Onwards and Upwards
Newcastle Airport’s transformation and the criticality of a Capital Program Governance Framework
It has been one year since Compose Consulting completed a review and what I term “right-sizing” of Newcastle Airport’s capital governance framework.
Newcastle Airport is currently undergoing an impressive transformation that will enable regional transition. It is preparing to extend its reach to international destinations and additional domestic connections. From a physical infrastructure perspective that means a new airport terminal, extending runways and more carparking amongst other projects.
The Airport is also positioning itself as a hub for synergistic businesses that benefit from having an international airport on their doorstep. A precinct is being created for aerospace, defence and advanced manufacturing businesses, known as Astro Aerolab.
These ambitions require significant capital investment in physical infrastructure alongside sophisticated engagement and negotiation with existing and new airline and tourism partners.
The economic and social multiplier impacts for the Hunter region are substantial to say the least.
With this in mind, I was keen to check in with this client to see how effective or otherwise the governance framework project had been.
So, I interviewed the sponsor of the project, Ms Georgina Chalker, Executive Manager People Safety and Environment to get her honest appraisal.
When I first met Georgina and her team, they recognised that the way they were used to overseeing their capital program required enhancement. The scale, complexity and volume of projects had escalated. Georgina wanted to create an environment for the business that:
promoted transparency
ensured timely recognition of risks and mitigation measures
lifted the conversations to ensure a clear line of sight to the required outcomes; and
would create buy-in internally so the new framework would be considered a help not a hinderance!
What was the most valuable part of reviewing and scaling the Airport's capital program governance framework?
Effective management of our capital program is critical to realising our strategic vision to be the Airport the region deserves.
With the Airport's rapid growth comes the challenge of adapting our governance framework to ensure appropriate oversight without impeding project progress.
Your recommendations have improved our reporting and risk mechanisms without constraining the ability of our team to progress at pace.
That is an incredible benefit to our business but the most valuable part of reviewing the framework has been the impact on the culture of our team, to see the way that the framework enables cross-functional engagement and reduces silos.
The 'people' impact has been more positive and powerful than we anticipated when we developed the project scope.
What was the least valuable part of reviewing and scaling the Airport's capital program governance framework in your view?
Now that we are in post implementation mode and can evaluate the change in business performance, it is evidenced that all parts of the review were valuable.
At the time of review, I questioned whether the detail included in Terms of Reference documents etc was really required.
I am glad I trusted your advice on this as those documents have proven to be key to success - they provide all stakeholders with clarity and certainty about expectations and the specific role they play in our governance structure.
Are there any specific results in the organisation that you have noticed since introducing the new capital program governance framework?
We have an enhanced level of reporting and performance transparency.
I can see the way the forum has increased awareness of the criticality of continuous risk assessment, this enables proactive intervention when risks are emerging rather than post the point that they have been realised.
What would you say to someone worried about reviewing and adjusting their capital program governance framework in their organisation?
Approach with a continuous improvement mindset. The pace of change in the internal and external environments of most businesses is so rapid that what was fit for purpose yesterday can be outdated tomorrow.
Looking ahead and thinking about how the capital program framework connects with the organisation's broader strategic goals (both short and long term) will get a lot of buy in from those involved.
Lastly, trust the process, Compose Consulting spends significant time understanding the mechanics of how the organisation is functioning and creates a custom implementation plan that carefully considers the best way to engage key stakeholders to deliver the desired outcome.
It is this unique blend of specialist technical skill and people management that makes your offering unique and so effective.
Conclusion
Knowing that the framework has been embraced and is the backbone to support the Airport's transformation with broader economic and social benefits flowing to the region is immensely satisfying.
Recognising that the right-sizing process had such positive impacts on the team as well as the projects themselves is a great win.
Ultimately the success of this project does comes down to the people involved.
The Airport team approached the process with an open mindset and a willingness to see that their work is bigger than an individual - it is about the organisation's success. My hat off to each and every team member - thank you!
If you think your organisation or project could benefit from some "right-sizing" in governance, do not hesitate to reach out so I can see how I may be of assistance to you.
