2015 PMI SCC GreenPM in the process groups - Alison C Holder

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INTEGRATING GREEN-PM INTO THE PROJECT

MANAGEMENT PROCESS GROUPS

Presenter: Alison C. HolderDate: September 22, 2015

8TH BIENNIAL INTERNATIONAL PROJECT MANAGEMENT CONFERENCEProject Management for a Sustainable World:

Economic, Environmental and Social Sustainability for Successful Project Delivery

Dr Joao Havelange Centre of ExcellenceMacoya, Trinidad

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Presenter’s Bio



ALISON C. HOLDER, PMP, MSc. BSc. (hons), Strategic and Project Management Specialist, has been involved in entrepreneurial start-ups as well as medium sized firm turn around projects. She was the Caribbean agent for Heinz-Orieda and for Fortessa Inc. Ms. Holder was the project manager for a direct marketing program for Scotiabank in Barbados, Jamaica and the Virgin Islands that required the development and execution of a training series for staff. She is the Managing Director of Ten Step Eastern Caribbean Ltd; the regional office for Ten Step Global – a leading project management training and consulting firm. Currently providing project management training for the IDB steering committees in Barbados.In her research consulting practice, Alison Holder has facilitated stakeholder consultations as an input to the development of strategic plans. Most recent strategic plans were:

• Barbados Competiveness Strategy and Action Plan (consortium)• Revitalization Strategy for the Caribbean Spa and Wellness Association• Barbados Coalition of Services Industries’ Quality Service Mark Framework • A Study of the Professional Services Sectors of Barbados identifying the

Service Sector Skills for the Future • DFID and Colleges and Institutes Canada Caribbean Education for

Employment Alison Holder is the current President of the Project Management Institute – Barbados Branch.

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Presentation Objectives

• Introduce the participants to Green PM• Articulate the foundations of Green Project

Management• Highlight the integration of Green PM into the

process groups• Case Review: How Green PM could have been

used in the BP Deep Water Horizon Project• Plenary



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Introduction to Green PM

• Environmentally friendly and sustainability were considered were voluntary

• Enron’s fall and BP’s oil spill, caused focus to be given to sustainability, ethics, social responsibility and supply chains

• Corporate sustainability starts with a company’s value system

• It means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption



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The challenge for regional project managers is that many of the organizations lack a well-defined and easily implementable Environmental Management System (EMS)



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Foundations of Green Think

“GreenPM” (green project management), coined by Tom Mochal and Andrea Krasnoff

“GreenPM” or green think supports ISO 14000 standards through project management processes



• ISO 14001:2004 sets out the criteria for an environmental management system and can be certified to. It maps out a framework that a company or organization can follow to set up an effective environmental management system.

• Sustainability is the ability to use a resource without it being completely used up or destroyed. (Merriam Webster)

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Integrating into the process groups



Client company or sponsor prioritize sustainability in approval criterion for projects

Business cases would have to include a section that addresses the environmental value of the project

Stakeholders should include an environmental expert in the particular industry

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PLA

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PLA

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ING • Gathering of requirements requires the inclusion of

sustainable practices in the elicitation methods thresholds for avoiding environmental hazards or exploiting opportunities to acquire a measure of sustainability

• Defining the activities, the work methods and quality assurance aspects should specify the environmental elements

• Communications plan is a great functional area in which to incorporate green-pm particularly in the age of cloud computing and video chats that can reduce the carbon foot print

• Risk responses developed should consider all implications to environmental safety and a preference for eco-friendly risk responses

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EX

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NG • reduced the cost of gathering work performance data by

implementing an integrated system software that utilizes tablets as the source point. greater efficiency as the information needed to make decisions is being received and analysed in near real time

• conducting procurement, the project manager can easily source a listing of green compliant suppliers and their agents

• sensitizing the project team on the how to perform responsible purchasing

• Risk responses developed should consider all implications to environmental safety and a preference for eco-friendly risk responses

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MO

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OL Integrated change control is one of

the places where GreenPM can occur since the environment can be factored into every change discussed in integration change control

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CLO

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G Formal project closure is an area often overlooked for many projects. With GreenPM, environmental learnings are evaluated. Ultimately, there could be a process improvement leap based on these findings

178TH BIENNIAL INTERNATIONAL PROJECT MANAGEMENT CONFERENCE

Project Management for a Sustainable World:Economic, Environmental and Social Sustainability for Successful

Project Delivery

A vital consideration for project sponsors and managers is: can they really afford not to adopt a GreenPM approach?

This imperative can be evidenced by excerpts from the January 29, 2007 article “Beyond the Green Corporation” by Pete Engarido.



Project Delivery

“Serious money is lining up behind the sustainability agenda. Assets of mutual funds that are designed to invest in companies meeting social responsibility criteria have swelled from $12 billion in 1995 to $178 billion in 2005, estimates trade association Social Investment Forum. Boston's State Street Global Advisors alone handles $77 billion in such funds. And institutions with $4 trillion in assets, including charitable trusts and government pension funds in Europe and states such as California, pledge to weigh sustainability factors in investment decisions.”

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BP DEEPWATER HORIZON & GREEN

PM

CASE REVIEW OF MITSloan Management Report





Project Delivery

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History of Safety and Sustainability

Failures



March 23, 2005 when an explosion at BP’s Texas City Refinery killed 15 people and injured another 180, and resulted in financial losses exceeding $1.5 billion.The James Baker Investigative Report

determined that it was company’s cut backs on maintenance and safety measures at the plant in order to curtail costs that cause the explosion.In March 2006Alaska’s Prudhoe Bay, where

more than 200,000 gallons of oil poured into the bay from a corroded hole in the pipeline, making it the largest oil spill in Alaska.Inspectors found that several miles of the

steel pipe had corroded to dangerously thin levels. Alaskan state regulators had been warning BP since 2001

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Better People Solution Switch

CEO’s



• Dramatically shrank the Alternative Energy division

• Reduced headcount at both managerial and lower staff levels.

• Desired to transform BP’s culture to one that was less risk averse; he believed that there was extreme cautiousness. “Assurance is killing us,” he told U.S. staff in September of 2007.

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Management Pressure: Behind

Schedule



1. The decision to use a well design with few barriers to gas flow;

2. The failure to use a sufficient number of "centralizers" to prevent channelling during the cement process;

3. The failure to run a cement bond log to evaluate the effectiveness of the cement job;

4. The failure to circulate potentially gas bearing drilling muds out of the well;

5. The failure to secure the wellhead with a lockdown sleeve before allowing pressure on the seal from below.

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BP’s approach vs. Green-PM



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BP’s approach vs. Green-PM



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Implications for the Caribbean



The National Wildlife Federation’s report, “Five Years and Counting – Gulf wildlife in the aftermath of the Deepwater Horizon disaster”, deems the environmental “blowout” as been catastrophic on the ecology and the businesses.The American Sport Fishing Association reports that prior to the blowout, the Gulf region benefited from US$41 billion in revenues from recreational fishing and the sector employed 300,000 persons.

• 5 years after the BP Deepwater Horizon well blowout, the company has spent US$54.6 billion (Q1 2015)

• This surpasses the combined GDP of Barbados, Guyana, Jamaica and the Eastern Caribbean.

• BP sold US$40 billion in assets to pay for fines and other costs

• The company is vulnerable to hostile takeovers.

• Not only did the well blowout BUT BP’s finances as well.

• The sustainability of BP is said to be questionable.

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Implications for the Caribbean



As a region, tourism is a major source of revenue and foreign exchange earnings.

In light of the fallout to the Gulf region’s tourism, the Caribbean has a greater degree of exposure to significant declines in our economic activity should a major environmental disaster occur

Can the region afford an absence of a sustainability or Green Think approach to the execution of projects.



Project Delivery

2015 PMI SCC GreenPM in the process groups - Alison C Holder

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