and corporate success; ensuring that the commitment to change was embedded within the leadership succession process
6.8 Effective Computerization
A key part of our vision was either to buy off-the-shelf, or to build and implement quickly in-house, a number of information systems which would act as enablers of new and more effective ways of working. We had already had some success in using computer systems. Although we were fairly low on the learning curve, we were confident that we knew what ingredients were needed in the systems:
•Clear business objectives translated into department and individual performance targets
•Focus on value-adding work
•Best practice business model and workflow processes
•Good organization and execution of NECESSARY activities
•Visible performance measurement to:
•Show what is important
•Show where problems are
•Drive the improvement process
The benefits we were seeking, and were confident of getting, are shown in a simplified way in Figure 6.4.
Earlier we had investigated several computer implementations in a number of refining sites, including our own, in a search for the recipes for success. We found that most systems developed in the traditional way by IT departments had been relatively unsuccessful. Indeed that approach seemed to be a recipe for failure and produced systems which:
•Were large and over-specified
•Formalized traditional work methods
•Became substantially unchangeable when the designers left the site
•Had little positive impact on site culture
More successful projects were run by users, with the assistance of the IT group. They had considerable visible managerial support as well as senior user involvement and commitment. This approach became our model for all system implementations.
Figure 6.4 Benefits from a Computer System
We bought systems off-the-shelf whenever possible. When we had to build our own, we used the unconventional approach of prototyping. A modern programming language enabled a manager and system developer to sit together and quickly make a working system, albeit at the expense of computer efficiency. This “draft system” could be modified quickly, as many times as necessary to produce the required result. The use of prototyping produced effective systems quickly. It also brought some scathing remarks from the IT professionals in other locations. They called our approach “kitchen computing.” Further details are given in Appendix 6-A.
Success was brought about by focusing on the following key aspects of the systems:
•Small simple solutions to problems
•Focus on the key players who use the system most
•System consciously designed to effect an agreed transformation (e.g., to make planned work easy and unplanned work difficult)
•Presentation (screens) exert psychological impact on users
•Real time data, where necessary
•Fast implementation
The results of these efforts were:
•Cheap, simple systems which were dynamic, living, relevant.
•All significant actions of site personnel became visible.
•Poor performers in the workforce (whether engineers, supervisors, or fitters) were identified, embarrassed, and isolated.
•Psychological impact on site tradition, culture, attitudes, norms, etc.
6.9 Initiatives to Improve Performance
The four decisions in Section 6.6 acted as a framework for action. Large numbers of issues were identified. Equally large numbers of corrective actions were initiated and integrated to make step changes in performance. There were too many to cover in this book, but a number of the most significant issues and the related initiatives are explained in some detail in the chapters detailed below:
| • Chapter 8 | Benchmarking |
| • Chapter 10 | Integrating Inspection & Degradation Strategies |
| • Chapter 15 | Managing Surplus Staff |
| • Chapter 27 | Workflow Management |
| • Chapter 32 | Overtime Control |
| • Chapter 33 | Managing Contractors |
| • Chapter 44 | Pump Reliability |
6.10 Lessons
1. Making lots of money does not necessarily imply that you are a good performer (but it can hide the truth and dull your desire to improve).
2. Improvements in performance need to be managed by defining vision and strategies.
3. Misalignment, however well intentioned, must not be allowed.
4. A sense of urgency needs to be established; otherwise, nothing happens.
6.11 Principles
Significant events and changes trigger responses, which follow the bereavement curve. This is true for people at all levels.
Facts demonstrate reality and drive alignment in a way that opinions never can.
Reference
Kotter, J. P. 1996, Leading Change. Boston: Harvard Business School Press. ISBN-10: 0875847471.
Appendix 6-A
Rapid Creation and Use of Simple Cost-Effective Computer Systems.
6-A.1 Business Aims
The aim of each system should be to bring increased business benefits. Any other reason is probably invalid. If we need to improve the profitability of our plants, we need to improve reliability and availability, and to optimize the capital and revenue costs of our operations.
6-A.2 Effectiveness Of Information Systems
We studied a number of information system implementations in various locations in the company. Few opportunities had been grasped to use computer systems as enablers of new ways of doing business. We became convinced that many of these implementations had actually made things worse. Relatively user-friendly paper systems had been replaced by unfriendly computer systems. However, in a few locations, we saw how modern computer systems could be effective vehicles for significant improvements in performance and cost.
Because we had seen so many poor implementations, we sought the recipes for failure and success. These are shown in Sections 6-A.3 and 6-A.4 below.
6-A.3 Features of Poor Implementations
•Implementation run by IT group
•Benefits intangible
•Replicates old paper systems and past work procedures
•System is avoided by workers and largely ignored by management
•Almost unchangeable
6-A.4 Features of Most Successful Systems
•Project run by users with assistance of IT group
•Considerable visible managerial and senior user involvement and commitment
•Shared ownership between Operations and Engineering, etc.; the systems are seen as a site wide repository of data and a facility which can be used by all
•Clear focus on the benefits expected, how