Tsunammis of Change

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  • 1. Out Running the Tsunami of Change Rex Miller Thought Leader TAG Consulting Thursday, April 29, 2010
  • 2. Outrunning The Tsunami of Change Thursday, April 29, 2010
  • 3. Different Seas Different Ships Thursday, April 29, 2010
  • 4. The 4 Tsunamis of History Oral Print Broadcast Digital Thursday, April 29, 2010
  • 5. Thursday, April 29, 2010
  • 6. Thursday, April 29, 2010
  • 7. Thursday, April 29, 2010
  • 8. Thursday, April 29, 2010
  • 9. Thursday, April 29, 2010
  • 10. Character Content Image Facebook Vote Network Thursday, April 29, 2010
  • 11. Oral Holistic, Circular, Symbolic, Interdependent Print Linear, Sequential, Rational, Autonomous Broadcast Fluid, Fragmented, Emotional, Isolated Digital/Interactive Holistic, Non-linear, Whole-Brain Systems Thinkers, Interconnected Thursday, April 29, 2010
  • 12. Thursday, April 29, 2010
  • 13. Thursday, April 29, 2010
  • 14. Resilient Adaptable Thursday, April 29, 2010
  • 15. Thursday, April 29, 2010
  • 16. Thursday, April 29, 2010
  • 17. Digital Immigrants Digital Natives Thursday, April 29, 2010
  • 18. Boomer 50% Over 65 2008 6% Millennials 6% GenX 38% Thursday, April 29, 2010
  • 19. Millennials 43% 2018 GenX Boomers 33% 24% Thursday, April 29, 2010
  • 20. 2 Camps Finding the New Normal or Hoping for the Old Normal Thursday, April 29, 2010
  • 21. Common Phrases 80 Websites Industry Leader Strive for Excellence A Bunch of Marquis Clients • 6 Mention Sustainability World Leading • 3 Use Social Networking Highest Quality Leading Provider • 2 Made me Smarter We have Values • 1 Provided a Blog We started in a garage in 19... • 1 Mentioned the iPad PS: Get Rid of Flash! Thursday, April 29, 2010
  • 22. AV Trends • Scope Blur • Commoditization • Prefabrication • Telepresence and new competitors • Margin Erosion Thursday, April 29, 2010
  • 23. Thursday, April 29, 2010
  • 24. Productivity Gap Thursday, April 29, 2010
  • 25. The Bid Game vs. Project Success Factors • 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 Thursday, April 29, 2010
  • 26. How Do We Force Projects to Behave? •Fragmented •Silo’d •Linear/Sequential •Hierarchical Owner •Adversarial •Scope Based •Anticipates Litigation •Low Price / Bid Thursday, April 29, 2010
  • 27. Thursday, April 29, 2010
  • 28. Thursday, April 29, 2010
  • 29. Sutter Health Past Experience Thursday, April 29, 2010
  • 30. Traditional vs. Integrated Target Pricing Thursday, April 29, 2010
  • 31. How do Real Project Behave? •Complex •Relational •Require trust •Need tight coordination •Fluid •Interactive •A system •A discovery process Thursday, April 29, 2010
  • 32. Results of a Broken System • $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) Thursday, April 29, 2010
  • 33. Uncovering the Hidden Waste • 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 Thursday, April 29, 2010
  • 34. New Operating Principles (imperatives) Thought Leadership By-Products to Products Integrated Teams Trust No Waste Owner Value Language Brand Promise Thursday, April 29, 2010
  • 35. Thought Leadership Thursday, April 29, 2010
  • 36. By-Products to Products Thursday, April 29, 2010
  • 37. Select Teams not Players 2004 2008 Thursday, April 29, 2010
  • 38. Evidenced Based Team Formation Thursday, April 29, 2010
  • 39. Playing To Your Strengths 17% engaged 29% disengaged 54% unengaged Thursday, April 29, 2010
  • 40. Thursday, April 29, 2010
  • 41. Thursday, April 29, 2010
  • 42. 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
  • 43. Trust: Deficit to Dividend Trust Balance -40% -20% Neutral 20% 40% Environment Stressful Worry No worries Positive Uplifting Focus Pre-emption Process Scope Outcome Mutual success Relationships Disrespect Indifferent Cordial Cooperative Collaborative Process Hidden Chain of Task at hand Keeping Making it easier agendas command promises for others Behavior CYA Do my job Respect Partnering Transparency Outcomes Politics Slow Efficient Learn from Improve mistakes Systems Distracting Hassle Does not get in Supportive Adaptive the way Ethics Self-interest Compliance What is What is right What is good expected Thursday, April 29, 2010
  • 44. NO Waste - Sutter Health & DPR 10% under budget $1 million a bed 6 months early $1000 per square foot 6 RFIs MEP Thursday, April 29, 2010
  • 45. The Value of a Promise Guaranteed Price Guaranteed Move-in Date No Change Orders 2-Year Warranty 1 Page Contract Thursday, April 29, 2010
  • 46. Thursday, April 29, 2010
  • 47. Call To Action •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 Thursday, April 29, 2010
  • 48. rmiller@tagconsulting.org 214-498-3055 •Speaking •Strengths Based Leadership and Coaching •Building Resilient and Adaptable Organizations •IPD Strategies and Implementation •Market Repositioning •Creating Integrated Alliances •Business Development •Change Management Thursday, April 29, 2010