A proven process to prevent NPV erosion in capital project organizations
Great ideas.
Bold new initiatives.
The next big thing.
Every capital project executive I’ve ever worked with knows how it feels to be inundated with adamant and unrelenting advice on everything from hardware upgrades and software innovations to organization overhauls and workflow revisions. It is overwhelming, exhausting, and often confusing.
Unfortunately, many leaders fall into the trap of eternal transformation, undermining productivity with a ceaseless stream of organizational changes that require teams to retrain, reorganize, and refocus time and again. It’s a vicious cycle that can have disastrous consequences for an organization, and I’ve seen it play out far too many times. It is called initiative fatigue.
If all of this sounds familiar, you need a Predictability Blueprint ™.
Why project delivery systems matter
Before we dive into the Predictability Blueprint ™, I want to take a minute to establish the importance of project delivery systems. The structure and protocols that you set up around your capital construction work — your project delivery organization — is the engine that drives everything forward. It encompasses everything that sits between business and operations, and it’s absolutely essential that you get it right. Why? Because failure has a direct impact on your bottom line.
Research1 shows that Net Present Value (NPV) losses on capital projects typically stem from three factors:
1. The project sells for less than expected, aka lower sales;
2. The project produces less than expected, also called asset shortfalls; or
3. Project cost and schedule overruns.
Of these, the cost and schedule overruns typically lead to over 20% of NPV erosion. Simply put, this means that unpredictable, late, and over budget projects destroy value.
The solution? You must make project predictability a business mandate. Enter the Predictability Blueprint ™.
Put an end to endless change with the Predictability Blueprint™
Your Predictability Blueprint™ is not a new strategy or tactic that will destabilize your team and undermine productivity. Your Predictability Blueprint™ is a powerful, practical business tool that integrates and streamlines relevant initiatives, creates a clear and actionable roadmap, and delivers measurable progress toward your core business objectives.
We have prepared Predictability Blueprints™ in the mining, oil and gas, and green hydrogen sectors, and it has proven to be a sustainable investment for every single one. Even when the organization has a significant turnover in leadership, we have seen the Concord® Predictability Blueprint™ remain in place, trusted by new leadership, like a well-designed dashboard with a trusted GPS.
An overview of the Predictability Blueprint™
At Concord®, we know that the roadmap to predictable, on-time, on-budget project delivery will be different for every organization — yet there are principles that guide transformations.
Built collaboratively involving all relevant stakeholders, your unique blueprint will consolidate and organize all of your existing corporate improvement initiatives, Best Practices, ensure they are aligned with your business objectives, and provide a step-by-step guide to implementation. It will also set out a clear path to predictable project delivery, establishing the systems, processes, capabilities and objectives that will give your organization the capacity to deliver on-time and on-budget.
The Predictability Blueprint™ process begins with a multi-faceted maturity assessment of your project delivery system, during which we collect employee feedback via surveys, review your documentation and conduct one-on-one interviews with your key executives.
Next, we conduct collaborative, iterative workshops with your executive, operational and execution teams and experts. Together, we’ll walk through our proprietary mapping process, distilling the best practices and improvement initiatives that are underway in your organization and building out your blueprint.
Blueprint in hand, we then work with your team to identify the key components and establish targets for each of the items on the map (i.e. budget and goals). We consolidate all of this work in a single Predictability Blueprint™ and deliver that to you as a playbook that can guide your next steps for the next few years. Your team is then ready to work for the next 12-18 months, ensuring that your Predictability Blueprint™ is implemented in full with concrete results to the project delivery organization.
We Are Standing By to Help
If you are a capital project executive and you’re ready to get out of the transformation trap and build a blueprint to preserve the value of your project delivery organization, contact us today and we’ll get started on your Predictability Blueprint!™
