Alex Hosie VP Delivery, Petrofac Europe Stakeholder Collaboration in Project Delivery

Agenda Introduction to collaboration Petrofac – Stakeholder Collaboration in Project Delivery Agenda Introduction to collaboration Why build collaboration stakeholder relationships? Cynicism in collaborative working environment initiatives Collaboration discussion points Why collaboration is hard within project delivery – Project Owners perspective – Supply Chain perspective Commonality in collaborative project delivery blockers The key project collaborative variables Conclusion

Petrofac – Stakeholder Collaboration in Project Delivery

COLLABORATION ENVIRONMENT PROJECT RELATIONSHIPS Petrofac – Stakeholder Collaboration in Project Delivery Project success key factors COMMON PROJECT GOALS PROJECT CONTROLS COLLABORATION ENVIRONMENT PROJECT RELATIONSHIPS

Why build collaboration stakeholder relationships? Petrofac – Stakeholder Collaboration in Project Delivery Why build collaboration stakeholder relationships? DELIVERED PROJECT SUCCESS ALL PARTICIPANTS ARE INVOLVED LEADING TO A ‘BEST-CASE’ WIN FOR THE PROJECT SCENARIO NON-HIERARCHICAL PARTICIPATION OF PROJECT STAKEHOLDERS PROJECT PROGRESS % SENSE OF PURPOSE AND OWNERSHIP OF THE ISSUES INFORMATION SHARING LEADING TO EARLY IDENTIFICATION OF PROJECT ISSUES PROJECT TIMEFRAME

Cynicism about collaborative working environment initiatives Petrofac – Stakeholder Collaboration in Project Delivery LETTING GO OF CONTROL Cynicism about collaborative working environment initiatives TRANSFER OF PROJECT RISK CONTRACTORS MAXIMISING PROFIT INVOLVEMENT PROJECT OWNERS SQUEEZING MARGINS BLAME CULTURE

Petrofac – Stakeholder Collaboration in Project Delivery Time out stakeholder collaboration can help to achieve the desired project outcomes all stakeholders need to be involved in the collaboration process the history of individual stakeholder interactions must be understood before a collaborative environment can be achieved it is human nature that individual stakeholders will come to the process with their own preferred outcomes reaching consensus on the project direction is a cornerstone to the collaborative process

Project Owner Frustrations Petrofac – Stakeholder Collaboration in Project Delivery Project Owner Frustrations lack of trust silo organisation accountability and commitment lack of leadership ‘them and us’ mentality culture of delay overpromising process and procedural led approach change management

Supply Chain Frustrations Petrofac – Stakeholder Collaboration in Project Delivery Supply Chain Frustrations unrealistic timelines for project delivery relationship should be based on transparency and trust lack of credible leadership from customer organisations culture of blame towards contractors lack of trust from project owner (customer man marking) unwillingness to adopt a one team approval contractual requirements have a negative impact on delivery lack of commitment and alignment between project stakeholder

PARTICIPATION AND COMMITMENT Petrofac – Stakeholder Collaboration in Project Delivery Commonality in collaborative project delivery blockers LEADERSHIP TRUST PARTICIPATION AND COMMITMENT CULTURE PROJECT OWNER lack of trust silo organisation accountability and commitment lack of leadership ‘them and us’ mentality culture of delay overpromising process and procedural led approach change management SUPPLY CHAIN unrealistic timelines for project delivery relationship should be based on transparency and trust lack of credible leadership from customer organisations culture of blame towards contractors lack of trust from project owner (customer man marking) unwillingness to adopt a one team approval contractual requirements have a negative impact on delivery lack of commitment and alignment between project stakeholder

1 2 3 4 The project collaborative variables Petrofac – Stakeholder Collaboration in Project Delivery The project collaborative variables 1 LEADERSHIP bringing all stakeholders to the table, using interpersonal communication skills promotes the principles of collaboration during time of conflict seeks to find best outcome for the project 2 TRUST BUILDING better chance of quick, fair and often inspired resolution historical differences have to be forgotten realise that this is a time consuming process that delivers over the long-term 3 STAKEHOLDER PARTICIPATION AND COMMITMENT can either facilitate or discourage collaboration all stakeholders to be involved removal of a ‘master and servant’ relationship 4 CULTURE underpins the principle of collaboration a balance between trust and control no blame culture

Petrofac – Stakeholder Collaboration in Project Delivery Conclusion 1 UNIFIED PROJECT GOALS LEADERSHIP AND CULTURE 2 ACCELERATED PROJECT DELIVERY TRUST 3 INITIAL PROJECT DESIRED OUTCOMES ACHIEVED PARTICIPATION AND COMMITMENT Question – Is collaboration a key to project delivery?