Value-mapping for major economic infrastructure projects by Judy Ann Kraatz B. Design Studies (Hons) University of Queensland B. Architecture (Hons) University of Queensland A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Faculty of Built Environment and Engineering School of Urban Development Queensland University of Technology August 2009 Table of Contents This page has been left blank. - ii - Table of Contents Abstract The establishment of corporate objectives regarding economic, environmental, social, and ethical responsibilities, to inform business practice, has been gaining credibility in the business sector since the early 1990’s. This is witnessed through (i) the formation of international forums for sustainable and accountable development, (ii) the emergence of standards, systems, and frameworks to provide common ground for regulatory and corporate dialogue, and (iii) the significant quantum of relevant popular and academic literature in a diverse range of disciplines. How then has this move towards greater corporate responsibility become evident in the provision of major urban infrastructure projects? The gap identified, in both academic literature and industry practice, is a structured and auditable link between corporate intent and project outcomes. Limited literature has been discovered which makes a link between corporate responsibility; project performance indicators (or critical success factors) and major infrastructure provision. This search revealed that a comprehensive mapping framework, from an organisation’s corporate objectives through to intended, anticipated and actual outcomes and impacts has not yet been developed for the delivery of such projects. The research problem thus explored is ‘the need to better identify, map and account for the outcomes, impacts and risks associated with economic, environmental, social and ethical outcomes and impacts which arise from major economic infrastructure projects, both now, and into the future’. The methodology being used to undertake this research is based on Checkland’s soft system methodology, engaging in action research on three collaborative case studies. A key outcome of this research is a value-mapping framework applicable to Australian public sector agencies. This is a decision-making methodology which will enable project teams responsible for delivering major projects, to better identify and align project objectives and impacts with stated corporate objectives. - iii - Table of Contents Keywords Value-mapping, corporate responsibility, urban infrastructure, construction innovation, corporate reporting. - iv - Table of Contents Table of contents Abstract iii. Keywords iv. Table of contents v. Supplementary materials ix. List of Figures x. List of Tables xi. Authorship xiii. Abbreviations xiv. Acknowledgements xv. Publications from this research xvi. 1. Chapter 1 – Introduction 1 1.1 Research background 1 1.2 Research scope 2 1.3 Research drivers 4 1.4 Research method overview 8 1.5 Dissertation structure 10 2. Chapter 2 – Literature Review 13 2.1 Introduction 13 2.2 Corporate responsibility 16 2.2.1 Corporate social responsibility 17 2.2.2 CSR standards and frameworks 19 2.2.3 Accountability and stakeholders 23 2.3 Project Value/s 29 2.3.1 Background literature 29 2.3.2 Value chain mapping 31 2.3.3 Value stream mapping 32 2.4 Performance indicators 34 2.4.1 Sustainability and CSR indicators 35 2.4.2 Indicators for project performance 40 2.5 Measurables 51 2.5.1 Physicalisation of measurables 52 2.5.2 Monetisation 57 2.6 Summary of literature review 58 - v - Table of Contents 3. Research Methodology 61 3.1 Building on the knowledge base 61 3.2 Research approach 62 3.2.1 Research purpose 62 3.2.2 Research environment 62 3.2.3 Time dimensions of the research 63 3.2.4 Limitations of research 64 3.3 Review of research methods considered 65 3.3.1 Phenomenography 66 3.3.2 Grounded theory 66 3.3.3 Delphi method 67 3.3.4 Soft System methodology 68 3.3.5 Action research 68 3.3.6 Case studies 70 3.4 The adapted inquiry cycle 70 3.4.1 Soft System Method 71 3.4.2 Action research 72 3.4.3 Case studies 74 3.5 The value-mapping methodology 83 3.5.1 Inputs 83 3.5.2 Validity and Reliability 88 3.5.3 Application 89 3.6 Summary of research method 91 4. The value-mapping framework 93 4.1 Introduction 93 4.2 Value-mapping activities and inputs 94 4.2.1 Organisational context 96 4.2.2 Project objectives and opportunities 103 4.2.3 Accountabilities 108 4.2.4 Indicator development 112 4.2.5 The value-map 113 4.2.6 Measurables and targets 114 4.2.7 Review, revision and reporting 117 4.3 Chapter summary 117 - vi - Table of Contents 5. Case 1 – Eleanor Schonell Bridge 119 5.1 Real-world problem diagnosis 119 5.2 Case 1 description 120 5.2.1 Physical description 120 5.2.2 Engagement 122 5.3 Identifying the ‘real world problem’ 140 5.3.1. Reflections on the literature 140 5.3.2 Reflections on the fieldwork 142 5.4 Addressing the ‘real world problem’ 144 5.4.1 The draft value-mapping framework 146 5.4.2 Summary of Case 1 learnings 164 6. Case 2 – Hale Street Link 167 6.1 Questioning the problem situation 167 6.2 Case 2 description 168 6.2.1 Physical description 169 6.2.2 Engagement 170 6.3 Testing the value-mapping framework 179 6.3.1 Reflections on testing the framework 179 6.3.2 Second iteration of the value-mapping framework 182 6.4 Summary of Case 2 learnings 202 7. Case 3 – Northern Link 205 7.1 Taking action to improve 205 7.2 Case 3 description 205 7.2.1. Physical description 206 7.2.2 Engagement 208 7.3 Implementing the value-mapping framework 215 7.3.1 Reflections on implementing the framework 215 7.3.2 Second iteration of the value-mapping framework 216 7.4 Case 3 learnings 244 7.5 Chapter summary 245 - vii - Table of Contents 8. Discussion and conclusions 247 8.1 Final evaluation and specification of learnings 249 8.1.1 External feedback 249 8.1.2 Reflections on the process 252 8.2 The value-mapping framework 254 8.2.1 Reflections by the researcher 255 8.2.2 Generic value-mapping worksheets 257 8.3 Transport-related data-sets 266 8.4 Contribution of this research 269 8.4.1 Contribution to academic research 269 8.4.2 Contribution to industry 270 8.4.3 Future contribution 271 8.5 Chapter summary 275 - viii - Table of Contents Supplementary Materials Appendices 1. Semi-formal interview documentation 277 1.1 BCC Corporate Interviews 277 1.2 Case 1 Interviews 278 1.3 Case 2 Interviews 279 1.4 Case 3 Interviews 280 1.5 Evaluation and feedback interviews 281 2. Case 1 Critical success factors 282 3. Case 1 process maps 287 3.1 Community consultation overview 288 3.2 Design decision-making example 289 3.3 Economic analysis overview 290 3.4 Impact Assessment Statement overview 291 3.5 Business Case overview 292 3.6 IAS impacts overview 293 3.7 Tender process outline 294 4. Case 2 process maps 295 4.1 Community consultation overview 296 4.2 Design decision-making example 297 4.3 Impact Assessment Statement overview 298 4.4 Business Case overview 299 5. Transport costs in current literature 300 6. Transport data-sets 302 6.1 Accessibility 303 6.2 Health and well-being 307 6.3 Inclusiveness 309 6.4 Regional distinctiveness 311 6.5 Environment 313 6.6 Creativity 316 6.7 Economic 317 Bibliography 319 - ix - Table of Contents List of figures 2.1 (a) Traditional sustainability (b) Multi-faceted, long-term sustainable 23 development 2.2 The variety of stakeholders in CSR reporting 26 2.3 The value chain 31 2.4 Consolidated framework for measuring project success 42 2.5 Conceptual diagram of urban ecological economic system 54 2.6 Methodological framework for collection of data on cumulative impacts 56 3.1 The inquiry/learning cycle of SSM 71 3.2 Adapted inquiry cycle 82 4.1 Mapping project outcomes to corporate objectives 95 4.2 Brisbane City Council organisational processes 99 4.3 Brisbane City Council organisational structure (2007) 100 4.4 Major Infrastructure Projects Office processes 101 4.5 Project-specific overview process map 102 4.6 Assessment framework for project success 106 4.7 Spheres of influence 109 4.8 Mapping key CSR issues to stakeholders 111 5.1 Eleanor Schonell Bridge 122 5.2 Common values and behaviours 133 5.3 Case 1 – Overview process map 148 5.4 Case 1 – Spheres of influence 150 6.1 Proposed Hale Street Link route 168 6.2 Case 2 - Overview process map 183 6.3 Case 2 - project objectives – contribution to corporate objectives 188 6.4 Case 2 - spheres of influence 190 7.1 Proposed Northern Link location 208 7.2 Case 3 – Overview process map 218 7.3 Energy impact analysis categories 242 8.1 The final value-mapping framework 255 8.2 Generic overview process map 258 - x - Table of Contents List of tables 2.1 Most frequent occurrence of similar CSFs 42 2.2 CSF for PPP/PFI projects 46 2.3 Framework for CSFs of BOT projects in China 48 2.4 Project success factors for Design/Build projects 48 2.5 Summary of CSFs/KPIs identified in literature 50 2.6 General scheme of material flow account matrix 55 5.1 Example of impact mapping 124 5.2 Green Bridge SPeAR Assessment headline indicators 127 5.3 Green Bridge economic analysis performance indicators 128 5.4 Contribution to 2010 – Green Bridge objectives 129 5.5 Green Bridge performance objectives 130 5.6 Green Bridge project primary targets 130 5.7 Green Bridge project values 130 5.8 Green Bridge behavioural expectations 131 5.9 Monthly project report topics 134 5.10 Eleanor Schonell Bridge – Indicators, measurables and actions 137 5.11 Case 1 – Accountability map 151 5.12 Case 1