Primary Author: Mr Wayne A Crabtree Chevron Environmental Management Company
Co-author(s): Mr James Wolf Chevron; Mr Timothy John Havranek Cardno ENTRIX

Audience Focus: Intermediate
Application Type: Experience-Based
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: This presentation shares the recommended practices and lessons learned from the development and deployment of an enterprise-wide cost engineering (CE) program within an environmental management company of a large integrated oil and gas corporation. Particular attention is given to how the CE development team addressed the following three critical roadblocks standing against the adoption of this program:

• Organizational and cultural resistance;
• Reliance on outsourced CE skills;
• Absence of a centralized/standardized cost data management system.

An evaluation of the effectiveness of these three deployment risk mitigation strategies is reviewed. The three strategies include the following:

• Change Leadership — a focus on the value of understanding behavioral and cultural components of organizational change.
• Agile Deployment — a focus on the value of iterative learning in shaping organizational capability.
• Centralized Information Management — a focus on the value of a centralized and standardized project cost management system.