2013 – The Year of the OPEX PROGRAMME

1. 2013 – The Year of the OPEX PROGRAMME

2. Pipeline ManagementSuccess Statement and Key Business Values and Key Business Values Success Statement We track and respond to our future workload and collect strong market intelligence through proactive pipeline management. • Key Business Values • Predictability in revenue and earnings • Alignment with strategy • Early warning system • Increased market intelligence • Winning more with less

3. Pipeline ManagementDiagram 100% probability • Signed Contract • ERP / Work in Hand • Final negotiation • Proposal • Prequalification • Opportunity Abandoned, Lost or Cancelled 0% probability

4. Pipeline ManagementKey Requirements • Opportunities with fees > €15,000 are in the pipeline • All opportunities except immediate contracted projects or immediate contracted project extensions to be included in pipeline • Each country to use agreed opportunity status codes as a minimum • Each country to define and use an opportunity weighting model

5. Pipeline ManagementKey KPI’s and Governance • KPI’s • Hit rate in numbers • Hit rate in value • Pipeline • Weighted • Un-weighted • Growth • Group Growth Segments • Bidding Cost/Grontmij Fee • Ongoing Review • Governance • Pipeline composition • Pipeline quality • Trend in pipeline growth • Hit rate • Lessons learned • Go/No-go trends • Internal audits

6. Bid Decision ManagementSuccess Statement and Key Business Values Success Statement We win profitable projects in alignment with our strategy through efficient and effective bid decision management. • Key Business Values • Increase hit rate • Manage risk proactively • Reduce bidding cost • Strengthen commercial awareness • Optimise and focus the use of resources

7. Bid Decision ManagementDiagram Preliminary bid decision Formal bid decision Award acceptance Pursuit decision Revalidate bid decision Bid release decision Key terms review Bid release review Contract review Bid decision review Decision tree based on value and risk to determine the extent of bid decision questions and records. Need to have Nice to have

8. Bid Decision Management Key Requirements • Pursuit Decision • Intelligence about client, competitors and partners • Commercial, profitability and financial aspects • Alignment with strategy • Formal Bid Decision • Strategy to win and unique selling points • Detailed review of client and partners, financial aspects, liability and insurance, contract conditions, etc. • Risk assessment • Bid Release Decision • Detailed quality review of bid against tender requirements • Detailed commercial/profitability review • Contract Review • Detailed review of contract conditions and variances from bid Approval according to Delegation of Authority

9. Bid Decision ManagementKey KPI’s and Governance • KPI’s • Hit rate in numbers • Hit rate in value • Bidding Cost/Grontmij Fee • As for pipeline management • Ongoing Review • Governance • Delegation of Authority • Bid Decision Process • Internal audits

10. Project Budgeting and Follow-UpSuccess Statement and Key Business Values Success Statement We deliver profitable projects in a predictable manner through proactive project budgeting and follow-up. • Key Business Values • Early warning system • Improve base for scope negotiation and change management • Risk reduction • Improve budget and project management awareness • Learning from success and mistakes

11. Project Budgeting and Follow-Up Diagram Budget Tool (ERP) Monthly Cycle Project Change Risk Fund Write- down review Correc- tion Plan Project Review Fee, WIP, Cash, Debt, Predictability & Profitability Fee, WIP, Cash, Debt, & Profitability

12. Project Budgeting and Follow-UpKey Requirements • Budgeting Tool • Costs (salary, expenses and reimbursables) • Contract value and Grontmij Fee • Timescale • Project profitability • Risk fund • Follow-up PM • Continuous review of progress (percentage of completion), WIP, debt, risks and variances including preparation of correction plan, if relevant • Monthly budget update • Follow-up PE/Team Leader/BLD and BL Finance Management • Monthly monitoring of projects with large variations (WIP, debt, profitability) and correction plans • Monthly review of risks, variances and correction plans • Monthly controlling of large projects and quarterly controlling of all other projects

13. Project Budgeting and Follow-UpKey Requirements Problem • Project budget of €1M and schedule for 10 months. Budget to be split equally each month. After 4 months the project manager finds that only 30% of the work is finished and a total of € 0.5M spent. • Planned Cost (PC) = 0.4 * € 1M = € 0.4MEarned Cost Value (EV) = 0.3 * € 1M = € 0.3MActual Cost (AC) = € 0.5M • Actual Time Spend = 4 months • Cost Variance (CV) inM€ • CV = EV – AC = 0.3-0.5 = - 0.2CV% = 100 * (CV/EV) = 100*(-0.2/0.3) = 66% overrun • Scheduled Variance (SV) in months SV = EV – PC = 0.3- 0.4 = - 0.1 SV% = 100 * (SV/PC) = 100*(- 0.1/0.4) = 25% • At this rate this project will cost € 1.66M and take 13.3 months to complete. Change management action or a correction plan is needed to get back to agreed budgeted cost/time schedule. CV SV

14. Project Budgeting and Follow-UpKey KPI’s and Governance • KPI’s • Project level • Profitability • Percentage of completion • WIP and debt • Project portfolio level • #Loss making projects/# Projects • Value of write-downs/Turnover • Value of write-ups/Turnover • Value and trends for risk fund • Average profitability by segment • Ongoing Review • Governance • According to requirements • Escalated in line with • monthly review cycle • Internal audits

15. Project Changes and Additional WorkSuccess Statement and Key Business Values Success Statement We get paid for all work we do through professional and proactive management of project changes and additional work. • Key Business Values • Margin and revenue growth • Getting paid for all we do • Early warning system • Initiating project extensions • Professional and strong relationship with clients

16. Project Changes and Additional WorkDiagram Continuous PM review of possible and existing change with project team Align/agree scope and change process with Client Identify opportunities for additional work and sales approach (PM and PE) Ensure team awareness of scope and change process Pre-project meetings Project activities Identify possible change Assessment of possible change by PM Discuss with PE and agree on PE support going forward, when change value ≥ X Early warning to Clients – they hate nasty surprises Make decision based on assessment with PE Accept without payment – do not inform the client PM enters possible change in Change Register Accept without payment - inform the client Deliver written proposal to Client and negotiate (before we do work) Required: Annual Perception Survey Do work – get paid Client decision in writing (inform team accordingly ) Don’t do work – save time Unresolved – escalate to PE

17. Project Changes and Additional WorkKey Requirements • A written contract and a clear definition of scope must be is in place for the original job • Contract changes are approved according to the Delegation of Authority • PE to be actively engaged • A change register form to be used on all projects

18. Project Changes and Additional Work WorkKey KPI’s and Governance • KPI’s • Increase in project turnover • Each project • Project portfolio • Governance • As for project budgeting and follow-up • Review of change register • Follow-up on actual and • possible changes • Internal audits • Ongoing Review • Ongoing Review

19. Client Satisfaction SurveysSuccess Statement and Key Business Values Values Success Statement We continuously improve client understanding, satisfaction and loyalty through client satisfaction surveys and follow-up actions. • Key Business Values • Fast solution to issues or problems • Responding to future client needs • Increase market share • Fast learning • Good reputation

20. Client Satisfaction SurveysDiagram End ProjectSurvey Ongoing Project Survey Bid OutcomeSurvey Annual Perception Survey Nice to have Nice to have

21. Client Satisfaction SurveysKey Requirements • In general • Each country defines the questions they want to ask • All countries should use a common rating scale • One third to half of the questions should be common across all countries to provide opportunity for benchmark • Surveys to be managed centrally • Action plans on project and client level • Annual perception survey • To cover existing major clients or key accounts • Should be carried out through a combination of interviews and questionnaires • End project survey • To be done for all projects by questionnaire • Follow-up on unsatisfied clients to be documented

22. Client Satisfaction SurveysKey KPI’s and Governance • KPI’s • Av. Client Perception Score • Av. Client Satisfaction • Av. Client Loyalty • Governance • Info about client responses and project actions plans • Quarterly summary and trend reports • Tracking of improvement plans for key clients • Improvement plans on a continuous basis • Internal audits • Ongoing Review