Successful Project Management: Expansion of Green Hydrogen Systems A/S Headquarters

Introduction

As a consultant at Enabl A/S Consulting, my role continually challenges me to contribute effectively to customer projects. I reflect on a pivotal experience, where I was thrusted the role as project manager leading the expansion of Green Hydrogen Systems A/S (GHS) headquarters. This entailed an ambitious project—adding 8,000 sqm of production halls and 6,500 sqm of administrative space—started in 2021 and advancing under my guidance from spring 2022. This experience allowed me to use my project management skills while adapting to new challenges in a dynamic environment.

Objectives and Initial Setup

In my role as project manager, oversight extended across safety, budget, progress, and quality. While critical elements like floor plans were already in place, several key decisions awaited, such as the placement of electrical installations, kitchen setups, and material selections. However only the foundations for the production halls were in place in the spring 2022. As with many projects during uncertain times, we faced significant challenges due to rampant inflation. Our ability to foresee and decisively address these issues enabled us to keep budget overruns insignificant and maintain project momentum.

Our primary objectives included:

• Utilization of new facilities by 2023—ideally ahead of schedule.
• Staying within budget amidst an uncontrollable inflationary environment.
• Constructing added spaces that seamlessly integrated with existing structures.
• Ensuring zero incidents onsite, prioritizing health, safety, security, and environmental (HSSE) considerations.

Project Dynamics and Execution

Transitioning from my background as a mechanical engineer to a civil project manager required me to quickly gain proficiency in construction nuances. Central to our strategy was following best practices in project management, an efficient core team collaboration, and leveraging the experience of our civil EPCM partner, K&T.

Strategic Insights from Leading Experts

In assessing the project’s success, I resonate with principles from Bent Flyvbjerg’s and Dan Gardner's heuristics in "How Big Things Get Done." These heuristics provided a comprehensive framework for better project leadership and ensured that our large-scale project was planned and executed effectively.

Heuristics Applied

1. Hire a Masterbuilder: We secured K&T as our EPCM partner, bringing their vision and extensive experience to the project.
2. Get Your Team Right: Our team and steering committee were composed of complementary skills crucial for the project. This included the GHS Technical Operations Manager, GHS Facility Manager, K&T Civil PM, and me, the GHS Project Manager.
3. Ask "Why": Constant queries about the project’s purpose, goals, progress, quality, safety, solutions, and costs ensured alignment within the project group and steering committee, facilitating a cohesive effort.
4. Build with LEGO: We approached the project by thinking in modular terms, breaking it down into smaller, manageable pieces. This modular approach allowed for flexibility and easier adjustments as needed.
5. Think Slow, Act Fast: We committed ample time to thorough planning and deliberation. Once plans were set, quick and efficient execution was paramount.
6. Take the Outside View: We used lessons from past projects and considered external perspectives. This comprehensive analysis helped avoid common pitfalls, enabling more informed decision-making.
7. Watch Your Downside: We diligently identified potential risks and challenges. Early procurement of materials and continuous risk assessment were strategies implemented to manage and mitigate risks effectively.
8. Say No and Walk Away: Elements deemed unviable were tailored out or removed to control costs. This disciplined approach prevented unnecessary expenditures and aligned project scope with realistic objectives.
9. Make Friends and Keep Them Friendly: Strong relationships with all stakeholders were fostered and kept. Positive engagement throughout the project ensured cooperation and support, vital for overcoming challenges.
10. Build Climate Mitigation into Your Project: Sustainability was a key consideration in our project design and execution. Solutions for temperature control, ventilation, light regulation, added insulation, and solar panels integrated environmental concerns and long-term viability.
11. Know That Your Biggest Risk is You: Awareness of my own biases and limitations as a leader led to a reliance on the diverse skills within our team. Seeking feedback and making fact-based decisions mitigated personal biases.

The Achievements

The application of these strategic principles ensured that we met and often exceeded our project goals.

Production halls began being utilized successively ahead of the final deadline, adhering to and even exceeding timeline expectations. This success was largely due to our EPCM partner's adept schedule management and their understanding of the importance of open collaboration on project value and the needs of a growing production company.

Economy

Strict financial control ensured budget and contingency funds were fully utilized but effectively managed. Our early material ordering and ongoing scope optimization allowed us to outperform market conditions, keeping costs within limits despite inflationary pressures.

Value Added

We achieved substantial value by not only meeting, but surpassing the project's initial goals. This included:

• Constructing 8,000 sqm of production and warehouse space.
• Adding 6,500 sqm of administrative space.
• Establishing surrounding infrastructure and driveways.
• Seamlessly connecting new and existing buildings, optimizing the flow and functions of people and materials.
• Maintaining the same high design quality as the existing HQ, ensuring consistency and functionality.

HSSE (Health, Safety, Security, Environment)

A commendable safety record with zero incidents was achieved. This success was due to the active involvement of all organizational levels in supporting a safe work environment. Immediate reporting of risk behaviors and high visibility of the GHS PM and staff on the construction site fostered a culture of safety. Both formal and informal engagement driven by curiosity and dialogue created a secure construction environment.

Lessons and Reflections

Leading this project as a civil PM offered enriching insights beyond my mechanical engineering background. By applying thorough strategic management principles and building a robust, skilled team, we navigated complex challenges and delivered successful outcomes.

Continuous Improvement and Learning

An essential part of the project's success was the commitment to continuous improvement and learning. Evaluation was started early enough to allow for quick responses to any issues arising. Discussions around comprehensive solutions ensured informed decision-making and prompt actions.

Stakeholder Management

Stakeholder management was a top priority. My relationships with stakeholders were built on the actual work we had to do, and this practical foundation led to strong, cooperative alliances that supported the project's success. The proactive support from the GHS basic organization in addressing potential HSE risks further strengthened these relationships.

Sustainability and Future Implications

While sustainability was an integral part of our considerations, it should be emphasized that these measures alone are not a guarantee for project success. However, addressing sustainability is crucial for modern projects and aligns with long-term goals of environmental responsibility—an important focus articulated by Bent Flyvbjerg in his heuristics.

The added insulation and solar panels, though not the defining factors of project success, contributed to the facility’s overall energy efficiency and environmental impact. These measures set a precedent for future projects, highlighting the importance of integrating sustainable practices into large-scale constructions.

Conclusion

The expansion of Green Hydrogen Systems A/S stands as a testament to effective project leadership and collaborative effort. By keeping strategic focus and alignment with best practices derived from leading experts, we not only met but exceeded project goals, demonstrating remarkable success in a demanding environment.

For those interested in delving deeper into project management excellence, I highly recommend Bent Flyvbjerg’s book, "How Big Things Get Done," for its rich insights and practical heuristics that can transform project practices.

Acknowledgments

I extend my gratitude to the GHS team, our EPCM partner K&T, and all stakeholders for their invaluable contribution and unwavering support throughout the project's lifecycle. This collective effort has culminated in a successful expansion, setting a high standard for future endeavors.