Managing Change Through Implementation Break-Out Session Implementation Strategy Committee Moderator: Tracie Griffitt – Jacobs

The ability to implement projects successfully in the next 25 years will change due to the following trends: Globalization A Changing Workforce Evolving Technology New Markets Project Delivery Updates New Social/Political Climates

WHAT CAN CII DO FOR YOU??? CII has developed tools that will allow you to quickly address these trends and continue to improve project performance and enhance your organization’s bottom line growth

The Implementation Strategy Committee (ISC) is here to lend a hand!!! ISC Vision: Establish the CII knowledge base as an indispensable resource to our members to integrate Their work practices Their communication Manage their change in everyday work activities ISC Mission: Engage members to implement CII practices Promote participation in activities and utilization of knowledge to implement work practices and manage change

The ISC can help you make the most of CII products and tools, including: Best Practices Alignment Partnering Pre-Project Planning Team Building Constructability Lessons Learned Disputes Prevention Materials Management Planning for Startup Zero Accidents Techniques Quality Management Change Management

Performance Improvement Workshops (PIW’s) October 27-29, Chicago, Illinois Implementation Guide (IR166-3) Support your company-assigned Implementation Champions (IC’s) ISC Point of Contact/Mentoring IC Toolkit

Implementation journey overview and best practices showcase by CII ISC Members

Case Study: One Company’s Implementation Journey “Perspective of an ISC member” Maria De Isasi, AIA

The CII Implementation Model Celebrate Success Measure Results Product Implementation Products Training Product Champions/Review Board Implementation Plan and Goals Self Audit Corporate Implementation Champion Corporate Commitment CII Products CII Support Benefit/Cost Data

Implementation Plan and Goals MORE Guidance on CII Implementation Implementation Plan and Goals

Early Phases of Implementation Self-Audit: Implementation: interviews with project leaders Training and participation in best practice organizations Metrics review Needs Analysis: Review of existing operations audits and reports Staff survey, interviews, and feedback Matched needs to best practices Report of findings distributed in January 2008

Successful Implementation Some Pointers: Must understand organizational culture when managing change Listen, gather data, and then take the “path of least resistance” – need a success early on Select Best Practices based on an organization’s needs Understand significance of timing: coordinate your program with other initiatives (avoid competing for resources) Find projects and partners in implementation May need to take some calculated risks – can do some amount of backtracking and re-organizing

“Perspective of an IC & ISC member” Martin Smith Case Study: Implementation of CII Zero Accidents Techniques: a contractor’s perspective “Perspective of an IC & ISC member” Martin Smith

What are the techniques ? Five high impact techniques: Pre-project & Pre-task planning Safety Orientation & training Recognition & award program Health risk assessment program Accident & incident investigation

Practical steps to implementation ? Identify team of topic experts. Plan roll-out – schedule (6 month window) Translate CII research into practical take away points i.e. content Integrate with own systems – add practical examples of documents Add “pull” – need to read e.g. cartoons Production of material Launch – typically at Xmas function Training roll-out Measure Re-evaluate effectiveness & adopt Incident Investigation Proper incident investigation can prevent future accidents

All incidents must be reported – even if no one was injured! Example of Content Incidents are Formally Reported All incidents must be reported – even if no one was injured!

Measure Results Qualifications: 2005 major general SHE drive CII ZAT only introduced in month 12 Most techniques were in place CII ZAT awareness assisted drive Months 23 -30 introduced upswing in workload Month 23-30 fabrication facility added DIFR = Disabling Injury Frequency Rate (DI’s /1,000,000 man-hours) = Lost Time Incidents x 1,000,000 / actual man-hours worked

Key Notes YOU ARE A MEMBER – USE THE EXPERTISE AVAILABLE ! Appoint an Implementation Champion (IC) Attend the Performance Improvement Workshops (PIW) Use the Implementation Strategy Committee (ISC) members to assist your IC – each has been assigned a mentor within the ISC committee Use CII website & functionality to your benefit Use the Implementation Guide IR166-3 Talk to other IC’s

“Perspective of an ISC member” Vikas Moharir Case Study Partnering DuPont-JBEK, A successful Partnering Alliance since 1994 “Perspective of an ISC member” Vikas Moharir

CII – Partnering Process Model Owner’s Internal Alignment Partner Selection Partnering Relationship Project Alignment Workprocess Alignment

The Partnership Focus Total Project Lifecycle Requirements Adding Value Product CLIENT Operation PARTNERSHIP Focus Start-Up Integrated Team Risk Sharing EPC Approach Value Engineering Constructability Business Objectives Project Objectives Project Strategies Construction Procurement Engineering Definition Pre-Project

Linkage of Contractor Strategic and Control levels to Owner Project Models EXECUTION CONTROL STRATEGIC SPECIFIC WORKPROCESSES, SYSTEMS AND PROCEDURES Phase 1 – Feasibility & Concept Stage 1A Appraisal Stage 1B Feasibility Study Stage 1C Concept Stage 1D Definition Owner 2 Owner 1 FEL 1 FEL 2 Appraise Select Contractor Stage 2A System Definition Stage 2B System Design Definition Stage 2C Global Design Phase 2 – System Definition FEL 3 Define Execute Project Implementation Stage 3A Detail Design & subcontr Stage 3B Pre-fab. & Manuf. Stage 3C Fabrication Phase 3 – Detailing & Fabrication Stage 4A Transport and Positioning Stage 4B Assembly Stage 4C Mechanical Completion Phase 4 – Assembly & Erection Strategic Control Phase 5 – System Completion Stage 5A Commissioning Stage 5B Off Shore Installation Stage 5C Start Up Stage 5D Take Over Facility Operation Operate

MEASURING VALUE Performance metrics Documented cost savings, process improvements, etc. Customer satisfaction surveys Continuous improvement process

MEASURE RESULTS Total Project Cost reduced by 10% Value Engineering Savings increased 337% Project duration reduced 20% Rework reduced 50% Results documented by CII through Partnering Relationships

CII’s key factors for Partnering Success Establishing Trust Getting top management’s support Establishing win-win objectives Addressing internal barriers Getting champion to direct the process Developing measures, linked to process

CII – Available support around Partnering Training TAL-102 – Online Education Implementation Resource IR 102 Education Modules EM 102 Research Summaries RS 102 CII Community of Practice – Partnering Kim Allen Moderator Implementation Strategy Committee (ISC)

Case Study: Front End Planning Why Not ? “Perspective of an ISC member” W. Scott Cameron

Why is it we never have enough time to do it right the first time, but plenty of time to do it over again ? PLANNING !

What is Pre-Project Planning ? Owner Driven Complex process adapted to meet business needs Alignment of Stakeholders

Pre-Project Planning Sub-Processes Organize the pre-project planning effort Define and select alternatives Develop a project definition package Decide whether to proceed

Case Study National Product Expansion 5 Sites – 2 sites defined at time of funding Cost - $5-10Million per site Schedule Site #1 – Start-up 18 weeks from funding Site #5 – Start-up 32 weeks from funding Scope – “Identical” process and packing components modified to fit existing facilities. Site specific utilities

In Summary Use the tools, best practices, and human capital available to you as a CII member Best Practice Pre-Project Planning Pre-Project Planning Alignment Thermometer Project Definition Rating Index (PDRI) Building Projects Industrial Projects Establish an Implementation Champion (IC) and empower them to leverage the CII knowledge.

REMEMBER… Utilizing the right tools can significantly improve your organization’s ability to address change, improve project performance and do the job right!

Improve YOUR project performance, Final Thoughts… Assign an Implementation Champion (IC) Utilize the CII tools and best practices Improve YOUR project performance, Improve YOUR ability to tackle change, Enhance YOUR bottom line growth!

Panelist Discussion