‘Selection, education and development of project managers’

1. ‘Selection, education and development of project managers’ PMI – Rome Italy Chapter 10 April 2009 Prof.Dr. Hans L.M. Bakker Department Process & Energy TU Delft Regional Operations Manager Projects Shell 10 April 2009

2. Background 1985 PhD in solid state physics (VU Amsterdam) 1985 Research physicist Shell Research 1991 Head of international standardisation 1993 Facility manager Shell Amsterdam laboratory 1996 Maintenance manager Shell Singapore refinery 1999 Consultant Maintenance and Inspection 2000 Production unit manager Shell Pernis refinery 2002 Manager Global Project Services • Regional Operations Manager Projects EMEA • Professor Project Engineering and Management

3. Public opinion of project management

5. What is a project ?

6. Definition of a project A project is an endeavour in which human, financial and material resources are organised in a novel way to undertake a unique scope of work, of given specification, within constraints of cost and time, so as to achieve beneficial change defined by quantitative and qualitative objectives. (Turner, 1999)

8. Appraise Select Define Build Operate Project life cycle

9. Think before you act Rapidly Rapidly Low Low Decreasing Decreasing Major Major Influence Influence Influence Influence Influence Influence FID FID E E X X I I P P N N Define Appraise Appraise F F E E L L N N Select Select U U Define D D E E I I N N T T Mechanical Mechanical C C U U Completion Completion E E Front End Development Front End Development R R E E Operate Operate Build Build (EPC) (EPC) Project Project Project Project Construction Construction Handover & Handover & Definition Definition Planning Planning Start Start - - Up Up

10. Y2K 1980 1994 1957 Evolution of Project Management

11. Track record

13. Stage gate review point Stage gate review point Stage gate review point Stage gate review point Project review Appraise Select Define Build Operate Project life cycle Project management Management of projects

14. Basic Maintenance Engineering Procurement Construction Past Past Design Engineering Client Contractor / Supplier Client Client company Basic Procurement Engineering Construction Maintenance Design Basic Future Future Engineering Procurement Construction Maintenance Design Client / Contractor / Eng.Cy / Supplier Developments in the process industry Present Present Client / Eng.Cy Contractor / Eng.Cy / Supplier Contractor / Client

15. The project manager

16. Striking a balance Planning and Delivering Cost and Time Technology and People Entrepreneur and Liquidator Structure and Agility Customer and Team

18. Selection • PM: now a career • Graduates • Discipline engineers • Experienced hires • Exposure in all phases • Broadening assignments

19. Developing project managers

20. MEP Education Cover the most important aspects of project engineering and management in order to prepare university graduates to meet the challenges of the process industry

22. Project Academy Mission To provide a world- class, accredited, competence programme to develop project professionals capable of delivering sustained, top quintile performance in company’s capital investment programme.

23. Business Case for a Competence Development programme • Project delivery directly impacts production, reserves, value and reputation • Recognition of Project Management as a core skill • Talent shortage through demography, industry boom, contractor markets

24. Project Engineering Competence Ladder Project Director > 1 billion $ level 4 Project Manager < 1 billion $ SG 3 to 1 level 3 Senior Project Engineer < 0.5 billion $ level 2 Project Engineer Broadening > 10 million $ level 1 Deepening

25. PM Competence Development principles Objective: • to develop staff • to ensure consistency of approach • to create a continuous learning culture Competence growth is predominantly achieved by working ‘on-the-job’ Competence growth is staff AND line responsibility

26. Leadershipand Personal HSSEand SD ProjectManagement Contracting & Procurement Project Management Competences

27. Project Competence Assessment Process Step 1: What Competence Level? Step 2: What are the competence gaps? (assess against requirements – Job Competence Profiles) Step 3: What development actions shall be taken?

28. CER CER CER CER Assessment & Accreditation process Competence Level 1 Competence Level 2 Competence Level 3 Competence Level 4 New entries Annual Performance Cycle Assurance by discipline head Internal Assessment Project Engineer Internal Assessment Senior Project Engineer Internal Assessment Project Manager Internal Assessment Project Director Accreditation Accreditation Accreditation on hold IPMA D or PMI – PMP IPMA C

29. Integrated Competence Development Scheme • Create exposure: • in current role • next job options Delivering a Course portfolio focussing on Project Delivery competences Effective community net- work with a performing & sharing culture Assurance and reputation Mentoring: helping people develop their careers. Coaching: helping people to perform better in their jobs Critical Success Factor: Integration - within pentagon chapters - with business organisations/Line

30. Project Experience Navigator

31. Learning Portfolio - 2009 Toolbox Level 1 Level 2 Level 3 Level 4 Essentials of Project Management Foundation ORP e-module Contributing to Shell Projects Front End Development I ORP Week Project Execution and Start-up I Core Front End Development II Project Execution and Start-up II Mastering Complex Projects* Applying Project Controls Managing Project Controls CAPCO$T Introductory HSSE in Projects CAPCO$T Intermediate Focus Working with External Stakeholders EP Conceptual Estimating Effective Project Contracting Managing Project Risk Cost Engineering Project Management in the Front-End* Working in Project Teams Project Leaders in Role Blanchard Leadership & People Managing Project Teams TMS Leveraging Influencing Skills

32. Can project success be predicted ?

33. Teamwork

34. 1. 1. Create a sense of urgency 2. 2. Put together a guiding team Create visions and strategy 3. 3. 4. 4. Communicate for buy in 5. 5. Empower people 6. 6. Produce short- term wins 7. 7. Build momentum 8. 8. Nurture a new culture Management of Change

35. Three main messages

37. Managerial Learning: Time to reflect

38. Building relationships “ We all have to go in the same direction, haven’t we? “

39. Building relationship: seamless teams

40. Basic Maintenance Engineering Procurement Construction Past Past Design Engineering Client Contractor / Supplier Client Client company Basic Procurement Engineering Construction Maintenance Present Present Design Client / Eng.Cy Contractor / Eng.Cy / Supplier Contractor / Client Basic Future Future Engineering Procurement Construction Maintenance Design Client / Contractor / Eng.Cy / Supplier Developments in process industry

41. Project Management: ……… at best an emerging profession

42. Project Management Research

43. Main themes • Complexity of projects - Predictability • Managerial learning • Integration throughout the chain • Modular design and construction