Engineering Deans Institute

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Engineering Deans Institute San Francisco,
CA March 27, 2006
Riley Bechtel Bechtel Group, Inc
readable version 4/12/06
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Engineering Deans Institute 3/27/06

• Our History
• Our Business
• Our Talent
• Importance of our talent
• State of our talent
• State of our talent management processes
• Retention
• Development
• Recruiting
• College recruiting
• Suggestions for Engineering Schools

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Our business...

• Large complex, industrial projects in
• Oil, Gas Chemicals
• BSII (US Govt services)
• Power (fossil and nuclear)
• Civil (transportation, unique facilities)
• Mining Metals
• Telecommunications (fiber, wireline, wireless)
• Mostly full scope (EPC/EPCM), or PM
• Much repeat business
• Global reach (customers, design centers,
  suppliers)
• Very high risk, low margin, highly competitive
  industry
• ENR Rankings (Rev. Workoff)last 50 years
• 1-3 in US
• 5-8 globally
• Premiere first of a kind, tough projects

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Our growing portfolio of good work...

• Robust diversity.
• Strong performance.
• Limiting growthfocus on value of delivered
  service...budget, schedule, quality.

B
20
9 annual growth in Revenue
18
16
14
12
Backlog
10
8
6
4
2
0
96
97
98
99
00
01
02
03
04
05
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Our Talent - Importance

• Results
• Satisfied customers
• Satisfied employees
• Strong, improving work processes
• Sustainable, predictable profitability

Means

• Initiatives
• Compliance
• Zero Accidents
• Six Sigma/Performance
• Based Leadership (PBL)
• Governance
• GM/Leadership

• Thrusts
• Integrity
• Safety
• Quality
• Performance

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Our general management...

• Defined
• Integrating
• strategy,
• commercial/finance,
• marketing BD,
• project execution,
• people needs
• for
• optimized business management,
• leadership
• to
• provide a sustained, profitable business.

• Art Discipline
• World-class, dynamic balance
• strategizing/planning/doing
• big picture/key detail
• short/medium/long term
• speed/quality of decisions
• data/analysis/judgment
• investing/harvesting
• empowering/assuring follow- thru
• creativity/discipline
• getting behavior/process improvement/results
• others?

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Our general management contd...
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Our Engineering staffing (12/05 and 12/06 P) by
business unit and location...

Total Global E Population Dec 05 6933
Dec 06 9100 (plan)
Total BSII Dec 05 3139 Dec 06 4120
Total OGC Dec 05 1594 Dec 06 2075
MontrealBrisbaneSantiago
At locations throughout US UK
New Delhi
UK
Frederick, Maryland
At locations throughout the US
Note does not include JV Company staff
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Our E staffing (12/05) by discipline...

Functional, Project, Ops, General, Exec
Management
Nuclear, Environl, Geotechnical, Metallurgical,
Telecoms, Systems Engineering, Loss Prevention,
Pipeline Engineers, scientists and technicians
Note does not include JV Company staff
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Engineers (12/05) doing other than in E...
Numbers indicate minimum portion of respective
populations with Engineering degrees
360
179
863
554
308
57
Number of Career Employees (excl. M Os)
Note does not include JV Company staff
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Our engineering talents satisfaction...

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Our 3 year E revitalization

• Strengthened the role of the Chief Engineer
• Improved E career path
• Improved our E demographics
• Renewed our commitment to Technical Excellence
• Updated our processes, procedures automated
  tools
• Increased training development

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Our engineers w/ Masters degrees...

• Today, we have 919 MS - or M. Eng. - degreed
  employees
• Only 98 (10.7) earned Masters after joining us
• Civil 25
• Mech. 17
• Structural 9
• Environmental 9
• Eng. Mgmt. 8
• Nuclear 7
• Other 23 (16 areas with lt 3 each)
• We prefer to hire PhDs for leading-edge technical
  expertise
• Masters can be in the seam between PhD leaders
  BS solid practitioners
• M. Eng. is even more in the seam than MS w/
  thesis
• We encourage Masters degrees after joining us
  case-by- case (MBA for those w/ business track
  interest)

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Talent management barriers?(3/06)
Note Underlining indicates those issues directly
related to career development
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Retaining our 2006 actions (Work-in-Process)...

• Challenging, rewarding work
• Accelerate development
• Educate, coach, and consequate supervisors
  feedback to every employee
• Continue to increase diversity
• Work on candidate pools...dont compromise
  quality and undermine diverse candidates success
  by premature promotions...do accelerate
  consideration
• Work-life balance, decreasing mobility, dual
  career households?
• Reward extraordinary flexibility, but accept the
  more typical needs and preferences.
• Realize that new recruits/imminent retirees
  needs are increasingly similar...flexible hours,
  telecommuting, less moving, etc
• Pull/push up newer talent, including by making
  room for them
• This ispick shovel work one performance
  review and promotion decision at a
  time...programs and systems can only encourage
  and put some visibility on what needs to be done
• Adopt Zero Voluntary Attrition philosophy
  goal...like adoption of Zero Accidents safety
  philosophy/goal in 2000 (produced very
  demonstrable improvements)

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Developing our 2006 actions (W-i-P)...

• Educate, coach, measure, consequate every level
  of management on development of their employees
• Metrics org/personal goals PBL (positively
  reinforced desired/negatively reinforced
  undesired behavior)
• Career development plans discussions multiple
  paths, flex in timing, but more accountability
  for CD results for each executive and his/her
  reporting execs/managers...cascading
  accountability
• Better balance obligations Employees
  Companys...Company is obliged to (1) create
  climate encouraging development and (2) enable
  development an individual exercises initiative to
  seek
• Exec management actions
• Take talent from organizations not moving it up
  fast enough and redeploy it to those
  organizations who will develop it
• Refine/sharpen Roles, Responsibilities,
  Authorities (R,R, As) for joint CD
  accountabilities in matrixed org. (line,
  functional mgmts)
• Find other ways to develop and promote talent
  faster (e.g. reward an executive for
  accomplishments of his/her alums)
• Quickly fix our Bechtel Opportunities
  (internal, web-based, search/match engine)

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Our recruiting, generally (3/06)...

• How does todays job seeker look for work?
• Increasingly, via Internet
• Less frequently, via relative/friend or print ads
• E school faculty continues to play important
  advisory role to our target recruits
• How do best people find out about Bechtel and
  Bechtel openings?
• Too much word of mouth
• How easy is it to apply to Bechtel?
• Way too painful
• Bechtel.com is very career-searcher unfriendly
• How easy is it for Bechtel managers to find good
  prospective employees?
• Difficult, ad-hoc, bureaucratic resistance
• Im too busy

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Our College Recruiting (3/06)

• Essential to support continued business success,
  replenish talent pool
• Baby Boomers 56 of our present population
• Must stem attrition
• College hires (losses)
• Industry average lost 32 5 years after hire
• Bechtel lost 4665 (19992003)
• We will fix this fast!

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Our college recruits (03-06) some interesting
assignments beyond our major offices...
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Our college recruiting 2006 actions (WIP)

• Get better organized
• Centralized process control (by HR) planning,
  measurement consequating (by exec management)
• Deployed (GBU) accountability for results
• Determine rigorously use best practices
• (Extreme) makeover of our website
• Refreshed, more committed/accountable exec reps
  for each key school
• More visibility at carefully targeted, key E
  schoolsour bases for targets
• quality of E program, faculty, intern/coop
  program (viz. our business needs)
• historical compatibility of E graduates to our
  culture (proxy our track record of recruiting
  retaining)
• diversity of E students (also, we will continue
  to actively recruit at traditional minority
  student schools)
• strength of our relationship with the school (but
  we need to do our part in this relationship)

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Our college recruiting 2006 actions contd...

• Actions re. key E schools contd
• Current key E schools (evolving)
• US UK India China Austr. Phil. Chile
  Total
• schools 42 4 3 4 2
  1 2 58
• new (1) 18 0 1 1 0
  1 0 21
• hires (2) 210 8 2 11 1
  0 0 232
• A-T-E (3) 235 35 10 20 12
  3 4 319
• Notes
• (1) Number of new schools added in early 2006.
• (2) Number of engineers hired from key schools in
  2002- mid 2005.
• (3) 2005 Bechtel k contributed as aid to
  education to key schools.

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College recruiting - 2006 actions contd...

• Actions re. key E schools contd
• Sharpen exec reps R, R, As
• Use only A player Bechtel recruiters (esp.
  recent hires/alumni)
• Recruit key faculty as possible to help us
  interest best students
• Earlier, more organized, and more determined
  engagement w/ targeted students
• Raise our Aid-to-Education grants
• Other?

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Suggestions for E schools

• Give us feedback on our recruiting plans
• Help expose Bechtel to best students with likely
  fit
• We seek those who are values-based,
  excellence-seeking, performance-oriented,
  globally interested
• Continue to broaden E learning, tools, and skills
  necessary for great (1) applied E (2)
  functional E management leadership and (3)
  general/ executive management leadership
• Technical and analytical basics (incl. codes)
• Specialty excellence for those interested
  (world-class)
• Inter-disciplinary breadth
• Forward-leaning, inclusive, integrative,
  sustainable, but disciplined thinking
• Communication (especially presenting w/ PPt)
• Process improvement (e.g. Six Sigma)
• Behavioral science (e.g. PBL)
• Engineering in a dynamic, demanding, matrixed,
  global world
• General management breadth/balancing for those
  interested

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Suggestions for E schools contd

• Evaluate, and as necessary seek to improve,
  quality of undergraduate E advisor programs
• Frequent, web-based feedback/survey tools would
  help identify and fix weak spots
• Continue to work together (w/others) to increase
  number of E enrollees
• Raise stature of profession
• Stem grades 5-9 diversions into non-tech and
  non-productive interests (students, teachers)
• Please feedback/comments to
• Riley Bechtel, C CEO rileyb_at_bechtel.com
• Mary Moreton, SVP for HR mbmoreto_at_bechtel.com
• Questions?