Many of our clients have asked us to build a free-standing O&M entity so as to gain better control of plant operations and business performance. In these cases we have taken full outcome responsibility for the establishment of a complete management, accounting, administration, operations and maintenance organization.
When Sterling Energy takes on the responsibility for mobilization of a new project operating entity, we do not think of ourselves as contractors. Rather, we think of ourselves as joining our client’s organization, as an integral part of the complete team, for the duration of our engagement.
We bring a clear and integrated vision that has consistently resulted in profitable plants and effective O&M organizations for our clients in a number of countries. Our concepts and methodologies represent a distillation of the lessons learned by involvement or association with a large number of private power projects around the world. Nonetheless, we actively seek to adapt our approach to fit our client’s needs and preferences. By working together, we have always been able to achieve a whole result that is much greater than the sum of the parts that any individual company brought to the project.
- The initial mobilization period represents an opportunity, of inestimable value, to set a positive culture within the new organization. The most important value that we add to these projects is our ability to do that well. We have identified some fundamental principles that, when all are present, virtually assure a team of extraordinary effectiveness:
- A clear sense of common mission, leading to a common identity that can be described as an “us”, or “we”, that includes everyone in the organization.
- Sharply defined and broadly accepted goals and objectives, with an obvious plan to achieve them, effective monitoring of progress, and the ability to make mid-course corrections along the way.
- Specific responsibility and accountability accepted by, or imposed upon, individuals at every level, along with near certainty that performance will be noticed.
- Congruence of incentives with the objectives of all of the stakeholders of the project, including the power customers the investors and the team members themselves.
These core principles are firmly embedded in all of Sterling Energy’s practices. Each of our team is attuned to their necessity and dedicated to fostering them in all that we do. They will be written into each of our culture-defining deliverables, including: the mission and vision statements, the plant policies and procedures, the annual operating plan and budget, each individual team member’s personal action plan, and the team performance bonus program that we will recommend.
During a typical O&M entity mobilization we will:
- Plan and manage all the processes required to get a world-class organization ready to accept responsibility for the project when construction is complete.
- Establish and communicate clear project mission and vision statements.
- Prepare and justify a comprehensive budget for all expenses related to the mobilization, then manage the expenditures within it.
- Recruit, interview and hire the complete staff for the facility.
- Lead, train and manage the staff to establish a culture of technical competence, individual responsibility, personal commitment and teamwork.
- Provide a seasoned and experienced interim plant manager until the permanent plant manager is engaged full-time. Alternatively, we will provide full management services for an extended period of commercial operation.
- Set up a complete and fully functional suite of accounting and administrative policies, procedures and programs.
- Set up a complete and integrated maintenance and materials management program.
- Select and requisition the initial spare parts inventory.
- Create a comprehensive policies and procedures manual, with full involvement by those who will use them.
- Provide a detailed management plan for the first year of commercial operation, including realistic but aggressive management goals and plans to accomplish them.
- Provide a suite of programs to assure that each month the plant manager is able to provide comprehensive and meaningful budget variance reports and production information within two working days of the end of each month.
- Provide intensive training and indoctrination to the permanent plant manager on the policies, procedures and philosophy of management that we are putting in place.
We encourage and welcome full involvement by the owner in our mobilization activities. Nonetheless, we approach the projects in such a manner that everything on this list will be delivered, on time, on budget, and in a manner in which we can all be proud, with virtually no demand for time or attention from the owner’s management.
Read more about our management, operations and maintenance mobilization experience.
For more information please contact Dave Morgan.