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Murray Easton


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A complex leadership challenge: survival by engagement and empowerment. Presentation by Murray Easton, CBE at Bringing Projects to Life conference #eVa21

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Murray Easton

  1. 1. Nov08/MS292-08 A Complex Leadership Challenge Survival by engagement and empowerment Murray Easton
  2. 2. Nov08/MS292-08 • Murray Easton • Barrow shipyard and challenges: • The past • The challenges • The response • Waste identification & Removal: • Overheads • Labour • Material • Closing Observations • Questions Business Improvement and the Removal of Waste Safely Delivering Affordable Together Capability
  3. 3. Nov08/MS292-08 My background 3
  4. 4. Nov08/MS292-08 The Product 4
  5. 5. Submarine Solutions Business Units Barrow-in-Furness (4427) Farnborough (82) Weymouth (50) Filton (13) Ash Vale (38) Total Employees – c 4600 2009 (numbers excl of apprentices, graduates)
  6. 6. Nov08/MS292-0804/05-MS001-05 Barrow Shipyard
  7. 7. Nov08/MS292-08 7 Historical View – The Challenges Safely Delivering Affordable Together Capability • Cost plus contracts, behaviours and mentality, high quality/low productivity • Monopoly – Trident Then.... • Astute, a fixed price development ‘prime’ contract arrangement. • 2002 – 3.5yrs late, £760M loss. ‘monster of the deep wreaks havoc’
  8. 8. Nov08/MS292-08 7 Historical View Safely Delivering Affordable Together Capability • Difficult to compete when you haven’t been playing regularly! 10 year gap design 10 year gap like-for-like production skills Headcount 0 2000 4000 6000 8000 10000 12000 14000 Astute ClassVanguard Class Upholder 1988 1992 1996 2000 2004 2008 Trafalgar Successor Workforce engaged in Submarine building Other
  9. 9. Nov08/MS292-08 7 Historical Waste – If you could turn back time! Safely Delivering Affordable Together Capability Headcount 0 2000 4000 6000 8000 10000 12000 14000 Astute ClassVanguard Class Upholder 1988 1992 1996 2000 2004 2008 Trafalgar Successor Workforce engaged in Submarine building Other Could have managed the same with approx 7000 employees!
  10. 10. • Abolish the PCO • Flatter organisation structure • Re-baseline schedule • Change contract to target costs, incentive fee • Address behaviours and culture • Complete overhaul of communication processes. • Less hierarchical • Increased employee engagement and teamwork The Immediate Response Safely Delivering Affordable Together Capability
  11. 11. Nov08/MS292-08 8 • 5 years ago Boat 4 was becoming increasingly unaffordable - threat to seven boat programme. • Our team responded to the Affordability challenge through performance, innovation and determination • We did not have control of some external influences Response - Affordability 1 2 3 4 Boat Cost 30 % Overhead Reduced Cost Conscious Culture Supplier Performance Management 20 % Material Reduced 30 % Labour Reduced Productivity Safely Delivering Affordable Together Capability
  12. 12. Nov08/MS292-08 8 • Leadership drove a tenacious ZBB programme (Zero Based Budgeting) • Questioned affordability of all non-essential expenditure • War on waste. Overhead Costs Safely Delivering Affordable Together Capability
  13. 13. Nov08/MS292-08 8 • Change of build strategy. • EB/Vertical Outfit. • Modules ‘vs’ stick build • Productivity and Lean manufacturing. • Pipeshop; Victorian design • Pipeshop; based on Lean • Safety culture • Responsible behaviours (Organisation Development) • Sickness absence • Motivation • Reward and recognition (financial and non-financial) • Mature working arrangements (breaks, etc) • Etc Labour Costs & Innovation 8 SafelySafely Delivering Affordable Together Capability
  14. 14. Nov08/MS292-08 • Major work improvements • DDH – Service Towers • ‘plugged in’ tools, QC, Planning, Leadership, etc. • Kitting – 100% kitted; 2 weeks supply on one pallet • Value stream mapping • Recruitment, attitude focus • Coaching • Collective and individual responsibility – One Team • Peer group pressure • Challenge and be challenged – trust and respect agenda Response – Labour & Innovation
  15. 15. Nov08/MS292-08 23 Safely • We have challenged cost wherever and whenever appropriately • IT Systems - we opted out from our IT provider. • 40% improvement in customer satisfaction. Affordability - IT systems Delivering Affordable Together Capability Reduced by factor of 10! Downtime per user per month 3 2008 MinutesMinutes 2005 36
  17. 17. Nov08/MS292-08 • Embraced genuine 2 way communication philosophy. • End to end comms process redesign; consistent themes, language and media. • Regular face to face employee briefings by leadership. • Employee forums. • Team briefs. • Visual management (supported). • PRIDE – generating innovation and providing recognition. Internal Communication, Engagement and Motivation Nov08/MS292-08 88 SafelySafely Delivering Affordable Together Capability
  18. 18. Nov08/MS292-08 Culture and Behavioural Improvement The Change Wheel Performance Management Organisation Focus and Clarity Leadership Development Reward and Recognition Teamwork Communication & Involvement Behaviours to Succeed Safely Delivering Affordable Together Capability
  19. 19. Nov08/MS292-08 Leadership Development Reward and Recognition • Development centres • Coaching • Conferences (engagement) • Grading structure • All employee bonus (aligned to Exec bonus) • PRIDE (recognising innovation) Culture Change
  20. 20. Nov08/MS292-08 Performance Management Organisation Focus and Clarity • Build strategy • Logistics (kitting) & Supply Chain • Monthly performance and development reviews • Performance improvement plans (PIPs) • Visual Management (Lean) • Behavioural Performance Feedback (BPF) • Objective deployment • Common and Functional clarity • Fixed people manager objectives (safety, quality and performance management) Culture Change
  21. 21. Date/reference/classification
  22. 22. 04/05-MS001-05
  23. 23. 04/05-MS001-05 Vertical outfit of 5 pressure hull units has been achieved
  24. 24. 25Nov08/MS292-08 • What have we achieved? • Modules • Achieved on a design not intended for modules! Safely Delivery - the last 5 years Delivering Affordable Together Capability Modules SmallBig And Massive Shift! Increased to Boat 1 4 2003 650+ 2008 Boat 4
  25. 25. Nov08/MS292-08 Teamwork Communication & Involvement • Natural Work Teams (Psychologists) • Transactional Analysis (how we work together) • Employee opinion surveys (39% - to – 80%) • External comms • Internal comms • Trade Union partnership working • Community newsletter • Celebrating success • Work, Life, Barrow Culture Change
  26. 26. 27Nov08/MS292-08 Safely Together - employee survey • Employee survey 2008 - fantastic, well done Team! • We still have issues - well understood and we continue to improve our ability to perform… Delivering Affordable Together Capability Participation Double! Response 2004 39% 80% 2008 Response Trust RewardRespect Recognition
  27. 27. Nov08/MS292-08 Inclusive employee effort - Diversity - Graduates - Apprentices - Mature Apprentices
  28. 28. Nov08/MS292-08 10 • Absence waste = cost of those absent + cost of disruption in the business. Sickness Absence • Performance recognised via national HR awards. • If you need medical help - you got it. • We need you healthy – and we need you at work! Down over two thirds! Reduced to per annum 9%+ 2003 2008 per annum 2.5% Safely Delivering Affordable Together Capability
  29. 29. Safety First Think Safe, Act Safe, Be Safe. 10 RIDDORS 350 Accidents 42 Incidents 1566 Near Misses 118 RIDDORS 1323 Accidents 21 Incidents 9 Near Misses 2003 Jan-Dec 2008 Jan-Jul Safety First • The threat of a serious accident always remains. • Risks must be avoided, there is always more to be done. • Point of Work Risk Assessments • Ensure all assess own work area. • Look after workmates/ colleagues and those around you. •You have to ask, what are you going to do to ‘take care’?
  30. 30. Nov08/MS292-08 8 • Supply Chain • Key supplier forum • CAD accuracy + Optimised Manufacturing Processes = Material cost saving through reduced waste • E.g. Pipework store of 3500 ferrous and non-ferrous pipes Response – Material Safely Delivering Affordable Together Capability
  31. 31. Nov08/MS292-08 8 • Engineering, 15 design exercises. e.g. Gearbox and Chilled Water Plant; legacy designs and legacy equipment. • Design for operation Y • Design for maintenance N • Design for manufacture N • Redesign cost justification always an issue Could Have Been Better? Safely Delivering Affordable Together Capability
  32. 32. Nov08/MS292-08 8 • Fundamentally the leadership need to relentlessly motivate the entire workforce to reduce waste by creating a culture of encouragement and recognition. • Its an attitude of mind that has huge cost and performance benefits. Final Observations Safely Delivering Affordable Together Capability
  33. 33. Nov08/MS292-08 My Learning Observations of Leadership • Credibility • Capability • Courage • Commitment • Communication • Caring (and a large dose of emotional intelligence throughout management) • ....and FUN ! (aka COMEDY, for those of you that need CONFORMITY)!!!!!
  34. 34. Green Point Stadium (GPS), Cape Town
  35. 35. Andy Fanton, GPS Managing Director • “What a journey! • It’s true that each project is a step into the unknown. Of course, there are plans and models of the ultimate structure but the journey towards that end is filled with moments that are tense, as well as moments that are awe inspiring, challenging, human, and often funny. Oddly the funny bits are the moments you cherish. • Green Point Stadium is the last place I thought I would spend 32 months of my career. Having taken the step and completed the journey; I would not have missed it for anything! GPS is not just about the iconic jewel that was nurtured from nothing, it’s equally about the personalities I have had the pleasure of working with along the way. I can say with absolute honesty that Team Green Point is the best I have worked with in six countries over a period of 21 years.......
  36. 36. ......continued. • There are two things that ring clearly in my mind when I reflect on the project: • “Without Passion You have nothing…” • “Fear of Failure is a Fantastic Motivator…” • Chaps, we did it! Your unwavering commitment to the cause is something to be proud of, I know I am. • I will miss our exchanges, but will continue to recall them with fond memories as long as I live. • I think a poet once said that it was not the destination that mattered but the journey. He was right, although I believe that our destination will become a famous place where people will gather to celebrate the triumph of the human spirit”.
  37. 37. ...the customer’s message; • “To my friend Andrew and the team: • It is said that “cometh the hour, cometh the man”. In the case of GPS one should rather state that “cometh the hour cometh the team”! A building as iconic, challengingly complex, innovative and urgent as this could not have asked for, or received, the attentions of a more driven and competent group, indeed it deserved nothing less. Looking back, as we all will, the enduring memories will be of the people and not the difficulties encountered. So there we are, look back and know that it was a job well done, and, more importantly, one that could not have been better accomplished by any others! Know also that, as we move on to other challenges and other life paths that this is something to remember, as I certainly will, with pride, as none of us will ever walk this way again!” • Silas Darby
  38. 38. Nov08/MS292-08 9 QUESTIONS?