1. Organisational Learning, the SPICE Way
Prof. Marjan Sarshar

2. Contents SPICE First phase of research Second phase of research
Level 2 of SPICE
The assessment
Key learning points
Second phase of research
Level 3
Types of knowledge
Types of knowledge transfer
Future Directions

3. SPICE

4. SPICE FM Mission:
“To develop a structured learning framework for FM organisations.”
Based on Capability Maturity Model.

5. Maturity Characteristics
Immature
Processes improvised
Reactionary / Fire-fighting
Unpredictable Quality
Good results due to heroic efforts
Mature
Processes managed on an organisation-wide basis
Clear process roles and responsibilities
Results predictable
Commitments realistic

6. SPICE Model Level 5 Level 4 Level 3 Five Levels of Process Maturity
Continuously Improving
Level 4
Quantitatively Controlled
SPICE Model
Level 3
Well Defined
Five Levels of Process Maturity
Continuous improvement based on small evolutionary steps
Each level lays successive foundations
Each level comprises a set of key processes that, when satisfied, stabilise an important component in the organisational learning process
Level 2
Planned & Monitored
Level 1
Initial

7. Level 5 Level 4 Level 3 Level 2 Level 1
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Well Defined
Level 1 - Chaotic
Project visibility & predictability are poor
Good practices cannot be repeated
Commitments are made but not met
A series of crises are regularly encountered
Level 2
Planned & Monitored
Level 1
Initial

8. Level 5 Level 4 Level 3 Level 2 Level 1
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Well Defined
Level 2 - Planned & Tracked
A degree of project predictability
Successful processes are repeatable
Level 2
Planned & Monitored
Level 1
Initial

9. Level 5 Level 4 Level 3 Level 2 Level 1
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Good Practice Sharing
Level 3 – Good Practice Sharing
Organisation has capability to capture and share best practice
Management has good insight into process potential and predictability
Quality and functionality of all projects are well tracked
Level 2
Planned & Monitored
Level 1
Initial

10. Level 5 Level 4 Level 3 Level 2 Level 1
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Well Defined
Level 4
Quantitatively Controlled
Level 2
Planned & Monitored
Level 1
Initial

11. Level 5 Level 4 Level 3 Level 2 Level 1
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Well Defined
Level 5
Continuously Improving
Level 2
Planned & Monitored
Level 1
Initial

12. First Phase of Research
Level 2 of SPICE
The assessment
Key learning points

13. Key Management Processes
Level 5
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Well Defined
Key Management Processes
Level 2
Planned & Monitored
Service Requirement Management
Service Planning
Service Performance Monitoring
Supplier Management
Health and Safety Management
Risk Management
Service Co-ordination
Level 1
Initial

14. Key Management Processes
Process Enablers
Service Requirement Management
Service Planning
Service Performance Monitoring
Supplier Management
Health and Safety Management
Risk Management
Service Co-ordination
Commitment
Ability
Activities
Evaluation
Verification

15. The Assessment Procedure
Independent
Vertical organisation
Questionnaires & interviews
Costs reduce with experience

16. The Findings Key Process Areas (Level 2) Process Enablers Mgt Strength
ord
Opportunity for
Mgt
Improvement
Mgt
Brief & Scope of Work
Project Change Control
Risk Management
Project Planning
Project Tracking
Health & Safety
Project Team Co-
Sub-contract
Process
Enablers
Commitment
Ability
Activities
Evaluation
Verification

17. Organisational Mirror
All teams have agreed with the findings, as they stand.

18. Key point 1:
The improvement process is more important than the improvement methodology.
Don’t just buy a methodology.
Don’t save money through short cuts in implementation.

19. Key point 2:
Views on different levels of the organisational hierarchy can be generally similar, however these views differ between the level.
Senior managers often have a “visibility gap”. Their views on operational capabilities are often optimistic.

20. Key point 3:
Good (learning) organisations have shared views across the levels of the hierarchy.
Avoid one way (top down) flow of information.

21. Key point 4:
In a learning organisation, strategy is informed by operational capability, and operational improvements are based on strategy.
Develop improvement and learning infrastructures.

22. Alignment with Strategy

23. Barriers Across Disciplines
Architect
Civil Engineer
Contractors
What
Client?
Focus on own functions
Project Management

24. Barriers Across Mgt Hierarchy
CEO
What
Client?
Senior Manager
Middle Manager
Staff

25. Different Strategies
Manufacturing company- gold, silver and plastic spoons abandoned.
Automotive company- sent board members on production shift
SPICE approach
McKinsey survey identifies direct links between good company performance and open door management policies, as well as cross-disciplinary collaboration

26. Organisational Learning: Level 2
Process thinking becomes systematic
Inter-team learning established (Evaluation)
Pre, during and after processes
Serial transfer of knowledge
Not driven by KPIs

27. Second Phase of Research Exploring the “Know How”
Level 3 Types of knowledge Types of knowledge transfer

28. Process customisation Process training Process improvement resourcing
Level 5
Continuously Improving
Level 4
Quantitatively Controlled
Level 3
Good Practice Sharing
Level 3 – Good Practice Sharing
Process definition
Process customisation
Process training
Process improvement resourcing
Level 2
Planned & Monitored
Level 1
Initial

29. Key Learning: (in sharing best practice)
Strong business case
Ford: 5% improvement in productivity / year
Type of knowledge
E.g. operational VS strategic
Mechanisms for creation; acquisition; and sharing
E.g. ICT; face to face; meetings; peer reviews; etc.
Depending on type of knowledge the transfer mechanisms are different

30. Ford Case Study (1) Business case- 5% productivity improvement
37 plants
Each week 5-8 best practices are “pushed” on the web
Each plant responds: (i) adopted, (ii) under investigation, (iii) previously adopted, (iv) not applicable, or (v) too costly.
If adopted, report on cost as well as savings.
Accounting is done according to well understood organisational methods.

31. Ford Case Study (1) The reports are reviewed at VP level.
A public report is published on how many best practices have been submitted an adopted by each plant.

32. Lockheed Martin Case Study (2)
Business case- Achieve $2.6 billion savings through KM, within three years
Following a three year re-structuring
Each site has a portion of this target
Benchmarking across 47 sites
70 practices
Within six cost centres
No site was best at everything
Each site was best at something

33. Lockheed Martin Case Study (2)
30 “transfer teams” were set up
Each had eight representatives
Two from high benchmarks
Six from low benchmarks
Quarterly reports contained financial + participation information

34. BP’s Knowledge Assets Case Study (3)
A repository of strategic knowledge
“What does the end-user need to know about this topic?”
Business context
Guide lines
Links to people
Performance histories
Artefacts and records of relevance
Combination of explicit + tacit knowledge
Stories, quotes, reasoning, examples

35. BP’s Knowledge Assets Case Study(3)
Constructed during the experience, used after
Developed by knowledge specialists
Example of use
Task- Cut the cost of Venezuela operations from $70m to $40m in seven weeks
Solution- Examine Knowledge Asset from Colombia

36. Large Construction Company Case Study 4
70% of value of projects were sub-contracted
Needed a sub-contractor data & knowledge base
Senior mgt led the development of one
System failed
Project managers would not share names of their best subcontractors
Project managers found their best subcontractors through relationships, rather than databases

37. Process Customisation Process Improvement Resourcing
Key Organisational Processes at Level III (lacks strong business direction)
Process Definition
Process Customisation
Process Improvement Resourcing
Process Training

38. Future Directions: SPICE FM 3
Strong business drivers
High level sponsorship & investment
Depending on type of knowledge the transfer mechanisms are different
Resourcing for creation; acquisition; and sharing
Both receivers and transmitters must benefit

39. Organisational Learning, the SPICE Way
Prof. Marjan Sarshar