From Alignment to Custom Strategy Development...• Achiever - visualize progress, clear tangible...

© Lean Construction Institute©BBC 2016

Unlocking the Full Potential of Teams:

From Alignment to Custom Strategy Development

Andreas Phelps & Mark Konchar / October 6, 2016


Owner Satisfaction


Industry Efficiency

Most who never

heard of Lean think

the industry is Efficient


Related to Schedule, Cost, Quality and Safety

˃ The highest percentage of owners (63%) say that keeping to or being ahead of the project schedule is valuable,

followed by 57% who say that having low costs or being under budget is also valuable.

63%

57%

47%

38%

33%

13%

22%

Project Schedule

Cost/Budget Control

Safety

Quality

Project Design/ServiceProvided

End User Experience

Other

• Higher among Companies with US &

International Project Locations

• Higher among Companies with $250 Million

or more in Total Capital Expenditure on

Construction Activity

• Higher among Companies less than $250

Million in Total Capital

• Expenditure on Construction Activity

Total (n=72)

Owner Definition of Value

Other includes: Construction Team, Provide

Resources to achieve its goals, be a good

Community Partner, getting what we expect,

value is weighted to lifecycle costs, meeting

LEED energy expectations, a building that is

maintainable


Satisfaction compared to Value

Total (n=81)

-21%

-61%

-17%

-49%

24%

6%

46%

10%

Completed Ahead of Schedule

Typical Project

Best Performing Project

Completed Under Budget

Completed Behind Schedule Completed Over Budget

Performance from Approval of Capital Project

(% of Best/ Typical Projects)

Change Your Space, Change Your

Culture: How Engaging Workspaces

Lead to Transformation and Growth


WHY SmartStart®

Surface Problems

• Budget overruns

• Quality issues

• Schedule delays

• Safety issues

• Administrative overload

SmartStart® helps to lead clients and their team to custom solutions.

It starts with seeing, understanding and fixing the root causes.

Underlying Causes

• Poor planning and

coordination

• Late decisions

• Expertise missing

• Unforeseen conditions

• Misunderstanding

• Communication

challenges

• Bad meetings

Root Causes

• Interpersonal conflicts

• Motivation challenges

• No decision making

protocol

• Lack of clarity – values,

risks

• Misalignment

• Lack of accountability

• Unclear process


Summary

Single Factor That Most Contributes to a Best Performing Project:

˃ Owners identified the project team as their overwhelmingly top priority when asked an open-ended question about

what they consider to be the most important factor(s) that made their Best Performing Project as good as it was.

˃ This chart shows all the factors that appeared in more than 10% of the responses.

43%

21%

16%

14% 14%

12%

Team Strategy/Project Goals Early Involvement Communication Budget/Estimate Collaboration


Most Important Factor – TEAM

Percentage Reporting the Highest (4/4)

Team Dynamics Ratings

10% 9%11%

5%

68%

61%

54%

40%

Perception of TeamChemistry

Integration of Project TeamMembers

Commitment of TeamMembers to Same Project

Goals

Timeliness of Decision MakingRelated to Issue Resolution

Typical Project Best Performing Project

Not just about the “A” team – about

coaching, supporting, nurturing through lean

tools… through delivery they have to work

differently…


Custom Strategy Development

Three Buckets of Strategies

based on the

team strengths

and dynamic

BEHAVIORAL

based on

owner’s broader

business case

CLIENT VALUES

based on the

challenges of the

project

TECHNICAL

How do we weave these into a custom, comprehensive, and common-sense strategy?

© Lean Construction Institute

Case Study 1: Portland Building Reconstruction

©BBC 2016

THE PORTLAND

BUILDING

Type: Reconstruction

Location: Portland, OR

Scale: $140,000,000


Behavioral Alignment - Proactively Shift the Dynamic

Behavioral Strategies

LEVERAGE COMMON STRENGTHS• Relator - Colocation, F2F time, small groups, build

personal relationships, collaborative reviews

• Responsibility - risk of micromanagement, need clear roles

and conditions of satisfaction

MANAGE POTENTIAL CONFLICTS• Analytical vs. Strategic - level of detail in planning and

speed of responding to changes

• Discipline vs. Adaptability - thrive in consistency versus

change, need for routine versus flux

MOTIVATIONAL STRATEGIES• Achiever - visualize progress, clear tangible tasks,

importance of regular deliverables.

• Restorative - proactively identify risks, problem solving

sessions

METRICS

• 1.2-1.5x increase in productivity from working with natural strengths

• Healthier and more engaged team dynamic

Design Team:

RELATOR

ACHIEVER

RESPONSIBILITY

DISCIPLINE

ANALYTICAL

GC Team:

RESPONSIBILITY

RESTORATIVE

ADAPTABILITY

STRATEGIC

RELATOR


Case Study 2: Hotel/Convention Center Project

©BBC 2016

CONFIDENTIAL CLIENT

Type: Hotel/Convention

Center

Scale: $100,000,000

[representative photo]


Client #1aOther

Stakeholders

Client #1b

Client #2b

Client #2a

Client #2c

Client #2d

Client

Client

Pleas Mitchell

Architect 2

Architect 1

Michael Hite

Chad Brewer

Balfour Beatty

Design Team

Consultants

Architect 3

Master Planner

Planner 2

Planner 3

Planner 1

Subcontractors

General Partner Meeting

Meets: Quarterly

Purpose: Updates and coordination

among owner stakeholders.

OAC MeetingsMeets: biweekly

Purpose: Discuss and manage coordination,

schedule, budget, and design items. Provide list

of items to SCM for input, review, and decisions.

May have different OAC meetings for master

planning, hotel, and other projects.

Design Meetings

Meets: bi-weekly

Purpose: Discuss design and cost

options, make recommendations to

the OAC and/or SCM.

Project Meeting

Meets: bi-weekly

Purpose: Manage the coordination

needed to drive/support/inform the

construction process.

City

Roy Evans

Hotel/Convention Project – Before Governance Alignment

City Rep

METRICS

• $30,000 per

month in

meetings

• 17-22 people in

each meeting

• 2-4 weeks

between

discussions and

subsequent

decisions


Client

Client

Balfour Beatty

Design Team

Master Planner

City

Hotel/Convention Project – After Governance Alignment

METRICS

• $13,000 per

month in

meetings (down

$17k/mo)

• 6-12 people in

each meeting

• 2 weeks between

discussions and

subsequent

decisions

Client #1aOther

Stakeholders

Client #1b

Client #2b

Client #2

Client #2c

Client #2d

City Rep

Pleas Mitchell

Architect 2

Architect 1

Michael Hite

Chad Brewer

Consultants

Architect 3 Planner 2

Planner 3

Planner 1

Subcontractors

Roy Evans

General Partner Meeting

Meets: Quarterly

Purpose: Updates and coordination

among owner stakeholders.

Steering Committee Meeting

Meets: monthly

Purpose: Contracts, major schedule, scope,

and milestone decisions. Will discuss hotel

and bigger vision. Manage political process.

OAC MeetingsMeets: biweekly

Purpose: Discuss and manage coordination, schedule,

budget, and design items. Provide list of items to SCM

for input, review, and decisions. May have different OAC

meetings for master planning, hotel, and other projects.

Design Meetings

Meets: bi-weekly

Purpose: Discuss design and cost options, make

recommendations to the OAC and/or SCM.

Project Meeting

Meets: Weekly

Purpose: Manage the coordination needed to

drive/support/inform the construction process.


Case Study 3: Universal Studios Cabana Bay

©BBC 2016

UNIVERSAL STUDIOS

CABANA BAY

Type: Hospitality

Location: Orlando, FL

Scale: $220,000,000


Improvement Area #3

Improvement Area #2

Identify

Issue/Cos

t Event

Create

Cost

Event

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Notify Owner

via Log

Review

Submit

CE

Proposal

Requesti

ng OCO

Negotiate

CE

Proposal

w/ Owner

Owner

Issues

Directive

BBC

Signs

Directive (i.e. Cost

Event)

Owner

Issues

OCO (1

per month)

Execute

OCO

OCO

Distributio

n Form

Create

CCO

(1 per

sub)

CCO

Signed by

Sub

Push to

JDE

Issue Pay

App

Fund Sub

Internal

Budget

Transfer

Other

Directives

Issue

Directive

for

internal

Approval

Prepare

Directive

(Proj

Coord)

Complete

Directive

Form

(R.I.s)

Draft

Scope

(R.I.s)

Draft

Directive

Change Initiated

• RFIs

• ASI

• field issues

• Owner change

• Owner idea

exploration

Inte

rna

l C

ost

Create

CCO

(1 per

sub)

CCO

Signed by

Sub

Push to

JDE

Issue Pay

App

Fund Sub

Improvement Area #1

When identifying issues/directives, discuss them with the team

prior to starting the administrative process. This should result in

clearer, solution-oriented/confirming RFIs & Directives. These

could be discussed immediately after site visits and during the

regular weekly meeting no Friday.

Improvement Area #1

Universal Rule Joy

BBC Subs

Responsibility Legend

Owner/RJ Initiated

BBC Initiated

Process Optimization

METRICS

• Less rework in

scope definition

(5 hrs of rework) X

30 Change Orders X

$150/hr = $22,500

• Timely + informed

decisions

(5 hrs of re-meeting) X

80 Change Orders X

$200/hr = $80,000

Fewer work stoppages in

the field = >$100k


Improvement Area #3

Improvement Area #2

Identify

Issue/Cos

t Event

Create

Cost

Event

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Notify Owner

via Log

Review

Submit

CE

Proposal

Requesti

ng OCO

Negotiate

CE

Proposal

w/ Owner

Owner

Issues

Directive

BBC

Signs


Event)

Owner

Issues

OCO (1

per month)

Execute

OCO

OCO

Distributio

n Form

Create

CCO

(1 per

sub)

CCO

Signed by

Sub

Push to

JDE

Issue Pay

App

Fund Sub

Internal

Budget

Transfer

Other

Directives

Issue

Directive

for

internal

Approval

Prepare

Directive

(Proj

Coord)

Complete

Directive

Form

(R.I.s)

Draft

Scope

(R.I.s)

Draft

Directive

Change Initiated

• RFIs

• ASI

• field issues

• Owner change

• Owner idea

exploration

Inte

rna

l C

ost

Create

CCO

(1 per

sub)

CCO

Signed by

Sub

Push to

JDE

Issue Pay

App

Fund Sub

Improvement Area #2

• Ensure that certain individuals are empowered to make decisions in

the Friday meeting.

• Communicate assumptions/questions prior to the Friday meeting, so

that the focus can be on issue resolution (instead of missing

information).

• Provide timely subcontractor pricing and/or BBC to provide estimates

• Close the deal once we are down to about 5% discrepancy.

Improvement Area #1

Universal Rule Joy

BBC Subs


Owner/RJ Initiated

BBC Initiated


METRICS

• Less rework in

scope definition

(5 hrs of rework) X

30 Change Orders X

$150/hr = $22,500


decisions


80 Change Orders X

$200/hr = $80,000


the field = >$100k


Improvement Area #3

Improvement Area #2

Identify

Issue/Cos

t Event

Create

Cost

Event

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Create

Cost

Item(1 per

trade)

RFQ to

Subs

Review/N

egotiate

Notify Owner

via Log

Review

Submit

CE

Proposal

Requesti

ng OCO

Negotiate

CE

Proposal

w/ Owner

Owner

Issues

Directive

BBC

Signs


Event)

Owner

Issues

OCO (1

per month)

Execute

OCO

OCO

Distributio

n Form

Create

CCO

(1 per

sub)

CCO

Signed by

Sub

Push to

JDE

Issue Pay

App

Fund Sub

Internal

Budget

Transfer

Other

Directives

Issue

Directive

for

internal

Approval

Prepare

Directive

(Proj

Coord)

Complete

Directive

Form

(R.I.s)

Draft

Scope

(R.I.s)

Draft

Directive

Change Initiated

• RFIs

• ASI

• field issues

• Owner change

• Owner idea

exploration

Inte

rna

l C

ost

Create

CCO

(1 per

sub)

CCO

Signed by

Sub

Push to

JDE

Issue Pay

App

Fund Sub

Improvement Area #3

• Package issues as <$1.5M for quicker approval (as long as they are

related). Above $1.5M, the OCO has to go to the bank for approval.

• Figure out timing of monthly meetings related to OCOs.

> Items to be included in OCO are settled on the 1st of each month

> OCO is issued on the 15th of each month

> Pay App is issued on the 20th of each month.

Improvement Area #1

Universal Rule Joy

BBC Subs


Owner/RJ Initiated

BBC Initiated


METRICS

• Less rework in

scope definition

(5 hrs of rework) X

30 Change Orders X

$150/hr = $22,500


decisions


80 Change Orders X

$200/hr = $80,000


the field = >$100k


Case Study 4: Wiseburn Unified School District

©BBC 2016

WISEBURN UNIFIED

SCHOOL DISTRICT

Type: K-12

Location: El Segundo, CA

Scale: $140,000,000


Wiseburn USD High School Project

SHOWCASE THE STORY

There are some amazing stories coming out of this project. Use them! Seek opportunities to showcase and develop case

studies.

INVOLVE THE BEST PEOPLE

“Hire the best people and get out of their way.”

OPTIMIZE PHASING TO WORK WITH FUNDING

With the various funding sources and timing, it is critical for the team to come up with creative ways to phase the work and

entice alternative short-term and long-term funding/income strategies.

©BBC 2016

Potential Strategy Ensure that everyone on the team knows and various stories of this project and can look for opportunities to

enhance them through their work and engagement with others.

Highly collaborative team environment, clear mission, clear milestones, clear roles and responsibilities,

engage the greater community in celebration and awareness.

Turning key spaces into profit centers (e.g. the gym, pool, 8000 ft2 of shell space, conference center,

theater), lifecycle costing analysis, balance future flexibility & durability, full program milestone planning,

creative phasing, short-term financing strategies.

Potential Strategy

Potential Strategy


Case Study 5: Confidential Project

©BBC 2016

CONFIDENTIAL

PROJECT

Type: Office/Corporate

Location: Washington, DC

[representative photo]


Office/Corporate - Adding value on Day 1 (90 day actions)

Define Early Bid Packages

OB3 Demo Permits and Design

Testing & Commissioning Plans

Stormwater/Sewer Relocation

Dewatering Scope

Clarify site contaminants

Clarify end user requirements for AV & security, loading requirements, MEP/IT pathways

Procurement Matrix – what end user will allow to be bought through the lease

Define scope limits for WLS/CDS

Obtain temporary discharge permit

Coordination of new utilities

Curb Cut Decision

RFP for Glass

FAA Permit27

QUALITATIVE

METRICS

• Instant value add

of contractor team

within the first

weeks of contract

execution (rather

than sitting

around waiting to

provide

estimates)

• Collaborative

brainstorming and

proactive action

plan for

minimizing

potential risks

Balfour Beatty

Collaborative

Collaborative

Balfour Beatty

Balfour Beatty

Design Team

Collaborative

Balfour Beatty

Collaborative

Collaborative

Collaborative

Balfour Beatty

Owner

Design Team


Case Study 6: Solitair Brickell Apartments

©BBC 2016

SOLITAR BRICKELL

APARTMENTS

Type: Multi-family

Location: Miami, FL

Scale: $113,000,000


High-Rise Residential / Proactive Risk Mgmt

MAJOR RISK: Adjacent Building Ramp On-time completion (Jan 2016)

Rather than “leave it to chance” – create a set of Potential Strategies:

29

METRICS

4-month proactive

head start and

resequence to avoid

damages from

adjacent property

owner in the range of

$100k/day

• Obtain extended hours noise waiver

• Get 2 crews working on understanding existing subsoil/rock conditions

• Understand approval requirements and timing

• Make work Ready - design, submittals, trades partner planning

• Establish needed production rates to compare against daily progress

• Accelerate vertical construction; re-sequence

• Establish early tower crane and temporary power access


Make the Connection

30

Three Tenants of Lean

What we have learned from Cases and Research

• Values Alignment

• Rapid, proactive

engagement

CREATE VALUE

• Behavioral

Alignment

• Governance

Alignment

RESPECT PEOPLE

• Risk Assessment

• Process

Optimization

• Governance

Alignment

ELIMINATE WASTE(Big issues and chronic leaks)


Reprise: Challenges Facing our Teams

31

• Most who never heard of Lean think the industry is Efficient

• Large gaps between Satisfaction and Value

• Adept at identifying Suface problems; ill-equipped to tackle Root causes

• The illusion of “bringing the A-team”, then ignoring coaching, learning and working differently


Engaged interpersonal dynamics, clear

values & risks, clarity on governance,

simple team goals

Cadence of accountability to effectively

leverage the collective experience of the team

What’s possible?

Proactively informing & optimizing the potential of the design to feed construction/assembly flow

Supported Teams equipped with the tools,

training, facilitation, space and feedback

mechanisms to thrive.


SmartStart® is a framework to:• Create and sustain a high-performance team

• Develop a custom project strategy uniquely suited to needs

of the project and the values of the client


• What did you hear?

• What did you learn?

• What will you try?


Unlocking the Full Potential of Teams:

From Alignment to Custom Strategy Development

Andreas Phelps & Mark Konchar / October 6, 2016

From Alignment to Custom Strategy Development...• Achiever - visualize progress, clear tangible...

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