Crossrail innovation strategy - Moving london Forward
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CrossRail Innovation Strategy Moving London Forward
Foreword
Innovation is the driving force of growth in firms, industries and
economies. It guides the choices, strategies and behaviours of
the world’s leading businesses such as IBM, Google and Apple.
But firms in construction are slow to benefit from innovation. Too
often, they rely on tried and tested techniques and formulas found
close to hand.
There are real signs that UK construction is aware of the possibilities
generated by innovation. Leading firms – like Balfour Beatty,
Laing O’Rourke and Arup – have developed systematic innovation
programmes to harness the creative potential of their organisations
and supply chains.
High-profile mega projects face the same issues. They can be a
catalyst for innovation, but they can just as easily become innovation
bottlenecks. Having a clear strategy can help tip the balance.
During the preparation for Heathrow Terminal 5 in the 1990s Sir
John Egan, CEO of BAA, recognised the importance of learning and
adopting best practices from other industries, the role of intelligent Professor
client, collaborative teams, and modularity adopted from oil and David Gann CBE
gas and lean production, just-in-time logistics, and concurrent
engineering from the car industry. Since then UK construction David Gann CBE, CEng FICE is head of the
Innovation and Entrepreneurship Group
has shown the way forward for managing mega projects as and Deputy Principal at Imperial College
demonstrated by the world-class delivery of the London Olympics Business School.
and Paralympics in 2012.
He directs the EPSRC Innovation Studies
Crossrail is well-positioned to build on these successes. As this Centre at Imperial College and is Partnership
document explains, Crossrail has created a systematic process Executive of Imperial College’s strategic
for generating, capturing and replicating innovative ideas. It aims relationship with IBM through which he leads
the Digital City Lab cross-faculty research on
to raise the bar for other construction projects by making those smart city systems.
innovative ideas, technologies and practices available to the industry
as a whole. David is Chairman of Think Play Do Group. He
was previously a board member of Rethinking
In this way, Crossrail will create a legacy the construction industry Construction and Constructing Excellence,
can build on in future. an advisor to Willmott Dixon, CSC, Group
Innovation Executive at Laing O’Rourke, a
What remains is the hard part. Just as an idea does not become an member of the recent UK Government panel
innovation until it is applied, strategy does not become reality until it for the Independent Review of IP and Growth,
is successfully executed. The success of this innovation programme and is a trustee and board member of the
depends on focused and committed leadership throughout Institute for Sustainability. He was appointed
CBE in the 2010 Queen’s Birthday Honours for
Crossrail’s supply chain. I can think of no better team to get us
services to engineering.
started on this exciting journey.
Professor David Gann
Head, Innovation and Entrepreneurship
Imperial College Business School and Civil & Environmental Engineering,
Imperial College London
3
Statement
from the CEO
I am delighted to present our innovation strategy for Crossrail.
‘Inspiration’ is one of our core values, and innovation is a key
part of this value. Innovation is also a subject I am passionate
Contents
about but is not one that is often associated with construction.
I am confident that we can change this by developing a strategy
on Crossrail where people are encouraged to think differently.
If we get it right we will see a level of innovation that is
unprecedented on a major programme like Crossrail.
On Crossrail, we are delivering much more than a railway project.
We are developing the sites over our stations, creating new
public spaces across the capital as well as providing skills and
employment opportunities. We are all ‘Moving London Forward’.
But we should also use this opportunity to raise the bar across
the construction industry, one that for too long has been too Introduction 6
focused on ‘pushing’ risk down the supply chain and giving too
little thought to how we should be ‘pulling’ opportunities, and
innovation up the supply chain.
Best Practice 6
Andrew If we all share in this view we can use Crossrail as a platform
to generate new ways of working. But this can only happen if Our Vision 8
Wolstenholme OBE Crossrail first creates an environment where people feel they
Andrew Wolstenholme graduated from
Southampton University in 1981 with a 1st
can safely exchange ideas across organisational boundaries,
collectively build innovative solutions, gain the required support to
Our Strategy 9
class honours degree in Civil Engineering. develop the idea and receive recognition when they are successful.
He served in the British Army for 5 years,
first in the Royal Engineers and later as an
The participation of you and your colleagues is critical to the Our Model 10
success of our innovation programme. The first step is to
Our Policy 11
Irish Hussar. He resigned his commission in
1985 to pursue a career in engineering and recognise the innovative practices you or your team already
joined Arup, the international engineering employ, and then to share them with others.
consultants, as a bridge designer.
He was later seconded to Schal Associates in
I look forward to all of your contributions so that together we can
make innovation an integral part of Crossrail. The 3Cs 11
Chicago where he worked with some of the
Innovation
great American architects on tall buildings. He
moved to Hong Kong in 1992 and worked on a
number of the major infrastructure projects in
South East Asia, including Hong Kong Airport Readiness Levels 13
and the Western Harbour Tunnel Crossing.
Andrew joined BAA plc. in 1997 as
Construction Director on the Heathrow
Andrew Wolstenholme
Chief Executive Officer, Crossrail Innovation Pathway 14
Express Rail Link. He went on to be the
Programme Director on Heathrow’s £4.3bn
Terminal 5 and later became BAA’s Director of Methods 15
Capital Projects. He joined Balfour Beatty in
2009 and left, as Director of Innovation and
Strategic Capability, in 2011 to take up the Themes 15
Chief Executive role at Crossrail.
He was awarded an OBE for services to the
construction industry in June 2009. Portfolio 16
Research 18
4
Introduction What is Innovation?
Developing this strategy requires at one end of the spectrum to Innovation involves varying degrees
Crossrail is delivering a world a great deal more to do . a clear definition of what we radical changes associated with of risk and requires different
class railway that fast tracks Raising the performance mean by ‘innovation’. Innovation breakthrough products, disruptive resources and processes for its
the progress of London. It bar to the next level is the successful commercial change and new-to-the-world successful execution. In contrast
has developed an innovation requires strategic efforts exploitation of new ideas. It refers ideas at the other end. A great to the highly uncertain process
strategy to improve the to promote innovation and to the scientific, technological, deal of innovation takes place surrounding the introduction of a
delivery of the project and learning from one project organisational, financial, and in the middle of the spectrum breakthrough concept, incremental
create a legacy to improve to the next. Innovation business activities leading to the where organisations develop and innovation encourages less risky
the performance of the UK is surrounded by risk and commercial introduction of new or produce new products, process improvements by extending
construction industry. uncertainty. The question substantially improved products, and services for existing markets existing processes, products
is: How can we exploit the processes, services or entire and customers. Innovation does or services. Innovation always
Much has been done over
innovation capabilities business models. not depend on new technology. An involves change.
the past two decades to
of the Crossrail supply organisation can develop radically
promote innovation in Innovation can be incremental or
chain to create a high- new products – such as Apple’s
construction, through the radical. It ranges from incremental
performance railway without iTunes and iPod platform – using
adoption of lean design improvements in existing
sacrificing affordability, established technologies.
and production techniques, products, processes and services
safety or the environment?
modular and pre-fabricated
This document outlines
assemblies, integrated
Crossrail’s strategy for
project teams and digital
meeting this challenge.
technologies. But there is
Best practice
Crossrail is learning from connect these with internal investing accordingly. It is
organisations outside the capabilities. Open models time for the organisations
construction industry that are being introduced in managing mega projects
have world-class innovation industries as diverse as to start running with this
programmes. These design (e.g. OpenIDEO), baton, but this journey will
organisations – such as hardware development (e.g. not be without difficulties.
Procter and Gamble, Rolls Arduino), consumer products
The world’s leading
Royce, Siemens and IBM – (e.g. P&G), documentation
innovators such as Google,
have created programmes (e.g. Xerox) and mining (e.g.
Apple, GlaxoSmithKline
to support rapid and AMIRA International).
and Toyota are permanent
systematic innovation. What unites these
organisations. They develop
Many are moving away innovating organisations
corporate strategies to
from traditional ‘closed is their ability to excel at
support innovation over
innovation models’ based on creating and capturing value
many years. Mega projects
in-house R&D, production from innovation.
like Crossrail, in contrast,
and marketing processes to
The construction are temporary coalition of
take their new discoveries
industry has long avoided firms. The firms involved
and intellectual property (IP)
investing in processes are both collaborators and
to the market themselves.
for managing innovation. competitors and this creates
They are now establishing
There are signs that this new challenges.
‘open innovation models’
is changing. Leading firms
to search for the best
are recognising the value
external ideas, discoveries
of formal innovation
and technologies and
management processes and
6
our
vision
Crossrail has broken the mould in UK organisations. It focuses on building the
construction by being the first organisation organisational mechanisms and culture
to develop a strategy and process for required to broker innovation between the
managing innovation in mega projects. different parts of this ecosystem.
Some of the UK’s previous mega projects
(e.g. High Speed 1, Heathrow Terminal Figure 1 shows our vision for an innovation
5 (T5) and the London Olympics 2012 strategy at Crossrail including
construction) have taken important steps processes that:
to institutionalise innovation in mega enerate, develop, codify and formalise
G
projects. However, efforts have often innovation in Crossrail’s design,
been informal and lessons have not been construction and handover to operations
fully captured. Previous projects focused
enchmark and measure innovative
B
on creating novel approaches to project
improvements
delivery (e.g. BAA’s T5 Agreement) rather
than establishing a process to promote apture and transfer lessons to
C
innovation within and beyond the life of the future projects
project.
Open models of innovation provide a
toolbox better suited to tackling the
challenges which have historically made
the management of innovation so difficult
in mega projects. Our open approach
views the mega project as an ‘ecosystem’
of many diverse and interconnected
Our
Figure 1. Crossrail’s innovation vision
Lessons for other projects New/Better
* Products Worldwide Strategy
crossrail 2 * Services Crossrail’s strategy is to While some ideas can be everywhere.’ Smart risk taking
Thames Tunnel * Processes deliver a world-class railway generated locally by individuals will be encouraged and embedded
where innovation goals are and teams, many novel solutions in corporate values. Ultimately,
etc clearly targeted as everyone’s require people to look beyond innovation needs to become an
responsibility, and collaboration established boundaries. Members essential part of the mind-sets,
Innovation in designing it
I nnovations that relate
across the programme’s of the Crossrail programme will routines and behaviour of people
Crossrail in operatiaony boundaries is used to create be encouraged to break with from different collaborating firms
=World class railw
a legacy that moves London traditional ‘business as usual’ working as part of the same
forward. practices and participate in an organisation.
Innovation in building it
open minded, creative exploration
Crossrail’s innovative activities
of new possibilities.
have been systematically aligned
with the programme’s overall To become effective innovators,
cT RL T5 Olympics Innovation in running it vision and goals. Achieving and
maintaining alignment will require
people must believe that their
organisation welcomes and
Lessons from Previous Projects determined leadership throughout encourages the generation
the project. of ideas ‘from everyone and
8 9
our OUr
Model Policy
Figure 2 presents the Crossrail Innovation readiness levels Themes – all innovation Crossrail’s innovation policy It consists of a statement of decisions. The policy has been
innovation model and identifies – guidance on how ideas are activities fall under a theme is a statement of intent and purpose, the policy’s applicability tightly aligned with Crossrail’s
the key building blocks required selected and developed based associated with Crossrail’s commitment to fostering, and scope, the responsibility for values of safety, inspiration,
to achieve Crossrail’s innovation on their readiness levels priorities and opportunities nurturing and incentivising delivering it, and clear principles collaboration, respect and integrity.
strategy including: innovation across the programme. to guide innovation investment
Methods – logical and Roadmap – a visual tool that
I nnovation policy – a statement systematic process for enables innovation to be
of intent and strategic
commitment
facilitating innovation from
idea generation through to
development, implementation
managed as a portfolio
The 3Cs
3 Cs of innovation –
collaboration, culture and and legacy Collaboration, Culture and partners varies depending on model is not limited to current
capability Capability (shown in Figure 3) are whether participation is open or stakeholders but can open up to
the three key enablers fostering, closed, and whether governance is access resources through R&D
nurturing and incentivising hierarchical or flat. funding mechanisms supported
POLICY innovation across the Crossrail
programme.
Crossrail has established a new
by government bodies such as
Engineering and Physical Sciences
governance structure, the Crossrail
Research Council, Technology
Collaboration Innovation Forum, to help drive
the collaboration required to
Strategy Board and EU.
Crossrail is driving innovation by
execute its strategy. Collaboration The key elements
building effective collaboration
consumes resources and budgets. of collaboration and
among partners in the supply-
Developing a funding model in organisation are:
chain, including universities,
collaboration with Crossrail’s
railway operators, users and other Partnering
partners is essential. This funding
stakeholders. Collaboration among
Funding
Intellectual Property
Themes Governance
3Cs of Methods Collaboration
innovation
‘We can’t tender
innovation, it requires
Innovation ‘Nurtured from partnership’
the top-down,
readiness grown from the Culture
levels bottom up’
‘Building internally,
Capability accessing external talent and
complementary assets’
ROADMAP
Figure 2. Crossrail’s Figure 3. The 3Cs of innovation
10 innovation model 11
Culture
Culture refers to the shared beliefs, values and attitudes that Innovation
Readiness Levels
contribute greatly to successful innovation. It starts with top
management support and cascades throughout the organisation.
It requires the right resources, incentives and performance metrics.
Key elements of developing innovation culture and environment are:
Novel ideas, practices and technologies generated during the
Vision Crossrail programme are associated with varying degrees of
Leadership
Capability innovation readiness. As shown in Figure 4, we have developed a
Crossrail has assembled high-performance classification based on five innovation readiness levels (IRLs)
Strategic planning project capability through a rigorous
The vision identifies the purpose and values of the organisation. For procurement process. We have engaged
The maturity of any to implement
Crossrail, this means focusing our innovation efforts on delivering world-class organisations as our
a world-class railway that fast tracks the progress of London. And contractors, designers, technology providers
potential innovation in Crossrail. As
Level 1
Radical Innovation
at Crossrail, and the maturity of the
in doing so, reflect this through our values of safety, inspiration, and supply-chain partners. To build our
resulting readiness, 3Cs increases and
collaboration, integrity and respect. Leadership and strategic innovation capability, we will invest in:
can be assessed innovations progress An idea for a new process, service or
planning must encourage smart risk-taking, reward collaborative People & technical expertise using Crossrail’s to implementation, product that drastically redefines
efforts and create the resources to support the generation and
Tools and techniques 3Cs of innovation they may become an possible performance
transfer of novel ideas and practices.
(see Figure 5). For industry norm and
Innovation in Crossrail is the responsibility of everyone. The Data and information systems example, innovation leave a legacy for
leadership team is creating a culture and environment conducive to Training in ‘lorry drivers’ future projects. BIM
Level 2
Localised Innovation
innovation. Mark Thurston is responsible for leading the innovation safety training’ is for operations is a
Facilities
programme and providing the resources to support the brokering now an industry standard practice in
of innovative ideas among organisations in the supply chain. People with technical expertise and norm and has adjacent industries Focus on a solution for a specific problem but not
Strategic planning will ensure that innovation efforts are connected experience are fundamental to the achieved its highest such as automobile necessarily consistently performed or spread
to Crossrail’s strategic priorities. An innovation roadmap is an successful delivery of the strategy. They are readiness level. and aerospace but throughout the organisation
important strategic tool for this purpose. Portfolio management the source of novel ideas and are central Progress from one relatively new for
tools are used to manage the innovation programme that flows to turning these ideas into innovations. level to the next is the rail industry.
from this roadmap. Crossrail is developing and honing our a clear indication of These reapplied
capability during the life of the programme. Crossrail’s maturity innovations are Level 3
Reapplied Innovation
The on-line Innovation portal www.crossrail.co.uk/innovation acts
We are working with our suppliers and in: characterised by
as a single point of access for managing innovation in Crossrail.
academic partners to bring in people with a medium level
It incorporates tools to capture and promote innovation including C
ollaboration: Where an idea or solution in one area might be radical
the appropriate capabilities to broker of maturity. Their
an idea management system, a stage gate development process development of when brought into a new area. Not reinvention but
ideas and solve problems when they are reapplied nature
and reward system. Key performance metrics are being developed innovative ideas adapting something to a new context.
encountered. means that
to measure the success of the innovation programme and reward
C
ulture: organisations in
efforts. The innovation portal is now being piloted
acceptance and adjacent industries
Crossrail’s innovation culture will:
at our Liverpool St, Paddington and
adoption of have valuable Level 4
Incremental Innovation
Connaught Tunnel sites. This new tool
innovation experience that can
I nvolve people and organisations, helping them understand our aims to provide a more direct route to
innovation objectives and support leaders that take the right C
apability: benefit Crossrail.
implementation for innovative ideas across
steps to support an innovative culture implementation Rather than Small alterations to an existing process, service or
the Crossrail programme. We are working product that improves performance.
of innovation ‘reinventing the
I nspire people through Crossrail’s values, celebrating success with our industry and academic partners to
wheel’, learning from
and rewarding high-performance share and use technical data required for Innovations such as other innovators is
innovation project teams, while respecting ‘geothermal tunnel the most effective
each organisation’s intellectual property
rights.
segments’ fall into way of moving to Level 5
Industry Norm
the ‘radical’ level of the next level of
We are collaborating with our partners in innovation readiness maturity.
the education sector to provide targeted and require
significant efforts
Adopted as best practice in
training in areas of need. Our Tunnelling and the industry. (Becomes a legacy.)
Underground Construction Academy (TUCA) in development
provides an important example of an area
where this sort of thinking has already been
implemented.
Figure 4. Innovation readiness levels
12 13LEVEL 5
INDUSTRY
Methods
NORM
Figure 7 shows three connected and 1. Open Innovation: to connect and
LEVEL 4
Lorry driver
mutually reinforcing methods or processes develop novel ideas with external
INCREMENTAL safety
to promote innovation in the Crossrail communities
Increasing level of readiness
training
Optimised programme. The three methods are
2. Brokering Innovation: to capture,
LEVEL 3 Contractor sequential:
REAPPLIED Involvement coordinate and replicate innovation
within and across the programme
LEVEL 2
BIM
3. Innovation legacy: to articulate and
LOCALISED for
Operations codify lessons for future projects
LEVEL 1
Fibre Optics-
RADICAL Geotechnical
Monitoring Figure 5. Innovation
1
Geothermal readiness and
Tunnel capability maturity
Segment
OPEN
Maturity of collaboration, culture, and capability
INNOVATION 2
Innovation BROKERING
INNOVATION
Pathway
IRLs provide a simple way of after only passing through one or The Crossrail approach will assess
assessing how innovation is two stages. Innovation pathways the readiness level of an innovation
progressing on the path of maturity. identify and measure the progress and then track progress along
Each may have a different starting
point and follow its own distinct
path. Some will become widely
of maturity. These pathways, as
illustrated in Figure 6, are a result
of an organisation’s efforts (or
these pathways using the 3Cs
maturity model. Clear management
guidelines help to identify the
3
adopted as an industry norm,
while others may be abandoned
investment) to turn a novel idea into
an industry norm (or a legacy).
efforts needed to move forward.
INNOVATION
LEGACY
Radical Innovation
Level 5
Localised Innovation
Industry
Themes
Efforts (Investment)
Norm Figure 7. Methods
of innovation
Reapplied Innovation Crossrail has identified three
fundamental themes to
provide direction.
These are:
Incremental Innovation Delivering efficiencies Digital-physical integration Sustainable solutions
Figure 6 . through the life cycle BIM Economic
Innovation Safety Smart Technologies Social
pathways esign for manufacturing,
D Environment
assembly and operations
Integrated systems
Asset management
14 Innovation Maturity 15Portfolio
Crossrail manages innovation as
a coherent portfolio of projects Figure 8.Crossrail’s
across the programme. Managing a innovation portfolio
portfolio reduces the risk of ‘putting
all your eggs into one basket’ and Strategy
provides the senior executives in the
Crossrail Innovation Forum with the
granularity of information required
Funding
for effective management. Figure Themes
CIF
8 shows how Crossrail’s innovation
portfolio is being managed.
1
Capability
Innovation Culture 5 1. T
he Crossrail Innovation development as projects. reports performance data
Team Forum (CIF) is the executive
nce projects are selected, they
4. O
across the whole portfolio. This
body charged with providing combination of data enables the
are added to the innovation
governance and direction CIF to decide whether there is
roadmap. The roadmap acts as a
to Crossrail’s innovation an appropriate balance between
Collaboration programme. It draws on
visual strategy tool. Clusters of
the innovation themes and
Good Ideas Crossrail’s corporate strategy
projects are classified by theme
determine whether the projects
and their schedule plotted by
IDEAS to develop a core set of themes
that the innovation programme
time. The initial innovation
within these themes are aligned
with Crossrail’s organisational
readiness level of the project
Projects
2 will target. These themes
organise Crossrail’s innovation
is assessed and the target
strategy. The quarterly CIF
meetings provide the forum for
3 PORTAL innovation readiness level is
projects into a coherent portfolio making these judgements and
reported.
and link these activities back to for any re-alignment required
4 the overall strategy. 5. T
he roadmap is used to report in either the themes or the
information about the Crossrail projects.
2. T
he innovation portal provides
innovation portfolio to the CIF.
2012 2013 2014 2015 2016 2017 2018 2019 a platform to capture, track,
All projects are colour coded Crossrail’s Innovation Team
and develop innovation across
Innovation projects by theme and clustered by theme, this is currently collaborating with
the Crossrail supply chain. The
enables the CIF to monitor Imperial College London and
Property acquisition innovation team mobilises the
and manage the distribution University College London to
Crossrail supply chain by using
Design & Procurement of the portfolio across the pilot these processes across
all internal communication
programme. Each theme has three of our sites: Paddington,
Enabling works channels to encourage
an information tag that reports Liverpool St and Connaught
stakeholders to submit their
Central section works - tunnelling & stations key performance metrics (e.g. Tunnel. These pilots will provide
ideas for innovation into the
size of investment, number data on how we can improve
Systems procurement Systems installation portal.
of projects, % of projects our innovation strategy before
Rolling stock and depot – spec, procure, build (CRL) 3. T
he best innovations submitted across maturity and IRLs). it is rolled out across the
Testing/commissioning
to the portal are selected The roadmap is summarised programme.
by the innovation team for by an information table that
Trial operations/
staged opening
16Research
Method In-depth interviews with 15 key informants
The core input to this strategy’s were used to gather detailed information
development has been research conducted about innovation across key areas of the
by Prof. Andrew Davies from the Bartlett programme.
Faculty of the Built Environment at
External Scan
University College London, Dr. Sam
The external scan was designed to gather
MacAulay and Dr. Dheeraj Bhardwaj from
evidence on how world-class organisations
the Innovation and Entrepreneurship Group
manage innovation.
at Imperial College Business School, and
the input of people at Crossrail, especially Analysis was focused on organisations in
Mark Thurston and Tim DeBarro. the design, engineering and construction
industries, asset owners (e.g. Network
The research programme consisted of two
Rail, Infrastructure Ontario), professional
components: 1) The Innovation Status
institutions and forums, mega projects (e.g.
Report; and 2) The External Scan.
T5, London 2012), as well as organisations
Innovation Status Report in adjacent industries (e.g. Oil & Gas,
The internal scan carried out for the Aerospace and ICT).
Innovation Status Report was designed
Detailed analysis was conducted of annual
to provide insight into what innovation
reports and corporate strategies, interviews
existed within the Crossrail programme and
with innovation leaders, academic
how it was currently managed.
literature, practitioner literature and
Relevant Crossrail documents, including personal experience.
the Delivery Strategy, Systems Integration
Strategy and Lessons Learned Procedure,
were reviewed.
18TOGETHER
WE’RE
MOVING
LONDON
FORWARD
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