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Organization

We design project organizations and owner’s teams, support capability building, and help implement management processes that enable project success.

What we do

Effective and efficient organizations are a critical factor in the successful development and execution of individual megaprojects as well as the successful delivery of a portfolio of capital projects. An open, collaborative, and result-focused environment enabled by tight performance-management processes is critical to long-term success, regardless of the contractual setup between owners and contractors. Across industries and asset classes, we help clients with:
  • megaproject organization effectiveness
  • central project organization design
  • project governance and stage-gate processes
  • talent management and capability building

Our global experts work with organizations to assess and understand what the “right” size and composition of their teams and organizations should be and what best-practice resource selection looks like. We design organizations and team structures that match the scope of a project, the contracting strategy, and the complexity of a client’s portfolio. We also take a holistic look at their existing teams to identify talent gaps and develop actions plans for recruiting or developing talent. In addition, we help put advanced, innovative tools and processes in place to streamline processes and enable a more rigorous approach to decision making.

Examples of our work

We have experience in organization transformation ranging from large multinational companies to small- to medium-size companies. We work with project owners; engineering, procurement and construction companies; and construction contractors. Specific experience includes:

  • Helped a European steel company to redesign processes, conduct a talent review, and restructure its governance after it had begun to experience a decrease in performance. As a result, the company made strategic investments in organizational health and talent and has seen a notable turnaround of project performance.
  • Restructured the project team on a megaproject power plant that resulted in higher transparency and alleviated schedule and execution challenges generated by the previous structure.
  • Helped one of the largest megaprojects in the world to redesign its execution-phase owner team to significantly reduce costs while ensuring an effective team and reliable delivery.
  • Redesigned a large, integrated stage-gate process for an oil and gas company. The redesign improved the quality and efficiency of stage-gate evaluation and decision making through project completion.

Featured capabilities

McKinsey has a suite of diagnostic tools, including:
  • Capital-excellence diagnostic. Rapid assessment of a client’s capital capabilities and performance across the full project life cycle from capital-allocation strategy to execution.
  • Quick assessment of capital-project organization structure. Assessment of overall functional capability intended to identify organizational strengths and challenges, with a focus on capabilities, organization design, processes and tools, and governance.
  • Organizational Health Index. Comprehensive survey of an organization across nine dimensions of performance and health, harnessing McKinsey's deep research and experience on organization and curated database of benchmarks. We offer versions specifically tailored to engineering and construction companies, central project organizations, and individual capital projects.
  • McKinsey Investment Readiness Assessment (MIRA). Structured assessment of a large capital project’s investment readiness (or readiness to proceed to the next stage) based on targeted analysis, interviews, and document reviews across the technical, execution, financial, political, and organizational aspects of a project.
  • EPC360. Benchmarking framework that helps enhance the end-to-end performance of engineering, procurement, and construction (EPC) companies.

FEATURED EXPERTS

Jason Green

Partner, Calgary