Zurich X-Ray Program

Zurich’s interview-based X-Ray Program assesses areas of corporate culture, management and communication that affect a company’s operations. The program measures the differences or gaps between management expectations and field perceptions and provides practical solutions through information gathered and lessons learned to help a company achieve operational excellence.

Our solutionDesigned to identify obstacles impacting operational efficiency, Zurich’s X-Ray Program establishes a corporate baseline through a series of management interviews. These interviews examine elements such as management, corporate culture, risk hazard analysis, education and training, project considerations and more. The interview assessment is then conducted within other levels of the organization such as project management, supervisory and craft to determine if gaps or conflicts may exist that have the potential to generate disruption, loss or unforeseen risk.

Upon completion of the interview process, Zurich’s risk engineering team compiles and analyzes the company’s interview results, comparing the organization’s corporate baseline to field input. Using these results, Zurich works with the company to develop a detailed action plan designed to help mitigate the identified issues. This action plan can become the roadmap to help improve operations and ultimately provide a safer and more productive workplace.

Zurich X-Ray Program

X-Ray in detail The ProcessThe elements of interview analysis and measure include:

1. Demographics

2. Corporate culture

3. Management and communication

4. Risk hazard analysis

5. Education and training

6. Planning

7. Quality assurance / quality control (QA/QC)

8. Project considerations

9. Safety management

10. Estimating

Each element contains sub-element questions, considerations or key practices that have been vetted over time and identified as qualities capable of producing excellent results in the construction industry environment. Each element is weighted based on its projected amount of direct impact on the overall goal of operational excellence. Each sub-element is a portion of the overall element and is weighted accordingly.

X-Ray sample of element questions, considerations or practice — 3. Management (skipping sub-element 3.1)

Element / Sub-element

Element and subsection Available points X-Ray key practices baseline

3.0 Management 95

3.2 Mid-level management participation in construction process

10 To what extent does mid-level management participate in the entire construction process?

• geographic

• types of construction

• marketing

• policy and procedures

• estimating to the actual construction process

3.3 Project manager(s) participation in construction process

10 Does work description include:

• estimating

• buyout

• contract negotiations

• construction of more than one project

3.4 Project superintendent(s)participation in construction process

10 Does work description include:

• initial schedule through completion

• site planning / logistics

• general conditions control

X-Ray sample of element questions, considerations or practices Note: Element 3. Management has 12 sub-elements with point weights of 5 or 10 points each for a total of 95 points.

Sample baseline questions Note: (Columns are not to actual scale representation only / Notes section is much larger)

Element / Sub-element

Element and subsection

Available points

X-Ray key practices baseline

Customer element and sub-element

Notes Awarded points

3.0 Management 0 0

3.9 Degree of control delegated to field

5 How much autonomy do the different levels of management and supervision have to control their responsibilities?

Consider during interview: Do Project Managers have less autonomy than superintendents due to experience?

5 = 100% interviewed matched baseline very well

3 = 60% of interviews matched well

One sample X-Ray element and sub-element from worksheets

Element / sub-element numbering for order

The major element is listed in this case 3.0. Management and the sub-element is 3.9 Degree of control delegated to the field

Points available are determined during the baseline development to provide weight / importance to individual element and subsection

The Zurich baseline practice questions, considerations or key practices have been developed over years are expectations for the interviewer to consider

Customer baseline adjustment or considerations (Additional notes or considerations supplied by customer during baseline creation)

Interviewer notes, observations and identifications recorded here

Points are cumulative and averaged from each interview level

Sample interview levelsNote: Senior management X-Ray interview level not always conducted

Corporate headquarters Corporate baseline created here

Division headquarters X-Ray level 1, if division interviewed

Project management and leadership X-Ray level 1

Project supervision and engineering X-Ray level 2

Project craft foreman and labor X-Ray level 3

Basic project X-Ray exampleAll Groups and levels can be adjusted to match desired organizational chart for interviews

Level 1Project management and leadership

Group 1

Baseline level used and project results rolled up

Level 2Supervision and engineering

Level 3Craft foremen and labor

Level 1

Group 2

Level 2

Level 3

Interview results can be combined or considered separate by level

Group 3

Large project working groups can be combined or separated for smaller projects

Project

Sample interviews and scoring resultsNote: The number of interview levels is determined by the size of the project and the workforce. The quality of the interviews is a key factor and far outweighs the quantity. A two person X-Ray team can conduct 22-25 interviews per day (9 hours)

Project

Group

Level 1 Level 3 cumulative responses 4 people interviewed with 3 interview observationsAverage score was 576 of 620 matching points available80% / 20% opportunity available

Level 2 Level 2 cumulative responses 7 people interviewed with 6 interview observationsAverage score was 385 of 500 matching points available74% / 26% opportunity available

Level 3 Level 1 cumulative responses 12 people interviewed with 4 interview observationsAverage score was 311 of 435 matching points available83% / 13% opportunity available

Project X-Ray assessment score sheetThe keys to success are vested in the opportunities uncovered

X-Ray element description

Project management and leadership

Supervision and engineering

Craft foreman and labor

Average of 3 levels

Project management and leadership average score

Supervision and engineering average score

Craft foreman / labor average score

Average of 3 levels

Average of all levels – project total scores

Demographics 25 15 15 18 14 12 8 11 61.82%

Corporate culture 10 10 10 10 7 4 8 6 63.33%

Management 95 90 85 90 71 46 70 62 69.26%

Risk / hazard analysis 35 35 25 32 31 31 20 27 86.32%

Educations and training 100 65 50 72 63 45 42 50 69.77%

Planning 40 10 10 20 33 8 7 16 80.00%

Quality QA / QC 65 35 35 45 52 30 31 38 83.70%

Project considerations 115 115 105 112 107 99 87 98 87.46%

Safety management 105 125 100 100 94 97 89 93 84.85%

Estimating and contracts

35 0 0 12 26 0 0 9 74.29%

Total 625 500 435 250 498 372 362 441 78.97%

Avg points Avg points Match %

Project score sheet tabulation

Summary of project scores

Point breakdown Project management and leadership

Supervision and engineering

Craft foreman and labor

Average points

Points available 625 500 435 520

Points awarded 498 372 362 411

Percentage match 80% 74% 83% 79%

Opportunity percentage 20% 26% 17% 21%

The scores attained are indicative of how well the interviewed responses matched the expectations as stated in the baseline elements and sub-elements. It should not be expected that a project or company would match 100% or that a company that has scored a high 90%+ is immune to risk and

has no opportunity for improvement. Our experience shows that most companies average between 70 and 80%. X-Ray is not a school examination that tests retention, but rather an analysis and benchmark that helps an organization identify how closely it is following its own defined expectations.

Elements X-Ray baseline available points X-Ray interview result points

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

Numeric scores are valuable, but the observations and notes from the interview team provide insights from the actual interviews. Below are sample observations from the interview notes related to elements.

3. Management: (Score = 69%) There appears to be a wide gap in project hazard analysis between ABC senior staff and then between subcontractors. It appears that a single project hazard analysis methodology may be lacking and would be required to provide the necessary practices to improve safety, coordination and even productivity.

6. Planning: (Score = 80%) Overall the project showed a high degree of planning being both expected and mentored from the Division leadership. As a CM@Risk (Construction Manager at Risk) on this project, the planning is essential to the subcontractors coordinating and completing their work without interference. However, inconsistencies do exist in the pre-planning for project phases and smaller unit work packages. This is an area that the project could benefit from and it may reduce the ongoing issues associated with management communications.

The scores in combination with the associated observations are the keys to developing strategic action plans for implementation. Without the observations, the scores are simply a numeric measure.

Once opportunities for improvement are identified and analyzed, the process of developing strategic action plans for implementation begins, helping to enable the organization to move closer toward operational excellence.

Observations in narrative form

The Zurich Services Corporation Risk Engineering

1299 Zurich Way Schaumburg, IL 60196-1056 800 982 5964 www.zurichna.com

This is intended as a general description of certain types of risk engineering services available to qualified customers through The Zurich Services Corporation. The Zurich Services Corporation does not guarantee any particular outcome and there may be conditions on your premises or within your organization, which may not be apparent to us. You are in the best position to understand your business and your organization and to take steps to minimize risk, and we wish to assist you by providing the information and tools to help you assess your changing risk environment.

©2017 The Zurich Services Corporation

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To learn more about Zurich’s X-Ray Program, please contact your risk engineering account coordinator.