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Mike Ward - Improving benefits management at Sellafield


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A presentation at the APM Benefits Summit on 25th June 2015

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Mike Ward - Improving benefits management at Sellafield

  2. 2. Introductions • Mike Ward – Head of Capability for programme and portfolio management • Richard Peel – Outperform Senior Consultant helping to deliver change
  3. 3. Insert Sellafield Context slide here….
  4. 4. The numbers • Annual Budget around £1.9bn • Life Time cost of £67.2bn • Life Time plan over 100 years of work • Typically over 600 projects live at any one time • Managed through 3 Divisions and 23 Programme areas • Strong project focus over many years • Programme management journey commenced in 2012
  5. 5. Five high hazard programmes represent 90% of the nuclear hazard potential on the site Pile Fuel Storage Pond Pile Fuel Cladding Silo First Generation Magnox Fuel Pond Magnox Swarf Storage Silos HAL (Highly-Active Liquor) Workstream Legacy Ponds and Silos
  6. 6. Mandate (2012) • Case for Change – There is a strong desire to continue to improve programme management capability so as to provide more effective programme execution – Sellafield Strategic Objective 6: To deliver our major projects through programme and project excellence • Delivering Benefits – Assurance of the consistency & coherence between programmes in delivering strategic objectives – Increased predictability in performance to help improve stakeholder confidence – Enhanced programmatic thinking allows programme teams to evaluate and recommend responses to emerging issues & opportunities – Supports effective decision making on the allocation of scarce resources to maximise site performance
  7. 7. Capability Vision & Mission Vision Excellence in programme and portfolio management Mission Sellafield will be trusted to deliver more efficient and effective portfolio and programme management Portfolio & Programme Excellence
  8. 8. Blueprint / Benefits Map Coaching & learning environment PPM Academy Competency framework One-stop shop info portal Framework for Pg/Pf management Governance & Assurance framework Tools & systems for baseline mgt CoE support for Pg/Pf management Nominated people in position Programmatic Thinking Managed supply of new entrants More mature organisation Respected as best-in- class More stable environment & processes SO3 – what we do and how we do it SO6 – programme excellence SO7 – open and transparent S04 – Accelerate risk and hazard reduction SO10 – value for money More efficient Trusted to deliver More effective Price of non- conformance Reputation Value saved on scope Predictable realization of benefit “SPI” S09 - return on investment
  9. 9. Benefits Management Framework • Framework Elements – Leadership – Governance & Assurance – Key Processes – Roles and responsibilities – Performance Management – Benefits dictionary / categories – Tools support – Techniques • Benefits are realised post project • Responsibility for the realisa on of benefits lies with the sponsor (or the Business Change Manager if it is part of a programme) • Understand the rela onship of scope to benefit Projects • Benefits are defined • Benefits are realised during the programme life me • Responsibility for benefit realisa on lies with the Business Change Manager Programmes • Benefits are clearly iden fied and managed • Por olios make best use of available resources to maximise the contribu on to opera onal performance and strategic objec ves Por olios
  10. 10. Benefits Management Framework • Example benefit categories – Legislative compliance – Hazard reduction – Efficiency - increase throughput – Efficiency - cost reduction – Risk reduction – Revenue generating: direct or fee earning – Site restoration – Economic and social improvement – Reputation Draft Note the similarity to risk categories – why is this?
  11. 11. Engagement Journey P2M in a day Peer Assist (PA) structure is – WK1: 1 day theory based + examples; 1 day practical with coaching – WK2: 1 day practical with coaching – Regular forums for sharing PA1 PA2 PA3 PA4 Coaching (tasks based on need) Month1 Month2 Scope 5 days 1 day Month3 Month4 Team meeting (selling the message) Programme themes Portfolio themes PA1 = Programme Scope, Objectives & Benefits PA1 = Governance structure and controls PA2 = Governance, Assurance & Risk PA2 = Portfolio strategic alignment PA3 = Controls: Resourcing, Planning, Info Management PA3 = Stakeholder engagement and communications PA4 = Stakeholder Management, Reporting PA4 = Portfolio delivery BCM Master Class MSP Accredited Training
  12. 12. The Big Challenge • What to measure – Improved operational parameters, e.g. volumes of waste retrieved and made safe – Actual benefits, e.g. hazard reduction – Your contribution to strategic objectives • What controls you need to put in place – Define when new capability comes on stream – Understand the risks if things don’t go to plan – Integrate the project and programme plans!
  13. 13. Tools & Techniques 1 D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F 2014 2015 2016 2017 Retrievals - WP25 Skip Wash Box Installation & Including High Pressure Filter Basket Wash System 28-Aug-15 23-Feb-16 Desludging Capability Sludge Line Installed Export - Manufacture/ Installation (SingleCell) ê ê ê ê Sort & Seg Phase 1a Inpond Manipulator Platform - Construction Sort & Seg Phase 1a Inpond Manipulator Platform -Detail Design Stage Sort & Seg Phase 1a Inpond Manipulator Platform -Preliminary Design Stage ê ê ê 15-Jul-15 ê ê CURRENT FORECAST (PM JUDGEMENT) PP14 BASELINE (P50) JAN 2016 MAR 2016 ê 30-Sep-2014 A 28-Aug-15 27-Nov-15 ê -20 -20 47 31 ê ê 31 PERIOD 8 0 Sort & Seg Phase 1a Inpond Manipulator Platform - Commissioning -20 28-Apr-2016* ê ê ê ê P04A0180 P04A5490 P04A13200 P04A13210 P04A9690 P04A13190 P04A13180 ê ê First Skips to FHP via Export (Cardinal) P04A0370 -216 13-Feb-2017* FHP Commence Active Commissioning (Required for Start of Fuel Skip Export) P04A14680 People Procedures Training Skip Wash Capability Available P04A0178 31 28-Aug-15 -216 0 0 47 0 0 61 61 61 ê ê ê NO ACTION ACTION REQUIRED Day Milestone - Remaining Total Float to start of Fuel Retrievals Awaiting Schedules MILESTONE COMPLETE KEY Day Milestone - Previous Period Remaining Total Float to start of Fuel Retrievals 21-Dec-15 Installation of In-Pond Platforms 2 & 3, Umbilical & Header Lines P04A12240 22-Jan-16 61 47 47 31 07-May-15 Complete Capsule Work/ Familarisation training P04A1004110 31 76 16-Mar-15 Desludge SWB Floor Area with ROV P04A0534 31 02-Mar-15 In Pond Installation (Platform 2 only) P04A1003270 189 31 17-Dec-14 Initial Skip Movements (Pond 3/3x, BRST/CRST, DSWB) P04A12410 61 75 Skip Size Reduction Preliminary Design P04A1000160 19-Jun-15 -216 -216 Skip Size Reduction Construction & Inactive Commission 17-Mar-16 -216 0 P04A13780
  14. 14. Tools & Techniques 2
  15. 15. Tools & Techniques 3
  16. 16. Maturity Journey • Using AXELOS’ Portfolio, Programme, and Project Management Maturity Model (P3M3®) 1 • 3 models • 7 perspectives • 5 levels of maturity 1 P3M3® is a Registered Trade Mark of AXELOS limited Level 1 – Aware Level 2 – Repeatable Level 3 – Defined Level 4 – Managed Level 5 – Optimised
  17. 17. How are we doing? • More Efficient – We use a consistent language – There is a collective understanding of programme challenges and areas for improvement, e.g. reporting and resource management • Trusted to Deliver • Programmes have a sense of realism about what needs to be done and are able to take on the communication challenges they face – The focus on Benefits Management is impressive – There is a sense of ownership and pride from many of those interviewed • More Effective – Programmes are now pro-actively sharing best practice amongst themselves [level 4 characteristic] – Advocates for programme management now exist from within operational areas – Enhanced programmatic thinking allows the programme teams to be ahead of the game – Top management commitment is being seen and recognised
  18. 18. Prove it! • Recognised contribution from just one programme (example) – £50m scope “retired” – £40m scope identified as “missing” early in the process 1 P3M3® is a Registered Trade Mark of AXELOS limited 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Sellafield 2012 4 programmes (2013) 5 programmes (2014) 6 programmes (2015) Best in Class Annual independent P3M31 assessments
  19. 19. Top Tips Maintain ‘line of sight’ from programmes to strategic objectives & understand the contribution of eachDo to yourself what you are asking others to do Allow best practice to emerge and then adopt it Allow time to put in place measurement & control systems Talk to other organisations Use surrogate measures where you need to
  20. 20. Contacts • Outperform – Richard Peel • Sellafield – Mike Ward +44 203 432 6330 +44 19467 28333