Key Note Speech given at opening of International Partnering Institute's Award Ceremony in San Fransisco in May 2014.

1. NCC AB 1
Changing Scandinavia's Culture of
Construction through Partnering
Background, Why, What and How
John Thorsson, Partnering Manager
NCC Construction Sweden AB
+46703 243 755
john.thorsson@ncc.se
2014-05-15

2. Here’s Sweden
9.4 million people.
3rd largest country in the European Union by area.
173,860 square miles to the surface in the European Union by area.
Population density of 54 inhabitants per square mile
Mostly concentrated to the southern half of the country.
85% live in urban areas.
Stockholm is our Capital city.
Industries: Iron and steel, precision equipment (bearings, radio and
telephone parts), wood pulp and paper products, processed foods, motor
vehicles.
Companies such as: ABB, Electrolux, Ericsson, LKAB, H&M, AstraZeneca,
Skanska, Swedish Match.
NCC Construction Sverige AB 22014-05-15

3. John Thorsson
NCC Construction Sverige 3
Partnering Manager,
NCC Construction Sweden.
Changing the culture of construction
through collaboration
2014-05-15

4. Construction at first sight
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5. Industry, Company, We, Me,
responsibility
NCC Construction Sverige AB 5
AdversarialCollaborative
FrompresentationbyDavidE.Hawkins,ICW
2014-05-15

6. NCC Construction
Figures and background on partnering
NCC Construction Sverige AB 62014-05-15

7. Fragmented construction market
in the Nordic region
Market shares, sales 2013
NCC AB 7
Source: Euroconstruct and NCC
Others, 72%
Skanska, 6%
NCC, 7%
Veidekke, 3%
Peab, 5%
Lemminkäinen, 2%
YIT, 2%
MT Højgaard, 1%
JM, 1%
AF Gruppen, 1%
Total
Roughly $125 billion
2014-05-15

8. Product mix
NCC Construction Sweden
NCC Construction Sweden AB 8
Offices,
12%
Shopping centers,
7%
Other,
13% Infrastructure,
19%
Housing,
18%
Industrial and
processing plants, 19%
Share of net sales in 2012
Earthworks,
13%
2014-05-15

9. NCC Construction Sweden
volume in partnering
36 % av
NCC Construction
Sweden turnover
9
2%
14%
25%
33%
2004 2006 2008 2010 2012
2014-05-15

10. From England to Sweden
~1999
Denmark
SwedenEngland 1998
10
~2003
USA
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11. Sharing
Paying it forward!
11
2%
14%
25%
33%
2004 2006 2008 2010 2012
36%
NCC Construction Sweden volume in
partnering
2014-05-15

12. Why?
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13. Because it makes sense
Our goal and vision
NCC:s vision is to renew our industry and
provide superior sustainable solutions
NCC Construction Sweden is the market
leading construction company everyone wants
to cooperate with and work for.
NCC Construction Sverige AB 132014-05-15

14. Partnering adds
value
NCC Construction Sverige 14
Long-term acceptable profit. (no
black holes, no sky-limit profits)
Better customer relations and
customer understanding
Today’s and tomorrows co-
workers want to collaborate
Higher employee job satisfaction
Livning our values (Honesty,
Respect, Trust, Pioneering Spirit)
Safer project delivery
2014-05-15

15. Everyone benefits
(Clients)
Access to competence
A better end product
Project finished on time
Right product at the right cost
Effective use of resources
A better working climate
Higher customer satisfaction in all
that we measure.
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16. What?
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17. Traditional contracting
Standard
Contract
AB or ABTFinancial
model
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18. Support and enable the culture you want for
your project
Contract
Financial
Model
Collaboration
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Start with analyzing which behaviours you want to see in your project.
Then make it possible for people to work that way.
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19. Difference between co-operation and
collaboration
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Co-operate
Collaborate
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20. This is where we focus on adding value through collaboration
Degrees of co-operation/collaboration
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x
x
x
x
o
o
o
o Traditional contracting
x o
x
x
x
o
o
o Close co-operation
xx
x
x
o o
o
o Collaboration
x
o
x
o
o
o
xx
Partnering
2014-05-15

21. Employees
Good partnering and pre-requisites
NCC Construction Sverige AB 21
Client
Employees
Partner company
(NCC eg.)
”Project Ltd”
SG
MT
ProdDesign
Partnering fac.
Project assignment
2014-05-15

22. How?
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23. Project Ltd. approach
23
• No one knows everything and if we
gather sooner we will gain more than if
we get together later.
• People working for one another, pulling in
the same direction, will inevitably
produce better results.
• People who trust one another will work
better together.
Common goals
Common
organisation
Common
economy
Focus on best for
project
Collaboration
Partnering is a form of collaboration in the construction
industry where the key players solve an assignment together
in an open dialog with focus on what’s best for the project.
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24. Project Ltd. approach
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Workshops
Training
Partnering Charter
Continuous improvement
Joint risk management
Open books
Partnering Performance Index (PPI)
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25. PPI – Partnering
Performance Index
This shows us
where we’re at
right now
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PPI - Partnering Performance Index©
1. Vi har gemensamma mål i projektet 7,0
2. Jag upplever att alla i projektet arbetar mot samma mål 7,0
3. De gemensamma målen vägleder mig i mitt dagliga arbete 7,2
4. Målen är väl kommunicerade till alla parter i projektet 6,9
5. Partneringdeklarationens genomsyrar projektet och vägleder oss 7,0
6. Det finns ett tydligt organisationsschema för projektet 8,2
7. I projektet hålls det regelbundna och strukturerade möten 8,5
8. All relevant kompetens finns representerad i projektorganisationen 8,6
9. Beslutsprocessen kännetecknas av öppen dialog mellan projektets parter 8,2
10. Styrgruppen består av personer som alla aktivt stöder projektet i ord och handling 5,5
11. Jag upplever att det finns transparens i projektets ekonomi 8,0
12. Den ekonomiska informationen är lättillgänglig och förståelig 6,9
13. Det ekonomiska upplägget gynnar projektet 7,9
14. Vi arbetar på ett strukturerat sätt med att hantera risker och möjligheter i projektet 7,3
15. Parterna är överens om hur eventuella justeringar av kostnader, budget, riktpris
eller motsvarande ska gå till
6,5
16. I projektet uppträder vi på ett ärligt och uppriktigt sätt 7,4
17. Vi visar varandra respekt i ord och handling 7,1
18. Jag har förtroende för de personer jag arbetar med 8,7
19. Jag kan vara trygg om jag kommer med dåliga nyheter 9,0
Övr
20. Jag har en positiv känsla av att arbeta i det här projektet 9,1 9,1
7,6
MålOrganisationEkonomiVärderingar
7,0
7,8
7,3
8,0
Projekt:Snigeln
Svarsfrekvens:91%
Mätperiod:feb2013
Se ävenprojektspecifikafrågor,sid2
Mätning3
0,0
2,0
4,0
6,0
8,0
10,0
PPI - mätning 1 (nov 2012)
PPI och
delindex
målnivå
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
1 2 3
nov-12 PPI
nov-12 PPI
2014-05-15

26. Making use of the possibilities
26
Partnering
Profitability
Customer
value
Employees
NCC Construction Sverige AB2014-05-15