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CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 1
CH2MHill Managerial AnalysisMGT411 Section 2By: Mary Dorr, Joel O’Connor, Shayla Miner, Jerico Devlin, Clifford In
Table of ContentsI. Executive Summary..............................................................3
II. About CH2M Hill..................................................................3
III. Issues Identified...................................................................4
IV. Role Identification & Overstepping Boundaries...................5
V. Significant Faultlines............................................................7
VI. Lack of Trust and Communication.......................................9
VII. Feedback from Implementation Strategies........................11
VIII.......................................................................................Conclusion
............................................................................................13
IX. Works Cited........................................................................15
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 2
CH2M Hill-Halcrow Diver Engineers working for the US Navy
I. Executive Summary
This project was designed to provide a diagnostic summary of the
intervention within CH2M Hill’s entire consulting team. The goal of the
intervention was to provide an organizational analysis of CH2M Hill’s staff,
identify the relevant issues, and provide recommendations to improve their
current managerial processes. Within the recommendations, we as team of
college students, came up with a set of implementation strategies that
would provide the most optimal results. After the recommendations were
forwarded to CH2M Hill, the project director and mid-level managers
described which strategies would be most beneficial and why. It is
important to note that, while the strategies are currently being
implemented amongst the company employees, it is not clear as of yet
whether they will be successful. The goal of the project is to maintain
relations with the company beyond the scope of the class, until it is fully
understood which recommendations were benign, and others more salient.
II. Who is CH2M Hill?
CH2M Hill is a U.S. based engineering consulting company that has
many projects throughout the world. They are a global leader in design,
design-build, operations, and project management participating in many
industries including; energy, water, resources, facilities, transportation, and
the environment. Recently, they were hired by the British Ministry of
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 3
Defense (MOD) to provide project management for the building and delivery
of submarines. The scope of their duties includes schedules, budgeting and
financial management reviews, and commercial management. With such a
large project scope spread over a two year period, CH2M Hill hired
subcontractors to outsource much of the construction work. These
subcontractors were reviewed and hired by the CH2M Hill managers,
known as task leads. The task leads are responsible for creating functional
teams of CH2M Hill staff and subcontractors for each specific task involved
in the overall project. The task leads are the main channels of
communication between the teams and the project director. The project
director is responsible for overseeing the entire project, coordinating the
task leads, meeting, and communicating with the representatives of the
Ministry of Defense.
III. Issues Identified
To identify the issues facing this team we contacted the project
director, Kent Dorr, through phone calls and emails. This was the most
effective means of communication because of the time difference between
Colorado and the UK. Kent provided us with valuable information on the
scope of the project, the structure of the teams, and the issues that he was
facing as project manager. With such a large project and over 75 employees
under his supervision we identified several issues facing this team
including:
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 4
Cultural differences between the British and American
employees
Role identification and overstepping boundaries
Strong fault lines and lack of trust between CH2M employees
and subcontractors
Lack of communication between task leads and director
Some of the main factors that have caused these underlying issues can
strongly be attributed to the subcontractors taking on tasks that are outside
of their work scope. Having previously worked with the Ministry of Defense,
some subcontractors have overstepped their role by directly talking to the
Ministry of Defense rather than going through CH2M Hill, a clear violation
of their contract. The subcontractors not only broke the CH2M Hill’s chain
of command, but they also misrepresented the information from the current
project. The misrepresentation of the project and failing to communicate
with the proper CH2M Hill task leads created a lack of trust between these
two groups. The project director was cognizant of these issues and is
inclined to prevent these problems from escalating causing any significant
damage to the success of the project. Activities such as integration,
communication, and coordination must improve within these two
subgroups. The steps to be taken in order to reach this goal is to develop a
charter, eliminate the fault lines, implement methods for better
communication to be exchanged, define roles, as well as tasks, and address
cultural differences.
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 5
IV. Issue 1: Role Identification & Overstepping Boundaries
Company culture develops from norms that are established in the
home country of multinational corporations. These norms can create issues
when that company decides to do international commerce. Like many other
multinational projects, the common issue of cultural differences has
developed between U.S. based CH2M Hill and the U.K. based
subcontractors. Disagreements about roles, norms, practices and working
hours has slowed production of submarines. The situation between CH2M
Hill and its UK based subcontractor is a prime example of when two
different cultures clash. CH2 uses a more self-directed team approach to
management where the task lead clearly defines goals and objectives and
the team is responsible for delivering the end result by any means within
the scope of the contract terms. On the contrary, U.K. based subcontractors
use a more directive approach to management that may be viewed as micro-
managing in the eyes of CH2. Project director Kent Dorr, states:
“Miscommunication stems mainly from differing cultures between the
two companies. We place the responsibility on the person who is hired
to perform a specific function and to trust that our employees will do
so. The subcontractor micro manages a bit more than expected.” -
Kent Dorr (CH2M Hill Project Director)
Another cultural difference was the way both groups identified the
quantity and quality for the overall performance of the project. To CH2M
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 6
Hill, most U.S. employees were accustomed to a strict 40 hour work week,
and believe that quality of the project is more important than focusing on
just billable hours. In the UK a 40 hour work week is less prevalent, and
more so follows a norm of following a 37 hour week. These different views
of the traditional work week have caused the U.S. employees to feel that the
British are less productive and may have caused faultlines between the
employees.
Role identification issues can be attributed to misinterpretation and
confusion about specific tasks and authorities. The confusion may be due to
the existing relationships between the subcontractors and the
representatives from the MOD. Some of the subcontractors have been
working with the client for five years or more and have developed familiar
working relationships. These relationship may lead to open communication
between the subs and the MOD, but can also lead to overstepping
authoritative boundaries of CH2. Although these boundaries and guidelines
are listed in the Non-Disclosure Agreements (NDA’s) and Conflict of
Interests forms (COI’s) there is clearly a need to revisit these.
Proposed Resolution
To resolve this dilemma that has developed between CH2M Hill and
the UK subcontractors a few things need to be done. We recommended a
charter be put in place to establish clearly a defined set of goals, objectives,
norms, and expectations of all employees across both firms. This will allow a
more in-depth explanation of how the project with the Ministry of Defense
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 7
will proceed. Right now the subcontractors are looking for immediate gain,
while CH2M Hill is looking at the overall picture, and focusing on the
quality of the product. The charter will help align CH2M Hill’s goals and the
subcontractors by directing these issues straight on. Issues such as
channels of communication, roles, norms, and work scope will be clearly
defined and agreed upon by all parties involved.
Although something similar to a charter has already been set up, as
most companies often do, there is an obvious misconception or
miscommunication that has occurred with the UK subcontractors. There is a
good possibility that the relaying of this new charter may come off as
threatening, but overall being more stern with the employees is better than
having employees terminated. Second, to help reduce the tension between
the two companies performing some form of team building activities, or
structured social events should be implemented. If CH2M Hill and its
subcontractors can get to know each other on a little more on a personal
level they have the potential to further understand each other. Even if both
still don’t agree with how everything should be done “process conflict” they
can at least learn to respect each other on a deeper level. This can lead to
synergy which would in the long run make all parties happier with the
project.
V. Issue 2: Significant Faultlines
As stated beforehand, there are significant cultural divisions between
the U.S. employees and the British subcontractors. This was the most
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 8
evident faultline, and one that may have caused cultural misunderstandings
or misinterpreted behaviors. Kent Dorr emphasized that there were clear
differences in the way both groups perceived their role of responsibilities. It
is important to note that the obscure roles were key to creating faultlines
within the teams and these cultural perceptions lead to more
misunderstandings down the line. Another element that established the
fault lines between U.S. workers and the British subcontractors was that
some of the subcontractors had been supporting the MOD for the past 5
years. Dorr explained that in many situations the British subcontractors
tended to carry a confirmation bias and hindered the decision-making
during critical steps in the project. It is evident that the some of the
British’s subcontractors tend to carry a stronger pseudo-status, after most
of the American CH2M Hill employees were assigned to be task leads. This
shows that the contractors may have had a power-based conflict with the
task-leads, which may have divided the groups even more.
With these fault lines present, the teams continued to feel separated
and took on an us-versus-them mentality and prevented the teams from fully
integrating with one another. Fault lines have created distrust between the
groups, and have made it less likely that members will share all available
information that is critical to productivity in the work teams. To increase
trust and break down faultlines the task leads must build team cohesion by
aligning the members’ goals and rewarding the team instead of the
individuals.
Proposed ResolutionCH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 9
One way we proposed CH2M Hill and the subcontractors to eliminate
the fault lines are by doing group outings away from the office such as,
social events, and team building exercises. For socialization events this
could be dinners where the task leads and members within their teams go
out, and get away from the office. These teams could also go to a sporting
event where they also have a chance to get to know one another outside of
work. Sporting events are particularly beneficial because individual
members of the work team will rally behind the sports team aligning with
the goal of winning the sporting event, creating a bond and cohesion among
work-team members. With these outings the teams will be able to connect
with each other on a more personal level, and not just become people they
see at work. The task lead need make sure that at these social events the
CH2M Hill members and the subcontractors don’t just socialize with one
another, but must be encouraged to step out of these reference groups.
Another suggestion that will help with the two groups to integrate is
to do team building activities. These can be arranged by an outside third
party, or even games that CH2M Hill can host. With these team activities
we want there to be subordinate goals so that in order to achieve the task at
hand both teams will need to work together, share resources, etc., in order
to reach the end goal. This again will hopefully break down fault lines, and
have both the CH2M Hill employees and the subcontractors to build team
efficacy and develop trust. If these team building activities are structured in
the way that there are subordinate goals then this can be brought to
attention during the team exercise to show the importance of sharing all
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 10
information and resources in order to reach the end goal. These principles
can be brought back to the workplace and allow teams to work together.
They will start looking at each other as “one team” rather than “us-versus-
them” and allow the best quality product will be delivered to the client.
Hopefully these implementations will create an environment where these
fault lines are blurred or nonexistent, and the teams can move forward with
synergy for the remainder of the project.
VI. Issue 3: Lack of Trust & Communication
After looking at the previous problems that have developed through
the situation with CH2M Hill and the UK subcontractors, it is evident that
issues regarding communication could be another cause behind arising
conflict. Currently, CH2M Hill utilizes a chain of command where all team
members are directed to report certain information to their current task
lead. From there, the task lead is then responsible for relaying information
to the program director. It is difficult for the program director to constantly
be aware of everything that is going on, so they try to emphasize much of
the information on day to day activities to be relayed through an all-channel
communication structure.
Many modes of communication are used in this project including
email, phone calls, conference calls, Instant messages and face-to-face
meetings. Face-to-face communication is the richest form of communication
between team members who are at the same place, at the same time. This
allows team members to gather information through non-verbal cues and
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 11
helps build relationships with co-workers. These relationships will build
trust over time and allow the teams to function more effectively. With that
in mind, this method is generally the preferred form of communication for
CH2M Hill when working directly with their client. However, this is not
always an option for the teams, especially for teams that are geographically
dispersed such as the UK subcontractors. Therefore to maintain
interpersonal communication between team members in different time
zones, written communication is primarily used via email and IM. Although
this channel is useful, there are disadvantages that follow as well.
One significant disadvantage behind the primary use of emails is lack
of feedback. With face-to-face or verbal communication, team members are
able to actively respond to issues and concerns, and generate instant
feedback regarding situations. There is only so much a person can garner
from an email, and there is no control over how the information is
perceived. In contrast, using email creates an advantage by allowing team
members to access more information in a timely manner. It also allows
users to think through critical information and make clear and concise
responses. Given that face-to-face contact is difficult to achieve, computer-
mediated communication is generally considered the best approach to
dealing with such geographically diverse teams. However, in order for this
channel to be effective, it is essential that team members have access to
necessary information being shared.
Proposed Resolution
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 12
After examining the situation, the next course of action would be to
increase communication between CH2M Hill, the subcontractors, and the
task leads. It is particularly important to increase communication between
the task leads because they are the ones who relay important information
directly back to the program director, and are responsible for coordination
within the teams. When working on large contracts and teams of 2500+
people, it can be difficult to relay a constant message across the entire
team. To help task leads increase coordination and communication, a blog
site should be created for the use of all team members. With this site, task
leads will be able to check in with their teams on a daily basis to better
track progress, report any incidents, and stay on the same page as their
fellow team members. By using a blog site, team members will be able to
provide their input on other’s problems or situations, giving the task leads a
better idea of how to approach a situation. The use of this site will allow up-
to-date information to get passed along during weekly meetings. During
these meetings any issues that arose on the site will be addressed by the
task leads in a respectful and constructive manner. The task leads will also
hold their own meetings twice a week to follow up on information discussed
on the site. One meeting will be held on Mondays to set a game plan and
relay updates, and another on Fridays for debriefing and feedback.
Maintaining this site requires its task leads to work together as a unified
core; which helps to create and encourage communication on every level of
the organization.
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 13
VII. Feedback from Implementation Strategies
After reviewing all the information regarding the diagnosis of CH2M
Hill’s most significant issues, we forwarded possible implementation
strategies to the project director, Kent Dorr. Upon his review, we were able
to understand that some of the strategies had already been in place, but
may not have been emphasized enough to employees because managers
were too busy with other duties. These strategies were clearly not new to
Dorr, so he provided his view on how those suggested strategic actions
might be possible in the project context.
1) Overcoming Role Identification and Cultural Differences
The main implementation strategy for overcoming CH2M Hill’s
problem with role identification was to establish a charter. Dorr stated that
currently, the company was utilizing a resource matrix which would manage
across the contract by resource type, grade/experience, and deployment.
Every resource on the contract would be implemented, and would provide
each group with the necessary employees to accomplish the task. Dorr
agreed that simply having a set of guidelines for the employees was not an
efficient way to translate the company’s expectations or norms, but needed
to be directed to a “process manual” where task leads may be able to re-
emphasize the charter on a consistent basis to other employees. As a whole
group, Dorr agreed that the company need to have a reflection period over
the establishments of the charter.
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 14
2) Eliminating Fault Lines
One of the suggested implementation strategies focused on providing
more opportunities to employees for informal team-building, or socializing
activities away from the work site. Dorr resonated with this concept; in
that, employees especially for diverse backgrounds needed to step away
from the site and have face-to-face interactions without any form of informal
restrictions. These socializing events would allow the both the task leads
and subcontractors to eliminate their assumptions about one another, and
better understand each other’s viewpoints and cultural standings. It was
stated by Dorr that the team often went to rugby games together, and the
event really boosted the team’s morale and sense of integration.
3) Enhancing Communication
To better the communication throughout the whole CH2M Hill team
including the project director, task leads, and other team members, a
suggest implementation was to provide a blog site that all employees can
utilize. With a group of 70 people on the current project, Dorr agreed that
having a blog site would be beneficial avenue for sending out a consistent
message to all members. He did note that smaller projects may prefer using
a more face-to-face communication tool, since it would allow employees to
provide task leads direct feedback. However, in a setting where time is
stringent, task leads may not have time to hear all of the underlying issues
that an employee may have on a daily basis. Therefore, by utilizing a blog
site for all employees, the task leads will be able to maintain constant
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 15
communication, and provide feedback to their employees on a timely basis.
In some cases, members may feel more “psychologically safe” to voice their
issues directly to a task lead online, rather than a staff meeting.
VIII. Conclusion
When examining a project as complex as building submarines for the
Ministry of Defense it is evident that many issues and problems will arise.
The underlying issue that we have found to permeate all other issues in this
case are the cultural differences between the US based CH2M Hill and the
UK based subcontractors. Because of differences in goals, objectives,
norms, and communication and management styles conflict may arise in
work teams that are integrated with employees from both countries.
Role identification, tasks, duties and authority must be clearly defined
and spelled out in black and white with agreement and signature from all
employees involved. Many companies have some sort of charter or NDA’s
and COI’s that identifies these aspects, but either don’t utilize them
properly or they become outdated and misconstrued. To remain effective
Teams must revisit and revise these charters or business process manuals
regularly to keep them up to date and effective. By utilizing and updating
these documents regularly employees will have greater awareness of Roles,
tasks, duties and authorities and will perform to a much higher level.
Fault lines in cross-cultural teams can be a major issue that will
inhibit efficient production. These teams were made up of employees that
had different norms and standards for management and quality. When
introduced to new operating procedures an us-versus-them mentality can
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 16
arise causing conflict within the team and throughout the project. To
eliminate this managers must be able to incorporate socialization
techniques to build cohesion among team members and allow fault-lines to
be broken down. Once these fault-lines are broken down synergy among
team members will be created, relationships and bonds will be formed
allowing the teams to become more productive
Open and effective communication is critical in any team
environment. On this project the subcontractors and other employees must
communicate with the task lead to report any questions or concerns for the
task be carried out. The task leads are then responsible for dealing with the
concern and informing the project director of any important information.
The project director must then make decisions based on all the information
to allow long term project success. The project director is also in charge of
communication of critical information to the Ministry of Defense. By
keeping information flowing through the right channels, the project director
can more efficiently make decisions that will be best for the project and the
client in the long run.
Key Takeaways
In complex situations and work environments it can be very difficult to
pinpoint the direct cause of conflict within teams. Often times it is
advantageous to have an outsider’s perspective on the situation to alleviate
in-group biases. In this particular case we learned that cultural differences
can be the root cause of many other issues such as role identification, fault
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 17
lines, and communication breakdown. When doing business in other
countries you must anticipate cultural differences and be able to facilitate
guidelines and procedures to ensure that everyone is on the same page.
Some of the resolution strategies that we offered were already set in place,
but may have needed to be revisited. We learned that many of the principles
we learned in class such as clearly defining roles, breaking down fault lines
and keeping open communication can be valuable in any team situation no
matter the size or complexity of the project.
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 18
IX. Works Cited
CH2M Hill. (2013). Retrieved from http://www.ch2m.com/corporate/
CH2M Hill. (n.d.). Retrieved Nov. 30, 2013 from the 2012 NFL Wiki:
http://en.wikipedia.org/wiki/CH2M_Hill
Dorr, Kent. Project Director for CH2M Hill at London
CH2MHILL MANAGERIAL ANALYSIS – NOVEMBER 2013 19
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