The Governance Challenge to Deliver the Expected Benefits of MMC in Complex Nonlinear NHS Environments

Time: 2:30 pm - 2:55 pm

Date: 09 Oct 2024

As NHS organisation attempt to address these challenges it has become increasing difficult to align the traditional project models and governance as new approaches emerge.
NHS policy now states a requirement that Modern Methods of Construction (MMC) will be utilised as default on all construction projects. The promise of MMC has gained popularity with its apparent ability to provide rapid, cost-effective, sustainable buildings. However, there is emerging evidence suggesting that MMC may not be delivering all the promised benefits to the NHS.
Herein the challenge emerges to apply existing methods of governance to emerging technologies and systems that may not align with the NHS’ established approach, especially with construction related projects in a complex and non-linear environment.
As NHS projects become more complex, wider engagement of specialist and stakeholders is required. However, stakeholders have a range of power, legitimacy, and urgency, leading to a conflict due of differing interests and goals. This can result in inappropriate influencing subsequent decisions. One of the challenges for governance is therefore how to navigate the stakeholder salience in relation to healthcare projects and MMC.
The complexity now inherent in the healthcare system reflect and intractable disorderliness of the contemporary world. Combined with the complex, interlocking and varying salience of stakeholder generates a non-linear environment. This presents risks for governance, as systems become more complex recognising failures becomes increasingly difficult because failures are the result of a combination of several factors and viewpoints.
Governance of capital investment is critical in providing clear structure, effective decision‐making and control processes ensuring viable and affordable investments. As NHS organisation attempt to address its growing challenges with MMC projects, the governance needs careful consideration and alignment to deliver benefits from MMC.
While MMC is seen as crucial for delivering healthcare projects due to perceived cost-effectiveness, speed, and flexibility, there are concerns that expected cost and program benefits might not be fully realised, potentially leading to delays in delivery and increased costs which may negate the MMC benefits over more traditional methods of construction.
While the pressure on the NHS may promote haste, appropriate time for preparations is required in order to deliver the benefit of a MMC project.

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