Servant Leadership and other Lessons Learned from the Olympic Stadium

Tina Cerulli, PMP Presentation to PMI Champlain Valley Objectives

1. Demonstrate the benefits of: • Servant Leadership • Implementing Lessons Learned • Sound Project Management

2. Case Study: Montreal Olympic Stadium

3. Recommendation: Old Stadium or New Stadium?

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Potential Expos Return

If the Montreal Expos return, where should they play?

Old Stadium or New Stadium?

Faster Cheaper

Better

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Lessons Learned

• If & How to Use Them

• Unique Project Output

• Perception is Reality

• Consider All Sources

16/05/2013 Copyright@Tina Cerulli, PMP 4 Lessons Learned from Construction Project of the Montreal Olympic Stadium

Initiating Planning Executing Closing

Dec 4, 1969 May 2, 1970 April 23, 1973 July 17, 1976 Nov 6, 2006

16/05/2013 Copyright@Tina Cerulli, PMP 5 ’s Vision

• Place Des Arts 1963

• 1st IOC Application 1965

• Metro 1966

• Expo’67 1967

• Montreal Expos 1969

16/05/2013 Copyright@Tina Cerulli, PMP 6 Initiating the Construction Project

Initiating Planning Executing Closing

Dec 4, 1969 - May 2, 1970

16/05/2013 Copyright@Tina Cerulli, PMP 7 Project Description

• Development of Park Maisonneuve

“The ugliness of slums in which people live doesn’t matter if we can make them stand wide-eyed in admiration of works of art they don’t understand.” - Jean Drapeau, 1967

16/05/2013 Tina Cerulli, B.Eng, MCSE, PMP 8

High Level Requirements

Stakeholder Req # Requirement Description IOC 1 Olympism 2 Multi-purpose stadium 3 High Seating Capacity 4 Safety (Exits/Access) 5 Open-air Environment City of Montreal 6 Retractable Roof for Professional 7 Field for 8 Field for Professional Football 9 Modest (like the 1952 Helsinki Games)

16/05/2013 Copyright@Tina Cerulli, PMP 9 OBS

PM Jean Drapeau

Architect Roger Taillibert

PM Games PM Installations Planning Claude Phaneuf Paul Howell

16/05/2013 Copyright@Tina Cerulli, PMP 10 Architect Roger Taillibert

• Born in France • International Sports Facilities • Commander of the Légion d'Honneur

16/05/2013 Copyright@Tina Cerulli, PMP 11 City Engineer Claude Phaneuf

16/05/2013 Copyright@Tina Cerulli, PMP 12 Planning Paul Howell

16/05/2013 Copyright@Tina Cerulli, PMP 13 External Stakeholders

• Customers

• Governments

• International Media

• Worldwide Audience Montreal Citizen’s Movement

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Planning the Construction Project

Initiating Planning Executing Closing

May 1970 – April 1973

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WBS: Olympic Stadium

Stadium

Shell Tower Roof Field

16/05/2013 Copyright@Tina Cerulli, PMP 16 Planning the Shell Design

• Le Parc des Princes – Designed by French Architect Roger Taillibert, 1972

16/05/2013 Copyright@Tina Cerulli, PMP 17 Taillibert’s Architectural Style

• Curved Line Opposing Curved Line

• Concrete vs Steel

• Pre-Fab Components

• Sloping Roof

• 34 Unique Consoles

• Innovative

16/05/2013 Copyright@Tina Cerulli, PMP 18 Planning the Tower Design

• 1st freestanding structure leaning into space

• 45 degrees

• As Tall as Washington Monument

• Triangular base

• Swimming Pool

16/05/2013 Copyright@Tina Cerulli, PMP 19 Planning the Roof Design

• Retractable

• Movable Fabric

• Umbrella

• Piscine Carnot, Paris

• April 1972 Presentation

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Planning the Field Design

• Customers

– Montreal Expos (Baseball) – (Football)

16/05/2013 Copyright@Tina Cerulli, PMP 21 Planned Cost of Quality

Inexpensive Expensive

• Simple • Complex

• Fast • Slow

• Proven Design • Unique Design

• High Quality • Rework

• Concrete • Steel

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Budget Planning

• 1972 Forecasted Construction Costs: $ 250 M

• Self-Financed => No Sponsor Required!

“The Montreal Olympics can no more have a deficit than a man can have a baby.” - Jean Drapeau, 1973

16/05/2013 Copyright@Tina Cerulli, PMP 23 Time Planning

• February 3, 1973: 1st Master Schedule for Construction

– 6 month late Forecast, 3 years before Delivery!!

Construction Construction Installation Excavation Shell Tower Roof

16/05/2013 Copyright@Tina Cerulli, PMP 24 Communication Planning

Purpose Stakeholder Type of Communication When

Progress • Schedule (CPM) Once a COJO Tracking • PAP Process Month

Construction • Schedule (BART Chart) Daily • Written Progress IOC Reports Ad Hoc • Presentations World Marketing • Pamphlets, Brochures Late Audience

Public • Video Presentation Ad Hoc Media Relations • Press Conference

16/05/2013 Copyright@Tina Cerulli, PMP 25 Procurement Planning

• No Competitive Bidding – Didn’t work in Munich • Consequences – Perception of Unfairness / Over-Spending – Sabotage

16/05/2013 Copyright@Tina Cerulli, PMP 26 Executing the Construction Project

Initiating Planning Executing Closing

April 28, 1973 – July 9, 1976

16/05/2013 Copyright@Tina Cerulli, PMP 27 Work Progress 1973-74

• Inflation • Costs Up • Resource Scarcity • Resources Up • Strikes (Nov-Feb) • Delays • Lack of Competence • Soil too weak

16/05/2013 Copyright@Tina Cerulli, PMP 28 Re-Org #1

Sponsor

Product Owner

Installations Games

Design Duranceau Construction

16/05/2013 Copyright@Tina Cerulli, PMP 29 Re-Org #1

Sponsor

Product Owner

Installations Lavalin Games

City

Design Duranceau- Construction Lavalin Desourdy

16/05/2013 Copyright@Tina Cerulli, PMP 30 Work Progress 1975

• Jockeying for Power • Delays • Resource Congestion • Costs Up • Strikes (May-Oct) • Dissention • No more Money! • Bail Out!

31 Re-Org #2

Sponsor X Product Owner X

Installations Lavalin Games

City

Design Duranceau- Construction Lavalin Desourdy

16/05/2013 Copyright@Tina Cerulli, PMP 32 Re-Org #2

Sponsor Olympic Installations Board

Product French Contractors Owner

Installations Lavalin Games

City

Design Duranceau- Construction Lavalin Desourdy

16/05/2013 Copyright@Tina Cerulli, PMP 33 Work Progress 1976

• Clearer Leadership • Rushed Work • Working OT • Costs Up • PR Management • Progress Up

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Scope Incomplete:

Stadium Shell Field Tower Roof

16/05/2013 Copyright@Tina Cerulli, PMP 35 “Modest” or Over Budget?

• Planned = $ 250 M • Actual = $1213 M • Deviation = 385 %

16/05/2013 Copyright@Tina Cerulli, PMP 36 Lessons Learned

“The future will be the judge. Every time a man tries to do something that lasts beyond his own time, he has troubles. I’m sure no one understood the significance of the Sphinx, the pyramids or the Eiffel Tower.”

- Jean Drapeau, 1976

16/05/2013 Copyright@Tina Cerulli, PMP 37 Lessons Learned

• Scope: Adapt Accordingly

• Quality: Meet the Requirements First

• Cost: “Run Your Project Like a Business”

• Time: Plan for the worst

• HR: Clarify Expectations

• Risk: Keep Highest Risk off Critical Path

• Procurement: Have Contracts with Penalties

• Communication: Be Proactive & Transparent

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Lessons Learned

• Stakeholders: Be a Servant Leader

– Listen Actively – Be Aware – Be Understanding & Empathetic – Have Foresight – Be Persuasive – Have Stewardship – Provide Healing – Conceptualize – Commit to the Growth of People – Build Your Community

16/05/2013 Copyright@Tina Cerulli, PMP 39 DELIVERING TO EXPOS APRIL 1977

16/05/2013 Copyright@Tina Cerulli, PMP 40 Tower 1979-1987

• Design Change • Delays & Rework • Explosions • Costs Up • Fires • Safety Concerns • Falling Concrete • Games Postponed • Raining / Freezing • Loss of Revenue

41 Retractable Roof 1988-1998

• Design Changes • Delays & Rework • Malfunctions • Costs Up • Wind Constraints • Games Postponed • Rips • Loss of Revenue

42 Fixed Roof 1998-2013

• Design Change • Delays & Rework • Panel Collapse • Costs Up • Rips • Injuries / Safety • Fire Hazard • Closed in Winter • Replacement • Loss of Revenue

43 1991-2013 Concrete Shell

• Beam crashes • Delays & Rework • Wall Collapses • Costs Up • Slab Falls • Safety Concerns • Cracks • Expos / Auto Show • Lost Revenue

44 Closing the Construction Project

Initiating Planning Executing Closing

Nov 2006

16/05/2013 Copyright@Tina Cerulli, PMP 45 More Lessons Learned – Cost of Non-Conformance & Poor Quality

• Total Cost in 2006: $1.47B • Revenue in 2012: $5.6M Deficit

16/05/2013 Copyright@Tina Cerulli, PMP 46 More Lessons Learned – Stakeholder DisEngagement OIB’s Attempt at Servant Leadership

“Dreadful. Too expensive. Horrible. Useless. The Roof.”

16/05/2013 Copyright@Tina Cerulli, PMP 48 OIB’s Response

Demolition is not an option!

16/05/2013 Copyright@Tina Cerulli, PMP 49 Potential Expos Return

If the Montreal Expos return, where should they play?

Old Stadium or New Stadium?

Faster Cheaper

Better

16/05/2013 Copyright@Tina Cerulli, PMP 50 OIB’s Recommendation

Future = Past = Old Stadium Added Value = ZERO! • More Cost of Poor Quality • More Cost to Tax Payers – Roof ($300M?) • More Negative ROI – Concrete Repairs • Continued Dissatisfaction

16/05/2013 Copyright@Tina Cerulli, PMP 51 OIB’s Recommendation

Future = Past = Old Stadium Added Value = ZERO! • More Cost of Poor Quality • More Cost to Tax Payers – Roof ($300M?) • More Negative ROI – Concrete Repairs • Continued Dissatisfaction

16/05/2013 Copyright@Tina Cerulli, PMP 52 My Recommendation: Strive for Excellence this time!

Future = New Stadium Added Value = Positive ROI! • Customer Driven • Stakeholder Satisfaction • Built Sound PM Principles • Generate Revenue • Privately Owned • End Tax Payer Subsidies

16/05/2013 Copyright@Tina Cerulli, PMP 53 PMI CV Advertisement