Managing Director & Senior Partner
When capital projects succeed, so do societies. BCG integrates digital and organizational innovations into the processes that support such projects, reducing coordination challenges, accelerating completion, and increasing ROI.
BCG works across diverse sectors to create better systems for large capex projects, systems that change the way owners and contractors work together to improve outcomes and resolve complexity. By applying proprietary methodologies, we help to provide digitally enhanced visibility into schedule and quality issues, coaching teams on ways to quickly align, solve problems, and advance projects.
The risk types and complexity of large capital projects vary widely. Many are government-sponsored initiatives of vital importance to society. Our depth of experience in applying digital innovation to organize the vision and effort of stakeholders has solved complex problems and instilled new ways of working that make all the difference.
Our work includes:
Our most common consulting scenarios address:
Projects in Distress
BCG helps overhaul the project delivery process, introduce offsite construction options, restructure contracts, and integrate digital innovations, such as project management software and predictive analytics that reduce operating costs.
Capital Portfolio and Program Management
We help clients align their capital portfolio with their strategy, cutting out waste in small and midsize projects. Using the right mix of tools, we work on the ground to ensure that the necessary change management is in place to optimize value on all levels.
Major Project Assurance
We first identify opportunities to improve productivity and commercialize assets, then prioritize the opportunities in order to select the best option, ensuring adherence to schedule, budget, and quality. Because this work begins in the early planning stages, quality of construction, working conditions, sustainability, and time to completion are all optimized.
Enterprise Capital Transformation
Enterprise-wide systems must strike a balance between adhering to standards and tailoring to project specifics. We assist our clients by understanding the frictions created by the process and setting up systems that drive collaborative, creative problem solving.
We leverage a variety of tools and solutions to turn around, solidify, or transform major capital projects. Applications include:
We worked with a major global oil company on a capital project to design, engineer, and build a large-scale offshore drilling program to be deployed over a period of 20 to 30 years, with capex of more than $200 billion. Our analysis led to the implementation of several capex optimization initiatives for offshore fields, such as project management offices, that reduced program costs by 15% to 20%.
For a European EPC contractor focused on contracts in power and utilities, as well as oil and gas, our work resulted in a 30% reduction in use of overall contingencies. We partnered with our client to deploy a new capital program management toolkit that allowed for early detection and management of risks.
At the time we were engaged, there were fewer than 100 days left until the announced delivery date of this €1 billion–plus public-transit project. We immediately set up a war room to get a clear view of the overall schedule and the remaining work. To accelerate project completion, we quickly formed individual command centers for each subproject; there we assessed risks and optimization opportunities. Our work led to an eight-month reduction in time to project completion and more than €15 million in cost savings.
Behind “think big” is transparency and collaboration. That’s how BCG conceives a successful large capital project. Let’s think big to make big things happen.
Teams must build five capabilities to overcome the odds.
BCG’s Helen Quirke presents the two systems necessary to ensure that value optimization is a priority.
Worksite productivity is still stuck at 1990s-era levels. Applying new technologies and lean principles at the bottom of the organization can boost output dramatically.
During price upturns, companies often indulge in bad behavior, such as “window dressing” capital projects with overly optimistic cost and completion assumptions—jeopardizing project performance.