The Group of Seven PROGRAM PRESENTATION NAIAD Company Ltd 2017. All rights reserved www.naiad.ca

1. The Point 2. Concepts

The journey begins with principles 1. THE POINT The journey begins with principles NAIAD Company Ltd 2017. All rights reserved www.naiad.ca

” The transformation of a traditional project management organization to a PPA framework is holistic and shuns tweaking at the edges. The transformation entails a new management paradigm that rests upon a group of seven prime directives called the Primes. Steven Keays (2017)

Group of Seven The foundational prime directives 1. Prime purpose The project and its management serve a single purpose: to realize a profitably performant asset 2. Prime principle Do right by the project in all discussions, considerations and decisions. Between egos and the project, the project must prevail 3. Prime mindset Direct accountability, embodied in the directrix, governs management 4. Prime execution Manage by getting to no as the starting position, considering the budget as the investment vehicle to realize the asset. The budget is invested, not spent, in accordance with the constraint diamond 5. Prime execution Progress all work incrementally, taking care of completing each task fully before moving on to the next one 6. Prime tool The Unit Transformation Process (UTP) 7. Prime control Trust but check rather than ubiquitous review and approve. Generate execution performance data in real time, using the collection substrate edifice and performance assessment metrics to measure progress.

2. CONCEPTS Prime details

Primes 1 and 2 Constraint Diamond and Valunomy “Doing right by project” is incompatible with the constraint trifecta (cost, quality, time) Focus must instead be on the end game and governed by the constraint diamond (cost ,time, revenues, performance, expenses, profits) Decisions taken on the basis of Valunomy rather than cost effectiveness Cost effectiveness: lowest cost now. Cheapest price of given product or service Valunomy: Highest ROI later. Most product or service for given cost

Prime 3 Direct Accountability and Directrix Direct Accountability is the path of attribution of merit or blame. Creates distinctions between parties that are accountable, responsible and that approve. The accountable party (AP) gets the work done The responsible party (PP) provides the resources to the AP needed by the work The probate party (PP) is given the authority to approve an output before it is passed on to the next UTP The AP and PP are always separate Together, the AP, RP and PP form the Directrix AP, RP and PP mandates are assigned to individuals, never to groups The execution of the work is managed at the interfaces between adjoining UTPs

Prime 4 Spend vs invest All project decisions made in terms of what’s right for the project. Invest vs Spend All expenditures are viewed as investments into the future ROI performance of the asset. Valunomy Valunomy decides the choice, based on TIC and TCO considerations. Budgets Budgets designed to acquire the highest long-term ROI potential, not immediate cost savings. Engineering bias Development expenditures biased towards lifecycles 1 through 4. Slide 8

Prime 5 2 3 4 5 6 7 8 ICPM Lifecycle Phases 1 Installation integration Plant design and nucleation Asset mitosis Construction Physical configuration of asset Construction basis Slide 39 Realization planning Asset validation System definition Plant integration Conceptualization stage Realization stage

Prime 6 Unit Transformation Process (UTP) Fundamental tool for sequencing work and its associated tasks. The UTP runs a set of inputs through a process to produce one or more outputs Attributes are qualifiers to be embedded into the output (a part number for eg.) Targets quantify the execution of the activity Characteristics are derived from the contents of the output (eg. quantities) Metrics are progress actuals vs targets Enablers are supplied by the organization to execute the activity Constraints bound the work

Prime 7 Acceptance Maturity Model Work verification based on trust but verify rather than review and approve What is implies Acceptance levels Vendor maturity levels Faith in the work of others. Hire competent parties to do the work. Execute checks as a function of acceptance basis. 1 Execute and accept. 2 Execute, approve & accept. 3 Execute, verify approve & accept. 4 Execute, validate, verify, approve & accept. Based on expertise and history: Expertise: SME & Domain History: Owner & track record Slide 18