Super-charged Project Partnering...Coordination / Pre Plan Review Tech requirements Align Expectations Revisit the site Mid Level Detailed Demos Technical Details Performance Reports/Documentation

Super-Charged Project Planning & Partnering

Jake Smithwick, PhD, FMP, SFP

Today’s Agenda

•Trust vs Confidence

•Effective Partnering•Sample meeting agenda & best practices

•Really understanding a “Roadblock” [CRISP]

Simplar

• Becoming a Client of Choice

• Becoming a Performance-Based Services Provider

• Other things:• Industry Benchmarking• Human Dimensions• Talent Development• Workforce Studies• Exploratory research• Policy & Regulations• Standards & Templates

InformationTechnologyNetworking

Data centersHardware

COTS software

ERP systems

Help desk

serviceseProcurement

FacilityManagementmaintenance

landscapingsecurity service

building systems

industrial moving

waste managementenergy

management

custodial

conveyance

pest control

Health Insurance/Medical Services

Manufacturing

Business /Municipal /University Services

Construction /Design /

EngineeringInfrastructure

MunicipalLaboratory

Education

Hospital

CorrectionsFinancial

Renovation

RepairMaintenance

Roofing

Specialty

DemolitionDevelopment

DBB

CMARDB

IDIQ

JOC

Low BidIPD

20+ Years | 150+ Owners

3,000+ Projects | $15+ Billion Procured

dining

multi-media rights

fitness equipment

online education

document management

property management

audiovisual

communications systems

emergency response systems

laundry

retirement fund

material recycling

bookstores

furniture

“Trust” is choosing to make something important to you

vulnerable tothe actions of someone else.

– Charles Feltman

Just because something is written in a contract does not make it so

Team-Vendor 1

Team-Vendor 2

Team-Vendor 3

Team-Vendor 4

High

Low High

LowWhich of these teams brings your project the most risk?

Proven Solution To Increase Odds of Success On ANY

Project:

Hire & Work w/ Experts (High Performing Individuals & Teams That

Actually Know How To Create Value & Mitigate Risk)

This Is Not As Simple As It Sounds

Experts vs Non-Experts

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Time

Start End

Time

Start End

When does Partnering Take Place?

13

PARTNERING MANAGEMENT

& METRICSSELECTION

What is the Clarification Period? (Proactive vs Reactive)

What we have seen when a Client Is Surprised…

• Regardless of who caused the surprise, many client’s immediately blame the vendor.

• Perception is that the vendor has hidden the issue and is now bringing it up to get more money

• Even if the surprise is not the vendors fault, the vendor-client relationship is strained

• Adversarial environment

What Could Cause a Surprise• Delivering something that doesn’t work

• Delivering something that isn’t what the client is expecting

• Delivering something that isn’t what the client needed

• Requiring the client to do something (that they cannot do)

• Requiring things from the client that they cannot provide

• Expecting that something will happen as planned

• Assumptions that we’ve made

• Changes that impact cost

• Changes that impact time

• Poor satisfaction

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How To Minimize Surprises

Partnering Requirements

1. Cost Verification

2. Align Expectations

3. Plan/Client Schedule

4. Risk Mitigation Plan

5. Critical Documentation/Metrics

How Can We Minimize Surprises

1. Perform a detailed cost verification• Detailed cost breakdown• Identify why the cost proposal may be significantly different

from competitors• Review big-ticket items• Review value added options• Identify how payments will be made and all expectations

regarding finances


2. Align expectations

What Does Aligning Expectations Mean?

Chance Are Our Expectations Aren’t As Extreme….

• It is the vendors responsibility to ensure that the client clearly understands what they are (and what they aren’t) delivering


2. Align expectations• Review and address all assumptions• Clearly identify the client’s roles and responsibilities• Technical review of product/system • Demonstrations if necessary• Identify any potential deal breakers• Clearly identify what is included and excluded in the proposal• Review any unique requirements with the client• Review interview Statements• Review and approve all contract terms and conditions


3. Preplan the project in detail• Coordinate the project/service with all critical parties• Revisit the sites to do any additional investigating• Prepare a detailed project schedule identifying critical

milestones• Coordinate with all suppliers or manufacturers• Prepare a detailed project work plan (transitioning, training,

safety, security, staffing, etc)


4. Identify and mitigate all uncontrollable risks & client concerns• Identify all risks or activities not controlled by the Offeror• Identify the impact of the risks• Identify what the client can do to mitigate the risks• Address how unforeseen risks will be managed


5.Critical Documents/Performance reports and metrics• All Critical Documents per project details• Review the Weekly Risk Report• Identify how the Offeror will track and document their performance • Provide an actual monthly/yearly performance metric report with

sample data• Identify how the client will document this service as a success

Clarification Requirements

Star

t

Very High Level

Major Client Risks/Concerns

Big Ticket Items/Deal Breakers

Verify Cost / Financial Info

Included in Proposal

Excluded from Proposal

Assumptions

Cost/Schedule Analysis

Pre Award Schedule

High Level

Client Risks/Concerns

Uncontrollable Risks

Response to All Risks/Concerns

Roles and Responsibilities

Value Added Ideas

Coordination / Pre Plan

Review Tech requirements

Align Expectations

Revisit the site

Mid Level

Detailed Demos

Technical Details

Performance Reports/Documentation

Project Documents / Deliverables

Fully Resource Loaded Work Plan

Review Interview Statements

Project Plan (staffing, communication, training, Implementation, organization change, business requirements)

Project Schedule

Contract

Fin

ish

Partnering Activities & Logistics

Notification Kick-Off Meeting

Final Meeting

Award1 2 3

Partnering Activities

< Partnering >


Final Meeting

Award1 2 3• Email notification

• Major client issues / concerns


Final Meeting

Award1 2 3

•Opportunity for both team (owner and vendor) to openly discuss the project, scope, requirements, and expectations

•Determine if something ‘major’ has been missed or overlooked

Who Should Attend

• All critical members that will be involved in project/service

• Client Team: Procurement Officer, Facility Management, key members of the client user group, SME’s, etc.

• Vendor Team: Project Manager, primary lead, key operations personnel, technical lead, etc.

In-Person Meeting

• Highly recommended to have an in-person meeting with critical personnel

• However, it is also acceptable to utilize a teleconference or video conference for those that can’t be there in person

• Brief presentation

• 10-15 slides

• Review agenda and key talking points

Kick-Off MeetingAgenda

Kickoff Meeting Agenda

1) Project Approach

2) Major Client Concerns

3) Cost Proposal

4) Roadblocks

5) Clarification Timeline

Meeting Outcome

• Both parties agree that there are no major roadblocks/obstacles

• Vendor provides a timeline for the rest of the clarification period (the Detailed Planning)

#1) Project/Service Approach

•High level ‒ Major tasks

‒ Goals

‒ Requirements

•5-10 Minutes

#2) Major Client Concerns

• Vendor should clearly address any major concerns (or deal-breakers) that have been identified and provided by the client.

M a j o r C o n c er n s

!

M a j o r C o n c er n s

!

If There Are Deal Breakers…

Star

t

Very High Level

Clarify Proposal

Major Client Risks/Concerns

Big Ticket Items/Deal Breakers

Verify Cost / Financial Info

Included in Proposal

Excluded from Proposal

Assumptions

Cost/Schedule Analysis

Pre Award Schedule

High Level

Client Risks/Concerns

Uncontrollable Risks

Response to All Risks/Concerns

Roles and Responsibilities

Value Added Ideas

Coordination / Pre Plan

Review Tech requirements

Align Expectations

Revisit the site

Compensation Model

Benefits Projections

Mid Level

Detailed Demos

End Client Site Visits

Technical Details

Performance Reports/Documentation

Project Documents / Deliverables

Fully Resource Loaded Work Plan

Review Interview Statements

Project Plan (staffing, communication, training, Implementation, organization change, business requirements)

Project Schedule

Contract

Fin

ish

STOP

Focus On The Major Things First

• Purchasing a new SUV

• How many full-size people can fit?

• The MPG or capacity of the gas tank?

• The type of safety equipment?

• The type of headlights we getting?

• Darkness of the tint?

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• Purchasing Uniforms for Troops

– Durability - How long the material will last?

– Location of where material is made?

– How many pockets the uniform has?

– The ability of the uniform to be warm/cold?

#3) Cost Proposal

• Review the cost proposal

• Focus on the high level or largest deliverables

• Be prepared to clarify the costs in detail if asked by the Client

Budget

Cost Proposal

Example 1 – Hospital Roof

NO CRITERIA FIRM A FIRM B FIRM C FIRM D FIRM E FIRM F

1 Total Cost ($) $1.05M $1.43M $0.92M $0.87M $0.95M $1.22M

2 Proposed Duration (Days) 85 200 180 210 112 180

3 Interview Rating 6.5 8.8 6.5 5.4 5.0 6.9

4 RAVA Plan Rating 5.9 6.6 5.3 5.6 3.6 6.4

5 Value of Warranty 18 15 4 0 4 4

6 PPI - Contractor 1-10 9.9 9.5 9.3 9.6 9.4 9.8

7 PPI - Contractor Max Age 28 18 11 13 4 21

8 PPI - Contractor Avg Age 20 16 4 12 1 3

9 PPI - Contractor Not Leaking 100% 100% 100% 100% 100% 100%

10 PPI - Contractor # Surveys 9 7 13 2 14 24

11 PPI - Manufacturer 1-10 10 10 10 1 10 10

12 PPI - Manufacturer Max Age 21 18 19 1 19 19

13 PPI - Manufacturer Avg Age 14 12 5 1 5 5

14 PPI - Manufacturer Not Leaking 100% 100% 100% 1% 100% 100%

15 PPI - Manufacturer # Surveys 12 8 10 1 10 10





4 RAVA Plan Rating 5.9 6.6 5.3 5.6 3.6 6.4


6 PPI - Contractor 1-10 9.9 9.5 9.3 9.6 9.4 9.8





11 PPI - Manufacturer 1-10 10 10 10 1 10 10









4 RAVA Plan Rating 5.9 6.6 5.3 5.6 3.6 6.4


6 PPI - Contractor 1-10 9.9 9.5 9.3 9.6 9.4 9.8





11 PPI - Manufacturer 1-10 10.0 9.9 9.7 1.0 9.7 9.7









4 RAVA Plan Rating 5.9 6.6 5.3 5.6 3.6 6.4


6 PPI - Contractor 1-10 9.9 9.5 9.3 9.6 9.4 9.8










93 46 45 44 43 36





4 RAVA Plan Rating 5.9 6.6 5.3 5.6 3.6 6.4


6 PPI - Contractor 1-10 9.9 9.5 9.3 9.6 9.4 9.8










Example 1 – Hospital Roof93 46 45 44 43 36





4 RAVA Plan Rating 5.9 6.6 5.3 5.6 3.6 6.4


6 PPI - Contractor 1-10 9.9 9.5 9.3 9.6 9.4 9.8










• How will they service this roof since they are not located in Louisiana?

• How can they minimize risk if they have never worked on an Army facility?

• How can they guarantee that they will minimize the risk of smell coming into the hospital facility?

• What about getting all of the specifications of the roofing system?

Quality of Presentations

Do We Really Need To Do It…

• Common client statements:– We understand what they are going to do

– We are all on the same page

– We don’t have any issues

• What happens if you leave?

• What happens if the vendor PM leaves?

#4) Roadblocks

• The Vendor should consider the major issues, concerns, challenges, or risks that can be caused by the owner or items not within the vendors control.

#4) Roadblocks

• The Vendor should consider the major issues, concerns, challenges, or risks that can be caused by the owner or items not within the vendors control.

• Identify some ideas/suggestions that the owner can take regarding these issues

• The vendor should clearly identify what actions or decisions are needed from the client during the project/service

#5) Clarification Timeline

• Timeline/Schedule for the Partnering

• Identify who (specifically) the vendor needs to talk to

• When the vendor would like to meet with the owner/individuals

• What information or decisions are needed

< Detailed Planning >

Meeting Outcome

• Both parties agree that there are no major roadblocks/obstacles

• Vendor provides a timeline for the clarification period

Partnering → Detailed Planning


Final Meeting

Award1 2 3< Detailed Planning >

Structure of Successful Partnering

• The vendor and client should be collaborating and coordinating

• Do not work in ‘silos’

• Open and regular communication

Clarification Items

• 1) Cost Breakdown• 2) Schedule – Project Schedule & Client Schedule• 3) Align Expectations • 4) Major Concerns or Challenges• 5) Coordination• 6) Critical Documentation• 7) References• 8) Other “Deep Dive” Topics• 9) Metrics• 10) Contract & Agreement

University of Alberta

• Background:• Pioneers of XPD in Canada• Partnered in 2011• Began with Janitorial Services

• Impact:• Higher performance• Higher accountability• Transforming organization• Transitioned from ASU

Particle Accelerator / Cyclotron Facility(University of Alberta)

• SCOPE: Renovate an existing curling-rink facility into a specialized radiopharmaceuticals research facility that houses a 24MeV cyclotron. The cyclotron will be housed in a specialized vault that will house the particle accelerator. The facility will produce and provide a steady supply of isotopes (including clinical-quality technetium-99m - isotope used for 80% of nuclear medicine diagnostic procedures) used to help patients with cancer, cardiac, neurological and other diseases.

• BUDGET: $30 Million

Specialized Equipment and Vault

Proposals

• 4 contractors proposed

• Best-valued contractor was not the lowest or highest bid, but was 5.3% below average cost

• Best-valued contractor had a technical proposal that was rated 81% higher than the competitors

During the Procurement

• Prior to award, during the Clarification preplanning and risk management process, the DB contractor identified several critical issues with the Users existing plan (including key project dimensions).

• The DB contractor brought a crew that performed a detailed analysis and site-investigation of the current/existing facility.

• The contractor found that the drawings were off by several meters in all directions

Impact of Best-Value Planning

• The contractor caught and identified the issue prior to award

• This allowed the owner to address and resolve the issues prior to awarding the contract

• In the traditional procurement approach, auditors determined that these issues would not have been caught until 5 months into the project (and would have resulted in significant delays and cost increases )

Project Results

• Performance:• 0% project delays

• 0% cost increases

• 10 out of 10 customer satisfaction rating

“Through this unique approach, the contractor was able to save

14-18 months in schedule and

$8-12 Million in cost (when compared with the traditional approach)”

- Hugh Warren | Executive Director Operations & Maintenance at University of Alberta

– as measured by the governmental Auditors Office.

Contractor Feedback

• “Change in the owner approach made the biggest impact. This made the project more enjoyable and led to the success.”

• Comparison 23 vs 214 change orders

Clear and Logical Responses

Guide Us / Help Us See & Understand

If The Vendor Has Difficulty Explaining Things Simply Or Making This Project

Seem Complex….

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“If you can't explain it simply, you don't understand it well

enough!”

Project “Tricks” Don’t Work

What’s next

• Learning effective partnering TAKES TRAINING

•Pre-planning is difficult… but it is a skill that can be learned

•Our goal is to minimize surprises (on-time, on-budget, high quality)

[email protected]

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