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What is Construction 3.0 Strategies?

Broken industry

It's the answers for a broken industry. If you don't think it's broken consider the following:

Even before the recession 40 percent of contractors didn't make a profit
During the boom of 2005, the industry's ROI was a little more than half the average for all U.S. industries
It's the only major U.S. industry that hasn't increased productivity during the last 50 years
The industry has the highest turnover rate of any industry, except the restaurant industry
The industry has struggled for decades to attract enough qualified mechanics and managers
Client's complain about poor quality, high prices, and missed schedules

During a recent survey of Construction Industry Roundtable (CIRT) members, 15 percent said that the construction industry model is obsolete, and another 35 percent said it needs major changes. Historically the construction industry's greatest capabilities were its logical, analytical, fact-based and quantitative abilities that defined the Information Age. Daniel Pink wrote in A Whole New Mind that these left-brained capabilities "are necessary, but no longer sufficient." He adds, "The 'right-brained' qualities of inventiveness, empathy, joyfulness, and meaning -- increasingly will determine who flourishes and who flounders." Construction industry participants must use a whole-mind approach to thinking about the challenges the industry faces if they want different results.

New way of thinking

Construction 3.0™ Strategies is a whole-brained approach that takes several separate successful initiatives, such as integrated project delivery, best value, lean, effective leadership, and strategic thinking all of which have a common foundation, and molds them into a single comprehensive strategy that redefines the construction industry. At the heart of the strategy is the idea that value must be increased for all stakeholders because nothing else is sustainable. By combining these initiatives into a cohesive Construction 3.0™ strategy, the whole becomes greater than the sum of the parts.

General Sun Tzu writing in the Art of War provides the vision for Construction 3.0™ Strategies. He wrote, "Those skilled in war subdue the enemy's army without fighting. Their aim must be to take all under heaven intact through strategic superiority." Construction 3.0™ Strategies is a philosophy that strives to find a superior approach to construction, where all team members collaborate to create superior results, instead of competing with team members.

Construction 3.0™ developed from years of experience, research and studying. In addition, Ted conducts weekly interviews of leading thinkers in the industry, in business and in academia for his New Construction Strategies Internet radio program. The result is a cutting-edge strategy built on the ideas of the most successful people in the construction industry.

The construction industry must change and Construction 3.0™ Strategies provides the tools to make that transformation.

The key elements of Construction 3.0™

A more effective leadership style

Effective leadership isn't about control and motivation. Instead it's about perception, or the ability to look ahead. Because effective leaders are perceptive and understand existing conditions, they are able to properly allocate both personnel and capital resources for maximum benefit. Construction 3.0™ Leadership provides the necessary skills for a company to develop highly effective leadership throughout the organization.

A more strategic thought process

Strategic thinking, just like leadership, is about being able to perceive existing conditions and effectively plan for the future. This is true whether at the company level or simply planning a project. In essence, strategic thinking is simply about effective planning. Construction 3.0™ Strategy provides the tools to form an effective plan for the future at both the company and the project level.

A value-driven approach to marketing

The industry must focus on delivering maximum value to the client in order for a contractor to maximize its potential. After all we are paid for the value we deliver. Contractors must learn how to compete based on value, not price. Instead of just focusing on a bid price, contractors must stress to clients the impact that quality, life-cycle costs, and longer schedules have on total project costs. To do this, contractors must spend more time understanding the client's true needs. Construction 3.0™ Marketing provides the foundation for companies to compete on value, instead of price.

An increased emphasis on innovation

Peter Drucker has written that the two skills a company must master are marketing and innovation. When referring to marketing, Drucker meant companies must excel at marketing research in order to better understand their client's needs. Once they understand the needs, they need to apply creative thinking to produce innovative solutions that better address the client's needs. Finding better solutions is the key to a competitive advantage. Construction 3.0™ Strategies provides the tools for companies to improve their problem solving ability -- a critical skill that allows a contractor to differentiate itself from its competition.

An increased reliance on collaboration

Integrated project delivery is focused on collaboration, instead of confrontation. The more complex a system, and construction is one of the most complex, the greater the need for collaboration. Collaboration is not about relationships. It is about working together for mutual benefit of the project in order to maximize the value produced by the entire project team. Construction 3.0™ provides the principles to create this more collaborative project environment.

An effective approach to risk management

Risk management is one the most important aspects of a project. Just like leadership and strategic thinking, it requires the ability to look ahead in order to identify the potential risks. Once the risks are identified the necessary steps can be taken to minimize those risks. Construction 3.0™ Risk Management provides the tools and processes necessary to minimize project risk for all stakeholders.

An increased emphasis on lean construction methodologies

Lean construction is about eliminating waste and increasing the value delivered to clients. The construction industry can no longer afford the waste that is built into the traditional approach to construction. Those companies that don't start implementing lean concepts will be left behind. Construction 3.0™ provides the foundation for a more productive construction company and construction process.

Maximum effective use of technology

While technology alone doesn't cause the problems, or solve the problems, it can definitely accelerate the implementation of solutions. For example, the construction industry needs to reduce waste. This could be done without technology; however building information modeling (BIM) can certainly make the process easier. Construction 3.0™ Strategies is about effectively using technology where applicable to assist in transforming the industry, but avoids using technology for just the sake of using technology.

Effective use of measurement

Everyone has heard the expression, you get what you measure. This is true, but measurement also impacts people's behavior. Therefore, it is critical that the right measurements are established to positively impact behavior. Construction 3.0™ Strategies focuses on the effective use of measurement to improve performance by quantifying progress, not punishing performance.