Read the case study below and answer ALL the questions in this section.

THE ART OF PROJECT LEADERSHIP

Capital investment drives economic growth. Across all industries and sectors$,$ the intelligent and efficient deployment of capital is a cornerstone of sophisticated and sustainable business decision making. However, the link between capital investment and return is not guaranteed; substantial capital is often wasted on value$-$neutral or even value$-$destructive business cases. Similarly, the quantum of capital that is invested does not always correlate to the size of economic growth generated; complexity increases exponentially with greater investment, and ultimately can lead to poorer returns on invested capital$$this is not only important for the companies involved, but also the economies in which they exist. Large capital projects play an increasingly important role in the global economy as investors deploy capital to deliver returns in ever more challenging technical, social, and environmental situations.

The term $$megaproject$$ denotes a construction project above the US $$1$ billion threshold. As the size of capital projects rises, these multibillion$-$dollar investments combine unparalleled complexity of strategy, design, financing, procurement, and, ultimately, project execution. We have chosen to focus this report on a new subclass of capital megaprojects, which we refer to as $$ultra$-$large projects$$the largest and most complex of capital projects, with budgets exceeding US $$5$ billion, and timeframes exceeding five years. These characteristics bring unique complexities associated with the scale of the project: multiple complex interfaces with stakeholders such as local communities and government bodies, new regulatory and environmental requirements, and often unique technological challenges.

When we refer to $$ultra$-$large projects$$ we choose our language deliberately. We assert that an $$ultra$-$large project$$ is as different from a megaproject as an ultramarathon is from a marathon. A marathon, at a little over $42$ kilometres, is a substantial challenge$$yet many thousands regularly complete the distance, and they generally prepare for it by covering the full distance in training. They stand on the start line knowing that they will likely finish. An ultramarathon, at up to $100$ kilometres, is exponentially harder$$every additional kilometre necessitates greater physical and mental conditioning, with increased risk of injury. You can never really train for the full distance of an ultramarathon; because of the enormity of the challenge, you stand on the start line never quite knowing whether you will finish, much less of your expected result. Only a select few know what it$$s like to complete an ultramarathon. Similarly, an ultra$-$large project, with a multibillion$-$dollar budget and a multiyear duration, represents an exponentially tougher challenge than a typical ~ US $$1$ billion megaproject. It is the preserve of the few.

The impact of these ultra$-$large projects is vast: often changing industry supply and demand fundamentals, demanding changes to the regulatory environment, and even driving regional geopolitical tensions. Financial investments of this magnitude can have existential or market shifting implications for the organisations that are executing them. Faced with the prospect of such substantial value destruction, it is essential to understand the root causes that drive the under$-$performance of large projects. The failures in the core processes of project under$-$performance are well understood post project reviews generally audit the systems, process, and project management root causes for overruns. However, the disruptive influence of failures in project leadership, ineffective culture of the project organisation, failed mechanisms of collaboration between multiple parties involved$$and their increasing importance as the scale and complexity of projects increase$$are typically not examined to the same extent.

QUESTION $1(40$ Marks$)$

$1\mathrm{.}1$ As highlighted in the case study, large capital projects play an increasingly important role in the global economy as investors deploy capital to deliver returns in ever more challenging technical, social, and environmental situations. Critically discuss the merits of utilising the project management model in delivering organisational objectives. Make use of relevant examples. $(20$ Marks$)$