Project Alignment. A different angle for your projects. on Major International Engineering & Construction Projects Kingsfield Consulting Ltd

Transcription

1 Project Alignment on Major International Engineering & Construction Projects A different angle for your projects 2016 Kingsfield Consulting Ltd

2 1 What is Alignment?

3 What is alignment on projects? A process that establishes agreement and common understanding between key supply chain partners of goals and factors that are critical for project delivery and success, and which generates trust as the foundation for collaboration Kingsfield Consulting Working Definition The conditions where appropriate project participants are working within acceptable tolerances to develop and meet a mutually defined and understood set of project objectives. Griffith & Gibson (2001). Journal of Management in Engineering

4 2 Why Project Alignment?

5 Project alignment why we should be interested: > Research shows that 66% of mega projects fail; this rises to 78% of oil & gas projects 1) > Quality of the relationship between a client and EPC contractor matters to the outcome of mega projects 2) > Project complexity increases the need for strong connections and collaboration between partners and the supply chain > A significant portion of joint ventures & consortiums underperform (49%) or fail outright (30%) 3) > 52 % of failures are due to relational issues (lack of trust, cultural differences, values, etc). not legal or operational reasons 4) > CII has empirically validated Alignment as a Best Practice 5) 1) Merrow (2011) Industrial Megaprojects 2) Brookes (2014) 3) Accenture (2001) 4) Eaves, Weiss & Visioni (2001) 5) construction-institute.org

6 3 Alignment Objectives & Benefits

7 Typical alignment objectives Agreeing on project aims & goals Defining key success factors for the project Identifying top risks and barriers to achieving success Establishing common ground & joint strategies in key areas Mapping roles, responsibilities and interfaces Understanding and accepting cultural differences Surfacing and resolving the inevitable different commercial & business interests amongst supply chain parties Generating action plans and commitments

8 Benefits and outcomes + Improved relational health network connections and trust + Clarity on goals, key success factors, roles, scope split + Focus on common ground rather than problems or conflicts + Enhanced potential for collaboration and action + Agreed action plans that can be monitored + Mutual acceptance of different commercial interests + Buy-in and personal commitments from key players on critical decisions and issues + + Improved project outcomes + + improved bottom line

9 4 Locations and Levels of Alignment

10 Aligning key supply chain partners Client Employer PMC Alignment between Employer / PMC & EPC Contractor Alignment within Contractor: between JV / consortium partners EPC / Main Contractor First Tier Subcontractors / Key Vendors Alignment between EPC Contractor & Key subcontractors / vendors

11 5 Focal points for alignment

12 Alignment focus and purpose will differ depending on project phase and stakeholder needs Relationships, culture & trust Health & Safety Assessing complexity and planning-the-plan Scope of work, scope split, interfaces, roles Key success factors Common goals Project critical issues Engineering Procurement Schedule Construction Top risks & mitigation Resolving conflict, team repair

13 6 Alignment Process & Methodology

14 How do we plan and facilitate alignment? Agree aims with sponsors Online survey & interviews with participants Design workshop agenda Alignment workshop Agree actions Implement & monitor progress

15 7 Selected Alignment Reference Projects

16 Selected Alignment Reference Projects Joint Venture Leadership Alignment with four partners (Japanese & Korean) on a LSTK greenfield refinery in Southeast Asia Project Leadership Team Alignment between the Contractor (French / Korean Consortium) and an Oil Major on a very large floating LNG facility Project Team Alignment between Main Contractor (Japanese) & Consortium Partner (Chinese) on a lumpsum turnkey petrochemical project in Nanjing, China Strategy & Alignment Workshop, German Contractor, Baltics, Shale Oil Alignment oil major client with Asian/French Contractor consortium on mega 1 st -of-its-kind FLNG facility, Asia Pacific Safety Leadership Development & Alignment Owner / Contractor / Main Subcontractors on a LNG Plant, Yemen Client-Contractor Alignment Multi-partite Client + 5-partite JV contractor on a greenfield refinery in Southeast Asia Project Alignment Client / PMC / Contractor, Oil & Gas project in Saudi Arabia, conducted on site Joint Venture Project Team Alignment & Communication Improvement Initiative French-Asian EPC Contractor, LNG plants, Qatar

17 About Kingsfield

18 Kingsfield Consulting Rosemount House Rosemount Avenue West Byfleet Surrey KT14 6LB United Kingdom T + 44 (0) F + 44 (0) kingsfieldconsulting.com Please contact us for further information or if you would like to discuss your project kci@kingsfieldconsulting.com