Improving Your Innovation Potential Using the Innovation Maturity Model 2009 CII Annual Conference Reno, Nevada

Where Were You 12 Months Ago?

What is Innovation? Innovation is the act of introducing improvement in a process, product or system that is novel to the organization and results in increased value for stakeholders

Why Worry About Innovation? Clear link between most admired, most profitable and most innovative firms Need for greater speed and specific customer needs Essential to prosperity and survival

EPC Industry Perception: Key Findings How innovative is the EPC Industry? –74% say Neutral to Highly Non-Innovative Satisfaction with innovation within the company? –55% Neutral to Highly Dissatisfied Where does innovation most easily occur? –71% Individual Projects Where is innovation most needed? –85% Department or Organization-wide practices

Key Attributes of Innovation Leaders Leadership Learning Processes Collaboration Culture Customer focus Resources Risk perspective These key attributes form the structure for the Innovation Maturity Model.

Measuring Innovation Attributes

Measuring Innovation Attributes (continued)

Testing the Innovation Model Additional data from CII and Charles Pankow Foundation Members Southland Industries WorleyParsons CH2M HILL Fluor CSA U.S. Army Corps of Engineers interactive case study

Testing the Innovation Model Hundreds of additional survey responses logged Results consistent with initial findings but generally more positive

Case Study Insights It’s not about the numbers. Use the Model to stimulate in-depth conversation and critical analysis. Strong connection to lean philosophy.

Key Attributes of Innovation Leaders Leadership Learning Processes Collaboration Culture Customer focus Resources Risk perspective

Clear Common Patterns from Case Studies Areas of strength Opportunities for improvement

Key Opportunities for Improvement Schedules and budgets are too tight to take a chance on something new Lack of resources including staff time Lack of a firm strategy for innovation Owners do not recognize the value Risk perspective does not favor innovation Single event thinking

Attitude Towards Risk Counter-productive risk perspective –Risk can be profitable if properly syndicated –EPC customs tend to concentrate risk Attitude towards change Single event thinking

Where Do We Go from Here? Implementation Session! –4:30 pm today and 9:30 am tomorrow in Tuscany 8

Where will we be next year?

Implementation Session 4:30 pm todayTuscany 8 9:30 am tomorrowTuscany 8

2009 Annual Conference Reno, Nevada July 28-30, 2009

General Motors Construction Industry Institute Benchmarking User Award BE&K, A KBR Company Reno, Nevada Annual Conference July 28-30, 2009

2009 Annual Conference Reno, Nevada July 28-30, 2009

Information Integration to Improve Tuscany 9 Capital Project Performance Don’t Gamble with Your Project’s Performance:Tuscany 10 CII Benchmarking & Metrics Case Study: U.S. Department of EnergyTuscany 11 & Hill International Improving Your Innovation PotentialTuscany 8 Using the Innovation Maturity Model Construction Industry Institute Implementation Sessions: Wednesday 4:30 p.m. and Thursday 9:30 a.m. Reno, Nevada Annual Conference July 28-30, 2009

7:00–10:00 pmWelcome Mixer: “The Magic of CII” 8:45 pmThe Magic Underground Wednesday Evening

Information Integration to Improve Tuscany 9 Capital Project Performance Don’t Gamble with Your Project’s Performance:Tuscany 10 CII Benchmarking & Metrics Case Study: U.S. Department of EnergyTuscany 11 & Hill International Improving Your Innovation PotentialTuscany 8 Using the Innovation Maturity Model Construction Industry Institute Implementation Sessions: Wednesday 4:30 p.m. and Thursday 9:30 a.m. Reno, Nevada Annual Conference July 28-30, 2009