Excellence Execution During Challenging Phase an Apple and Banana Principle

摘要

Will oil and gas operating companies or EPC industries attempt to invest in a new project in this difficult market situation,when they are not sure about the success of the projects due to high uncertainty of the market and changing priorities of the market? Any success of the organization/project expects business value such as measurable improvement to revenue,profits or net income,automation to improve productivity,new product release,reduce inventory costs or some other targeted outcome.Our paper delves into the interconnection between the above two statements.The Standish Group 2015 CHAOS Report(ref-1)states that,out of 50,000 projects in the study,71% failed to meet the major success factors viz:on time delivery,completion within budget,and satisfactory results.The problem is even worse for big projects.When 91% of Medium-sized projects failed,the failure for larger projects reached a whopping 94%.That is scary since PwC reported that capital projects and infrastructure spending between 2014 and 2020 could reach $29 trillion.Does this mean that $27 trillion is at some risk? That's crazy! Are we doing anything about this? This 71% failure rate reflects the expected outcome of all project including small,medium,and large.A project/organization that does not meet or exceed expected business value is considered as a failed project/organization.Our view of project success is relatively straightforward.If you do what you are asked to do as per the project scope,then you should be on time and on-budget.If you deliver what you have committed to deliver,then you should achieve or exceed the business value promised.Of course,this is in the assumption that the bid is made properly.Proper bidding is very important for the successful execution of the project up on award.Clear understanding of the scope,identifying the major risks if any,defining the execution strategy including the execution centers(100% local,100% overseas or blend of local and overseas execution centers)etc.are the important aspects that should be well thought of and defined in detail in the proposal submitted to client.An efficient hand over of the proposal to the execution team up on award should be done to ensure that the assumptions,execution strategy etc.are effectively communicated to the execution team.