Produced by:

Fundamental Objectives:Boot Camp for STO Leadership

Edward Zaun

•STO’s – Are they part of maintenance programs or are they projects?

• Why does it matter?

•What skills are necessary in the top STO leader roles?

•Where do you get/develop the necessary skill sets?

•STO Leadership Boot Camp curriculum

•Leveraging STO Leaders across the company

•Key points to take home

•Questions

Key Topics to Cover

Background

STO’s are a unique challenge:

• High intensity

• High complexity

• High uncertainty

• High risk

• Ample preparation time (usually)

• Low/no upside potential relative to objectives

Unique challenges require unique leadership

Slide 4

STO’s: Are they “Maintenance”, Projects, ...`Maintenance • Focus on resource and

process/activities managementoBudget managementoAcquiring, training, developing,

retaining skilled resourcesoBacklog managementoResource schedulingoContinuous ImprovementoMaintaining revenues/benefitso “Single Constrained”: Cost (per

period)

Project • Focus on delivering a specified product

o Defined producto Scope managemento Evolving plans and executiono Contractor managemento “Phase” schedulingo Acquiring new revenues/benefitso “Triple Constrained”: Scope, Cost,

Time

STO’s: … or Something Else!Focus is on:• Mission, command and control, discipline• Scope development and control based on objectives• Cross-functional integration• Contractor selection and control• Detailed planning and logistics• Detailed activity/resource scheduling • Risk identification and management • Significant “discovery work” during execution• Execution speed and quality• Restoring displaced revenues• Triple Constrained: Time, Cost, Scope

Planning is long relative to execution

STO’s:More like projects than maintenance• Triple Constrained: Time, Cost, Scope• Beginning, middle and end• Scope definition and control• Numerous stakeholder/contributor departments

Mostly not in the sphere of control of the STO Leader

• Transient resources• Considerable contracting

Bid development, execution, negotiation and administration

• Certain major business impacts

Risk is much higher in an STO than for a typical project

It Matters Because:

If you want to stack the deck for success, you must match the leadership skill set to your mission

What sort of leaders do STO’s require?

or

Or Both?

The STO ManagerTransforms a strategic objective into a

high-level plan• Establishes options for executive consideration

• Understands resource requirements

• Communicates and manages “upward” and “outward” very well

• Articulates mission and motivates “inward”

• Assembles a strong team and enables it for success

• “Mindful” of progress, status and deviation from plan

• Intervenes quickly and effectively when appropriate

The STO Execution LeadConverts the “Big Picture” into reality• Unwavering focus on executing the mission

• Develops the tactical plans and schedules

• Assembles and prepares the execution resources

• Establishes and upholds high standards for effectiveness

• Implements and utilizes efficient information gathering/distribution systems

• Confident, capable, timely decision-maker within authorized boundaries

• Upholds strict mission discipline in the field

• Very effective in “command and control” situations

Clearly, both skill sets are required for complex STO’s

• An STO Manager without tactical expertise must be augmented by a credible, experienced field superintendent

• An STO Execution Lead without project management expertise must be augmented by a credible, experienced cross-functional project manager

Most STO Managers have one or the other, but how many have both?

Even when an STO Manager does have both, is it practical to perform both roles on a complex event?

The STO Manager Skill RegisterAn STO Manager’s key management skills include:• Converting concepts to actions• Building a functional team out of personnel from different organizations• Producing results with/through others from diverse skill areas• Establishing performance/progress monitoring, evaluation, and reporting

systems• Cost management systems and methods• Contracting fundamentals (compensation strategies, commercial concepts,

negotiations, performance management, etc.)• Risk identification and management • Balancing multiple, competing goals/objectives/constraints• Managing interfaces with other departments• Managing/influencing/driving peers and managers• Communicating status and issues (good and bad, up and down)

The STO Manager Experience RegisterAn STO Manager gains management skills through:• Experience in:

a position of responsibility on a cross-functional project team budget management accountability a position of responsibility in an STO of equal or greater complexity managing interfaces with other departments and functions staff positions requiring influencing peers and managers balancing competing goals/objectives/constraints communicating status and issues (good and bad, up and down) leading people with technical/functional expertise beyond his/her own developing and executing contract strategies applying contracting fundamentals (compensation strategies, commercial concepts,

negotiations, performance management, etc.) performing risk identification and risk management activities (physical and

financial)

The STO Manager Education RegisterAn STO Manager’s project management education includes:• Training/Certifications in Project Management Fundamentals

Management of: Integration, Scope, Time (i.e. Schedule), Cost, Quality, Human Resources, Communications, Risk, and Procurement

Recognized Certifications: Project Management Institute (PMI) – Project Management Professional (PMP), Risk Management Professional (RMP)

• Training in Project Controls Fundamentals Planning, Scheduling, Cost Control, Analysis, and Reporting

o Project Management Institute (PMI) – Project Management Professional (PMP) o Association for the Advancement of Cost Engineering, International (AACEi)o Construction Industry Institute (CII)

• Training in Contracting Fundamentals Compensation strategies, incentives, terms and conditions, negotiation and

administration o Company or local university sponsored seminars

The STO Manager Education Register (continued)An STO Manager’s project management reading list includes: Turnaround Management (by Tom Lenahan) World-Class Turnaround Management (by A. Bobby Singh) PM Network (PMI monthly publication) Project Management Journal (PMI - peer reviewed research journal issued five times per year) Cost Engineering (AACEi Journal of Cost Estimation, Cost and Schedule Control, and Project

Management) Project Manager Competency Development Framework (PMI) Ad Hoc White Papers, Recommended Practices, Best Practices, etc. published by PMI, AACEi,

and CII Social media networks of peer professionals

The STO Execution Lead Skill RegisterAn STO Execution Lead’s key management skills

include:• Converting scopes to plans, plans to schedules, and schedules to actions

• Directing a diverse, transient, temporary work team

• Producing results with/through others

• Utilizing information from multiple sources to identify action areas

• Decisiveness

• Reacting rationally to challenges as they are encountered

• Mission discipline

• High work volume, intensity

• Willingness and ability to communicate unpleasant messages

• Sound judgment in engaging (or not engaging) higher management

The STO Execution Lead Experience RegisterAn STO Execution Lead gains management skills through:

• Experience in: positions of responsibility in planning and field executing several STO’s

of comparable or greater complexity, ideally at more than one location working in contract administration / contractor coordination roles extensive maintenance supervision (10+ years) supervising or managing capital construction work participating in bid pack development, request for proposal, bid evaluation,

negotiation and contract administration participation on a cross-functional project team balancing competing goals/objectives/constraints participating in risk identification and risk management activities

(physical and financial)

The STO Execution Lead Education RegisterAn STO Execution Lead’s project management education includes:

• Training/Certifications in Project Management Fundamentals Fundamental knowledge, terminology and processes of effective project

management Recognized Certifications: Project Management Institute (PMI) – Certified

Associate in Project Management (CAPM)• Training in Contracting Execution

compensation strategies, incentives, terms and conditions, negotiation and administration o Company or local university sponsored seminars

The STO Execution Lead’s Education Register (cont)

An STO Execution Lead’s project management reading list includes: Turnaround Management (by Tom Lenahan) World-Class Turnaround Management (by A. Bobby Singh) STO Manager’s Handbook (by Dick Ertl) STO Planning Handbook (by Dick Ertl) Managing Shutdowns, Turnarounds and Outages (by Michael V. Brown) Project Manager Competency Development Framework (PMI) Ad Hoc White Papers, Recommended Practices, Best Practices, etc.

published by PMI, AACEi, and CII

One approach to jump-starting STO Leadership development: Boot Camp

STO Management “Boot Camp” Intent Not to teach, but rather to

o Re-establish existing good practices that may have become relaxedo Drive consistency around strongest practices and shared needso Create an awareness in individuals of their own gaps and means to fill

those gapso Create a healthy dissatisfaction with the status quo as a catalyst for further

improvemento Reveal mentoring opportunities between strong and weak performance

areas

STO Manager “Boot Camp”

STO Management “Boot Camp” Approach Intense four day agenda Experienced leaders and “key lieutenants” only Expectation is that participants return to their sites “different than when

they left” Focus is on delivering proven practices and tactics

o shared, sound practices “Minimize Risk, Maximize Results”o fundamentals training only in weakest areas (e.g. financial risk management)

Instruction where defined practices and tactics exist Panel discussions where practices are experience driven

o including contractors where their experience is broad (e.g. productivity, quality)

Leveraging Top STO Leaders’ Skills

Top STO Leaders require scarce ‘raw materials’ and take many years to develop it’s not a “natural progression” for incumbents in supporting roles, so it must be designed tactical development is experience-dependent, and often painfully slow

Top STO Leader utilization is often cyclical within any one location leader development and benefits to the company both wane during low utilization periods

Models are emerging for moving top STO Leaders to complex work within organizations 18 month to two year assignments (like capital projects managers) Leadership of several simultaneous events (e.g. regional management) Utilization of key project controls personnel across multiple sites

Key Messages to Take Away:• To “Minimize Risk and Maximize Results” match the STO leader’s skills to

the task, and risks, at hand• STO’s are more like “Projects” than “Maintenance”

• Project management skills are not learned through traditional maintenance-centric experience• Specific education and work experiences drive the skill development• Training and job experiences can be designed to accelerate development

• Field execution management skills are largely based on work experience• Specific work and training experiences drive the skill development• Leveraging STO leaders across multiple events accelerates learning and value added

• STO management requires both project management and field execution management skill sets • High complexity STO’s will require separate people for each role

Questions:

Produced by:

Stephen Busick

Stephen.a.busick@conocophillips.com