re SPRING 2013 aviatio Isight ad aalysis to help create sustaiable value from aviatio assets I this editio: Preparig for Chia The positives from the airport moitorig report Smartgate the quiet revolutio Flyig projects ito to the groud
aviatio Welcome to our irst editio of ReThic Aviatio, where we share the latest isight, treds ad aalysis from the sector to help you create sustaiable value from your aviatio assets. I this editio we cosider the rapid growth of Chia s upper middle-class, the impact their icreasig appetite for air travel will have o the idustry, ad how Australia operators ca prepare to capitalise o the major growth opportuities. We the look at the positives from the ACCI s recet Airport Moitorig Report, which above all highlights the sigiicat growth we are seeig i air travel across Australia. We the aalyse how iovative operators are usig SmartGate techology strategically to: reduce passeger cogestio; improve border security; ad optimise commercial reveues. Our ial article looks at why projects fail, cosiders the importace of relatioships to successful outcomes ad proposes a ew four poit pla to create high performace project team eviromets to esure aviatio projects do t ly ito the groud. You will otice that our irst article is writte with Caspar Baum from EC Harris ad I am delighted to aouce that Thic ad EC Harris have etered ito a strategic alliace to deliver better outcomes for their cliets across Asia Paciic. EC Harris is a global built asset cosultacy that specialises i helpig cliets i a broad rage of market sectors to maximise the retur they see from their ivestmet ad expediture o real estate ad ifrastructure assets. Operatig as part of the ARCADIS group, they have access to approximately 22,000 professioals worldwide, icludig 4,000 people withi the Asia-Paciic market based i almost 50 ofices across the wider regio. To date, more tha oe billio passegers have passed through airports that EC Harris is workig with. This relatioship is particularly excitig as our aviatio cliets ca ow access a wide rage of sector experts with skills at all stages of the asset lifecycle. Fially, I am pleased to itroduce Paul Byre to the team. Paul has ladmark, iteratioal aviatio ad rail sector experiece, havig previously worked for the Hog Kog Airport Authority o the plaig, desig ad costructio of the New Hog Kog Iteratioal Airport. He also led cosultacy Louis Berger Group s aviatio subsidiary ad has worked o some of the world s most icoic airport ad rail projects, icludig Joh F Keedy Iteratioal Airport ad the rebuildig of the World Trade Cetre i New York. I hope you ejoy this editio ad if you have ay questios or commets the please do ot hesitate to cotact me. David Hudso Aviatio Sector Lead Thic dhudso@thic.com.au Preparig for Chia Chia s growig appetite for travel as a result of the accumulatio of wealth o the mailad will be oe of the biggest game-chagers for the aviatio idustry i the comig years. Just 15 millio outboud trips are made from the mailad every year ow, that igure will grow to 200 millio by 2030. Joh Slosar, Chief Executive at Cathay Paciic Chia s middle class is curretly estimated to be aywhere from 300 millio to 400 millio people. The upper-middle class segmet see as the mai driver of future ecoomic growth is growig rapidly, with a recet McKisey 1 report predictig that it will accout for circa 54 percet of urba households by 2022, up from just 14 percet i 2012. The emergece of a rapidly growig upper middle-class with aspiratios to travel, record levels of urbaisatio, ad cotiued growth i busiess ad trade activity is creatig a pressig eed for better aviatio ifrastructure across Chia ad presets major opportuities for iteratioal airport operators. Whilst luxury Europea cities typically top the most desirable destiatios list for Chiese travellers, Australia is also a major draw. Its relative proximity to Chia ad a weakeig dollar mea that it is becomig icreasigly attractive. This emergig tred is supported by Deloitte s recet Australia Tourism ad Hotel Market Outlook 2, which shows that iteratioal visitor arrivals grew 4.9% over the year to March, largely led by the emergig Asia ecoomies ad i particular Chia, which accouted for more tha a third of total growth i visitor arrival. The report also predicts that more tha two thirds of growth i the ext three years will come from Asia, mostly from Chia. The Chiese Five-Year Pla The Chiese govermet has recogised this tred ad withi its twelfth Five-Year Pla has made a commitmet to further developig core iteratioal hub airports, with truk routes ad secodary regioal airports across the coutry. I total, Chia s Civil Aviatio Authority is expected to commit aroud $4.25 trillio withi this Five-Year Pla, a icrease of 50% compared with the previous oe. However, as we approach the mid-poit of the curret Five- Year Pla, relatively little of this developmet has take place. This meas that over the ext three years, there eeds to be a sigiicat acceleratio i terms of developig ew airports if the govermet wishes to deliver o the visio it set out withi the maifesto.
The Australia respose As the Chiese Govermet starts to ramp up its aviatio capacity, Australia airport operators also eed to act quickly to prepare for the likely icrease i Chiese travellers ad esure their airports are attractive propositios for Chiese airlies ad travellers alike. We recommed that operators focus o the followig key areas to eable them to capitalise o the sigiicat growth opportuities: 1. Develop a relatioship with a secod or eve third tier city airport Followig the explosive growth of Chia s tier oe cities over the last decade or so, the ew growth areas are the major cities i Chia s west ad orth, the so called secod ad third tier cities like Chogqig ad Chegdu. These cities are still massive o a global scale, for example the populatio of Chogqig is circa 30 millio, comfortably more tha the etire populatio of Australia. McKisey s recet research highlights the shiftig wealth from the tier oe cities: I 2002, 40 percet of Chia s relatively small urba middle class lived i the four Tier-oe cities: Beijig, Shaghai, Guagzhou, ad Shezhe. By 2022, the share of those megacities will probably fall to about 16 percet. These secod ad third cities typically have major airports, risig demad for air travel ad a regioal airlie. We recommed that Australia airport operators quickly seek to parter with a regioal Chiese airport (or airports) to take advatage of the predicted ecoomic growth ad associated growth i air travel. These relatioships should also help Australia irms access ad feel more comfortable dealig with some of the lesser kow markets i Chia, as there icreasigly busiess opportuities with these cities. For example, we uderstad that Naig i the Guaxi provice is icreasigly lookig to trade i metals, miig ad mierals with some of Australia s biggest busiesses. 2. Collaborate effectively with airlies Oce a successful alliace has bee agreed with a growth airport, sigiicat time ad resource should be ivested i developig a effective workig relatioship with the airport s respective airlie. We have see the rapid growth of Chia Souther i recet times ad this is likely to be replicated with other Chiese airlies. I a excellet article, Teo Chi Leog, Assistat Vice Presidet at Chagi Airports Iteratioal, recetly idetiied the top thigs that airlies wat from airports, which operators have a strog iluece over. 3 These were cosidered to be: Security ad safety Network plaig support busiess case, plaig support etc. Reasoable airport-related operatig costs Support to lobby govermets for suficiet trafic rights to ly ecoomically viable services This last poit is crucially importat ad will require sigiicat effort from operators. Sydey Airport faces major challeges aroud its curfew for example. 3. Kow your customer By 2015, barrig uforesee evets, more tha oe-third of the moey spet aroud the world o high-ed bags, shoes, watches, jewellery, ad ready-to-wear clothig will come from Chiese cosumers. Mckisey & Compay (2013). Optimisig the retail mix to meet the growig demad for luxury products amogst Chia s middle class is ow key. It might soud obvious but uderstadig what makes Chiese cosumers tick before you desig ad build or redevelop a asset, is crucial. A key irst step is to idetify who the key target cosumer groups will be, ad esure they are placed at the heart of the asset developmet ad asset maagemet strategies. Ay assumptios made aroud what those cosumers wat from a retail experiece must also be uderpied by hard data that pipoits what their key drivers are i terms of attractig them ad covicig them to sped oce there. The importace of applyig data-drive assumptios caot be uderestimated; these allow operators to limit cojecture ad be more coidet i their ability to maximise icome streams. It also eables operators to make smarter decisios aroud teat mix, asset desig, marketig strategy ad sales performace. Securig access to the right type ad quality of data ca be a challege as may of the usual idicators quickly become dated due to the pace of evolutio. However, if you kow where to look there is still suficiet iformatio available both withi the wider market ad the retail eviromet itself. The biggest challege ofte comes i iterpretig it correctly ad buildig a strategy that ca deliver a commercially successful asset. If you get it right, the opportuities are sigiicat i the micro-ecoomies geerated. Lodo s Heathrow Airport, for example, grossed over 2 billio i sales for 2011, a 8.8% icrease from the year before. Durig this same time, British high street shops reveue icreased by oly 1.3%. 4. Address the commuicatios challege Perhaps the most obvious but the most importat issue to get right is to commuicate effectively with Chiese cosumers whe they arrive ad depart from termials. A recet study has show that the biggest segmet of the travel market i Chia will soo be self-orgaised travel, rather tha tour groups. Whe this tred is combied with the fact that the level of Eglish of travellers from Tier 2 ad Tier 3 cities is typically slightly lower tha people who live o the East Coast or Beijig, the eed becomes eve greater. Sigage, aoucemets, ad adverts i Madari should all be cosidered. However, care is eeded. The growth i the umber of Chiese travellers to Europe over the last decade has show that some typical phrases ad terms do ot traslate directly ito Madari. Uless operators successfully address this issue, it ca oly serve to icrease the cultural gap eve further. We have already see a icreasig umber of Madari speakig retail assistats across the Australia airport etwork ad this is a good iitial step, but we predict operators will eed to start workig more closely with advertisers, airlies ad retailers to get icreasigly sophisticated to meet Chiese cosumer commuicatio eeds. David Hudso Aviatio Sector Lead - Thic dhudso@thic.com.au David has over 16 years idustry experiece plaig ad implemetig complicated works icludig over seve years specialisig i the delivery of aviatio ifrastructure. He has worked closely with Brisbae Airport Corporatio for a umber of years, leadig a team o its major ifrastructure upgrade program. He is curretly workig with Virgi Australia o its louge refurbishmet program ad is also leadig the commissio to redevelop the iteratioal termial at Nadi Airport i Fiji. Caspar Baum Head of Aviatio, Asia Paciic - EC Harris caspar.baum@echarris.com A excitig outlook Whether it s buildig a ew airport or expadig a existig asset, operators eed to have absolute clarity o the type of airport they eed to create. This visio must be based o robust busiess plaig that is achored aroud cocrete evidece o the light mix ad the type ad volume of passegers the airport will serve. Isight is crucial, as it impacts so may other elemets of the airport s overall busiess strategy, icludig stakeholder modellig ad the approach take with regards to cocessios, retail, airlie mix, routes served ad the future expasio strategy. Caspar is a seior airport developer with over 23 years experiece i the idustry, ecompassig a rage of projects from ew build airport facilities, optimisig existig facilities ad operatios as well as preparig airports for special evets such as the Olympic Games. Educated as a professioal architect his focus is o airport termial facilities icludig master plaig, sizig, facility space programs, processig ad performace requiremets. He curretly leads EC Harris aviatio sector i Asia Paciic ad has worked with cliets icludig: Suvarabhumi Airport Bagkok, Sigapore s Chagi Airport, Subag Airport Kuala Lumpur ad Dubai Iteratioal Airport. 1 Mappig Chia s middle class, McKisey Quarterly, Jue 2013, Domiic Barto, Yougag Che, ad Amy Ji 2 Half yearly update, Tourism ad Hotel Market Outlook, Deloitte, July 2013 3 Fosterig Airlie Airport Collaboratio to grow aviatio trafic, Chagi World, Issue 1 2013, Teo Chi Leog It is also vital to esurig the asset ca respod to predicted future growth. With icreased umbers of travellers both i Australia ad abroad, the demad beig placed o all types of ifrastructure will cotiue to rise. This is true i particular for ew-build assets, which meas optimisig the desig so that phased expasio ca take place withi a fully fuctioig asset as ad whe demad rises. To get this right, operators eed a log-term master-pla based o robust trafic forecastig that details whe exactly itervetios will be required ad the light type ad proile of passeger that will eed to be served. The rage of issues that are likely to play out withi Chia s aviatio sector over the ext decade ad their impact o iteratioal airport hubs, make it a fasciatig area. By proactively maagig the developmet ad expasio plas of Australia airports ad actig o isight, there will be suficiet opportuity to capitalise o Chia s growig aviatio eeds.
The Positives from the Airport Moitorig Report The Australia Competitio ad Cosumer Commissio (ACCC) recetly released its Airport Moitorig Report for 2011-12. The aual report aalyses the performace of Adelaide, Brisbae, Melboure, Perth ad Sydey Airports ad provides iformatio o: Price chages for services provided to airlies (aeroautical charges such as aircraft ladig ad parkig charges) ad to cosumers (car parkig charges) Reveues, costs ad proits, ad Quality of service idicators derived from airlies, passegers ad border agecies qualitative surveys ad other idicators from quatitative measures. For those outside the idustry, the headlies from the ACCC s report were fairly shockig: service quality across all airports decreased i 2011-12 ad o airport achieved a overall ratig of at least good for the irst time sice 2007-08. The media pouced o these egative idigs, but there is a silver-liig to the report. The mai reaso service quality has falle is due to the icreasig umber of people who are lyig. We have see strog domestic demad, particularly from ly i ly out passegers ad icreased iteratioal passegers, as Australia remais a attractive tourist destiatio. Capacity is the root cause of the service quality problems ad the report whilst clearly challegig the idustry to ivest - also shows that aviatio is a growth sector ad oe that is crucial to Australia s ecoomy. A good problem to have I may respects capacity is a good problem to have. I simple ecoomic terms, supply is strugglig to keep up with demad ad that is a situatio that may idustries aroud the world would love to have, especially i this day ad age. What s more, the report shows that aeroautical reveues grew at all moitored airports (except for Adelaide) ad there is o doubt that the idustry has the skills to solve the curret capacity problems ad thereby improve service quality. The solutio is i our hads. What is clear, is that we eed to move quickly as Australia airports are ot keepig up with their iteratioal rivals. The recet World Airport Awards raks the top 100 global airports. The awards are voted for by airport customers from aroud the world ad this year the survey garered 12.1 millio resposes. Australia does t have a airport i the top 20, with Brisbae the highest at 21, risig from 34th place the previous year. Clearly somethig eeds to be doe to gai groud o iteratioal rivals ad improve service quality to serve a icreasigly mobile ad growig populatio. The solutio aviatio I most cases, robust asset maagemet plas ad clear programs of work are already i place. The simple aswer is therefore to brig capital ivestmet programs forward ad work collaboratively to share best practice ad explore iovative ways to create additioal capacity. It is also vital that operators ad airlies alike ow esure every As a idustry we eed to work collaboratively ad rapidly to tackle the capacity challege head o. dollar spet o airport ifrastructure delivers tagible beeits to the passeger. Far greater emphasis should be placed o busiess cases ad it is essetial that clear asset strategies are i place to esure that the ifrastructure ad systems that are beig developed are maaged eficietly ad effectively. Focusig o the iitial ivestmet without lookig at the log term cost of prevetative ad corrective maiteace is o loger viable. Iovative operators across the coutry are also lookig at adoptig approaches to improve eficiecy, optimise assets, maximise retail space ad create sustaiable value over the medium to log term for their stakeholders. The big three Paul Byre Natioal Director of Ifrastructure - Thic pbyre@thic.com.au The three biggest airports i terms of passeger umbers are Sydey, Melboure ad Brisbae. If we look at these airports idividually, it is positive that Melboure has ambitious expasio plas i place, which should dramatically improve capacity ad service quality. We are workig closely with Brisbae Airport Corporatio, which remais the highest rakig moitored airport, o its major ivestmet program ad there is o doubt the ivestmet will help it to become oe of the world s best. The airport with the biggest challeges remais Sydey Airport. Commetig o the report, ACCC Chairma Rod Sims said: overall, Sydey Airport is perhaps of greatest cocer give the patter of price ad earigs icreases, lower service stadards ad low ivestmet levels compared with other airports. It is cocerig that Sydey Airport has bee cosistetly rated lowest amog the moitored airports for overall quality of service sice 2006 07 ad with other airports lookig to quickly expad, there is every chace that Sydey will lose groud to its rivals. The debate about the secod airport i Sydey rumbles o but could be the catalyst eeded to icrease capacity ad ecourage competitio to improve service quality. However, politicias caot make up their mids ad are cotiually dodgig the real issue about addig capacity quickly. It is ecouragig that our idustry is havig a geuie debate o the matter. Airlies, operators, trade associatios, ecoomic istitutios ad cosultats have all pitched ito the discussio which ca oly be healthy, but what is missig is real leadership ad directio from a political party to grasp the opportuity ad make aviatio a policy cetrepiece to provide a route to ecoomic growth. Oppositio to a secod airport i Sydey is partly built aroud evirometal cocers that come udoe uder closer examiatio. Aircraft today ca travel a additioal 20km circlig i the skies above waitig for a ladig slot to become available. Expadig capacity will reduce this cogestio ad the time spet taxiig o the groud, eablig airlies to operate more eficietly ad to drastically reduce associated oise ad air emissio levels. Local politics have also had a disproportioately egative impact o the debate particularly whe it comes to oise pollutio. I reality greater capacity will allow Sydey to miimise oise levels by offerig greater lexibility to use airspace to mitigate these issues. We wait with baited breath for the outcome of this debate. The time to act Paul Byre is Natioal Director for Ifrastructure at Thic. He has extesive expertise i the aviatio ad rail sectors, havig led a departmet for the Hog Kog Airport Authority, where he was resposible for deliverig billio dollar programs at the ew airport durig the plaig, fudig, desig, leasig, costructio ad operatioal readiess stages. Paul also directed the ifrastructure subsidiary at cosultacy Louis Berger Group, where he led major airport expasio programs ad rail projects i The Americas, Asia ad Middle East, icludig the Joh F. Keedy Iteratioal Airport PPP rail lie to Mahatta, New York. As a idustry we eed to work collaboratively ad rapidly to tackle the capacity challege head o. Aviatio is a driver of ecoomic growth, so we eed to share best practice ad iovate to improve service quality to meet future growth. The time to act, is ow.
aviatio SMARTGATE The Quiet Revolutio 3. Optimise commercial reveues The more people who pass through a airport, the greater the opportuity for commercial parters. Iovative airports are progressively embracig the use of SmartGate to optimise commercial reveues for their parters by maximisig traveller time i retail areas ad smoothig trasitio times. The future of SmartGate Thik strategically about the positioig of SmartGate precicts - although the uits are extremely high-tech, they do t require high-tech supportig systems - the techology is self-cotaied ad require oly the footprit, data ad power o istallatio. Cosider the beeits from a marketig ad bradig perspective geeratio Y icreasigly expect techology to improve their customer experiece ad look favourably where it does. SmartGate is a Automated Border Cotrol (ABC) system that uses facial recogitio techology to verify idetity. The iitial prototype was desiged i 2002 by the Australia Customs ad Border Protectio Service (ACBPS) i cojuctio with its techology parters. Followig sigiicat testig, the irst uits were istalled i Brisbae Airport i 2007. Sice the SmartGate has bee rolled out to all other major Australia Iteratioal Airports. SmartGate is a two-step process. Firstly, a traveller iserts a epassport ito a kiosk ad makes some simple declaratios. A ticket is produced, collected by the traveller who the proceeds to a gate where they isert the ticket ito the gate. The system the compares the passeger s face with their epassport photo (usig biometric algorithms) ad if there is a match they ca pass through to the baggage hall. The beeits of SmartGate are sigiicat ad sice their itroductio, they have bee widely embraced by airport operators across the coutry. The major beeits iclude: 1. Reduced passeger cogestio The latest igures from the Australia Competitio ad Cosumer Commissio s aual Airport Moitorig Report for 2011-12 showed growth i passeger umbers across all major airports. Tourism Research Australia forecasts show that by 2020 iteratioal traveller umbers are expected to grow to over 8 millio, up from circa 6 millio i 2012/13. With more A380 aircraft comig o stream every day, ad total volume of travellers predicted to hit 40 millio per year by 2018, processig the icreasig umber of people who will be arrivig ad departig will be crucial to providig a quality service ad creatig value for all stakeholders ivolved. The major airports have sigiicat developmet ad expasio plas i place to try ad meet the expected growth ad these programs will be crucial to meetig the capacity challege. The strategic use of SmartGate is aother part of the puzzle ad represets a cost-effective tool to streamlie throughput ad effectively maage passeger lows to reduce cogestio. 2. Improvig border security With a icreasigly global ecoomy ad the ever-preset threat of terrorism, ehaced border protectio is crucial. The SmartGate ABC system maitais the existig high stadard of border protectio, whilst freeig up persoel to focus o highrisk travellers ad ehace border protectio. Idetity fraud is a growig tred ad to combat it coutries aroud the world are icreasigly movig towards epassports with microchips. Usig epassports, SmartGate improves idetity veriicatio ad therefore represets a sigiicat deterret to usig forged or stole passports. Thic has bee workig with the Australia Customs ad Border Protectio Service (ACBPS) to istall SmartGates across Australia s airports sice 2007. We have see the trasitio from trials i quiet corers of the Immigratio Customs Hall to their strategic developmet as a itegral compoet of airport operatios. From our uique experiece, we recommed that airport operators: Look at the medium to log term horizo the better itegrated SmartGate precicts are with your master pla, the more effective they will be as a value-addig capability. Work i partership with ACBPS to create the optimum solutio for your customers ad commercial parters this may iclude providig additioal fuctioal areas or joit fudig arragemets to maximise developmet outputs. David Lee Seior Cosultat - Aviatio - Thic dlee@thic.com.au David is a Seior Cosultat with sigiicat aviatio sector experiece. He has worked with Australia Customs ad Border Protectio Services sice 2007 to istall, improve ad expad SmartGate baks. Most recetly he has bee workig o strategic SmartGate projects i Sydey ad Melboure. His particular areas of expertise iclude: developig fudig models, busiess case developmet, stakeholder maagemet, desig co-ordiatio ad works co-ordiatio. Whe compared with typical aviatio projects, the istallatio of SmartGate requires miimal ivestmet, but ca have a massive impact, improvig outcomes for all stakeholders. Airlies strogly support SmartGate as they help speed up the passeger process ad therefore reduce tur-aroud times; retailers strogly support SmartGate as they maximise traveller time i louges; airport operators strogly support SmartGate as they improve the passeger experiece, ad provide beeits to other stakeholders; ad ACBPS support SmartGate as they offer a secure, eficiet ad fast way to pass through border cotrol. Above all, they esure travellers sped less time queuig ad therefore help improve the perceptio of service quality a key area for improvemet, as highlighted i the Airport Moitorig Report. SmartGate is startig a quiet revolutio across our airports ad operators should use them strategically to create sustaiable value for all stakeholders.
aviatio Flyig projects ito the groud Megaprojects worth more tha $1billio are failig at a staggerig rate of 65% ad projects worth less tha $500 millio are failig at a rate of 35% 4. A project has cosidered to have failed if: The schedule slips, costs are overru, or the project overspeds by more tha 25% The project is delayed by more tha 50% There are severe ad cotiuig operatioal problems ito year two of the project Costructio disputes are also o the icrease, with the direct cost of resolvig disputes i Australia high ad risig. Recet estimates suggest disputes cost the idustry betwee $560 ad $840 millio per year. These are worryig treds for the idustry, but what s at their root cause? There are a umber of cotributig factors - ot least the global ecoomic slowdow ad more cofrotatioal tederig practices - but we believe there is somethig deeper that the idustry has ot effectively maaged for too log, the impact of huma relatioships o project success. Why do projects fail? It almost souds too simple, but it is widely recogised that projects geerally fail because of huma behaviours, ot techical issues: By ad large projects are ot drive to failure by a lack of techical kowledge but by project behaviours that may be reasoably aticipated. Project failure to meet objectives ca be preveted by elimiatio or mitigatio of the root causes. These causes are o-techical i ature. 5 However, ulike other idustries that have realised the cotributio of huma factors i relatio to team performace, safety ad success, the costructio idustry still has ot achieved this realisatio with respect to team performace i project delivery. Take the airlie idustry for example. Followig a spate of fatal accidets i the 80s ad 90s, research showed that the majority of accidets were ultimately caused by a lack of commuicatio or egative team dyamics i the cockpit. I respose, the idustry embraced a cocept called Crew Resource Maagemet (CRM) ad has subsequetly udergoe a major trasformatio. Crew Resource Maagemet emerged from a workshop at NASA i 1979, whe it foud that the primary cause of most aviatio accidets was huma error. CRM is ot cocered with the techical kowledge ad skills required to operate equipmet, but rather with the cogitive ad iterpersoal skills eeded to maage resources withi a orgaised system. CRM aims to foster a culture where the freedom to respectfully questio authority is ecouraged ad commuicatio ad relatioships are proactively maaged. I the airlie idustry, air crew are ow checked o their ability to apply CRM priciples, just as they are i the ability to maage a aircraft. The costructio idustry eeds to ially recogise the importace of o-techical factors o project success ad effectively maage them to reduce project failure ad improve outcomes. The ield of forces: I ay edeavour there are dyamics that impact outcomes - Kurt Lewi referred to these factors as a ield of forces. A crucial aspect is how the dyamics impact ad iteract with each other ad how this chai reactio impacts performace. I the project cotext, we believe there are three domiat groups of forces that iteract with the project eviromet ad iluece project deliverables ad outcomes techical, sociological ad psychological forces (see igure oe). Project forces - the team dyamics process model The existece of these dyamics ad their iteractio ca be a serious risk to project delivery. Just as risks i techical areas of a project lie dormat ad are effectively maaged through plaig, sociological ad psychological (or relatioship) risks also have the potetial to impact project success - ofte with devastatig results ad should be plaed for. Uderstadig these dimesios, how they iteract i the project eviromet cotext ad adoptig a plaed approach to mitigate them, will dramatically reduce project risk. However, despite the evidece, relatioship risks are rarely maaged as: they are outside the gambit of hard egieerig ; they are misuderstood by techical specialists; ad traditioal processes adopted previously have bee ustructured ad ieffective. A four poit pla to create a high performace team To overcome these commo myths, ad create a collaborative, high performace eviromet, we recommed adoptig a structured approach to maage relatioship risks ad create high performig teams. The pla should be grouded i project reality, with a scope, schedule, budget, deied objectives, risks ad key performace idicators (KPIs). This is particularly importat for aviatio sector projects, which typically have a high umber of stakeholders. We suggest a simple but robust four poit pla: 1. Pla for success create a project visio ad agree objectives; deie roles ad resposibilities; create goverace ad decisio-makig structures; idetify the cultures & values of your team; ad deie the most appropriate procuremet model. 2. Team Buildig/Developmet udertake a plaed, risk-based, collaborative approach to preparig a relatioship maagemet pla that idetiies relatioal risks. Build ad agree processes aroud differet leadership abilities ad commuicatio styles withi the team. Graham Scott Seior Cosultat - Thic gscott@thic.com.au Psychological Persoality Idividual Value Metal Wellbeig Stress Emotioal Itelligece Ego Project Eviromet Sociological Commuicatios Coflict Maagemet Group Processes Issues Resolutio Team Values Assumptios Techical Desig Programme Costructio Risk Maagemet Egieerig Project Systems Procuremet Safety 4 Klaver, Ali. December/Jauary 2012. Speed Kills. Project Maager Magazie (AIPM). 5 Hayde W. April 2004, 4 61 71 Huma systems Egieerig, A Trilogy, Part 1. Elephat i the Livig Room. Leadership ad Maagemet i Egieerig. Culture Geography Time Pressure Budget Ameity Resources Role Defiitio Politics Goverace Media Cotracted Framework Leadership Market Ifluece Society 3. Coachig & cotrol follow a structured process to esure performace agaist relatioship maagemet pla KPIs ad use coachig to maitai team motivatio, promote effective commuicatio ad to eradicate iappropriate behaviours, such as itimidatio. 4. Close out coduct a lessos leared workshop to assess the team s performace; evaluate the processes followed; idetify positive ad egative attributes ad implemet a actio pla to improve future project performace. Coclusio Graham Scott is a seior cosultat with Thic. Armed with a Masters i Orgaisatioal Psychology, he has over 25 years idustry experiece as a team coach, developig high performace teams i project eviromets. Graham has worked o both public ad private sector projects ad is also a lecturer with the Queeslad Uiversity of Techology. Figure oe: Project forces - the team dyamics process model Commuicatio, effective relatioships ad team work have a major impact o project success ad ca be quatiied, qualiied, moitored ad cotrolled. The medical ad shippig idustries are adoptig similar approaches to CRM i aviatio ad the costructio sector eeds to follow suit particularly o complex projects to create high performace, collaborative teams ad improve project outcomes.
About Us Our aviatio team has a prove track record of successfully advisig o ad deliverig major aviatio, ifrastructure ad commercial it-out projects across Australia. aviatio We are regarded as trusted advisers, havig delivered umerous world-class projects for repeat cliets icludig the Australia Defece Force, Brisbae Airport Corporatio, the Australia Customs ad Border Protectio Service ad the Departmet of Foreig Affairs ad Trade. Our lastig relatioships with these, ad other major cliets, have bee forged through cosistet delivery of quality facilities o time ad o budget, ad the rigorous maagemet of risk ad safety. We provide high-performace specialist aviatio teams, wherever they are eeded to address our cliet s speciic project requiremets. Our team boasts a extesive skill set derived from experiece o diverse multi-discipliary aviatio projects. A particular stregth is tacklig the complex challeges associated with the plaig ad delivery of large-scale airport redevelopmets, where may of our persoel brig iteratioal experiece. With our global aviatio parter, EC Harris, we are uiquely positioed to advise cliets o how to best create sustaiable value aroud all aspects of the aviatio asset lifecycle. www.thic.com.au