Heathrow s. Terminal

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5 HEATHROW S... TERMINAL 5... History in the Making Sharon Doherty ThinQ Differently

6 Copyright 2008 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) (for orders and customer service enquiries): Visit our Home Page on or All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or ed to permreq@wiley.co.uk, or faxed to (+44) This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the Publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Other Wiley Editorial Offices John Wiley & Sons Inc., 111 River Street, Hoboken, NJ 07030, USA Jossey-Bass, 989 Market Street, San Francisco, CA , USA Wiley-VCH Verlag GmbH, Boschstr. 12, D Weinheim, Germany John Wiley & Sons Australia Ltd, 42 McDougall Street, Milton, Queensland 4064, Australia John Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop #02-01, Jin Xing Distripark, Singapore John Wiley & Sons Canada Ltd, 6045 Freemont Blvd, Mississauga, Ontario, L5R 4J3, Canada Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Doherty, Sharon. Heathrow s terminal 5 : history in the making / Sharon Doherty. p. cm. Includes bibliographical references and index. ISBN (cloth) 1. Airport terminals England London Design and construction History 21st century. 2. Heathrow Airport (London, England) I. Title. TL726.6.G72L dc British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN Typeset in 11.5/15pt Bembo by Laserwords Private Limited, Chennai, India Printed and bound in Great Britain by TJ International, Padstow, Cornwall This book is printed on acid-free paper responsibly manufactured from sustainable forestry in which at least two trees are planted for each one used for paper production.

7 CONTENTS FOREWORD, SIR JOHN EGAN ix NOTE FROM THE AUTHOR xi PART 1 THE T5 CONTEXT 1 1 INTRODUCTION 5 Heathrow, an economic powerhouse 8 Why should you read this book? 14 2 INDUSTRY TRENDS AND PERFORMANCE 17 Aviation trends 18 Summary 41 PART 2 THE DIFFERENT PHASES OF T PLANNING INQUIRY 47 Key Players 48 The local community voice 50 The airline voice 51

8 vi CONTENTS... What was actually agreed and why? 52 Heathrow East: a different experience 58 Summary 59 4 DESIGN 63 Big-picture design 64 Favourite design features and some areas for improvement 66 BAA as the design client 72 T5 campus design guidelines 73 The design team 75 Summary 80 5 CONSTRUCTION 83 Key players in construction 86 Programme management 86 Quality 100 Safety 105 Environment 114 Logistics 124 Summary OPERATIONAL READINESS 141 Key players 143 Working with third parties 143 Having a plan and mitigating risk 144 People familiarization induction training 146 Organization and structure 146 Employee engagement 147 Trade union engagement 149 Processes 151 Systems 151 Proving that the people, processes and systems plus the facility work 156 Migrating BA from T1 and T4 to T5 159

9 ... CONTENTS vii Bringing the opening date forward 160 Summary RETAIL 165 Key players 167 The approach to retail at T5 168 The delights in store for the traveller 170 Summary 174 PART 3 T5 CRITICAL SUCCESS FACTORS THE LEADERSHIP STORY 177 The size, shape and context of the leadership challenge 178 The BAA CEO leadership story 181 Five leadership characteristics in action 184 Different leaders for different phases 196 Summary LEADERS MOTIVATING PEOPLE 203 Employee relations: The biggest people risk to manage 204 Maslow s hierarchy of needs: Get the basics right 208 Engage the workforce to improve productivity and ER stability 210 Testimonials: T5 s guiseppes 215 Summary THE ROLE OF THE CLIENT 233 T5 agreement: A ground-breaking contract 234 The client managing and mitigating risk 244 Strategic frameworks used to create a successful T5 environment 247 The impact of the T5 Agreement 259 Summary 262

10 viii CONTENTS INTEGRATING TEAMS TO DELIVER EXCEPTIONAL PERFORMANCE 263 Co-locating, the best man for the job, problem solving and innovation 266 What did the team structure look like? 269 Team testimonies 271 Summary 306 PART 4 THE FINAL VERDICT TWENTY-TWO YEARS IN THE MAKING: HOW WILL IT END? 315 What could stop T5 opening on time? 316 Pre-opening verdict 320 Post-opening verdict 324 The final word 327 APPENDIX A: TIPS AND QUESTIONS WHEN STARTING A MEGA PROJECT 331 Tips and good questions to ask 332 Must-have strategies, frameworks and systems 337 Summary 338 APPENDIX B: THE T5 INTEGRATED TEAM 341 References 345 Index 347

11 FOREWORD Sir John Egan There are some stories in business that are worth telling and some that are worth learning from. Heathrow s Terminal 5, over 20 years in the making, falls into both categories in my opinion. It has all the ingredients of what makes business unpredictable, challenging and ultimately extremely rewarding. As I reflect on T5, I remember the over 10-year-long frustrations of dealing with the pitfalls and politics of UK planning regulations, the balance to be struck between the need for world-class infrastructure for London and yet the need for responsible expansion, while trying to get the right regulatory settlement to be able to afford to build T5. Both Sir Mike Hodgkinson, my successor, and I battled through these challenges for over a decade. All of this was before we even started to think about the building of T5, which in its own right threatened to place a significant burden on the company. One billion pounds overspent and a year late were the predictions, if we followed the industry norm. A tightly regulated BAA could afford neither. Coming from the car industry, I had been astonished by the waste and poor practice that I found in the construction industry in the 1990s, an industry of time and cost overruns that was killing over 130 people a year. As I chaired the Rethinking Construction

12 x FOREWORD... government-sponsored thinktank, it became clear to me that the role of the client had to be fundamentally different. We needed to think differently about risk management and about long-term relationships with profitable suppliers, who worked with us to change the approach to the use of computer-based design, design for manufacture, supply chain management and safe and efficient processes, thus getting the best out of a well-trained workforce. I certainly didn t have all the answers, but the commitment to a ground-breaking contract the T5 Agreement, in which BAA held most of the risk set a principle for the way of working. The right leadership, ongoing client involvement and a focus on getting integrated teams to perform to a world-class standard has meant that the UK construction industry has delivered a rare success story. I take my hat off to Mike Clasper and the senior T5 team, in particular, who really had to hold their nerve during construction as the theory of the T5 Agreement was tested. Delivering a 4.3 billion project that integrates with the rest of Heathrow airport on time and on budget is a great achievement. The most rewarding part of T5 is the first-class passenger experience that will act as a fitting legacy to all who have been involved. I visited T5 a little while ago. It is an iconic piece of infrastructure, which is a tribute to the best of the world s design and engineering. The look and feel is bright and modern, with intuitive way finding, great views and retail options that will make it a pleasure to pass throughatpaceorwithtimetodwell. I look back on my engagement with the teams and the project with pride, and look forward to using T5 as a passenger.

13 NOTE FROM THE AUTHOR Itook three months off work to write this book, and what I thought would be a leisurely, cathartic experience ended up being a seven-day-a-week, 3000-words-a-day challenge to hit the publishing deadline, so even in the writing T5 was demanding. I felt compelled to tell the Terminal 5 story from an insider s perspective, to share what really happened over so many years. I wanted to try to capture a moment in time when people from companies came together and achieved a common goal: to open T5 on time and on budget, and to start to put some of the glamour back into flying at Heathrow. This is my first mega project, but for so many involved in designing, building and opening large infrastructures it is easy to see why it gets under your skin. Regardless of the time or cost overruns that so many complex projects encounter, the thrill of seeing the work you have been involved in for years of your life stand the test of time, be used and admired by so many, is something that instils much pride and a determination to do the best work you can do. During my five years involved in T5 as the HR and organizational effectiveness director, I had the opportunity to talk and listen to thousands of people, and over a hundred of them again in some detail to write this book. While my job was to help step-change how

14 xii NOTE FROM THE AUTHOR... things were done in big, complex projects in terms of people and organization, I was always impressed with the project-management and engineering capability that enabled 8000 people at any one time, from so many companies, to coordinate so much in a timely and safe manner, delivering roads, rail, buildings and systems on a site the size of Hyde Park. In my conversations it was always interesting that so many of the people I spoke to described T5 as the best job they had ever been involved in. That was normally followed by things they would do differently, so I think they were being pretty frank. These were comments from senior people, but also the men and women who worked on the tools. For so many the theme was the same: BAA had created an environment that actually allowed them to focus on being the best they could as project managers, design leaders, engineers or supervisors, rather than spending time second guessing the commercial impact on their company of every change or challenge. This book is dedicated to the people who were involved in T5, some who gave a few weeks, but many who gave five, ten and in some cases over twenty years to see T5 opened successfully. I would also like to acknowledge the openness of senior BAA staff and suppliers, who trod a fine line in sharing learning without damaging company reputations. Finally, it is fitting that most of the author s proceeds from this book go to a local T5 charity. This was a book to which so many people contributed. For five years the T5 charity committee worked and raised over for the local community and they have asked that the proceeds go to one of the charities T5 supported: the local Fordway Centre, a school that helps children aged 5 11 who are presented with BESD; behavioural, emotional and social difficulties. Lotsofthingsdidn tgotoplanont5.therewerechallenges,plan Bs and heated conversations along the way. But my overwhelming memory will be one of a really committed team of senior people, from many companies, who pulled in the same direction, made

15 ... NOTE FROM THE AUTHOR xiii the difficult decisions and stood by the consequences. A team of people who worked really hard, 24/7 at times, but who enjoyed working together. Leaders for whom T5 was personal, not a job, but a project in which the stakes were high and most days were matched by the same degree of determination to succeed.

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