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Mind the gap Overcoming the gap in alignment, thinking and operating between engineering and project delivery functions

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Page 1: Mind the gap - gloval presentation

Mind the gap

Overcoming the gap in alignment, thinking and operating between engineering and project delivery functions

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© 2016 Korn Ferry. All rights reserved 2

Welcome

Colin Brown

Associate

Korn Ferry Hay Group

Paul Lambert

Senior Client Partner, Industrials Market

Korn Ferry Hay Group

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© 2016 Korn Ferry. All rights reserved 3

Welcome to Tomorrow’s Engineering Workforce:A three-part webinar series

Today’s webinar:

Mind the gap: What steps can leaders take to bridge the gap between

engineering and project delivery functions for greater project impact

Previously

Tomorrow’s engineering workforce: How to attract, retain and engage the right

engineering workforce now and for the future

Tomorrow’s engineering leaders: How to select and develop future leaders

whose qualities go beyond technical proficiency to align, engage and enable the

workforce

Past webinar recordings

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© 2016 Korn Ferry. All rights reserved 4

1 WHAT IS THE GAP?

2 THREE DAMAGING EFFECTS OF THE GAP

3 HOW TO CLOSE THE GAP

4 RECAP

5 YOUR QUESTIONS

6 GET IN TOUCH

What we will cover

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What is the gap?

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© 2016 Korn Ferry. All rights reserved 6

Engineering Project Overruns and Overspends…

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© 2016 Korn Ferry. All rights reserved 7

Divided they fall: the gap

Success in infrastructure projects often relies on overcoming the gap in alignment, thinking and operating between engineering and project delivery functions.

Engineers tend to focus on quality of outcomes and eliminating risk, whereas project managers tend to be focused on delivering on time and to budget.

Over time, the two viewpoints can be become polarized.

The cost-time-quality triangle

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© 2016 Korn Ferry. All rights reserved 8

Three damaging effects of the gap

The “cost-time-quality” gap is not just a theoretical concept – it leads to three damaging effects.

Segregation (Silo Working)

1

Silo working, antagonistic

attitudes and behaviours

between engineers and project

managers.

Lack of mobility of technical

expertise

Ineffective and inefficient

operations

Higher level of errors / re-work

Over management

2

Fix one problem but create

another

Increase in project

management, planning and

document control processes

to exert more control over

engineering.

Lots of project management

complexity, processes and

organization without

efficiency improvement.

Project overruns and

organisational impacts

3

Impacts of trying to fix the gap

incorrectly

• Project time and cost overrun

• Loss of reputation, credibility

and profitability

• Human impact including high

staff turnover, absence.

• Low engagement and

discretionary effort

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Closing the gap

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© 2016 Korn Ferry. All rights reserved 10

Close the Gap – through integrating people, process and organisation

Project cost, quality and time issues are

driven by “the Gap” between Engineering

and Project Management (and other

supporting functions)

Closing the Gap is achieved through

integration of:

Mind-sets – Whole System View

Behaviours – Aligning Incentives

Shared capability – Cross-skilling

Integrated Leadership and Teams

Closing the Gap

Developing Whole System

View

Create right behaviours

Develop broad

perspective through cross-skilling

Build integrated leadership and project

teams

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© 2016 Korn Ferry. All rights reserved 11

How to do it:

Operating model should clearly define how

work gets done, by who and how objectives

will be achieved.

Organisation’s systems and processes

should drive collaborative employee

behaviours and the outcomes required.

Enable resource sharing and mobility

across projects and programmes

1. Develop a whole system view

Key questions to close the gap:

Does your organisation’s operating model, work

design, processes and culture support collaborative

working between project managers and engineers?

Do engineer and project manager job descriptions

have role responsibilities that reflect cost, time and

quality elements?

PR

OJE

CT

S

Expertise: Engineering, Commercial etc.

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© 2016 Korn Ferry. All rights reserved 12

2. Drive the right behaviours

Key questions to close the gap:

Do balance scorecards reflect collaborative

working and flexibility in thinking?

Are project managers and engineers rewarded

together for time, cost and quality?

Do recruitment, talent management and

development processes for both the engineer

and project manager roles assess for desired

competencies?

How to do it:

Develop and manage the behaviours required

to overcome the gap: including collaboration,

communication and flexibility.

Align behaviours to the role and the

organization’s strategy, values and culture;

Embed behaviours into reward systems,

recruitment, talent management and

development processes

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© 2016 Korn Ferry. All rights reserved 13

3. Develop and cross skill to encourage a broad perspective of the business

Key questions to close the gap:

Does your organization enable engineers and

project managers to develop an understanding and

appreciation of each other’s roles, and also wider

areas of the business and strategy?

Do graduate programs, mentoring and coaching

schemes encourage and develop wider thinking?

Are training budgets also invested in developing

broader competencies (e.g. influencing) instead of

just technical expertise and qualifications?

How to do it:

Encouraging leaders, engineers and project

managers to develop multi-perspective

thinking will help both sides move beyond

rigid and entrenched views.

The aim should be to instil a broader

understanding of the organisation as a

whole (including the company’s strategic

direction), and both the technical and

delivery sides of the business. Cross-

skilling, coaching and the creation of more

collaborative team working environments

can support this.

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© 2016 Korn Ferry. All rights reserved 14

4. Build integrated leadership of project teams

Key questions to close the gap:

Do your leadership teams use a range of

leadership styles to create a collaborative climate?

Are the personal behaviours of leaders consistent

with those that are needed to overcome the gap?

Do organizational structures enable integrated

leadership teams?

How to do it:

Put together integrated project teams –

spanning the skills required to run complex,

multi-disciplined engineering initiatives.

Develop collaborative leadership styles and

team climate

Broader, more collaborative leadership profiles

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© 2016 Korn Ferry. All rights reserved 15

Case study:

A complex UK engineering business faced the challenge of reducing its operating cost by 30 percent over five years whilst maintaining its exemplary delivery record and safety and quality standards

The existing organizational structure managed safety and quality well but delivery issues had begun to surface.

To solve the problem, engineers were reintegrated back into the delivery teams and each regional team was incentivized as a business unit.

Leaders designed and role modelled desired behaviours to encourage collaboration

Margins and on time delivery improved across the portfolio.

Case study: Integrating and collaborating to deliver 30 % cost savings

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Let’s recap

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© 2016 Korn Ferry. All rights reserved 17

Successful projects require us to “Mind the Gap”

The Gap is characterised by:

1. Silo Working / Segregation

2. Over management

3. Project overruns

The Gap is addressed by integrating:

1. Mind-sets – Whole System View

2. Behaviours – Aligning Incentives

3. Shared capability – Cross-skilling

4. Integrated Leadership and Teams

The cost-time-quality triangle

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Questions?

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© 2016 Korn Ferry. All rights reserved 19

Find out more

We have published a set of viewpoints and a research report to go with this series of

webinars. We will send you these reports after each webinar.

Three engineering workforce viewpoints The Gathering Storm research report

15 senior leader

interviews

100+ survey

responses

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© 2016 Korn Ferry. All rights reserved 20

Get In Touch

Colin Brown

Associate

Korn Ferry Hay Group

Paul Lambert

Senior Client Partner, Industrials Market

Korn Ferry Hay Group

[email protected]

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Thank you