Construction projects: learning from mistakes
Tackling the tough lessons
3 November 2016
The complex nature of construction projects means there will often be some kind of failure, but the trick is to learn from these mistakes and avoid repeating them in the future. Les Pickford reports
There are many reasons why projects fail – from poor project definitions and unstructured planning to ineffective communications and a lack of sound feasibility studies. Some organisations find it easy to identify their project problems, and even record these in some way; but others find it much harder to translate this knowledge into learning that can help future projects.
The working group that developed the RICS Lessons Learned guidance note represents a broad spectrum of organisations and locations. I asked them some questions about project failure, lessons learned and risk management. Their answers show some common thoughts about recording project knowledge and applying this on subsequent projects. What is your view, and how do you use your ‘corporate memory’ on new projects?
Rod Nathan: Commercial Manager, Crossrail, London, UK
Why do projects fail?
Projects fail for many reasons, from immaturity at commitment and the introduction of unfunded change to uncontrolled design development and having no idea about what ‘success’ looks like.
Why are project lessons not learned?
Einstein is reported to have said: “Insanity is doing the same thing over and over and expecting different results.” People ignore lessons learned because their project is ‘different’, but many projects are similar.
There is often no corporate memory available to project teams, which start afresh each time. Reporting problems is good, but without successful solutions future projects cannot learn. Consider the progress made in site safety; what could we achieve if we approached cost control with the same zeal?
What is the best way to record project knowledge?
Close-out reports are useful, but have to be comprehensive, while also allowing readers to find what they need easily. Networking between individuals or small groups can gather and transfer knowledge to new projects.
What is the best way to apply lessons learned to new projects?
Staff are often chosen for their experience, which is built on lessons learned. Those who are great at delivering projects contribute individual and corporate learning from their previous experiences.
Major projects have formal systems that are adapted to new situations. Refer to these on future projects to transfer knowledge. Use peer-group reviews with those from recent similar projects – individuals who worked at a detailed level, not just with the great and the good.
What is the link between lessons learned and risk management?
There is a reasoned reaction against using generic risks to form the backbone of a risk register. However, this is different from having a checklist of risks that have affected previous projects, which can act as an aide-memoire for a new project.
Piotr Rusinek: Operations Director, Arcadis, Warsaw, Poland
Why do projects fail?
The main factor that contributes to projects failing is communication, for example, misunderstanding client requirements, risk profile and so on. It also includes poor communication of project goals to the client team and subsequently the contractor – poorly prepared tender documentation can lead to contractor claims – and often poor people relationships, with each party working to achieve their own objectives rather than the project goals.
Why are project lessons not learned?
This happens for a number of reasons, such as people not wanting to own up to their own failures as they would rather communicate only their successes. Also, there is often no time for a proper debrief as the project team moves on to new projects or key staff leave the company.
What is the best way to record project knowledge?
We try to capture project knowledge in 3 ways: project debriefs with the client and team; internal knowledge sharing, such as in seminars at the end of the projects; and project start-up meetings, involving all members of the client team and consultants, to discuss openly what went right or wrong on similar projects in the past.
What is the best way to apply lessons learned to new projects?
Wherever possible, we try to mentor our key staff on new projects and/or ensure oversight by senior staff. The knowledge gained through project debriefs and the like should be captured in the risk register for the project.
Shuibo Zhang: Professor of International Construction Contracts, Tianjin University, China
Why do projects fail?
The biggest reason is the lack of a sound feasibility study. For some projects, a study is not intended to assess the feasibility of the project but to prove its feasibility, therefore leading to prior bias.
Why are project lessons not learned?
From an organisational perspective, summarising good and bad experience is not part of project performance evaluations. From an individual’s perspective, people tend to share success stories, not project failures.
What is the best way to record project knowledge?
The most effective way is to establish a forum for systematically summarising, sharing and learning the good and bad experiences from all participants as a part of the project close-out phase. All the ideas and opinions should be recorded formally as “organisational process assets”.
What is the best way to apply lessons learned to new projects?
These assets should be shared across the organisation and used as input for new projects, particularly at the planning stage. Industry-wide, professional institutions should collect and summarise project case studies and disseminate them as part of a body of knowledge.
What is the link between lessons learned and risk management?
Project lessons from a body of knowledge should inform risk management; that is, identifying and evaluating risks should be based on lessons from project histories. However, I am a little pessimistic about the prospects for this, as the only lesson we learn from history is that we seldom learn lessons from history.
William Francis: Property & Development Manager, Wesley Mission, Brisbane, Australia
Without appropriate planned gateways and well-structured decision-making, a project will go astray
Why do projects fail?
Projects fail, or are perceived to fail, as a result of poor or unstructured planning and bad analytical decision-making at project stages or gateways. Without appropriate planned gateways and well-structured decision-making, a project’s direction will always go astray and failure ensues.
Why are project lessons not learned?
Often, a project issues document is not used to record problems during the project’s life. Team members also often do not seek to learn lessons as they do not see this as part of their normal scope, or they believe that it is someone else’s responsibility (i.e. the project manager’s). Establishing a good team rapport and a clear definition of the scope of lessons learned work before appointments can help alleviate this issue.
What is the best way to record project knowledge?
A project plan, relevant to the project’s size, provides a structure and process to capture all project lessons, decisions, designs and so on.
What is the best way to apply lessons learned to new projects?
Use the lessons learned documents at the project’s inception. Do a workshop with all interested parties – not just those close to the project delivery, but peers and others outside the technical project sphere.
What is the link between lessons learned and risk management?
Risk management is about controlling uncertainty; lessons learned are an outcome of past uncertainty. If risk management is undertaken correctly, the uncertainty will be reduced and a springboard for further risks to be defined will be provided.
Peter Coombs: Associate Director, Aquenta, Perth, Australia
Why do projects fail?
Projects often commence without a robust definition or a plan that contains all dependencies. Risk registers also contain items that are undefined and/or not project-specific. Detailed resource programming is often not developed sufficiently early to enable challenges to be met. Projects are also often under-resourced.
Why are project lessons not learned?
Businesses do not want to be part of any failure, and blame other stakeholders or the project for being complex. Projects are often set up and run without any changes being made on the basis of lessons learned. Individuals involved throughout a project may also move on before formal close-out steps are taken.
What is the best way to record project knowledge?
This must happen from project inception to completion. Baseline and benchmark parameters must be taken at all stages and used to focus on continual improvement. A consistent team throughout a project is essential. Ownership of project success increases the desire to demonstrate improvements and implement learning.
What is the best way to apply lessons learned to new projects?
Lessons learned must be simple and have demonstrable benefits that are easily communicated. Major issues should be shared with other parts of the business, including removing the stigma associated with failure.
What is the link between lessons learned and risk management?
Lessons from previous projects should feed into the risk schedule on new projects. This should be used to ensure any additional steps or processes required are documented and appropriate time and timing is included for all stakeholders to understand. Generic risks should be avoided, key risks focused on and a mitigation strategy implemented.
Les Pickford is a freelance writer and editor
Further information
This feature is taken from the RICS Construction journal (September/October 2016).