Managing Risk for Successful Capital Projects Thursday, August 10, 2017
Agenda 1. Pre-Planning 2. Initiation & Planning How to add 3. Execution certainty o Design o Construction o Occupancy 4 . Project Closure 2 Colliers Project Leaders 2016
Why Us? Carolyn Clubine Former Administrator and Director of LTC with Peel Region. The Region of Peel serves a population of 1.4 million residents in urban, suburban and small town environments. Peel operates 5 LTC Homes and on site CSS. • LTC and CSS operations experience • Facility design lead • Small projects Project Manager • Large projects sponsor • Governance council liaison • Renovation/redevelopment/new construction Carolyn is currently supporting a range of not for profit agencies that serve the aging population, offering management and project support. She holds a Fellowship with the Canadian College of Health Leaders and is on the faculty of the Administrator Leadership Program that AdvantAge Ontario hosts each year. 3 Colliers Project Leaders 2016
Why Us? Colliers Project Leaders • Established in 1989 (as MHPM Project Managers) • 400 employees in 25 offices across Canada • Specialize in building projects and accommodation plans o Development Solutions (Business Cases, Feasibility Studies, Options Analysis) o Planning & Programming o Project Management o Furniture & Equipment Planning and Procurement o Transition Planning, Move Management • 10,000 capital projects to draw upon; best practices & lessons learned 4 Colliers Project Leaders 2016
Poll What roles are represented in today's webinar? a. Administration incl. Finance, QI, Risk b. Architect c. Project Manager d. Building or Facility Manager e. Clinical or Support Services Manager 5 Colliers Project Leaders 2016
Definitions of Risk A project risk is a future event which may or may not occur. A project issue is being managed in the present. • The effect of uncertainty on objectives (ISO 31000) • Any event that may endanger achieving an objective partly or completely • Uncertainty which is present in all projects 6 Colliers Project Leaders 2016
PRE-PLANNING PHASE
Risks in the Pre-Planning Phase Business Case Assumptions Top 3 Shortcomings: 1. Lack of Risk Analysis (including contingencies) 2. Inadequate Long-Term Costs, eg. maintenance & renewal 3. Comprehensiveness of Costs, eg. approx. 20% for project ancillary costs 8 Colliers Project Leaders 2016
Stories from the Trenches…… • The LTC Home was 236 beds. It was decided to renovate the building and reduce to 142 beds • This called for a phased approach to allow for concurrent operations and extensive construction. • Phase 1 required that the Home reduce from 236 to 120 prior to commencement of site work. • Admissions were ceased one year ahead of start date • Reduction was not achieved • Site work was delayed 4 weeks which incurred schedule delays http://www.peelregion.ca/ltc/sheridan/index.htm 9 Colliers Project Leaders 2016
Risks in the Pre-Planning Phase • Retrofit vs. New Build • Site Selection Decisions Due diligence – expert advice/consultants o o Size o Site Services o Building Layout and Operational Implications • Construction Model • Phasing, revenue implications • Procurement & contracts 10 Colliers Project Leaders 2016
Stories from the Trenches…… • Building Condition Audit raised red flags • Invasive assessment of the current core building showed that remediation of failing elements would not be money well spent • Internal decision reached that the building should not be renovated, but replaced. • Council decision was required, and this raised the discussion of whether to continue to operate • Sensitivity to misunderstandings (staff fear of job loss, and resident fear of closing) had to be carefully mitigated through a Communications strategy • http://www.peelregion.ca/ltc/peel/index.htm 11 Colliers Project Leaders 2016
Poll In your regular operations what is your greatest vulnerability a. HR b. Supply chain c. Utilities d. Neighbours/Community e. Press 12 Colliers Project Leaders 2016
Risks in the Pre-Planning Phase Programming • Doing things the same way – not looking at processes and LEAN opportunities • Achieving your goals and addressing your challenges – defining solutions! • “Get your house in order” • IT as an enabler 13 Colliers Project Leaders 2016
Stories from the Trenches……. NEW LTC Home - Design of workflow from a clean slate • Supplies located throughout the building – create a cage in basement to create a delivery system • Laundry pickup in utility rooms – create a chute system • Elevators shared by all – built a “back of house” service elevator • Wired all rooms for IT cable – but never used due to the rapid development of wifi http:// www.peelregion.ca/ltc/malton/index.htm 14 Colliers Project Leaders 2016
Risks in the Pre-Planning Phase • Transition strategy required • Change management required 15 Colliers Project Leaders 2016
Stories from the Trenches……. Small 26 bed Nursing Home was being closed • Residents were in “D” like conditions with no private space and shared toilet facilities • Staff unfamiliar with typical LTC buildings/resources/ workflow • With additional licenses it was replaced with a new 64 bed • Change management planning was exhaustive! • Work Routines were written and practiced • Resident relocation was staged to account for psychological impact of open space, available choices http://www.peelregion.ca/ltc/davis/index.htm 16 Colliers Project Leaders 2016
Poll In thinking about your redevelopment plan what is your greatest concern? a. financing b. managing the demands in addition to operations c. stakeholders d. procurement e. contractor relations 17 Colliers Project Leaders 2016
INITIATION & PLANNING PHASE
Risk Management Plan – Roles & Responsibilities Who is the lead? • Internal (Project Sponsor, CFO, Risk Manager) • External (Colliers PM for Valley Manor) Who is on the Risk Management Team? • Project Manager • Architect • Engineers • Contractor • CFO • Plant Operations/Home’s Engineer • Clinical Operations representative • IT • Procurement 19 Colliers Project Leaders 2016
Risk Management Plan What are their responsibilities? Project Architect/ Comm. General Plant Exec. Clinical IT Procure Manager Engineers Agent Con- Oper. Rep -ment tractor Mger Planning X X Identify X X X X X X X X X Qualify X X As X X X X needed Quantify X X As X X X needed Plan X X As X X X X X Responses needed Monitor & X X As X Control needed 20 Colliers Project Leaders 2016
Risk Management Plan – Analysis Probability! Impact! 21 Colliers Project Leaders 2016
Risk Management Certain Likelihood Rare Insignificant Catastrophic Consequences 22 Colliers Project Leaders 2016
Risk Management Plan Risk Register 23 Colliers Project Leaders 2016
Poll Is it easier for you to identify your risks or is it easier to plan the mitigation once you know what the risks are a. identify risks b. plan the mitigation 24 Colliers Project Leaders 2016
Lack of Project Structure & Controls • Set up the Project Structure o Governance, management involvement Staff Committees o Family, Resident & Community Involvement • Continuity & succession planning • Set up the Project Controls & Tools including………. o Baseline schedule o Baseline budget o Initial risk register & actions to mitigate, eliminate or avoid risks Monthly updates & reporting…… o 25 Colliers Project Leaders 2016
Poll How many staff in your senior management group will play a direct role in the project execution? a. 1 b. 2 to 4 c. 5 or more 26 Colliers Project Leaders 2016
Role Clarification for your Stakeholders Project Element: ______________ Activity : _____________________ Communication about commencing this work: _____________________ Name/Position Responsible Accountable Consulted Informed Notes Executive Director Management Staff Service staff Board Clients and caregivers Others External Partners 27 Colliers Project Leaders 2016
Initiation & Planning Scope Project Charter – an Important Tool • Clear definitions – understood and agreed upon • What will success mean? • Project Sponsor/Authority • Organizational Structure • Project policies and procedures • Roles & Responsibilities Budget • Schedule (Milestones) • Assumptions • How will Fixtures, Furniture & Equipment be handled? 28 Colliers Project Leaders 2016
Carolyn’s Project Charter Template 29 Colliers Project Leaders 2016
Initiation & Planning Scope Scope Creep! Strategies • Project Charter – clear definition of scope • Use a Change Request Form; Change Tracking Log • Define protocols & authority levels • Tracking and monitoring changes 30 Colliers Project Leaders 2016
EXECUTION PHASE - DESIGN
Risk Management Plan - Timing • Iterative • Monthly updates • Add time sensitive triggers to the project schedule! 32 Colliers Project Leaders 2016
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