broad enough to synthesize into a set of principles that are widely published in newsletters, websites, project signs, and so forth. A checklist like the one shown in the survey in Appendix B may be used to facilitate Method 1. Method 1 Case Study Example: New Mississippi River Bridge Project One of the priorities for the New Mississippi River Bridge team for the bridge between St. Louis, Missouri, and East St. Louis, Illinois, was an effort to ensure that the community continued to stay informed and involved in the project. To do that, the team established different avenues to gather input from the public, as well as different methods for the community to stay connected to the project and discover what was happening. The community was kept aware of the special appropriations and their expiration dates, and the risks of delay were explained clearly. As a result of the open and ongoing dialogue, the project team was able to establish critical success factors for the project that enjoyed wide support among internal and external partners. Method 1 Case Study Example: Transportation Expansion Project The Transportation Expansion (T-REX) project in Metro Denver, Colorado, gathered inputs from several stakeholders, including elected political leaders, local and regional community groups, end users and operators, and design and construction industry leaders. As a result, the team was able to prioritize project outcomes to clearly communicate a relatively small number of critical project success factors. The critical success factors were used to focus the project management team’s attention on the use of specific tools, such as colocation and use of the earned-value or resource-loaded critical path method, which facilitated project success.

46 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Method 1 should be started after complexity mapping and before resource allo- cation (Methods 2 through 4) and project action planning (Method 5) are finalized. Specific outcomes of Method 1 assist in identifying the appropriate project manage- ment tools. The inputs to Method 1 are identified in complexity mapping and analyzing con- straints and interactions. As shown with the example in Figure 3.4, common inputs are political and legislative directives, agency and project leadership opinions, avail- able project resources, community needs, and project characteristics. These inputs are shown in the figure, and their associated complexity dimensions are highlighted. These inputs are likely to appear on most complex projects, but other inputs may be identified in the complexity mapping process. The inputs are used to identify critical success factors, which are in turn used to achieve consensus on measurable outcomes. The team can use the critical success factors and measurable outcomes as one set of issues to consider when selecting project management tools (Chapter 4). Figure 3.4. Method 1 sample inputs and outputs for defining critical project success factors. Figure 3.4. M thod 1 sample inputs and outputs for defining it ical project success factors.

47 Chapter 3: USING THE 5DPM METHODS Readiness to Define Critical Project Success Factors How does your organization identify critical success factors (political and legislative issues, available resources, project characteristics, and others) of complex projects in the project planning and scoping and programming phases? o We do not identify critical success factors in the planning or scoping and program- ming phases (novice). o The project team may use its own judgment on an ad hoc basis or hire a subject matter expert (above novice). o The project team is supposed to define critical success factors, but the process is not well defined and may vary from project to project (in between with buy-in). o We have a standard and documented process or tool in defining critical project success factors that can be used in the planning or scoping and programming phases (some maturity or experience). o In addition to Item 4 above, we have a system for the feedback and lessons learned by collecting relevant information after the project is completed to continuously improve the process (mature or experienced). Table 2.2 (in Section 2.2) provides recommendations, depending on your answer. Where to Learn More About Defining Critical Project Success Factors The following resources are available for more in-depth information about defining critical project success factors: • NCHRP Report 331: Strategic Planning and Management Guidelines for Trans- portation Agencies. 1990. • NCHRP 20-24(63): Partnership Approaches to Identify, Promote, and Implement Congestion Management Strategies. 2009. • NCHRP Web-Only Document 137: Guidance for Transportation Project Man- agement. 2009. • Twenty-First Century Leadership and Management Techniques for State DOTs, 1st ed. AASHTO, 2009. • 2006 CEO Leadership Forum: Advancing Practice in State DOTs from Good to Great: A Summary Report. AASHTO, 2007. • Partnering: A Key Tool for Improving Project Delivery in the Field. Course Num- ber FHWA-NHI-134060. • Leap Not Creep: Accelerating Innovation Implementation. Course Number FHWA-NHI-134073. • Public Involvement in the Transportation Decisionmaking Process. Course Num- ber FHWA-NHI-142036.

48 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS 3.3 METHOD 2: ASSEMBLE PROJECT TEAM Overview The project team is the driver of the project, and selection of the appropriate people at the appropriate time is important in delivering a complex project successfully. Having the right people is important, but empowering them with the authority they need to execute their responsibilities effectively is also important. Inputs to consider come from the complexity analysis and mapping and critical success factors identified using Method 1. Additional inputs are obtained from the resource allocation decisions made in parallel when applying Methods 3 and 4. The inputs are used to identify the critical skill sets required for project success. Once these skill sets are ascertained, the project team can assess internal capabilities and determine any gaps in required and existing skills. You will use this gap analysis for the procurement plan described in Method 3, given that any gaps in required skill or knowledge need to be added to the team through contracts or other project arrange- ments, as shown in Figure 3.5. Figure 3.5. Inputs and outputs for assembling project teams.Figure 3.5. Inputs and outputs for assembling project teams.

49 Chapter 3: USING THE 5DPM METHODS Method 2 is essentially a gap analysis, in which project needs are identified in terms of skills, knowledge, responsibility, and authority and compared then to in- house resources and capabilities. The next step is to assign authority, responsibility, and leadership and determine external sources for additional required skills (e.g., other agency personnel, contractors, designers, and consultants). The project team must then clearly assign risks and responsibilities for critical project outcomes. Finally, and perhaps most important, the project team must establish authentic authority for project decisions, including written support from top agency leaders. The outcomes of Method 2 are first to identify core in-house team responsibilities and establish authority and then identify additional team resources to add through exter- nal project arrangements. Responsibilities for procuring external resources to fill the gaps found using Method 2 need to be clearly identified, and the team should discuss the timing for when the project will need these additional external resources. After this step, the team can select the project management tools that support project success. Method 2 Case Study Example: I-95 New Haven Harbor Crossing Corridor Improvement The I-95 New Haven Harbor Crossing Corridor team in New Haven, Connecticut, was relocated to a building near the project site. This location included people in planning, design, construction, and program management organi- zations. This change meant creating a special Connecticut DOT district office just for this multimodal project. Method 2 Case Study Example: Northern Gateway Toll Road The Northern Gateway Alliance was formed by Transit New Zealand in 2004 to design, manage, and construct the Northern Gateway Toll Road. Eight organizations make up the alliance, and each member plays a critical role in ensuring an innovative, efficient, and cost-effective project. Within the alliance, experts such as engineering consultants and specialized contractors deliver services ranging from tunneling to large-span bridge engineering and construction. Forming alliances allowed for the creation of a project team that had the complementary skills and knowledge needed to complete the project successfully.

50 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Readiness to Assemble Project Team How does your organization assess in-house capabilities (critical skill sets, knowledge, and resources) and responsibilities to determine the necessity for external resources that may be required in the planning, scoping and programming, preliminary engineer- ing, and final engineering phases of project development? o We do not consider in any particular phase (novice). o The project team may use its own judgment on an ad hoc basis or hire a subject matter expert (above novice). o The project team is supposed to assess in-house capabilities, responsibilities, and needs for external resources, but the process is not well defined and may vary from project to project (in between with buy-in). o We have a standard and documented process or tool in assessing in-house ca- pabilities, responsibilities, and needs for external resources (some maturity or experience). o In addition to Item 4 above, we have a system for the feedback and lessons learned by collecting relevant information after the project is completed to continuously improve the process (mature or experienced). Table 2.2 (in Section 2.2) provides recommendations, depending on your answer. Where to Learn More About Assembling Project Teams The following resources are available for more in-depth information about assembling project teams: • NCHRP Web Document 39: Managing Change in State Departments of Trans- portation. Scan 7 of 8: Innovations in Public Partnering and Relationship Building in State DOTs. 2001. • NCHRP 20-24(14)B: Innovations in Partnering and Relationship Building in State DOTs. 2001. • NCHRP 20-24(22): Best Practices in Partnering with Public Resource Agencies. 2003. • Alternative Organizational Designs for State Transportation Departments. AASHTO, 2008. • AASHTO Guide for Consulting Contracting, 1st ed. AASHTO, 2008. • A Transportation Executive’s Guide to Organizational Improvement, 1st ed. AASHTO, 2007. • Alternative Organizational Design Processes in State Departments of Transporta- tion, 1st ed. AASHTO, 2009. • Partnering: A Key Tool for Improving Project Delivery in the Field. Course Num- ber FHWA-NHI-134060.

51 Chapter 3: USING THE 5DPM METHODS 3.4 METHOD 3: SELECT PROJECT ARRANGEMENTS Overview After identifying project success factors, the planning for required administrative re- sources (procurement and contracting for services) can be started. The most likely starting place for this planning is Method 3, Select Project Arrangements, which should be part of a deliberate project management plan based on the critical project success factors and integrated with other resource allocation methods (Method 2, Assemble Project Team, and Method 4, Prepare Early Cost Model and Finance Plan). Method 3, one of three resource allocation methods in 5DPM, is intended to help the project team to identify administrative resources (primarily procurement processes and project delivery methods) that are best suited to the project and most likely to facilitate project success. Figure 3.6 shows the inputs and outputs for Method 3. Figure 3.6. Inputs and outputs for selecting project arrangements based on critical factors.Figure 3.6. Inputs and outputs for selecting project arrangements based on critical fac tors.

52 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Inputs to consider come from the complexity analysis and map and critical success factors identified using Method 1. Additional inputs are obtained from the resource allocation decisions made concurrently using Methods 2 and 4. The inputs are used to develop an overall procurement plan for the services (e.g., public relations, specialty consulting, financing, design, construction) to achieve proj- ect success. The inputs are also considered in packaging services into project-specific delivery methods such as design–build (DB), construction manager–general contractor, design–supply–build, design–build–operate–transfer, and public–private partnerships (PPPs). The goal of Method 3 is to identify interagency agreements, authority transfers, temporary assignments, resource sharing, contracting, bundling, and other arrange- ments for bringing needed skills to the team in a timely and cost-effective manner. Once the service packages that best support project success are defined, specific con- tracts and administrative systems can be developed. Method 3 Case Study Example: I-595 Corridor The Florida DOT sought a way to deliver the I-595 Corridor project within their budget limitation (critical success factor). This project was the first of its kind in the United States delivered with a design–build–finance–operate– maintain method. This method was particularly attractive to the Florida DOT because the financing was made avail- able for the entire project life cycle, thus speeding up the project schedule. Method 3 Case Study Example: Lewis and Clark Bridge The deck replacement project team for the Lewis and Clark Bridge (spanning the Columbia River between Washington and Oregon) included incentive provisions for early completion in the bid packages it prepared to control cost and schedule. The incentive contract was new to the Washington State DOT, which added complexity to the project. The project team selected incentive contracts with early completion provisions because their major concern was local com- munity satisfaction (critical success factor). By using the incentive contract, the project team could minimize traffic impacts to the public.

53 Chapter 3: USING THE 5DPM METHODS The outcomes of Method 3 are as follows: • Procurement plan (what we need, who we need it from, when we need it, and how much it will cost); • Delivery methods (what goods and services we will bundle, as in DB, design– build–operate, PPP); • Other project arrangements (interagency, utilities, railroads, authority transfers, funding) that are required to achieve project success; and • Selection of project management tools that support project success. Readiness to Select Project Arrangements How does your organization identify required administrative resources (procurement process and delivery methods) to facilitate project success in the scoping and program- ming, preliminary engineering, and final engineering phases of project development? o We do not consider in any particular phase (novice). o The project team may use its own judgment or hire a subject matter expert (above novice). o The project team is supposed to determine project procurement process and de- livery methods, but the process is not well defined and may vary from project to project (in between with buy-in) o We have a standard and documented process or tool in determining project pro- curement process and delivery methods (some maturity or experience). o In addition to Item 4 above, we have a system for the feedback and lessons learned by collecting relevant information after the project is completed to continuously improve the process (mature or experienced). Table 2.2 (in Section 2.2) provides recommendations, depending on your answer. Where to Learn More About Selecting Project Arrangements The following resources are available for more in-depth information about selecting contract and delivery methods on the basis of project outcomes: • NCHRP Report 451: Guidelines for Warranty, Multi-Parameter, and Best Value Contracting. 2000. • NCHRP Report 699: Guidelines for the Use of Pavement Warranties on Highway Construction Projects. 2011. • NCHRP 10-85: A Guidebook for Construction Manager-at-Risk Contracting for Highway Projects. 2011. • NCHRP Web Document 39: Managing Change in State Departments of Trans- portation. Scan 7 of 8: Innovations in Public–Public Partnering and Relationship Building in State DOTs. 2001.

54 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS • NCHRP 20-24(14)B: Innovations in Partnering and Relationship Building in State DOTs. 2001. • NCHRP Web Document 30: Managing Change in State Departments of Transpor- tation. Scan 2 of 8: Innovations in Private Involvement in Project Delivery. 2001. • NCHRP 20-24(22): Best Practices in Partnering with Public Resource Agencies. 2003. • NCHRP 20-24(43): Research Program Design—Administration of Highways and Transportation Agencies. Innovative Contracting for Major Transportation Projects. 2005. • NCHRP 20-24(63): Partnership Approaches to Identify, Promote, and Implement Congestion Management Strategies. 2009. • NCHRP Report 662: Accelerating Transportation Project and Program Delivery: Conception to Completion. 2010. • NCHRP Research Results Digest 179: Financing Highway Improvements Through Public and Private Partnerships. 1991. • Effective Program Delivery in a Constrained Fiscal Environment. AASHTO, 2009. • AASHTO Design-Build Procurement Guide, 1st ed. 2008. • AASHTO Guide for Consulting Contracting, 1st ed. 2008. • AASHTO Partnering Handbook, 1st ed. 2005. • Accelerating Project Delivery: It’s About Time, 1st ed. AASHTO, 2006. • Alternative Contracting. Course Number FHWA-NHI-134058. • FHWA Role in Public-Private Partnerships. Course Number FHWA-NHI-310116. 3.5 METHOD 4: PREPARE EARLY COST MODEL AND FINANCE PLAN Overview Understanding the financial model, where the funding is coming from, the sources of expenditures, and the limitations placed on design and context flexibility imposed by available funding is important to project success.

55 Chapter 3: USING THE 5DPM METHODS Inputs to consider come from the complexity analysis mapping and critical suc- cess factors identified using Method 1. Additional inputs come from resource alloca- tion decisions made concurrently using Methods 2 and 3 and are used to identify all sources of funding that are currently available, as well as the relative certainty of their availability for use on the project. The next step is to compare the available funding to the expected cost and scope of the project. If the available resources are sufficient, the project team can incorporate the funding flows into the procurement plan and develop a relatively straightforward cost model by using standard project management tools, such as resource-loaded criti- cal path method schedules, earned-value analysis, or cash balance‒linked project draw schedules. However, if available project funding is insufficient, then the project team must look for additional external funding sources, adjust the project scope, develop a phased approach to fit available funds, or employ a combination of those actions. The outcomes of Method 4 are a cost model for the project, a list of secure identified funding sources, positive or negative differences in fund balance, and a funding plan, as well as selection of project management tools that support project success, as shown in Figure 3.7. Method 4 Case Study Example: North Carolina Tollway The North Carolina Turnpike Authority developed an early cost and finance plan that incorporated both construc- tion costs and life-cycle costs to determine what could be delivered. This information was used to obtain bond funding for the project. To help with the market rating on the bond market, the team was able to get legislative action whereby the North Carolina DOT agreed to pay for any cost overruns. The cost and finance plans are monitored by the North Carolina Turnpike Authority continually by requiring the design-builder to develop and maintain cost-loaded critical path method schedules. These schedules are examined by the authority, which requires that no activity cost more than $500,000.

56 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Figure 3.7. Inputs and outputs for preparing early cost model and finance plan.Figure 3.7. Inputs and outputs for preparing early cost model and finance plan. A variety of funding sources are available, from more traditional options of taxes and fees to more innovative options of public–private finance or asset lease, as shown in Figure 3.8 by approximate year of introduction. Other less traditional options, such as artistic grants and commodity exchanges, are seen with some projects.

57 Chapter 3: USING THE 5DPM METHODS Figure 3.8. Two potential financing options for surface transportation projects. HOT = high-occupancy toll; VMT = vehicle Figure 3.8. Two potential financing options for surface transportation projects. HOT = high-occupancy toll; VMT = vehicle miles traveled; AC = advance construction; PCAC = partial conversion of advance construction; GARVEE = grant anticipation revenue vehicle; PAB = private activity bond; SIB = state infrastructure bank; TIFIA = Transportation Infrastructure Finance and Innovation Act; and BAB = Build America bond. Method 4 Case Study Example: Hudson-Bergen Light Rail Transit System The Hudson-Bergen Light Rail Transit System in New Jersey started as a traditional design–bid–build project. In 1994, it was determined that by using the traditional approach, the first operating segment would not be in service until 2005 because of funding constraints and other considerations. Because of these concerns, New Jersey Transit decided to use the design–build–operate–maintain approach for project delivery. The development of a finance plan and cost model allowed the project team to seek other sources of funds to make the project viable.

58 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Readiness to Prepare Early Cost Model and Finance Plan How does your organization compare the available funding and additional external funding and financing sources to the expected cost and scope of the project in the scop- ing and programming and preliminary engineering phases of project development? o We do not consider in any particular phase (novice). o The project team may use its own judgment on an ad hoc basis or hire a subject matter expert (above novice). o The project team is supposed to prepare the early cost model and finance plan, but the process is not well defined and may vary from project to project (in between with buy-in). o We have a standard and documented process or tool in preparing the early cost model and finance plan (some maturity or experience). o In addition to Item 4 above, we have a system for the feedback and lessons learned by collecting relevant information after the project is completed to continuously improve the process (mature or experienced). Table 2.2 (in Section 2.2) provides recommendations, depending on your answer. Where to Learn More About Preparing Early Cost Models and Finance Plans The following resources are available for more in-depth information about preparing an early cost model and finance plan: • NCHRP 8-57: Improved Framework and Tools for Highway Pricing Decisions. 2009. • NCHRP 20-24(13): Innovative Financing Clearinghouse. 2002. • NCHRP 20-24(14)H: Innovative Finance. 2001. • NCHRP 20-24(26)A: Finance Trends—Trends in Non-Federal Funding and Debt. 2002. • NCHRP 20-24(26)B: Trends in Non-Federal Funding and Debt. 2002. • NCHRP 20-24(51)C: State DOT Funding and Finance. 2006. • NCHRP 20-24(55): National Summit on Future Transportation Funding and Finance Strategies: States and Metropolitan Regions. 2008. • NCHRP 20-24(62): Communications Strategies to Increase Understanding of Funding and Revenue Needs for the Nation’s Transportation System. 2010. • Innovative Transportation Financing: A Report on the Results of a National Survey by the American Association of State Highway and Transportation Of- ficials. AASHTO, 1995. • Comparing State DOTs’ Construction Project Cost and Schedule Performance: 28 Best Practices from Nine States. AASHTO, 2007.

59 Chapter 3: USING THE 5DPM METHODS • Report on Long-Term Financing Needs for Surface Transportation. AASHTO, 2007. • Transportation—Invest in Our Future: Revenue Sources to Fund Transportation Needs. AASHTO, 2007. • Highway Program Financing. Course Number FHWA-NHI-152072. • Highway Program Financing—Executive Session. Course Number FHWA-NHI- 152072A. • FHWA Role in Public-Private Partnerships. Course Number FHWA-NHI-310116. 3.6 METHOD 5: DEVELOP PROJECT ACTION PLANS Overview Legislators, community stakeholders, utilities, railroads, and many other individuals and groups may play an important and influential role in a complex project, more so than in traditional projects. Understanding the extent of this influence and how to direct it in a positive manner is critical to project success. Method 5 Case Study Example: Capital Beltway The Capital Beltway project is a complex project in northern Virginia that consists of four high-occupancy vehicle or high-occupancy toll lanes of 14 mi, lane connections, construction or reconstruction of 11 interchanges, and replacement or improvements of more than 50 bridges. Because public expectations were high, the Virginia DOT developed a communications and outreach plan to main- tain public communication 24 hours a day, seven days a week on the project and guaranteed to respond at any time of the day. To build positive relations with the local community, the Virginia DOT sponsored and supported many civic events to help build and ensure trust. The Virginia DOT public information team was one of the largest in the state. Open, timely communication and a commitment to promises were the best response to political concerns or inquiries. Having a direct line to the secretary of transportation was effective in moving the project along and managing information for the sake of political involvement.

60 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Project action plans either target specific stakeholders (such as attempts to change restrictive legislation to allow innovation on a specific project) or can be general in nature (such as a public information and communication plan aimed at improving project support across a wide range of stakeholders). Inputs to consider come from the complexity analysis and mapping and critical success factors identified using Method 1. Additional inputs come from resource allo- cation decisions made using Methods 2, 3, and 4. Although Method 5 is labeled as the last method, as seen in Figure 2.1, developing and executing project action plans should happen throughout the project development phases. The team should start developing project action plans (Method 5) almost at project conception and continue doing so throughout project development as needed. Inputs are used to identify what can stop the project (constraints or roadblocks) versus what can slow the project (resource limitations or speed bumps). Most speed bumps are smoothed out using Methods 2 through 4 by identifying ways to over- come resource limitations. Roadblocks are structural barriers that require innovation to overcome, which is the objective of Method 5. Potential roadblocks and speed bumps include restrictive legislation, cooperation of utilities, right-of-way acquisition, expedited National Environmental Policy Act reviews, support of local community groups, and so forth. As a result of discussions and use of Methods 1 through 4, the project team should have a clear understanding of constraints within each of the complexity dimensions; the critical project success fac- tors; and how to assemble the project team, select project arrangements, and prepare the early cost model and finance plan. Again, the most complex dimension is analyzed first to determine the need for tar- geted project action plans, with subsequent dimensions analyzed in decreasing order of complexity. The goal of Method 5 is to develop innovative solutions to resolve (mitigate or reduce or remove or eliminate) constraints to project success, focusing on issues that cannot be resolved with existing systems, structures, practices, or resource allocations. Method 5 Case Study Example: Louisville–Southern Indiana Ohio River Bridges This project in Louisville, Kentucky, and southern Indiana was early in the final design stage when it was determined that the estimated project cost exceeded available funds. The project team held a series of meetings to determine if the project should be re-scoped to fit existing funding levels or if additional funds were needed (Method 4). Once a commitment was made to holding the original scope, the project team developed an action plan to identify additional funding sources. The bistate authority was charged with recommending changes to state laws and prac- tices that would create the flexibility needed to fund the project

61 Chapter 3: USING THE 5DPM METHODS Innovations using Method 5 can be administrative, contractual, technical, or methodological. The outcomes of Method 5 are a clear understanding of the influence of external stakeholders and plans for directing this influence positively to achieve project success, as well as targeted project action plans to overcome constraints (road- blocks) and limitations (speed bumps). As with all the planning and analysis methods, one of the outcomes of Method 5 is the selection of project management tools that support project success. In addition, Method 5 may result in potential iterations of Methods 1 through 4 if their outcomes can be improved as a result of targeted project action plans. Additional outcomes of Method 5 are a list of specific targeted action plan needs and an outline of the general project action plan. Table 3.1 (and Appendix D) provides a template that you may want to use. TABLE 3.1. DECISION PROCESS FOR DEFINING PROJECT ACTION PLANS Most Complex Least Complex Dimension Success factor Interactions Adequate resources? Can project succeed with typical systems (Y/N)? If No, a roadblock or speed bump exists Project action plan

62 GUIDE TO PROJECT MANAGEMENT STRATEGIES FOR COMPLEX PROJECTS Readiness to Develop Project Action Plans How does your organization develop project action plans to address resource issues and remove or reduce potential constraints and barriers in terms of administrative, contractual, technical, or methodological perspectives in the planning, scoping and programming, preliminary engineering, final engineering, and construction phases of project development? o We do not consider in any particular phase (novice). o The project team may use its own judgment on an ad hoc basis or hire a subject matter expert (above novice). o The project team is supposed to develop project action plans, but the process is not well defined and may vary from project to project (in between with buy-in). o We have a standard and documented process or tool in developing project action plans (some maturity or experience). o In addition to Item 4 above, we have a system for the feedback and lessons learned by collecting relevant information after the project is completed to continuously improve the process (mature or experienced). Table 2.2 (in Section 2.2) provides recommendations, depending on your answer. Where to Learn More About Developing Project Action Plans The following resources are available for more in-depth information about defining project action plans: • NCHRP 20-24(62): Communications Strategies to Increase Understanding of Funding and Revenue Needs for the Nation’s Transportation System. 2010. • NCHRP 20-24(14)B: Innovations in Partnering and Relationship Building in State DOTs. 2001. • NCHRP Web Document 39: Managing Change in State Departments of Trans- portation. Scan 7 of 8: Innovations in Public–Public Partnering and Relationship Building in State DOTs. 2001. • NCHRP 20-24(22): Best Practices in Partnering with Public Resource Agencies. 2003. • Federal-Aid 101 (FHWA Employee Session). Course Number FHWA-NHI-310109. • Federal-Aid 101, Highway Program Financing and Contract Administration. Course Number FHWA-NHI-310109A. • Federal-Aid Highways 101 (State Version). Course Number FHWA-NHI-310110. • Introducing Highway Federal-Aid. Course Number FHWA-NHI-310115. • Introducing Highway Federal-Aid. Course Number FHWA-NHI-310115W. • Public Involvement in the Transportation Decision-making Process. Course Number FHWA-NHI-142036. • Effective Communications in Public Involvement. Course Number FHWA- NHI-142059.