Read more case studies for examples of our work
Exploration and Development Strategy
Mega Project Cost and Schedule Risk Analysis
Managing Risk in a Complex Project
Deploying an Annual Strategy and Budget Process
Strategy for Hospital Network
Challenge
A leading research hospital system consisting of a central landmark hospital and several community hospitals recognized that it needed to create a strategic roadmap for the future. Its primary hospital was aging and needed investment, yet the strongest demographic growth was occurring in the outlying communities. Strategic investment needs appeared to outweigh the ability of the organization to fund all of the desired investments.
Solution
Macway Uhl worked with management of each hospital in the system to identify, and quantify, the costs and benefits of strategic investment options. These options including significant investments in hospital expansions, research programs, and new services. We conducted a series of workshops with the entire management team to discuss the full range of options and the financial challenges and objectives of each investment. In addition, various financing strategies were analyzed to support the recommended program
Results
- The Board of Directors approved a multi-billion dollar investment program and associated financing strategy
- Operational targets were established to monitor progress on the investment program and profitability performance required to support the strategy
- More than $500 million of additional debt was raised based on the strategic analysis
Exploration and Development Strategy
Challenge
A multi-national oil company faced drilling rig availability and capital constraints while developing an area in the deepwater Gulf of Mexico. Competitor facilities nearby and high geologic uncertainty increased the stakes for choosing the most cost efficient way to explore and develop a complex network of related prospects, discoveries, and existing infrastructure.
Solution
Macway Uhl worked with each project team to identify the set of options available, and integrated these into a holistic business model. The model allowed management to understand the tradeoffs among timing, capital exposure, and competitive position.
Results
- An overall business unit strategy was developed and execution is underway
- Management pre-ordered key long-lead equipment in order to have the option to rapidly exploit potential development scenarios
- Two project teams, previously working in separate ‘silos’ were combined and integrated based on the synergy opportunities revealed by the analysis
- The project results were used as the basis for scenario planning and future budgeting for the division of the company.
Mega Project Cost and Schedule Risk Analysis
Challenge
Developing one of its four highest visibility oil development projects, a major multi-national oil company recognized the need to establish strong alignment and communication with its four primary contractors, each of whom was responsible for a complex project scope and integration with the owner as well as other contractors.
Solution
Macway Uhl conducted a series of schedule risk workshops jointly with the major contractors and the client. In each of these workshops, the contractors own internal schedule was analyzed and assessed from a risk perspective by both owner and contractor. The resulting risk results were used to identify schedule opportunities and mitigations and manage these over the life of the project.
The overall program consisted of:
- Four individual risk sessions with each of the individual contractors. Each session was a joint effort of contractor and owner, helping to improve dialogue regarding the project objectives
- Development of an integrated risk analysis for the client across all four contracts. This analysis combined the results from all four major contractors into an overall project assessment, helping the client focus on the most critical of the contractor interfaces
- A quarterly re-assessment of overall project risk and progress, enabling the client to monitor progress and communicate a consistent message to management
Results
- The project is currently on track to meet its ambitious goal regarding first oil production
- Key contractual decisions were made on the basis of schedule risk analysis
- The project risk management model was communicated as a best practice throughout the company
Managing Risk in a Complex Project
Challenge
A U.S. based oil company along with its international partners were considering the development of a re-gasification terminal at a site with significant environmental and regulatory challenges. They needed to gain alignment with their partners on how best to tackle a variety of project challenges, on how to prioritize regulatory approval efforts, and on expectations for achieving these goals.
Solution
Macway Uhl conducted a schedule risk analysis with the major partners. Based on the deterministic schedule, regulatory and other risks were assessed, including the underlying drivers of each risk and their impacts on key milestones.
Insights were revealed about the likelihood of each activity delaying the project and risk management plans were developed. These included contracting philosophies, internal approval processes, and project execution strategies to both prevent and mitigate adverse outcomes.
Results
- The analysis revealed that state regulatory approvals actually were quite unlikely to drive the critical path of the project; instead, key civil design work needed additional focus as the primary schedule driver
- By illustrating the importance of pre-approval delays (which the analysis indicated represented 40+% of the schedule risk), the partners re-focused their efforts from construction risk assessment towards their own internal alignment and approval processes
Results
- The project is currently on track to meet its ambitious goal regarding first oil production
- Key contractual decisions were made on the basis of schedule risk analysis
- The project risk management model was communicated as a best practice throughout the company
Deploying an Annual Strategy and Budget Process
Challenge
A natural gas exploration and development company recognized that its strategic planning tools were broken. Bogged down by excessive detail and legacy systems, the system was cumbersome, resource intensive, and shed little insight on the strategic challenges facing the company.
Solution
Macway Uhl worked with the company to develop a template based strategic planning model tailored to the needs of executive management.
The strategic planning model:
- Was based on building blocks around the key strategic entities for the company, rather than around the raw data models
- Analyzed in real-time the strategic gaps the company faced, and the options for closing those gaps
- Fed directly into the annual budgeting process, eliminating redundant work and allowing technical staff to focus on the business rather than budgetary detail
Results
- A significantly streamlined annual planning and budgeting process that enabled the client to focus on strategic issues rather than budgetary mechanics.
Managing an R&D Portfolio
Challenge
A major international consumer health care organization recognized that its research project opportunities outstripped its ability to resource and fund them. Needing a more structured system for project prioritization and resource management, the company turned to Macway Uhl.
Solution
Macway Uhl through our affiliate Same Page Decisions deployed our PEDRA™ software platform to create a project evaluation and portfolio management system within weeks.
The system enabled the company to:
- Centrally store and track the key attributes of potential research projects, including technical risks, commercial potential and development costs
- Compare key metrics of the project portfolio across attributes such as launch date, brand, market category, and project type
- Track the evolution of projects over their lifecycle
Results
- Bottlenecks in clinical, regulatory, and analytical chemistry resources have been forecasted to allow for better resource management
- Projects have been prioritized based on overall business unit objectives
- Gaps have been identified in the portfolio and new innovation initiatives are being undertaken to fill those gaps