Denicol, J; Davies, A; Brady, T; Thurston, M; (2017) Building and leveraging capabilities to deliver megaprojects: The case of CH2M. In: EPOC 2017. Engineering Project Organization Conference (EPOC)

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Abstract

Considering the context of high capital investment globally, there is a practical call for studies exploring the factors that could potentially improve the efficiency of megaproject deliveries. The aim of this paper is to explain how project-based firms learn from its involvement in a series of one-off complex megaprojects and build capabilities to better deliver them. The study has examined CH2M, a project-based firm with capabilities in civil engineering, consultancy and program management, that recently was recognized as the world leader company in program management services. The research design comprised a qualitative research via single case-study method in a project-based organization with multiple embedded megaprojects. The learning within and between these megaprojects has enabled the company to develop a set of capabilities which can be applied in a variety of different markets. These capabilities cover both hard and soft skills which are translated into technical and managerial areas. This research argues that the involvement in a series of one-off megaprojects is a different phenomenon to understand, offer a new type of project capability building challenge for companies and adds to the literature on project capability building processes. What was unexplored so far is the balance between exploitation and exploration (routine vs innovative projects) faced by organizations that generate their income by delivering a portfolio of projects that includes, and is heavily influenced by, its involvement in repeatable large and complex megaprojects. Those organizations need to recognize the dilemma between the central corporation and the projects at the boundaries of the firm, as well as the necessity of creating and maintaining a balance at different levels, project, program and portfolio. All levels are constantly evolving and influencing each other, changing the organization as a whole towards the projects, following the logic embedded in the business model of project-based organizations.

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