Tag Archives: teamwork

The Titanic: a project management disaster

The Titanic (public domain image, taken from Wikimedia, by F. Stuart).

Few days ago, I attended a conference on an example of a project management disaster: the Titanic, the British ship which sank in its maiden trip from Southampton to New York in 1912 causing the death of above 1,500 passengers, above 2 thirds of those aboard.

[The conference was part of the same cycle of which I attended another one about 2 months ago about the success of the management project for the delivery of the infrastructure, design and construction of buildings, transport and the legacy of the London 2012 Olympic Games (I wrote about it here).]

Learning from a well-known disaster, as opposed to a success, made the audience more eager to listen to Ranjit Sidhu, a consultant who has made extensive research about the Titanic and has written the book “Titanic Lessons in Project Leadership“.

She was going to focus the conference on 3 sides of project management: communication, leadership and teamwork (1), and the problems which each of those originated in the disaster.

Titanic captain E. J. Smith (public domain image, taken from Wikimedia, author: New York Times).

Sidhu started giving an introduction of some of the characters involved in the project to show the kind of power plays and conflicts that took place at the time of taking decisions. Some of those characters were: Bruce Ismay (chairman of White Star Line), Lord Pirrie (chairman of the shipbuilding company Harland and Wolff), J.P. Morgan (American banker who financed the formation of International Mercantile Marine Company, mother company of White Star Line), Alexander Carlisle (chief engineer of the project in Harland and brother-in-law of Pirrie), Thomas Andrews (successor of Carlisle), Captain Smith (sea-captain of the Titanic).

From the beginning of the project the mantra that the Olympic line of boats was going to be unsinkable was created due to some features which indeed made the boats more secure than others at the time, as well as the largest and most luxurious. From that point onwards, several psychological flaws impeded perceptions to be re-evaluated, messages to get across, decisions to be questioned, etc.

For some of the characters (Carlisle and Andrews) safety was the top objective, to the point that when the number of life boats was decided to be reduced against the engineers’ criteria Carlisle resigned as chief engineer of the project and left Harland despite of being a relative of the chairman.

For other characters in the story the emphasis was in the size or the luxury: an ample dinning room, clean views from the cabins (not disturbed by life boats, for instance), etc.

The power play, the financial pressure on the project, the deadlines of both departure and arrival in New York, the image to keep before the press, etc., all made that several decisions were taken despite of compromising technical features (life boats reduction and placement), manufacturing operations (working in increasing shifts due to the delay caused by the repair of the Olympic at the same shipyard), operational decisions (such as short time for sea trial of the ship, radio operators priorities and incentives misalignment…), etc., adding to the diminished safety of the trip.

Some of the psychological flaws that were going on when taking those decisions include: anchoring effect (the image of the Titanic as unsinkable was fixed in the mindset despite of decisions compromising safety), bandwagon effect, confirmation bias (negative signals being filter out vs. acknowledging supporting evidences), conformity to the norm, framing effect, normalcy bias (denial and underestimation of the consequences of the disaster once occurred), etc.

Last minute misfortunes added up to the disaster: missing binoculars for the scouts (due to the departure of a crew component who held them), a shorter rope to perform ice tests, radio messages from the Californian boat not being prioritized by operators to be brought to the main deck…

The end to the story is well-known.

Have we progressed as a society since them?

Today we like to think that yes. More requirements regarding safety are put into projects. Regulations are passed to ensure safety. Risk management is used as part of project management to ensure that the kind of decisions taken at the time of the Titanic today they are taken without overlooking the risks behind them.

However, I would like to bring 3 questions raised by colleagues in the Q&A session that followed the presentation:

  • Of the cited characters, who could have been more proactive to prevent the disaster? Taking into account that Carlisle, the chief engineer, went to the point of resigning without (a seemingly) major effect to the fate of the ship.
  • How can we react to a pressure situation under a powerful sponsor? We can try to find allies, framing the situation as an “us” as a group instead of opposing the sponsor.
  • If the Titanic hadn’t sunk, would it be seen as an example of success in project management instead of a disaster? You may dismiss the point too quickly by thinking “oh, yes, but it happened that it sank!“.

Here, I remembered the theory of the safety in systems seen as layers of safety added one after the other. Each of the layer may have some holes in it just as a portion of cheese (typical image used in aerospace projects). By having several layers, accidents are prevented in most of the cases. However, from time to time the holes in the layers are perfectly aligned and the accident happens (lack of sea trials, radio messages not passed, urgency to reach New York, scouts without binoculars, improper ice tests, power vs. authority struggle in that precise trip in which the chairman of the company travels alongside the captain…).

Cheese model of safety layers in a system.

Cheese model of safety layers in a system.

My takeaways from the conference are:

  • to continuously remind ourselves of the flaws we have in our mental processes (I recommend a couple of books to that respect: “Thinking Fast and Slow” by Daniel Kahneman and “Poor Charlie’s Almanack“, by Charlie Munger),
  • to sharpen our perception of risks (both at work and daily life),
  • to understand that we are a layer (with our own holes) in the safety system (both at work and daily life).

(1) She did not enter much into risk management despite of acknowledging that it had not worked (or rather overlooked).

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Online education

At the beginning of the year I started some online courses: Coding with Codecademy, Valuation and Corporate Finance with Coursekit (which was later acquired by Lore), and Game Theory and Model Thinking with Coursera.

Together with other life and work commitments, it became tough to follow the courses and in the end I dropped them.

In autumn I received an email from a friend pointing to another online course: “Finance” from Venture Lab platform. I took a look at it… In the end I subscribed to 3 course from that platform: “Finance”, “Technology Entrepreneurship” and “A Crash Course on Creative Thinking”.

They were simultaneous and finishing them has been quite challenging; but this time, yes, I completed all of them.

I wanted to share with you some thoughts about the courses:

Finance: we could say that this was the more boring course for the general public (even though 32,500 students from all over the world subscribed to it… I don’t know how many completed it, probably less than 10%). It started with basic theory of interest and time value of money to get more into the fine details of term structure, building bond portfolios, risk measures, CAPM.

Every week there were about 1h30′ of videos to watch (some quite dull) and exercises to complete (not so easy to solve). On top of that, at mid-way through the course there was a project on bond portfolio (term structure calculation, immunization against rates changes, portfolio building) to be completed between teams.

Team working with different time-zones proved difficult in this project. But the possibility to discuss ideas and results, coupled with the online forum with dozens of students posting questions, problems, hints, etc., proved very valuable for the learning process.

A part from that, there was a textbook (“Investment Science” [PDF, 7MB], by David G. Luenberger) that could be consulted and, of course, Google ready to be posed all kinds of questions.

What did I learn? On the finance side: CAPM, time value of money, etc., were things I had already studied in the past, but not so the term structure, immunization and creation of bond portfolios, the detail and theory behind CAPM, etc. Other take away has been learning to use Microsoft Excel Solver Add-in to solve systems of equations (I hadn’t use it in the past).

Technology Entrepreneurship: Above 34,600 people from all corners of the world subscribed to this course. So many people with good ideas dream with setting up a company. I believe that is the best thing out of this course. You can feel the energy and passion in some of the teams.

The course consists of some weekly videos by the instructor (Chuck Eesley) and some assignment. The videos are great. Full of models, studies, cases, interviews to entrepreneurs, VCs, etc. Very rich content can be found there. The whole set of videos is available in Youtube, starting with the first video here.

This course was 100% practical and very fast-paced. You had to form a team and really get into launching a real product if you wanted to get the best out of the course. Assignments were due very one or two weeks, and included creating a business model canvas, identifying an opportunity, building a low-fidelity prototype of the product, testing the value proposition with customers, building a higher fidelity prototype, creating a marketing page and testing it… At the end of the course mentors for the team were also available.

Our team started out quite well. We all had a similar idea and completed the first steps (I posted about it), but later on we lost some momentum. It was a pity, but it also reflect how difficult is to form and work in a team in a start-up, especially as we were not seeing each other (based in the USA, France and UK). I guess that is one take-away of the course. Another lesson is related to the time you’re willing to commit to it. If carrying out the exercises took some time, starting a company will be a totally different undertaking… a full-time job.

From this perspective, it is good also the last assignment of the course, the “Personal Business Plan”. With it you can reflect on personal priorities, what you’re willing to do, how do you see yourself in some years time, etc.

A Crash Course on Creative Thinking: As I already explained in a previous post, I joined this course because I thought it could be fun and it consisted mainly on forcing yourself to be creative, to do things that you would normally never do. I was surprised to see that almost 41,600 students subscribed to it (more than to any of the previous 2 courses.

This course was light on videos and reading materials. It mainly consisted on completing the assignments. For that you had to break your comfort zone some times and always be on the look out for ideas. Some of the exercises included: observation of shops, filming a video combining objects to create a new sport, brainstorming for 100 solutions to a given problem, creating stories…

What did I learn? From the learning side I could mention the innovation engine model of the instructor,  Tina Seelig, or the 6 thinking hats from de Bono. But more important than that was the idea of combining solutions, setting wild objectives such as coming up not with 10 ideas, but 100!

General reflections:

  • Videos need to be engaging. It would be also good if the materials were available for reading in all cases.
  • Team working proved difficult online: different time zones, tight deadlines, not being able to meet each other…
  • Feedback from other students: some exercises required other groups to rate your work. This was a two-sided sword. Sometimes you would get good insightful comments and others a bad rating without feedback.
  • Time: “online” doesn’t mean easy, nor short, quick… If there are exercises to complete, videos to film and edit, projects to prepare… it will require time (the same as if the instruction was given offline).
  • Certificates: all three courses are not official Stanford courses, though the instructors send a “Statement of Accomplishment” after satisfactory performance and completion of the course. I guess that with time more institutions will go towards this model. I even think that official certificates will be delivered for these kind of online education.
  • Market place: One of the courses included a survey after course completion. Among the questions two caught my attention: they were related to the reasons behind having taken the course. Was it the topic only? The teacher? The institution? Once you can have access to the best teachers, the best universities, the most innovative courses from your home, some things will change. When laboratories or practical exercises are still needed the old system may still have an edge. But who would pay thousands of dollars to study finance from the best Harvard teacher when you can get it free from Stanford or Columbia. The certificate, yes… and what is more: what will be the place in this market for smaller universities without a name in the global market place?

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