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Mind the gap
Overcoming the gap in alignment, thinking and operating between engineering and project delivery functions
© 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
© 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
© 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
What is the gap?
© 2016 Korn Ferry. All rights reserved 6
Engineering Project Overruns and Overspends…
© 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
© 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
Closing the gap
© 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
© 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.
© 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
© 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.
© 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
© 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
Let’s recap
© 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
Questions?
© 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
© 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
Thank you