Exhibit 2 - Plante Moran Study
Make the mark.
City of Denton, TX
Capital Projects Process Report, September 2020
City of Denton
Capital Projects Process Improvement 2 | Page
Table of Contents
Introduction ......................................................................................................................................................................... 3
Executive Summary ............................................................................................................................................. 3
Project Objectives................................................................................................................................................. 3
Project Scope and Approach .............................................................................................................................. 3
Summary of Findings ......................................................................................................................................................... 6
Client Departments ............................................................................................................................................. 6
Findings from Capital Department Staff ........................................................................................................ 6
Process Waste Summary .................................................................................................................................... 7
Key Recommendations .......................................................................................................................................8
Project Observations and Opportunities ................................................................................................................... 11
1. Project Initiation ................................................................................................................................................ 12
2. Planning ............................................................................................................................................................... 13
3. Design ................................................................................................................................................................... 15
4. Bid/ Advertise/ Award ....................................................................................................................................... 16
5. Construction ........................................................................................................................................................ 16
6. Closeout ................................................................................................................................................................ 18
Organizational Findings ................................................................................................................................................. 19
1. Role Definition .................................................................................................................................................... 19
2. Span of Control ................................................................................................................................................... 20
3. Organization Model ........................................................................................................................................... 21
4. Organizational Reinforcements ...................................................................................................................... 22
Principles of Redesign ...................................................................................................................................... 22
Appendix A: Current technology environment index (draft) ................................................................................. 24
Appendix B: Action Plan ................................................................................................................................................ 25
City of Denton
Capital Projects Process Improvement 3 | Page
Introduction
Executive Summary
The City of Denton’s Capital Projects department has undergone significant change in the recent past and
asked Plante Moran to review operations and identify recommendations to enhance services. After our
review and analysis, we recommend the following:
• Create and follow a project management methodology that is consistent with the approach, tools,
and templates that the Project Management Institute advise. Train project managers and
stakeholders in this methodology.
• Clarify responsibilities within the organization around project roles and responsibilities. Improve
oversight by project managers and client departments and establish discipline to ensure projects
advance only when criteria have been met.
• Organize the department around the project management methodology and staff according to
demand for services.
Discrete recommendations relate to various phases of project management or organizational design and are
included in the action plan in Appendix B.
Project Objectives
As the seat of the third-fastest growing county in the country, the City of Denton (“City”) is tasked with
expanding roads, water, and wastewater access to developments across the City. The City sees this and is
transforming their operations to become a more nimble and efficient organization. In the last few years, the
Capital Projects department has a new leadership team that has kick-started project activities worth
millions of dollars. As these projects have started, leadership recognized the benefit of a broader
understanding of the current end-to-end process and for developing a plan for how to make the process
more efficient. In addition, leadership sought the unbiased perspective of experienced consultants to advise
the City on organizational structure and sufficiency of staffing.
As the City has a bias for action, they requested immediate help to develop and implement a structured,
prioritized process improvement plan. This plan is included in the appendix of this report.
Project Scope and Approach
The project was conducted using a participative and inclusive approach with significant input from City &
Capital Projects Department leadership, Capital Projects Department staff, as well as client departments
participating in the capital improvement process. The aforementioned groups were engaged to ensure
accuracy, completeness, and ownership of the resulting recommendations.
To garner a holistic understanding of the process and develop applicable and appropriate
recommendations, Plante Moran followed the ensuing steps:
1. Documentation Review. Plante Moran reviewed existing documentation provided by process
owners and operational leaders at the City. These documents included Department budget, capital
City of Denton
Capital Projects Process Improvement 4 | Page
improvement plan/ project list, organizational chart, and position allocation list, position
descriptions, existing process documentation and standard operating procedures, previous analyses
of the department, including internal audit reports, key performance indicators and other
workload and quality measures.
2. Stakeholder Interviews. Plante Moran conducted interviews with City Leadership, Capital Projects
Division Leadership, Capital Projects staff, and members of customer departments. The interviews
were conducted to accomplish the following:
• Identify current issues and opportunities within the capital projects process
• Discuss the typical approach to project management
• Discuss strengths of the current process
• Solicit feedback regarding governance and existing policies
• Discuss the departments’ perceptions as to how the current process can improve
3. Recommendations. Finally, Plante Moran summarized observations and opportunities within a
presentation for the Steering Committee. After multiple validation sessions, Plante Moran drafted
this report which, in addition to the observations and opportunities, includes the priority and effort
required to make the suggested improvements.
Throughout the project, Plante Moran met with the Steering Committee on a regular basis to provide status
updates and allow members to share any concerns. This group of leaders included the following individuals:
Todd Estes
Christine Taylor
Rachel Wood
Rebecca Diviney
Ethan Cox*
It is important to note that midway through the project, an additional steering committee member (*) was
added. On July 15th, after the City reorganized several departments, the new General Manager of Public
Works joined the Steering Committee.
The goal of this project was to encourage the City to take advantage of best practices in order to
significantly improve the efficiency and effectiveness of the City’s capital projects processes. Some
improvements may be possible through better utilization of project management solutions. Technology
should support a process, not make up for where the process lacks. Therefore, Plante Moran’s primary
recommendations will focus on first fixing and optimizing the process, the tools presently available and the
training of process owners and stakeholders.
Below are high-level descriptions of three categories that Plante Moran uses to group our
recommendations.
City of Denton
Capital Projects Process Improvement 5 | Page
People – Any recommendations associated with communication, training, and responsibilities are
people related. This may include better communicating policies, clarifying roles/ responsibilities,
developing standards, and managing expectations.
Process – These include recommendations associated with the activities, procedures, and decisions
that support business processes. This may include improving handoffs between individuals or
departments, minimizing frequency of errors, and aligning process with policy (or vice versa).
Process related recommendations focus on increasing efficiency and eliminating waste.
Technology – Any recommendations associated with the system(s) utilized at the City are
technology related. This includes minimizing the number of technologies used so that processes
can be streamlined and configuring existing tools to better support the City’s processes.
It is important to note that these three categories are not mutually exclusive, as a change in one may
necessitate a change in another. As an example, a change in process steps may require that the technology
that supports that process is modified to support the improvement.
We also present discrete observations and opportunities that correspond to the six project management
phases in the findings below.
City of Denton
Capital Projects Process Improvement 6 | Page
Summary of Findings
Client Departments
Plante Moran interviewed several departments who authorize projects that are then managed by Capital
Projects team. The team referred to these departments as “client departments” and they included Parks and
Recreation, Facilities Management, Traffic Engineering, Water and Wastewater. High level findings were
similar among the those interviewed and included the following:
The criteria that participants use to gauge effective project management include responsiveness,
expertise, consistency, accessibility, and courtesy.
Participants indicated that there is sometimes an inconsistent application of policies and
procedures. Multiple participants mentioned that the answer they receive to a question regarding
the process or policy depends on a variety of factors: whom they speak with, when they ask the
question, how many times they ask a question, etc.
Participants do not believe they have sufficient support and associated accountability regarding
various processes. They would like to have greater accessibility to project status reports.
Participants reported a lack of documented procedures and guidelines. They noted that they often
do not know what to expect and as a result, they become proactive in reaching out to project
managers for impromptu requests for service. They did not consider the work interruption that
this causes.
Client departments each shared that improvements have been made in communication and
transparency in the recent past, but they felt these were still lacking.
Findings from Capital Department Staff
Plante Moran interviewed several department staff. The focus was on the following divisions of the
department: capital improvements, design, real estate, development review, and public works inspection.
High level findings based on discussions with staff are as follows:
Workload has increased significantly in the recent past for all work units. Staff were universally
concerned that quality has suffered due to this increase.
The department has undergone several leadership and organizational changes. Staff indicated that
the lack of consistency has also caused their work to suffer, although they were generally optimistic
about the current direction of the department.
Most of those interviewed had a tenure of less than two years. The level of turnover is high and
unsustainable given the complexity of work.
Project managers have not been trained in a uniform approach to project management.
The staff who Plante Moran interviewed exhibited skill sets that corresponded with their
responsibilities and work duties.
The City has limited awareness of data in general and lack availability of tactical data that inform
their business processes. Key performance indicators can be used to determine workload,
challenges, and prioritize tasks. This information was not readily available to Plante Moran in
City of Denton
Capital Projects Process Improvement 7 | Page
aggregated form, although individuals were able to address key metrics associated with particular
projects.
The City has a dedicated, courteous workforce with high focus on their work as assigned. Plante
Moran is confident that any changes that the department makes will be implemented provided that
it is clearly communicated and that the City takes necessary steps to assist staff with managing the
change.
Process Waste Summary
At a high level, the processes that Plante Moran reviewed have similar challenges that are caused in large
part due to the way in which the City organizes and executes its processes. Plante Moran observed a
moderate degree of waste in the City’s processes. In aggregate, it is less than often encountered but it is still
prevalent. The level of waste that observed can be categorized within the seven forms of waste that are
identified in Lean/ Six Sigma methodology below.
Rating Prevalence
In aggregate, a common form of waste at the City’s capital
projects processes
A form of waste that is found in many of the City’s capital
projects processes
In aggregate, uncommon form of waste at the City’s capital
projects processes
Type of Waste Definition Examples Prevalence
Transport Unnecessary movement of Work
in Process
Movement of files to different locations,
transport from one functional area to another
Inventory Holding material/ information
longer than required
Same document stored multiple places,
unnecessary document retention, work in
process awaiting approval
Motion Wasted movement of people Tracking down information, monitoring
status, scheduling inspections
Waiting Employees and customers
waiting
Departments or vendors waiting for approvals
or information
Over-production Processing too soon or too much Information sent when not required,
unnecessary notifications
Over-processing Overly complex or redundant
processing, adding value when
it’s not required
Excessive approvals, duplicate data entry,
manual coordination, producing unnecessary
reports
City of Denton
Capital Projects Process Improvement 8 | Page
Type of Waste Definition Examples Prevalence
Defects Errors, mistakes, rework Incorrect data entry, projects missing
milestones
Typically, Plante Moran will use data to determine the extent to which waste is present in a process in order
to advance the Lean concepts of process flow and process pull. Due in part to the City’s challenges with
standardized processes, it is difficult to gather tactical data that can be used to make this diagnosis and the
generation of the data would likely outweigh the benefits to the City of seeing the data. Instead, the rating
of prevalence is based on qualitative information relative to the experience of other Plante Moran clients.
Key Recommendations
Plante Moran identified many opportunities for improvement related to individual processes. In addition,
the City should consider the following recommendations that do not pertain to individual processes but
rather are associated with common themes that were observed throughout the engagement. Project-specific
observations and recommendations are presented later in this report.
People Recommendations
Standardize work expectations and invest heavily in training. The department has a standardized
approach to work, but it has not been implemented or enforced. The City should improve these
standards to further its consistency with the Project Management Institute. Once adopted, the City
should train both project management staff and client departments in the new approach. While
standards had been developed in the recent past, they were not implemented or enforced.
Use project initiation to estimate staffing resource requirements. When a project is authorized, it
should include staffing needs for Capital Projects that in aggregate should mirror the department’s
operating budget. If the staffing needs and operating budget do not match, the department should
request staffing modifications either through the annual City budget process or as a special
consideration. Based on an average demand of ten hours per week per project, Project Managers
should be managing between four and seven projects.
Restructure department reporting lines. The department underwent a reorganization midway
through the assessment. Plante Moran believes additional modification will further streamline
operations by grouping certain functional areas together. See recommendations in the
Organizational Findings section.
Institute a change management strategy. Many of the recommendations in this report will impact
not only the employees in the capital projects but also the employees in client departments. A
change management strategy and accompanying communications plan will help ensure that
improvements are implemented in a non-threatening manner, thereby increasing likelihood of
success.
Document operational procedures. The department lacks clear guidelines to direct staff in a
variety of areas. For example, project standards around timeliness and responsiveness do not exist.
The department has initiated an effort to document these standards as well as to document
operational procedures. We encourage that this continue.
City of Denton
Capital Projects Process Improvement 9 | Page
Process Recommendations
Consolidate the City’s capital plans into a single Capital Improvement Plan (CIP). Align the CIP
with the City’s master plan and the annual operation budget. This will improve the organization’s
insight into all major projects and allow clarity into how future projects can be combined or staged
for improved efficiency. Modifications to the CIP that require Council consideration can be grouped
in a coordinated fashion.
Clarify process roles and hold departments accountable. Project standards such as project charters
and interdepartmental service level agreements can assist with this accountability structure.
Make decisions at the right level within the organization. In some processes, there were
bottlenecks in which decisions were funneled to a single point of authority thereby causing delays.
In many cases, the decision authority can be delegated by establishing parameters for which
additional authorization is required.
Institute customer feedback mechanisms. Feedback loops are a best practice way to monitor
process effectiveness. To efficiently deploy this best practice with most centralized processes, the
City should develop and deploy an electronic survey of services. The survey should request feedback
on responsiveness, timeliness, issue resolution, and overall quality. In addition, as part of project
closeout activities, the City should institute a project review and debrief to share lessons learned –
especially in high priority and complex projects.
Get smarter about tactical, workload and cost data. Each process should have information related
to requests, project realization, backlog, etc. so that supervisors can target improvements.
Currently, it is challenging to get this information as this information can reside in various places.
Develop standards to manage expectations. Develop feed-forward mechanisms so that project
participants (client department, Capital Projects, Real Estate, Procurement, Legal, etc.) understand
when they can expect work of them. Standards have not been developed or communicated and one
of the key insights that was shared during the interviews with client departments groups is that
department representatives have various expectations regarding what a reasonable time is for issue
resolution.
Technology Recommendations
Plante Moran’s review of technology was limited and was informed exclusively from interviews. Prior to
implementing any recommendations below, Capital Projects should discuss the recommendations with
technology department.
Invest in project management software. Staff use a variety of different tools to monitor projects
and common software would benefit the City. While there are various options available in the
market, we believe improved utilization of Smartsheet’s project management functionality may
address the project management requirements of the City. As Smartsheet is already widely used
and familiar to the City, it is the preferred starting point. If the City decides Smartsheet is not the
optimal project management tool for its needs, the City should seek out a construction
management tool via RFP.
City of Denton
Capital Projects Process Improvement 10 | Page
Consider reducing the number of asset management systems. Though not directly controlled nor
maintained by the Capital Projects teams, a disjointed asset management strategy citywide impairs
the project planning and staging process. We recommend the City consider reducing the number of
systems to improve processes and reduce its overall technology investment.
Develop a digital labor strategy. Many process monitoring activities involve taking information
from one place and putting it into another for project reporting. These mundane and routine
activities can be simplified by implementing robotic process automation (RPA) as a substitute for
the manual steps that are currently executed by City staff. Plante Moran recommends this strategy
only if other process improvement efforts fail to address these challenges.
City of Denton
Capital Projects Process Improvement 11 | Page
Project Observations and Opportunities
The City developed a project management methodology that was finalized and published in 2017 under the
title “Capital Improvement Program Engineering Services: Project Management Methodology Guidelines.”
This document included tools, standards, and expectations for departmental project management as well as
a process map that clearly defined the phases in a project. These phases closely mirror the phases of a
project that are identified by the Project Management Institute’s Project Management Body of Knowledge
(PMBOK) and other best practice standards. The major difference is that Denton treats the bid/ advertise/
award phase as a distinct phase. This seems warranted, given the strict rules related to government
procurement.
Reportedly, this document was created to standardize work within the department. However, most current
staff were not aware of its existence or had forgotten it. Plante Moran believes this is largely due to staff
turnover that coincided with the time it should have been normalized within the department.
Much of this document is high-quality and it is recommended that it be updated and used as the standard
for project management within the City. It is designed as a set of standards for project managers within the
department. We recommend that as it is updated, the City increase the scope of the document to include
project management in general by adding more information related to expectations and responsibilities of
client departments and vendors. Consider developing a RACI matrix to define roles associated with those
who are responsible, accountable, consulted, and informed. Once this is completed, we recommend training
for staff within Capital Projects as well as with the client departments. These trainings should be part of an
established, ongoing training plan to ensure that the methodology becomes embedded in the organization.
Having a common project management framework will have a greater positive impact than any other
recommendations in this report.
Plante Moran reviewed the operations of the department and observed areas in which the City faces
challenges. These observations and opportunities for improvement are presented below within the project
management framework used by the City. Each phase was assigned a rating for priority and effort based on
scales in the table below:
Rating Priority Effort
High Priority – Requires immediate attention Requires Significant Effort and/or
resources
Medium Priority – Should be addressed Requires Moderate Effort and/or resources
Low Priority – Address as time/resources permit Requires Minimal Effort and/or resources
City of Denton
Capital Projects Process Improvement 12 | Page
Priority Effort
1. Project Initiation
Overview:
Project initiation includes project selection, prioritization, scheduling, assignment of project manager
(whether in-house or contracted), and funding to complete the project. The initiation work is paramount to
the success of the project, for it is in this phase that participants gain clarity about the major components of
the project. If initiation is poorly executed, then downstream decisions may be made with inadequate or
incorrect information often at greater expense. In addition, inaccurate cost estimation may allow projects to
go forward that may not have financial viability.
We recommend that the City begin to track the following key metrics related to Project Initiation:
Project total cost of ownership (project construction cost plus related costs of inspection, monitoring
and project management)
Estimated project management costs as a proportion of total cost of ownership
Projected project management costs as it relates to the Capital Project department’s operational
budget
Observations:
The City does not have a consolidated capital project list. A capital improvement plan (CIP) that aligns
with the City’s long-range master plan and the annual operational budget is a GFOA best practice.
Staffing levels do not correlate to department workload. A large influx of work was derived from the
2019 City bond program, but the department reduced filled positions due to retirements and a
voluntary separation program.
At project initiation, the City completes an “estimate at completion” (EAC) for each project. These
estimates do not have sufficient documentation that is saved and transferred to project managers.
This makes it difficult for project managers to comply with estimates as project needs change.
The City does not have standards for “large” and complex projects versus “small” projects. This
distinction is important because the standards and resources required will vary.
Project managers are assigned based on workload and not expertise.
Opportunity:
Coordinate the capital planning process across all City departments. Consolidate all capital plans into
a unified, City-wide CIP. Plante Moran recommends a five-year CIP that aligns with the City master
plan and the annual operational budget.
Strengthen the handoff of a project from the client department to Capital Projects department by
establishing a project authorization form. (Reportedly, this has recently been implemented.)
During project initiation, estimate the hours required for project management and inspection. Use
these estimates to create staffing models for project management and inspection functions. Project
managers should spend on average nine hours per week actively managing a project. Additionally, one
City of Denton
Capital Projects Process Improvement 13 | Page
Priority Effort
1. Project Initiation
hour per week should be planned for one-time per project. That brings the total time a Project
Manager should spend to effectively manage a project is 10 hours per week. A Project Manager should
be actively managing between four and seven projects, depending on the project complexities. Develop
a template for staffing that combines project management hourly estimates by month with managers
assigned to those projects. Adjust the staffing model frequently to better address staffing needs. When
the department faces a short-term staffing need, address the need through contractual services.
Create a standard for EAC that includes backup documentation. This documentation should include
contractual cost estimates as well as a work breakdown structure (WBS) for internal project
management and inspection services. The WBS should also include estimates of the work that will be
required of client departments so that their level of involvement is clearly defined.
Identify a standard that distinguishes project complexity. As an example, projects that require greater
than 100 hours of oversight should be treated differently than ones that require less project
management and inspection time.
Consider assigning project management workload based on a combination of availability, expertise,
and professional interest.
Priority Effort
2. Planning
Overview:
The planning phase includes identification of project risks and stakeholders as well as development of
sub-plans that might be necessary such as communication plans, right of way acquisition plans, and
utility management plans. It also involves the key decision about whether to hire a design consultant or
handle design components in-house.
We recommend that the City begin to track the following key metrics related to Planning:
% of projects with a project charter
% of projects with a project stakeholder kickoff meeting
% of projects with communication plans, change management plans, right of way acquisition
plans, and utility management plans (as a proxy for project complexity)
% of projects reassigned to different project managers over the project lifecycle
Observations:
Project charters are rarely used. Doing so is a recognized best practice by the Project
Management Institute and is required by Denton’s project management methodology. A project
charter should include key project elements like scope, milestones, summary budget, measurable
objectives, project organizational structure, communication standards, and project success
City of Denton
Capital Projects Process Improvement 14 | Page
Priority Effort
2. Planning
factors so that these factors are evaluated prior to project kickoff. This helps ensure a common
understanding of the project and assist in the development of management tactics to mitigate
risks.
Several program and project managers reported instances in which the Finance Department
reallocates project funds to elsewhere within the City’s budget without communicating the
transfer to the project team.
Client departments reported that communication from program and project managers is
infrequent, leading to frustration and departments being unaware of project status.
The decision criteria for whether to design a project internally or via contractor is ambiguous.
Both the design team and customer departments are often left waiting to find out who will
design a project.
Project management responsibilities are frequently reassigned over the course of a project. This
is to balance employee workload. However, switching managers has can be costly, as new
managers need to familiarize themselves with the new project and gain rapport with the project
team.
Program governance and oversight of projects is inconsistent. As a result, the department tends
to focus on what is most immediate rather than what is most important.
Opportunity:
Use a project charter for all significant projects. The charter should include a signed agreement
from both the project manager as well as the sponsor department. Finalizing the charter should
be a standard agenda item for project kickoff meetings.
Improve communication between Finance and Capital Projects. Establishing a financial manager
position will assist with this. (See organizational recommendations below.)
Establish standards for communication, including timing and communication method within the
project charter. Execute according to the standards that are identified.
Develop a decision framework to address the criteria that will be used to determine whether
project design work is completed in-house or through a contractor.
Track project reassignments with the goal of reducing their frequency.
Establish a project oversight committee to provide coaching and evaluation for City projects. The
committee should comprise of internal managers or directors from client departments and
should meet monthly initially. A standard agenda should include a summarized overview of all
projects and a selected handful to discuss in greater detail based on complexity, risk, and project
progress.
City of Denton
Capital Projects Process Improvement 15 | Page
Priority Effort
3. Design
Overview:
The design phase includes project kickoff, permit determination, and scheduling of various project reviews. It
also includes reviews for budget and schedule. According to City materials, the design phase also includes an
open house to share materials with interested parties.
We recommend that the City begin to track the following key metrics related to Design:
% of projects with a budget modification after charter approval
% of projects with a schedule modification after charter approval
% of projects with a design modification after charter approval
Observations:
Reportedly, project design modifications are frequent in this phase due to last-minute design
requests. While these are not inherently bad, they often cause project delays and scope modifications
at the outset of the project and there is limited understanding of the consequences of these
modifications.
Plan sets are poorly indexed which leads to the need for one design technician to spend half of their
time retrieving plans. The plan retrieval function does not fit neatly into the other responsibilities for
the department.
Various legal documents, such as easements and contract documents, require a legal review; however,
the Legal department has limited insight into the demand for their work which makes workload
planning a challenge.
Easement authorization levels are low and additional approvals are common. This can cause delays in
queue time and therefore delays in project execution. Similarly, participants reported that it is
common for easement approvals to expire which causes the need for rework.
Reportedly, communication between the Real Estate division and client departments is inconsistent.
Client departments wanted greater insight into status of acquisitions and more frequent updates.
Opportunity:
Projects should not proceed to the design phase until project charters and scope is finalized and
signed off.
When design modifications are necessary, they should accompany a decision log that includes the
impact to the project in terms of scope, schedule, and cost.
Initiate a project to image and index the plan sets. Require a digital copy for all future plan sets so that
future need of retrieval is minimized. Reportedly, the City has initiated a project to address this.
Institute notifications to the Legal department that includes estimated workload for necessary legal
reviews.
City of Denton
Capital Projects Process Improvement 16 | Page
Priority Effort
3. Design
Consider modifying thresholds for easement authorizations with the intent of having a speedier
process. This is an internal control that the City should evaluate from multiple facets than just
efficiency.
Establish standards for right-of-way acquisition with the understanding that client departments
should receive updates when there is a variance from that standard.
Conduct a formal kick-off meeting with all client departments to review scope, timing, resource
needs, and communication standards.
Priority Effort
4. Bid/ Advertise/ Award
Overview:
The Bid/ Advertise/ Award phase is where significant project costs begin to be incurred. This phase is largely
the shared responsibility of Capital Projects and Procurement to identify vendors to complete the work and to
seek City Council approval of contracts when necessary. Although the resources committed during this phase
is greater than the others, Plante Moran has limited feedback on this phase, as much of the procurement
process is dictated by State law and Council policy.
We recommend that the City begin to track the following key metrics related to Bid/ Advertise/ Award:
% of project timelines amended during this phase
% of EACs significantly amended during this phase
Observations:
Several program managers shared frustration with the City’s Request for Information (RFI) process.
Opportunity:
Work collaboratively with Procurement to identify opportunities for improvement while complying
with regulations and guidelines.
Conduct regular monthly meetings with Procurement to review anticipated projects and future
workloads.
Priority Effort
5. Construction
Overview:
City of Denton
Capital Projects Process Improvement 17 | Page
Priority Effort
5. Construction
This phase includes all aspects of project monitoring, accounting, and reporting to ensure that construction
occurs within the defined parameters of the project. This can include complex steps such as land acquisition
and utility coordination. This phase is critical because it is where the majority of the City’s resources are spent
and it is also the most time-consuming phase of the project. It is also the point at which the public often
becomes aware of a project, as it can impact them directly with street closures and other visible signs that a
project is underway. As a project progresses, it needs to be inspected, monitored, and reported to various
stakeholders.
Due to the nature of construction, changes will be necessary on many projects. However, the cost of a change
during the construction phase is significantly greater than in previous phases. Therefore, construction is in
many ways an evaluation of the previous phases in a project.
We recommend that the City begin to track the following key metrics related to Project Construction:
Budget to actual
Estimate to complete
Project management as a proportion of total project
Number of change orders
Change orders as a proportion of total project
Adherence to project timeline: expected to actual
Observations:
The City has multiple sets of specifications which can make an inspection a challenge, as there are
multiple sources of truth and a project might comply with one set but not comply with a different set.
Inspections program has insufficient lead time that a project is ready for inspections. This causes
frequent reassignments and workload balancing. This issue is similar to what the Legal department
experiences with requests for review.
24/48-hour requests for inspection standard is not well enforced. This increases the need for workload
reprioritization and negatively impacts morale.
Reportedly, staff time spent on projects is not always recorded and charged to the projects.
Project management tools are inconsistent – some project managers use Excel or written notes prior
to logging information into Smart Sheet for reporting.
Opportunity:
The City has undertaken a project to develop a single methodology for all City projects.
Create a feed-forward mechanism for projects that are getting ready for inspection. This will help the
Inspection program with workload planning.
Enforce inspection frequency standards or adjust staffing levels to accommodate.
City of Denton
Capital Projects Process Improvement 18 | Page
Priority Effort
5. Construction
Establish an audit function to ensure that time is being captured accurately. This is necessary to get a
total cost of ownership for projects and adequately evaluate project expenses. Time spent by client
departments should also be charged against the project.
Develop a standard set of project management and project monitoring tools using the Project
Management Institute as a best practice standard. If the logging of information remains routine and
repeatable, explore the use of a Robotic Process Automation (RPA) tool to ease the reporting process.
Introduce monthly progress monitoring by the project oversight committee. Projects to be reviewed
should include high risk, high complexity, and troubled projects. Monitoring activities should include
budget, timing, communication plan activities, and time tracking.
Priority Effort
6. Closeout
Overview:
The project closeout phase includes punch list items and booking the asset. It should also include a project
evaluation so that lessons from the project can be applied to future projects.
We recommend that the City begin to track the following key metrics related to Project Closeout:
# of projects with an evaluation/ wrap-up meeting
Observations:
Project close-out activities rarely occur. The 2017 project management manual recommends several
close out activities that mirror best practices.
Project close-out does not include evaluation of project budgeting and other measures of project
success.
Vendors are not evaluated on their performance.
Opportunity:
Execute the project close out activities described in the 2017 manual.
Review contractors used and document experiences – both positive and negative. Share results with
Procurement to inform future contracts.
Perform formal lessons learned meetings for selected projects:
o Identify changes to the method and tools
o Identify training needs
o Review project documentation
City of Denton
Capital Projects Process Improvement 19 | Page
Organizational Findings
Over the course of the engagement, Plante Moran reviewed various aspects of the organization including
work allocation, organizational design, staff sufficiency, performance management, and span of control.
Plante Moran’s approach to organizational design is that an organizational model should be developed after
evaluating process and workload considerations, which were shared earlier in this report, along with the
long-range goals for the organization. For the observations regarding these factors, the observations were
organized into four categories. Below is a summary of these categories and the corresponding priority and
level of effort associated with each:
Project Phase Priority Effort
Role Definition
Span of Control
Organization Model
Organization Reinforcements
Midway through the project, a reorganization occurred and several individuals in leadership positions
received new assignments and responsibilities. Plante Moran was not consulted in these changes and we
encourage the City to view our observations below with the understanding that some challenges may have
already been addressed through these moves.
Priority Effort
1. Role Definition
Overview:
Role definition relates to the expertise and clarity that individuals have in order to efficiently execute
common objectives. It includes roles, responsibilities, skills, accountability structures, and authority
levels.
Observations:
Staff tenure is low. Many of those interviewed had been in their role for fewer than two years.
While this is not inherently a problem, the volume of changes in both leadership and line staff
has created confusion regarding responsibilities.
Newer staff did not receive adequate training in standards and expectations related to project
management tools, templates and resources. This industrious group invented their own methods
which has caused confusion for client departments and challenges with standardized
approaches.
Staff shortages have created an expectation that supervisors complete the work that they would
normally delegate.
City of Denton
Capital Projects Process Improvement 20 | Page
Priority Effort
1. Role Definition
The total number of job classifications is greater than what Plante Moran normally encounters.
Moreover, those interviewed were asked about job responsibilities and it was common for their
responsibilities to not match the official job descriptions.
Opportunity:
Work with Human Resources to develop tactics to increase staff retention.
Standardization of project management tools will improve team cohesion.
Fill existing staff vacancies, as workload demand continues to grow. Consider the use of
temporary contractors as staff augmentation.
Although job descriptions had been recently updated, the City should consider an additional
review. Alternatively, if the existing job descriptions are accurate, the City should improve
supervision so that staff responsibilities adhere to the job descriptions.
Priority Effort
2. Span of Control
Overview:
Span of control refers to the ratio of supervisors to subordinates. This ratio varies with the complexity of
work, experience level of staff and managers, and other organizational considerations.
Observations:
Management to staff ratios varied considerably within the department.
The reporting structure for project managers is a blend of matrix and hierarchy – staff may
report to one supervisor for official management decisions such as approving time off, but they
may report to a different supervisor for management decisions related to specific projects.
Opportunity:
Standardize a range of management to staff ratios. When determining this range, include private
contractors as part of supervisory responsibility.
Streamline reporting to avoid potential conflicts.
City of Denton
Capital Projects Process Improvement 21 | Page
Priority Effort
3. Organization Model
Overview:
Organizational model describes how the business units are structured to deliver services. Organization
models are designed to satisfy and balance the specific challenges of: 1) delivering customer value, 2)
defining and enforcing high-performance business processes, 3) developing and monitoring employee
skills, and 4) meeting cost structure targets.
Observations:
The real estate and plan set retrieval functions do not naturally complement the other service
areas within the department.
The department has undergone a number of reorganizations and changes in leadership. The lack
of predictability has caused stress for several staff members.
The City’s real estate portfolio (properties owned, properties leased, etc.) did not have sufficient
personnel time dedicated to managing these assets and agreements.
Process execution is inconsistent due to lack of formal training, poor documentation, and
ineffective monitoring.
Change management will be a challenge to the organization.
Coordination and execution of financial processes are a challenge to many in the organization.
Opportunity:
The City has already taken steps to move real estate to be a part of Facilities. Consider shifting
plan set retrieval to a different department as well.
New leadership should convey a new vision, expectations, and milestones for the new
organization. These should be communicated frequently to convey a semblance of permanence.
Consider dedicating a position to managing the City’s real estate portfolio.
Make a management analyst responsible for developing procedure documentation, training
materials, reinforcing standards, and executing continuous improvement and change
management methods.
Create a financial manager position to be responsible for budget, financial reporting, and asset
capitalization processes.
City of Denton
Capital Projects Process Improvement 22 | Page
Priority Effort
4. Organizational Reinforcements
Overview:
Organizational reinforcements seek to align organizational enablers (performance management systems,
compensation, and rewards, to ensure that the design components perform the way they were intended.
Observations:
Position competencies are defined in position descriptions, but the department does not have
feedback mechanisms to monitor progress toward the competencies.
Capital Projects does not receive formal, aggregated feedback from client departments regarding
the overall performance of the department.
Internal improvement initiatives are managed similar to client projects with a defined
milestones and targets. These projects require a maintenance component to be embedded within
the organization.
Opportunity:
As part of project closeout activities, establish a project evaluation. Use the evaluations during
performance reviews throughout the year.
As part of an annual department review, conduct a survey to client departments that targets key
areas of customer value.
Rely on management analysts to facilitate internal improvement projects by having project
charters, communication plans, and status updates.
Principles of Redesign
The City asked for Plante Moran’s insights of the organizational design for the department. Feedback from
the interviews was used to develop principles that were then applied to the recommendations. These
principles were shared with department leadership:
Management to staff ratios should be consistent but account for complexity of work. Supervisory
responsibilities should be similar across the organization.
Decisions should be pushed to the lowest level practical. If staff have the competency to make
decisions, they should do so without requiring additional approvals.
Similar organizational functions should complement one another. The organization should be
grouped functionally to allow for efficiencies and to enhance organizational synergies.
Resources for tactical implementation should match strategic ambitions. Staffing levels should
reflect workload – of there are many long-term projects, it should be staffed by establishing
positions, but short-term needs should be staffed through staff augmentation.
City of Denton
Capital Projects Process Improvement 23 | Page
Organization should be designed independent of individuals. The skills and talents of particular
individuals should not impact organizational design.
If demand is temporary, use temporary labor; if demand is long-term, create positions. Staffing
levels are a key consideration in organizational design.
Institute “best practices” where applicable. The best source for project management best practices
is the Project Management Institute (pmi.org) which offers a variety of resources including
training, tools, certifications, and networking opportunities.
These principles were applied to the organization framework by examining the functions and staffing levels
of the department. Plante Moran’s review was of the organizational reporting structure that existed at the
initiation of the project. The City then instituted a reorganization that addressed some of the challenges
Plante Moran observed in that various functions that should complement one another were not designed to
do so. We support these changes. In addition, we recommend the following additional changes:
1. Staff the number of project managers and inspectors according to demand. As part of
project initiation activities, estimate the hourly allocation that will be necessary for project
management and inspection as well as the timing of when those resources will be required.
When aggregated, this data should demonstrate position needs. Rely on staff augmentation
during peak times.
2. Establish two new positions which can be within the Capital Projects department or
elsewhere within the organization:
Fiscal Manager to oversee and monitor various financial functions including grant
management, fund accounting, and asset booking. This position could also liaise
with Finance on a variety of additional responsibilities.
Management Analyst to be responsible for continuous improvement efforts
including the documentation and training of project management standards.
3. Combine the Design and Traffic Engineering functions into a single program area that
specializes in the initiate, plan, and design phases of project management. This will also
normalize management to staff ratios for these functions.
City of Denton
Capital Projects Process Improvement 24 | Page
Appendix A: Current technology environment index
(draft)
Part of improving a process is identifying the technologies used and determining the utility and efficacy of
each tool. Plante Moran compiled the below technology environment index based on the information
provided during interviews. The technology environment was not a primary focus of these interviews and
this index may be incomplete. We recommend that the City review this list and updates it to most
accurately reflect the technology used within the capital projects processes.
Initiation Planning Design Bid/
Advertise/
Award
Construction Closeout
JD Edwards TMA: Facilities asset
management system
Smartsheet:
Design
Schedule
RFI
system
PowerBI
Dashboard
JD Edwards
Microsoft
Excel:
Project
Management
spreadsheet
JD Edwards JD Edwards Legistar:
council
agenda
system
Smartsheet:
Project Master
sheet
Cartograph:
Public Works
asset
management
system
Smartsheet:
Project
intake form
Microsoft Excel:
Project Management
spreadsheet
Smartsheet:
Design
Request
form
JD
Edwards
Microsoft Word:
Change order
form
Micromain: Parks
& Recreation
system
Cartograph: Public
Works asset
management system
Microsoft
Excel:
Project
Management
spreadsheet
Microsoft Excel:
Invoicing
spreadsheet
InfoAsset
Planner:
Water/wastewater
asset
management
system
Micromain: Parks &
Recreation system
Microsoft Word:
Inspection
template
TMA: Facilities
asset
management
system
InfoAsset Planner:
Water/Wastewater
asset management
system
JD Edwards Microsoft Excel:
Project
Management
spreadsheet
City of Denton
Capital Projects Process Improvement 25 | Page
Appendix B: Action Plan
Recommendations Timeline Category Stakeholder
A Create and follow a project management
methodology
1 Coordinate the capital planning process for all departments and
consolidate into a unified CIP. Q4 2020 Initiation Capital Projects, customer
departments
2 Standardize project management and monitoring tools. Q4 2020 Construction Capital Projects
3 Standardize supporting documentation required to fortify EAC
assumptions. Q4 2020 Initiation Capital Projects, PMO
4 Use project charters agreed upon by all stakeholders for every
significant project Q4 2020 Planning Capital Projects, customer
departments
5 Execute project close out activities, including evaluation of project
budgeting, for every project. Q4 2020 Closeout Capital Projects
6 Initiate the design phase only once scope is finalized. Q4 2020 Design Capital Projects, customer
departments
7 Review and document experiences with vendors as part of project
close Q1 2021 Closeout Capital Projects, Purchasing
8 Establish right-of-way acquisition timing standards and provide
notification to customer departments when there is a deviation. Q4 2020 Design Real Estate
City of Denton
Capital Projects Process Improvement 26 | Page
Recommendations Timeline Category Stakeholder
B Clarify responsibilities
9 Develop decision framework to address project design
assignments. Q4 2020 Planning Capital Projects
10 Track project reassignments to reduce their frequency. Q4 2020 Planning Program Managers
11 Standardize communication frequency, timing and scope between
Real Estate and Legal Department. Q4 2020 Design Facilities, Legal Department
12 Work collaboratively with Purchasing to identify opportunities for
improvement while complying with regulations and guidelines. Q4 2020 Bid/ Advertise/ Award Capital Projects, Purchasing
13 Document operational procedures to limit brain drain within the
department. Q4 2020 People Capital Projects
14 New leadership should convey new vision and expectations
frequently to convey permanence Q4 2020 Organizational Model Capital Projects
15 Establish a project oversight committee to provide coaching and
evaluation for all City projects. Q1 2021 Planning Capital Projects, customer
departments
16 Implement a feed-forward notification mechanism for projects
that are preparing for inspection. Q1 2021 Construction Capital Projects
17 Institute customer department feedback loops and incorporate
relevant feedback into performance reviews. Q1 2021 Process Capital Projects, Human
Resources
18 Develop service level agreements to manage expectations on when
and how work will be completed. Q1 2021 Process Capital Projects, customer
departments
City of Denton
Capital Projects Process Improvement 27 | Page
Recommendations Timeline Category Stakeholder
C Organize department around project management
methodology
19 Assign project managers based on availability, expertise, and
professional interest Q4 2020 Initiation Capital Projects
20 Estimate project management and inspection hours to create
staffing models for project duration. Q4 2020 Initiation Capital Projects
21 Categorize projects by complexity to plan hours needed to manage
and inspect Q4 2020 Initiation Capital Projects
22 Establish an audit function to ensure time being charged to a
project is being captured accurately. Q4 2020 Construction Capital Projects, PMO
23 Institute a change management strategy to best prepare staff for
changes to department and operations. Q4 2020 People Capital Projects
24 Work with Human Resources to develop tactics to increase staff
retention. Q4 2020 Role Definition Capital Projects, Human
Resources
25 Review and update job description to reflect current
responsibilities. Q4 2020 Role Definition Capital Projects, Human
Resources
26 Assess unmet work demand and satiate with additional hiring or
contract staff, depending on the duration. Q4 2020 Role Definition Capital projects, City
leadership
27 Standardize management to staff ratio ranges. Q4 2020 Span of Control Capital Projects, Human
Resources
28 Streamline reporting structure to be hierarchical instead of
blended between hierarchical and matrix. Q4 2020 Span of Control Capital Projects, Human
Resources
City of Denton
Capital Projects Process Improvement 28 | Page
Recommendations Timeline Category Stakeholder
29
Hire a management analyst to develop procedure documentation
and training materials, as well as reinforcing standards and
executing continuous improvement.
Q4 2020 Organizational Model Capital Projects, Human
Resources
30 Hire a financial manager to be responsible for budget, financial
reporting, and the asset capitalization process Q4 2020 Organizational Model Capital Projects, Human
Resources
31 Combine the Design and Traffic Engineering functions into a
single program area. Q4 2020 Organizational Model Capital Projects, City
leadership
32
Hire a financial manager to, among other responsibilities,
coordinate communication between the Finance Department and
Capital Projects Department.
Q1 2021 Planning Capital Projects, PMO
33 Restructure department reporting lines to further streamline
operations. Q1 2021 People Capital Projects, Human
Resources
D Other
34 Initiate a project, whether internally or outsources, to image and
index plan sets. Q4 2020 Design Capital Projects
35 Invest in project management software, whether it is smartsheet
or another solution. Q4 2020 Technology Capital Projects, Purchasing
36 Assess asset management systems and reduce the number of
systems used, if advisable. Q4 2020 Technology Capital Projects, customer
departments
37 Consider shifting plan set retrieval to a different department. Q4 2020 Organizational Model
Capital Projects, City
leadership, customer
departments
City of Denton
Capital Projects Process Improvement 29 | Page
Recommendations Timeline Category Stakeholder
38 Dedicate a new position to managing the City’s real estate
portfolio. Q4 2020 Organizational Model Facilities, Human Resources
39 Consider modifying thresholds for easement authorizations with
the intent of having a speedier process. Q1 2021 Design City Manager
City of Denton
Capital Projects Process Improvement
30 | Page
Appendix C: Proposed organizational chart changes
Figure 1: Current organizational chart with functions
Figure 2: Future state functional organizational chart
Thank you.
For more information on Plante Moran, contact:
Dave Plomin | Engagement Partner
312.928.5359
Dave.Plomin@plantemoran.com