Out Running the
                           Tsunami of Change
                                 Rex Miller
                 ...
Outrunning The Tsunami of Change




Thursday, April 29, 2010
Different Seas   Different Ships




Thursday, April 29, 2010
The 4 Tsunamis of History

                               Oral        Print


                            Broadcast      D...
Thursday, April 29, 2010
Thursday, April 29, 2010
Thursday, April 29, 2010
Thursday, April 29, 2010
Thursday, April 29, 2010
Character
                           Content




                            Image      Facebook Vote


                  ...
Oral
                Holistic, Circular, Symbolic,
                 Interdependent
           Print
                 Linea...
Thursday, April 29, 2010
Thursday, April 29, 2010
Resilient

                           Adaptable
Thursday, April 29, 2010
Thursday, April 29, 2010
Thursday, April 29, 2010
Digital Immigrants   Digital Natives




Thursday, April 29, 2010
Boomer
                                                 50%

                            Over 65


                       ...
Millennials
                                43%




                                   2018
                           Gen...
2 Camps
                Finding the New Normal
                             or
         Hoping for the Old Normal



Thurs...
Common Phrases

         80 Websites                  Industry Leader
                                      Strive for Exc...
AV Trends

             • Scope Blur
             • Commoditization
             • Prefabrication
             • Teleprese...
Thursday, April 29, 2010
Productivity Gap




Thursday, April 29, 2010
The Bid Game vs. Project Success Factors
      • The bid ≠ the business case
      • Negative correlation between low bid
...
How Do We Force Projects to Behave?

             •Fragmented
             •Silo’d
             •Linear/Sequential
       ...
Thursday, April 29, 2010
Thursday, April 29, 2010
Sutter Health Past Experience




Thursday, April 29, 2010
Traditional vs. Integrated Target Pricing




Thursday, April 29, 2010
How do Real Project Behave?
              •Complex
              •Relational
              •Require trust
              •N...
Results of a Broken System

          • $300-$500 billion annual WASTE
                (buildingSmartAlliance)


         ...
Uncovering the Hidden Waste
         • Labor = 50% @ 30% efficiency = 35% waste

         • Materials = 40% @ 70% efficien...
New Operating Principles (imperatives)

                 Thought Leadership
                 By-Products to Products
     ...
Thought Leadership

Thursday, April 29, 2010
By-Products to Products

Thursday, April 29, 2010
Select Teams not Players




                           2004        2008
Thursday, April 29, 2010
Evidenced Based Team Formation




Thursday, April 29, 2010
Playing To Your Strengths


                                 17%
                                 engaged 29%
            ...
Thursday, April 29, 2010
Thursday, April 29, 2010
The ROI of Trust
            • Warren Buffet: Handshake deal for McLean

            • LogicaCMG study of 1200 contracts: ...
Trust: Deficit to Dividend
                           Trust Balance      -40%           -20%          Neutral          20%...
NO Waste - Sutter Health & DPR




                                                   10% under budget
                   ...
The Value of
                            a Promise


                           Guaranteed Price
                         ...
Thursday, April 29, 2010
Call To Action
        •Develop a Digital Mindset and Tools
        •Design Resilient and Adaptable Organizations
        ...
rmiller@tagconsulting.org
            214-498-3055
                           •Speaking
                           •Streng...
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Tsunammis of Change

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Tsunammis of Change

  1. 1. Out Running the Tsunami of Change Rex Miller Thought Leader TAG Consulting Thursday, April 29, 2010
  2. 2. Outrunning The Tsunami of Change Thursday, April 29, 2010
  3. 3. Different Seas Different Ships Thursday, April 29, 2010
  4. 4. The 4 Tsunamis of History Oral Print Broadcast Digital Thursday, April 29, 2010
  5. 5. Thursday, April 29, 2010
  6. 6. Thursday, April 29, 2010
  7. 7. Thursday, April 29, 2010
  8. 8. Thursday, April 29, 2010
  9. 9. Thursday, April 29, 2010
  10. 10. Character Content Image Facebook Vote Network Thursday, April 29, 2010
  11. 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. 12. Thursday, April 29, 2010
  13. 13. Thursday, April 29, 2010
  14. 14. Resilient Adaptable Thursday, April 29, 2010
  15. 15. Thursday, April 29, 2010
  16. 16. Thursday, April 29, 2010
  17. 17. Digital Immigrants Digital Natives Thursday, April 29, 2010
  18. 18. Boomer 50% Over 65 2008 6% Millennials 6% GenX 38% Thursday, April 29, 2010
  19. 19. Millennials 43% 2018 GenX Boomers 33% 24% Thursday, April 29, 2010
  20. 20. 2 Camps Finding the New Normal or Hoping for the Old Normal Thursday, April 29, 2010
  21. 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. 22. AV Trends • Scope Blur • Commoditization • Prefabrication • Telepresence and new competitors • Margin Erosion Thursday, April 29, 2010
  23. 23. Thursday, April 29, 2010
  24. 24. Productivity Gap Thursday, April 29, 2010
  25. 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. 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. 27. Thursday, April 29, 2010
  28. 28. Thursday, April 29, 2010
  29. 29. Sutter Health Past Experience Thursday, April 29, 2010
  30. 30. Traditional vs. Integrated Target Pricing Thursday, April 29, 2010
  31. 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. 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. 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. 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. 35. Thought Leadership Thursday, April 29, 2010
  36. 36. By-Products to Products Thursday, April 29, 2010
  37. 37. Select Teams not Players 2004 2008 Thursday, April 29, 2010
  38. 38. Evidenced Based Team Formation Thursday, April 29, 2010
  39. 39. Playing To Your Strengths 17% engaged 29% disengaged 54% unengaged Thursday, April 29, 2010
  40. 40. Thursday, April 29, 2010
  41. 41. Thursday, April 29, 2010
  42. 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. 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. 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. 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. 46. Thursday, April 29, 2010
  47. 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. 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

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