From iconic design to lost luggage: Innovation at Heathrow Terminal 5
This paper aims to contribute to understanding of how organizations respond to risk and uncertainty by combining and balancing routines and innovation. It shows how approaches to risk and uncertainty are shaped by the contractual framework in large multi-party projects. The paper addresses a gap in the literature on how risk and uncertainty is managed to deliver innovation in large-scale megaprojects. These megaprojects are notorious for high rates of failure that conventionally evoke organizational strategies avoiding risks and uncertainties. Yet strategies for managing risk and uncertainty are essential to the routines and innovation that overcome the challenges of successfully delivering large-scale, complex projects. Efforts to eliminate or minimize risks must take advantage of standardized, repetitive and carefully prepared routines, processes and technologies. However, emergent events and problems encountered during the project also require innovative, novel or unique solutions to keep the project on track to successful completion. Therefore, managing risks and uncertainties in megaprojects involves finding a judicious balance between performing routines and promoting innovation. The research setting for this study is London Heathrow Airports Terminal 5 (T5), and a 10-year research study into its planning, design, construction and operation. T5 was a large and highly complex project, with a budget of 4.3 billion and involving over 20,000 contracting organizations. The T5 project used a contractual framework that differed considerably from industry norms, and encouraged collaboration, supplier responsibility and shared risk. The project was delivered to budget and on time.
Year of publication: |
2009-01-01
|
---|---|
Authors: | Davies, Andrew ; Dodgson, Mark ; Gann, D. |
Publisher: |
DRUID |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Dynamic capabilities in complex projects : the case of London Heathrow Terminal 5
Davies, Andrew, (2016)
-
Innovation Strategy in New Transportation Systems : The Case of Crossrail
Dodgson, Mark, (2015)
-
Five rules for managing large, complex projects
Davies, Andrew, (2017)
- More ...