Requisite EPCM

Requisite EPCM is an approach to ensure project people / managerial feasibility and deliver the maximum achievable project value at every stage of the project by setting up and controlling effective context for decision making in relation to critical project tasks.

It is important to remember one of the most critical project statistics: 47% unsuccessful projects are impacted by poor decision making.

Thus, the key question that any project manager, owner and sponsor should ask: are the right people with right capability are accountable for project tasks, project tasks and project as a whole?

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What is Requisite EPCM?

Requisite EPCM is a standard set of practices for identifying benefits and confirming their delivery as project implementation progresses and finishes. Further ensuring that benefits are sustainable - and sustained - after project implementation is complete.

Requisite EPCM enhances project benefits by ensuring people feasibility of Engineering, Procurement
and Construction Management EPC(M) contracts; from contract definition to contract handover using the principles of Requisite Organisation.

People Feasibility of EPCM means that project work is assigned to role-holders who are capable to deliver the project work of certain complexity successfully

Key Practices of Requisite EPCM

Identify benefits
Project
Definition

Requisite practices that
enable organisations to identify expected benefits and prepare for their implementation, including contractor definition

execute benefits
Project
Execution

Requisite practices that
enable organisations to deliver the expected benefits within the budget, time and with the quality required

sustain benefits
Project
Operationalization

Requisite practices that enable organisations to sustain benefits and achieve strategic objectives after the project’s completion

accept benefits
Project Relationship
management

Requisite practices that ensure acceptance of project benefits by all the stakeholders of a project

Identify Benefits – Project Definition

Objective: ensure that the employees with right level of capability are accountable for identifying the project benefits and planning their realisation

The largest (32%) contributor to project failures is poor estimation during the planning phase
Project
Issues

The study of 648 projects worldwide showed that three types of project definition risks identified cause harm to project delivery:

  • 46.9% of weeks were lost (revisions) due to poor scope of the project
  • 2seven.8% of weeks were lost (internal and external staffing, under-funding) due to poor resource planning
  • 25.3% of weeks were lost (project slippage, inadequate duration) due to poor scheduling
Project
Complexity

There are seven levels of project complexity:

  • Every level has a specific functional output of the change to be delivered by the project (improve process execution, change process, change the system, change multiple systems, etc.)
  • Every level of project complexity has specific benefits to be delivered
Project Manager
Capability

There are seven levels of project capability:

  • The manager accountable for the project must have the level of project capability that matches the level of project complexity
  • The manager of the project manager (Project Owner) must have the level of project capability that is one level higher than the level of project complexity
Project
Definition Risk

Frequent Project Definition Risk happens when

  1. The capability of project manager does not match project complexity
  2. The capability of project owner is not one level higher when project complexity
  3. Project Definition risk can cause the project under-scoped (scope risk), under-resourced (resource risk) and shortened completion time (schedule risk)

Deliver Benefits – Project Execution

Objective: ensure that the employees with right level of capability are accountable for executing projects tasks and delivering the project outputs

47% unsuccessful project executions are impacted by poor decision making
Project Role Complexity

There are seven levels of project role complexity:

  • Every project task are assigned to a certain role whose role holder is accountable for its successful execution
  • The complexity of a role are measured by the targeted completion time of the longest task or task sequence in a role
  • Every managerial role must be one level higher in complexity than its subordinate roles
Project People Capability

Seven levels of project people capability are measured based on:

  • Level of decision-making experience of an employee
  • Level of value & commitment of an employee
  • Compliance of an employee with project required behaviours
Project Execution Risk

Project Execution Risk happens when:

  • The level of Role complexity is higher than the level of project capability of a role holder (ineffective simplified decisions, failed task execution, burnout)
  • The level of Role complexity is lower than the level of project capability of a role holder (lack of control, lack of commitment, ineffective complicated decisions, failed
    tasks, bore out)

Project Execution – Contractor Management

Objective: ensure that the contractee company who owns the project work mitigates the loss of the project value from the work allocated to the contractor company

Contractor Work
Complexity

The company needs to evaluate the complexity of the project work and value allocated to an outside contractor:

  • The whole project can be allocated to the contractor
  • Or a part of the project
    There are a maximum of seven levels of project work complexity
Contract Owner:
Contractee Company

The Contractee Company needs to assign a designated contract owner with full contract ownership authority who is accountable for the project value delivered by the contractor

The role complexity level of a contract owner in a contractee company must be one level higher than the complexity of the project work contracted

Project Manager:
Contractor Company

Project Manager accountable in the contractor company for delivery of the contractor work must have the project capability level to match the complexity level of the contractor work:

  • Level of decision-making experience
  • Skilled knowledge
Project Team:
Contractor Company

The Contractee Company needs to ensure that:

  • Or the contractor company has practices in place to ensure the people feasibility of the project work
  • Or the project team assembled by the contractor company passed the project people feasibility assessment

Sustain Benefits – Project Operationalization

Objective: ensure that the changes delivered by the project (project team) are handed over to the employees of the right capability in the operations to sustain the benefits and realise project ROI and all the planned benefits

Only a fifth of projects are consistently delivering on their ROI and planned benefits
Change Standardisation

Changes delivered by the project (project team) must be standardised for the operations team to apply and embed the change consistently

The change must be incorporated in the following
elements:

  • Policy, procedures, standards, guidelines
  • Management operating system (Planning, control & monitoring, analysing, reporting)
  • Resourcing (finance, technical, information, labour demand)
  • Training (competency maps, training content)
  • Auditing (risk management, behaviour compliance)
Operations Organisation

The change delivered by the project must be handed over to the operations team effectively organised:

  • The complexity level of operations team must match the level of handover complexity
  • Project change is reflected in the change of role accountabilities
  • Project change is reflected in the change in horizontal working accountabilities and authorities
  • Project change is reflected in the change of felt fair pay
  • Project change is reflected in the change of work complexity
Operations People Capability

The change delivered by the project must be handed over to the operations team capable of sustaining the benefits:

  • The capability level of the manager of the operations team must match the level of handover complexity
  • The complexity level of work in the roles of the operations team must be matched with the capability level of role holders

The project change must be reflected in the change of:

  • Skilled knowledge required from the role holders
  • Decision making experience required from the role holders

Accept Benefits – Project Stakeholder Management

Project changes and benefits may impact the standard behaviours with key stakeholders, unbalance them, and lead to negative intention of stakeholders to comply with them.

Every company aspires to achieve positive and balanced relationships with their key stakeholders. Balanced Relationships Model is when all the stakeholders of the company have positive intention to support the project and accept the project’s benefits:

75% of project failures were attributed to poor communication with key project stakeholders
Balanced Relationship Management by “Trustworthy” Management
Trade Union

The company needs to set and develop the standard behaviours of “Partnering” Trade Union that, if manifested by Trade Union, will support the business objectives

Community

The company needs to set and develop the standard behaviours of “Supportive” Community that, if manifested by Community, will support the business objectives

Government

The company needs to set and develop the standard behaviours of “Collaborative” Government that, if manifested by Government, will support the business objectives

Employees

The company needs to set and develop the standard behaviours of “Engaging” Employees that, if manifested by Employees, will support the business objectives

Are you interested to find out:

  • how to assess the complexity levels of your projects
  • how to evaluate the capability levels of your project teams
  • how to assign an accountability for project tasks, project stages and projects to the people at right levels of project management capability
  • how to set up effective project management structures
  • how to operationalise and handover the project benefits
  • how to ensure positive support of a project’s stakeholders
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