Breakthrough Breakthrough Strategy Today and Strategy Today and

TomorrowTomorrow

Chatt SmithChatt SmithStone & Webster Engineering Corp.Stone & Webster Engineering Corp.

Breakthrough Strategy CommitteeBreakthrough Strategy Committee

2000 CII Annual Conference2000 CII Annual ConferenceNashville, TennesseeNashville, Tennessee

““I think there is a world I think there is a world market for maybe five market for maybe five

computers.”computers.”

– Thomas Thomas WatsonWatson

Chairman of Chairman of IBM 1943IBM 1943

““640 K ought to be 640 K ought to be enough for anybody.”enough for anybody.”

– Bill GatesBill Gates

Microsoft Microsoft Corporation 1981Corporation 1981

““CAD is not applicable CAD is not applicable to the Construction to the Construction

Industry.”Industry.”

– CII Board of CII Board of AdvisorsAdvisors19831983

Breakthrough MissionBreakthrough MissionThe Breakthrough Strategy Committee will…The Breakthrough Strategy Committee will…– develop strategy/approach to identify and facilitate develop strategy/approach to identify and facilitate

activities to achieve breakthrough performance.activities to achieve breakthrough performance.

– develop process that will insure adequate generation develop process that will insure adequate generation of breakthrough, research, and other ideas.of breakthrough, research, and other ideas.

– initiate continuing list of appropriate breakthrough initiate continuing list of appropriate breakthrough opportunities.opportunities.

– interface with other standing committees for CII core interface with other standing committees for CII core processes.processes.

– evaluate, identify, and obtain of funding for evaluate, identify, and obtain of funding for breakthrough projects.breakthrough projects.

– assess progress and results.assess progress and results.

Breakthrough VisionBreakthrough Vision

““To establish a long-term vehicle in To establish a long-term vehicle in

CII that continues to identify, nurture, CII that continues to identify, nurture,

develop, and harvest breakthrough in develop, and harvest breakthrough in

capital project delivery for the capital project delivery for the

substantial benefit of CII members.”substantial benefit of CII members.”

We Have Defined Breakthrough We Have Defined Breakthrough As:As:

•Clearly dramatic change leading to Clearly dramatic change leading to major performance improvement (cost, major performance improvement (cost, schedule, or quality).schedule, or quality).

•Beyond “Best Practices” or Beyond “Best Practices” or incremental improvement.incremental improvement.

• Includes broad interpretation of:Includes broad interpretation of:– TechnologyTechnology– PracticesPractices– MindsetMindset– Truly effective implementationTruly effective implementation

•Potentially the realization of a BHAG.Potentially the realization of a BHAG.

A BHAG is an outrageous, seemingly A BHAG is an outrageous, seemingly impossible objective, YET it:impossible objective, YET it:

– is clear and compelling.is clear and compelling.

– is a powerful mechanism to is a powerful mechanism to stimulate progress.stimulate progress.

– serves as a unifying focal point for serves as a unifying focal point for breakthrough effort.breakthrough effort.

– is way beyond incremental is way beyond incremental improvement.improvement.

Q:Q: What is a BHAG?What is a BHAG?

A:A: Big Hairy Audacious Big Hairy Audacious GoalGoal

The Breakthrough ProcessThe Breakthrough Process

4D CADD4D CADD

ComposiComposite te MaterialMaterialss

Pipe Pipe MeldingMelding

Internet-Internet-Based Based DesignDesign

FIATECHFIATECH

First Part First Part CorrectCorrect AssesAsses

ssNurturNurtur

eeDeveloDevelo

ppHarvestHarvest

IdentifyIdentify

Winnowing AwayWinnowing Away

NumbeNumber of r of

IdeasIdeas

Stage of DevelopmentStage of Development

3,000 bright ideas = 1 winner3,000 bright ideas = 1 winner

((The EconomistThe Economist, February 20, 1999), February 20, 1999)

Breakthrough as a Breakthrough as a

Core Process in CIICore Process in CII

Input Ideas

Research

Breakthrough Implementation

Innovations: Composite Innovations: Composite MaterialsMaterials

Innovations Outside of CIIInnovations Outside of CII

Enter the Visual 4th Enter the Visual 4th DimensionDimension

Breakthrough Thinking Breakthrough Thinking

Real vs. DreamReal vs. Dream

Now vs. NeverNow vs. Never

Me vs. ThemMe vs. Them

““It’s kind of fun to It’s kind of fun to

do the do the

impossible.”impossible.”

– Walt Walt DisneyDisney