Major project

leadership
Creating a leadership culture
2 Major project leadership: Creating a leadership culture

It’s a familiar scene for major project management: an

organization sets off with a bold vision and big plans only
to discover after making major commitments that its
governance and leadership structures are an ill fit for the
challenge. Teams become strained, issues compound, and
a project that was originally destined to change the game
puts companies and careers at risk instead.
Then, there are the stories of massive, complex projects being managed with success. The ones
that are improving lives and careers as a result. These are the large-scale initiatives that launch
with fit-for-purpose leaders and a leadership culture that uphold the project’s vision, mission and
values while enabling its team to move with autonomy, agility, and confidence.
Naturally, the second scenario is the preferred outcome. Getting there begins by recognizing how
the importance (and uniqueness) of leadership comes into play, and what makes it an essential
pillar in major project management.

1 2 3 4 5
Stakeholder
Commercial
Governance

Leadership

Technical

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3 Major project leadership: Creating a leadership culture

Management ≠ leadership
(and vice-versa)
It’s important to draw a distinction between leaders and managers – or more specifically,
leadership and management. The latter is the act of undertaking specific tasks and
“managing” parameters such as timelines and budgets. Leadership, by comparison, is the
act of (and ability to) inspire teams, promote internal and external alignment, and navigate
change regardless of their title.
In short: Management is a necessary element for any project, but not sufficient on its
own. Only when effective leadership is established up front can projects establish the
collaboration, communication, accountability, and authority needed to effectively manage
day-to-day project activities.
In short: leadership is the connective tissue that keeps the project on track. It is a difficult
skill to practice and can change as projects unfold, which is why major projects benefit by
establishing strong leadership from the start and supporting it through all phases.

Leading major projects

It sounds simple on paper: if an organization has conducted smaller-scale projects in
the past, then the same hierarchies and strategies will work for something larger. Sure,
it may require teams to work a few late nights, but if the company has a track record for
conquering $100M initiatives, then a $1B-plus project should be feasible.
In reality, overseeing projects of this magnitude is never 'business as usual'. They are
much like running a second organization entirely, complete with its own goals, culture,
cost considerations, and operating frameworks designed to bring a specific vision to life.
Moreover, the timelines for major projects can extend far beyond what the organization
may be used to, spanning anywhere from 10 to 15 years from conception to completion
and all the vital stages in-between (e.g., planning, procurement, commissioning,
etc.). Lastly, major projects are no small expense, and can cost millions per day in the
construction period alone.
These reasons and more make major projects a unique and monolithic undertaking
for organizations; one that requires a bespoke approach to team development, culture
building, governance, and controls. These projects are feats for any organization, and
require leaders who have experience with large-scale projects and the specialized
knowledge to see them through to the final ribbon cutting.

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4 TITLE TBC

Backgrounds and skillsets may differ, but essentially,

effective leaders are those who:
– Shape the project and direction to meet project objectives
and align with the organizational vision, mission, and
values.
– Ensure a project team includes the right capabilities,
capacity, and competencies.
– Possess superior communication skills.
– Trust their team to deliver on the project mandate.
– Safeguard the project against optimism bias.
– Have the courage to implement and maintain change
through the project lifecycle.
Major project leaders are also somewhat of a paradox. They
are optimistic, but always thinking about what can go wrong.
They have faith in their teams but are prepared for the worst.
They are confident and ready to lead, but willing to give their
team the space and support to do what they do best.

Cultivating leaders
at all levels
The term ‘leader’ can refer to anyone at any level who
has the knowledge and expertise required to drive their
respective departments forward in service of the project’s –
and organization’s – vision and goals.
Major project teams also benefit from leaders with diverse
skills and areas of expertise. There may be those who excel
at technical delivery but fall short in business acumen, and
there may be individuals who have a natural ability to guide
teams but lack specialized knowledge in key areas. Success
requires that teams have complementary leadership skills
across the team, and that mechanisms are in place to share
those skills and experiences.
That’s not to say there aren’t ‘leaders’ who rank higher
within a project governance hierarchy. It’s saying that
‘leaders’ can be cultivated and championed through all
teams and at all levels for the benefit of the project.

© 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent
member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
5 Major project leadership: Creating a leadership culture

It takes a leadership culture

$1B+ projects exist to serve an organization’s vision, but they need to be driven by values,
objectives, and goals tailored to the task at hand. Herein, effective leadership structures
are those which are continually fostering a workplace culture that keeps these guiding
principals at the fore.
Transparency, accountability, and communication are critical to building a leadership
culture. As such, effective leaders are ones who can work with both internal and external
stakeholders to maintain alignment between teams and stakeholders with varying
goals, perspectives, and objectives. Whether it’s in the field with the contractors, in a
presentation with concerned citizens, on a call with organizational higher-ups, or in the
boardroom with special interest groups, they are the people keeping the big picture in
view among all project stakeholders.
Major projects also suffer when their teams lack the trust and support to practice timely
decision-making. This is common roadblock in 'owner-led' cultures which punish mistakes
more than they reward initiative and progress. In these environments, the fear of making
the wrong move can create a decision-making bottleneck at the top that slows down
schedules and holds leaders back from demonstrating their full potential.

Managing organizational change

Major projects are living, evolving entities. From planning to design, execution and
oversight, there are distinct stages of a ‘megaproject’ that require distinct leadership
approaches. Each stage comes with different cadence and challenges, requiring leaders
and leadership structures to manage change and a changing internal environment.
Change on these large-scale initiatives can refer to two distinct things: organizational
change as the project team moves through the project phases and project change where
the organization and people adjust to various pressures.
When designing your leadership approach, consider asking: “How will it look throughout
all phases?”, “How will it support the change effort?” and “What processes will make that
change quick and effective?” The answers will depend on the hard controls and culture in
place and the ability to move in unison with other teams.
Change management is not something to be taken for granted. It needs to be strategically
and thoughtfully planned out with a sustained focus and effort until the very end.

© 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
© 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
7 Major project leadership: Creating a leadership culture

Breaking down the silos

It’s common sense, but always true: communication is the glue that binds major project
stakeholders. That includes internal communication between project teams and boards
(or other governance structures), as well as parallel communication between day-to-day
collaborations with contractors, investors, business partners, and other stakeholders, no
matter where they fall in the project organization.
There’s not an organization on the planet that doesn’t recognize the value in good
communication. Even still, there are communication missteps and pitfalls that can
weaken a leadership culture.
One of the biggest communication blocks is when bad news is discouraged out of fear
of repercussions. No one likes to hear that schedules are off course or a costly problem
has come to light, but these updates need to be tabled with the relevant stakeholders
immediately so they can be dealt with quickly and appropriately. Remember: bad news
is one of the most valuable commodities on a project since that’s where action needs
to occur. As such, the channels and support need to be in place that allow bad news to
be escalated to the people who need to hear it.
Another impediment to project success is when people only communicate when they feel
it is necessary. In truth, if you feel like you’re over-communicating, then you’re probably
not yet communicating enough. Staying aligned means staying connected and leaving
little room for incorrect assumptions, knowledge gaps, or misinformation to take root.
Good communication is never a given. It needs to be built into the organizational design,
championed by leadership, and actualized through meetings, internal reviews, or other
agreed-up methods.

On solid footing
Leadership describes several elements in major project delivery. All combined, it’s about
establishing the culture, people, objectives, and controls that lead a project to its planned
outcome. The worst time to find out a costly initiative has poor leadership is years down
the road when it’s more costly to correct. That’s why leadership is one of the five pillars
that organizations are compelled to get right in the beginning when time is on their side.

© 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Contact us
Doug Ewing
Partner, Deal Advisory, Infrastructure
604-691-3022
[email protected]

Zach Parston
Partner, Advisory
403-691-8161
[email protected]

home.kpmg/ca

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