Breakthrough Strategy Today and Tomorrow Chatt Smith Stone & Webster Engineering Corp. Breakthrough Strategy Committee 2000 CII Annual Conference Nashville, Tennessee

“I think there is a world market for maybe five computers.” –Thomas Watson Chairman of IBM 1943

“640 K ought to be enough for anybody.” –Bill Gates Microsoft Corporation 1981

“CAD is not applicable to the Construction Industry.” –CII Board of Advisors 1983

Breakthrough Mission The Breakthrough Strategy Committee will… –develop strategy/approach to identify and facilitate activities to achieve breakthrough performance. –develop process that will insure adequate generation of breakthrough, research, and other ideas. –initiate continuing list of appropriate breakthrough opportunities. –interface with other standing committees for CII core processes. –evaluate, identify, and obtain of funding for breakthrough projects. –assess progress and results.

Breakthrough Vision “To establish a long-term vehicle in CII that continues to identify, nurture, develop, and harvest breakthrough in capital project delivery for the substantial benefit of CII members.”

We Have Defined Breakthrough As: Clearly dramatic change leading to major performance improvement (cost, schedule, or quality).Clearly dramatic change leading to major performance improvement (cost, schedule, or quality). Beyond “Best Practices” or incremental improvement.Beyond “Best Practices” or incremental improvement. Includes broad interpretation of:Includes broad interpretation of: –Technology –Practices –Mindset –Truly effective implementation Potentially the realization of a BHAG.Potentially the realization of a BHAG.

A BHAG is an outrageous, seemingly impossible objective, YET it: –is clear and compelling. –is a powerful mechanism to stimulate progress. –serves as a unifying focal point for breakthrough effort. –is way beyond incremental improvement. Q:What is a BHAG? A:Big Hairy Audacious Goal

The Breakthrough Process 4D CADD Composite Materials Pipe Melding Internet- Based Design FIATECH First Part Correct Assess Nurture Develop Harvest Identify

Winnowing Away Number of Ideas Stage of Development 3,000 bright ideas = 1 winner (The Economist, February 20, 1999)

Breakthrough as a Core Process in CII Input Ideas Research Breakthrough Implementation

Innovations: Composite Materials

Innovations Outside of CII

Enter the Visual 4th Dimension

Breakthrough Thinking Real vs. Dream Now vs. Never Me vs. Them

“It’s kind of fun to do the impossible.” – Walt Disney