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<ul><li> 1. Megaprojects:Learning from the Dongtan Ecocity ProjectAndrew Davies Imperial College Business SchoolNordic Forum on Leadership of Major ProjectsChalmers University 23-24 November 2011</li></ul><p> 2. Overview of presentation1. Background and introduction to Dongtan ecocity project2. Research methods and conceptual framework3. Case study: renew, reuse and reinforce4. Discussion and conclusion 3. Overview of presentation1. Background and introduction to Dongtan ecocity project2. Research methods and conceptual framework3. Case study: renew, reuse and reinforce4. Discussion and conclusion 4. My research on megaprojects infrastructure over $1bn London Heathrow Terminal 5 BAA and Laing ORourke Dongtan ecocity project Arup and Shanghai Industrial Investment Corporation London Olympics 2012 project Olympic Delivery Authority and CLM (delivery partner) Crossrail project Crossrail Limited (CRL), wholly owned subsidiary of Transport forLondon 5. Rapid Chinese urbanisation Chinas urban population is expected to reach over 1bn people by 2050 600m people are expected move from rural to urban areas between now and 2050 Chinese Government plans to build 50m new cities by 2020 6. Challenge: Climate change and Chinese cities China is searching for novel ways to expand urban areas while conserving natural resources, Science, 2008 Chinas current development is ecologically unsustainable, and the damage will not be reversible once higher GDP has been achieved, Zhenhua Xie, Minister of State Environmental Protection Agency 7. Response to these challenges: ecocity experiments Ecocity - radically new design of carbon neutral city Carbon emissions offset by carbon absorption Promote sustainable and low carbon living Less use of fossil fuels (coal, oil and gas) Adapt to climate change Renewable resources sun, wind, biomass, recycling, etc Changing behaviour New build and retrofit projects Design, build, integrate and operate complex mix of systems Pioneering new build projects Masdar in Abu Dhabi Dongtan in China 8. Masdar Abu Dhabi, United Arab EmiratesDesigned by Fosters &amp; Partners 9. Dongtan near Shanghai, ChinaDesigned by Arup 10. Arup Global professional services: consulting engineers, designers, planners, and project managers HQ: London Project-based: over 10,000 staff working on 10,000 projects globally Global reputation for projects in the built environment: buildings, infrastructure, sport, utilities, urban development, etc. Examples of major projects: Sydney Opera House (engineering) Oresund Bridge Beijing National Stadium (Birds Nest) Dongtan Ecocity (Arup Integrated Urbanism master planning) 11. Dongtan a vision of the urban low carbon futureNew city with half million people one of the biggest and most ambitious businessprojects ever undertaken, Observer 8 January 2006"Dongtan was a rare chance to demonstrate that growth could happen a different way.Lead planner Alejandro Gutierrez, Arup, Wired 2007This city will become a showpiece for the rest of the world. With London set to grow somuch, the methods we use in Dongtan will become extremely relevant to London. PeterHead, Dongtan Project Director, Arup 2007 12. Connected to Shanghai by bridge, tunnel &amp; subwaysystem 13. Dongtan ecocity key objectives and features Project stakeholders Client: Shanghai Industrial Investment Corporation (SIIC) Consultant masterplanner: Arup (UK design consultancy) Project goals: Sustainable demonstrator city cutting carbon emissions shapes urban design 45 min travel time to central Shanghai Population 500,000 in 2050 Site: 84 square km 3 distinct villages amid parkland and canals Population density similar to London 14. A strategic project for China and the UK November 2005 Arup sign MoU with President Hu Jin Tao &amp; PM Tony Blair April 2007 Deputy PM John Prescott visits Dongtan site September 2007 Arup, HSBC present to PM Gordon Brown and China Task Force SIIC, Arup, HSBC, Tongji University sign MoU PM Gordon Brown &amp; Shanghai Mayor Han Zheng 15. Key milestones of the Dongtan project Arup hired by McKinsey January-August Arup August SIIC approves January Arup deliverto work on the bird team prepare clear &amp;Arups masterplan final documentssanctuary detailed scope of work(project delivered in 13delivered to SIIC. Projectfor Dongtan designmonths) ready to move to At the time, SIIC wasconstruction phaseasking 3 global August SIIC appoints September Arupmasterplanning firms forArup to develop the issues Control Plan for April Arups co-ideas:Dongtan MasterplanStart-Up Area. Final located project in SIICmasterplan &amp; main premises is closed and Philip Johnson (US) October Arup planning applicationteam members move Atkins (UK)presents Dongtan design documentback to Arup Shanghai Architecture Studioand client requests 100%office(France)local renewable energy December Arupsources from startissues Sustainability 3 ideas shortlisted in Guidelines objectives,2004 November - Arup signsindicators andcontract with SIIC work requirements for but 4 years after theon 3 other ecocitybuildings, infrastructure &amp;original Dongtan idea,projects in China public spaceSIIC decided none of theideas were feasible December Arupissues 1st Design Reportfor the Start-Up Area2004 2005 2006 2007 16. Dontang masterplan deliverables Masterplan documents delivered in January 2007 1. Implementation plan 2. Design &amp; sustainability guidelines Documents address Procurement, delivery and financing model Performance specification for design, construction and operation of ecocity over 30 years Design phase completed and the project is ready for construction phase 17. Outcome of Arups design project Project delivered 3 months early Design meets request for close to 100% zero carbon solution Large wind farm generates green electricity Power utility burning rice husks (locally produced food) Solar power Walking biking city with zero emission vehicles hydrogen &amp; electric Buildings 4-8 stories tall to improve density and minimise sprawl Only 10% waste ends up in landfill Uses proven technology to reduce risks Innovation lies in the integration of technology and environment, cultural andsocial components Dongtan is not a rigid blueprint for a city for the futureother projects must be guided by unique local environment (Peter Head, Arup) 18. Dongtan site October 2007 still a wetland 19. Overview of presentation1. Background and introduction to Dongtan ecocity project2. Research methods and conceptual framework3. Case study: renew, reuse and reinforce4. Discussion and conclusion 20. Research motivation: managing innovation in projects New performance requirements for cities: zero-carbon and sustainability objectives ecocity experiments Initiated by vanguard projects (Brady new New &amp; Davies, 2004) projects TechnologyResearch questions: base How is knowledge created and combined in a vanguard project Business as usualexisting shaping a new market? Traditional projectNew projects capabilities How is knowledge transferred from a vanguard project to the next project?existing new Market base Davies &amp; Hobday, The Business of Projects, Cambridge University Press, (2005) 21. Capability developed through innovative projects A capability is knowledge, skills and experience to perform a set of specialised industrial activities the discovery and estimation of future wants, to research, developmentand design, to the execution and co-ordination of processes of physicaltransformation, the marketing of goods and so on. (Richardson 1972) Capabilities are developed through integration and transfer of knowledge (Grant 1996) Yet, we know relatively little about how this happens as a process in terms of: The role of key individuals in vanguard and future projects Mechanisms for creating knowledge creation and transfer The wider role of leadership and championing project ideas in the market 22. Research design and methods Research based on a case study theory building Worlds first ecocity design rare case (Siggelkow, 2007) Process study January 2007 to June 2010 Over 60 interviews: people involved in Dongtan: Arup, SIIC, Chongming Islandlocal authorities, SDCL (Sustainable Capital investor), HSBC bank 3 visits to Dongtan site Visited and experienced the Shanghai project office and client office Primary source documents (internal presentations, reports, diagrams andmaterial for project bid and external public documents) 2 workshops in China and UK Non-participant observation in Arup office - London and Shanghai; DongtanProject office in Shanghai 23. Our conceptual model of capability development:renewal, reuse &amp; reinforcement ReinforceInternal/external toorganization RenewIncremental/radicalReuse innovationTacit/Explicitknowledge 24. Overview of presentation1. Background and introduction to Dongtan ecocity project2. Research methods and conceptual framework3. Case study: renew, reuse and reinforce4. Discussion and conclusion 25. Renewal: Dongtan as a vanguard project Arups experience in experimenting, creating and participating in game-changing projectsDongtan is the next Normally we would never do a projectSidney Opera house like Dongtan it is too risky and too big.for Arup in terms of However, this was a rare opportunity forimportanceus to show leadership and learn. Taking on large projects is the way weB. Morera, Urban learn in this business of projectsdesigner, Arup, 2008 John Miles, Arup Board, 2009 26. Renewal: Innovation in urban design projects Renew capabilities develop capabilities in new categories of projects (Brady &amp; Davies, 2004; Shamsie et al, 2009) Challenge: create innovative approach to deliver Dongtan project Learning from Arups previous projects (e.g. BedZed low carbondevelopment) New concept of multi-functional project team called total serial innovation (Peter Head, Arup) Vision: Integrated Urbanism project team led by architects 30 specialists each with a team of 3-4 members in matrix structure New position: Cultural Planner Developed new technical and conceptual tools on the project to supportintegrated urban design 27. Renewal: creating the Dongtan project team Dongtan project Team selection: two people knew each other from LSE connection Encouraged to experiment with new approach to meet strong client needs Core team of 5 builds (six months) up to 150 specialists in less than one year (mainly in-house) New approach supported by Peter Head, Director Planning and Integrated Urbanism Arup lead the project and work with local design institutes and consultancies to deliver work-packages The project was risky for Arup Foreign architects can lose control of their Chinese projects when clients seek to cut costs and redesign using cheaper options Was the client really committed? Arup carried out internal audit of the project 28. Arups challenge: How to integrate multiple specialistwith component-knowledge to achieve sustainableperformance? Human andEnvironmental Health Economic Vitality andIndividual Prosperity EnergySystemically interconnected Housing components Nutrition and Urban-Change one and oneRural Linkagesor more other Mobility and Accesscomponents must change Communications Targets: sustainable Education and Culture performance duringoperational phase Governance and CivicEngagement Water 29. Arups solution to integration challenge: matrix projectstructure There is key temporal dimension to the work as well as interdisciplinary complexity. Sometimes the work in any cell of the matrix was led by the cross-cutting team and sometimes by the physical component team Peter Head, 2007 Hugh Ford Lecture Matrix structure for integrating multiple technology and organisational components of the design Teams develop their own model (e.g. transport, waste,environmental impact) Project members assigned to 12 offices within Arup Design and integration led by architects Focus meeting performance objectives guidelines ofsustainability 30. Traditional approach to masterplanningTraditional linear processClient BC REC MPENGReal Estate Master Planner EngineerBusinessConsultant Consultant We couldnt do it in a simple linear way. It would take four years to achieve an outcome. We had to develop a new approach (Guiterrez, Interview, 2008) 31. Arup created a new process: non-linear designBusiness ConsultantBC Real EstateREC Consultant MasterMP PlannerArup Engineer ENG We did what normally takes four years in one year (Guiterrez, Interview, 2008) 32. Tools for integrated urban design 33. Reuse: organisational change &amp; routines Reuse capabiliities knowledge, tools and processes transferred to next projects From outset Arup aims to transfer knowledge and develop replicable capabilities on subsequent (ecocity) projects Wanghuang, Changxiing, Tangye Partnership with SIIC and others on additional ecocity projects in China client wants to take one systems integrator role Partnership with HSBC New unit in Arup: Integrated Urbanism (Spring 2009, 75 employees) Group born out of Dongtan (Guiterrez, 2008, interview) Transfer of core Dongtan project members Mentoring on new projects Refinement of project tools IRM and SPEAR Create new tool: Integrated Methodology sequence of design processes 34. Arups new approach: Integrated Urbanism Source: Making Places in the Ecological Age, Arup Urban Design 35. Reinforcement: market position &amp; internal positioning Reinforce position in the market Strategic role of senior Arup people in promoting the project internally and externally Creating and shaping a new market Role of charismatic project members: Peter Head, Alejandro Guiterrezand Malcolm Smith Advance the concept of ecocity at international conferences: e.g. ClintonC40 Articles in major world publications: e.g. Wired, Newsweek, FinancialTimes Collaboration with universities e.g. EPSRC - Ecocit networkswww.ecocit.org Creation of Institutes for Sustainability China and UK Develop internal support for the Dongtan project and the strategic potential in sustainable integrated urban development 36. Overview of presentation1. Background and introduction to Dongtan ecocity project2. Research methods and conceptual framework3. Case study: renew, reuse and reinforce4. Discussion and conclusion 37. Discussion Arups story is about entrepreneurial effort to build a business in sustainable urban design Are the lessons learned from designing a green field ecocity transferable to retrofit platform, principles - why and how? Are businesses the key agents of change towards sustainability? Are efforts to gain competitive advantage in sustainable markets different from business-as-usual activities? 38. Climate change and urbanisation:the need for innovation! Innovation...is critical for the long-term conservation of resources and improvement of the environment (C. Freeman, 1982:4) Climate change becomes a major inducement and focusing device for innovative efforts (N. Rosenberg, 2009) Climate change is the ma...</p>