1Copyright © 2009 Corpus Optima. All rights reserved.
Going from Good to Great in the Project World
PMI HOUSTONJune 18, 2009
Dave Guerra
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First some background . . .
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What is the current environment?
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The Perfect Storm
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The Perfect Storm
Global Meltdown
Uncertainty Urgent Pressures
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Complex Issues
A Brutal Economy
Increasing Regulation
More Demanding Customers
Critical Talent Supplies
Fluctuating Capital Markets
Shifting Operational Pressures
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More than 70% of change initiatives FAIL to achievedesired results in time to make a difference.
There’s a Problem
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How Can That Be?
Six SigmaTQMPMBOK®
BaldridgeLeanEtc.
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Not everything that counts can be counted, and not everything that can be counted, counts.
Albert Einstein
The Intangibles
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Invisible Factors
Gallup continues to report that 70% of U.S. workers are not engaged.
Source: Gallup Q-12 Work Engagement Survey June 2007
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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.
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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
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Best efforts and exhortations will not do it!
W. Edwards Deming
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Miracle Needed
How to dramatically alter today’s
performanceand
build future capability . . . simultaneously?
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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
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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.
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Superperformance is an
optimization theory.
New and Simple
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Bizarro Superman World
Short-Term Thinking
Fear
Win-Lose
Every Man for Himself
Applauded Layoffs
Toxic Employees
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Deming Profound Knowledge
Systems Knowledge
VariationPsychology
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Deming Profound Knowledge
Systems Knowledge Variation
Psychology
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Studies of Peak Performers
Don’t pick the stock - pick the company.
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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
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Long Term ROI Best PracticesCan’t get the best performance without a culture that can only be described as “inspired.”
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Profound Knowledge Today
Process (Applied Methodology)
Culture (Inspiration and Involvement of People)
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Process x Culture = Superperformance
The Superperformance Formula Cracking the Code
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• 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
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Superperformance Definition
Industry-Outperforming Return on Investment (ROI) sustained over time (at least 10 years)
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Sustainability
“You know Wall Street,” Warren tried to reassure me, “People don’t think in a long term way there.”
Katherine Graham, Personal History
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Peak Performance
Zone of Superperformance
All Others
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What is the impact of Superperformance?
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10 Superperformers
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SUPER
$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
6/7/
1905
6/9/
1905
6/11
/190
5
6/13
/190
5
6/15
/190
5
6/17
/190
5
6/19
/190
5
6/21
/190
5
6/23
/190
5
6/25
/190
5
6/27
/190
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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
vs
$1,400,000
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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
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Three Super Projects from O&G Industry
Todco Drilling
Shell Mars Recovery Project (Post-Katrina)
Statoil Hydro Kristin Production Platform
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TODCO DRILLING
Spun out of Transocean
Non-Core Assets
Amalgamation of Drilling Companies
Dregs of the Industry
Poor Performance, Underleveraged Diversity
Autocratic, Top-Down
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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
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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.”
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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
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Shell Mars Post-Katrina Recovery Project
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Outcomes
• Completed Ahead of Schedule
• Completed Significantly Below Budget
• 1,000,000 Hours Worked
• No Recordable Injuries
• Three Major Innovations
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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.”
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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
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Outcomes
• Operational Excellence with Dramatically Reduced Staffing
• Far Outperformed Statoil Hydro Performance
• Achieved Second Order HSE Performance
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Vidar Hepso, Social Anthropologist
“Superperformance is not possible unless an organization can leverage the social-technical aspects of a project together. “
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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
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What Does This Mean?
To go from Good to Great is to go from Project Management to Project Optimization.
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Good to Great in the Project World
Project Optimization is not possible without as much Project Leadership as Project Management.
Management
Leadership
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Superperformance Points to Something New
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Two Sciences Required for Optimization
There are opposite forces at work. Controlling Liberating
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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
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How do you get Super?
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Habits
“A habit is more powerful than 10 natures.”
William James
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The Infinitely Scalable Habits of Superperformers
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Exercise
Measure your own Habits
Personal Strengths Team Strengths Discuss Implications for Optimization
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Thank You!
Dave Guerra, Corpus Optima
Get the Super Projects White Paper:
http://corpusoptima.com/insights
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