How to Deliver a Successful Project Recovery Plan?

Do you ever feel like a project leader caught between a rock and a hard place?

You’re diligently leading your team, but deadlines seem to slip further and further out of reach.  Perhaps you’re working on a project with a completion date that’s planned for last year, with no clear path to closure in this year yet you are doing what is in your control to do.

Here’s the truth, this experience is far more common than you might think. Many organizations lack a crucial element for project success “a robust recovery plan” in their PMO governance.  This plan outlines steps to get a project back on track when it encounters roadblocks or unforeseen challenges.  Without a recovery plan, and a team mindset that embraces it, even well-managed projects can fall victim to schedule delays and budget overrun.

The important takeaway? Don’t shoulder the blame alone.  Focus on what you can control – your own leadership and execution – and advocate for the implementation of a recovery plan process within your organization.  This will benefit not just you and your current project, but future projects and project managers as well.

According to “Top Project Management Statistics for 2023: Trends and Insights” from proejctmanagemetnreport.com,

“For example, research by Project Management Institute shows 28% of projects are deemed failures based on them exceeding budget, timeline, or failing to meet goals. Standish Group’s yearly Chaos Report found only 29% of IT projects in 2021 were completed successfully, meaning on time and on budget. The remaining 71% were either failures or challenged, highlighting continued struggle in IT project delivery.

According to PricewaterhouseCooper’s annual survey, 20% of the 10,000 projects reviewed delivered less than half of the expected benefits. Gartner found in their research that 51% of projects miss their benefit targets. Another report from KPMG put the failure rate for projects at 50-60%, similar to other analyses.”

Therefore, it is shocking that with all these statistics of projects delayed and overrun of budget, we don’t have clear recovery plan ready to go as proactive approach to be implemented in any PMO governance.

The suggested checklist assesses your project’s preparedness for implementing effective recovery actions. Answering “No” to any of these questions indicates a potential risk for project failure during the recovery process.

Schedule Approval Process

1. Do you have a strong schedule approval process that includes a comprehensive narrative with the following sections?
   • Schedule log report
   • Check Schedule Report from P6 EPPM (or equivalent scheduling software)
   • Resource List with suggested productivity levels
   • Resource Cost S-Curve
   • Resource Units S-Curve
   • Logistic Planning
   • Design and document submittal plan
   • Government approvals plan
   • Measurement and schedule update method (including WBS and activity weights)
   • Client’s responsibilities and activities highlighted
   • Other contractors’ approvals, works, and responsibilities
   • Interfacing planning method
   • Commissioning planning
   • Schedule and budget risks
   • Planning team CVs
   • Digital version of baseline details (name, size, date, BL preparation revision, software name and revision)

A robust schedule approval process provides a clear foundation for tracking progress, identifying deviations, and implementing targeted recovery actions.

Recovery Planning Integration

2. Do you have a recovery threshold for time delays and cost overruns defined within your project governance system?

Establishing clear thresholds for acceptable delays and cost overruns facilitates timely identification of risks and triggers the initiation of recovery plans before issues escalate.

3. Do you avoid changing the completion date and adopting a new baseline without first conducting recovery planning?

Skipping recovery planning when adjusting deadlines can lead to repeating past mistakes. Recovery plans should analyze root causes and propose solutions to ensure the new baseline is achievable.

Information Management

4. Do you utilize a digital system for a single source of truth, enabling faster project status comprehension?

Real-time, centralized data access is crucial for informed decision-making during recovery processes. A digital system allows for improved tracking, analysis, and communication of project health.

Project Governance

5. Do you have a strong project governance and audit team comprised of engineers and specialists in project delivery and governance?

An experienced and qualified governance team provides vital expertise for navigating complex recovery situations. Their insights can significantly improve the effectiveness of recovery actions.

Project Health Monitoring

6. Do you maintain a live business case baseline updated at least monthly to monitor project health?

A regularly updated business case baseline provides a clear picture of project performance and financial viability. This allows for early detection of potential issues and facilitates course correction during recovery efforts.

Addressing Weak Governance

As I mentioned, answering “No” to any question indicates weaknesses in project governance. These weaknesses contribute to the need for recovery in the first place. Addressing these issues will not only strengthen your recovery efforts but also prevent future project delays and failures.

Now let’s discuss each point on the checklist and explore why they hold such importance in project recovery:

1. Baseline Approval and The Complete Narrative with Support Documents

Approving a baseline goes far beyond simply endorsing a digital schedule. It signifies that all stakeholders have a shared understanding of the project plan, from initiation to closure.

The comprehensive narrative serves as a detailed roadmap, outlining:

• Responsibilities: Each party is crystal clear on their roles and deliverables.
• Detailed Planning: The plan dives into specifics, ensuring everyone has considered potential hurdles.
• Risk Management: Identified risks and corresponding mitigation strategies are documented and readily accessible.

By thoroughly examining and approving this narrative, all parties are aligned and committed to achieving the project goals as planned. They are prepared to navigate potential challenges with proactive solutions already in place.

2. Approving Revised Baseline

This is a crucial point and a major pitfall to avoid. Simply accepting a new deadline without recovery planning is a recipe for repeating past mistakes.

Here’s why recovery planning is essential before revising the baseline:

• Root Cause Analysis: Recovery planning delves into the underlying reasons for delays and cost overruns. This analysis prevents simply extending deadlines without addressing the core issues.
• Improved Baseline Accuracy: By understanding the root causes, the revised baseline becomes more realistic and achievable.

Approving a new baseline after successful recovery efforts ensures the revised schedule reflects a more accurate picture of project execution. The focus shifts from “more time” to a renewed commitment to delivering on the revised timeline.

3. Recovery Threshold in Your Project Governance System

Integrating recovery planning into your PMO governance system sends a powerful message: recovery is a recognized and expected process. This eliminates the stigma and facilitates early intervention.

Defining recovery thresholds provides several benefits:

• Proactive Approach: Thresholds trigger recovery actions before minor delays snowball into major problems.
• Clear Expectations: Everyone involved understands when and how recovery measures are initiated.
• Resource Allocation: Having a plan allows for the timely allocation of necessary resources to address recovery challenges.

Threshold Based Recovery Teams

Implement a tiered recovery activation system within your PMO governance. This system automatically triggers recovery actions based on pre-defined thresholds for delays or cost overruns. Consider a two-tier approach:

• Tier 1 (10 to 15% Delay/Overrun): While as mentioned above recovery process is implemented in the weekly reporting however, when the delays threshold is 10%, the current project team activate the recovery planning and implementation process requirement. This fosters accountability and leverages their existing project knowledge.

In the same time, this team documents and prepare next stage if recovery plan did not achieve its goal through involvement of a dedicated recovery director/manager and an expert delay planner with document controller provides valuable support and expertise to the existing team.

• Tier 2 (Above 15% Delay/Overrun): A dedicated recovery team is assembled, potentially retaining some members from the original team for continuity. This fresh perspective and potentially specialized skills can be invaluable in addressing larger issues.

Here’s how this approach benefits your project:

• Early Intervention: Low thresholds ensure timely action before minor issues escalate.
• Scalable Response: The severity of the delay/overrun dictates the level of recovery expertise needed.
• Knowledge Transfer: The existing team facilitates a smooth transition to the new recovery team by organizing delay events and documents.
• Accountability: The tiered system incentivizes the existing team to perform well, as they are responsible for initial recovery efforts.

Remember, this threshold percentage may be adjusted based on project size (consider lowering it for very large projects, say above $250 million) and your organization’s risk tolerance. This flexibility ensures the recovery system aligns with your specific project needs.

5) Do the Tasks Required to Completion

Once you have your plan, you need to execute it. Hedge Fund Billionaire Ray Dalio suggests three tactics for successful principles for life which is very good to apply in our projects world. He suggests the followings: Have good work habits, measure your progress, and stay motivated. This may include actions such as making use of checklists to stay on track, pushing through failure, and celebrating when you solve problems and reach your goals. We will get back to his approach more below.

Let’s return to questions above one by one and understand why they are important?

Baseline Approval and The Complete Narrative With Support Documents

Approving the baseline main purpose is not approving the digital schedule as some thinks. It is approving the project planning from starting to close out. It is the evidence that the involved parties understand their takes and responsibilities. That they though about it in details and they are ready to start delivering it as planned including any risks and mitigation ready for action when it happen.

Approving New Baseline

One point above which is the main reason for recovery failure which is accepting a new deadline without studying the root cause of delays and cost overrun. Such thinking should be eliminated form any project.

Accepting the new deadline as new closing date put the mindset as (good we have more time) rather than (we did not achieve our goals so we should not fail again). So avoid to set new date without proper (I say proper, not just document to submit), recovery understanding and Implementation planning.

Recovery Threshold in Your Project Governance System

Here, we let everyone knows that recovery is a normal process we should do, so lets prepare for it and make it clear to everyone as it answer many questions in early stage like when, what, who and who as a normal process and not an urgent fire fighting process.

 Each project based on its time and budget should have a threshold trigger to activate the recovery stage.

Design project governance to have threshold that justify automatically activating the recovery team when you reach a certain delays or overrun trigger (let’s say 15% with current project team responsible for the planning and implementation of the recovery phase. After that a new recovery team (who might choose some of the existing team members) when the delay or overrun is 20% as an example). The percentage above should be smaller when the projects are bigger budget and above 250 million and based on the organisation risk appetite. Another advantage of the above governance is the current team will organized all the delays events and documents if the new team is activated. Moreover, the current team will do its best not to fail twice (during recovery similar to during project delivery.

Having said the above, when a recovery team is assigned, the recovery (Director/Manager), an expert delays planner and a document controller are assigned immediately to help the current team to deliver and mange the recovery stage. We don’t want an overloaded team after all.

Using a New Dedicated Recovery Team:

Advantages:

1. Fresh perspective: A new team can bring an objective, unbiased viewpoint and may be better positioned to identify root causes and potential solutions without being influenced by previous assumptions or biases.

2. Specialized expertise: A recovery team can be assembled with individuals who have specific expertise in project recovery, risk management, and crisis management, which may be lacking in the existing team.

3. Dedicated focus: A separate recovery team can dedicate their full attention and resources to the recovery efforts without being distracted by ongoing project work.

4. Psychological reset: Bringing in a new team can help overcome any negative team dynamics, loss of morale, or interpersonal conflicts that may have contributed to the project’s issues.

Disadvantages:

1. Ramp-up time: A new team will need time to familiarize themselves with the project’s history, documentation, and current state, potentially slowing down the recovery process.

2. Knowledge transfer challenges: Transferring project knowledge and context from the existing team to the recovery team can be challenging and may lead to information gaps or misunderstandings.

3. Resistance from existing team: The existing team may feel threatened or demoralized by the introduction of a new recovery team, potentially leading to resistance or lack of cooperation.

4. Additional costs: Assembling and onboarding a new team can be costly, especially if external consultants or subject matter experts are required.

Using the Existing Project Team:

Advantages:

1. Familiarity with the project: The existing team already has in-depth knowledge of the project’s history, stakeholders, and technical details, which can expedite the recovery process.

2. Continuity: Leveraging the existing team can ensure continuity and minimize disruptions to ongoing project activities that may still be necessary during the recovery phase.

3. Ownership and accountability: The existing team may feel a stronger sense of ownership and accountability, motivating them to actively participate in the recovery efforts.

4. Cost-effective: Utilizing the existing team can be more cost-effective than assembling a separate recovery team, especially for smaller projects or organizations with limited resources.

Disadvantages:

1. Lack of fresh perspectives: The existing team may be too close to the project’s issues and may struggle to identify and address root causes objectively.

2. Resistance to change: Team members may be resistant to admitting mistakes or implementing significant changes to their established processes or approaches.

3. Burnout or morale issues: If the existing team has already experienced significant stress or morale issues due to the project’s challenges, they may lack the motivation or energy to drive a successful recovery effort.

4. Lack of specialized expertise: The existing team may not have the specific expertise or experience required for effective project recovery, such as risk management, crisis management, or change management skills.

Ultimately, the decision to use a new dedicated recovery team or leverage the existing project team should be based on a careful evaluation of the project’s specific circumstances, the nature and severity of the issues, the team’s capabilities, and the organization’s resources and preferences. In some cases, a hybrid approach combining elements of both teams may be the most effective solution.

Regardless of the approach chosen, it is crucial to have strong leadership, clear communication, and a well-defined recovery plan that addresses the root causes of the project’s issues and aligns with the organization’s objectives and priorities.

Embracing the Unknown: The Key to Growth in a Dalio-Inspired World

Ray Dalio’s philosophy places significant emphasis on embracing the unknown as a far more critical skill than simply accumulating knowledge. Here’s why:

• The World is Dynamic: The information landscape is constantly shifting. New discoveries, unforeseen challenges, and evolving situations can quickly render existing knowledge obsolete. Focusing solely on what you know limits your ability to adapt and thrive in a dynamic world.
• Knowledge Has Boundaries: No matter how much you learn, there will always be things you don’t know. An over-reliance on existing knowledge can lead to a closed mind and missed opportunities. Embracing the unknown fosters a spirit of curiosity, encouraging you to explore new possibilities and find creative solutions.
• Learning is a Continuous Process: The key to success lies not in having all the answers, but in having the ability to learn effectively. By embracing the unknown, you actively seek out learning opportunities, constantly expanding your knowledge base and refining your skills.

Developing the Tools to Navigate the Unknown:

Dalio suggests cultivating specific tools to excel in the face of the unknown:

• Growth Mindset: View challenges and uncertainties as opportunities for growth. Approach each situation with a willingness to learn and adapt, fostering a sense of continuous improvement.
• Radical Openness: Actively seek out diverse perspectives and challenge your own assumptions. Be open to new information, even if it contradicts your existing beliefs. This openness allows you to see situations from different angles and identify potential blind spots.
• Embrace Mistakes: Mistakes are inevitable, but valuable learning experiences in the unknown. Analyze your mistakes to understand what went wrong and how you can improve in the future. Don’t let fear of making mistakes paralyze you from taking calculated risks and venturing into uncharted territory.
• Developing Effective Questions: The right questions can unlock a wealth of information. Learn to ask insightful questions that probe deeper into the unknown and illuminate potential solutions.

By adopting these tools and embracing the unknown, you transform challenges into opportunities for growth, propelling you towards a fulfilling and ever-evolving journey. This approach is the cornerstone of Dalio’s philosophy, empowering you to not only survive but thrive in a world brimming with the unexpected.