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Rex Miller and Dean StrombomApril 6, 2011Becoming the change…

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When Systems Break Down…

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it is 2000…

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2005 changes strategies

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April 2008

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What did Michael Burry see?

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The Rules Changed

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Rules Change + Cycle = Results

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Why did he see it?

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How Many Trust the Financial System?

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Digital Age = Speed and Complexity

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Print Age = The Age of Reason

• Individual

• Rational

• Industrial

• Organization as machine

• Command and control leadership

• Steady and predictable

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Speed Complexity

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Not Much Has Changed

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Old System in a New World

• Hierarchical

• Compartmentalized

• Sequential

• Checks and Balances

• Specialists

• Disconnection

• Silo’s

• Out of the Loop

• Conflict

• Mis-coordination

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Signs of a Broken System• $500 billion in waste

• Over 50% is waste

• 70% late and over budget

• 48% of Green House Gases

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6 Trends Demanding New Behavior

1. The green movement2. Managing complex risk3. 3D modeling4. Manufacturing techniques– Lean– Offsite

5. Major corporations reducing footprints6. Digital technology, virtual work and GenY

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New Rules

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IPD Essential ElementsEarly Involvement

of Key Participants

Design Optimization

Efficiency

Joint Project Management Commitment

Skin in the Game

Risk Allocation

Shared Pain/Gain

Project Outcome

Joint Validation of Targets/Goals

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Teams vs. Players2004 2008

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BIG BIM Building (Project) Information (Geometrics) Modeling (Visualization)

A way to link & exchange information back & forth, and a structure that allows the information to interact

Levels of use, leading to BIG BIM:1. Static 3D visualization2. Dynamic 3D visualization3. Object intelligence4. Relational intelligence5. Analytics6. Simulation7. Prediction8. Fabrication9. Operations10.Virtual worlds

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IPD vs IPDish

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Developer Design-Build

• 1st LEED Platinum Spec

• 200,000 sqft

• $3/sqft less than conventional

• 100% pre-leased

• 45% lower operating costs

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Handshake: Brightlights Project• 250,000 rsf urban renovation,

including 60,000 sf 3-story volume for 500 traders

• 2N systems redundancy

• 24 months start-to-finish

• LEED CI Platinum

• Outcome Incentives

• Handshake schedule

• Innovative team collaboration and communication tools

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MOU – BIM Driven100 Tech Square• Scope: 250,000 GSF• Program: lab & office (TI)• Completion: 9 months• Cost: Confidential (under budget)• Constructed & commissioned in just 6 months

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CMR – BIM DrivenBioSquare III• Scope: 160,000 GSF• Program: lab & office (new)• Completion: 18 months• Cost: $150/SF• First LEED certified lab in Boston

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Full IPDAutodesk• Scope: 60,000 GSF• Program: corporate office• Completion: 8 months• Cost: Confidential (under budget)• Multiple design awards• 100% BIM, 100% IPD, LEED Platinum

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Talk or Walk?

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Recipe for Success

• Right Sequence– Principles– Team– Tools

• Including subs

• Join the Club– Speak– Do– Promote

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Good News

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Strategy

• Early Adopters

• Fed Ups

• Partner for Proof of Concept

• Cap Risk

• Create a Brand Promise

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Call to Action• Who are the early adopters or fed ups in your

circle?

• Who would you pick on your team?

• Do your current values support an open book, shared risk collaborative process?

• Where can you find an opportunity for proof of concept?

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What If We Don’t Change

• Will errors decrease?• Will margins rise?• Will conflict diminish?• Will we maintain a competitive edge?• Will safety improve?• Will owners walk away delighted?• Can we really defend the current system?

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Contact InformationDean Strombom – GenslerPrincipaldean_strombom@gensler.com713-844-0000

Rex Miller – TAG ConsultingSenior Partnerrmiller@tagconsulting.org214-498-3055

www.thecrerevolution.com

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Questions?