New Strategic Architecture

During the year we developed a new strategic architecture to allow us to respond more dynamically to the changing world.

The architecture is a framework that integrates all the strategic processes at WorleyParsons, describing how they interact over the course of the financial year. It defines how they allow us to improve our collective performance, accelerate our revenue growth and address the dramatic change in our industry in a systematic way.

The objective is to balance strategic thinking with a bias for action by translating strategic conversations into real practical actions in the field. This will create a scheduled regular set of actions over the year for both strategic conversations and the review of strategic initiatives. The intent is that this will increase our ability to spot market and customer shifts early and to seize the opportunity or take corrective action in a timely manner.

The architecture is built around the following three pillars:

1. Operational excellence ensuring that we always maintain a viable and competitive business.

2. Grow the business in the near term by offering all of our value to all of our customers.

3. Position the business to grow as a key player in the new world.

 

We have distilled our strategy into a number of priority areas, which will be reviewed on a regular basis as part of the cadence of strategy review. The current priority areas are indicated on page 13.

 

Pillar 1

Viable and competitive business 

We need every single part of our business to pull its weight to ensure our overall collective performance. To this end we have adopted a more granular lens of approximately 80 units for reviewing performance. This will help us address previously hidden areas of potential underperformance.

We look to areas that are performing below average on a range of financial and non‑financial metrics and help them lift their performance to at least average. As these performance metrics are achieved new and higher level targets are introduced. This is a much more highly structured and disciplined approach to unit performance than we have adopted in the past.

Current performance = future business

The greatest way to ensure future work is to deliver superior performance on our existing projects. This involves ensuring that we have the best problem solving talent in the organization and that we work in smarter ways to exceed our customers’ expectations.

 

Pillar 2

All our value to all our customers

Pillar 2 seeks to provide an action orientated framework for delivering all of our value to all of our customers.

In the first half of this financial year we brought all of our business development under new leadership, establishing our Global Sales and Marketing team (GSM). We recognized the need to ensure our customers were being offered the best of our global capabilities at all times. While we have been very focused on cost control in the business we have been also making sure that we are optimizing our ability to win work.

As part of this shift we needed to become much more systematic, particularly in our bids on large bespoke projects. We introduced our Swarm processes to ensure we were putting our best collective foot forward with every major bid and to raise our win-rate.

We also introduced our Sprint programs to take our proven offerings to known customers who are likely to need those offerings. This will ensure we take the best of WorleyParsons to all our customers.

 

Pillar 3

Key player in the new world

There are several unstoppable trends in the world that will demand a new approach to the use of resources and sources of energy. Pillar 3 ensures that we are shaping the business for the outcomes of those trends including participating in the emerging resources and energy arenas, and enhancing how we work through automation and digitization of core processes for both WorleyParsons and our customers. As we automate our traditional activities, we will move more and more toward being a solution provider. This will require the development of alternate commercial models beyond tolling the man-hours that we provide to commercial models that reward us for the value that we bring to our customers.

We are positioning the business to be relevant and thrive in this new world. 

Strategic priorities

Investing in New Energy

The world is in transition as new technologies and business models challenge traditional energy sectors. Whilst we expect our core hydrocarbons markets to continue to grow, we are already participating in this New Energy market. This includes renewable electricity generation, new technology enablers such as battery energy storage, and the rise of data management as a core integration tool.

Our progress to date shows that we are perfectly placed to leverage our deep technical expertise in the power and energy markets to support our existing and new customers as they embrace New Energy. We have developed centres of excellence in Brazil, Spain, Australia and the United States which in turn support New Energy projects across the globe.

The recently completed Lake Turkana Wind Power Project in northern Kenya delivered 365 wind turbines with a combined generating capacity of 300 MW. WorleyParsons provided the complete Project Management and Owner’s Engineer services.

The soon-to-be-completed Shagaya Renewable Energy Project in Kuwait includes a 50 MW Concentrated Solar Power plant with molten salt energy storage, a 10 MW Photovoltaic Solar plant, and a 10 MW Wind Farm. WorleyParsons and Advisian have combined to provide overall Precinct Project Management, as well as engineering specialists to ensure the projects meet the demanding specification and operational performance required.

Advisian is a consortium partner for The Energy Storage for the Commercial Renewable Integration Project in South Australia. This project aims to prove that large scale battery storage can assist with the integration of large quantities of renewable energy into electricity markets. Advisian has provided technical and procurement specialists, and once the project is completed will be monitoring the asset’s performance.

Advisian also continued The New Energy Future series of thought leadership white papers with a detailed assessment of electric vehicles and their impact on the energy mix.

We are expanding our efforts in New Energy as a strategic priority for us. Investments will see us broadening our capabilities in response to the markets we seek to address.

Digital Enterprise

The energy and resources industries are also undergoing significant retooling as a result of digital disruption. WorleyParsons through our Digital Enterprise is embracing this opportunity with our customers. The following are a few examples of how we are developing and applying digital solutions for real world industry problems.

Success of a project or operation is often compromised or made less efficient by a lack of timely access to reliable information. Our digital asset offerings build fit-for purpose information assets that reflect the physical asset in the real world laying a foundation for a more data-centric (and efficient) operation.

Evolve is our proprietary asset data remediation platform; a fieldtested product that creates a reliable digital copy of critical assets in a facility and keeps the digital and physical in-sync.

For a confidential customer we collated, structured and remidated gaps and conflicts in their asset data across multiple systems and facilities using the Evolve platform. The project collected and structured 32 million data attributes across disparate data sets. 12.5 million attributes across more than 10 facilities were deemed operation critical and required remediation.

After our data science algortihm rectified the data integrity issues, the data was transfered back to over 1000 personnel restoring confidence in the information they use every day. Eliminating costly manual data processes, reduced maintainence spend, identifying redundant spare equipment were some of the operating cost reductions the customer realized which returned a program payback of months.

In partnership with leading platform developers, we are seeing the transformational effects e-commerce platforms can achieve in the enterprise world by connecting buyers and sellers together without the need of intermediaries or undue process.

Requis represents a paradigm shift for industrial projects and operations where equipment inventory is always in imbalance. Equipment surplus is capital inefficient as cash remains stuck in redundant physical assets and deficits are an operational risk. Requis brings buyers and sellers together on a global online industrial equipment and material marketplace. At the end of a construction job, a major IOC customer of WorleyParsons had a range of surplus equipment in their inventory. Using Requis to divest the surplus, the operator achieved 10 times expected value

Operating assets face many external environmental factors that impact their physical and economic performance. The challenge is providing real-time and actionable information that cuts through the data noise. We use advanced sensing, machine learning and information sharing technology to collect, interpret and distribute information to the front line, so people have the right information at the right time to deliver better results.

Fugitive Emission Control We are currently in field testing phase of an advanced technology configuration that can detect leakage remotely using drones equiped with advanced sensors. Using the sensor data our proprietary machine learning platform then quantifies the volume and velocity of emission leak. Confidential customers in USA and Canada are participating in field pilot programs with the expectation that the solution will prioritize asset repairs , minimize product loss, drastically reduce monitoring costs and assist in meeting environmental regulations.

SaltGrid HSE combines powerful data analytics with automation concepts of artificial intelligence and machine learning. Deploying this new platform allows an organization to break new ground by moving away from HSE data analysis as a means of reporting past events towards creating a meaningful and granular forecast about future state risks so that those safety risks can be targeted and mitigated in a focused way