Organizational learning is a fundamental attribute of present day companies who wish to survive in the ambiguous ever-changing world of modern day economies. Companies who are able to learn and adapt quicker than the competition can leverage this attribute as a competitive business advantage. Traditionally, learning has tended to be more focused on training from those more expert and the implementation of known solutions to known problems.  A turnaround professional need not look far to see clearly that today’s problems are in fact much different from those in only the recent past. Solving these problems with the “Expert” systems of the past most likely will be limiting in some way and will certainly not be delivering the optimal strategy for the new reality.

Plant-based projects (or small projects managed by the plant) are largely unpredictable, and appear to management that they are inefficiently managed. Rarely does a plant-based project system satisfy all its direct and indirect customers. Many owner companies either neglect their plant-based project systems, or apply large project processes and metrics to manage them. Both positions result in frustrating inefficiencies at best, and at worst - significant operational risks. This paper describes the challenges facing plant-based projects and how they are distinct from those of large projects, and hence they require different metrics and a fit-for-purpose approach to effectively manage them.

In current day business environment where optimistic margins are expressed in single digits, the ability to predictably deliver competitive turnaround performance is essential. With few exceptions, the industry now includes turnarounds as an integral component of the short and long range business planning process. Today’s turnarounds are complex events that require entire plant cooperation and focus and involve work scopes that far exceed the traditional maintenance jobs of the “just do it” era.

High levels of complexity for capital projects and turnarounds in the oil and gas industries have historically led to some of the highest project losses. The application of traditional risk-models and management principles has proven insufficient to prevent a high rate failure in this sector. Empirical evidence collected for various oil and gas related projects and plant turnarounds suggests risk categories, which, if left insufficiently managed, can lead to severely negative project impacts. This paper presents the most significant risks identified by project and turnaround teams in the oil and gas sector, and presents tools and techniques to improve the effectiveness of risk management.

Turnaround outcomes are impacted by numerous factors with varying degrees of controllability.  Based on quantitative data collected from recent turnarounds, this paper examines and presents the drivers ("Leading Indicators") of turnaround performance and quantifies their effect on turnaround outcomes.  The paper introduces turnaround risk and readiness indices ("TRI") and their relationship to turnaround outcomes.  Further, the concept of a standardized turnaround scope index is explored.  Finally, benchmarks of best turnaround practices are shared.