1. Noé Hernández-Sáenz Burns & McDonnell Engineering
Quantitative Easing 3.0 – Boosting the Amount of Information in the Project System
Noé Hernández-Sáenz
Burns & McDonnell Engineering

2. CII: Driving Predictable Business Outcomes
Building a Performance Culture (2009)
We already have a great safety culture
Integration of Project Management and Financial Intelligence (2010)
Joe Knight
It’s proven: metrics can bind operational and financial performance
Improved Project Performance Boosts Business Outcomes (2011)

3. 25% Savings – It is Possible
“The management of capital investment has an enormous effect on profitability and competitiveness, yet few companies do it effectively. We believe that the use of evaluation tools, disciplined processes, and best practices can help companies trim capital spending by up to a quarter without reducing capacity or functionality – and improve their operating costs and revenues through better investment decisions.”
- McKinsey & Co.

4. Dow Jones Industrial Average (Annual Avg. Improvement)
Dow Jones Industrial Average vs. CII Owner Cohort Index (Normalized to FY2000)
Dow Jones Industrial Average
(Annual Avg. Improvement)
CII Owner Cohort Index
1991 → 2010
+12.6%
+30.6%
1995 → 2010
+8.0%
+27.7%
2000 → 2010
-0.1%
+8.3%
2005 → 2010
+0.6%
+10.9%
2008 → 2010
+5.4%
-4.7%
Data courtesy of UT McCombs School of Business

5. CII Owner BMM Cohort Project Performance
Project Cost Growth
(Absolute Difference)
Project Schedule Growth
2000 vs. 2010
-5.7%
-17.6%
2005 vs. 2010
-1.1%
-2.2%
Data source: CII Benchmarking & Metrics Program

6. Construction In Progress/Capital Expenditure
CII Owner BMM Cohort vs. CII Owner Cohort
(Annual Avg. Improvement)
CII Owner Cohort vs. Non-CII Owner Cohort
1997 → 2010
+3.2%
+15.8%
2000 → 2010
+0.6%
+17.3%
2005 → 2010
+6.0%
+22.9%
2008 → 2010
+6.5%
+29.9%
Data courtesy of UT McCombs School of Business

7. Cash Flow/Capital Expenditure
CII Owner BMM Cohort vs. CII Owner Cohort
(Annual Avg. Improvement)
CII Owner Cohort vs. Non-CII Owner Cohort
1997 → 2010
+14.1%
+7.0%
2000 → 2010
+23.1%
+9.4%
2005 → 2010
+29.7%
+3.1%
2008 → 2010
+75.3%
+14.6%
Data courtesy of UT McCombs School of Business

8. Economic Value Added/Cash Flow
CII Owner BMM Cohort vs. CII Owner Cohort
(Annual Avg. Improvement)
CII Owner Cohort vs. Non-CII Owner Cohort
2002 → 2010
-12.0%
+11.6%
2005 → 2010
+14.1%
+13.5%
2008 → 2010
+5.4%
+50.9%
Data courtesy of UT McCombs School of Business

9. Today’s Marketplace Cash Is King Value Creation
Ability to Grow Organically (Not Reliant upon M&A)
Ability to Self-Fund Capital Projects
Value Creation
By Growing Income
Not Only by Cutting Expenses
More Capital Projects = Economic Value Added
(More Work for Contractors, Suppliers)
Enabler: External, Quantitative Information
(From CII)

10. Path Forward Implementation Session Columbus Hall IJ
Financial Analyses (Owners and Contractors)
Value of Best Practices
Safety Data Trends and Findings
Regional (Gulf Coast) Productivity Findings
Columbus Hall IJ
4:20 pm (Today)
9:20 am (Tomorrow)
CII Benchmarking and Metrics Product Display