Latest / Project Podcast / Lessons learned from Crossrail with ex-CEO Mark Wild
Transcript
- 0:08Hello and welcome to the APM podcast brought to you by the
- 0:11childhood body for the project profession in 2022, a PM is
- 0:15celebrating its 50th Anniversary.
- 0:18So throughout the year the OPM podcasters meeting some of the
- 0:20movers and shakers who have shaped the project professional
- 0:23across the past. Few decades will be asking them
- 0:26how the profession has evolved where the untapped potential
- 0:29might lie. And what the future might hold,
- 0:31my name is Emma divita and I'm the editor of project apm's
- 0:34quarterly Journal this episode Andrew Saunders business
- 0:38journalist and regular. Contributor, to project sits
- 0:41down with Mark wild ex-ceo of crossrail as one of the largest
- 0:45Transportation programs, anywhere.
- 0:47In the world crossrail has had a high-profile from the outset,
- 0:51but the programs are construct. The Elizabeth line, a new high
- 0:54frequency. Commuter Rail line through
- 0:55London has often found itself in the headlines for the wrong
- 0:58reasons. Mark took over as CEO in 2018,
- 1:02as a time of Highly publicized budget and deadline overruns
- 1:06fast forward to may this year and Mark stepped down the CEO
- 1:09following the long-delayed but much celebrated opening of the
- 1:12Elizabeth line having successfully turned around such
- 1:15a complex and Fort program. In this podcast Mark shares his
- 1:18insights into what went wrong in the early years of crossrail,
- 1:21the changes who made upon becoming CEO and lessons for
- 1:25future complex programs. A p.m. members will be able to
- 1:28read an extended interview with Mark and the Autumn edition of
- 1:31project Journal out in September.
- 1:33And Thank you so much for talking to me today.
- 1:39I'm sure you're very busy, man, and I appreciate it.
- 1:42I'm looking forward to our conversation.
- 1:44So let's I mean, I supposed to kind of start with crossrail or
- 1:47bit of crossrail, what's the first thing that you do?
- 1:49What was the first thing that you did?
- 1:51When you rode across own, you've got this new got to turn around
- 1:53this tanker. Yeah, well, first me first, I've
- 1:56got to acknowledge that, you know, I was I was the boss of
- 2:00the tube. So I was running, London
- 2:01Underground and I was on the board of Crossroads so it would
- 2:05not be true to say that. You know, I came in on some kind
- 2:08of white charger and sort of the doubt, I and I think the reason
- 2:12I might have an interesting perspective is, you know, I'm
- 2:16part of the problem as well. You know, we always sitting on
- 2:18the board when this occurred. So, first and foremost, your day
- 2:21one wasn't completely unknown thing to me.
- 2:25But first thing I did was, I think, you know, is a lot of
- 2:28people know, one of the bad things that happened in
- 2:31crossrail, was it that had been demobilized, you know, we lost
- 2:35we always should be a thousand people in the client
- 2:38organization and where I took over it was like 600.
- 2:40So we lost critical mass. So the very first thing I did
- 2:43was I rapid re inflation of people.
- 2:48I think when you lose critical mass and you've got gaps, the
- 2:52first thing that I did was we got it, we got a new Senior
- 2:54Team, you know, we're going to have got Collin, Brown has our
- 2:57technical director. We started with Peter Henderson,
- 2:59our shoes are kind of program director and we went to Bechtel
- 3:03Jacobs and everybody. And I Just got my bag and ball
- 3:06out and said, look, I need help. So the very first thing I did
- 3:08was focus on the rien Flesh and of the team because we were, we
- 3:13were in a lot of trouble. You know, people were leaving
- 3:16and the Really key people left, you know, the program, controls
- 3:19character, safety director, all of these things that happen.
- 3:22So yeah and it's still I mean it still didn't you take me losing
- 3:25critical mass you lose momentum as well that the chronology was
- 3:30in the July of that year. I think July or August.
- 3:33It was clear that we couldn't Continue.
- 3:36And I didn't take over till December, so there's an
- 3:38interregnum, which Simon Wright. Who is the program director
- 3:43acting CEO at the time. Did a really excellent job.
- 3:45Simon actually, but credit time again, as soon as the black hole
- 3:49was developed revealed, I should have left immediately so that
- 3:54lack of momentum was really the critical point.
- 3:57It was a, you know, that moment there were eight or nine
- 4:00thousand people on my project productivity was we measured
- 4:05Immediately, it was like fifteen to twenty percent were spending
- 4:09a hundred and forty million every four weeks on the purpose
- 4:12of the project was stalled. But consuming vast resources,
- 4:17you know, not to be honest, very, very, very difficult
- 4:20situation and he will think that you bitten off more than you
- 4:23could chew when you learned it in there.
- 4:25No, no, because custom in the guts of this project, a
- 4:28fantastic. I knew all about it.
- 4:31I had an inkling cells on the board, really about I think if I
- 4:35could could say, one thing about me, I'm the reason that we
- 4:38brought the collapse occurred was there was me with a couple
- 4:41of colleagues on the board. Said look, we can't continue.
- 4:44So now I knew, I knew the DNA was good and also I was backed
- 4:49by the commissioner, the mayor, the permanent secretary so and I
- 4:54also knew I was going to get on him eggs as my chair.
- 4:58So if you have that sort of backing and you know, a bit
- 5:00about it and you know the projects fundamentally sound.
- 5:04Now I wasn't done that at all. Butter that all about.
- 5:06Yeah, I'm I think, you know, they did one of the reasons that
- 5:09I was members are good choice to do.
- 5:10It was that I already knew about it.
- 5:12I think if somebody landed cold into it while I don't really
- 5:17know what they would have done. Yeah, that's interesting.
- 5:19That isn't it because the that sort of the net that the natural
- 5:22normal response, standard response in that sort of
- 5:24processor at situation is to do precisely.
- 5:26That is to get someone who, you know, has been around the block
- 5:29a bit but isn't involved in that particular organization and
- 5:33parachute them in and get them too.
- 5:35To do their thing. Yeah, I mean, I thought when I
- 5:37landed actually the first thought I had was, could I stop
- 5:40the project could? I could we somehow demobilize
- 5:43the project and restarted? And I thought, well, it's
- 5:46impossible to stop a project until March 20 20 came along and
- 5:49then actually, again, you could do it.
- 5:52But of course, that was a pandemic crisis.
- 5:54So, yeah, it was impossible to stop.
- 5:56They had huge momentum. Nearly 10,000 people on the job.
- 6:00So I think if somebody knew it landed, it would interfere with.
- 6:04The first thing I did was Reinstate the senior team
- 6:07really? Yeah, yeah, yeah, yeah, it's
- 6:09coming. It's not like, I guess it's not
- 6:10easy to hire people back into project locally, there is it, I
- 6:14don't know. Maybe people start to think you
- 6:17might be career limiting to get involved, something like that.
- 6:20Well, two things, it's an iconic project.
- 6:25So I think, you know, even though it was getting B lived in
- 6:28the press, all those who know in the world nor the, this is a
- 6:33real proper job, you know, one of the top Jobs in the world.
- 6:36The second thing was - are reflecting the team.
- 6:39It was a bit simpler than that, really.
- 6:41I simply went to see all of our supply chain Partners CEOs and
- 6:45chairs and said, you're gonna, you're gonna help me.
- 6:49And to a person, you know, whether it's Bechtel, WS P, PR
- 6:53Consulting cost in the whole supply chain.
- 6:57At the most senior level completely came on board.
- 7:01And my, my, my offer to them, was complete transparency.
- 7:05And Try my best. No games, not know, kind of
- 7:08politics there started. The deal was to give me their
- 7:10best people and they did so double the recipe.
- 7:14Mark, when seen Mike Nesmith and asking for a guy called predict
- 7:17massoud of who was inaudible system, integrator had been
- 7:21degraded. The Victoria line was at that
- 7:24moment. Working in Tel Aviv though and
- 7:26within 24 hours, pretty basudev was the head of our system
- 7:29integration. And I think that that's speed of
- 7:34re inflation was Of the, the key thing really do, you knew where
- 7:37to go and find you knew that you knew who to look for and where
- 7:40to go and ask. Yeah.
- 7:41We've made a few mistakes, you know.
- 7:43We, if I hire 300 people, we might have got, you know, 20 or
- 7:4730 people wrong obviously. But yeah.
- 7:51And I guess the other thing about me was my background, my
- 7:54background was predominantly and system integration.
- 7:56So, I kind of knew I knew these people and put the big message,
- 8:01I think. Is that, when, when, when the
- 8:04proverbial did hit the On everybody really came to the
- 8:07party and nobody nobody. Nobody whether you're a
- 8:10politician or a board member or a stakeholder or its supply
- 8:14chain leader. Nobody did not help me nobody.
- 8:18No Berries. So I think good Esprit de corps
- 8:22and I think everybody realized that it was a meant something
- 8:24for the whole country as is evidence.
- 8:26Now you know you look you look at how people think about the
- 8:28project now which is like some kind of Stellar thing and I
- 8:33think we all knew that when it did land.
- 8:35And an open, it would have the absolute wild factor and
- 8:37re-establish our reputation for major programs are.
- 8:40Then there's a question isn't, I mean, this is the kind of debate
- 8:44Kairos, rolls around. They're kind of project
- 8:46management, Universe, more, or less constantly.
- 8:48I could, I think, is it inevitable that big projects are
- 8:51always be late and over budget? You hear people say that but it
- 8:54strikes me as being a bit of that sort of counsel of Despair
- 8:57that really surely. They shouldn't be, something's
- 8:58wrong. That's the case, two things, two
- 9:01perspectives, contemporary perspective.
- 9:03If you look at the research, From Oxford, particularly you
- 9:06will find that. Yes, the vast majority of major
- 9:08programs around the world are late.
- 9:10Another pigeon actually crossrail is 27 percent late and
- 9:14over budget. It's actually not that bad.
- 9:18You would say that that's a contemporary perspective.
- 9:22So you're right. So yeah, in context, really
- 9:25evidence shows, all these programs are letting over budget
- 9:28or their underestimated. To start with one or two.
- 9:31Here's my take them and the reason for Change and Why cross
- 9:35from others? I think three big things are
- 9:39happening in the world now that are really significant in major
- 9:42programs first year. They getting bigger cross.
- 9:45Real used to be the biggest in Europe and the fifth biggest in
- 9:48the world. Now crossrail wouldn't get in
- 9:51the top 10 globally and it wouldn't get in the top three in
- 9:54Europe. So projects, getting bigger,
- 9:57there is a massive rise of digitization massively.
- 10:01And of course, there's a huge drive to NetZero.
- 10:02Now, to me, those Now, mix on top of a situation that you've
- 10:08pointed out that they're all laid anywhere, really calls to
- 10:11change about how you manage these programs because I think
- 10:14they are so big and complex. Now, a new approach that the
- 10:18kind of the big learning, which we can get onto on the cross for
- 10:20others, maybe he's in your approach, but to your point,
- 10:23yeah, every major program in the world seems to have problems.
- 10:26There's something going wrong. Either in the delivery or in the
- 10:30sea say, I mean I suspect that it's know.
- 10:32A lot of it has to do with how much, you know how you asked.
- 10:34Hey, you Estimate these things to start with and it's been
- 10:36pretty, the more surely, the more complex of project is the
- 10:40more difficult. It is to say before you started
- 10:42with any kind of a hope of accuracy how much it's going to
- 10:44cost to do. Ya mean, Kiki fundamental lesson
- 10:49in Cross Rome was setting a singular end date and quite a
- 10:55visible Public Funding envelope. They said December 18 and
- 11:01fourteen point eight billion years in advance and made Very,
- 11:05very public. So when Terri Morgan who I love
- 11:08and there's the so go, wonderful man.
- 11:11Terry when Terry said on time on budget, he was on a singular end
- 11:15date and inform the envelope. And and I think the big big
- 11:18learning, the big learning Ida crossrail is do not set singular
- 11:23end dates, and mmm love, think about more windows of
- 11:26uncertainty. And I've been very lucky.
- 11:28Here's the good news, I would have been very lucky to look at
- 11:32almost every major program in the world actually apart from
- 11:35Whistling in China or Russia. I'm looked at that.
- 11:37But now, nobody is doing across rural.
- 11:40Everybody is in Windows of time and windows of money.
- 11:44And if look at Mark thirst and on edge, just to done a very,
- 11:47very good job. You know, he's no longer has a
- 11:49singular end date of whatever it is 20:27 or whatever.
- 11:52He talks about Windows, I think they have a window of funding as
- 11:55well in which I don't fully understand.
- 11:58So I'll to your point, I think the main catalytic problem is
- 12:03underestimation, And not recognizing the downside risk,
- 12:07but I think austrians changed all that.
- 12:09I think. Now you look at every major
- 12:11program, nobody is heroically driving for.
- 12:14I'm going to, I'm going to Australia for them seeing all
- 12:16the major cities in Australia, over the next 22 weeks, and none
- 12:20of them. Then we're going to open it on
- 12:22the night of December, 20, 2008, you know?
- 12:25Yes, it seems like a good idea when you're a decade away.
- 12:27That isn't it? But I can see it will soon
- 12:29become a kind of millstone around your neck.
- 12:31Yeah, but they don't know the art of major program management.
- 12:34Is how you Maintain that tension.
- 12:36If you've got a few more like a window of time or money and
- 12:39early and late or low and high, and there's a window of
- 12:42uncertainty, the art of project management is to drive the
- 12:48team's to the front edge and progressively narrower the
- 12:52windows and for me that's the thing.
- 12:55The crossrail really unfortunately didn't didn't God
- 12:58we got totally wrong. I mean I recognize a bit of a
- 13:01kind of a Bailey very basic analogy from my own world.
- 13:05Their own deadlines, you know, some writers, when you're
- 13:08commissioning them, you know, they're late and they're always
- 13:11late. So you give them a fake
- 13:12deadline, but after you're done, argued work, and in for a bit,
- 13:15they start to Twig that you're giving them fake deadlines and
- 13:18so the fake deadlines lips lip as well.
- 13:19So how do you avoid that happening in that world?
- 13:22Where, you know, you're telling the team basically that this is
- 13:25the tape and you're telling the world that this is the date.
- 13:27So if you have this idea that you are progressively narrowing
- 13:30and suddenly the lead, the dead is your commitment to your
- 13:33stakeholders in the early. Dead is where you want the team
- 13:36to drive two by two perspectives in the public realm.
- 13:40Transparency is all 0 and if you don't know, you don't know.
- 13:44And I think I think crossrail lost its reputation and your
- 13:49reputation is what do you say times?
- 13:52What you do? Yeah, then on crossrail, on
- 13:55Time, on budget, they lost their reputation.
- 13:57So, firstly on the later date, the that's got to be trusted,
- 14:01you know, you can't have a false deadline to your to your point,
- 14:04you know? So transparency Ultra
- 14:06transparency works, even if it's uncomfortable for leaders, on
- 14:11the early date on driving the, the team to the early date.
- 14:15I'll give you an interesting concept of the really helped us.
- 14:19Crossrail was thought to be a very collaborative place.
- 14:22You know, everyone, 37 little Parts building, a halt, all very
- 14:27collaborative actually values Awards.
- 14:29We went a step further and cross.
- 14:30For all, we went from collaboration to morning the
- 14:33hall. Now, what's the difference?
- 14:35Curren and owning the whole means that everybody's invested
- 14:40in everybody's success or failure.
- 14:42So for example, I used to think of these things as a battle on
- 14:45risk, you know, from other delivery into operation.
- 14:49I now realize that was completely flawed.
- 14:52This is much more like an obstacle course.
- 14:54Tough Mudder, where if somebody gets stuck like an operator or
- 14:59Safety Authority, or a fire engineer, or the regulator, if
- 15:03somebody gets stuck in the mud, There's no point everybody else
- 15:07foraging on because we got to go back and get Bill on Mary and
- 15:11we've all got to cross the line haul together.
- 15:14So for me this was a profound shift in Cross Royal to talk
- 15:19Ultra transparency publicly on the backend downside debt and
- 15:25drive the internal team to own the whole by that the operator
- 15:31and the delivery teams had to agree on.
- 15:35What the requirements were. And they the problem of the
- 15:38Baton person and Allergy is the operator just can't get all of
- 15:41it and you know there's a mismatch in what they want.
- 15:44They want bells and whistles, all this safety, press on the
- 15:46fire brigade, want something else.
- 15:48So I think this, these are quite interesting concepts of how do
- 15:52you maintain the tension in that windows?
- 15:55That were talking? And I think they're both have to
- 15:57happen transparency for the public, owning the whole for the
- 16:01internal. And I think there's something
- 16:03quite interesting in this and Our contractual forms.
- 16:06No, the NEC. And I'll governance that they
- 16:09don't really support this. I think that's another part of
- 16:12the cultural Story. How did nobody detected like
- 16:15kind of historical understanding those projects, got bigger and
- 16:17more complicated. You ended up with these kind of
- 16:20lots of multiple contracts because they were sort of
- 16:22considered to be who, you know, sort of bite-sized manageable
- 16:25chunks rather than kind of wrapping the whole thing in some
- 16:28huge and incontrolable thing. So that, you know, the that sort
- 16:33of fragmentation was done on purpose.
- 16:35Purpose with the intent of making the whole thing more
- 16:37manageable. But actually, but maybe in some
- 16:39respects, you know, achieve the opposite, who are only a few
- 16:43that decision was very cogent, because after the global
- 16:46financial crisis 2010 2011, the market was fragmented.
- 16:50Everybody needs everybody needed a every mouth needed to be fed
- 16:54if you think about 2012, We were part of the Olympics after the
- 16:59Olympics. There is nothing.
- 17:00So, every month had to be fed. So breaking into 37 jigsaw
- 17:05pieces, not a bad idea, right? It might take about what went
- 17:08wrong. If you drew like a 2x2 Grid in
- 17:11your head and on the bottom axis was complexity low to high and
- 17:17on this axis was the need for the client to coordinate from
- 17:21low to high. I think the problem uncrossed
- 17:24real was 37 contracts. Inevitably created huge
- 17:28complexity. So on my, in my 2x2 grid, it was
- 17:31on the right hand side yet. Highly complex for me.
- 17:35Crossville should have been in the top right-hand corner.
- 17:38Hi the coordinating. So, if you've got a lot of
- 17:41complexity crossrail should have been the conductor of the
- 17:45orchestra in quite deep, in intrusion, into the sequence of
- 17:52how things were done. Corporal didn't do that across.
- 17:55Rural was Low coordination. So it was kind of in the my 2x2
- 18:00grid crossrail was in the bottom right-hand corner, highly
- 18:04complex, but generally law coordination because they
- 18:08thought the supply chain would work it out for themselves.
- 18:11It didn't it didn't. So the message for me is to
- 18:16point first of all, don't don't try to complexify it.
- 18:20You know, try to stay low complexity.
- 18:23But if you do have to go to High complexity from various Ins
- 18:27become, highly coordinating. And that's kind of one of the
- 18:29big lessons, the more complex, it becomes the more than need
- 18:34for alignment and coordination from the center and its back to
- 18:38kind of, you know, theories of entropy.
- 18:40And I've said that you've got like the project getting bigger
- 18:43drive to 90 and huge digitization, those Mega Trends
- 18:47are producing entropic on end, Tropic things in programs.
- 18:51I they will tend to chaos without some control and I think
- 18:56CrossFit I think this is well documented really did not call
- 19:01it a lie. I give you the most fantastic,
- 19:03practical example of this 37 contracts and at least half of
- 19:07them had fire engineering serious, fire, engineering
- 19:11requirements. And, you know, you know, serious
- 19:13headers and now again, we had one company a tier 2, called
- 19:17Protec excellent company. Brilliant.
- 19:20The only had 250 engineers and they pretty much had the market
- 19:23in people certified approve, London Fire.
- 19:26Brigade, fire. All those 50 Engineers were of
- 19:29Protech were working for 20 of the tier ones, but the client
- 19:34couldn't see it. So they were being pulled from
- 19:37Pillar To Post. Yeah.
- 19:39So one of the things that we did was we started to coordinate
- 19:42project and people either scarce resources, for a centrally
- 19:45coordinated, IE Paddington first, then Whitechapel instead
- 19:50of them all not fighting for trying to collaborate together.
- 19:54So that's a now to do that, of course.
- 19:56You interfere in the commercial relationship with the tier 1s
- 20:00and the risk transfer. And I think this is a, this is
- 20:03like a really fundamental Point. As complexity went up showed, so
- 20:08did the need for the client to coordinate and one of the big
- 20:12reasons for the collapse of cross Rome and the emergence of
- 20:15a huge black hole was the Unseen effort that the supply chain was
- 20:21having to make that the client couldn't see.
- 20:24I mean yeah I'll give you a mind-blowing.
- 20:26I'm stat, he's a mind-blowing start run, all of these
- 20:29contracts had we called it outstanding Works list element,
- 20:35outstanding works, though. It was a punch list every
- 20:37contract, I'd like a punch list, you know, there were things for
- 20:40defects. You get back to you later.
- 20:43I'm your material non-compliances things that
- 20:47weren't quite right dense indoors.
- 20:48Cracked window opens. You know thought also that man's
- 20:51natural snagging list. In my first six months of
- 20:54crossrail, the new technical, director added up how many they
- 20:58were in the hole. There were 75,000 things missing
- 21:04in Cross from and when you looked at them, a lot of defects
- 21:08are normal things, but a lot of them thousands, tens of
- 21:11thousands were sitting on element outstanding Works lists
- 21:16because they were depending on somebody else or maybe three
- 21:18other people. So the real question is hold on,
- 21:22Mark you On the board. Why didn't you just have a
- 21:24simple measure of outstanding Works list where we didn't?
- 21:27I mean that's a fundamental mistake.
- 21:30We weren't measuring. We thought we were in 97 percent
- 21:33complete. We were 60% Complete because
- 21:36there were 75,000 things off the books that you didn't deserve
- 21:40it. Individual contracts new, you
- 21:42know? Yes, you're Whitechapel.
- 21:44You knew you had 7,000 and But nobody out of the hole back to
- 21:49this concept of owning the whole.
- 21:52And, you know, the minute we realized there were 75,000
- 21:55things to do then that became very serious.
- 21:58Yes, absolutely. But systemic risk, I mean that's
- 22:01like the financial crash. It seems like all those
- 22:02individual Banks, not realizing how much on the hook or the
- 22:05other bank don't want. I'll give you another one about
- 22:09crossrail in terms of risk. You might say this but Mark you
- 22:13are the best in the world and you're on the board.
- 22:15Mark, what were you doing? What are you idiots doing?
- 22:18Well, where was your risk for us as well?
- 22:20Actually, interestingly, these risks were all in our risk
- 22:23registers and we had the most pristine risk process.
- 22:27We had four late for layers of assurance, the best in the
- 22:31world. We spend millions and tens of
- 22:33Millions on Assurance, we had Checkers and, you know,
- 22:36verifiers. So what went wrong?
- 22:38Well to me, cross for a lived in the house of It was like
- 22:43traveling on the desert and you can see the mountain right, the
- 22:45blue mountain range your head. Then you knew that mountain
- 22:48range was going to be difficult to climb but on your walk.
- 22:52In the desert you would write yourselves ever, Fantastical
- 22:55risk, mitigation. So in the house of risk cross,
- 22:59real would recognize outstanding Works list, but we write a
- 23:03mitigation that was never actually happened.
- 23:07It was something like we were all we have a supply chain
- 23:09meeting where we'll ask them about.
- 23:11Out how they're doing, will standardize something over here.
- 23:14They were living in the house of risk putting their effort into
- 23:16thinking. If that occurred, what would we
- 23:19do? They should have really lived in
- 23:21the house of Intervention, which was intervening in what they
- 23:25would intuitively. Know was a problem.
- 23:28So obviously early in 2015 16 somebody should have started to
- 23:34measure the agglomerating accumulating group of
- 23:38outstanding works but they didn't, they kept it in there.
- 23:41Registers, so this idea of how do you intervene rather than
- 23:48just write? A risk is one of them, big, big
- 23:51lessons and I'm going to Australia.
- 23:53And this is one of the key themes because they're the same
- 23:56as crossrail. I've got every Bell and whistle
- 23:58on early warning of assurance. But cross for the ended up
- 24:02within a four billion, pound black hole all because it was
- 24:08masked by fantastic or mitigation.
- 24:11Ins. They have the right.
- 24:13They have the right color project tools in place to they
- 24:15have the right, you know, where they went.
- 24:16When they were obviously weren't measuring the right things or
- 24:18not in not in aggregate anyway. Well, I think they did.
- 24:22They had they had the state-of-the-art know, they had
- 24:24bad, the other state-of-the-art, let me the world's moved on a
- 24:27bit. Now, if you go to like Oxford
- 24:29and there's a lot of AI technology and now but you know
- 24:33they have the whole thing that they were the first people to
- 24:35put them in, they had business in your power, user type of
- 24:40stuff on their data. No, I think what happened is the
- 24:44leadership team created an environment on the board that I
- 24:49was part of where failure was not an option.
- 24:52Another fundamental lesson that I learned through this to
- 24:56succeed means, you have to fill. Failure is an intrinsic part of
- 25:01success. So in an environment where you
- 25:04couldn't fail People started to not measure the important stuff,
- 25:10is it? Hargreaves law or after?
- 25:13Dig it out for the law. When a measure becomes a Target,
- 25:16it no longer becomes useful. So across rural, the measure
- 25:21Terry Morgan would use is a percentage completion.
- 25:24There was a value is valid, it was in place since 2012 and it
- 25:28was basically measuring cubes of concrete and wire terminations.
- 25:31It was the physical state of completion and it became the
- 25:35measure and The in the last board meeting before it all
- 25:38collapsed crossrail was 97.1%. Complete it wasn't.
- 25:43It was 60%. So that is the classic thing
- 25:45where everybody's got the wrong measure.
- 25:48The became a Target. Yeah, and that was partly
- 25:51because they were measuring the wrong things and perhaps because
- 25:56they underestimated the scale of the kind of integration side of
- 26:00it to that that I mean, the guys with the guys are in there goes,
- 26:04our civil engineers and they are guess.
- 26:05So they've thought that digging the tunnels is going to be the
- 26:07hard bit, the real, another Insight I'd give you would be
- 26:12the the guts of the machine where okay it was more.
- 26:16It wouldn't be fair to say this is all a bunch of civil
- 26:19engineers, trying to wise to vote more likely that at the
- 26:22very, very top including the board that I was part of we were
- 26:27not curious enough, we just weren't curious enough and we
- 26:30might have maybe had a bit of a heroic style.
- 26:34I think the modern the modern project leader We'll manage
- 26:37Windows about like we said for the mud, the modern project
- 26:40leader will be comfortable with uncertainty and gaps and will be
- 26:43curious and somebody could have asked the question, couldn't
- 26:46they look? Well um how are we going to
- 26:50integrate as many? I'll give you a great, a great
- 26:52example of this in our safety case.
- 26:56There are two hundred thousand documents in our city.
- 26:58Guest 200,000 here, you can imagine what they are and if
- 27:01they build up like a pyramid and the end in one final City case
- 27:05like a pyramid Paul. Classic system engineering
- 27:07career really, very, very good. Unfortunately, if the does you
- 27:11got to the top of the mountain, nobody's ever, thought about how
- 27:15you would actually integrate the real way in testing it all of
- 27:19the effort has gone into the the structure of the poem in this
- 27:24virtual pyramid rather than thinking.
- 27:27Well how are we gonna prove that these things aren't right?
- 27:31You know and there's many many examples I just like we thought
- 27:34that the software The trend management software might need
- 27:3945. Jobs, you know, upgrades between
- 27:43Siemens and Bombardier, there might be four or five hops, it's
- 27:47been 70 or 80. We've climbed, we've climbed the
- 27:49software Mountain, 10 meters at a time.
- 27:53Tiny incremental steps, keeping everybody in harmony.
- 27:56It was back back to this idea of in high complexity, the client
- 28:00needs to be highly coordinating. I mean, that there's something
- 28:03fundamental about, you know, the more complex, these systems are
- 28:06more complex only and they, you know, complex systems go wrong
- 28:09and complex ways I guess. And so they need a lot more
- 28:11testing. We need to verify check.
- 28:14If you buy the concept of the fact that we should try and
- 28:18minimize complexity, let's just hold that, right?
- 28:21It's a good idea to minimize complexity, simplify on
- 28:25crossrail, since Adam was allowed having three different
- 28:29signaling systems, was always going to be complex.
- 28:31It's the most complex in the world.
- 28:33There's no way around it. It's it was always going to be
- 28:37off the scale. So for me, that meant Aunt.
- 28:41Everything else had to become simpler to leave you with the
- 28:45core of what was always going to be an epic integration Challenge
- 28:50on cost roll. Unfortunately, he's another key
- 28:54lesson. The client design in 2014, 15
- 28:59was running late. The client was doing the basic
- 29:01design and then the individual contractors were going to do the
- 29:04detailed design. This is like mechanical
- 29:06electrical equipment. The fire alarm, do you know all
- 29:08the details that and the client does I was running late, but
- 29:12unfortunately, instead of pausing the program around 2014,
- 29:1615 to take a breath finish, the client design to allow the
- 29:21supply chain to modularize their design, make it simple, you
- 29:24know, build it in a factory. Bring it to side and plug it in.
- 29:28They didn't they? They commence the stage of
- 29:31detailed design before the client ID really finish theirs.
- 29:35And that was because they knew they were trying to get to this
- 29:38endless really tough ended. So as early as 2014, Teen.
- 29:41There was massive stress and program and back to complexity
- 29:46that that was, that was a big mistake because the minute
- 29:49everything started to get complex, it even started to come
- 29:52back into the signaling system because it's on India, it's a
- 29:56single integrated system. So what should happen is in
- 29:592014, every should have recognized that the signaling
- 30:02was going to be really hard. We must modularize everything
- 30:05else which would have meant, probably a nine months, a bridge
- 30:09in 2014 15. It would have taken a brave
- 30:12person though in 2014 15 to say that they couldn't recover it.
- 30:17Yes, yes, interesting. Guys in it.
- 30:19So it's a bit of a lesson for projects is to identify the
- 30:22places that you cannot be. There are irredeemably, complex
- 30:27and identify those. And then try and simplify
- 30:29everything else around them as much as you can.
- 30:31That's performed. I mean, you said that, I think
- 30:34might be one of the most important lessons in the whole
- 30:37of nature programs in the world. Which of course, the audience.
- 30:40Street learned for years, you know this is like a thing that
- 30:44the oil industry and the IT industry have been doing for
- 30:47years where they modularize what they can and they they they know
- 30:52some things are going to be like a moon landing, you know?
- 30:55But we know crossrail. We've ended up with Incredible
- 30:59complexity in things like the, The Lighting systems of the, the
- 31:03station's, you know, really complex stuff when it's just
- 31:07written a bit lower. Yes, interesting things but
- 31:11interesting those told him about no come come to the time it took
- 31:13a bit about you and your kind of background and your your career.
- 31:19You sound like you sound like you're from County Durham.
- 31:21Oh, very good. Very, very on Adam Cole - Sun
- 31:30literally and my dad worked down the mines pit Village called Ash
- 31:33winning in Durham. So I grew up in a you know,
- 31:38classic Working class family. My dad was a miner, their minds
- 31:43were in the great, you know, but this is the kind of guy was born
- 31:46in 65. So my dad went all through the
- 31:50tumultuous times in the mines, right up to the, the end of it
- 31:53all and during, which is kind of like 70s and, you know, as you
- 31:57know, in the mines and engineers and important things for my dad,
- 32:00always wanted me to be an engineer.
- 32:02So, I became an engineer went to Newcastle Polly, didn't really
- 32:05do very well. In my, a levels, went to the
- 32:07polyfill electrical engineer. Was probably a bit of a late
- 32:10starter academically did quite well.
- 32:12The poly became joined the electricity industry.
- 32:16So I spent the first kind of ten years of my career kind of 85 to
- 32:2187 to 97 in the utility industry.
- 32:25Engineering projects. I mean Margaret Thatcher is not
- 32:29quite my politics but you did do one thing for me but she
- 32:32privatize the electricity industry and Berkshire Hathaway.
- 32:36Warren Buffett's company bought But leap not electric which
- 32:41opened up the possibility of international travel and getting
- 32:44away from the regulated wires business.
- 32:46So I went in the non reg business ended up in Railways.
- 32:52Recently read put the power supply in for the southern
- 32:56region. Working for Andy Mitchell.
- 32:59Went to Westinghouse signals ended up running Westinghouse
- 33:02signals, which was part of inventors, which is a bigger
- 33:05signaling company. The world seems bored and vents.
- 33:08So I left re signal the Jubilee line, then I went to Australia
- 33:15and I run all of the public transportation in Melbourne.
- 33:18Big state of Victoria Australia. Well, kind of it was kind of a
- 33:22bit my Wilderness years really. I'd left invents this because
- 33:25Siemens came in, I done said, work for Talus on the Jubilee
- 33:29line and I guess I was at the time in my career that I
- 33:33realized that, I wanted to be a more general leader and I didn't
- 33:37have much operational experience.
- 33:38Audience, you know, I so I went The Treasure of Oz was just, you
- 33:42know, new jurisdiction and it was a great place to live and
- 33:45you got got my hands on the whole of the state transport
- 33:48Network. You know, the trams, the trains,
- 33:50the buses, the furries that was just fantastic.
- 33:52So for five years then I was running all of their public
- 33:57transportation working for the government time in the Private
- 34:00Industry and timing public sectors important.
- 34:02You know, because you just don't have preconceptions about what
- 34:05the private sectors like other public sectors.
- 34:06Like, but you really want to do both nothing.
- 34:09So I went to the government of Australia, then opportunity came
- 34:13up to run the tube, you know if you're a railway person running
- 34:16London Underground so Mike Brown, invited me back to run
- 34:20London Underground, which I thought was like the best job in
- 34:23the world, you know, running the tube and then I was quite happy
- 34:28until in 2017. I was on the board of cross
- 34:32Royal and pretty much from Led 17.
- 34:35It was obvious to me that there was real problems in this.
- 34:38Program. And again, Lessons Learned we
- 34:41probably should have acted six months earlier than we did.
- 34:44But ultimately, you know, I was quite sad to leave the tube
- 34:49really but but, you know, the the prospect of delivering
- 34:52Elizabeth on and now obviously, that's a backfield, my job, the
- 34:56other great guy called Andy Lord, I was always going to
- 34:59leave when we open the Elizabeth mine.
- 35:00I think we've had a good three and a half years doing that.
- 35:03And now for me, I'm interesting heading back to the utility
- 35:06sector where next well I'm gonna become the sea.
- 35:08You of sgn who are one of Britain's for Gas Distribution
- 35:13Company that's selling guest Network Star Wars, isn't it?
- 35:15Yeah, well I'm Scotland. The SEC is is actually Scotia.
- 35:18So it says she's got all the Scotland and Southern England
- 35:22and the reason for that is one way of Learners, you going back
- 35:24to utilities Mark? Well, it's a good business, big
- 35:27scale, business operationally. But the attraction for me is
- 35:30energy conversion Drive. Nancy were the hydrogen question
- 35:35is so for me, What I've liked most of my career was solving
- 35:39really complicated puzzles. You know, so I think getting
- 35:43back into energy is just quite cool.
- 35:46So I'm really looking forward to if I'm still going to keep my
- 35:48hands fingers in major programs. And I've learned so much out of
- 35:52crossrail, I really think the case is there for change in how
- 35:55we manage major programs. Really think it's there.
- 35:58So will you I mean, it's like, well, that be, you know, part of
- 36:01what you do, do you feel that the sort of driver
- 36:04responsibility to try and kind of pass on the message?
- 36:06It's because I think Another thing I do talk quite a lot of
- 36:09people about lessons. They learned from projects and
- 36:12they always seem to be quite a lot of them are quite profound.
- 36:15Well, I think about me as a person engineer project manager
- 36:19and what I'm really here for me. I've enjoyed doing these jobs
- 36:21and they've been growing all enjoyed being the CEO of sgn.
- 36:24But really what I think I'm here for is exactly that.
- 36:26I don't think I'm here for. How did a working-class kid from
- 36:30a privilege in Durham get to where I am?
- 36:34There's a bit of talent there but there's a hell of a lot of
- 36:36look. I think my purpose is to make
- 36:39sure we are representation in engineering of everybody and
- 36:43fundamentally where we started this conversation.
- 36:46I think the world of major programs is getting
- 36:48exponentially more complex, which brings a new leadership
- 36:52style. So yeah, the thing I'd really
- 36:53like to focus on outside of kind of my work is, how do we create
- 36:59a new way of leading major programs and engineering.
- 37:03What kind of leader? What sort of person do you?
- 37:05What kind of qualities do you need to be a leader in that kind
- 37:08of increasingly complex, environment person could work
- 37:11from Andrew McNaughton that I've been contributing to your, for
- 37:14the i.c.e. on systems thinking and because they know, first of
- 37:19all, what it isn't? It isn't the heroic leadership
- 37:21style of one person at the top knowing everything.
- 37:23That's not, not the right and wrong.
- 37:24So the modern leader will be curious.
- 37:29Will understand uncertainty will understand that there are some
- 37:32Things that are unknowable but we'll work hard to minimize
- 37:36that. The leader will be.
- 37:38Somebody who is an environment is created, where there is no
- 37:43fear the environment where truth to power where my big learning
- 37:48across rural. One of them is even the most
- 37:51epic problems we got. As soon as it became
- 37:53transparent, the team, we had the convening power and the Epic
- 37:59horse power of the team could solve it.
- 38:01The problem was surfacing the You.
- 38:03So leave us to the future will be incomplete and somewhere.
- 38:06As they will understand that there are gaps and they will
- 38:09create environments where those gaps are spotted and people were
- 38:13collegiately owning the whole. So this kind of leadership style
- 38:17is it's kind of a bit different, really?
- 38:20It's more people who can convene and align people to
- 38:24breakthroughs, rather than a singular person.
- 38:28Heroically leading the charge, I'm being a bit kind of
- 38:31stereotypical. So listening is important on.
- 38:35I think, you know, you talk about the archetypal, modern Lee
- 38:37modern project leader, they'll be good, active listeners, and
- 38:41they will be able to web sent their ego from The Challenge.
- 38:46There's, this is quite profound to me the days of egocentric
- 38:50leadership Grover. And I don't mean, I don't mean
- 38:53people were bullies and aggressive.
- 38:54I just mean the process of absenting yourself from a
- 38:58problem and become inconsiderate.
- 39:00And thinking of everybody sings and ultimately The boss is there
- 39:03to make a decision? Ultimately, I was the CEO how to
- 39:07make the decision but I'd rather an informed decision that came
- 39:11from a sense of consensus and everybody looked at a 360.
- 39:14The trick is, how do you have how in that in type of
- 39:17environment? How do you stop procrastination?
- 39:19Which goes back to living in the house of intervention rather
- 39:22than House of risk. Absolutely.
- 39:25Yes, yes, absolutely. In there are more dismal
- 39:27auditions have more decisions to be taken more quickly.
- 39:30The more complex Things become But this is talk about how, you
- 39:36know, the pandemic might have changed well kind of combination
- 39:39of pandemic in climate change. I suppose it's changing people's
- 39:42Mobility patterns. Maybe people will be moving
- 39:44around less and they'll be more digitally connected rather than
- 39:47kind of physically connected to think that.
- 39:49What does that does that make a difference too?
- 39:52Well to project La Crosse world that have already been done?
- 39:54And to think like a chess to the hostel in the part 1?
- 39:57Well, no doubt, no doubt there's been a disruption as no, no
- 40:00doubt, I think a positive disruption or people.
- 40:02Going to be help healthier and happier by having a better
- 40:06work-life balance. But but for me, I still believe
- 40:10in must transportation. And the agglomerating affecting
- 40:13crossrail will produce 42 billion pounds of economic
- 40:16benefit. You look at wallet, she took a
- 40:17bullet or in your work, what's happening?
- 40:19Well it's not for me, they'll undoubtedly be a delay.
- 40:23You know it'll there's a slug Something's Happened, you know,
- 40:26in the next two to three years, but we've gotta cross role for a
- 40:29design life of 120 years but it'll be here in 250.
- 40:32Yes. I mean, you know, been in 200
- 40:34years time, I mean, who knows what I did, but I do know that
- 40:39the cross rail tunnels will exist.
- 40:41What about the kind of leveling up?
- 40:42Question wouldn't believe been better spent kind of in small
- 40:45doses, all around the country instead of one big dollop in
- 40:49that I'm young. So a majority you know I know I
- 40:53know buddy. Nobody cares more about where I
- 40:56come from the me, you know, and I'm very proud but I'm also
- 41:02understand this. And the only reason crossed real
- 41:04can get built is the densification of activity.
- 41:09And that's why Crossroad produces 42 billion pounds of
- 41:11real economic benefit. Also London, London creates 25%
- 41:17of the UK's GDP but more fundamentally in Cross Rome,
- 41:2275,000 people worked on it and we think at least 40 or 50,000
- 41:26and never came to London. And, you know, the signs are
- 41:29manufactured in the Isle of Wight, the doors came from
- 41:32Cheshire. Sure, the drones were men and
- 41:34Darby 60 or 70% of it came from small to medium Enterprises
- 41:40outside of London in the UK. But for me, the narratively
- 41:45people have got to understand that the economic generator of
- 41:48the Elizabeth line is for the whole country, particularly for
- 41:51London, Southeast peaceful country and secondly, building
- 41:55spending 20 billion quid billions went into local
- 41:59economies. So I'd know I Spy That's not to
- 42:04say, we shouldn't have great transportation in the north and
- 42:06you know, they're like the transparent upgrades really
- 42:08fantastic program and the latest work on buses in Manchester
- 42:12looks fantastic. But in major programs coming
- 42:15out, I really hope that we get on the size while.
- 42:17See, you know, I really hope that and when size won't gets
- 42:20built it'll benefit the Suffolk Coast but I'm sure whoever
- 42:25builds it will will be a huge, huge pipeline in.
- 42:29And I think that's why, by the way, Andy Byford is such a
- 42:32Fantastic, commissioner for London and I really hope she
- 42:37gets a sustainable Capital deal because a vibrant London is
- 42:41essential and that's coming from a working class.
- 42:45Boy from Adam pit villager. I understand that a vibrant
- 42:48London is absolutely essential. Yes, there's a sort of, there's
- 42:52a polarity developing in the kind of debate about everything
- 42:56everywhere isn't there, which is kind of damaging, really?
- 42:58It's not either, or it's both isn't it, the kind of who knows
- 43:02together. And what kind of mold and we all
- 43:04report saying? Well, that was fascinating, I
- 43:08really enjoyed to. Thank you.
- 43:09Thank you very much. Thank you very much for your
- 43:11time today. Thanks to mark for taking time
- 43:19out to join, Andy and conversation and to you for
- 43:21listening to this podcast for extra content from Mark.
- 43:24Look out for the Autumn edition of apm's project Journal, which
- 43:27is arson September. If you have any comments,
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- 43:34publishing .co.uk, this podcast has been brought to you by APM
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