Implementation Session RT 243 – Enhancing Innovation in the EPC Industry Paul Chinowsky, University of Colorado Moderator

The Panel Paul Chinowsky – University of Colorado Mike Toole – Bucknell University Howard Irwin – AMEC Cathy Myers – CH2MHill Garry King – WorleyParsons Other Team Members Mauricio Rodriquez – Smithsonian Institution Matt Hallowell – University of Colorado John Strickland – CH2M Hill

Agenda Review of Phase I – Paul Objectives of Phase II – Validate the IMM – Mike Maturity Model Findings - Mike Case Studies –Southland – Howard –Ch2M-Hill – Cathy Putting This Into Action – Garry Conclusion - Paul

Learning Objectives Understand Innovation Maturity Model Understand How to Implement in Your Organization Understand The Need to Change Innovation Perspectives

Phase I Objectives Determine Innovation Drivers Determine Innovation Support Components Focus on Enhancing Innovation After 200 data points and literature review -

8 Key Enablers Leadership Learning Processes Risk Perspective Culture Collaboration Customer Focus Resources Innovation Maturity Model

Q18. Innovation-related activities can be pursued during normal working hours. Work days are not so full that innovation-related activities only occur outside normal working hours. 1=strongly disagree 2=slightly disagree 3=I am neutral 4=slightly agree 5=strongly agree. Average max ScoreDifferenceWeighting Improvement Potential Resources should not be so tightly allocated that there is no time available for activities that may not be tied directly to daily tasks. …

Innovation Maturity Model Innovation Completion Scores Raw ScoreAchievement % Culture % Resources % Risk % Customer % Learning % Collaboration % Leadership % Processes %

Implementation Session RT 243 – Phase II Objectives and Findings Mike Toole – Bucknell University

Objective 1: Validate IMM Evaluation Tool Confirm content and focus Improve statement wording Add demographic questions Convert Excel to Web tool

Objective 2: Improve IMM Process Discussions with client regarding organizational goals, client IMM sample Analysis of client IMM evaluation data Selection of IMM recommendations to be implemented Monitoring of implementation

Objective 3: Document Case Studies Goal: encourage IMM adoption by CII members –Reduce uncertainty about tool and process –Share pilot client lessons learned Commitment to confidentiality Case studies to be included in research report

IMM Case Studies Background 6 volunteer organizations –Southland Industries –WorleyParsons –CH2M Hill –Fluor –CSA –US Army Corps of Engineers Web based Sample chosen by organization Sample size varied

Case Study Comparison

Barrier Comparison Case Study 1Case Study 2Case Study 3 Non-Billable Hours Leadership Fostering Innovation Funding From Corporate Work Days Too Full Innovation Incentives Multi-Disciplinary Teams Focus on Innovation Projects Focus on the Contract Risk-Taking is Recognized as Part of Innovation Leadership Tolerates Some Failure

Summary of Findings IMM is a valuable evaluation tool Results very similar within pilot clients and similar to survey data Implementation of recommendations is critical

Implementation Session RT 243 – Case Study: Southland Industries Howard Irwin - AMEC

Case Study: Southland Address two pertinent topics: Can innovation maturity be measured? –Road test the survey and its output Do the recommendations work? –Test the process of assigning recommendations based on the survey –Test the validity of the recommendations

Case Study: Southland Case Study Process: 1.Maturity Model Survey - Round 1 2.Benchmarking Analysis 3.Recommendations for Improvement 4.Implementation of Recommendations 5.Maturity Model Survey - Round 2 6.Improvement Analysis

Maturity Model: Round 1 Question / AttributeIP Q60. Our organization has an established process for obtaining corporate funds and resources to support innovation activities.7.60 Q22. Our organization has incentives and/or ways to indemnify a project that is implementing an innovation.7.24 Q57. Our organization has a process for developing innovations before implementing on projects to improve likelihood of success.7.00 Q61. Our organization has a process for ensuring innovation-related learning from one project modifies behavior on subsequent projects.7.00 Q25. Our organization spreads innovation-related risk across multiple projects.6.86 Q23. Risk-taking is recognized as a necessary part of encouraging and implementing new ideas.6.19 Q48. Our organization expects individuals to share ideas through formal forums.6.17

Maturity Model: Round 1 Question / AttributeIP Q60. Our organization has an established process for obtaining corporate funds and resources to support innovation activities.7.60 Q22. Our organization has incentives and/or ways to indemnify a project that is implementing an innovation.7.24 Q57. Our organization has a process for developing innovations before implementing on projects to improve likelihood of success.7.00 Q61. Our organization has a process for ensuring innovation-related learning from one project modifies behavior on subsequent projects.7.00 Q25. Our organization spreads innovation-related risk across multiple projects.6.86 Q23. Risk-taking is recognized as a necessary part of encouraging and implementing new ideas.6.19 Q48. Our organization expects individuals to share ideas through formal forums.6.17

Recommendations –Set aside a “pool” or “incentive pot” of funds for project innovations. –Establish “contingency” limits (higher than normal) to be applied to projects to offset risks of trying innovations Q22. Our organization has incentives and/or ways to indemnify a project that is implementing an innovation.

Recommendations –Assign the responsibility of “Learning Coordinator (LC)” to a COP –Develop and implement a monthly knowledge letter sent by each LC –Create a searchable library of innovations Q61. Our organization has a process for ensuring innovation-related learning from one project modifies behavior on subsequent projects.

Recommendations –Establish Communities of Practice –Establish a Recognition System for outstanding performance Q48. Our organization expects individuals to share ideas through formal forums.

Southland – Case Study Highlights IMM provided targeted areas to address. Recommendations fit well into Southland’s continuous improvement program However, base recommendations needed to be adjusted to fit the organization Second Round survey showed marked improvements in the three areas addressed

Implementation Session RT 243 – Case Study: CH2M HILL Electronics & Advanced Technology Cathy Myers– CH2M Hill

Background Electronics & Advanced Technology –Focus on Leading Edge Industrial Technologies

Using the Maturity Model 51 Responses from 2 Groups –Recently Involved in Lean Initiative (Responsibility Based Project Delivery) –Similar Project Not Using Lean Approach Formula for Finding Greatest Opportunity –(ideal score – actual score) x importance factor

Maturity Model Mapping

Findings Generally Positive Perception Areas of Strength –Culture –Leadership Plenty of Room for Potential Improvement

Biggest Opportunities Non-Billable Hours Corporate Funding for Innovation Leadership Investing in Innovation Incentives and Project Indemnification Sharing of Knowledge Failure Tolerance Risk Taking for Long-Term Advancement

Path Forward Clear Connection to Lean Project Delivery Initiative Incorporate Findings to Improve Learning New Thinking on Risk Perspective

Putting the Research to Work Garry King – WorleyParsons

Changing The Game Recognize the Strategic Importance Guide the Culture Engage the Talent Stimulate Collaboration and Learning Create the Processes (transform ideas to action) Change the Risk Perspective

Syndicating vs. Isolating Risk Some Industries Make Good Money By Taking Advantage of Multiple Iterations

Where Do I Start? 1.Measure your organization (IMM survey) 2.Analyze IMM results and recommendations 3.Select specific areas for improvement 4.Adjust and implement to fit your organization 5.Measure again to confirm effectiveness 6.Take a long term perspective