The Garrison Report #2006-10

How to Reach Certainty - How to Avoid Problems in Quality

When companies have reached certainty, they no longer expect problems to occur. In fact, they are almost astonished when they do occur. This isn't because they are naive, but because they have looked ahead to solve the problems before they occur. This is the only way to achieve high performance in a consistent manner.

What Is Quality?

Philip Crosby defines quality as the "conformance to requirements." The important fact to consider here is that we are talking about the client's requirements. While this may seem obvious, too many contractors focus on what they believe is important to them and even argue that they performed exactly according to the plans and specs.

The problem with this theory is that quality consists of three elements, not merely the performance defined by the bricks-and-mortar work outlined in the plans and specs. The other two elements of quality are services and the relationship. While the plans and specs define some services, such as schedule, they usually leave many services undefined. Even worse, the relationship is never spelled out in the specs, even though this is probably the most important aspect of the project.

If you don't believe that, consider the following: Have you ever completed a project where you thought you really nailed it, yet the client wasn't happy. In all probability you didn't manage the relationship. But why is the relationship so important? In reality, very few clients can actually properly judge your technical performance. In fact, in most cases the only thing the clients know for sure is whether they like you, which is based on how you manage the relationship. When you understand this, you realize that, as crazy as it may sound, it's almost more important to manage the relationship than to make sure you're technically competent.

However, this can often be a challenge. The technical aspects are spelled out in the plans and specs, but the critical aspects of a relationship vary from client to client. The key to developing relationships is through effective communication. All the contractors on the project need to communicate with the project owner. Why all contractors? Each subcontractor on the project is the expert in its specialty; therefore, they are the ones most likely to add value to the client in that particular area of the project.
This means that general contractors need to facilitate the meetings between the subcontractors and the clients. Obviously, common sense is needed. The opportunities for the pile-driving contractor to add value are much fewer than for the mechanical or electrical contractor. The amount of exposure should match the potential, and the timing is essential. For example, having the pile-driving contractor meet the client near the end of the project would be a waste of time; however, a pile-driving contractor might have some valuable suggestions before the project starts.

The general contractor should not consider this a threat. Doctors in charge of a patient often consult with specialists, so why can't the general contractor who is responsible for managing the project consult with its expert subcontractors? The general contractor's responsibility is to provide the best subcontractors for the project, not merely thecheapest. Therefore, the general contractor and subcontractors should constantly be thinking of ways to provide greater value for the client. Keep in mind that if the client is happy with the project, everyone involved benefits.

Further, when Engineering News-Record conducted a survey of owners, owners claimed the best projects had great communication up and down the total organizational structure of the project. It appears in many cases that owners understand what's best for the projects better than some general contractors who attempt to keep subcontractors away from owners. This is a big mistake because when general contractors do this, they get in the way of many opportunities to improve their relationship with their clients. After all, what better way to find out what the clients really want and need than to talk to them?

What all this means is that the project needs to be managed from the perspective of the client's expectations. If the client has unrealistic expectations, then the expectations need to be adjusted before the project begins. If you don't do this, you will have an unhappy client no matter what you do. When you attempt to clarify the situation to a client before the project, it's an explanation. If you attempt to clarify why you couldn't achieve the expectations after the project is over, it's merely an excuse. If you have established sufficient influence with the client, the client will listen. If you don't have sufficient influence with the client, that's another problem. However, if you can't change the client's expectation to something that is realistic, you are only setting your company up for failure. It would be better to walk away from the project.

When all the contractors on the project know what the client wants, know how to deliver that product or service, they become certain that they will deliver as requested. If they don't, they are shocked not because the client isn't happy, but because they are unhappy with their own performance. In other words, certainty requires a different mindset, a different way of doing business, and different kinds of relationships. However, the payback is impressive.

This approach to business creates greater customer satisfaction, greater profit margins, increased repeat business, less stress, fewer problems, greater quality, and, in essence, a win-win situation for everyone. Toyota started a revolution when it introduced the concept of lean production into the world of manufacturing. It's time that the construction industry embraced these changes. Dr. Dean Kashiwagi, the director of Performance Based Studies Research Group at Arizona State University, has adapted these concepts into what he refers to as the Best Value Approach to construction. If you would like to hear more about Dr. Kashiwagi's views, visit www.ncs30.com and listen to the author's three interviews with Dr. Kashiwagi.

 

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