Application
of ADKAR in the digitalization of brownfield project execution, using AWP
solutions, carries transferrable lessons to digitalization of global project
delivery. A tried and tested organizational change management model is useful
to identify and rectify stumbling blocks to fully aligning technology, people
and processes.
The introduction of digital
technologies, such as automation, machine learning, and AI, to the oil and gas
industry is accelerating the pace and promise of achieving enhanced
productivity and profitability. However, low rates of adoption prevail, putting
digital maturity stubbornly below benchmarked industries.1
A stark
example is that as recently as 2019, all 28 UKCS project sites under analysis depended
on traditional paper-based processes to manage and monitor day-to-day
activities. A recent survey report by OEUK identified three drawbacks holding
back a full digital revolution: the prevalence of legacy systems; complexity of
the industry; and a risk-averse culture.2
Using the
introduction of Advanced Work Packaging (AWP) software across 28 brownfield
project sites as an example, Petrofac and MODS deployed ADKAR, (Awareness,
Desire, Knowledge, Ability, Reinforcement), a proven change management tool, to
better understand and overcome the obstacles, preventing the acceptance and optimized
use of this cloud-based solution. Two case studies clearly demonstrated that
the willingness of personnel to embrace progressive innovation is at least as
influential as the merits of the technology itself.
THE DIGITAL
ADOPTION DILEMMA
Countless companies have initiated digitization projects to
streamline workflows, improve construction and operations, and advance
maintenance efficiencies. However, while many digital technologies have been
introduced, only around 30% successfully passed the pilot phase and are firmly entrenched
in the workplace.3 Research points to cultural and organizational
barriers that may deter uptake and scalability of viable and proven solutions.
These include:
Overturning trusted,
tried and tested ways of working into advanced, digital practices can only be
achieved through alignment of people, processes, and technology.
The issue
lies in the fact that organizations, particularly in the oil and gas industry,
focus on the technological impact more than the human impetus. Yet, the people
component is a pervasive pressure point. As the ultimate users of new
technological tools, people need to work hard to change mindsets, develop new
skills, embrace new processes, and alter established working practices. Without
the right incentives, motivation and support, employee buy-in becomes
challenging; adoption rates will be low, and ROI will be poor.
A prime
example is when drivers started adopting SatNav as a replacement for cumbersome,
outdated navigation methods, such as paper maps. The turning point came when a
desire to be more efficient trumped fear of change.
To maximize
the ROI of new technologies, there should be as much focus on how the end-users
adapt to the technology, as there is on the development of the technology
itself. To do so, a recognized organizational change management program, such
as ADKAR, can be an
DIGITAL
DIVIDE: BROWNFIELD VS. GREENFIELD
Digitalizing brownfield project delivery at an organizational
level has historically proven elusive, particularly during the construction
phase.
As brownfield project execution is typically smaller in both scope
and capital, compared to greenfield, it is often constrained to employing in
situ methods, systems and processes. With the requirement for more predictable
project execution, existing AWP solutions are, therefore, not easily translated
or implemented across brownfield assets. In addition, when trying to amalgamate
archival installation and construction information with new, advanced
technologies, the approach tends to be more piecemeal and less holistic.
Regardless, as an agnostic technology, AWP software is now
considered an industry best practice for EPC projects, as it can integrate with
any archival digital system, whether off-the-shelf or proprietary, to import
any, and all, legacy information. The potential benefits, in terms of
productivity and project performance, make it worth considering.4 Adopting
new ways of overseeing, managing and executing construction and maintenance
workflows can help tackle around 40% of global greenhouse gas emissions and
save the global economy $1.6 trillion every year.5 It also could
increase the construction sector’s efficiency by 60%.6
The overall transition from manual to digital can be supported by
applying the ADKAR Change Management Model to ensure the human element is
emphasized in partnership with the introduction of technology.
ANALYZING DIGITAL ADOPTION
The ADKAR
model provides businesses with a roadmap for the successful uptake and
scalability of any new technological solution. It is focused on outcomes across
a five-step process for continuous improvement:7
The
first two steps, “awareness” and “desire,” apply to the current status quo situation,
while the following two steps, “knowledge” and “ability,” relate to the
transition phase. The final step, “reinforcement,” concerns any future
scenario.
Continuous improvement in a digital transformation journey would
view ADKAR as a continuous loop: when the future scenario is achieved, a new
set of outcomes is identified, as demonstrated in Fig. 1.
Following a collaboration between Petrofac and leading software
developer MODS, ADKAR was applied to understand the challenges of adopting and
integrating AWP tools across 28 brownfield assets in the UKCS, as well as recommending
remedial next steps, Fig. 2. The 28 brownfield sites had achieved
varying levels of digital transformation, and two case studies from both sides
of the spectrum were selected for discussion.
The study began by examining the existing digital approaches to
four key workflows within a typical brownfield project execution model: work
packages, materials management, completions, and reporting.
Case study 1: Desire for change stalls. At the outset, higher-level, strategic decision-makers identified
which projects and assets would initiate their digital transformation journey. Initial
conversations with upper-level management were promising. On the surface, “awareness”
of, and a “desire” for, the benefits of digitalization to improve brownfield
construction efficiency was apparent. However, for ADKAR to advance fully over
five steps, all impacted parties must be active and willing participants.
The stumbling block in this instance was in cultivating the same motivation
amongst middle management and engineering personnel. They demonstrated far less
willingness to change their current way of working relative to their
upper-management counterparts, because it affected and altered the way they would
normally work. By putting up barriers to change, this reverberated back to
Petrofac and MODS and, paradoxically, created more inefficiencies by changing
their preferred processes to suit the client/owner. The engineers’ and middle
management’s resistance to change resulted in negligible uptake of the digital
tool and manual/paper processing resumed.
To cultivate an eagerness for change, a dual top-down and
bottom-up approach is best. This needs to be an active process, whereby a case
is made for how the change will make people’s jobs easier and improve their
performance. It is downstream middle management through to the end users who
will become ambassadors for uptake of a new system. Granting agency and choice
can go a long way toward generating the will to change.
Case study 2: All for one and one for all. Like case study 1, initial client discussions were well-received
by upper management. However, this time, the client gave more control to middle
management, who were brought in and adopted the recommended standard.
Unlike the first approach, “awareness” and “desire” were
cultivated earlier in the process. This created an ecosystem of trust in the
change management process and the wider benefits of the digital and technical overhaul.
All parties were included in the consultation to improve understanding, thereby
instilling confidence in adapting to and transferring to the new system. This resulted
in the final stage of the process being achieved, “reinforcement.” The client
was ultimately prepared to invest in the totality of the solution to optimize
ROI. While small customization changes were made to the software to help with
overall team integration, the partners are now looking at the next phases of
what can be achieved together.
DIFFERING DIGITAL JOURNEYS
The two case studies represent opposite ends of the spectrum, with
regard to successful uptake under the ADKAR Change Management Model, Fig. 3.
The first failed at Stage 2 as “desire” for change was not felt by all users.
The second case study, in contrast, succeeded in digitally transforming
brownfield project execution with AWP because of the ability to cultivate
enthusiasm and readiness thereby advancing the ADKAR model.
About 70% of initiatives fail to implement digital change because
of what, on the surface, appear to be obvious requirements, such as management
support, clearly defined and achievable objectives, and transparent communication.8
As case study 1 demonstrated, this is not an easy process, and user needs are
often taken for granted and thus, overlooked. The ADKAR model helps avoid these
pitfalls, shepherding organizations through successful uptake and upscaling of
digital solutions. Giving careful consideration of lessons learned from other
sites, and with other teams, will increase the potential for a truly
sustainable, value-added transition.
While the second case study was considered a success, it is
important to note that successfully managing change through a digital
transformation has no endpoint. In fact, “reinforcement” will cycle back to “awareness,”
creating a positive feedback loop built on continuous improvement to the new
system and processes. This is how digital change can be upscaled from one asset
and/or project to a portfolio of assets and/or projects.
For those sites where uptake of the new technology was less
advanced, ADKAR and subsequent feedback surveys helped identify why this was
the case. The resultant ADKAR improvement plan helped accelerate adoption by
both office and site personnel, ensuring scalability and extracting lessons
learned for successful EPC brownfield project execution in any context.
Ten modifications to maximize the user interface and experience
were identified and acted upon. This enabled the “knowledge” and “ability”
stages of the model to be performed effectively with the project teams. When
coupled with “reinforcement” strategies, these user-initiated changes enabled a
continual learning loop that maximized technology adoption and ROI across the
28 brownfield sites.
ARRIVING AT A DIGITAL DESTINATION
Without the desire for a digital roadmap, advancement stalls. Like
the SatNav analogy, even if a driver has the most advanced digital navigation
system installed, if it isn’t wanted or understood, it won’t be used. The
driver will simply carry on using their crumpled, paper maps, though they are
clearly less efficient and effective for their journey.
This metaphor and investigation by Petrofac and MODS should make
it clear to digital leaders in the oil and gas industry that even the best
invention or innovation can fail to make an impact, if the intended user isn’t
fully involved and engaged. Furthermore, according to a recent report by
McKinsey & Company, an equal share should be spent on developing technology
and the means to integrate it and grow it across a business.9
The novel application of ADKAR in the digitalization of brownfield
project execution using AWP solutions carries transferrable lessons to the digitalization
of global project delivery. If the users are so important to the uptake and
scalability of technological advances, so it goes that a tried and tested organizational
change management model is useful to identify and rectify stumbling blocks to
fully align technology, people and processes. WO
Note: Other change management models should be
considered by the reader. ADKAR was adopted by the digital partnership
responsible for this article, as it offered the most suitable framework.
Lead Image: A new change management tool is transforming EPC brownfield project execution in the UKCS.
REFERENCES
ALEX
ROBERTSON is
project director, systems, digital and technology, with Petrofac. He has 25
years of experience in project delivery on both brownfield & greenfield
CAPEX projects, as well as on asset support contracts in the North Sea and
internationally. His work currently spans digital transformation in project
delivery and into O&M. Mr. Robertson is an active member of the ECITB
Project Management Steering Group and consults for both new energy and
traditional operators in establishing PMOs and framing capital project
execution strategies. He is passionate about how the industry can improve
project delivery and has recently published a paper, "Predicting Project
Outcomes with the Association of Project Management," which was presented
at ADIPEC in October 2022.
LISA DE VELLIS, PE, C.WEM, is global content
writer with MODS. A licensed Professional Engineer stateside, and a Chartered
Water and Environmental Manager in the UK, she leverages over 15 years of
engineering research, design and operations in diverse global contexts to write
about digital transformation, sustainability and innovation.
An abridged version of SPE-123456-MS, presented at ADIPEC, 2-5 October 2023, Abu Dhabi, UAE