The Problems with Integrated Project Delivery (IPD) and How to Overcome Them

June 18, 2015

Dude x 9 the builders at puzzle construction site.

“Alone we can do so little; together we can do so much” ― Helen Keller

 

 

The big buzz phrase in the construction industry is Integrated Project Delivery or IPD.  Disney has a concept called ILPD or Integrated Lean Project Delivery.  This uses not only a collaborative approach to projects, but also uses the Last Planner System and Lean concepts to eliminate waste, focus on adding value, and continuously improving.  Everyone on the project signs an integrated form of agreement that commits to shared risk and reward and cooperation throughout the project.

This is a very good concept that is getting a lot of attention.  There are incredible success stories and stories of unmitigated disasters that have used the IPD model.  So what is the secret sauce?  What contributes to success as opposed to failure?  My gut feeling is that the people dimension of this process is a critical factor to its success.  Take a look at the typical emotional profile for a large group of folks (over 500) who manage the construction process:

average EQ for third edition-graph only

 

As you can see, the relatively high scores are self-regard, independence, assertiveness, stress tolerance, and reality testing (black/white thinkers).  The relatively low scores are impulse control, flexibility, emotional self-awareness, empathy, interpersonal relationships, and social responsibility (the ability to work in groups and teams).  This is a bell curve distribution, so 100 is the mean.  Let’s put it this way.  This group of construction managers couldn’t get any of the interpersonal skills to the mean.  That means that all of the interpersonal skills are BELOW AVERAGE!

This does not bode well for collaborative project delivery methods.  We must address these emotional competencies first.  Then, we must cultivate the relationships and create trust.  Then, and only then, can we properly plan the project.  We have a program called Beyond Partnering.  We developed it because we found that our leadership programs created a lot of trust and close relationships that increased the effectiveness of project teams.  So we do our normal program spread out over time, we just do it in the context of a project.  The tag line for Beyond Partnering is “You have to build the people before you build the project.”  If you would like more information on this approach, email me and I will send you our Beyond Partnering outline.


Innovation, Part 2: Top 10 Outrageous Ideas for the Construction Industry

February 19, 2015

255117e2-b921-43bb-8b3c-ffdcb5551150

“Imagination is more important than knowledge.” Albert Einstein

 

 

Darwin’s “survival of the fittest” quote is usually taken out of context.  By “fittest”, he didn’t mean the strongest.  He meant the one who could adapt.  Those are the ones who survive.

The movie, Moneyball, is a great reminder of this concept.  It is the tale of someone who truly thought about how to do things differently.  Billy Beane, the General Manager of the Oakland Athletics, wanted to “change the game” of baseball by abandoning the traditional scouting process and use statistical analyses and to find the “right” players to attain the correct number of runs to attain the correct number of wins to attain a playoff slot.  And it worked quite well.  The Athletics won 20 in a row, setting a new baseball record.  There is a downside to the story.  They never won any championships, but they consistently have good teams even though their budgets are 40% less than some other big league team’s budgets.  The ROI on this approach is undeniable.

So how do we think differently about the construction business?  I have a few ideas.  Many of these are not my concepts.  There are companies who do these things already.  But can we find a way to adapt these ideas to this industry and our business?

Here are my top 10 crazy ideas for the construction industry:

10.  Make every employee do anything other than work for one hour a day.  It can be anything from surfing the web to rollerblading.  This gives them some downtime and clears their head for thinking in innovative ways.  Your employees will be more creative, less stressed, and more satisfied.

9.  Put in nap/recharge rooms for employees so that they can restore themselves throughout the day.  There is study after study that shows that this improves the bottom line and the health of your employees.

8.  Let employees bring pets and/or children to work.

7.  Create a ROWE (Results Oriented Work Environment).  Let employees set their own work hours and also self direct as to what they want to work on.  You can set work goals, but not tell them how or when they need to be done.

6.  Collaborate with each other (throughout the industry, even competitors) on best practices for marketing, purchasing, procurement, delivery, etc.  Help each other and share the rewards.  Come from a place of abundance that there is enough work for everyone.

5.  Find as many ways as possible to create a positive emotional experience internally and externally.  Have fun.  Laugh.  Do office chair races, have games in the office.  Give people a sense of purpose.  Your employees should have a blast every single day!

4.  Take the risk.  We are all so risk averse in the industry, it stifles creativity and innovation.  Let it all hang out and innovate like nobody’s business.  Reward it, cultivate it, revel in it.  Don’t condemn ideas that didn’t work.  Go to the next one.  Edison found 999 ways that a light bulb didn’t work before he came up with one that did.

3.  Give employees as much time off as humanly possible during the workweek and for vacation.  Let it be one of your main incentives.

2.  Put some love in everything that you do.  It’s not that serious!  Spread love inside and outside of the company.

1.  Re-brand your company and fill it with spirit.  What does your brand say to your clients?  If you are like most contractors and engineers, it says, “trustworthy”, “reliable”, “stable”, “ethical” and probably a list of very nice words.  First of all, MOST contractor’s and engineer’s brands convey these things.  But these words are a bit stuffy.  Look at most commercials on television for a variety of products and services.  All of them are filled with positive emotions:  Coke:  Open Happiness.  Love:  It’s what makes a Suburu a Suburu.  Harley Davidson doesn’t sell motorcycles.  They sell freedom and independence.  We have really missed the boat in this industry.  The company who figures out how to brand themselves with fun, love, great times, humor, innovation, and creativity will slay the competition.

Owners are starved for this type of approach to building.  Owners will choose you because they like you, trust you, and respect you.  In that order.  You may be saying that it’s all about low price.  But there is a backlash of the low bid mentality.  The only ones making money are the lawyers.  And according to Herb Kelleher, the CEO of Southwest Airlines, those intangibles of spirit are not only a moral imperative, but they are much harder for your competition to replicate.

You may dismiss these ideas.  You may think they are ridiculous.  You may say that there is no way to do any of these in the construction business, especially on projects.  But I can tell you this:  The companies who figure these things out and actually implement these kinds of radical changes and find new ways of working  will dominate the industry.  It may not be the ideas listed above.  You will likely have to adapt and change them to fit company culture and industry standards.  But I can tell you that those who continue to limp along with ideas and concepts that are hundreds, perhaps thousands of years old, are doomed.


Someone called me a thought leader. Go figure.

October 30, 2014

thought leader

 

I was googling around the other day and had a whim.  I always wanted to be a thought leader in the construction industry and wondered if anyone had ever put me in that category.  I typed in “brent darnell thought leader” and a blog actually came up from Carol Hagen.  I think Carol is pretty innovative with her take on what’s going on in the industry and is a thought leader in her own right.  Check out her blog:

http://carolhagen.wordpress.com/tag/thought-leadership/

This will also give you some good links to folks are are truly the thought leaders in the construction industry.  They are the ones on the cutting edge of what the future holds.

 


Top Questions about Emotional Intelligence and the Construction Industry – Answered! Part 4

October 23, 2014

EQ IQIsn’t this just another management fad?

I have given much thought and introspection to this question. As a matter of fact, I considered this possibility when I first started this work. But after seeing the results and seeing the supporting data, the answer to this question is a resounding NO! The shelves are filled with thousands of self-help books for managers. And many of these books contain good information. So, why do management fads come and go like the tides?

Because there is a fundamental flaw in their application. They pile generic information on top of generic problems without regard to the individual. No matter how good the information is or how valid the approach, without addressing the fundamental emotional makeup of the individual, the application of this information may never take place.

Every company we have worked with agrees that communication is essential in the construction industry. Companies spend millions of dollars on training to give their people better communication skills. But because of the typical EQ profiles of most people in the construction industry, they are often incapable of applying this training. If they have high assertiveness, independence, and self-regard, and low empathy and interpersonal relationship skills, they will likely come across as someone who doesn’t listen, won’t ask for other’s opinions, and does whatever they think is best regardless of any group input. You can put that person in a communication seminar or buy them books to teach them how to communicate, but it is very probable that they will still be unable to communicate effectively when the seminar is over.

If someone has high reality testing and problem solving along with low flexibility and optimism, they may have issues concerning change. This person will have a very rigid approach to life and work. This person can go to a seminar on change management or read a book like Who Moved My Cheese?, but his lack of flexibility usually prevents him from truly embracing change. He will have difficulty in the construction industry because of the constant change, but if his flexibility and optimism are increased, he will be much better able to deal with this issue.

Using emotional intelligence as the foundation for development programs is a different approach. Instead of starting with a particular area of training such as communication or teambuilding, we address the fundamental emotional developmental needs of every individual. Then we address these needs with specific, targeted learning modules. By addressing the emotional competencies first, the participants can develop the emotional makeup to be able to apply the concepts of the learning modules. All future training can be related back to the employees’ emotional intelligence development plans, which also make any subsequent company training more effective.

As Lisa Fanto, the the Vice President of Human Resources for Holder Construction Company put it, “I’ve been in and managed corporate education for a long time, and I’ve seen all of the fads du jour come and go and suffered through many of them. This is the only thing I’ve seen ever in my career that actually changes lives. I know that sounds dramatic, but it does. It actually changes people. And in order to change the way people manage, you have to change the way they live.”


Top Questions about Emotional Intelligence and the Construction Industry – Answered! Part 3

October 16, 2014

EQ IQCan emotional intelligence be learned?

Seabiscuit was just a broken down horse incapable of winning until someone saw his potential and developed it through training. It was only then that he became one of the greatest racehorses in the history of racing. The trick is to be able to identify individual potential and develop it with effective techniques. But how do you teach something like empathy? We have developed a methodology targeted for the construction industry called “Emotional Intelligence – Foundation for Your Future”. It was co-developed with Kate Cannon, a pioneer in the field of emotional intelligence.

After the initial EQ evaluation and feedback, we begin with a half-day program where each participant creates detailed, individual development plans. The participant targets specific competencies based on their future needs and then chooses development strategies from different categories depending on their learning style. They also create plans for mental and physical peak performance that are tied into their emotional plans focusing on nutrition, exercise, and stress management. We utilize many different types of exercises and development ideas and use various media such as books, fables, movies, television, magazines, operas, plays, and websites.

We also emphasize the day-to-day application of this learning and provide inspirational quotes for each competency. In addition, we build in many levels of accountability. In a group setting, everyone has an accountability partner. They also provide me with accountability partners above them, beside them, below them, family and friends, and clients. After the six month mark, I call these accountability folks to see if they have seen any changes.

These are all powerful ways to keep the learning in the forefront, but the key to this learning is in the follow-up and coaching. We contact individuals every three or four weeks to check on their progress, offer encouragement, and provide coaching. We also do at least one face-to-face coaching session during the program. Without this individual coaching and follow-up, the participants tend to set aside their development plans. But if they know they will be re-evaluated and that someone will be checking in with them every few weeks, they are much more likely to work on their development plans and create fundamental behavioral change from within. One participant said this about the process, “I thought that people are who they are by their mid-twenties. I definitely feel that people are capable of significant change.”

I love to tell the story of Bryan, a superintendent in his late thirties with an anger problem. He told me that this problem had troubled him since he was young, and that if I could help him find a way to control it, he would be most grateful. This issue showed up in his EQ-i®. He had low emotional self-awareness along with high assertiveness and low impulse control. His low emotional self-awareness didn’t allow him to feel himself getting angry, and eventually, with his low impulse control, it just boiled over.

The first thing we did was work on his emotional self-awareness. I suggested that he try to become aware of where he felt anger in his body and identify it as early as possible. We also worked on basic breathing and meditation techniques along with centering techniques to help with his impulse control.

I gave him a book to read and told him that it may be a little “out there”for him, but to try and find something he could relate to. In the process of reading the book, he found a centering technique that worked for him. He created a focal point by putting a photograph of his two small girls on his mobile phone. When he felt himself getting frustrated, (with greater emotional self-awareness, he felt it in his body), he excused himself from the situation, took ten deep breaths, flipped open his phone, and looked at his little girls. This allowed him to decompress and control his anger.

In his words, “Leaving a bad situation, even briefly, has allowed me to not act in anger or impulsively.” He improved his emotional management and changed his behavior, making him a more effective leader. With this shift, he has learned to listen more without being so reactive. He told me that the people who work with him have noticed these changes. As he puts it, “Listening, not reacting to people I encounter has led to a more positive approach to my professional life.” In addition to improved leadership skills, there has also been an improvement in his mental and physical performance. He is less stressed and better able to handle difficult situations without compromising his health.

Even if the scores from the EQ-i® do not increase; there still can be some very useful information for the participant. Annelise, a purchasing manager from Denmark, decided to work on her social responsibility, which was relatively low. Eleven months later, at the end of the program, when she took the EQ-i® again, she found that her social responsibility score was even lower. Interestingly enough, her self-actualization, happiness, and optimism had increased dramatically.

When we discussed these numbers, I asked her why she chose to work on social responsibility. She told me that she believed that it was the right thing to do, that she thought her family and friends wanted her to spend more time with them. I asked her if she had spent more time with family and friends in an effort to increase her social responsibility. She replied that she had not. She told me that work had been particularly hectic, and she had been working non-stop since the beginning of the program. She usually worked alone rather than in groups or teams. She also indicated that she felt a little guilty for working so much.

I asked her if she enjoyed working and she responded by saying that it was the most important thing in her life. She loved the challenge and felt that the company needed her during this particularly difficult period, which made her feel valued and important. That was the reason for her significant increases in self-actualization, happiness, and optimism. I suggested that perhaps this second evaluation revealed that during this period in her life, her work, which gave her great joy, was something that she would do well to focus on. In addition, since she worked alone, this way of working did not contribute to increasing her social responsibility. This conversation was a great relief to her. Perhaps all she needed was permission to enjoy her work life without guilt. So, in this case, although the competency she had originally chosen decreased, the results of the second EQ-i® gave us some real insights into the direction she wanted for her personal and professional life.

To sum up, people do learn about themselves and shift behaviors that are troubling by working on specific emotional competencies.  They actually learn these emotional skills, which are not only reflected in the numbers on the re-test, but in the comments of accountability partners who have actually seen the changes.


Top Questions about Emotional Intelligence and the Construction Industry – Answered! Part 2

October 9, 2014

EQ IQIs there a correlation between emotional intelligence and performance?

I facilitated a program for a top 100 contractor based in the southern United States using emotional intelligence as a foundation for leadership development. After the managers were evaluated, I ranked their interpersonal scores (empathy, social responsibility, and interpersonal relationship skills) from the highest to the lowest. This company had their own ranking system in order to identify their star performers, the ones who contributed most to the success of the company. The astonishing fact was that the company’s overall ranking and the ranking of interpersonal skills correlated almost one-to-one. This told us that the managers who had the best interpersonal skills were also the company’s stars. They were the managers involved in the most profitable projects who contributed the most to the company’s bottom line.

Multi-Health Systems has a program called Star Performer where companies look at the EQ-i® profiles of their star performers for particular departments or positions and determine with statistical accuracy which emotional competencies are essential for high performance. Then it is just a matter of recruiting, hiring, and training for those competencies. The drawback to this approach is in the performance criteria, which must be objective. For sales, performance is objective and clear. For project managers, it is less clear. You may have a high performer that loses $100,000 on a project that would have lost $1 million. Or you may have a low performer that makes $500,000 on a project that was supposed to make $1 million.

But if you can decide on some fairly objective performance criteria, it soon becomes clear which emotional competencies are required for that level of performance.  And think about where the industry is going.  Project delivery methods are moving toward more collaborative environments:  IPD, LEAN, Design Build, Design Assist.  Disney now has a LIPD (Lean Integrated Project Delivery) method of project delivery.  With these more collaborative methods, it takes a different set up skills to be successful. According to a recent ENR article, the Construction Industry Institute recently did a study and found that “working relationships and team dynamics have emerged as the leading variables affecting the cost and schedule of industrial projects, according to a research report from the Construction Industry Institute.  If you want a high level of performance on your projects, perhaps it is time to start paying attention to your project teams’ emotional intelligence.


Top Questions about Emotional Intelligence and the Construction Industry – Answered! Part 1

October 2, 2014

EQ IQIsn’t this just another one of those personality profiles?

Invariably, program participants tell us they’ve already taken all of these kinds of tests and that this is nothing new. Many of them have taken the Myers-Briggs or the DISC test. There are literally thousands of these tests on the market today. Most are based on preferences – you know the types of questions – would you rather read a book or sail a boat? For people with low self-awareness, this can be very informative and fun, but most of these tests are rather limited for detailed, personal development.

For those who are somewhat self-aware, these tests are merely confirmations of what they already know. In fact, the common response is, “Yep, that’s me. So what?” It is my belief that personality tests, without some kind of context, are limited in their application to personal development. When you take a personality test, you put yourself in some general state of mind. But the choices that you make on those tests may change based on the circumstances. I may be more of an introvert in my personal life, but at work, I’m an extrovert. So how do I answer those questions? Sometimes I would rather be the center of attention, and sometimes, I would rather be alone. They very rarely capture the true nature of the person. These tests simply can’t capture the complexity of a human being.

This approach to development using personality types is very prevalent in the training industry. Participants take a test to find out their “type”. Usually there are three other “types”. You are either a color or a number or a quadrant or an animal. Then, they teach you about the other three “types” and how to get along with them. This approach is limited at best and can be dangerous. First of all, human beings are far more complex than a single “type”. Second, unless you carry the tests around for everyone to take, it takes empathy to determine what the other person’s “type” is. And empathy is not our best emotional competence. In fact, for most groups, it is the lowest score. Third, for some people, this is a real copout. They will stereotype people into whatever “type” they determine and treat them a certain way, which may or may not be correct.

Once you develop your emotional skills, you will be able to deal with any type of person in any situation. You will have the self-awareness to know how you are feeling and how you are being perceived and the empathy skills to know how they are feeling. These situations are dynamic. They can come up in an instant. Isn’t it better to have good fundamental emotional competence to work from rather than rely on a set of “rules” for certain “types”?

A construction company I worked for used the DISC profile for all of its employees. DISC is a test that indicates the following personality archetypes:

¥          Dominant tends to be direct and guarded

¥          Interactive tends to be direct and open

¥          Steady tends to be indirect and open

¥          Compliance tends to be indirect and guarded

 

As it turned out, 80% of the people in our construction company were “Dominants”. What does that tell you? Most people in the construction business have a dominant style. They tend to be direct and guarded. Didn’t we know that already?

Myers-Briggs, another personality test, indicates the following traits:

¥          Extraversion versus Introversion E or I

¥          Sensing versus iNtuition S or N

¥          Thinking versus Feeling T or F

¥          Judging versus Perceiving J or P

 

When you take the test, you are given a Myers-Briggs Personality Type. But what are you supposed to do with that information? There are some Myers-Briggs modules on team-building and how to deal with other Myers-Briggs types, but how do you know the personality type of everyone you encounter? One company made everyone put their Myers-Briggs profile on their coffee cups, but this concept was a miserable failure.

Let’s a look at another case study, a thirty-year-old financial consultant who could not keep a job. She was a top of her class MBA from an Ivy League school and her IQ was 138. Most of the time, she was hired on the spot. But she went through six jobs in four years. One of her clients actually brought a lawsuit against her.

Her EQ-i® (Emotional Quotient Inventory) showed “a very high independence score and a very low interpersonal relationship score suggests that she is a loner, perhaps due to a serious inability to relate to others. Moreover, her difficulty in empathizing with others contributes to this inability to relate to people and to feel part of the larger social context.”

When this woman took the Myers-Briggs, she was an ESFJ (Extraverted Feeling with Introverted Sensing). But the results of the Myers-Briggs gave her little information about why she could not hold a job. After taking the EQ-i®, she could target specific areas for development that helped in her pursuit of a career.

With personality tests, your results rarely change throughout your life, and if they do, it probably has more to do with the context in which you took it. You may shift slightly as you age. The other problem is that there is no clear path to development. If you are an ESFJ, do you want to become an INFT? And how do you do that exactly? What are the development strategies to get you there? There are none. Simply knowing yourself better does not create behavioral change that you need to be able to attain your goals. We say it over and over in our courses: Awareness alone will not change behavior!

The EQ-i® is a very different tool. It measures specific competencies such as empathy, assertiveness, and problem solving skills. It is very dynamic and reflects what is going on in your life and work at the time. If you are going through a difficult time, it will be reflected in the scores. This is much more valuable information. And when you look at that snapshot and where you want to be in the future, it becomes extremely practical. Then you choose areas to develop, and a detailed development plan is created utilizing specific development strategies. There is practical application, measurement, and improvement. This creates fundamental behavioral shifts. Personality tests simply do not do that.