Mark Beardmore - Chartered Quality Institute

Collaboration in the project environmentWorld Quality Day / Loxham Lecture20 November 2013Copyright 2010 by CH2M HILL • Company Confidential

Agenda• Introduction to CH2M HILL• Our collaborative approach• Collaborative influences and our successesCopyright 2010 by CH2M HILL • Company Confidential2

IntroductionCopyright 2010 by CH2M HILL • Company Confidential

Corporate OverviewFounded on ValuesEstablished in 1946 by three engineers and a professor, CH2M HILL operatedfrom its very beginning on four simple values: take care of clients, delivergreat work, do right by employees, and stay true to our integrity and honesty.Holly Cornell James Howland Burke Hayes Fred MerryfieldClair HillCopyright 2010 by CH2M HILL • Company Confidential4

Values Established 60 Years Ago, Still Strong TodayMany of these values are captured in The Little Yellow Book, a guide forbusiness conduct written by Jim Howland and distributed to all employeesaround the world, in multiple languages.• Honesty, integrity, and trust• Focus on our clients and our people• Employee ownership• Innovation and technological leadership• Collaborative and enjoyable work environment• Challenging work• Opportunities for individual growthCorporate OverviewCopyright 2010 by CH2M HILL • Company Confidential5

CH2M HILL TodayWe are an industry leader in Programme management, constructionmanagement, engineering, environmental services, procurement, andoperations.Corporate Overview• Headquartered in Englewood, Colorado• Operations on all continents• More than 30,000 employees• 100 percent owned by our employees• Broadly diversified across multiple business sectors• US$6.4 billion in revenue7Copyright 2010 by CH2M HILL • Company Confidential6

Corporate OverviewCH2M HILL TodayWe deliver the world’s most extraordinary projects:• London 2012 Olympic and Paralympic Games• Panama Canal Expansion Programme• U.S. Forces Korea Base Relocation in South Korea• Masdar City—the first carbon neutral, zero-waste, fully sustainable city in Abu Dhabi,United Arab Emirates• Design-build of a new reverse osmosis water treatment plant in Bonita Springs, Florida• High Bridge combined-cycle power plant in St. Paul, Minnesota• First offshore development on North Slope in Prudhoe Bay, AlaskaCopyright 2010 by CH2M HILL • Company Confidential7

Corporate OverviewDiverse Business PortfolioEnergy, Water &Facilities• Energy &Chemicals• Industrial & AdvancedTechnology• Operations Management• Power• Renewable Energy• WaterGovernment, Environment& Infrastructure• Government Facilitiesand Infrastructure• Environmental Services• Nuclear• TransportationCopyright 2010 by CH2M HILL • Company ConfidentialInternational• Asia Pacific• Canada• Europe• Latin America• Middle East, North Africa& India• Urban Programs8

Our Unwavering Commitment to Health, Safety,Environment, and Quality• Our goal is “Target Zero”• Zero injuries and illnesses(world-class safety)• Zero adverse impacts(environmental stewardship)• Zero errors, omissions,and defects (first-time quality)Corporate OverviewCopyright 2010 by CH2M HILL • Company Confidential9

Our collaborative approachCopyright 2010 by CH2M HILL • Company Confidential

Understanding the client requirements• Businessrelationships arealigned to meet theoutcomerequirements ofeach project• Delivery aligned withbusinessrelationshiprequirementsB u s i n e s s C o s t a n d R i s kR e q u i r e m e n t sOpportunisticrelationshipsTransactionalrelationshipsStrategicrelationshipsDevelopmentrelationshipsB u s i n e s s C o m p l e x i t y a n d T i m eL o n g e v i t yCopyright 2010 by CH2M HILL • Company Confidential11

Business and Projects a collaborative relationshipBusiness ManagementIdentifyOpportunitiesDefine[Planning]SelectProject TeamIdentify[Development]ProjectLifecycleManage thetranches[Initiation]RelocateProject TeamSupportTeamClose theProgramme[Closeout]Deliver[Execution]Copyright 2010 by CH2M HILL • Company Confidential12

Our collaborative environmentProjectClientBusinessPartnersCopyright 2010 by CH2M HILL • Company Confidential13

Establishing the collaborative environment [1]• Business teams– Identifies the business OUTCOMES– Defines WHAT is required by the market and clients– Incorporates and MEASURES defined business outcomes• Client and Business teams– Identifies WHAT the Project is– Identify the Project OUTCOMES– Defines the expected GOVERNANCE requirements– Identifies the cost/ service TRADE-OFFSCopyright 2010 by CH2M HILL • Company Confidential14

Establishing the collaborative environment [2]• Business teams– Builds the Project team to meet the collaboration/ delivery/ clientrequirements– Identifies the right PARTNERS for the Project• Project and Partner teams– Establishes the GOVERNANCE approaches– Defines the MEASURES and tools required for the OUTCOMES– Establishes the internal Project team collaboration modelCopyright 2010 by CH2M HILL • Company Confidential15

Delivering Project collaboration• Project and Client teams– Establish the right tools for the required OUTCOMES– Establish and manage the GOVERNANCE model– MEASURE the OUTCOMES– Define the EXIT strategy– CONTINUALY OPTIMISE the pricing model incentives for Cost/Service trade-offs– Establish an environment encourages INNOVATIONS withrecognition and REWARDS– COMMUNICATE successes and challenges atall levels of the ProjectCopyright 2010 by CH2M HILL • Company Confidential16

Monitoring and improving collaborative projects• Business team– Provide external SME support to the Project– Establish ongoing assessments of:• Compliancy to standards• Team/ Partnership and Supplier behaviours– Leverages other project lessons learned and changes to businessapproaches– Engages opportunities for preventative actions to be implemented– Maintains information and records to support Project teamsCopyright 2010 by CH2M HILL • Company Confidential17

Collaborative innovations driving successes• London 2012 Olympics– “One Team” philosophy– Lifetime legacy• Thames Tideway Tunnel– Collaborative stakeholder engagement– Collaborative procurement and contracting approaches• Rocky Flats– Multiple innovative changes in Nucleardecommissioning techniques– Learning organisationCopyright 2010 by CH2M HILL • Company Confidential18

Collaborative influences and oursuccessesCopyright 2010 by CH2M HILL • Company Confidential

Successful project collaboration requires the need for theorganization and individuals to work towards a commonaimsOrganizational Influence Addressed ApproachPolicy Yes Project specific charterProcesses & Procedures Yes Project Delivery FrameworkAuthoritySystemsManagement StyleReward & IncentivizationPerformance assessmentYesYesYesYesYesAgreed and establishedGovernancesIndustry ‘best practice’solutionsAs required by the clientbased on business approachRewards and recognitionsystems deployedMaturity and behaviouralassessmentsCopyright 2010 by CH2M HILL • Company Confidential20

Rewards for our collaborative business approach• Renewed frameworks with the US Navy for over 30 years• > 60% of our business is from existingcustomers• Recognised by our customers, Gold Category‘International Arch of European Quality’• The first service company to win the ‘MalcolmBaldrige National Quality AwardCopyright 2010 by CH2M HILL • Company Confidential21

For true collaboration to work it requires all corners ofthe puzzle to remain committed and joinedProjectBusinessClientPartnersThank youCopyright 2010 by CH2M HILL • Company Confidential22