Business Analysis All shook Up

Karin Lehmann Sonia Chaker

• Before….

Video by Lukas Kaupenjohann

September 4th 2010 – 4:35am

Video by Noel Leeming

Canterbury

Earthquake

Recovery

Authority

FILE :

DRAFTING CHECKED

DRAWN

APPROVED

FIG. No. REV. PROJECT No.

APPROX. SCALE (AT A3 SIZE)

CERA CANTERBURY EARTHQUAKE RECOVERY

Land Damage Map

NTS

0

.

Notes: Low-resolution aerial photos sourced from Google Earth (Copyright: 2009). High-resolution aerials provided by New Zealand Aerial Mapping (February 2011) Property boundaries provided by Christchurch City Council

Land Damage After 4 September 2010

!

Approx Scale 1:50,000 0 500 1000 1500 2000 2500 (m)

Legend

Areas of observed liquefaction

Port Hills area

Canterbury

Earthquake

Recovery

Authority

FILE :

DRAFTING CHECKED

DRAWN

APPROVED

FIG. No. REV. PROJECT No.

APPROX. SCALE (AT A3 SIZE)

CERA CANTERBURY EARTHQUAKE RECOVERY

Aggregated Building Damage Map

Building Damage After 4 September 2010 NTS

0

.

Notes: Low-resolution aerial photos sourced from Google Earth (Copyright: 2009). High-resolution aerials provided by New Zealand Aerial Mapping (February 2011) Property boundaries provided by Christchurch City Council Building damage based on data provided by AMI, Ansvar, EQC, FMG, Housing New Zealand, IAG, Lumley, MAS, Tower and Vero

!

Approx Scale 1:50,000 0 500 1000 1500 2000 2500 (m)

Legend

Repairs > $100k (houses which had significant damage but could be economically repaired

Rebuilds (houses which are beyond economic repair)

Legend

Repairs > $100k (houses which had significant damage but could be economically repaired

Rebuilds (houses which are beyond economic repair)

Confirmed rebuilds (houses which were confirmed to be beyond economic repair)

Christchurch City Council (CCC) set up the Infrastructure Rebuild Management Office (IRMO) to fix “Horizontal Infrastructure”:

• Roads

• Waste Water Systems

• Fresh Water Systems

• Storm Water Systems

February 22nd 2011 – 12:51pm

Material sourced from the Ministry of Civil Defence and Emergency Management(MCDEM) Christchurch Earthquake Footage which is licensed by MCDEM for re-use under the Creative Commons Attribution 3.0 New Zealand Licence.

Canterbury

Earthquake

Recovery

Authority

FILE :

DRAFTING CHECKED

DRAWN

APPROVED

FIG. No. REV. PROJECT No.

APPROX. SCALE (AT A3 SIZE)

CERA CANTERBURY EARTHQUAKE RECOVERY

Land Damage Map

NTS

0

.

Notes: Low-resolution aerial photos sourced from Google Earth (Copyright: 2009). High-resolution aerials provided by New Zealand Aerial Mapping (February 2011) Property boundaries provided by Christchurch City Council

Land Damage After 4 September 2010

!

Approx Scale 1:50,000 0 500 1000 1500 2000 2500 (m)

Legend

Areas of observed liquefaction

Port Hills area

Canterbury

Earthquake

Recovery

Authority

FILE :

DRAFTING CHECKED

DRAWN

APPROVED

FIG. No. REV. PROJECT No.

APPROX. SCALE (AT A3 SIZE)

CERA CANTERBURY EARTHQUAKE RECOVERY

Land Damage Map

Aggregated Land Damage After 22 February 2011 NTS

0

.

Notes: Low-resolution aerial photos sourced from Google Earth (Copyright: 2009). High-resolution aerials provided by New Zealand Aerial Mapping (February 2011) Property boundaries provided by Christchurch City Council

!

Approx Scale 1:50,000 0 500 1000 1500 2000 2500 (m)

Legend

Areas of observed liquefaction

Port Hills area

Canterbury

Earthquake

Recovery

Authority

FILE :

DRAFTING CHECKED

DRAWN

APPROVED

FIG. No. REV. PROJECT No.

APPROX. SCALE (AT A3 SIZE)

CERA CANTERBURY EARTHQUAKE RECOVERY

Aggregated Building Damage Map

Building Damage After 4 September 2010 NTS

0

.

Notes: Low-resolution aerial photos sourced from Google Earth (Copyright: 2009). High-resolution aerials provided by New Zealand Aerial Mapping (February 2011) Property boundaries provided by Christchurch City Council Building damage based on data provided by AMI, Ansvar, EQC, FMG, Housing New Zealand, IAG, Lumley, MAS, Tower and Vero

!

Approx Scale 1:50,000 0 500 1000 1500 2000 2500 (m)

Legend

Repairs > $100k (houses which had significant damage but could be economically repaired

Rebuilds (houses which are beyond economic repair)

Legend

Repairs > $100k (houses which had significant damage but could be economically repaired

Rebuilds (houses which are beyond economic repair)

Confirmed rebuilds (houses which were confirmed to be beyond economic repair)

Canterbury

Earthquake

Recovery

Authority

FILE :

DRAFTING CHECKED

DRAWN

APPROVED

FIG. No. REV. PROJECT No.

APPROX. SCALE (AT A3 SIZE)

CERA CANTERBURY EARTHQUAKE RECOVERY

Aggregated Building Damage After 22 February 2011 NTS

0

.

Notes: Low-resolution aerial photos sourced from Google Earth (Copyright: 2009). High-resolution aerials provided by New Zealand Aerial Mapping (February 2011) Property boundaries provided by Christchurch City Council Building damage based on data provided by AMI, Ansvar, EQC, FMG, Housing New Zealand, IAG, Lumley, MAS, Tower and Vero

!

Approx Scale 1:50,000 0 500 1000 1500 2000 2500 (m)

Aggregated Building Damage Map

Legend

Building Damage Ratio (Repair cost estimate / replacement cost)

0% - 20%

20% - 40%

40% - 60%

60% - 80%

80% - 100%

100% (rebuild because it is uneconomic to repair the building)

Legend

Building Damage Ratio (Repair cost estimate / replacement cost)

0% - 20%

20% - 40%

40% - 60%

60% - 80%

80% - 100%

100% (rebuild because it is uneconomic to repair the building)

‘Business As usual’ approach just isn’t going to cut it…. • $2.5 Billion worth of damage to Horizontal Infrastructure • 5 Years to fix • Need for prompt response to extensive damage • Uncertainty of scope – extensive investigation required to

quantify • Likelihood of on going seismic activity – associated scope

change • Assets owned by more than one party – “whole of

Government” approach required • Need to maximise ‘Value’ and provide transparency and

visibility of cost

• Create a purpose built organisation to deliver infrastructure

• An alliance of public and private organisations • A $500 million a year business over 5 years

Solution:

Define the Solution

Establish the Architecture

Implement Operationalise

(Deliver results!)

Delivery Teams

Integrated Services Team (IAT)

Mgt Team

People of Christchurch and New Zealand

Board

City Care Downer Fletchers Fulton Hogan McConnell Dowell

Consultants

Design

CCC

Collaboration Competition

So what’s so different about SCIRT?

Clear common Vision Clear measureable KRAs/KPIs which drive the required behaviours

So what’s so different about SCIRT?

• No Win-Lose situation – all parties either win together or lose together

• Clear vision –

• Estimation (TOC) process managed within the integrated team • Vision of a legacy beyond the rebuild

Creating resilient infrastructure that gives people security

and confidence in the future of Christchurch

Timeline…. March 2011 – Alliance concept conceived 6 weeks later (4th May 2011) – Stronger Christchurch Infrastructure Rebuild Team (SCIRT) formed and contract signed 9th May – 1st SCIRT employee (Duncan Gibb – General Manager) 4th July – Temporary site (15 people to 60 People) 31st August 2011 – Transition of IRMO to SCIRT July to October - Office Build (move in 9th October) End of October – 245 people fully productive in new office

EQ

Alliance contract Temporary office

245 personnel in new office

First teams move to new office

Process Analysis work

From This: To This:

To This:

In 12 Weeks!!!

Define the Solution

Establish the Architecture

Implement

Operationalise (Deliver results!)

Commercial Agreement Drivers, Values, Mindsets, Behaviours

BAs!

Organisational structure Programme of projects – define lifecycle Systems

Enable to ability to deliver results

Projects being delivered

Define the Solution

Establish the Architecture

Implement Operationalise

(Deliver results!)

Processes and Systems

The Challenge: •Timeframes! •Develop Processes & Systems WHILE work being carried out •26 different organisations come together:

• Different cultures • Different language • Different processes & systems

•Create and document all processes – 2 BAs, 4 months •Visibility •‘Extreme Agile’ – changing environment and priorities •Aftershocks!

Project Definition

Concept

Detailed Design

Construction

Handover

Strategy and Asset Assessment

Project Life Cycle • Create certainty in changing context

Project Definition Project Definition Manager

Professional Services Manager

CCC, NZTA, Delivery Team

Alliance Manager

Project Allocation Design

Business Systems Manager

Commercial Manager

Professional, Services, VFM

Alliance Manager

Concept Design Design Manager Professional Services Manager

Asset Owner, ECI Delivery Manager

Detailed Design Design Manager Professional Services Manager

ECI

TOC Estimating Manager Commercial Manager

VFM, ECI Alliance Manager Delivery Manager

Project Allocation Construction

Business Systems Manager

Commercial Manager

VFM, Delivery Managers

Alliance Manager

Construction Project Co-ordinator Delivery Manager Commercial Team, VFM

Handover Business Systems Manager

Commercial Manager

CCC CCC

Practical Completion Alliance Manager Alliance Leadership Team

CCC

Project Completion Alliance Manager Alliance Leadership Team

CCC

Phase Responsible Accountable Consulted Informed Gateway

1

2

6

3

4

5

0

7

8

9

Some efficiency achievements….

Project lifecycle – from concept to physical works – Most construction projects = 2-3 years SCIRT = 6-7 months Annual revenue of $450 Million - month end processing carried out by 3 people in 3 days Monthly board reports – done in a day…. Productive teams hitting the ground running from day 1 $40 Million a month of Design work pumped out

How were efficiencies achieved? •Insist on common language •Negotiating with the client and internally about what is required – what is ‘just enough’, what is ‘must have’ •Pushing whatever possible to as early in the process as possible •Building the systems to fit the processes – one source of truth •Identifying the usual ‘sticking points’ and figuring out how to eliminate them… •Do things once

How were efficiencies achieved?

The vision – Lived and measured

BA Mandate: • Design and document all the processes • Gather the system integration requirements • Business Intelligence tool configuration and reporting

requirements • Process Training

Techniques

The Enterprise BA: BABOK =

Or for us…..

What we did…

BA value proposition…

Change – Transformational rather than incremental

A storm is an opportunity for a rainbow…

PASSION