Giving Your Team the Winning Edge
(The following article is a reproduction from Engineering Times)
The construction industry for years has taken a "traditional approach" to projects by keeping a clear separation between the design and the construction phases. A more effective method, however, is a "team approach," where everyone works collaboratively from the start and the process is driven by "value-based" decision making rather than "cost-based" decision making.
The biggest difference between the two approaches is that the team-approach selection process is based primarily on answering the question, "Which firms, through their involvement in the process, can add the most value to my project?" The traditional approach, in contrast, is based on competitive pricing of the project (though competitive pricing is ultimately obtained by competitively bidding all components of the project).
GETTING STARTED
The first step is to assess your in-house staff. Do they have experience with this type of process? Are they already overloaded? If necessary, consider contracting for the additional resources needed for the project.
When looking at outside firms, keep in mind that you are looking for certain qualities in the companies as well as the individuals in those organizations. The participants should be:
- Experienced team players;
- Able to put their own agendas behind the best interests of the project;
- Able to listen well and respond quickly to change;
- Deserving of the trust you place in them.
You want firms and individuals with a reputation for doing what they say they will do. Always check references.
As you prepare a request for proposals (RFP), start thinking about the makeup of your team. Shortlist firms on the basis of their qualifications, then issue the RFP to your shortlisted firms. Look closely at each firm's qualifications. Identify key people in the firm (look for team players), study their approach to your type of project, and determine how the key people will apply their approach. Preferably, shortlist again as you move into the interview process. Base your final selection on the question, "Who will add the most value to my project?"
If fees are part of your selection criteria, be careful, because your consultants have the greatest ability to affect the overall costs of your project! The firm that adds the most value to your project might not be the least expensive. Keep in mind that your consultant's fees are relatively small compared with the overall project costs. If you do solicit fees, provide the form of agreement and a clear definition of what is included and not included in the fee.
For all consulting services, a guaranteed maximum-cost approach is best. When you hire a consultant, you are buying a professional's time. A fixed fee or lump sum approach has some drawbacks:
- A fixed fee approach creates an incentive of "the less time you spend on the project, the more money you make!"
- The scope of services is usually not well enough defined to let you accurately determine an exact fee when you are assembling your team.
Likewise, a percentage-based fee is not ideal, because it creates an incentive of "the more expensive the project, the more money you make." In contrast, a guaranteed maximum fee limits your exposure, ensures that you pay only for services you actually get, and allows team members to stay focused on the best interests of the project.
Making "value-based" decisions takes practice, especially for people more accustomed to the traditional process. But really, we all make value-based decisions every day. Whether buying tires or deciding on a name brand over a generic product, we all consider something besides cost.
A WINNING TEAM
When you use a team approach, you commit to a process that requires careful communication. You must decide what balance of cost, schedule, quality, and risk is right for each project; then you must share those objectives with the team. The key to teams working together successfully is for goals to be clearly understood and for everyone's responsibilities to be clearly defined.
Defining the mission helps all team members understand the common goal of working toward what is best for the project. Establishing these ground rules helps everyone adhere to the mission. If you're not sure that everyone understands the mission and their role in achieving it, then a partnering session can be used to revitalize and refocus the team.
Trust is the unifying thread that weaves through the fabric of the team approach. All members of the team are experienced professionals. They should be treated as such. Trust and mutual respect are mandatory. Without them, there is no foundation to establish and communicate the mission.
Trust is necessary to manage conflicts openly and resolve issues effectively. The responsibility for maintaining trust lies within each organization and requires a vigilant effort by each company's leadership to maintain integrity throughout the project.
MAKING IT WORK
If you're about to try the team approach, now is the time to assemble your team -- before you get too far into the process. Base your selections on who will act in the best interests of the project and who will add the most value. Look for companies and individuals with a reputation for doing what they say they will do.
Define the mission, communicate clear goals, and establish responsibilities for every team member. Understanding the mission fosters open communication based on trust -- the critical success factor. Demand 100% trust and mutual respect. Tolerate nothing less.
Outline the plan, point the team in the right direction, and trust them to fine tune the details. Then get out of their way so they can execute the plan. But stay involved, so you can support them and make decisions when you have to, trying to push decision making down to the lowest levels possible. Learn how to stay involved without interfering. Lead the process, but don't manage it. Be a coach and a cheerleader, and step in only when your input is necessary or the team strays from the common goal. Their success is your success.
Michael Kenig is Vice Chairman of Holder Construction Company, a general construction company in Atlanta. He holds a degree in construction engineering from Purdue University. |