Systems that serve, not stifle
A common problem with companies that have gone
through significant growth is bureaucracy. As the
organisation gets bigger, more layers of control are
often applied. The workplace can become overrun with
processes, procedures and forms that stifle agility and
flexibility and disempower people. After almost a decade
of continuous growth, McConnell Dowell found itself
moving in that direction and acted decisively to address
the situation.
McConnell Dowell has always prided itself on its ISO
accredited, integrated management system (McConnell
Dowell Management System or MMS). The MMS provides
the framework for achieving compliance with statutory,
regulatory, corporate requirements, and applicable codes
and standard. It specifies processes and procedures for
control of risks and hazards, and the impact of activities
on the environment. It also focuses on client satisfaction
and continual improvement. It has been used to effectively
manage most of McConnell Dowell’s projects, from the
small sub US$5 million projects through to the mega
pipeline developments like APLNG in Queensland (Figure 2)
and the Fourth Transmission Pipeline project in Thailand.
Recently, a comprehensive internal audit of the system
found a proliferation of duplicated, redundant and out
of date procedures. On reflection, through the recent
growth phase in Australia, the group’s systems had become
clogged and confusing.
In response, an initiative called ‘back to basics’ was
launched. This brought together functional teams from
across the business each tasked with reviewing, revising,
simplifying and unifying the group’s procedures. The teams
used the globally recognised Australian Business Excellence
Framework to provide a structure for the process and to
ensure a consistent approach was applied throughout the
initiative.
The results have been significant. McConnell Dowell
has achieved a 31% reduction in core MMS documentation,
removing a total of 527 documents. This reduction has
been achieved by consolidation, simplification or removal
of old, outdated and obsolete documents. In the same
period the group has also refreshed and loaded 88 new,
simplified documents into MMS for use. The group’s
focus moving forward is consolidation and streamlining
of its OHS procedures and safe work instructions, and to
generate standard operating procedures that are more
user-friendly, easier to implement in the field and improve
delivery quality.
In addition to the focus on MMS, McConnell Dowell
also mobilised a small business improvement team to
identify, analyse and improve existing business systems
with the aim of simplification, cost reduction and
quality improvement. So far this team has managed the
development of a standardised opportunity tracking
system and a unified HR system to manage employees
throughout the various stages of their careers with
the group. Both these system changes have delivered
significant paperwork reduction and enhanced
management transparency and control.
The ‘back to basics’ theme has really taken hold in
McConnell Dowell with all employees embracing the drive
to simplify its business, remove bureaucracy and focus on
what the group does best, which is delivering outstanding
projects for its clients and the community.
Summary
Change is inevitable and the ups and downs in the
construction sector are a part of life. The organisations
that survive and prosper are those that embrace some core
principles that they believe in and are proven to work,
regardless of the external environment.
For McConnell Dowell these principles involve
nurturing a strong, positive culture; ensuring the group’s
organisational structure is simple and making sure its
systems and procedures are empowering its people, not
hindering them with bureaucracy.
McConnell Dowell believes that these principles
can work for any business and recommend that
leadership teams across the industry do a health check
on their organisation against these three strategies. An
improvement in any or all of these areas, will deliver a
positive impact on your organisation regardless of where it
may be in the business cycle.
Figure 2.
MMS has been effectively used in mega pipeline
developments, such as APLNG in Queensland.
32
World Pipelines
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AUGUST 2015
