Owner’s Role in Shutdown Planning

By Brittany Stivers

Shutdowns and turnarounds are intense, high-risk periods where planning, execution, and accountability collide under immense pressure. At the center of that collision stands the owner team, responsible not only for the outcome but also for navigating the fine line between control and delegation.

Too often, owner involvement is either overwhelming or nonexistent. In one case, we see micromanagement grind productivity to a halt, with contractors second-guessing every move they make. In another, we find that owner teams are checked out entirely, resulting in lost visibility, missed milestones, and a lack of strategic decision-making when issues emerge.

In shutdowns, neither extreme works. The owner’s role must be intentional, structured, and adaptive. Knowing when to step in—and when to step back—isn’t just leadership instinct. It’s a core strategy that can determine whether a shutdown finishes on time, on budget, and without incident.

Understanding the Dual Responsibility of the Owner Team

The owner team in a shutdown project carries two simultaneous responsibilities: governance and enablement.

Governance involves establishing the scope, budget, expectations, and success metrics, and ensuring that all parties are accountable to them. Enablement means empowering the execution team to perform without constant interference. When executed correctly, these two functions establish a robust operational foundation.

Problems arise when owners focus solely on governance without providing support, or vice versa. An internal audit from a Canadian energy firm revealed that in 43% of their delayed turnarounds, owner teams failed to respond to emerging risks within the required timeframe. In most cases, the root cause was the absence of clear delegation protocols or overly centralized decision-making processes.

In contrast, in shutdowns where the owner’s team maintained an active—but—not—controlling presence, issues were escalated and resolved 25% faster on average.

When to Step In: Critical Moments for Owner Involvement

Certain milestones and inflection points demand direct owner engagement. These are the moments where strategic oversight, organizational authority, or high-stakes decisions require owner visibility.

1. Scope Definition and Freeze

Owners must lead the scope definition process, not merely approve it. Scope alignment is a strategic decision that impacts asset integrity, compliance, and production. Late scope changes, without proper owner review, are one of the most expensive mistakes in shutdown execution. Owners should participate in scope review workshops, risk-ranking exercises, and sign off on the freeze.

2. Contractor Selection and Alignment

Although owners may not manage contractors on a day-to-day basis, they are responsible for ensuring that contractors understand the expectations, culture, and standards of the site. In high-performing shutdowns, owner representatives participate in pre-mobilization briefings and ensure that contractor goals align with shutdown success metrics.

3. Critical Path Deviation

Any deviation from the critical path schedule demands owner input. Whether it’s a significant equipment delay, safety incident, or access restriction, owners must weigh in on risk tolerance, recovery options, and contingency spending. These are not decisions field teams should make in isolation.

4. Budget Contingency Release

Budget overruns are rarely due to one significant decision—they’re often the result of hundreds of small ones. But when it comes to releasing contingency funds, owner involvement is non-negotiable. These moments require a review of cost-benefit scenarios, alternatives, and long-term implications.

5. Safety or Environmental Incidents

Any event with the potential for injury, environmental impact, or reputational damage must trigger an immediate response from the owner. Beyond compliance, this signals leadership commitment to values and sends a clear message that risk is never acceptable.

When to Step Back: Avoiding the Pitfalls of Micromanagement

Just as damaging as absence is over-involvement. Shutdowns that stall often suffer from owners trying to make every decision, approve every work front, and double-check every change. This strips authority from execution leads and creates a bottleneck in field operations.

1. Field-Level Task Execution

Owners should never manage wrench-time activities. Assigning daily tasks, coordinating toolboxes, and issuing permits are responsibilities of the execution team. When owners involve themselves in this layer, they introduce confusion and delay.

2. Sequence Adjustments Within a Frozen Scope

Once the scope is locked and execution underway, adjusting the order of tasks to optimize flow should be left to planners and field supervisors. Owners should focus on outputs, not methods.

3. Day-to-Day Progress Tracking

While owner teams need visibility into schedule health, they should rely on dashboards and summaries rather than participating in every update meeting. Trusting the reporting system—and the people managing it—is essential.

4. Conflict Resolution Between Contractors

Unless the issue involves scope, safety, or contract violation, minor conflicts between contractors should be handled by the turnaround manager. Owner interference favors one party, undermining neutrality.

A large U.S. refinery implemented a structured delegation model in 2022, clarifying owner roles across four tiers of decision-making. The result was a 19-day shutdown that finished two days early and 7% under budget, with zero recordable safety incidents. Owner teams focused on governance, while field teams executed with autonomy within the parameters defined by leadership.

Building a Decision Governance Model

To execute this balance effectively, owner organizations need a decision governance model. This model lays out:

• Decision Types: Strategic, tactical, operational
• Authority Levels: Who decides, who approves, who is informed
• Escalation Paths: When to involve senior leadership
• Response Time Standards: How quickly issues must be addressed

For example, budget changes exceeding 5% may require executive sign-off, while the turnaround manager can resolve schedule deviations of less than 12 hours. Clear boundaries empower faster decisions and prevent unnecessary bottlenecks.

A 2023 mining shutdown in Australia credited its successful delivery—on time, on budget, and with high contractor satisfaction—to a pre-approved governance charter that was distributed to all project participants. This not only clarified roles but also created a culture of accountability and speed.

The Human Side of Leadership During Shutdowns

In high-pressure shutdown environments, emotions run high, and stress can spike. Owner teams that maintain calm, visible leadership set the tone for professionalism, problem-solving, and collaboration.

Presence matters. Walking the site, engaging with contractors, and participating in key meetings—even as an observer—reinforces alignment and builds trust. But this presence must be constructive. Owners should ask questions, rather than issuing orders. They should listen for concerns, rather than micromanaging execution.

Psychological safety matters, too. When field teams feel empowered to raise issues without fear of blame, shutdowns are safer, smoother, and more productive. Owner teams play a key role in setting this tone.

TMG Helps Owners Lead Effectively—Not Excessively

At TMG, we understand the delicate balance required in shutdown leadership. Our Owner’s Team services are built to enhance—not replace—internal leadership structures. We embed experienced professionals who guide scope, schedule, contractor alignment, and risk management, all while reinforcing the authority of the project team.

We help define governance models, facilitate decision-making frameworks, and act as strategic partners during the most critical phases of the shutdown. The result? Owners who lead with confidence—stepping in where needed, stepping back where appropriate.