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Routines for Success. Organising for innovation and collaboration

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Simon Addyman at the Fusing the Project World conference at the ITER Project on 4 September 2015

Simon Addyman started his career in property refurbishment before moving overseas to work on a major school building programme for the World Bank in The Gambia, West Africa.

Simon then moved into humanitarian relief work with the engineering services division of United Nations Protection Force in the Former Yugoslavia. He then joined an international aid organisation as their construction programme manager, delivering a housing resettlement programme for refugees in Macedonia.

Before returning full time to the UK, Simon gained a distinction in his MSc in Construction Project Management from Heriot-Watt University. He joined London Underground in late 2000 and continues his professional development, becoming an APM Certificated Project Manager in 2008 and is currently undertaking a part-time PhD at University College London.

Simon has spent his career in London underground (LU), from assistant project manager to programme manager, working on station infrastructure projects. He is currently the project manager for the Bank Station Capacity Upgrade project. The project has successfully implemented LU’s novel Innovative Contractor Engagement procurement route for which Simon was awarded Project Professional of the Year at the APM Awards 2013.

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Routines for Success. Organising for innovation and collaboration

  1. 1. Safely Together Bank Station Capacity Upgrade ITER September 2015 Routines for success: organising for innovation and collaboration Bank Station Capacity Upgrade Project Innovative Contractor Engagement Simon Addyman Programme Manager
  2. 2. Safely Together Bank Station Capacity Upgrade What do I think about when I think about projects? As new temporary organisations, how do projects become capable organisations? How and why are organisational routines (re)created in temporary inter-organisational structures?
  3. 3. Safely Together Bank Station Capacity Upgrade 1.17 billion passengers a year London Underground Limited A rising proportion, currently 53% of journey time, is spent in stations rather than on trains
  4. 4. Safely Together Bank Station Capacity Upgrade Existing Bank Monument Complex Layout 6 lines interchanging
  5. 5. Safely Together Bank Station Capacity Upgrade PRIMARY REQUIREMENTS • Increased capacity, reduce Journey times • Step-free Access • Compliant fire and evacuation PRIMARY BENEFITS • Journey time benefits of £774m • Capacity of Fruin level C • Benefit:Cost Ratio is 2.4:1 Constrained Work Site Complex Construction Sub-optimal Over time Over budget Project Baseline Solution
  6. 6. Safely Together Bank Station Capacity Upgrade Innovative Contractor Engagement (ICE) Key Principles • A structured and protected dialogue phase. • LU disclose ALL project information and acknowledge the cost of dialogue. • LU share value of innovative ideas from unsuccessful bidders • Requirements statement and bid evaluated against business output. • Orthodox ITT/ Target cost Contract.
  7. 7. Safely Together Bank Station Capacity Upgrade ICE in Practice
  8. 8. Safely Together Bank Station Capacity Upgrade Project Solution - Stakeholders • 67 buildings in the zone of influence • 38 buildings with Heritage interest • 6 buildings Grade 1 Listed – notably St Mary Abchurch (Wren) and Mansion House • 14 Buildings are Grade II/II* • 80% buildings are in a conservation area
  9. 9. Safely Together Bank Station Capacity Upgrade Innovation in Project Management: A New ‘Front End’ Triangle
  10. 10. Safely Together Bank Station Capacity Upgrade Effectiveness ‘ v ’ Efficiency EFFECTIVE PRODUCT EFFICIENT METHOD
  11. 11. Safely Together Bank Station Capacity Upgrade Tender Evaluation On Value BASE 1 2 3 4 Product 625,000£ 625,000£ 625,000£ 625,000£ 625,000£ CR1: Capacity Enhancement 17.0% 8.50 10.00 8.50 12.00 10.00 CR2: Reduction of Journey Times 17.0% 8.50 8.50 8.50 12.00 8.50 RO3: Design & Construction 15.0% 7.50 8.50 7.50 7.50 7.50 CR4: Step Free Access 10.0% 5.00 5.00 10.00 5.00 7.00 CR5: Fire and Evacuation Plan 10.0% 5.00 5.00 5.00 5.00 5.00 Subtotal Product 69.0% 34.50 37.00 39.50 41.50 38.00 Method RO1: LUL Project Business Case 2.5% 1.25 1.25 1.25 1.25 1.25 RO2: Transport and Works Act Order 5.0% 2.50 2.50 2.50 2.50 2.50 CR 3 Disruption during construction 12.5% 6.25 6.25 6.25 8.00 6.25 CR 6 Time 2.5% 1.25 1.25 1.25 1.25 1.25 CR 7 Design to Cost 2.5% 1.25 1.25 1.25 1.25 1.25 RO4: Opportunities 6.0% 3.00 3.00 3.00 3.00 3.00 Subtotal Method 31.0% 15.50 15.50 15.50 17.25 15.50 Total 100% 50.00 52.50 55.00 58.75 53.50 Total Rank 5 4 2 1 3 Value Rating - £100m = 8.00 Quality pts if P = £625m) 8.00 8.40 8.80 9.40 8.56 VR rank 5 4 2 1 3 VFM 85.11% 89.36% 93.62% 100.00% 91.06% P equiv 531,915£ 558,511£ 585,106£ 625,000£ 569,149£ Lost Value 93,085£ 66,489£ 39,894£ -£ 55,851£ Value of a Quality point (rank 1 .v. rank 4) £k £10,638
  12. 12. Safely Together Bank Station Capacity Upgrade Successful result! • B:CR increase by 1.1 to 3.5:1 (45.1%) • Journey time benefits increased by £148m to £923m (19.2%) • EFC reduced by £61m to £563m (9.8%) • Induced Revenue increased by £31m to £229m (15.6%)
  13. 13. Safely Together Bank Station Capacity Upgrade Base Scheme: Central Line Link
  14. 14. Safely Together Bank Station Capacity Upgrade Dragados Scheme: Central Line Link
  15. 15. Safely Together Bank Station Capacity Upgrade One Project Organisation
  16. 16. Safely Together Bank Station Capacity Upgrade • Alliance Management Structure • Governance Board • Co-location • Supply Chain Incentivisation • Shared Vision & Objectives • Focus on Safety & Buildability Ongoing collaboration & innovation
  17. 17. Safely Together Bank Station Capacity Upgrade Q - Do you want to know your risks/opps in advance of contract award? A - Yes - then provide confidentiality to supply chain IP; Q - If providing confidentiality then why not share information between the parties? A - Yes - share information to mitigate information asymmetry; Q - If sharing information, then why not enter into dialogue to allow ‘time’ to (re)create ‘routines’ to ‘transition’ into delivery? A - …find out next year…?! So why wouldn’t you...?
  18. 18. Safely Together Bank Station Capacity Upgrade A Few Little Extras
  19. 19. Safely Together Bank Station Capacity Upgrade All tasks 8 days long PB 10 days long FB 4 days long Use an Aggregated Tolerance to the Task Flow called a ‘Buffer’
  20. 20. Safely Together Bank Station Capacity Upgrade Take Advantage of Early Completion Mitigate Potential Delays
  21. 21. Safely Together Bank Station Capacity Upgrade Transport for London Dragados URS Dr Sauer & Partners Wilkinson Eyre T Clarke Alan Auld Eng. Ltd. Robert Bird Group Scott Lister Hyder Consulting Munellys Vision Survey Geocisa Others Organisational Network Analysis: Self Organising Communities of Practice Less Influence More Influence Project Management Functions Mechanical and Electrical Architecture Tunnelling Civil Engineering and Construction Engineering and Design Management, Client, Sponsor and Operations There are 6 closely knit multi- disciplinary and multi organisational communities present in the information exchange network with specific themes across organisations and functional disciplines Fourway Communicatio n
  22. 22. Safely Together Bank Station Capacity Upgrade Thank you simaddyman@icloud.com simon.addyman@tube.tfl.gov.uk

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