The Shipping KPI project

1. The Shipping KPI project Status and conclusions from the Lloyd’s List Conference 2006-10-13 Limassol, Cyprus Egil Rensvik, Torkel Fyrvik MARINTEK (Norwegian Marine Research Institute) and Svein Sorlie, Wilh.Wilhelmsen, ASA

2. Content • Status of the Shipping KPI project • Presentations at the Lloyds List Conference 12th October • Workshop – discussions

3. Project Management and Interaction with participants Develop SPI & Report Card Develop KPI Depository Establish project Dissemination and Communication Implementation by industry (convergence) 2007 2008 2009 June 2006 October 2006 The main project activities • Project period: June 2006 – December 2008 • Implementation will be performed by the individual companies (Performance Indicators system revision)

4. Step 1: Develop KPI Depository • Find the balance between the political, rational and emotional process • Create industry wide “ownership” to the concept vs. deliver tangible progress (KPI’s) for the project participants (find a solution to the “not-invented-here-syndrome”) • “Bottom-up” approach. KPI depository (and KPI hierarchy) developed based on current use of KPIs • Activities & Deliverables: • Depository structure • Mapping of KPIs used in ship management today • Alignment and refinement of KPIs • Discussion of parameter characteristics • Recommended KPI’s with definitions • Guidelines for data reporting/capturing

5. Activities next 6 months • Individual discussions with stakeholders and interest organizations • TMSA / OCIMF • Intertanko • BIMCO • etc • Regional workshops Nov 2006 – April 2007 • Singapore • Hamburg • London • US East coast • Tokyo • Dubai • Hong Kong • Establishment of the Steering Committee • Dissemination • Interactive communication with participants/ stakeholder • Participation at conferences • Articles in professional magazines and publications • WEB site / Depository

6. More information? Egil.Rensvik@marintek.sintef.no Torkel.Fyrvik@marintek.sintef.no Svein.Sorlie@wilhelmsen.com Visit us at: www.shipping-kpi.com

7. The Shipping KPI project Conclusions from the Lloyds List Conference 2006-10-12 Limassol, Cyprus

8. Key Performance IndicatorsBy Captain Bill Lunn • KPIs: What they are and what they are not! • Do we need KPIs? • What constitutes a good KPI? • Sharing KPI information outside our own companies: possible problems • Common methods of measuring KPIs • Intermanager’s KPI project: looking at reasons why the industry needs to set common KPIs

9. The Shipping KPI Project… a joint industry initiativefor excellence in ship management … Svein Sorlie, Wilh. Wilhelmsen ASA Egil Rensvik, MARINTEK Lloyds Ship Management Conference 2006 Limassol, Cyprus

10. Background and project establishment Project idea Challenges and opportunities Objectives Participants – Sponsor group Commitment Next steps Contents

11. Workshop purpose • KPI in your organization • focus, • use and • need for development • Depository discussion • How should the depository look? • What is the content? • How will/should it be used? • Identify important KPIs • AS-IS mapping of KPI’s • E-mail contacts • Separate meeting • Arrange regional workshop

12. The Shipping Performance Indexes (SPI) are supported by an indicator structure Ship Management Report Card … SPI 1 SPI 2 SPI n KPI 1 KPI 2 KPI n KPI a KPI b KPI 3 KPI 4 KPI 5 KPI c KPI d

13. The Shipping KPI project Summary of Limassol workshop

14. Workshop purpose • KPI in your organization • focus, • use and • need for development • Depository discussion • How should the depository look? • What is the content? • How will/should it be used? • Identify important KPIs • AS-IS mapping of KPI’s • E-mail contacts • Separate meeting • Arrange regional workshop

15. Conclusions • The audience expressed enthusiasm about the project and the objectives. Both conference delegates and workshop participants • The project need to be more clear on scope • We are creating a system/tool for performance measurement and reporting • We are not creating a database for recording of performance • The project creates a basis for such a database and possible benchmarking • Common performance databases and benchmarking services will/may be post project activities/objectives.

16. Conclusions • How will we relate to TMSA? • We are looking at the process output while TMSA looks more at the process management. There should be no conflict between the two. • Performance Indicators exist on all levels. • A Key Performance Indicator is an indicator you have chosen because it means more for YOU. • The project is a lot about communication. • We create a common language for the industry exchange information on performance • The main challenge is to gain support from all stakeholders • Without a industry wide acceptance the project will not succeed.

17. The KPIs will have different objectives on different arenas • Improved reputation (towards public opinion) • Awareness of performance measurement importance and documentation of active involvement in developing standard KPIs • Enhanced transparency about ship operation issues • Improved performance (within shipping companies) • Enhanced alignment between strategic objectives and performance measured • Increased ability to align own objectives and stakeholders requirements • Documentation of performance • Standardized Shipping Performance Indexes (shipping community) • Unambiguous definitions of performance measures • Internationally accepted standards between stakeholders • Proactive development of shipping quality standard • Capture best practices • Enable the leaders to excel and the followers to improve • Self regulation is a defense against over-regulation