Beyond the Launch: Operational Readiness as a Driver of Strategic Value

TRANSFORMATIONCOST MANAGEMENTAI

Jose Cortinat

5/8/20242 min read

In capital-intensive projects, "success" is often celebrated at the ribbon-cutting ceremony, with the completion of construction. However, this is a pyrrhic victory if the transition to full operations is chaotic and destructive in terms of value. The real battleground for the return on investment is not the construction site, but the ramp-up phase. It is here that the project's value, carefully modeled over years, is either created or destroyed. The urgency of this challenge is undeniable: Deloitte studies reveal that approximately 30% of a project's value is lost during the startup and commissioning. This is not a simple setback; it is a strategic hemorrhage that undermines the fundamental premise of the investment.

The Reactive Paradigm: Operational Readiness (OR) as a Checklist

Traditionally, Operational Readiness (OR) has been approached as a late phase of the project. This reactive approach operates under "the tyranny of the schedule," where the primary goal is to meet construction milestones, relegating business preparation to a secondary role. But why does this destructive paradigm persist? It is a combination of schedule pressure and a mistaken perception of ROI; as industry experts point out, many asset owners delay OR planning because they feel it is "not worth the investment at that time". This calculation is fatally flawed. This paradigm is the root cause of the failures that systematically erode the project's Net Present Value (NPV): startup interruptions, premature equipment failures, and critical skills gaps, as illustrated by the cascade of value destruction in industry analyses.

The VSC Approach: OR as Early Value Architecture

At ValueStrategy Consulting (VSC), we reject the reactive model. We conceive Operational Readiness not as a phase, but as a strategic discipline that must be integrated from the conceptual stages of the project lifecycle. Our proactive approach, driven by our 360° OR Vision," is based on the VSC "Preparation Triangle," a holistic framework that ensures the early and continuous alignment of three fundamental pillars:

  • Organizational Readiness: Focuses on people, culture, and structure. We ensure teams are staffed, trained, and culturally ready to take ownership of the new asset.

  • Technical Readiness: Centers on assets and systems. We guarantee that equipment is safe, functional, maintenance strategies are defined, and master data is loaded into the CMMS/ERP long before startup.

  • Operational Readiness: Addresses processes and procedures. We design and validate workflows, interfaces, and management systems that will govern the asset in steady state.

By integrating OR from the beginning, we transform the expenditure. Instead of incurring high costs for risk mitigation in late stages, we generate opportunities for savings and value maximization starting from the design, ensuring a fluid transition and an accelerated path to profitability.

The Hidden Cost of a Successful Launch

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