Ian Maxted - Broadspectrum - Challenges beyond Service Delivery
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Transcript of Ian Maxted - Broadspectrum - Challenges beyond Service Delivery
ADM Congress 20169th February 2016
Challenges Beyond Service Delivery
ADM Congress 20169th February 2016
Challenges Beyond Service DeliveryIan Maxted, Chief Development Officer &
Chief Executive Defence, Social & Property
About Broadspectrum (briefly)
Delivery – What is Successful ?
Industry Study
Emerging Industry Trends Beyond the Technical
The Non-Technical Expectations
Conclusions
Broadspectrum – An overview
Tot alRevenue
$3.7b
TransfieldGroup founded in
1956
10countries
18industries
+200clients
+25,000 employees
Broadspectrum
Select Examples of What We Do
We maintain and operate Sydney’s Harbour City Ferries for the NSW Government in partnership with Transdev
We provide shutdown maintenance and drilling services to various mining and oil & gas operatorsglobally including for Woodside
We maintain coal seam gas wells in Queensland for QGC’s CSG to LNG program utilising Easternwell’s well servicing rigs and provide services across the value chain
We install telecommunications networks for the National Broadband Network in Australia and the Ultrafast Broadband Network in NZ
We provide garrison and welfare services for the Australian Government on Nauru and Manus Island
We operate and/or maintain civil, mechanical, electrical and tolling assets for the Hills M2 Motorway andLane Cove Tunnel in Sydney, City Link and East Link in Melbourne, and Presidio Parkway in the US
We provide estatemanagement and garrison support services to the Australian Department of Defence on bases in Victoria,South Australia, Tasmania, Western Australia and the Northern Territory. We alsoprovide emergency services, stores, food services and Army sustainment nationally.
We provide operations and maintenance services to oil & gas assets in both the upstream and downstream sectors in the US for clients such as Chevron, Exxon Mobil and Valero
‘In recent years a considerable number of projects have not been finished, nor will they be finished. This disorder … is caused by the depressed prices frequently obtained for your works … these cut prices are illusionary, especially as a contractor who is working at a loss is like a drowning man who clutches at a straw. In the case of the contractor this means he does not pay his suppliers, cheats everyone he can, underpays his men, getting the worst, not only using the most inferior materials, but quibbling over everything and always begging forgiveness over this and that. Abandon.
Re-establish good faith, give the estimation of the work and not refuse a reasonable payment to a contractor who will fulfil his obligations. That will always be the best transaction you will be able to find’
‘In recent years a considerable number of projects have not been finished, nor will they be finished. This disorder … is caused by the depressed prices frequently obtained for your works … these cut prices are illusionary, especially as a contractor who is working at a loss is like a drowning man who clutches at a straw. In the case of the contractor this means he does not pay his suppliers, cheats everyone he can, underpays his men, getting the worst, not only using the most inferior materials, but quibbling over everything and always begging forgiveness over this and that. Abandon.
Re-establish good faith, give the estimation of the work and not refuse a reasonable payment to a contractor who will fulfil his obligations. That will always be the best transaction you will be able to find’
In 1683, Marshal Vauban (1633-1707), Chief of Fortifications for Louise XIV
Industry Study
Study of 100 contracts of varied nature across Australia
Multifaceted approach to what is a successful project including financial, stakeholder satisfaction, etc
Presumption by some was that it would reinforce a certain contract delivery model (ECI)
Engaged were Academics/Practitioners
First principles approach was adopted
The conclusions were not as “expected” for some
Industry Study
Primary cause of wasted effort
Impact
Significant Contributors
Turf
Protection
Poor
Briefs
Lack of
Trust
Process Poor
Client
Leadershi
p
Supply
Chain
Over-provision of functionality 14%
Change of scope 5-15%
Defect correction 5-10%
Design management 5-10%
Sacrificed material removed
from sites
5-10%
Administration
Meetings
Tendering (team selection)
Progress payments
5%
Inappropriate asset
management
10-30% Note: Wasted effort impacts overlap, and thus are not additive.
Source: Crow and Barda
Industry Study
The study concluded that only about 10% of projects in
Australia achieve excellence, and that on average these
projects create between 10% and 20% extra wealth compared with
projects developed along traditional lines. The most important
and widely recurring ‘success drivers’ for these projects were
found to be:
Client leadership (100% of projects)
Trusting relationships (96%)
Project initiation (78%)
Team selection (74%)
Value management (67%)
Stakeholder involvement (37%)
Understanding of client’s business (37%)
Open communication (29%)
Equitable sharing of risk (26%)
Client staff support (22%)
Integrated supply chain (19%)
Critical is
Competence of Client
Competence of Contractors
Ether by which they operate
How it is set up (Project Structure)
It is not
The form of contract in itself
Key Points
Early Contractor Involvement is highly
beneficial but it doesn’t necessarily mean
“contract”
You need of course to get the appropriate
agreement but the bigger question is
Who is leading on all sides and what is their
intent?
You know when you can stop
Engaging contractors early for their competence
Doesn’t mean a poor commercial outcome or probity
issues
Does mean that by maximising industry input you
maximise probability of success
Signing a contract is not the end. It’s the end
of the beginning and
Technical success is not enough. “How” is equal
to or maybe more important than “what” – The
Journey
Emerging Industry Trends
Many of the markets in which we operate are at the center of robust focus with respect to how services are delivered. Some key points;
1. Aggregation of services/departments/regions creating ‘mega-projects’
2. Inclusion of services historically delivered exclusively by the public sector further blurring the lines between government and industry and demanding a more integrated approach
3. Increased focus on the private sector providers as defacto participants in policy debates and a greater expectation to support beyond the technical
• Political - Media / Social
• Environmental - Compliance and Impact
• Stakeholders - Community
- Action groups
• Financials justification
• Cost/Benefit? Justification
• There is a greater public expectation of involvement
• Service delivery is also a vehicle for broader public policy initiatives
What is Occurring
Indigenous Participation
Our Indigenous Participation Program operates under a Global Indigenous
Framework
Broadspectrum has an “Elevated Reconciliation Action Plan” (RAP) and we
are one of only twelve companies in Australia that have an “Elevated RAP”
Currently our Indigenous
employment rate is 4.5
per cent compared to the
national Indigenous
employment rate of 1.7 per
cent
62 per cent of contracts
have either a contractual or
in kind obligation to
Indigenous participation
Broadspectrum has
launched its third RAP
with an Indigenous
employment target of 6.5
per cent
Broadspectrum’s Indigenous Advisory Board was founded in March 2006 as one the key initiatives of the Indigenous
Participation Approach. The Advisory Board is comprised of six members of Australia’s Indigenous community and six
Broadspectrum employees, including Managing Director and CEO, Graeme Hunt.
What are these other non-direct services issues
Policy initiatives e.g. Indigenous
Small medium enterprises
Support for Department for queries and justification
The strategic narratives ?
Industrial Relations
Training and development
What is needed beyond the technical skills ?
Understanding of broader policy issues and their intent
A recognition and the skills to understand the imperatives beyond the traditional approach such as the cost benefit case
A genuine approach to the implementation of “non technical” matters
Media skills including social media
Broader industry input to the framework of delivery
In Conclusion
Increased private outsourcing has changed the paradigm of what is a Government service. This combined with a more active and demanding public is shifting the level of transparency and accountable to all involved.
Quality, Efficient and Effective delivery will always be paramount. It is now the new given.
The other associated matters are increasingly important. To some more important.
The non-technical skills requires the same robust, disciplined approach that you would apply to say assets management.
This is just the beginning of change and we need to be pro-active, engaged and have a disciplined approach