mgt411_team project paper

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


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


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:


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.


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


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


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


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


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


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


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.


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.


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


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


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


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.


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


http://en.wikipedia.org/wiki/CH2M_Hill

http://www.ch2m.com/corporate/

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