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Going from Good to Great
in the Project World

PMI HOUSTON
June 18, 2009


Dave Guerra




                     Copyright ...
First some background . . .




                        Copyright © 2009 Corpus Optima. All rights reserved.




         ...
What is the current environment?




                           Copyright © 2009 Corpus Optima. All rights reserved.




 ...
The Perfect Storm




                            Copyright © 2009 Corpus Optima. All rights reserved.




               ...
The Perfect Storm

  Uncertainty                     Urgent Pressures

                Global Meltdown




               ...
Complex Issues

   A Brutal Economy

   Increasing Regulation

   More Demanding Customers

   Critical Talent Supplie...
There’s a Problem

 More than 70% of
 change initiatives
 FAIL to achieve
 desired results in
 time to make a
 difference....
How Can That Be?

 Six Sigma
 TQM
 PMBOK®
 Baldridge
 Lean
 Etc.




                           Copyright © 2009 Corpus Op...
The Intangibles


   Not everything that counts can be counted,
   and not everything that can be counted,
   counts.
    ...
Invisible Factors


                    Gallup continues
                    to report that 70%
                    of U.S...
Call for Transformation
   All of today’s organizations face a new reality.

   They must somehow accelerate improvement...
Andrea Gail Post-Mortem
                 Process Problems: “Broken
                  Down Ice Machine”

                ...
Best efforts and exhortations will
                   not do it!
                          W. Edwards Deming




         ...
Miracle Needed

                    How to
          dramatically alter today’s
                   performance
           ...
Who is Corpus Optima?
  Performance Revolutionaries

  Specializing in One Category: Superperformance

  Science-and-Ev...
What is Superperformance?


    A new management science.

    A set of principles and methods for transforming
     org...
New and Simple



                  Superperformance
                  is an optimization
                        theory.
...
Bizarro Superman World

                      Short-Term Thinking
                      Fear
                      Win-Los...
Deming Profound Knowledge

    Systems               Knowledge


    Variation             Psychology




                ...
Deming Profound Knowledge

   Systems   Knowledge      Variation


             Psychology




                           ...
Studies of Peak Performers



                  Don’t pick the stock - pick the
                  company.




           ...
Long Term ROI Best Practices

Search of Excellence   Built to Last     Good to Great        Warren Buffett             For...
Long Term ROI Best Practices
 Can’t get the
 best
 performance
 without a
 culture that
 can only be
 described as
 “inspi...
Profound Knowledge Today


 Process (Applied Methodology)


 Culture (Inspiration and Involvement of People)




         ...
The Superperformance Formula
Cracking the Code



  Process x Culture = Superperformance




                             ...
The Superperformance Formula


Process        x   Culture           = Superperformance
 • Strategy        • Passion       ...
Superperformance Definition



    Industry-Outperforming Return on
    Investment (ROI) sustained over
    time (at least...
Sustainability


 “You know Wall Street,” Warren tried to
 reassure me, “People don’t think in a long
 term way there.”
  ...
Peak Performance

                             Zone of
                             Superperformance




                 ...
What is the impact of Superperformance?




                             Copyright © 2009 Corpus Optima. All rights reserv...
10 Superperformers




                           Copyright © 2009 Corpus Optima. All rights reserved.




               ...
The Superperformance Fund

 $2,000,000
 $1,800,000                                                  20 Year Performance
 $...
8 Simple Rules

Rule 1: The Superperformance Formula is PxC=SP.
Rule 2: Superperformers superperform over time.
Rule 3: Th...
Characteristics of Superperformers

              • Best in the World
              • Long-Term View
              • Stick...
Three Super Projects from O&G Industry
   Todco Drilling
   Shell Mars Recovery Project (Post-Katrina)
   Statoil Hydro...
TODCO DRILLING

 Spun out of Transocean
 Non-Core Assets
 Amalgamation of Drilling Companies
 Dregs of the Industry
 ...
Outcomes
Received the 2005 MMS Safety Award for Excellence. It
was the first time the award had ever been given to a
compa...
Mike Kelley, VP Operations

                       “We went from a sow’s
                       ear to a silk purse. We
  ...
Shell Mars Post-Katrina Recovery Project

Hurricane of 2005 had blown through Gulf of
Mexico
Topside Damage, Rig had Toppl...
Shell Mars Post-Katrina Recovery Project




                                 Copyright © 2009 Corpus Optima. All rights r...
Outcomes

• Completed Ahead of Schedule
• Completed Significantly Below Budget
• 1,000,000 Hours Worked
• No Recordable In...
Charlie Williams, Senior Scientist

            “We ran a “trust the people” not
            the process type of project. ...
Kristin Production Platform
Dangerous Norwegian Shelf
Highest Pressure and Temperatures in the
World
Co-Located Production...
Outcomes

  • Operational Excellence with Dramatically
   Reduced Staffing
  • Far Outperformed Statoil Hydro
  Performanc...
Vidar Hepso, Social Anthropologist


                       “Superperformance is
                       not possible unles...
What is Common to Them All?
1. Demonstrated amplified results associated with
employee engagement
2. Represented new ways ...
What Does This Mean?

To go from Good to Great is to go from
Project Management to Project
Optimization.




             ...
Good to Great in the Project World


                                Project Optimization
                                ...
Superperformance Points to Something New




                                Copyright © 2009 Corpus Optima. All rights re...
Two Sciences Required for Optimization




                                 There are opposite
                           ...
Deming Pointed To It


  “It will not suffice to learn all about the
  present style of management. One could
  learn all ...
How do you get Super?




                    Copyright © 2009 Corpus Optima. All rights reserved.




         52   52
Habits


 “A habit is more powerful than 10 natures.”
                     William James




                             ...
The Infinitely Scalable Habits of Superperformers




                                    Copyright © 2009 Corpus Optima. ...
Exercise

Measure your own Habits

• Personal Strengths
• Team Strengths
• Discuss Implications for Optimization




     ...
Thank You!

                  Dave Guerra, Corpus Optima
                  Get the Super Projects White
                  ...
Get Superperformance for 1 Week

                     Look for Email with the Link


                     OR


           ...
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Super Projects: From Management to Optimization

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Capital Projects can be transformed into Superprojects through a more agile and dynamic paradigm which considers leadership and personal relationships as important as schedules, milestones, and budgets. Superprojects are defined by their outcomes - and their cultures.

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Super Projects: From Management to Optimization

  1. 1. Going from Good to Great in the Project World PMI HOUSTON June 18, 2009 Dave Guerra Copyright © 2009 Corpus Optima. All rights reserved. 1
  2. 2. First some background . . . Copyright © 2009 Corpus Optima. All rights reserved. 2 2
  3. 3. What is the current environment? Copyright © 2009 Corpus Optima. All rights reserved. 3 3
  4. 4. The Perfect Storm Copyright © 2009 Corpus Optima. All rights reserved. 4 4
  5. 5. The Perfect Storm Uncertainty Urgent Pressures Global Meltdown Copyright © 2009 Corpus Optima. All rights reserved. 5 5
  6. 6. Complex Issues  A Brutal Economy  Increasing Regulation  More Demanding Customers  Critical Talent Supplies  Fluctuating Capital Markets  Shifting Operational Pressures Copyright © 2009 Corpus Optima. All rights reserved. 6 6
  7. 7. There’s a Problem More than 70% of change initiatives FAIL to achieve desired results in time to make a difference. Copyright © 2009 Corpus Optima. All rights reserved. 7 7
  8. 8. How Can That Be? Six Sigma TQM PMBOK® Baldridge Lean Etc. Copyright © 2009 Corpus Optima. All rights reserved. 8 8
  9. 9. The Intangibles Not everything that counts can be counted, and not everything that can be counted, counts. Albert Einstein Copyright © 2009 Corpus Optima. All rights reserved. 9 9
  10. 10. Invisible Factors Gallup continues to report that 70% of U.S. workers are not engaged. Source: Gallup Q-12 Work Engagement Survey June 2007 Copyright © 2009 Corpus Optima. All rights reserved. 10 10
  11. 11. Call for Transformation  All of today’s organizations face a new reality.  They must somehow accelerate improvement in targeted areas while continuing to grow long term systemic value.  Current environments are uncertain, demand agility and transformation -- simultaneous improvement across multiple dimensions.  Past management approaches are no longer effective in this current environment. Copyright © 2009 Corpus Optima. All rights reserved. 11 11
  12. 12. Andrea Gail Post-Mortem  Process Problems: “Broken Down Ice Machine”  Past Experience: “We’ll get through this because we’re great sailors”  Paradigm Paralysis: Refusal to consider alternatives because of pressure to perform Copyright © 2009 Corpus Optima. All rights reserved. 12 12
  13. 13. Best efforts and exhortations will not do it! W. Edwards Deming Copyright © 2009 Corpus Optima. All rights reserved. 13 13
  14. 14. Miracle Needed How to dramatically alter today’s performance and build future capability . . . simultaneously? Copyright © 2009 Corpus Optima. All rights reserved. 14 14
  15. 15. Who is Corpus Optima?  Performance Revolutionaries  Specializing in One Category: Superperformance  Science-and-Evidence Driven  Thought Leadership in Performance Science  25 Years of Real World Successes Copyright © 2009 Corpus Optima. All rights reserved. 15 15
  16. 16. What is Superperformance?  A new management science.  A set of principles and methods for transforming organizational performance.  A simple way to take an organization to the next level. Copyright © 2009 Corpus Optima. All rights reserved. 16 16
  17. 17. New and Simple Superperformance is an optimization theory. Copyright © 2009 Corpus Optima. All rights reserved. 17 17
  18. 18. Bizarro Superman World Short-Term Thinking Fear Win-Lose Every Man for Himself Applauded Layoffs Toxic Employees Copyright © 2009 Corpus Optima. All rights reserved. 18 18
  19. 19. Deming Profound Knowledge Systems Knowledge Variation Psychology Copyright © 2009 Corpus Optima. All rights reserved. 19 19
  20. 20. Deming Profound Knowledge Systems Knowledge Variation Psychology Copyright © 2009 Corpus Optima. All rights reserved. 20 20
  21. 21. Studies of Peak Performers Don’t pick the stock - pick the company. Copyright © 2009 Corpus Optima. All rights reserved. 21 21
  22. 22. Long Term ROI Best Practices Search of Excellence Built to Last Good to Great Warren Buffett Fortune 500 CEOs People Stretch Goals Hedgehog Concept Broad Appeal Management Team Management Team People Passion of People People Practices People Purpose Management Team Level 5 Leadership Large Cap Action Oriented Action Oriented Action Oriented Discipline Management Highly Regarded Innovation Innovation Technology Innovation-Minded Innovation Company with a Past Company with Accelerators Super Form/Lean Close to Customer Close to Customer Past Insider Driven Great Business Financial Performer Financial Highly Regarded Change Performance Copyright © 2009 Corpus Optima. All rights reserved. 22 22
  23. 23. Long Term ROI Best Practices Can’t get the best performance without a culture that can only be described as “inspired.” Copyright © 2009 Corpus Optima. All rights reserved. 23 23
  24. 24. Profound Knowledge Today Process (Applied Methodology) Culture (Inspiration and Involvement of People) Copyright © 2009 Corpus Optima. All rights reserved. 24 24
  25. 25. The Superperformance Formula Cracking the Code Process x Culture = Superperformance Copyright © 2009 Corpus Optima. All rights reserved. 25 25
  26. 26. The Superperformance Formula Process x Culture = Superperformance • Strategy • Passion • Customer Delight • Method • Involvement • Quality Excellence • Execution • Commitment • Long Term Value • Collaboration • Outperforming ROI • Employee Joy in Work Copyright © 2009 Corpus Optima. All rights reserved. 26 26
  27. 27. Superperformance Definition Industry-Outperforming Return on Investment (ROI) sustained over time (at least 10 years) Copyright © 2009 Corpus Optima. All rights reserved. 27 27
  28. 28. Sustainability “You know Wall Street,” Warren tried to reassure me, “People don’t think in a long term way there.” Katherine Graham, Personal History Copyright © 2009 Corpus Optima. All rights reserved. 28 28
  29. 29. Peak Performance Zone of Superperformance All Others Copyright © 2009 Corpus Optima. All rights reserved. 29 29
  30. 30. What is the impact of Superperformance? Copyright © 2009 Corpus Optima. All rights reserved. 30 30
  31. 31. 10 Superperformers Copyright © 2009 Corpus Optima. All rights reserved. 31 31
  32. 32. The Superperformance Fund $2,000,000 $1,800,000 20 Year Performance $1,600,000 $1,400,000 SUPER Super vs S&P 500 $1,200,000 $1,000,000 $25,000 Initial $800,000 $600,000 Investment $400,000 $200,000 $288,000 $0 1985 1990 1995 2000 2005 vs 05 05 13 5 15 5 5 5 5 23 5 25 5 27 5 5 90 90 90 90 90 90 90 90 90 19 19 /1 /1 /1 /1 /1 /1 /1 /1 /1 7/ 9/ 11 17 19 21 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ 6/ S&P 500 SUPER $1,400,000 Courtesy Aim Investment and Morningstar.com Copyright © 2009 Corpus Optima. All rights reserved. 32 32
  33. 33. 8 Simple Rules Rule 1: The Superperformance Formula is PxC=SP. Rule 2: Superperformers superperform over time. Rule 3: The paradigm shift of Superperformance is from machine to organism. Rule 4: Superperformance is produced by super managers and super leaders. Rule 5: Superperformance is transformed flow. Rule 6: Superperformance is unleashed passion. Rule 7: Superperformance requires metamorphosis. Rule 8: Superperformers oscillate to continue superperforming. Copyright © 2009 Corpus Optima. All rights reserved. 33 33
  34. 34. Characteristics of Superperformers • Best in the World • Long-Term View • Stick to the Core • Ferocious about Quality • Excited & Engaged People • Optimistic about the Future • Evergreen Values & Ethics • Servant Leadership Copyright © 2009 Corpus Optima. All rights reserved. 34 34
  35. 35. Three Super Projects from O&G Industry  Todco Drilling  Shell Mars Recovery Project (Post-Katrina)  Statoil Hydro Kristin Production Platform Copyright © 2009 Corpus Optima. All rights reserved. 35 35
  36. 36. TODCO DRILLING  Spun out of Transocean  Non-Core Assets  Amalgamation of Drilling Companies  Dregs of the Industry  Poor Performance, Underleveraged Diversity  Autocratic, Top-Down Copyright © 2009 Corpus Optima. All rights reserved. 36 36
  37. 37. Outcomes Received the 2005 MMS Safety Award for Excellence. It was the first time the award had ever been given to a company in its first full year of operation. Reactivated 12 idle rigs Increased the size of the company from 1,700 to over 3,000 in 18 months Reduced downtime from 3.00% in 2004 to 1.07% in 2006 (the last full year of operation). Reduced TRIR from 2.3 to 1.27 Quadrupled operating revenues Copyright © 2009 Corpus Optima. All rights reserved. 37 37
  38. 38. Mike Kelley, VP Operations “We went from a sow’s ear to a silk purse. We learned that there is a Superperformer trapped inside of every project and every company and the job of leadership is to let him out.” Copyright © 2009 Corpus Optima. All rights reserved. 38 38
  39. 39. Shell Mars Post-Katrina Recovery Project Hurricane of 2005 had blown through Gulf of Mexico Topside Damage, Rig had Toppled Delicate, Expensive, Dangerous $60 Barrel Environment Copyright © 2009 Corpus Optima. All rights reserved. 39 39
  40. 40. Shell Mars Post-Katrina Recovery Project Copyright © 2009 Corpus Optima. All rights reserved. 40 40
  41. 41. Outcomes • Completed Ahead of Schedule • Completed Significantly Below Budget • 1,000,000 Hours Worked • No Recordable Injuries • Three Major Innovations Copyright © 2009 Corpus Optima. All rights reserved. 41 41
  42. 42. Charlie Williams, Senior Scientist “We ran a “trust the people” not the process type of project. And I believe the personal relationships of leaders and informal leaders were key to our success.” Copyright © 2009 Corpus Optima. All rights reserved. 42 42
  43. 43. Kristin Production Platform Dangerous Norwegian Shelf Highest Pressure and Temperatures in the World Co-Located Production Platform Management and Onshore Management Social Anthopologist design of Interactions Environment New Cultural Behaviors and Interactions, Increased Self-Organization and Self- Management Copyright © 2009 Corpus Optima. All rights reserved. 43 43
  44. 44. Outcomes • Operational Excellence with Dramatically Reduced Staffing • Far Outperformed Statoil Hydro Performance • Achieved Second Order HSE Performance Copyright © 2009 Corpus Optima. All rights reserved. 44 44
  45. 45. Vidar Hepso, Social Anthropologist “Superperformance is not possible unless an organization can leverage the social- technical aspects of a project together. “ Copyright © 2009 Corpus Optima. All rights reserved. 45 45
  46. 46. What is Common to Them All? 1. Demonstrated amplified results associated with employee engagement 2. Represented new ways of working and unconventional thinking 3. Were infused with servant leadership 4. Were permeated with a ‘trust the people’ attitude 5. Were undergirded with collaboration, teamwork, and passion Copyright © 2009 Corpus Optima. All rights reserved. 46 46
  47. 47. What Does This Mean? To go from Good to Great is to go from Project Management to Project Optimization. Copyright © 2009 Corpus Optima. All rights reserved. 47 47
  48. 48. Good to Great in the Project World Project Optimization is not possible Management Leadership without as much Project Leadership as Project Management. Copyright © 2009 Corpus Optima. All rights reserved. 48 48
  49. 49. Superperformance Points to Something New Copyright © 2009 Corpus Optima. All rights reserved. 49 49
  50. 50. Two Sciences Required for Optimization There are opposite forces at work. Controlling Liberating Copyright © 2009 Corpus Optima. All rights reserved. 50 50
  51. 51. Deming Pointed To It “It will not suffice to learn all about the present style of management. One could learn all there is to know about ice, but know nothing about water.” W. Edwards Deming Copyright © 2009 Corpus Optima. All rights reserved. 51 51
  52. 52. How do you get Super? Copyright © 2009 Corpus Optima. All rights reserved. 52 52
  53. 53. Habits “A habit is more powerful than 10 natures.” William James Copyright © 2009 Corpus Optima. All rights reserved. 53 53
  54. 54. The Infinitely Scalable Habits of Superperformers Copyright © 2009 Corpus Optima. All rights reserved. 54 54
  55. 55. Exercise Measure your own Habits • Personal Strengths • Team Strengths • Discuss Implications for Optimization Copyright © 2009 Corpus Optima. All rights reserved. 55 55
  56. 56. Thank You! Dave Guerra, Corpus Optima Get the Super Projects White Paper: http://corpusoptima.com/insights Copyright © 2009 Corpus Optima. All rights reserved. 56 56
  57. 57. Get Superperformance for 1 Week Look for Email with the Link OR Contact daveguerra@corpusoptima.com CELL: 281-673-8514 Copyright © 2009 Corpus Optima. All rights reserved. 57 57

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