‘The Washington Way’ Leads to Success
Profile
By Staci Davidson   
Sunday, 31 July 2005
smc Washington Group International's innovative, extensive training ensures success
Innovative and extensive training programs ensure Washington Group International delivers consistent, quality work on every job, regardless of how challenging a project is.

In May 2003, when a series of violent tornados hit the General Motors assembly plant in Oklahoma City, Washington Group International was called on to restore the operation - the very day of the tornado. Producing the Chevrolet Trailblazer EXT and GMC Envoy XL SUVs, this was one of GM's most profitable plants, so it was urgent to get the facility back online. This was no easy task, however, explains Tom Zarges, Washington Group's senior executive vice president of operations.

“Our firm was the original builder of the plant, and we had a great relationship with GM, so we were called in immediately,” he says. “We needed to appraise the damage, but when I got there, it looked like a bomb had gone off. The SUVs were rolled into balls - it was just metal around an engine. The plant was ripped apart and the buildings were off their foundations.”

Initial assessments of the damage showed it would take six months to get the facility online again. Zarges explains sections of the plant had to be rebuilt, the facility needed a new roof and siding and the utility lines had to be reinstalled. The team that would tackle these and other challenges consisted of 400 GM employees and 1,600 contractors and vendors.

“We mobilized one of the best construction teams ever,” Zarges says. “Everyone worked around the clock and we were able to have the plant back online in seven weeks. GM was thrilled.”

Washington Group led 30 contractors - working day and night - to get this job done. The group cleaned up the debris from the tornado, then placed 500,000 square feet of roofing, 500,000 square feet of siding, four miles of new fencing, two cooling towers, 20,000 feet of power cable and 300 tons of structural steel.

“GM recognized us for our extraordinary innovation and service on this project,” Zarges says. “We are proud of it because not only did we complete a great deal in a very short amount of time, but we also maintained a wonderful safety record. We were happy it was so successful and proud that we were able to mobilize so many of our people across the country and throughout many operating units to make a difference for GM.”

Based in Boise, Idaho, Washington Group works in more than 30 countries, providing customers with professional, scientific, management and development services. The core markets it serves are power generation, transmission and distribution; environmental remediation; heavy civil construction; mining; nuclear services; defense, homeland security and global threat reduction; industrial, chemical and pharmaceutical processing; manufacturing; facilities operations and management; transportation; and water resources.

A Common Approach
To maintain a high level of service to each of its market sectors and excel at projects like the Oklahoma City GM plant, Washington Group relies on “The Washington Way.” Zarges explains this involves rigorous training of the company's employees on the same systems, methodologies and processes; as a result, when staff members from across the country are needed on a project, they can easily work together.

“We want our people to have common approaches to the fundamental construction paths that will lead to performance excellence,” he says. “The GM project was proof of concept that what we were doing in training and with our project personnel leadership had merit and paid off.” Developing “the way” was especially important to Washington Group, which is made up of approximately 20 companies, some dating back to the late 19th century.

“We created it out of necessity,” Zarges says. “We wanted everyone in the organization to have the same framework, same training and same attitude toward the work. It was all geared toward getting everyone - from multiple legacy companies - on the same page so they could make judgments in the same way and we could have as much shared experience as we could get.”

To allow the entire organization to have a core understanding of how to operate, Washington Group developed a series of training protocols. The company also teamed with the Construction Industry Institute (CII) to integrate best practices from throughout the industry.

Once the training sessions were standardized, the company created a series of written procedures. Washington Group then built 27 training modules, which are between six and 20 hours in length. Zarges explains each covers a different element of a job in terms of its functional areas and phases; topics include safety, planning, controls, forecasting, estimation, costing, scheduling and various other mandatory job duties.

“We believe this is the most extensive training program in the construction industry,” Zarges says.

The company began by training all key operational personnel who were then responsible for training their project teams. Zarges explains other training programs aimed to develop Washington Group's project managers as company leaders. This included a number of mandatory and recommended classes that taught them to better judge project risks, inspire team members to use their own best judgment throughout projects and instruct them on the protocols of new management information flows.

“Through the training, we wanted everyone to have a common definition and understanding of how they need to work together,” Zarges says. “We want our people to be the best trained and setting the highest standards of performance in the industry. We've found that teams that are collectively motivated make each job more refined and efficient.

“We've invested about $50 million a year in training and education. It's significant; our net income as a company in 2004 was $51 million. We know the investment is making an impact. We believe the industry is defined by talent, and unless we invest in our people, we won't get the results we want. With effective employee development you achieve superior operational performance, and that translates into profitability and growth.”

Washington Group's top priority is employee development. It's the first element of the company's three-fold mission and is critical to the company's vision of being the world's top-performing engineering, construction and management solutions company.

In fact, the company's employee development efforts have been recognized nationally. Washington Group International was named one of the 2005 Top 20 U.S. Companies for Leaders, along with 3M, GE and Johnson & Johnson. It was the only engineering and construction company on the list, which is sponsored by Hewitt Associates and the Human Resource Planning Society.

“Our innovative and talented work force applies advanced technologies and performance excellence in areas including international security; clean, efficient energy; transportation and water systems; environmental management; and engineering, construction and management services for life sciences, oil and gas, manufacturing and other markets,” says Stephen G. Hanks, president and CEO. “We're making a difference around the world with what we believe is the best team in the business. And we're continuing to improve through ongoing employee development.”

The company's safety training, culture and results also have been nationally recognized. Washington Group was named one of America's Safest Companies by Occupational Hazards magazine.

'Stimulating and Exciting'
With its focus on employee development and its superior performance on projects, the Washington Group has achieved excellent financial performance including double-digit increases in profit and new work booked. Growth for the firm, Zarges explains, will continue with it having challenging work. Challenges, he says, help ensure low turnover among its employees.

“Good people love jobs and they want something stimulating, whether that's in terms of the design and construction or the location,” he says. “We offer a variety of work and sophisticated programs.”

For example, he notes, Washington Group has done approximately $1 billion worth of work in Iraq and Afghanistan, and many employees volunteer for those jobs because of their inherent challenges. The company also has worked in a number of high-hazard nuclear process areas for the Department of Energy, such as the Hanford Waste Treatment plant and the Idaho National Laboratory. Zarges notes the company also performs a large number of clean air retrofits in power plants, which can be demanding.

“Challenges keep people sharp and interested in performing well and coming up with creative solutions,” he says. “We work in a lot of interesting areas. We're destroying nearly 80 percent of the chemical weapons stockpiled by the United States. We're breaking new ground in homeland security. Our work in overseas mining operations is demanding, as well. The size and scale of those jobs are very stimulating. The list of intriguing projects goes on and on.”

Zarges explains Washington Group will continue seeking out challenging opportunities in a variety of growth markets. The company is confident, he says, that with its investments in training and people, it can meet any challenge it faces.

“Our people have a willingness to constantly stretch their capabilities,” he says. “This gives them opportunities for advancement and shows the training pays off. We don't want to be the biggest. Instead we want to be the best engineering, construction and management company in the world. We would love to be known not only for our work but also for having the best employees, and we are on track with that.”  

 
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