Intrested in Enhancing client experience in engineering & construction - Full Version

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Unprecedented Worldwide growth in Civil & Infrastructure markets
Client drivers different as scenario is different from the statusquo

Industry needs to disrupt through Innovation
Changing our Thinking to determine a changed Outcome

Requiring a shifting mindset to create new methodologies:

Design with the end in mind
Delivery structured correctly and Implemented early
Innovative execution strategies are required in the front end
Early definition and engineering integration to enable modularization

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Intrested in Enhancing client experience in engineering & construction - Full Version

  1. 1. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Enhancing Client Experience in Engineering & Construction Integrated Approach to Engineering & Construction
  2. 2. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Management Consultants Project Consulting - Optimized Project Delivery Innovator Established in 2002 SERVICES Program Management Project management Transition Management Contract Management Integrated Design Management Workplace Envisioning Applying knowledge, skills, resources and processes To exceed stakeholder needs and expectations OPTUM+ Creating Value through Optimized Project Consulting Solutions “As our namesake Optum+ suggests, we have set out on to create value by optimizing project delivery. It's going to be an interesting journey.” – Philip Thomas Optumplus
  3. 3. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Expertise in solving project complexity comes through: Our long industry experience Our process of thinking that offers the best of both aspiration and pragmatism The experience and the tests we faced in our past projects have: Created experience that leads to effectiveness Enhanced daily by new learning OUR EXPERIENCED THINKING Creating Value through Optimized Project Consulting Solutions “There is a new player emerging on the cultural and business scene today: the idea entrepreneur. …. The idea entrepreneur is an individual, usually a content expert and often a maverick, whose main goal is to influence how other people think and behave in relation to their cherished topic. These people don’t seek power over others and they’re not motivated by the prospect of achieving great wealth. Their goal is to make a difference, to change the world in some way.” Idea Entrepreneur: The New 21st Century Career Harvard Business Review
  4. 4. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Part 1: WHY - Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction Part 2: WHAT - We need to do HOW - We achieve it Optimizing Project Delivery Solutions CONTENTS “There is nothing so practical as a good theory. A good theory confirms the conventional wisdom that "less is more." A good theory does less because it does not tell people what to do. At the same time, it does a lot more because it helps people organize what they know and uncover what they do not know. A good theory gives people the tools to discover what is best for them.” Adam M. Brandenburger and Barry J. Nalebuff in The Added-Value Theory of Business Creating Value through Optimized Project Consulting Solutions
  5. 5. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Dictionary ex·pe·ri·ence [ik-speer-ee-uhns] noun a particular instance of personally encountering or undergoing something: business experience. Philosophy the totality of the cognitions given by perception; all that is perceived, understood, and remembered. definition of experience by Dictionary.com DEFINITION “Our DNA is as a consumer company - for that individual customer who's voting thumbs up or thumbs down. That's who we think about. And we think that our job is to take responsibility for the complete user experience. And if it's not up to par, it's our fault, plain and simply.” Late Steve Jobs – Apple Corporation Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  6. 6. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Client always remembers the last project On how it WENT well OR How it did NOT go well Our reputation with a client is only as good as the last project Is this or experience? If so We have to: Enhance our client experience Innovate our experience delivery To create sustainable value WHY: EXPERIENCE "Experience innovation will be a crucial component for companies seeking to remain relevant and retain customer loyalty.” Rick Wise, CEO of Lippincott in Fast Company Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  7. 7. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Are we creating a sustainable value A value as a promise of value to be delivered & a belief from the customer that value will be experienced. If not, we need to: DO things differently: to build deeper relationships with our clients to bring our own ideas to the table to share in the inherent risks of innovative project delivery & in the potential rewards Enabling our clients to focus on their core strengths Or are clients more involved in managing us? CREATING SUSTAINABLE VALUE "Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation - Kaplan & Norton Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  8. 8. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery By working with clients: Who have interesting new project delivery challenges, clients who seek: Enablers Experienced Thinkers to meet those challenges with innovative solutions to deliver EPCM projects By responding to the changing project context with new ideas not only in the delivery of Design Engineering Construction elements itself, but transforming how we engage our clients FOCUS ON OUR CORE STRENGTHS “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation.” Andrew Grove. Intel Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  9. 9. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery 1. By enhancing project experiences for our clients By creating customized project delivery experiences 2. Assist clients to stay competitive Advise & recommending proven delivery and solutions Next: By navigating the intent of the project objectives through the project lifecycle Envision a new methodology for each construction elements & Create new possibilities of delivery within those systems Thus addressing many of the client drivers of their specific industry segment ENGAGE OUR CLIENTS “Creating value is an inherently cooperative process, capturing value is inherently competitive.” Barry J. Nalebuff - Milton Steinbach Professor of Management at Yale School of Management Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  10. 10. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Address client drivers: Enables client to focus on CORE business Fewer interfaces for Client to MANAGE Reduced capital COST Maximize labour PRODUCTIVITY Create efficiencies through STANDARDIZATION Increase CONSTRUCTABILITY Improved predictability of project EXECUTION Improved predictability of project RISK Reduced project TIMELINE Improved SAFETY & QUALITY Lower Environmental/Socioeconomic IMPACT ADDRESSING > CLIENT DRIVER “Under relentless pressure to control costs, companies in resources industries ranging from oil and gas to mining, chemicals and utilities are relying more than ever on outside providers to upgrade and maintain their critical production facilities and assets. But the management of contractors is not getting any easier, compelling companies to adopt a more rigorous approach.” Building Contractor Management Excellence. Accenture Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  11. 11. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Resolving issue in project delivery: Too many layer of owner construction management Cost Influence lost after design/engineering stage Innumerable bid cycles & multiple construction silos Layer of subcontractors creating multiple silos Risk/contingency premium when risk carried by contractor Inconsistent safety & quality Meeting Commitments: Meeting clients business objectives Improve project overall NPV - Net Present Value Reduce financial cost of project delivery Meet the ROI of the business objectives of our client firm Shortest time to market for client product or services BY RESOLVING > MEETING "Four decades of international Architectural, Engineering, and Contractor (AEC) industry publications reinforce poor communication and information transmission; coordination; and teamwork issues, are the cause of countless performance problems on numerous AEC projects.” AEC INDUSTRY CULTURE: A NEED FOR CHANGE A Weippert & S. L. Kajewski Queensland University of Technology, Brisbane, Australia Part 1: WHY – Purpose, Cause & Belief Enhancing Client Experience in Engineering & Construction
  12. 12. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Changing our Thinking to determine a changed Outcome A clear vision of project delivery Customizable solid proven design/engineering and execution Ensuring constructability right through the value chain Provide an integrated portfolio of solutions & services Creating an controlled & accountable ecosystem to meet outcome THROUGH DISRUPTION > INNOVATION “Massive disruption is coming, and the only question is whether your firm is going to cause it or fall victim to it. Disruption is not easy--either to create or to confront. We have no illusions about that”. Bruce Kasanoff & Michael Hinshaw –Fast Company Article: 7 Ways to Disrupt Part 2: WHAT - We need to do HOW – We achieve it Integrated Approach to Engineering & Construction
  13. 13. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Changing our Thinking in : Project Program & Project Planning Design & Engineering Procurement and Supply Chain Construction & Execution Changing our Thinking through: Greater Accountability Client Relationship Management Lowered capital Cost & Project Timeline Maximize labour Productivity & Constructability Create efficiencies through Standardization Improved predictability of project Execution & Risk Improved Safety & Quality Lower Environmental/Socioeconomic Impact CHANGED: THINKING "Great leaders maintain the balance between achieving results today and innovating to seize new opportunities in the future. So if you want to avoid disruption –or even lead disruption —then you need to greatly accelerate the way you operate internally to keep pace with a rapidly changing world. Randy Ottinger –Forbes Contributor, Kotter International Part 2: WHAT - We need to do HOW – We achieve it Integrated Approach to Engineering & Construction
  14. 14. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Results in innovative changes to our Outcome : NON TRADITIONAL approach to design and procurement cycle Transfer of work from the field to OFFSITE Move Man-hours out of the FIELD Reduce Plot size through DEFINED process blocks Earlier FREEZE of key equipment/concepts Fabricate in a CONTROLLED work environment Address extreme CLIMATE condition restrictions Mitigate Environmental PERMITTING Provide early START UP & Commissioning Reduce LAYDOWN area for storage and fabrication Requiring a shifting mindset CHANGED > OUTCOME “We construct buildings, erect institutions, and develop organizations to yield linear responses and predictable behavior and ultimately to achieve the social goal of control.” Dr. Alan Beyerchen -Ohio State University Part 2: WHAT - We need to do HOW – We achieve it Integrated Approach to Engineering & Construction
  15. 15. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery TRADITIONAL APPROACH: INTEGRATED APPROACH: Shifting mindset will create new methodologies Project Program & Planning Design & Engineering Procurement and Supply Chain Construction & Execution SHIFTING MINDSET Overall Time Savings 25% - 50% Site Assembly & Close out Site Preparation Offsite Construction /Manufacture Design, Engineering, Permitting, Approval Site Prep, Civil, Engineering, etc Site Construction & Close out Design, Engineering, Permitting, Approval “Disruptive innovation is not just about following a process. It represents a mindset — a rebellious instinct to discard old business clichés and remake the market landscape. An eagerness to deliberately target situations where the competition is complacent and the customer has been consistently overlooked or under-served.” Disrupt By Luke Williams-Think the Unthinkable to Spark Transformation in Your Business Part 2: WHAT - We need to do HOW – We achieve it Integrated Approach to Engineering & Construction
  16. 16. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery By shifting our mindset in: PROJECT PROGRAM & PLANNING: Finalise program and scope be the EXPERT (Think Product development) Identifying process blocks with distinct BOUNDARIES (Think Roadmap) Identify process blocks to split into MODULES (Think Lego) Incorporate prefabrication, preassembly and offsite fabrication (Think Ikea) DESIGN & ENGINEERING: Before engineering design create concepts for DELIVERY (Think Logistics) Replicated Standardized Modular Designs (Think Manufacturing) Early Constructability / Modularization PLANNING (Think Kit of Parts) Create Work packages support construction EXECUTION (Think Shipbuilding & Aircraft manufacturing) NOTE: Integrated Approach driven by Industry type, geographical location, site access and type of facility CREATING NEW METHODOLOGY: 1 Part 2: WHAT - We need to do HOW – We achieve it Integrated Approach to Engineering & Construction
  17. 17. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery By shifting our mindset: PROCUREMENT & SUPPLY CHAIN Identify multiple offsite locations to MODULARIZE (Think offshore Manufacturing) Identify and sustain a new delivery ECOSYSTEM (Think Amazon /Apple disruption) CONSTRUCTION & EXECUTION Commissioning & Start-up at offsite at various POINTS (Think Value Chain) Create a new project delivery & Installation SYSTEM (Think Packaging Assembly line) Require minimum site FOOTPRINT (Think Hobbit Village) NOTE: Integrated Approach driven by Industry type, geographical location, site access and type of facility CREATING NEW METHODOLOGY: 2 Part 2: WHAT - We need to do HOW – We achieve it Integrated Approach to Engineering & Construction
  18. 18. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Unprecedented Worldwide growth in Civil & Infrastructure markets Client drivers different as scenario is different from the status quo Industry needs to disrupt through Innovation Changing our Thinking to determine a changed Outcome Requiring a shifting mindset to create new methodologies: Design with the end in mind Delivery structured correctly, planned & implemented early Innovative execution strategies are required in the front end Early definition and engineering integration to enable modularization SUMMARY Real competitive advantage is your people using their ingenuity to save your customers time or money, solve a problem, or make them feel good.” - Anne C. Graham - Managing Director, The Legendary Value Institute Creating Value through Optimized Project Consulting Solutions
  19. 19. ANOPTUMPLUSPRESENTATIONCreatingValuethroughOptimizedProjectDelivery Profile http://ca.linkedin.com/in/philipthomasoptumplus/ Consulting: www.optumplus.com Experienced Thinking: www.smartwerke.com Conversation: www.thinkworkplace.com Email: philipthomas@optumplus.com Creating Value through Optimized Project Consulting Solutions

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