Strategic Development

Strategic development focuses on selecting the “right” opportunities early enough in the process to ensure that success options are leveraged. The graph below is a simplified illustration of the relationship between influence and investment; influence is never greater than during the strategy phase, as time progresses the baility to influence decreases and investment (cost) increases.

Influence is greatest in the beginning of any improvement initiative; expenditures are low. As time progress; the ability to influence a positive outcome decrease and expenditures proportionately increase.

Axis Global works with their clients to review their strategy for their projects, turnarounds or maintenance practices. The purpose of the strategic review is to assess and optimize existing strategies and assure that it is consistent with the business objectives.

Axis Global helps their clients increase their ability to influence a positive outcome to their improvement initiatives by focusing on developing the right strategy. Resulting in less expenditures over the life cycle of the initiative.

Strategy’s must be target oriented, consistent with the business objectives and have clearly defined short term / attainable goals that are also sustainable. These goals are implemented via change management within the organization. The long term systemic goals will be achieved as a product of system implementation.

To illustrate, consider the development of a turnaround strategy either at the facility level or across multiple business units.

Turnaround strategy development is a structured process designed to investigate and identify the reasons and drivers for TAR’s based on;

• Business drivers for shutdowns and TAs
• Mechanical integrity drivers for TAs
• Process / operations reasons (i.e. catalyst life, fouling)
• Legislative and corporate requirement
• Capital investment opportunities
• Interactions with other units and plants

The facility must consider the sources for input during strategy development in order to account for all perspectives that influence the outcome. Alignment to the strategy is crucial to success; most business initiatives fail due to inadequate alignment within and across departmental boundaries.

The strategy should consider each sources output that defines the complexity and drivers (reasons) for the initiative. This system is cyclical and should be readdressed each turnaround cycle.

In the end, the strategy should deliver and provide;

• Increased Mechanical Availability and Optimized Run-Life
• Decreased Lost Profit Opportunities
• Ensured value for the work that is carried out
• Aid to the preparation in order to improve execution efficiency