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transcript

Going from Good to Great in the Project World

PMI HOUSTONJune 18, 2009

Dave Guerra

First some background . . .

What is the current environment?

The Perfect Storm

Global Meltdown

Uncertainty Urgent Pressures

Complex Issues

A Brutal Economy

Increasing Regulation

More Demanding Customers

Critical Talent Supplies

Fluctuating Capital Markets

Shifting Operational Pressures

More than 70% of change initiatives FAIL to achievedesired results in time to make a difference.

There’s a Problem

How Can That Be?

Six SigmaTQMPMBOK®

BaldridgeLeanEtc.

Not everything that counts can be counted, and not everything that can be counted, counts.

Albert Einstein

The Intangibles

Invisible Factors

Gallup continues to report that 70% of U.S. workers are not engaged.

Source: Gallup Q-12 Work Engagement Survey June 2007

Call for Transformation

All of today’s organizations face a new reality.

They must somehow accelerate improvement in targeted areas while continuing to grow long term systemic value.

Current environments are uncertain, demand agility and transformation -- simultaneous improvement across multiple dimensions.

Past management approaches are no longer effective in this current environment.

Andrea Gail Post-Mortem

Process Problems: “Broken Down Ice Machine”

Past Experience: “We’ll get through this because we’re great sailors”

Paradigm Paralysis: Refusal to consider alternatives because of pressure to perform

Best efforts and exhortations will not do it!

W. Edwards Deming

Miracle Needed

How to dramatically alter today’s

performanceand

build future capability . . . simultaneously?

Who is Corpus Optima?

Performance Revolutionaries

Specializing in One Category: Superperformance

Science-and-Evidence Driven

Thought Leadership in Performance Science

25 Years of Real World Successes

What is Superperformance?

A new management science.

A set of principles and methods for transforming organizational performance.

A simple way to take an organization to the next level.

Superperformance is an

optimization theory.

New and Simple

Bizarro Superman World

Short-Term Thinking

Win-Lose

Every Man for Himself

Applauded Layoffs

Toxic Employees

Deming Profound Knowledge

Systems Knowledge

VariationPsychology

Deming Profound Knowledge

Systems Knowledge Variation

Psychology

Studies of Peak Performers

Don’t pick the stock - pick the company.

Long Term ROI Best Practices

Search of Excellence

People Management

TeamPurposeAction OrientedInnovationCompany with a

PastClose to CustomerFinancial

Performance

Warren Buffett

Broad AppealPeople PracticesLarge CapManagementInnovation-

Minded Super Form/LeanGreat Business

Built to Last

Stretch GoalsPeopleManagement

Team Action

OrientedInnovationCompany with

PastHighly

Regarded

Fortune 500 CEOs

Management TeamPeopleAction OrientedHighly RegardedInnovationClose to CustomerFinancial Performer

Good to Great

Hedgehog Concept

Passion of People

Level 5 Leadership

DisciplineTechnology

AcceleratorsInsider Driven

Change

Long Term ROI Best PracticesCan’t get the best performance without a culture that can only be described as “inspired.”

Profound Knowledge Today

Process (Applied Methodology)

Culture (Inspiration and Involvement of People)

Process x Culture = Superperformance

The Superperformance Formula Cracking the Code

• Strategy

• Method

• Execution

• Passion

• Involvement

• Commitment

• Collaboration

• Customer Delight

• Quality Excellence

• Long Term Value

• Outperforming ROI

• Employee Joy in Work

Process x Culture = Superperformance

The Superperformance Formula

Superperformance Definition

Industry-Outperforming Return on Investment (ROI) sustained over time (at least 10 years)

Sustainability

“You know Wall Street,” Warren tried to reassure me, “People don’t think in a long term way there.”

Katherine Graham, Personal History

Peak Performance

Zone of Superperformance

All Others

What is the impact of Superperformance?

10 Superperformers

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000$1,600,000$1,800,000$2,000,000

S&P 500 SUPER

20 Year Performance

Super vs S&P 500

$25,000 Initial Investment

The Superperformance Fund

1985 1990 1995 2000 2005

Courtesy Aim Investment and Morningstar.com

$288,000

$1,400,000

Characteristics of Superperformers

• Best in the World • Long-Term View

• Stick to the Core

• Ferocious about Quality

• Excited & Engaged People

• Optimistic about the Future

• Evergreen Values & Ethics

• Servant Leadership

Three Super Projects from O&G Industry

Todco Drilling

Shell Mars Recovery Project (Post-Katrina)

Statoil Hydro Kristin Production Platform

TODCO DRILLING

Spun out of Transocean

Non-Core Assets

Amalgamation of Drilling Companies

Dregs of the Industry

Poor Performance, Underleveraged Diversity

Autocratic, Top-Down

Outcomes

Received the 2005 MMS Safety Award for Excellence. It was the first time the award had ever been given to a company in its first full year of operation.

Reactivated 12 idle rigs

Increased the size of the company from 1,700 to over 3,000 in 18 months

Reduced downtime from 3.00% in 2004 to 1.07% in 2006 (the last full year of operation).

Reduced TRIR from 2.3 to 1.27

Quadrupled operating revenues

Mike Kelley, VP Operations

“We went from a sow’s ear to a silk purse. We learned that there is a Superperformer trapped inside of every project and every company and the job of leadership is to let him out.”

Shell Mars Post-Katrina Recovery Project

Hurricane of 2005 had blown through Gulf of Mexico

Topside Damage, Rig had Toppled

Delicate, Expensive, Dangerous

$60 Barrel Environment

Shell Mars Post-Katrina Recovery Project

Outcomes

• Completed Ahead of Schedule

• Completed Significantly Below Budget

• 1,000,000 Hours Worked

• No Recordable Injuries

• Three Major Innovations

Charlie Williams, Senior Scientist

“We ran a “trust the people” not the process type of project. And I believe the personal relationships of leaders and informal leaders were key to our success.”

Kristin Production Platform

Dangerous Norwegian Shelf

Highest Pressure and Temperatures in the World

Co-Located Production Platform Management and Onshore Management

Social Anthopologist design of Interactions Environment

New Cultural Behaviors and Interactions, Increased Self-Organization and Self-Management

Outcomes

• Operational Excellence with Dramatically Reduced Staffing

• Far Outperformed Statoil Hydro Performance

• Achieved Second Order HSE Performance

Vidar Hepso, Social Anthropologist

“Superperformance is not possible unless an organization can leverage the social-technical aspects of a project together. “

What is Common to Them All?

1. Demonstrated amplified results associated with employee engagement

2. Represented new ways of working and unconventional thinking

3. Were infused with servant leadership

4. Were permeated with a ‘trust the people’ attitude

5. Were undergirded with collaboration, teamwork, and passion

What Does This Mean?

To go from Good to Great is to go from Project Management to Project Optimization.

Good to Great in the Project World

Project Optimization is not possible without as much Project Leadership as Project Management.

Management

Leadership

Superperformance Points to Something New

Two Sciences Required for Optimization

There are opposite forces at work. Controlling Liberating

Deming Pointed To It

“It will not suffice to learn all about the present style of management. One could learn all there is to know about ice, but know nothing about water.”

W. Edwards Deming

How do you get Super?

Habits

“A habit is more powerful than 10 natures.”

William James

The Infinitely Scalable Habits of Superperformers

Exercise

Measure your own Habits

Personal Strengths Team Strengths Discuss Implications for Optimization

Thank You!

Dave Guerra, Corpus Optima

Get the Super Projects White Paper:

http://corpusoptima.com/insights

Get Superperformance for 1 Week

Look for Email with the Link

Contact daveguerra@corpusoptima.com

CELL: 281-673-8514

Pmi 124796324233 Phpapp01

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