MTRC - Tseung Kwan O Extension
We were appointed in 1999 and have just completed and signed off our work as the Partnering Advisors & Consultants on one of the largest construction projects in Hong Kong - the Mass Transit Railway Corporation's HK$17 Billion metro extension in Hong Kong.
We worked with Joint Ventures, and individual contractors, consultants & suppliers from UK, France, South Korea, China, Australia and Japan covering all aspects of the tunnels, stations and signals work on the project in helping them understand and introduce Partnering. We also worked on changing the culture within the MTRC Project Division.
We ran partnering events, reviews and coaching sessions for the individual projects, always focusing on the behaviour changes. We developed relationship tools and methods so they could monitor and improve the working behaviours.
Together with the managers, we introduced cross-project and inter-company co-operation to help move them towards a more strategic and alliance way of thinking and working. We helped strengthen their internal project management processes and constantly challenged and supported the quest for improvements. We searched out and celebrated successes.
Sessions were held with the key Government authorities to get the right understanding and smooth the progress. Key sub contractors and the suppliers were an essential part of the partnering, with many outstanding examples of supply chain co-operation.
The project was an outstanding success and exceeded expectations and plans. People were willing and able to change their behaviours to innovate and co-operate. The results:
- Completion some 4 months ahead of the approved timetable, open to the public 10 weeks ahead of the original plans, producing an earlier income stream than envisaged.
- A cost saving of over HK $ 1,000 million, attributed to partnering alone.
- A significantly improved claims culture, with fewer claims than previous MTRCL projects, early resolution of final accounts, with many being concluded before completion of the actual work.
- Higher standards of quality demonstrated by lower rejection rates and well within programme.
- Zero physical defects noted in all inspections of ancillary buildings and stations by Fire Services department, which represents an industry first.
- Tangible benefits for, and less disruption, to many of the communities in which the construction works were taking place.
- A much-improved attitude and approach to site safety within individual contracts and across the project.
For additional information, click here. To download the Case Studies in PDF format, click here for whole project and click here for Contract 609.
Firmenich
We have included this short case study to give an example of a totally different industry and a different approach. Firmenich is an unusual company, privately owned by the family of the same name. It is based in Geneva and runs a global business of perfumery, flavours and chemicals. It is represented in every continent and its customers include names such as Coca Cola, Unilever, Procter & Gamble, Johnson & Johnson, along with all the major perfume Houses (l’Oreal, Dior, Channel etc etc). When we started to work with them, they were number 5 in the world. When we finished, they were number 1.
We were first involved by an American Associate of ours, Bob Parker, who effectively passed them to us. They knew that they had to change, that their position was slipping in an increasingly competitive global market. We were asked to help their Perfumery account managers grow the business. We launched a series of workshops around the world targeting their account management teams, some of which were geographically structured, some of which were large customer teams with a global responsibility. We also worked with their top team in perfumery and in chemicals to help them grasp the culture change that we were instigating.
Our process was, because it had to be, concentrated. Some of the global account teams would only meet once a year and we had to get them to fly into a central location just for our training and development. Every team had a set of different issues, so the account manager dealing with Central Europe had some difficulties with a culture in Bosnia that insisted on getting her drunk on Slivovich before they would sign a deal, the Americans could not understand that they were subordinate to Geneva, the Parisian perfumery team thought that business was only done over a very long lunch and that that was the sum total of relationships. None had the concept of Partnering, either with their clients or with their own internal suppliers.
Our workshops crashed them through the cultural barriers towards a Partnering concept, helped them develop their influencing and negotiation skills and started the process of a cultural change. In little over two years, the Perfumery division had moved to number one in the World.
Dorset Coast Resignalling Project
Although we have been extremely successful on larger Railtrack projects such as Thameslink 2000 (£750M) and West Coast Route Modernisation Train Control systems (£650M), the Dorset Coast project has special significance. It is an attempt by Railtrack, now Network Rail, to introduce a new supplier (Siemens) into the UK market and to also introduce a new computer based signalling system. Considering the difficulties faced by this enormously regulated industry, this is quite a challenge.
The culture in the rail industry was adversarial. The track record of success on signalling projects, using tried and tested technology, was virtually nil. Costs had a habit of rocketing, while ‘completion on time’ and ‘right first time’ were concepts alien to the industry. Initially set up as a Partnership between Siemens and Railtrack, the decision was taken with our guidance to move to an Alliance, which included Mott MacDonald and Clough Smith Rail. The Siemens team consisted of the Germans based in Brunswick and the small fledgling UK arm in Birmingham. Not surprisingly, the issues between those two were as difficult as any with the contractors.
To add to the challenge, the project manager was fired and the next one lasted a very short time, the client manager emigrated after a couple of years, Motts refused to join the Alliance and were replaced by Atkins, Clough Smith were taken over by Interserve…. And yet they are nearly complete, looking to be on time and close to a budget that was grossly under-estimated. Success should signal (sorry) a step change in the UK rail industry, a new strategic market for Siemens and a much better railway in Dorset. The process started with two workshops, one for the Railtrack team and one in Germany for the Siemens team. These gave them the opportunity to air their concerns privately, to understand the concept better and to get themselves into shape.
A Joint Project team was formed, initially based in Germany, with a plan to migrate to the UK, once through the design and concept phase. Launch workshops were held in Berlin and London, and followed up with team support, review sessions and developmental sessions. As we progressed towards implementation, it became clear that not all of the implementation team were ready or experienced enough and, with the concept of best man for the job, a huge effort was put into preparing for the crucial possessions.
For each major possession, we ran a preparatory and planning workshop and then a review workshop. Each stage saw a marked improvement. Throughout the process we facilitated the Alliance Board and took them through a developmental process as well. Through the difficult negotiations, we have acted as both facilitators and mediators, on line and off.
The MD of Siemens was quoted as saying "Had it not been for the Partnering, this job would never have been completed, as Siemens would have walked away." Michael Holden, Southern Region’s MD, at the Christmas celebration dinner – celebration being an important part of the new culture! - singled out JCP for special thanks. In his view had it not been for us, the project would not have succeeded.
Welsh Water
Capital Programme Partnering and Alliancing
Our first meeting with Welsh Water took place in the spring of 1995. We had been recommended by Professor John Bennett of Reading University who had been a key member of the Latham team and Reading Construction Forum. We very quickly became involved, helping them with the selection of new Partners for Cardiff and Newport, advising on the development process and running the first Partnering workshops in Brighton in September of that year. We remained with them throughout the AMP2 work concluding with the final reviews and the Institute of Civil Engineers award for Cardiff.
Extending Your Vision and Helping to Make It Reality
With AMP 2, their vision was to move from the adversarial contractual relationships of AMP1 to ‘Project Partnering’. The Partnering they envisaged was fundamentally around the main contractors in separate projects. We tried, from the outset, to stretch their vision by encouraging them towards some Cardiff-Newport ‘alliancing’ in the form of sharing lessons learned and joint purchasing. We also tried to encourage them to draw in more of the supply chain, which succeeded with the M&E contractors.
When they did move towards Strategic alliancing for AMP3, we started to talk to them about a ‘Virtual Company’ approach. At the start of AMP3, the Capital Alliance looked like a series of Project Partnerships under the umbrella of a Strategic Alliancing team. Over three years this has moved to Regionally Integrated Teams with an Alliance programme and pain/gain mechanism. In addition, our aim of trying to join up the Alliances is now coming to fruition with a wider membership of the Strategic team and representation from other alliances on other teams as well as some sharing of best practice.
The How
How did we try to help? Our approach throughout AMP2 & 3 has been based on an integrated mix of consultancy, facilitation, coaching and education. The first principle we applied was to ensure that they never felt alone on this journey and thus we make ourselves available whenever they need to talk. The second principle that we followed was to ensure that everyone in the Alliance developed the same understanding of what a cooperative relationship should be.
With that understanding in place, we then helped to ensure a common vision, a common set of goals and a common set of values and behaviours that supported the new culture and new way of working. The emphasis, as in all our work, was to move from the adversarial to a truly cooperative culture based on openness, honesty and trust; one where the focus moved to understanding each other’s needs and committing to helping achieving them.
It meant destroying the blame culture and replacing it with one where people not only were not frightened to speak up, but demanded to do so in a new supportive environment devoid of fear. That process helped to develop the right relationship, which in turn helped the Partners to focus on getting the job right. The next steps simply flowed along two parallel paths, building and sustaining the relationships and developing the people, processes and structure.
In Summary
We have helped to:
- Change the culture to a much more cooperative one, built on the successful development of relationships, both business and personal
- Develop the Alliance into much more of an Alliance with; The Alliance Development Team; The Task and Finish Teams; The Joint Business Teams
- The Regionally Integrated Teams; The Alliance Programme; Develop the Behavioural Skills; Develop and deploy the EFQM BEM; Improve Meetings with the Effective Meetings Course and Facilitation; Coach Individuals
- Support Teams; Carry out team and inter team building and development; Run Problem Solving Workshops; Develop Supply Chain Thinking; Facilitate and guide the Strategic Team; And we have monitored the success of our performance through continuous feedback and reviews, both with our own team and with our Partners.
The Results
Welsh Water has taken 60% out of it's cost base and is now number one in the OFWAT OPA league.
Conclusion
Three years after launching, the capital Alliance is one to which we feel both proud and privileged to belong. There is much to be achieved by 2005, but with a solid foundation of success, the commitment of the whole team and a real willingness that is almost tangible, we can say that "we are on our way."
Bury Healthcare NHS Trust
JCP have been involved in the development of the strategy, and deployment of the team nursing philosophy across the Trust.
The community care organisation has responsibility for the care of patients at home. Previously functional divisions and lack of focus on patients care have resulted in wasted effort and resources, conflict, unhappy medical practitioners and managers.
The interventions have focused on building a common agenda for improvement and co-operation between multi disciplinary teams. These have mainly involved health visitors, district nurses, community psychiatric nurses, practice nurses, GP's and support staff. The focus has been on delivering better care for patients, reducing waste, devolving responsibility from the centre to each team leader and making the deliverer of the service accountable.
Benefits have been considerable in reduced expenditure and increased patient care. In addition a positive team working environment, and ownership for action at appropriate levels, have been realised.
The approach adopted by Bury Health Trust has been recognised by the British NHS Executive as an example of best practice in delivering patient care in the community.
Sainsbury's
Partnering in Construction
JCP has been at the forefront of helping organisations to work collaboratively for some 15 years. Here we give a look back at work we did some 10 years ago with Sainsbury PLC.
In April 1994 Sainsbury's became involved in an intense price war with other supermarkets. The financial return was too low and the Main Board wanted the costs of stores to be reduced significantly. Sainsbury's strategy for maintaining its share prices had been to increase the size of the sales area each year, but it had no existing planning approvals and no land bank. The decision was therefore made to extend the size of existing stores. Collaborative working was seen as a way to reduce costs - but also to improve relationships with suppliers at a time when services were becoming increasingly outsourced.
In January 1996 JCP carried out Sainsbury's first partnering workshop on the Savacentre project in Leeds . The main aim of this project was to reduce costs - time was not of primary importance. The majority of the packages were negotiated and value engineering was used extensively. This resulted in a saving of £750,000. The team who worked on the project felt that the first Partnering workshop contributed towards the success of the project, in that it brought everyone together early on and encouraged them to be totally open with each other. This instilled trust developed at the workshop was enhanced by the store success.
JCP then began helping Sainsbury to use partnering workshops on all projects and provide training for its own staff in developing the appropriate partnering attitudes. Workshops were held with Project Managers and Senior Managers. This process was very successful in bringing internal people on board.
The Bottom Line
Over a period of years working with Sainsbury's construction teams for stores the results were impressive. Sainsbury's reduced costs on mainstream stores by 35% and reduced typical construction timeframes from 42 weeks to 15. Quality levels were also improved. In 1996 the company estimated it was 70% of the way to delivering zero defects at handover; by 1998 this was up to 80%.
Signalling Project - MTRC & Alstom
In 2001 The Hong Kong Mass Transit Railway Corporation and Alstom Transport Information Solutions were working together on a project to provide the signalling of a new section of track for the interchange of metro line trains with the Kowloon and Canton Railway Company's new Westrail Line.
The 4-Tracking Signalling Project works included a complex implementation of existing technology to the existing railway. Interface works were extremely complex between the new portions and the existing. Installation and test and commissioning could only be performed during a narrow window of time in the early hours of the mornings between operating hours of the existing railway. As well as being technically complex the contract also had the challenge that there were three separate geographically located offices that undertook the work - France , Australia and Hong Kong . The design, software and most of the hardware were produced in France with a small portion of design and software produced in Australia and the installation, test and commissioning being undertaken in Hong Kong.
JCP Consultancy had worked extensively with MTRC for several years during their Tsueng Kwan O extension project.
In the first 6 months of the contract, the signalling team's performance was well below expectations. Not one milestone was achieved - the contract was essentially 6 months late. The initial cost of the contract of HK$73.3 million was beginning to look in jeopardy. MTRC decided to call JCP in and try a more cooperative approach to the project.
As a starting point JCP Consultancy advised a two day workshop involving all the key members of the project team. Prior to the workshop JCP also interviewed key members of the contractor and client to ascertain perceptions and uncover some of the important issues around the project. The workshop centred not only on the theory of cooperation but also the practicalities - the behaviours required for real cooperation and the development of real systems to measure change and performance.
A Partnering Charter was also drafted in the workshop and later finalised and signed by all attendees. Partnering Charters are easy to sign however. Really this is just the beginning of the journey to effective collaboration. JCP Consultancy worked hard to ensure that this was the case so that cooperation could become the real-life daily norm and not something that happens on a workshop but then stays there when everyone returns to work.
A Contract Partnering Steering group was set up to both actively monitor and steer the client-contractor relationship. Measurement systems were put in place to identify the danger signs of faltering cooperation, and these systems took into account both 'hard' and 'soft' issues. Another aspect of sustaining the partnering was the holding of partnering review sessions at least every six months. These were one-day sessions where JCP and the partners could reaffirm the benefits of partnering and continue the relationship building. They also provided an excellent vehicle to introduce new team members into cooperative contract culture.
Two years later the project was completed. Its performance can be measured overall by the following:
- No claims
- No safety issues raised nor injuries sustained
- Completed ahead of program by 11 weeks
- Completed to budget
- There were no outstanding commercial issues on completion
- Only minor works outstanding and on target for completion 12 weeks after completion and during the Defects Liability Period.
These successes are even more impressive when one remembers that 6 months after the inception of the project nothing had been achieved.
The hugely improved relationship between Alstom and MTRC, supported from the highest levels also spawned further benefits. The success of the 4-Tracking Signalling contract spurred a Value Engineering Workshop on a subsequent contract between the parties. The workshop identified savings that resulted in gross savings of HK$12 Million that was shared 50:50 between the parties. This could not have been achieved without the success of the relationship developed on the 4-Tracking contract.
There is now in progress a follow-on contract between the parties and although there are new people in the team the cooperative approach remains entrenched. There is a realisation that there is no better way to do a project than to cooperate. The other alternative is unpalatable.
To download the Case Study in PDF format, click here.
Shatin Heights Tunnels and Roadworks
The Contract is for is the construction of the Sha Tin section of Route 8 trunk road. It comprises 1 km long, dual three-lane tunnels, a 0.6 km long dual two-lane tunnel approach road in Tai Wai, and a toll plaza. The contract for approximately HK$1BN is due for completion early 2007.
It is one of the first contracts adopted for post contract project partnering by HK Government and was is led by Civil Engineering and Development Department. John Carlisle Partnerships (SEA) were selected jointly by the Employer and Contractor to take on the role of Facilitator, immediately after the commencement of the contract.
One difficulty faced in the early stages of the was that both Client and Contractor tended to treat each other as contracting parties in a conventional arrangement, even though both had signed the partnering charter. As a result, it was difficult to recognize many benefits in the early stages and the process of identifying and solving problems together was initially slow. Another difficulty faced was that sometimes, other government departments, who play a key role in reviewing and accepting value engineering proposals, may not show the same degree of enthusiasm as the Partnering entities. After 2 years however, there are now signs that significant benefits will be gained, these include:
- fewer claims when compared with other contracts of similar nature, and dealt with more quickly – so far, only 33 claims with 12 resolved already, a typical contract of this nature might have generated 100 claims by this stage;
- an amicable working environment for all stakeholders through team building and trust rather than by confrontation;
- speedier decision making with defined issue resolution strategies;
- meeting the mutual objectives as agreed in the Charter by co-operation;
- developing a co-operative culture;
- reducing unnecessary paperwork;
Building trust between the two contracting parties is essential to the success of Partnering. More importantly, in order for the benefits to materialize earlier, this must be achieved quickly, and if possible, involve all stakeholders including the maintenance authorities and other interested parties.
At the beginning, the Contractor identified three main areas where he could minimize or eliminate the risk by adopting alternative designs. As a result, three supplemental agreements have been executed with cost savings, greater certainty of programme, reduced construction noise, reduced traffic impact during construction, reduced risk of accidents, reduced construction and demolition waste, and reduced interface with other contracts. These were negotiated and settled within 6 months rather than a more typical 12 month period.
Both hard (objectives) and soft (behavioural) aspects of performance were initially scored based on the perception of members of the Partnering Steering Group. This has progressed to the use of hard KPIs for the mutual objectives set and “Partnering behaviour” surveys for the key behaviours.
The project is currently one month ahead of schedule and within budget.
To download the detailed Case Study in PDF format, click here.
HK Airport East Hall Extension
This was the first major project undertaken by the Airport Authority since opening in 1998. The East Hall is the focal point of the Passenger Terminal Building and an area through which all passengers must pass en route to the aircraft gates. It was a complex and demanding project which needed to be completed to a tight schedule and budget without interrupting passengers or aircraft. It was evident therefore that to achieve this would require high levels of cooperation from all parties. The result was completion 2 months ahead of schedule, a delighted client who was able to maximize rental income and a final account settled within 3 months.
To download the detailed Case Study in PDF format, click here.