1. Building better futures
Leveraging action learning at Kentz Engineers &
Constructors
Presented by:
Takis Karallis: Group HR Director, Kentz Group
Eric Sandelands: Director, Corporate Learning
Consultants Ltd.
Action learning: Assessing the value
Henley, March 2010
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2. Overview
• Who are Kentz and what do we do?
• A strategic view of learning and development in Kentz.
• How action learning helps us develop our people – at all levels and
around the world.
• What action learning means in practice in Kentz.
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3. About Kentz Group
Our Vision
We are continuously striving to meet
our vision and are dedicated to
innovation and excellence in the
provision of engineering and
construction services.
'To be recognised globally as the
specialist service provider of
choice'
Our Purpose - 'Building better
futures‘
What does this mean?
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4. Kentz Vision, Values & Purpose
Vision Purpose
“Building Better Futures”
“To be recognised globally as the specialist
services provider of choice”
• For our Staff by ensuring
– Home Safe
Values – Challenging Projects
The safety and health of all our employees is the most
– Life Career
Safety
important value held by our company No one gets hurt – A sense of belonging
and everyone goes home safe and well.
– A sense of adventure
Reputation Our current and future success stands on our reputation
• For our Customers by focusing on
– Building a safer workplace
Tenacity We are committed to our clients to delivering whatever it together
takes without compromising our values
– Enhancing their reputation
Pride We take pride in everything we do
– Adding to their competitiveness
Loyalty Our peoples loyalty to our business, our clients, our • For the Communities we serve
partners is unquestionable through
– Home Safe
Respect We respect all individuals, cultures and the environment
within and connected to our business – Employability and Sustainability
Teamwork Working together to achieve organisational goals – Care for the environment
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5. Key locations and selected key projects
Europe
North America Arctic Region
• Aviva Stadium
• Suncor Vogageur • SAK 1 Chayvo
Redevelopment,
Upgrader
Ireland • De Kastri Oil
Terminal
• Kearl Oil Sands, • SAK 1 & II O&M
• Marathon
Canada Alvheim FPSO, • SAK II –
Norway Caspian Lu
nskoye OPF
•TCO SGI/SGP • EPC 4 –
Kazakhstan ExxonMobil
C
•BP Shangashal ommunity Centre
Azerbaijan •
S
AK 1, EPC 1 -
O
dputu Civils
• LUN-A Asia
• CSPC Nanhai Of
fshore Platform
Petrochemical
Complex,
China
The Americas
• Murphy Oil
• Atlantic LNG Middle East • Janamanjung
Trains 1, 2, 3 and 4, Power Station,
• Jubail Acetyels Complex
and Reliability Malaysia
Saudi Arabia
projects,
Trinidad African Region • Banyu Urip
• Berth 6
Indonesia
• Medupi Power Station • Pearl GTL
• SBM Petrobras
• Sidra Medical and
• RioPolimeros South Africa
Research Centre
Petrochem.
• Rio Tinto Ilmenite Mine Qatar
Complex
Brazil Madagascar Australia
• KOC PMC
• Refinery & Coal to Kuwait
• Gorgon Construction
Liquids Shutdowns
• ADGAS Village
South Africa
• OGD III • Gorgon Telecoms
Abu Dhabi • Dawson Coal
• Kuito 2A FPSO,
Regional Operations • Project Magnet
Angola
• Projects completed in 61 countries • OMV CPF • Woodside Energy LNG
Yemen
COLD HOT
o o
Below freezing winters in Russia
Sustaining our Turnover in excess of US $ 600M -50 C
o
to 50 C
o
Hot arid deserts of Arabia 5
-58 F 122 F
6. Revenue by Business Unit
Specialist EPC* Construction Technical Support
Services
Onshore Modular Production Facilities
Turnkey Temporary Facilities
Turnkey Utilities and Offsite Facilities Site wide Construction Solutions Pre-EPC award (FEED***)
Turnkey Port Facilities Structural, Mechanical & Piping Integrated Project Management
Small Capital Project Solutions Electrical & Instrumentation Commissioning
Controls & Automation (TSI**) Maintenance & Turnaround
Telecommunications Systems Offshore Services
Power Projects & Services
Revenue by Business Unit Revenue by Business Unit based
based on FY 2008 US$643.4m on FY 2009 US$704.7m*
* Analyst Expectations for Revenue for 2009 6
7. The Market Place for Kentz
Offshore
Onshore Processing
Marathon FPSO, Norway ExxonMobil NefteGas OPF, Sakhalin
Island, Russia
LNG
Petrochemicals LNG
SABIC, Sharq Ethylene, Polyethylene, Atlantic LNG (BP/Repsol/BG),
Ethylene Glycol, Saudi Arabia Trinidad
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9. Key Clients
International Oil & National Oil & Petrochemical EPC/PMC’s
Petrochemical Companies Companies
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10. Case Study, Australia
• Gorgon LNG Construction Village
Location: Barrow Island, North-West Australia
Owner: Chevron, Exxon Mobil, Shell JV
Primary Contractor: Kentz, Thiess Pty Ltd, Decmil Pty Ltd (TDKJV)
Estimated value to Kentz: US $400 million (Kentz 1/3 share)
Peak Manpower: 600
Anticipated Duration/Finish: 31 months/Dec 2011
Description: Design and construct contract for a state-of-art 3,300 person construction village.
Scope of work: The TDKJV will provide engineering, design, procurement, project management and multi-discipline
construction services for the 3,300 person construction village to support the Gorgon Gas Field development.
The schedule-driven project comprises ten building clusters and each cluster will accommodate 348 people/c
to house 3300 people which will be completed over 11 stages of delivery.
Separate potable water and fire systems will also be provided by the TKJV.
A key design feature embraces the concept of being an „industry lifestyle differentiator.‟
All accommodation modules are fully transportable.
The development of the Greater Gorgon gas fields involves subsea pipelines to Barrow Island for an onshore
gas processing facility comprising three, 5 million t/pa LNG trains and a domestic gas plant.
Barrow Island is a Class A Nature Reserve and the TDKJV is committed to minimising all impact to the
environment during project execution.
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11. Evolution of Organisation Structure
Up to 2006 2007 -2008 2008/9 ……… ……..Future
Regions with Regions &
Subsidiaries Regional Business Global Business Global Business
Units Units Units
Average size of
Revenues up to
Annual Revenue Commencement
Circa US$500m
circa US$180m of Global Global Business
and Business
Company Business Units Units
Units Take shape
Operated as With Regions
Within Regions
Individual islands
Organisational Efficiency through Focus Significantly
more
Efficient
Poor
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12. Aligning learning and strategy
• Kentz needs to develop
leaders at all levels
capable of achieving the
strategic vision.
• Alignment with strategy is
crucial, including
addressing balanced
scorecard areas.
• Action learning connects
learning with strategy and
action.
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13. Learning and Development
‘Our people are our greatest asset’
17 years
• Supervisory Management Development the average length of service for
SMDP
Programme which allows graduates and trades the
people to develop into junior supervisory positions. top 100
• The four elements are REEP, QEEP, BEEP, EMSP. core management
34%
of top core management have
• Skills Enhancement Courses are a series of
SEC
20 years or more
internal and external Skill Enhancement courses service with the group
for the whole Group to develop their current skills.
over 35
EdipLM
• Executive Diploma in Leadership Management different nationalities
supports employees with degrees to move into within our 10,834*
junior management level positions. employees working in 26
different countries
MBA
• MBA has been established to support and develop 40 employees
mid-level managerial talent. have completed our new EPC
management
programme
‘Building Better Futures’
* Average number of employees for first 6 months of 2009.
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14. Joining the dots.....
Includes:
CEO and senior management inputs/
presentations/ mentoring/ corporate
sponsors.
Access to strategy sessions/ client
meetings/ documents, reports and data.
Use of balanced scorecard as a learning
tool, but also as a source of data.
Strategic HRM focusing on succession and
a talent pool for growth.
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15. Balanced Scorecard – Financial & Customer
Dimension Objectives Measures
Dimension Objectives Measures
Safety Reputation Lost Time Incident
Reduction in Real Overhead
Reduce Overhead Costs
Cost
Q: Do you think Kentz provides
Value for Money
Average gross margin by Value for Money?
business unit;
- EPC
Increase margins - Construction
- Support Services
PBT & PAT in absolute and
percentage terms Increased involvement in FEED
(front end engineering design),
Enhance Customer
feasibility and or PMC (project
Credibility
management Contractor) phases
Maintain Debt/ equity ratio Borrowings: Shareholder funds of projects
Financial Customer
Monitor the credit worthiness of
Minimise bad debts our clients – particularly new Q: Do you think Kentz provides
clients Certainty of Delivery
value in certainty of delivery?
Interest Income Q: Did you find the full range of
Monitor Treasury services provided by Kentz gave
Management you a one-stop-shop approach?
Exchange Gain/Loss
One Stop Shop
Cash flow in projects being Q: Was this of benefit to your
tendered project?
Increase cash flow
Cash flow in projects being
executed
Increased participation in
Partnership
customers tendering model
Backlog V corresponding prior
periods
Increase growth
Turnover V corresponding prior
periods
Q: Is it important for you, when
Global Brand selecting Kentz, to know we have
a global presence/reputation?
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16. Balanced Scorecard – Internal Systems & P&C
Dimension
Revised Breakout
Measures
Revised Breakout
Group Dimension Measures
Group
1. Compliance of Safety
Leadership Audits Step 1 – quantify how many PM‟s we have
2. HSE Leading / Lagging now in the categories of
Indicators per Project Manager, Snr. Project Manager &
Safer Workplaces Build project
HSEBSC Project Directors.
3. Compliance with B2B training management capability
Step 2 - 2009 is to target 10% growth in
program Project managers on average across the
three areas
Reduce the proportion of level 4
Risk projects – No. of projects
Reduce Risk Downgraded from level 4 risk
after
Engaged & Aligned
award of new project. Completion of Personal Scorecards
organisation
1. Utilisation of our Business
Operational Systems (KPS) on new projects
Excellence 2. Completion of training
programme
Global Culture Implementation of Global Business Groups
Internal Aligned Business 1. IMS Compliance People &
Systems 2. Monthly Reporting Compliance
Systems Culture
1.) % of new leaders promoted within
1. Number of Tenders won by 12mths of completing the EdipLM or MBA
Value programs
2. Number of tenders awarded
equal to or above margin 2.) No. Promotional Events /No. Training
Improve Sales
benchmark Leadership Interventions %
Performance
3. Market Intelligence – No. of
latent intelligence gaps that
appear
3.) Succession Planning
Relationship % completion of customer survey
Management at end of projects
Leverage EPC Build EPC Capability Total EPC project revenues year on year
Increase of EPC Business –
Capability
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17. Our Purpose : BUILDING BETTER FUTURES
Our Vision:
To be recognised globally as the
specialist services provider of choice
Tenacity Sustainable Shareholder Value Pride
Reduce Maintain Minimise Treasury Increase Increase Increase
Overhead Bad Cash Margin &
Costs DE Ratio Debts Mgt. Flow Profit Growth
Cost Management Strategy Profit Management Strategy
Loyalty
Safety Value for Enhance Certainty One stop Global
Reputation Reputation Money Customer of shop Partnership Brand
Credibility Delivery
Product / Service Attributes Relationship Image Respect
Customer Value Proposition
Align Improve
Safer Operational Bus. Reduce Sales Relationship Leverage
Workplaces Excellence Systems Risks Performance Management EPC
Safety Innovation Team
Build Project Engaged Build Build
Mgt and Global Leadership EPC
Capability Aligned Org Culture Capability
Innovation
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19. For us, action learning is... (Marquardt)
Involves Working on Taking action
• Small groups • Real • Learning
problems (individually,
group)
20. Engaging early career talent
Supervisory Management
Development Programme
New graduates, qualified trades
people, other high potential
people.
Different rotations, exposures to
issues, experiences.
Problem-solving workshops.
Mentors
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21. Some SMDP workshops
Supervisory Management
Development Programme
Skills Enhancement Courses
Group Human Resources Strategic Advancements
22. REEP
ROTATION EXPOSURE EXPERIENCE PROGRAMME
Engineering REEP
Entry point
Graduates Booklet
Join relevant
Rotation in :
Professional ENGINEERING
Membership
6 Mths
Mentor/Mentee
Group meeting
Mentoring Finance ,Marketing /
Business Development
e.g IEI GRADUATES
Booklet
Rotation
, Procurement
Planning , Proposals ,
Mechanical , Electrical ,
Design / Design , HR ,
QA/QC , HSE and
Instrumentation and Civil
Frontline coupled with exposure
Management W/S on site
6 Mths
Rotation
S.E.C‟s
18 Mths
Rotation
Frontline
Leadership W/S
6 Mths
Rotation
S.E.C‟s
Completion
Continuous
Professional
Development and
evidence
workbook
Career Planning 22
next step
23. Skills enhancement courses – all levels
A range of skills enhancement courses
are provided for people at all
levels, worldwide
Examples include:
• Dealing with difficult people
• Influence & assertiveness
• Communication skills
Participants bring their live problems,
solve them in small groups,
generate solutions to try back at
work.
Delivered recently in Ireland, Middle
East, Russia, South Africa
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24. Executive Diploma in Leadership & Management
Candidates drawn from the global
business.
Around 2/3 promoted into more
senior roles within 12 months of
completion.
Work in global teams on live
company issues/ problems.
Fully supported by senior
executives including CEO.
Issues identified included:
•Interaction and communication
barriers between business units.
•How do you lead others
successfully in time of transition?
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25. International action learning MBA
3 action learning projects (ALPs) Examples of projects:
One major strategic project •Measuring organizational performance
Evaluative assessment of •Developing group branding strategy
managerial learning •Black economic empowerment in RSA
•Post-acquisition integration strategy
In association with Business •Effectiveness of Kentz business
School Netherlands development systems
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27. Nottingham Trent University
Attributes Desired outcomes
A business-responsive Corporate relationship
university
Nottingham Business School Exposure to global issues
clients include the BBC
School of Architecture, Design & Reputation
Built Environment
Action learning methodology Learning from practice
28. Kentz Group
Attributes Desired outcome
10,000 plus employees Develop leaders
Operational in 26 countries Engender knowledge of company, industry,
theory, practice
Rapid growth Sustain growth
Global opportunities Succession
29. Action learning - Curriculum design
Commercial
Strategy Team
Teams
College
Management
Rethinking Team
design
Academic &
Standards Quality
Committee
Quality
objectives Validation
(including input
from externals)
30. Action learning pathways
Diploma in
Management &
• Induction Leadership • Research Methods
• Fundamentals of • International
Business • Strategy & Consulting Project
Leadership
• Project Leadership • Management
• Strategy in Action Research Report
• Team Consulting
Project
Certificate in MSc (Management
Management & Leadership)
31. Action learning – University-wide collaboration
• Collaboration around
resolving issues
• Supportive cross- Business
School
functional and cross-
organizational School
of Built
environment Env.
• Focus on achieving Kentz
goals
• Focus on learning
32. Action learning – Androgogy
• Democratises the learning
process
Set Adviser
• Solves complex problems and
challenges Learning
Tutors
“Buddy”
• Builds powerful teams
• Enhances corporate culture
• Develops leadership Learner
competencies Colleagues Team
at Work (Sub-set)
• Promotes systems thinking and
creativity
Action
Corporate
Learning
(Adapted from Marquardt) Sponsor Set
33. Action learning – Motivating students
• Individual interest and
desires
• Motivation within the
team
• Impact of the
corporate client
• Impact of the learning
coach
• Impact of other peers
and colleagues
35. Applying to corporate learners
• Engagement with live
issues
• No “right” answer Action Reflection
• “Messy learning
• Courage
• Broader engagement Live
issue
• Problem-solvers
• Building networks
• Action-takers Practice Theory
36. In conclusion
Kentz growth and international
reputation requires talent, and in
particular leaders, to be developed
at all levels in the company.
Action learning (supported by other
adult learning approaches)
provides the best method of
developing talent in Kentz.
Benefits have included the creation of
a talent pipeline to support
succession and deliver growth.
Key strategic and operational projects
have been important in the
organizational development of
Kentz.
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