The design and structure of your project organization is a critical component for capital effectiveness. Effective organizations are designed around the work process to ensure that the necessary resources are developed in-house and deployed to projects. By comparing organizational data from different project organizations, we found that organizational attributes have their strongest effect on project practices (e.g., Front-End Loading [FEL]), which, in turn, have a dramatic effect on project outcomes. Thus, the key to Organizational Effectiveness is organizing your project organization so that Best Practices are used when implementing project practices.
To assess how effectively your project organization is at developing and implementing its capital projects, IPA has developed its Organizational Assessment tool. The tool can be applied to different types of project organizations, including central engineering, individual business units or regions, and/or individual sites.
We measure your Organizational Effectiveness against Best Practice and that of your competitors in Industry and provide recommendations for improving your Organizational Effectiveness. Specifically, the assessment provides metrics around three elements of Organizational Effectiveness:
Through our Organizational Assessment, your company leaders will gain a better understanding of the effectiveness of your project organization and its strengths and weaknesses. The Organizational Assessment provides you with valuable data to assist you in designing your project organization and shaping its path forward to better support your people and work processes for achieving capital project excellence.
To perform an Organizational Assessment, we gather data around your work process, organizational structure, and the personnel involved in your work process. We then compare that data against our Organizational Assessment Database.
IPA has developed a unique database of 50-plus project organizations from various industries worldwide. Our Organizational Assessment Database covers different types of organizations, from central engineering over individual business units to individual sites. This database includes organizational-level data, such as information on portfolios, personnel, work processes, and organizational structures.
To quantify the effect of organizational characteristics on project performance, we linked the organizational-level data to IPA’s Process Plants Database. Through quantitative analysis, we identified what organizational approach leads to better project results and what organizational elements are critical in designing a project organization.