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Out Running the Tsunami of Change
Rex MillerThought LeaderTAG Consulting
Thursday, April 29, 2010
Outrunning The Tsunami of Change
Thursday, April 29, 2010
Different Seas Different Ships
Thursday, April 29, 2010
Oral Print
Broadcast Digital
The 4 Tsunamis of History
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CharacterContent
ImageNetwork
Facebook Vote
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OralHolistic, Circular, Symbolic, Interdependent
Print Linear, Sequential, Rational, Autonomous
BroadcastFluid, Fragmented, Emotional, Isolated
Digital/InteractiveHolistic, Non-linear, Whole-Brain Systems Thinkers, Interconnected
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Resilient
AdaptableThursday, April 29, 2010
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Digital Immigrants Digital Natives
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Over 656%
Boomer50%
GenX38%
Millennials6% 2008
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Boomers24%
GenX33%
Millennials43%
2018
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2 Camps
Finding the New Normal
or
Hoping for the Old Normal
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80 Websites
• 6 Mention Sustainability• 3 Use Social Networking• 2 Made me Smarter• 1 Provided a Blog• 1 Mentioned the iPad
Common Phrases
Industry LeaderStrive for ExcellenceA Bunch of Marquis ClientsWorld LeadingHighest QualityLeading ProviderWe have ValuesWe started in a garage in 19...
PS: Get Rid of Flash!
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AV Trends
• Scope Blur• Commoditization• Prefabrication• Telepresence and
new competitors• Margin Erosion
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Productivity Gap
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•The bid ≠ the business case
•Negative correlation between low bid and final cost
•Dilution of commitment
•Winner’s curse
•Bidding is not apples-to-apples
•Cost of bidding gets recouped
•Fallacy of value engineering
•What does the bidder actually win?
•Campaign vs. Govern
•Romance vs. Marriage
The Bid Game vs. Project Success Factors
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•Fragmented
•Silo’d
•Linear/Sequential
•Hierarchical
•Adversarial
•Scope Based
•Anticipates Litigation
•Low Price / Bid
How Do We Force Projects to Behave?
Owner
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Sutter Health Past Experience
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Traditional vs. Integrated Target Pricing
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How do Real Project Behave?
•Complex
•Relational
•Require trust
•Need tight coordination
•Fluid
•Interactive
•A system
•A discovery process
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•$300-$500 billion annual WASTE(buildingSmartAlliance)
•50%+ Waste in the System(buildingSmartAlliance and Lean Construction Institute)
•70% Over Budget and Late(Egan report)
•48% of Green House Gases (Energy Info Admin Statistics and Pew Climate report)
Results of a Broken System
Thursday, April 29, 2010
•Labor = 50% @ 30% efficiency = 35% waste
•Materials = 40% @ 70% efficiency = 12% waste
•QTO = up to10% of the cost
•Bidding = 5%+ of the cost of a project
•Change orders between 2-10% of the cost
•Contingencies up to 7%
•Team Learning Curve = 5%
•3-7% is lost in project cost reduction by not maximizing Construction Tax Planning
Uncovering the Hidden Waste
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Thought Leadership
By-Products to Products
Integrated Teams
Trust
No Waste
Owner Value Language
Brand Promise
New Operating Principles (imperatives)
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Thought Leadership
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By-Products to Products
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Select Teams not Players
2004 2008
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Evidenced Based Team Formation
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29%disengaged
17%engaged
54%unengaged
Playing To Your Strengths
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Thursday, April 29, 2010
Thursday, April 29, 2010
The ROI of Trust•Warren Buffet: Handshake deal for McLean
•LogicaCMG study of 1200 contracts: 20% to 40% difference on service, quality & cost
•Profitable Partnering for Lean Construction: strategic partnering delivers up to 30% in cost savings of construction
•Speed of Trust: distrust creates a 50% tax on work
•Edelman Trust Barometer: 20% higher ROI over a 10 year period
Thursday, April 29, 2010
Trust: Deficit to DividendTrust Balance -40%-40% -20% NeutralNeutral 20%20% 40%
Environment StressfulStressful Worry No worriesNo worries PositivePositive Uplifting
Focus Pre-emptionPre-emption Process ScopeScope OutcomeOutcome Mutual successRelationships DisrespectDisrespect Indifferent CordialCordial CooperativeCooperative Collaborative
Process Hidden agendasHidden
agendasChain of
commandTask at handTask at hand Keeping
promisesKeeping promises
Making it easier for others
Behavior CYACYA Do my job RespectRespect PartneringPartnering Transparency
Outcomes PoliticsPolitics Slow EfficientEfficient Learn from mistakes
Learn from mistakes
Improve
Systems DistractingDistracting Hassle Does not get in the way
Does not get in the way
SupportiveSupportive Adaptive
Ethics Self-interestSelf-interest Compliance What is expected
What is expected
What is rightWhat is right What is good
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NO Waste - Sutter Health & DPR
$1 million a bed$1000 per square foot
10% under budget6 months early6 RFIs MEP
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Guaranteed Price
Guaranteed Move-in Date
No Change Orders
2-Year Warranty
1 Page Contract
The Value of
a Promise
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•Develop a Digital Mindset and Tools•Design Resilient and Adaptable Organizations•Make Way and Leverage This Next Generation•Use Upstream Thinking to Get In Earlier and Higher•What By-Products of Your Work Can Become Products?•Don’t Miss the IPD, BIM and Reliable Results Wave•Begin Building Teams that Integrate the Supply Chain•Learn to Speak to Owners in Terms They Care About•There is an ROI for Trust. Can you Measure Yours?•Is Your Brand Promise Clear, Reliable and Truly Valuable?•Begin to Develop Strategic Foresight to Navigate Change
Call To Action
Thursday, April 29, 2010
•Speaking
•Strengths Based Leadership and Coaching
•Building Resilient and Adaptable Organizations
•IPD Strategies and Implementation
•Market Repositioning
•Creating Integrated Alliances
•Business Development
•Change Management
214-498-3055
Thursday, April 29, 2010