Sydney 2000 Olympic Games: A Project Management Perspective

David Eager, University of Technology, Sydney, PMI Proceedings

SUMMARY

The Sydney 2000 Olympic Games is a large-scale and very complex project involving a diverse range of activities and large numbers of people. Given the nature and vast scale of this project, sound and exemplary project management techniques and principles are essential for its success. The strict time constraints set for the project increase the difficulties of managing cost and quality. The project will be regarded as successful if it is finished to time, on budget, and to the required quality. Good quality means meeting the needs specified by the organizer, to the standard and specification laid down, with a predictable degree of reliability and uniformity, at a price consistent with the organizer's budget and to the satisfaction of the end users. This review discusses issues that need to be addressed to make this project a success.

INTRODUCTION

The Sydney 2000 Olympic Games will be held between Friday, September 15, and Sunday, October 1, 2000, in Sydney's spring.

Sydney, competing against bids from four other cities, was awarded the right to host the games of the 26th modern Olympiad after a vote by the members of the International Olympic Committee in Monte Carlo in September 1993.

The bid was prepared by Sydney Olympics Bid Limited which drew on funds from the private and public sectors and worked in close cooperation with the Australian Olympic Committee. It enjoyed broad public support with 90 percent of the people across Australia supporting the bid. More than 100,000 volunteers offered their services. The bid was centered on the theme Share the Spirit and called on the people of Sydney to join in the excitement of the bid, and invited the world to come and share the spirit of Sydney at the Olympic Games in the year 2000. The bid also included a comprehensive set of environmental guidelines recognizing the principle of ecologically sustainable development. The guidelines promote energy conservation; water conservation; waste avoidance and minimization; protection of air, water, and soil from pollution; and protection of significant natural and cultural environments.

SOME SIGNIFICANT FEATURES

The New South Wales Government underwrites the games and is responsible for the provision of new permanent venues and facilities needed for the games. It also provides support services particularly in the areas of transport, security, and health care. The construction of new sporting facilities and refurbishment of existing facilities for the games is being undertaken by the State Government's Olympic Coordination Authority, namely: Sydney Organizing Committee for the Olympic Games (SOCOG).

Staging of the 2000 Games is the responsibility of SOCOG which was established in November 1993 by legislation in the New South Wales Parliament.

The Sydney Para-Olympic Organizing Committee will stage the Para-Olympic Games following the Olympic Games and will draw extensively on SOCOG expertise in its games organization.

Sydney's Olympic plan is based on a commitment to provide the right conditions for athletes to perform at their optimum levels. For the first time in Olympic history, all athletes will live together in one village, and many will be within walking distance of the venues for their events.

Except for some football preliminaries, all Olympic events are planned to be held in metropolitan Sydney in venues within thirty minutes travel from the Olympic Village. No training facility will be more than forty-five minutes away from the village. The focus is mainly on two Olympic zones, namely: the Sydney Olympic Park, situated at Homebush Bay about 14 km west of the Sydney city center; and the Sydney

Harbor zone, located near the Sydney city center and accessible by road, rail, and ferry from Sydney Olympic Park.

A series of test events in the years preceding the Olympic Games is planned with the aim of trialling the Olympic venues, training the technical officials and volunteers who will help conduct the events at the Olympic Games, and selectively trialling arrangements for accreditation, transport, security, broadcasting, media, and other services.

INFRASTRUCTUREPREPARATION WORK FOR THE GAMES

A significant number of Sydney's Olympic venues already exist. Most of the remaining facilities required for the games will be constructed as part of the redevelopment program being undertaken at Homebush Bay.

Key elements of the Homebush Bay area include the construction of new sporting facilities, establishment of a new showground and major exhibition center, development of residential and retail areas, and the establishment of a commercial center for high technology industries. A main press center and the Olympic village with accommodation for 10,000 athletes and team officials also comes under the umbrella of the Olympic Park.

Recently completed major transport projects such as Sydney Harbor Tunnel, M4 and M5 Motorways, and Glebe Island bridge, together with the major projects currently in progress, such as City West Development, Ultimo-Pyrmont light rail system, Airport City Link, and the railway loop line to link the Olympic Park with the Sydney rail network's main western rail line, will ensure that an effective transport system will be available for the Olympic Games.

Telecommunications infrastructure, such as Integrated Services Digital Network (ISDN), Intelligent Networks (IN), and Cellular Mobile Telephone Service (CMTS), together with Broadband ISDN (B-ISDN), currently being established are considered sufficient to successfully service the international and domestic demand of the games.

During Sydney's bid, a campaign to register volunteers was conducted by the St. George Bank which attracted more than 100,000 people. Sydney will require 35,000 people from all walks of life to form a volunteer workforce essential for the smooth running of the games.

Revenue for the games is expected primarily from television rights fees, sponsorships, coin marketing royalties, licensing fees, and ticket sales.

It is estimated that during the period 1994-2004 the Olympics could add A$7.3 billion to Australia's gross domestic product, create 150,000 full- and part-time jobs, and bring an extra 1.3 million visitors to Australia. In order to safeguard sponsorship fees and sponsors and licensees benefits from ambush marketing, the New South Wales Government has legislated the Sydney 2000 Games (Indicia and Images) Protection Bill 1996.

DEFINITION OF THE PROJECT

The objective of the Sydney Olympic Games Program is to stage the year 2000 Olympic Games at specified locations in Sydney. Although the New South Wales Government is underwriting the project activities, there is no clearly defined client for the program. There are many stakeholders and customers, including the citizens of New South Wales, the New South Wales Government, the Australian people, the International Olympic Organization, the international community as a whole, the athletes, and Australian and international business communities. The scope of the project comprises organizing all the games and ceremonies, putting in place technology and resources required to stage the games, public relations, and fundraising. Criteria for the success of the project include trouble-free performance of the games, the level of public enthusiasm and enjoyment generated by the activities and resultant sustained economic activity generated within New South Wales and Australia, and continued interest in Olympic Games for the future.

SOCOG was appointed to manage the project by legislation. In addition to SOCOG there are other organizations that directly contribute to the success of the games. International Olympic Committee, Australian Olympic Committee, Sydney City Council, and Olympic Coordination Authority (New South Wales Government) have been made party to the host city contract. Olympic Coordination Authority is responsible for all the infrastructure projects, almost all of which are not being built specifically for the Olympic Games. These projects are either already under way or are being reprogrammed to accommodate the games. Completion of these projects on time is vital to the success of the Olympic Games. The general rule-of-thumb used by the Government has been to relocate infrastructure projects initially external to the games under the games umbrella.

The infrastructure construction is the responsibility of the government and is overseen by the Olympic Coordination Authority. To make matters more complicated, the scope of work of SOCOG is restricted to organization of the events. The games budget in nominal terms is A$1.847 billion (US$1.4 billion). There is an explicit need to control the cost of all its activities very carefully. Any major cost overruns will alienate the public and will have adverse effects on the success of the games.

The project can be broken in to the following major areas of work (as a work breakdown structure):

events

venues and facilities including accommodation

transport

media facilities and coordination

telecommunications

security arrangements

medical care

human resources including volunteers

cultural Olympiad

pre-games training

information-technology projects

opening and closing ceremonies

public relations

financing

test games and trial events

sponsorship management and control of ambush marketing.

Each of these items could be treated as a project in its own right. Further, an enormous coordination effort will be required to ensure these, and therefore, the entire games project, are delivered on time.

CRITICAL PROJECT DIMENSIONS

Time is the most critical dimension of the Sydney 2000 Olympic Games project. As the project must be completed and ready for staging the Olympic Games on the stipulated dates, any shortcomings in the time dimension will have to be offset by sacrificing the other two dimensions, namely: cost and quality. However, performance on all three dimensions is vital for the success of the project.

TIME DIMENSION

Sydney is fortunate in having sufficient infrastructure capacity either existing or under construction to cater for an event of this magnitude. It is anticipated that the infrastructure projects under construction will be completed well in advance of the commencement of the Olympic Games. Any delays in the completion dates could be accommodated without much difficulty. The criticality of the time dimension applies mainly to other activities and timing of individual activities such as events, opening and closing ceremonies, and so on. To ensure that the time dimension is achieved, the Sydney Organizing Committee for the Olympic Games has adopted strategies such as: holding frequent coordination meetings with the organizations and parties responsible for delivering the required items, setting target dates well in advance of the main event, designing test events, and trialling events as milestones for the critical items.

For the construction projects, estimation of the time dimension should be relatively straightforward. Expertise is available within the construction industry to produce reasonable estimates. Critical path

methods, precedence block diagrams, and program evaluation and review are employed to control the uncertainties in the time dimension. Proper plans must be prepared for these construction activities. All persons who may be affected by these programs should have an opportunity to comment on the plan. Instruments should be put in place to monitor the progress against the program continually. The program should include enough leeway or float to allow minor problems to be accommodated without causing major changes to the timing of the overall program. Elements which are expected to have most impact on the program must be identified and defined as early as possible, and an adequate series of milestones must be established to allow monitoring of the progress of the program.

At this early stage of the program or the project life-cycle the time required to complete tasks for particular events introduce uncertainties. These uncertainties are related to the nature of the tasks involved. Some non-construction projectssuch as developing software to monitor the games' progress, establishing the games database and systems to disseminate the information to general publichave larger uncertainties inherent in the system. Some new technologies may have to be developed to adapt to the advances in the way the information is distributed to the public and media. For example, the Atlanta 1996 Olympic Games had a dedicated Internet facility to give the public access to games information. Since Internet technologies are changing very rapidly, the way information is given out to the public may also change in line with advances in technology. It is difficult to predict what these advances may involve until much closer to the actual event. However, a comprehensive information technology strategic plan is essential to safeguard against these rapid changes. It has been said that one Internet year is equivalent to seven earth years, hence the three years that lie ahead for Sydney 2000 Olympic is equivalent to twenty-one years of Internet development, quite a daunting time scale to anticipate. But anticipating and facing this is nevertheless necessary.

Certain other programs such as cultural events and the opening and closing ceremony performances are based on inspirations. The time dimension of inspirations is quite difficult to anticipate. Allowing sufficient time for inspirations to prosper, while necessary, will severely restrict the possible lead times on these programs. Time, cost, and quality dimensions on these kinds of activities are tightly interrelated. Sufficient safeguards need to be incorporated so that persons involved do not get carried away, and ego conflicts are avoided. Several alternative proposals may have to be developed beyond the conceptual stage to select the best. Such an exercise could add to the overall cost of these activities, and compromises may need to be negotiated.

Activities that have several unknowns, by their very nature, need to be planned toward the later stage of the project life-cycle. The time dimension becomes extremely critical for these activities.

COST DIMENSION

The cost estimates of the construction projects are not reflected in the games budget as the infrastructure projects are undertaken outside the games project.

Sydney's games budget is based on conservative assumptions and estimates of games receipts and payments. Receipts are mainly from television rights and international and local participation (8). The financial planning process included:

consultations with both national and international experts in the fields relevant to both receipts and payments

consultations with the Barcelona Organizing Committee, the International Olympic Committee, and the Australian Olympic Committee

review and analysis of results and budgets from previous games and bid candidature

independent analysis of construction costs by quantity surveyors, Rider Hunt

independent review of the estimates by auditors, Price Waterhouse.

SOCOG has stated that the NSW Audit Office has conducted a detailed review of the games budget, concluding that "the bid estimates have been developed following the due process, the assumptions were considered sound, the procedures adopted for developing the estimates were rigorous, and the processes used to develop the estimates were appropriate for the purpose (8)."

SOCOG has also advised that the factors influencing the process included (8):

bipartisan support for the games, both at federal and state government levels

the support of trade unions, minimizing the risk of construction disputes

Australia's low level of inflation

process undertaken by Sydney to implement procedures for accommodation price control, particularly in relation to hotel tariffs.

The NSW Audit Office cost estimates appear to have been produced using appropriate methodologies. However, even though the cost estimates were prepared using appropriate methodologies it is necessary to develop strict cost control mechanisms in order to keep the overall project costs to the minimum. It is worth noting that the major portion of the games budget is for the events and ceremonies, and the nature of these programs is such that there are considerable uncertainties inherent in these items. Further, the time and cost dimensions of these events are tightly interrelated. Consequently, any slippage in timing of the programming, training, and testing of these activities could lead to large cost escalations.

Due to the predicted rapid change in technology it is highly likely that there will be variations in requirements or design. As a general rule, it is undesirable to allow too many such changes, since they are a major source of cost escalation in any project and especially in projects such as this. Some variations may be to a cost advantage, but this is the exception rather than the norm.

Economic and social factors will also play a major part in cost escalation in the games budget. Currently, the games project enjoys overwhelming public support, thus minimizing the risk of labor strikes and other legal conflicts. However, if not managed properly, the tide could turn leading to spiralling cost escalations. For example, SOCOG is negotiating with the hotel industry to ensure stable room rates for the period in time surrounding the games.

Cost escalations would lead to disillusionment among the public and would diminish the public appeal of the games thus affecting public support and a vital source of volunteer games staff. Any cost overrun will have to be met by the taxpayer, as the New South Wales Government has underwritten the Host City Contract. This could also become a major political issue. Maintaining the costs within budget is vital to the games' success. QUALITY DIMENSION

This is the most difficult dimension of the project to define. The quality is threefold:

good quality versus high quality

fit for purpose

conforming to the customer requirement.

As part of the host city contract the International Olympic Committee has specified certain quality requirements for the Sydney 2000 Olympic Games. The New South Wales Government has specified certain environmental guidelines that all Olympic ventures should follow. Within the public mind there is also a concept of the level of quality and excellence the Olympic Games should achieve. The SOCOG itself will set its own quality standards mainly in performing its duties. Sponsors will demand a certain quality standard. Some of these standards are currently only at the conceptual stage. As the project progresses through its life-cycle these standards need to emerge. Each program component will have its own definition of quality and standards.

One of the major areas a quality which should not be underestimated nor forgotten is the aspect of security. Responsibility for management of Olympic Games security lies with the Olympic Security Planning and Implementation Group (OSPIG). It would appear that there is a significant weakness in the security planning process in that it lacks coordinated project control. Rather than being developed as a strategic program, activities are being undertaken as disparate tactical operations. This has occurred because Olympic Security is being used to expand existing programs rather than being managed as a separate program. The focus has been on integrating existing activities to provide security for the games, rather than on developing an effective games security plan and then integrating existing programs when practical.

Wherever there is public involvement in large projects, it is generally not sufficient to have good quality or fit for purpose quality. The public demands very high quality standards. The quality of the game events is likely to be judged by the absence of delays and clockwork precision with which the public

expects events to proceed. In the case of transport, quality is judged by lack of traffic jams and holdups. The quality of security will be judged by perceived public safety and lack of incidents such as terrorism.

In construction projects quality can be clearly defined, for example, as fit for purpose or conforming to strict environmental guidelines. In projects such as the games there are difficulties in defining quality, particularly in the early stages of the development cycle. For example, quality of performances and ceremonies might be measured by how spectacular they are, how precisely orchestrated, and how much they appeal to majority audiences. Qualitative criteria such as these are not easy to quantify or to monitor in early stages of the development cycle.

Adoption of total quality management techniques in these programs could improve the quality of the delivered Olympic Games. The essential ingredients of a total quality management system are: quality of the product as the ultimate goal; quality management process; quality assurance systems; and attitude.

Where clear specifications and well-defined standards are difficult to formulate, engaging experienced personnel and experts may be particularly desirable. The product (e.g., events or performances) should be thoroughly tested prior to the games, allowing ample time to make necessary modifications at least cost.

A good management process is vital to the delivery of a high quality product. It is necessary to establish milestones and set procedures for the management process to achieve quality.

As mentioned above, cost and quality are closely related. Quality comes at a price. This applies particularly to a project like the Olympic Games when completion on time is critical, and the cost of failure is extremely high for any of the items included in the project.

Only through closely controlled quality management processes and early identification of the possibility of failure can the success of the program be ensured. Several safeguards have been put in place both by the International Olympic Committee and the New South Wales Government to ensure the delivery of the games is to an acceptable quality.

CONCLUSIONS

The Sydney 2000 Olympic Games is a venture that requires considerable use of project management techniques and skills to make it a success. The large scale and very nature of the event requires good time management and the control of all three project dimensions: time, cost, and quality.

All three dimensions of the project are interrelated, and careful monitoring is needed at every stage of the project life-cycle. The estimates of the initial bid were prepared carefully and thoroughly with adequate checks and safeguards. During the bid stage and subsequent stages there was no leeway for varying the time dimension. This restriction, however, applies only to the delivery of the overall project. If the program is broken down into manageable items of work, the time dimension becomes something that can be manipulated. Careful programming and identifying proper milestones can improve the time management of the project.

The quality of the games project is vital for its success, and the project requires careful orchestration. Quality control can be achieved using proven project management delivery techniques. Some activities of the games have a very high correlation of time and quality. Such events should be identified early in the planning process and test methods developed. Quality is hard to impose on events such as performances which involve subjective qualitative judgments. However, excellence can still be achieved with proper planning and commitment of the personnel involved.

The cost aspect of the project is closely interrelated to the time and quality aspects. In the Olympic Games project if a compromise has to be made, the cost aspect will be the first dimension that will be sacrificed.

Good communications are vital to the success of the project and to effective control of all three dimensions. Trial games and test programs will serve to control all three dimensions and should be

treated seriously. The planned trials in the coming years will be an excellent opportunity to monitor, control, or correct any deficiencies in the project.

QUESTIONS

1. Why is time management critical to the Sydney 2000 Olympics Games project?

2. By what yardsticks will the Sydney 2000 Olympics Games project be measured, and how will it be considered a success? Give examples to illustrate your answer.

3. Why is project scope management so important to the Sydney 2000 Olympic Games project? Illustrate your answer with some examples from projects that you have studied or worked on and draw parallels.

4. A project is said to be successful if the work is finished on time, to cost, and to quality. We understand clearly how to measure time and cost-days and dollars-but few people have a clear idea of what they mean by quality in the context of projects. Discuss the concept of quality with specific reference to the Sydney 2000 Olympic Games project.