Project impact on operating performance

Projects usually exist to improve operating performance. The project creates something to improve output, speed, quality or safety, to be more competitive, or to save money. Often the project does two or three of those things. Projects help us get better and realise benefits. At least that is what is supposed to happen.

Projects need to connect to an ongoing organisational excellence framework that drives and measures performance. We drop ad hoc project metrics as soon as the project ends but the organisation carries on. The true measure of a project’s success is the extent to which it helps the organisation perform better to meet its strategic goals. Projects should drive performance.

The project and operational performance gap

Immigration New Zealand pauses its $336 million Our Future Services (OFS) project after officials admitted they got its cost savings wrong. The visa automation project was supposed to pay for itself with staff savings. Instead, delays have required extra staff time.  Managers overstated forecast savings and benefits by NZ$134 million. The business case modelled massive efficiency gains that did not match operational realities.  Those savings were not real according to Radio NZ.

We need to manage projects with clear ongoing alignment to operational reality. Some years ago the New Zealand Ministry of Health invested millions of dollars in an ambitious National Systems Development Programme (NSDP) programme to overhaul many of its large core systems. From day one it prioritised operational secrecy over engagement with operational teams. They also chose to restrict access to the project working area and discourage enquiries. After about two years the project was closed down without delivering anything and all its costs were written off. It was disconnected from operational reality.

Successful project teams

Good project teams optimise the diverse skills and experiences of the team and create synergies from their combined efforts. Great project teams integrate their skillsets with operational teams to ensure that organisational capability grows during project implementation. Excellence occurs when project governance reflects, enables and embraces these realities.

Measure project impact on ongoing performance

Coming from a background in finance and operations, I approach transformation programmes from the perspective of driving sustainably higher levels of performance. Projects exist to improve operating performance so ensure that there is a viable operating model to match the sales pitch in the business case and build one if there is not. Project teams and operational teams need to collaborate to achieve the organisational excellence promised in the transformation pitch. The real measure of success is impact on ongoing key performance criteria. If the operational experts don’t believe it will make a difference then it probably won’t.

Project impact on operating performance is how you measure success of strategy implementation. Real project assurance comes from linking project firmly to your operational excellence model. If you don’t have one, you need one. Strategy implementation is what we do at Hague Consulting. Please get in touch for a chat. Enquiries@hague.co.nz

Phil Guerin, Consultant/Director, Hague Consulting Ltd. © Hague Consulting Ltd 2026. If you like this content, subscribe to our blog – it’s free! 

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