Issue 3 May/June 2015
The Water Industry Why Partnering is so Important to this Industry Right Now.
INSIDE: page 4
page 8
Trust is the Critical Path
It’s all about Attitude
Delivering dynamic projects through trust, collaboration and partnership.
Wor ld-Cl as s Inno v ator s. L andmark Buil dings. Inspiring Per formance . www.henselphelps.com
CONTENTS INTERNATIONAL PARTNERING INSTITUTE IPI is a non-profit 501(c) 3 charitable organization that is funded by our members and supporters who wish to change the culture of construction from combative to collaborative. Phone: (925) 447-9100
BOARD OF ADVISORS Larry Anderson, Anderson Partnering Pierre Bigras, PG&E Roddy Boggus, Parsons Brinckerhoff Pat Crosby, The Crosby Group Pete Davos, DeSilva Gates Construction Larry Eisenberg, Ovus Partners 360 Michael Ghilotti, Ghilotti Bros, Inc. Richard Grabinski, Flatiron West, Inc. Randy Iwasaki, Contra Costa Trans. Authority Jeanne Kuttel, CA Dept. of Water Resources Mark Leja, Caltrans (Retired) John Martin, San Francisco International Airport Pete Matheson, Granite Construction Geoff Neumayr, San Francisco International Airport Jim Pappas, Hensel Phelps Construction Co. Zigmund Rubel, Aditazz Ivar Satero, San Francisco International Airport Stuart Seiden, County of Fresno Thomas Taylor, Webcor Builders David Thorman, CA Div. of the State Architect, Ret. John Thorsson, NCC Construction Sverige AB Len Vetrone, Skanska USA Building
Features May/June 2015 The Water Issue
IN THIS ISSUE
8
Facilitator’s Corner
Tips to help develop and maintain a collaborative mindset on your projects.
10
Rob Reaugh, MDR
Why the Water Industry Needs Partnering Now
ASSISTANT DIRECTOR
Hear from the experts about
Dana Paz
why water projects need a new
EXECUTIVE DIRECTOR
FOUNDER & CEO
approach.
Sue Dyer, MBA, MIPI, MDRF
EDITORIAL OFFICE: SUBSCRIPTIONS/ INFORMATION International Partnering Institute 291 McLeod Street Livermore, CA 94559 Phone: (925) 447-9100 Email: ed@partneringinstitute.org www.partneringinstitute.org
14
Research Roundup Wonder what makes some teams so successful,
DESIGN/CREATIVE
and others not so much?
Michelle Vejby Email: mvejby@msn.com
One reason is effective communication.
COPYRIGHT Partnering Magazine is published by the International Partnering Institute, 291 McLeod Street, Livermore, CA 94550. Six bi-monthly issues are published annually. Contents copyright 2014 International Partnering Institute, all rights reserved. Subscription rates for non-members, $75 for six electronic issues. Hard copy issues are available only to IPI members. Additional member subscriptions are $75 each for six issues. Postmaster please send address changes to IPI, 291 McLeod Street, Livermore, CA 94550.
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4
Executive Director’s Report It takes structure, commitment and trust to form successful, collaborative teams.
6
Committee Spotlight The IPI Awards Committee works to recognize those organizations and project teams that are changing the culture of construction.
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Best Practices IPI Meta-Analysis Part II: The benefits of partnering and its impact on project performance outcomes.
Cover photo courtesy California Department of Water Resources: Perris Dam Remediation (the DWR’s first partnered project) showing prep for blasting of the haul road.
May/June 2015 Partnering Magazine
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EXECUTIVE DIRECTOR’S REPORT
Rob Reaugh, MDR IPI Executive Director
Trust is the Critical Path
T
...the level of trust on a project and the cost of the project are directly correlated.... projects with high levels of trust had low cost (compared to the budget) and projects with low levels of trust tended to have high costs.
he industry is hungry to
the old school “command and control,”
So what should we do about it?
learn more about how
Mike Ditka style of leadership—
We need to make trust important to our
to consistently form and
instead it takes a more open (trusting)
project teams by measuring it from the
establish collaborative teams.
approach, where we are teaching our
get-go. The most direct way to do this is
At IPI we pride ourselves on knowing
Project Managers to make decisions at
add it to our project surveys (Scorecards),
a little bit about that process. We have
the field level and mentoring them to
and measure trust monthly. An emerging
gathered best practices and lessons
think holistically about project issues
tool for promoting trust-building is
learned from owners, contractors,
rather than waiting around to punish
through a Lean process called “reliable
designers, CM’s, facilitators, and
them long after they have made the
promises.” In “reliable promises,” team
subcontractors who have worked on
wrong decision.
members co-create planning milestones
thousands of projects and have learned
and measure just how frequently
what it takes. And what it takes is
The third, trust, is often the most
structure, commitment, and trust.
difficult of all to achieve and yet is the
delivering on what they say they are going
most essential product of a collaborative
to do. This is a way to turn consistent
The first, structure, is relatively
individual team members and trades are
project team. According to a 1993
follow-through into a desirable trait,
easy to adopt. IPI Committees have
study by the Construction Industry
thereby promoting trust.
already developed the IPI Matrix and
Institute, the level of trust on a project
Partnering Specifications for you. The
and the cost of the project are directly
structure is set up to give you enough
correlated. They looked at 262 projects
it, keep in mind that collaboration is
partnering to ENSURE a successful
and learned that projects with high
still not the norm in the industry. You
project outcome, regardless of the
levels of trust had low cost (compared
will need to promote trust early, and
project size or complexity.
to the budget) and projects with low
maintain the partnering structure
Regardless of how your team develops
levels of trust tended to have high costs.
and commitment to support it. And, to
The second, commitment, can be
IPI’s 2015 Meta-Analysis by Mollaoglu
borrow from 2012 IPI Awards Ceremony
a little more challenging. This takes
(Korkmaz) and Sparkling (highlighted
Keynote Speaker Dave Niese, “Take the
executives who are willing to show up
p. 16) vetted this finding, stating that
first opportunity on your project where
and demonstrate just how important
mutual trust within the team is the
you could exploit the other side and
Partnering is to the outcome of the
single best indicator of the project team’s
instead be trustworthy; it will pay off in
project. It also takes leadership, but not
performance!
the long run.”
4
Partnering Magazine May/June 2015
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Collaboration. Innovation. Sustainability. Partnering to build a better future for our customers and communities.
James B. Hunt Library, North Carolina State University
George Bush Intercontinental Airport, Terminal B Redevelopment, Houston TX
Gold Line Bridge, Arcadia, CA
2013 NAIOP Community Enhancement Day, Seattle, WA
usa.skanska.com
COMMITTEE SPOTLIGHT
IPI Awards Committee
I
n order to effectively change the culture of Construction, the IPI Board of Advisors launched a
The Strategic Partnering Achievement Award goes to
program to recognize companies, project teams, and
organizations that have either worked internally between
individuals who are outstanding in their practice of
departments, or externally between multiple organizations to
Partnering. Since its inception in 2010, Larry Eisenberg (Ovus
improve collaboration. This Award has gone to the CA Division
Partners 360) and David Thorman (CA Division of the State
of the State Architect, (2010), Caltrans Construction Partnering
Architect, Ret.) have Co-Chaired the IPI Awards Committee
Steering Committee (in 2011), the Utah Transit Authority
and served as lead judges for the Partnered Projects of the
Frontlines 2015 Program (2013), and NCC Construction Sweden
Year. In six short years, the Awards Program has become the
and Telge Fastigheter (2014).
yardstick for highly collaborative construction project teams and organizations. In 2015, IPI received a record number of Partnered Project of the Year applications; and our volunteer panel did an outstanding job judging, ranking, and providing feedback on every single project. In this issue, we wanted to recognize the substantial effort and gains the Awards Committee has made! When it launched the Awards program, the Committee developed two Categories of Awards—Industry Level Awards (focused on Organizations and Individuals who are really making a difference for Collaborative Partnering) and the Partnered Project of the Year, for teams that have used the Collaborative Partnering tools on a specific, completed project. IPI offers four Industry Awards: The Partnering Champion, the Strategic Partnering Achievement Award, the Excellence in Partnering Facilitation Award and the Chairman’s Award. These Awards are not intended to be given each year. The Partnering Champion is IPI’s highest honor—it goes only to Organizations that have been leaders in sharing Collaborative Partnering throughout the industry. Each of the recipients has established a track record for supporting
IPI PARTNERING CHAMPIONS IPI’S HIGHEST HONOR — 2010 — Caltrans — 2011 — Ghilotti Bros., Inc. — 2012 — C.C. Myers, Inc. — 2013 — Ohio DOT — 2014 — Hensel Phelps Construction Co. — 2015 — San Francisco International Airport – Design & Construction Division
the Collaborative Partnering Model and for affecting positive change so construction projects are more collaborative and less adversarial. 6
Partnering Magazine May/June 2015
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The Excellence in Partnering Facilitation Award goes to outstanding Partnering Facilitators who have worked both with project teams and organizations over many years to improve the industry. The first and only recipient of this award is Jim Eisenhart of Ventura Consulting Group (2012). The last Industry Award is the Chairman’s Award. Each year, this honor is given to an individual who has contributed greatly to IPI’s growth and impact on the industry. David Thorman, Larry Eisenberg, Stuart Seiden, Cinda Bond, Lisa Watada have each received this Award for outstanding service to IPI. The 2015 recipient is J Louise McGinnis Barber. For Project Teams, IPI offers the John L. Martin Partnered Project of the Year Awards. In the first year of the program, the judges gave awards to new project teams (who had completed work between Jan 1 and Dec 31 2009) and Legacy Award winners, who had developed a successfully partnered project from 2005-2009. Since then, more than 70 teams have received Partnered Project of the Year Awards. In 2015, IPI set a record with 29 applications and the competition is getting fiercer each year. Teams are divided by project type and cost; teams can earn a Sapphire (3rd highest), Ruby (2nd highest), or Diamond Level (highest) Award. One of the great initiatives by the Awards Committee is to collect data from the applicants. Since 2013, the IPI Awards
Dream It! We’ve Got You Covered
projects represent $5.77 billion and winning teams have saved nearly $497 million from the engineer’s estimates. This is an AVERAGE of 9% savings! Furthermore more than 78% of the projects have maintained perfect safety records and more than 76% finished on time or ahead of schedule. Perhaps most
The challenges facing today’s airports are endless, yet so are the opportunities.
importantly, we have learned over the past three years that $1 spent on Partnering Facilitation equals $81 of savings to
Parsons Brinckerhoff
the project team! Partnering is an outstanding investment and
offers a full range of
we are so grateful to our IPI Awards Committee volunteers who have helped us make our Partnering Awards the most prestigious worldwide partnering awards! IPI is honored by the service of David Thorman and Larry
services to partner with airport owners to envision the future … and then create it.
Eisenberg and our IPI Awards judges and hope that you will contact us at ED@partneringinstitute.org or call (925) 447-9100 to get involved!
VISIT THE IPI AWARDS PAGE FOR MORE INFORMATION: WWW.PARTNERINGINTITUTE.ORG/ AWARDS
www.partneringinstitute.org
For career opportunities and/or more information, please visit
pbworld.com
May/June 2015 Partnering Magazine
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FACILITATOR’S CORNER
IT’S ALL ABOUT ATTITUDE Tips to help develop and maintain a collaborative mindset
The reality is that the success of partnering, and the project, depends as much on attitude and approach as it does on structure and tools. 8
P
Partnering Magazine May/June 2015
artnering is about developing a collaborative relationship between the parties involved in a project. In the process, we develop and use structured steps to implement the tools of Partnering. However, just because a project team has gone through the process of partnering, defined the appropriate tools, such as a project
report card, team evaluation, and issue resolution ladder and agreed to an implementation plan, doesn’t guarantee the greatest degree of sucess. “Check the box” partnering is not enough. We see this repeatedly demonstrated in our industry. A project team engages in the partnering process, uses the tools, and yet true project success eludes them. Some project teams simply do not achieve their full potential. As a facilitator, I see many issues, challenges, and difficult situations that are easy to address, yet seem like mountains to those directly involved. However, my role is not to force the project team to take the right actions. Instead, I facilitate the discussions and create the atmosphere where they will take the right actions in the end. The reality is that the success of partnering, and the project, depends as much on attitude and approach as it does on structure and tools. Use the following simple guidelines to start with and maintain a positive and productive attitude on your projects. www.partneringinstitute.org
Check yourself first
on expectations can
At the beginning of a project, or
go a long way to
partnering process, check yourself to
understanding each
make sure you have the right mindset
other’s position. If
and intentions. It’s not just the attitude
the expectations are
of the “other guy” that is important,
aligned, great; if not,
that’s out of your control. We all want
then focus on achieving
our own organization to be successful
the objective and intent,
in the delivery of the project, but
rather than attempting to
we need to make sure we approach
prove it was a bad spec.
with a collaborative mindset first. An understanding that success on the
Focus forward
project will be a result of cooperation
Mistakes and imperfections happen.
Show respect for others
and collaboration, not force and
This is natural in our business, and
This is easier said than done because
coercion. Allow yourself to go into each
any business. Instead of spending
it must occur in so many places and
new project with a mindset towards
precious time and energy on pointing
on so many levels. Show respect in
building long-term, productive, healthy
out someone’s mistakes and finding
meetings, on the phone, in emails, in
relationships.
fault, focus forward to find solutions,
person, and in any interactions with
as quickly as possible. Don’t dwell
anybody involved in the project. This is
on imperfections and mistakes.
also true when working with business
When issues come up related to cost,
Nobody wants to admit mistakes or
processes, levels of authority, or contract
schedule, scope, quality, or deliverables,
imperfections when they know it will
requirements that don’t necessarily
expectations can vary wildly. This is
result in blame, liability, or entitlement.
make sense or we agree with. We may
because a contract exists that acts as
These may be the facts of the case,
also be challenged to show respect when
a type of line in the sand. It defines a
but moving past these to focus on
there are so many other personalities
project (mostly) and the compensation
identifying and implementing solutions
involved in a project. We can’t possibly
associated with it. Since no contract
will keep the team focused on achieving
get along well with everyone, but we
is perfect, there will always be room
goals and successful project outcomes.
need to show respect for everyone’s role
for potential disputes, and the tension
Great solutions can often make
and their responsibilities, regardless of
that arises from the interpretation. Be
mistakes negligible.
if we like them personally or not. These simple guidelines can help make
within the team. Pretending it doesn’t
You are all on the same team now
exist will not make it go away; it only
Once a project has been awarded,
the project and the other team members.
makes the tension more palpable and
you are all on the same team. Project
The right attitude coupled with the tools
delays an inevitable dispute.
success and failure is tied to the entire
of partnering can reduce any mountain
team and you depend on each other.
to a mole-hill and enable a culture of
We all sink or swim together. We don’t
collaboration that can’t be defeated.
Be ready for tension
ready for this tension. Be honest, and talk openly if you feel that tension exists
Actively seek to clarify expectations
sure we maintain the right approach to
have an enemy, we have an objective.
Many disputes in our business arise out
If a project fails, we will all feel the
Eric Sanderson, MBA,
of unclarified expectations, and with
pain. If a project is successful, we can
MIPI President of Red
the expectation that the contract will
all take pride in its outcome and in the
Rocks Advisors, LLC.
offer clarity if we all read it the same
efforts we have made. Focus on the
Based in Arizona, Eric
way. Unfortunately, we don’t all read
success of your teammates and what
is an Award-winning
things the same way. There are too
you can do to help them be successful.
Partnering Faciliatator
many opportunities to misinterpret a
They will then be in a better position
requirement or not state a requirement
to help you be successful. Look out for
Wastewater, Horizontal and Vertical
clearly. Simply asking for clarification
your teammates.
Construction. RedRocksAdvisors.com
www.partneringinstitute.org
who specializes in
May/June 2015 Partnering Magazine
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WATER
WATER INDUSTRY
WHY THE WATER INDUSTRY NEEDS PARTNERING NOW THE U.S. WATER SUPPLY HAS BEGUN TO DOMINATE THE NEWS RECENTLY. IN JANUARY 2014, CALIFORNIA GOVERNOR JERRY BROWN DECLARED THE ONGOING CALIFORNIA DROUGHT A STATE EMERGENCY. IN NOVEMBER 2014, HE ASKED CALIFORNIA VOTERS TO SUPPORT A $7.5 BILLION BOND IN SUPPORT OF LOCAL WATER INFRASTRUCTURE PROJECTS, WHICH THEY SUPPORTED. LATER, IN APRIL 2015, HE ASKED MUNICIPALITIES TO RE-DOUBLE THEIR EFFORTS AND REDUCE WATER CONSUMPTION BY 25%1.
But California’s drought is just the tip of the iceberg. The American Water Works Association (AWWA), estimates that there are nearly 240,000 drinking water main breaks per year and the cost to replace the nation’s crumbling drinking water infrastructure will be more than $1 trillion over the next 25 years.2 Furthermore, the rate of floods and extreme weather incidents that threaten our water systems is on the rise.3
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Local municipalities will be expected to deliver projects that are much more technically complex, and will require working with more permitting agencies and new funding sources—Collaborative Partnering is the best tool that we are aware of for cultivating the collaborative culture needed to achieve success.
Partnering Magazine May/June 2015
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...the cost to replace the nation’s crumbling drinking water infrastructure will be more than $1 Trillion over the next 25 years.
For this article, we spoke with two experts in water and wastewater construction, Jeanne Kuttel, IPI Board of Advisors Member and Chief of the Division of Engineering for the California Department of Water Resources (DWR) and Ed McCormick, current President of the Water Envronment
If an owner is resisting adopting Partnering, host a Collaborative Partnering Orientation Training. There they will learn the ROI of Partnering.
Federation (WEF) and former General Manager for East Bay Municipal Utility District (EBMUD). We wanted to learn how projects are fundamentally changing and how Collaborative Partnering can
Resources Control Boards, the U.S. Army Corps of Engineers and
assist teams in the delivery of outstanding projects. By focusing on
others. This takes a highly collaborative effort and an ability to
the experience in California, we can identify lessons learned that
build consensus with a diverse team.
can be shared with the industry, worldwide.
The Changing Role of the California Department of Water Resources
Second, on a statewide water front, the incidence of emergency work related to extreme weather conditions, be it drought or flooding, has increased. “We are in crisis mode more often,” she
In 2014, Jeanne Kuttel, Chief of the Division of Engineering for DWR,
states. And on these projects, DWR’s traditional project delivery
and her staff have spearheaded an effort to implement Structured
has changed. They are no longer simply recoating pipelines
Collaborative Partnering on all large projects. She believes that
and building traditional seismic bridges. Instead they are
Partnering is an essential philosophy for improving outcomes,
interfacing with the environmental regulatory agencies and the
particularly because of the shifting requirements for DWR in project delivery. She shared that Partnering is, and will continue to be, important for DWR projects for a number of reasons: First, the nature of DWR projects are changing and our staff will have to be able to adapt. “Historically, we have built canals and infrastructure with an intended 50 year shelf life. Today we are more frequently handling seismic retrofits and repairs to existing infrastructure. Looking ahead, our teams will wear more hats and will lead projects that have elements of both facility rehabilitation and environmental restoration.” Environmental restoration projects require an ability to interface with several agencies like U.S. Fish and Wildlife Service, California State Water www.partneringinstitute.org
EBMUD Power Generation Station Renewable Energy Project May/June 2015 Partnering Magazine
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WATER INDUSTRY Figure 1.7 (far left): Average Annual Precipitation and Runoff by Hydrologic Region (taken from California’s Most Significant Droughts: Comparing Historical and Recent Conditions pg. 12, Department of Water Resources Report). Figure 1.8 (left): California Water Projects (taken from California’s Most Significant Droughts: Comparing Historical and Recent Conditions, pg. 13, Department of Water Resources Report).
local community to develop and execute designs that are more
wastewater collection systems. In order to deliver on the increased
holistic and better accomodate local species like Delta smelt,
demand, coupled with ever-more-stringent regulations including
sand hill cranes, and many others. As we look forward, she states,
nutrient removal, local and state agencies will have to learn how to
“our designs may have to cease relying on concrete, rock, steel,
operate in a collaborative way to be successful, including receiving
and imported fill, and instead use natural products, which will
grant or low interest loan federal and state funds.
shorten the shelf-life, but will allow for a better interaction with the environment over time.”
McCormick shared that during his tenure at EBMUD, “our average project, for the decade preceding moving to partnering all projects
Third, DWR staff’s actual role on projects is diversifying. “With the
over $2M, was completed at roughly 15% behind the construction
recently passed water bond, much of the funding will be passing
contract schedule, due to unforeseen conditions, weather, and
through DWR to local municipalities. In these cases, DWR staff
contractor or owner-caused delays. In contrast, many of our
will be serving in more of a project management role, rather than
partnered projects finished slightly ahead of schedule, due to
leading the construction (our more traditional role). This new
the high performance teams and teamwork created by owner,
role requires both engineering expertise and softer skills and
engineer, contractor and major subs via partnering.” And we all
Partnering will help us with that.”
know that “time is money.” This prompted Ed to eventually develop
Partnering for the Industry
a specification requiring structured Collaborative Partnering on projects valued at $5 million and greater, which continues today.
Ed McCormick is the former Manager of Wastewater Engineering
McCormick indicated that “Partnering is successful because all
for East Bay Municipal Utilitiy District (EBMUD) and currently the
project stakeholders come together before construction starts
President of the Water Environment Federation (WEF), the largest
to proactivey identify potential project obstacles and ways to
water quality association in the world, with over 35,000 members
minimize their impact on project quality, cost and schedule.”
from over 100 countries. He agrees that Partnering should be adopted more broadly in the water and wastewater sector.
Over his twenty year tenure at EBMUD, this translated to many millions of dollars saved and vastly improved project cultures. One
According to the U.S. Department of Commerce, the funding level
of the best examples of a project rescued by a partnering effort
for 2014 construction in water and wastewater was $22 billion
was the 2013 IPI Partnered Project of the Year—Sapphire Level
and water supply was $13.8 billion.4 These numbers will have to
winning EBMUD Power Generation Station Renewable Energy
increase dramatically in order properly serve the growing U.S.
Project, where they were able to accomodate a sixth month local
population, particularly with the crumbling water delivery and
electrical power utility delay and still deliver the project on budget!
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Partnering Magazine May/June 2015
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McCormick’s organization, WEF, has supported ongoing funding by the U.S. Congress in the form of the $1.1 billion Water Infrastructure Finance and Innovation Act (WIFIA) and the $1.45 billion Clean Water State Revolving Fund (CWSRF). We believe that the water and wastewater sector will continue to see funding growth and McCormick has shared his plan to spread Collaborative Partnering as an important area of focus for his tenture as WEF President. We wholeheartedly support the effort!
Conclusions In speaking with both Jeanne Kuttel and Ed McCormick, it becomes clear why Collaborative Partnering will be an essential tool for the next generation of water projects. In California, the drought has made us very focused on water conservation, recycling, desalinization, and habitat restoration. Across the United States, flood prevention and disaster relief have become essential skills for water agencies. What is clear is that the State Department of Water Resources and local municipalities will increasingly have to interface effectively with environmental agencies, stakeholders and thirdparty agencies. DWR employees will be shifting from the traditional engineering role to more of a habitat manager. Local municipalities will be expected to deliver projects that are much more technically
Interstate 880/State Route 92 Interchange Reconstruction Hayward, CA 2012 IPI Partnered Project of the Year, Diamond Level
complex and will require working in a collaborative way with more permitting agencies and new funding sources. This will require highly integrated project teams and Collaborative Partnering is the best tool for cultivating that collaborative culture. Moving forward, Jeanne shared her objectives for the California Department of Water Resources Partnering Program. They have already adopted a structured Partnering Specification (based on Caltrans’ Partnering Spec) and piloted the program with the Perris Dam Project, a three-year, $80 million Dam remediation job. They plan to follow through with the entire Collaborative Partnering model, meeting quarterly and following up with monthly scorecards to ensure a successful outcome. They also had Mark Leja, Caltrans Chief of Construction, present on his experiences with partnering to kick-off a Collaborative Partnering Orientation Training led by Rob Reaugh. IPI is very excited to support DWR and Ed McCormick with their new Partnering efforts and hopes to begin working with more state agencies and municipalities in 2015.
_____________________________________________________ 1 Department of Water Resources - http://www.water.ca.gov/waterconditions/ declaration.cfm (accessed 5/8/15). 2 http://news.wef.org/u-s-house-committee-urged-to-invest-in-water-and wastewater-infrastructure/ (accessed 5/8/15) 3 DWR - http://www.water.ca.gov/waterconditions/docs/California_Signficant_ Droughts_2015_small.pdf 4 US Census Bureau - http://www.census.gov/const/C30/release.pdf (accessed 5/9/15)
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As one of North America’s largest transportation and infrastructure contractors, our commitment to building the best is demonstrated in the projects we build and the partnerships we develop. Our success is dependent upon our relationships with owners, partners, designers, subcontractors and community members. Flatiron works closely with our partners to develop innovative solutions that benefit everyone, and we’re proud of what we’ve created together. The more than 20 partnering awards Flatiron has won in the past decade serve as recognition of these relationships and the resulting successful projects.
To learn more about Flatiron’s innovation in partnering visit
www.flatironcorp.com May/June 2015 Partnering Magazine
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RESEARCH ROUNDUP
Stop Your Communication Break Down
T
hink of your last high-functioning team—what
customer service teams, backroom operations teams and call
made them so successful? I’m sure you will recall
centers were all studied. Over several years, a number of teams
that the team was highly interactive, meetings felt
were studied and patterns began to emerge.
meaningful, and progress toward a common purpose
was consistently made. According to a recent research study, high-functioning teams
Key Findings What emerged is that the success of a team, whether it is a call
communicate in predictable ways across industries. What is
center, a pharmaceutical company, or a construction team, can
important is that how the team communicates appears to be
be revealed in its data signature. The MIT researchers isolated
more important than what the team is saying on a day to day
three Communication Pattern Factors (factors) that made
basis. More importantly, researchers have identified basic
up 40-60% of a team’s predictive success—Energy (10-20%),
interventions that enable teams to shift their behavior so they
Engagement (30%), and Exploration (10%).
begin to communicate in a more collaborative way, improving
•
productivity, and hence, the bottom line. The findings were highlighted in a recent article by Alex “Sandy” Pentland,
Energy is defined as the number and frequency of interactions that a team has.
•
Engagement is defined as how much the team connects
Director of the Human Performing Dynamics Laboratory at
directly. In other words if Boss A talks to B and C, how
MIT, in “The New Science of Building Great Teams,” from the
much do B and C talk with each other without Boss A
April 2012 Harvard Business Review.
present. Also, when they meet, do A, B, and C speak equally, or does A carry the bulk of the airtime. Teams
The Methodology In an effort to determine how “productive” teams
that have equal airtime have higher “engagement.” •
Exploration is defined as going outside the core group
communicate, the MIT research team embedded electronic
for additional information and interaction. This is
sensors into employee badges that allowed them to analyze
particularly important for creative teams.
communication behaviors including: tone of voice, body
It turns out that these three factors are more predictive
language, whom they talked to and how much, how frequently
of the team’s success than other seemingly critical factors
they interrupted people, how meetings were conducted, and
like intelligence, personality, skill and the substance of the
much more. The idea is that the “intervention” would be
conversations, combined!
low profile so team members would behave in a typical way. Teams would wear the badges for six weeks and the data would be analyzed. Teams from across a number of different sectors including innovation teams, post-op wards in hospitals, 14
Partnering Magazine May/June 2015
So to summarize, there are five key characteristics of the communication of a high-functioning team: 1.
When members of the team speak, they listen to each other and get roughly equal airtime. And when they www.partneringinstitute.org
2. 3. 4. 5.
speak, conversations are short and to the point.
also able to identify which sections of the project team are not
Team members face each other when they talk and the
communicating with the rest of the team (which will require
gestures they make are energetic.
an effort to break down the silo). Collaborative Partnering
Team members connect directly – they don’t just connect
introduces a Scorecard or Project Survey, which allows the
through the team leader.
team to rate how it is communicating and following up on its
The team has sidebar conversations (without the team
mutually created goals. We have yet to develop a graphical
leader present).
network representation of how the team is communicating,
Members periodically break to explore ideas outside of
but it is on the horizon.
the team and then return with information.1 There were three more findings from the Pentland study
Perhaps the most exciting piece of this research is how predictable high-functioning teams are and how Collaborative
that absolutely apply to construction: First, high-performing
Partnering and co-location helps teams reach those goals.
teams tend to have dozens of face-to-face exchanges per
When we understand the path for developing consistently
hour and they tend to be short and sweet. Second, all types
collaborative teams, we can set our teams up for success and
of communication are not created equal—face-to-face is the
intervene in a meaningful way when they are headed down
most productive and for small groups, videoconferencing or
the wrong path.
teleconferencing is next best. E-mail and texting does little to improve overall productivity. Third, providing the team graphical representations of the data can greatly influence behavior.
Source: Alex “Sandy” Pentlaud, “The New Science of Building Great Teams,” from April 2012, Harvard Business Review. Thank you to Neal Flesner of Ventura Consulting Group for sharing this article with IPI!
Applying These Lessons to Your Next Project If it wasn’t clear to you before, this study really highlights why co-location of construction project teams is such a good idea. Placing the team within the same trailer greatly increases the likelihood of face-to-face interaction and reduces reliance on email (improving Energy). It also improves the likelihood that Engagement will improve, because impromptu conversations can occur in the lunchroom, at the water cooler, etc. In the study, a bank in Prague saved $15 million per year after it replaced a staggered coffee break schedule with a companywide break. Apparently, the improvement in morale and the number of valuable, informal work conversations greatly enhanced productivity overall. When co-location is combined with Collaborative Partnering, the project team is intentionally focusing on its Energy, Engagement, and perhaps most importantly, Exploration.
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Partnering is an outstanding forum for bringing in project stakeholders who can help your team think creatively and
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holistically about an emerging project problem. A second item, which is important to recognize is that that the researchers were able to improve the three factors within teams by showing the study participants a graphic of “how they were communicating” versus “how they should be communicating.” The graphical demonstration depicts if a team leader is dominating the conversation (hurting Energy and stifling Engagement) or if they are too hands off. The researchers are _____________________________________________________ 1 Page 4 https://hbr.org/2012/04/the-new-science-of-building-great-teams. www.partneringinstitute.org
May/June 2015 Partnering Magazine
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BEST PRACTICES
IPI METAANALYSIS PART II The benefits of partnering and its impact on project performance outcomes.
A
s an organization dedicated to spreading the word on Partnering, one of our main premises has always been that partnering improves project outcomes (you’ve probably heard us say, “Complete your
projects on-time and on-budget!” more than a few times). Well, the IPI MetaAnalysis found significant data to support this assertion, and in Part II of our four-part series, we will go a little deeper and explore some of the benefits and outcomes you can expect by partnering your projects. First, teams that use partnering on their projects report common beneficial outcomes (namely, improved project quality, meeting schedule targets and meeting cost targets). Second, there is a distinct correlation between the use of partnering tools and improved outcomes: the more tools you use, the better Highway 101 Overlay, Ghilotti Bros., Inc.
the outcomes. Third, it is extremely important to measure trust among team members, as this is the best indicator of partnering success. And finally, in order to gauge the success of your partnering program, it is crucial to measure both
...teams that use
project and organizational outcomes.
partnering on their The Highest Ranked Benefits projects report common beneficial outcomes...improved project quality, meeting
of Partnering
In its synthesis of 174 studies on construction partnering, the MetaAnalysis found that the highest ranked benefit of partnering at the project level is improved project quality, as
schedule targets and
shown in the graphic at right. In second
meeting cost targets.
in third place is meeting cost targets.
place is meeting schedule targets and
Figure 1 – The Benefits of Partnering
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Partnering Magazine May/June 2015
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OK, this is pretty important, so it bears repeating: by partnering your projects, not only will you improve the quality of your project, but you will do so on-time and on-budget! In fact, beyond meeting deadlines, a significant number of studies ranked cost savings and faster project delivery as the most valued benefits of partnering. The research went on to show that when project outcomes
Beyond meeting deadlines, a significant number of studies ranked cost savings and faster project delivery as the most valued benefits of partnering
are consistently achieved throughout a series of projects, an organization can begin to measure the program level benefits of Partnering.
So, having established the demonstrated benefits of partnering individual projects, and the long-range benefits of a Collaborative
The most frequently identified organizational benefits
Partnering Program, let’s talk about how you can maximize these
reported are improved relationships among project participants,
benefits.
established trust, improved communications, increased profit margins, and an enhanced reputation in the industry. All of these
How to Guarantee Success in Partnering
benefits in turn lead to continuous organizational improvement,
Perhaps you have tried partnering on a few projects, but have
a better corporate culture, and the opportunity to increasingly
had mixed results. If so, you’ve probably wondered what
access additional projects. If you are an owner agency, this
accounted for the variance. When conducting the Meta-Analysis,
means you have more resources for more projects, and if
the researchers asked themselves the same thing, and found
you’re a contractor, designer, or CM, this means you will have
which particular elements within the partnering process have a
opportunities to win more bids/projects.
direct correlation to project outcomes.
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May/June 2015 Partnering Magazine
17
BEST PRACTICES Another extremely important factor in determining the success of a partnered project is that of Team Characteristics (the yellow box in Figure 2). We all know the nuanced differences between one project team and another. Some teams gel well, and some teams have to work a little harder at it. You’ve probably also perceived some key differences between teams who succeed and teams who don’t, so you may not be surprised that the research found that the single most important element in determining the success of a partnered project is mutual trust within the team. So, measure trust! Seen in this light, partnering is like insurance for your project team. So, step one: review the IPI Partnering Matrix and establish how to incorporate Partnering into your program. Step two, follow up with specific and tools steps –outlined in the IPI Partnering Specifications. By monitoring progress and checking in, and by ensuring fair terms, we are building trust and improving communication. Once that happens, we have established a path toward Figure 2 – The Partnered Project Delivery Framework
successful partnering, and thereby to improved project and program outcomes.
Drivers during Delivery — Drivers during Delivery are the actual steps that your team takes in the partnering process
Stay tuned for our next installment of the IPI Meta-Analysis,
(the green box in Figure 2 above). It turns out that the leading
which will focus on the significance of Partnered Project Delivery
contributor to the success of a partnered project is the use
Framework Categories and how they relate to one another.
of partnering tools. The Partnering tools that successful teams consistently reported using include kick-off and follow-up
If you would like to learn more about the Meta-Analysis, please
workshops; co-creation of mutual goals (in a Charter); project
contact IPI Assistant Director, Dana Paz at (925) 447-9100.
surveys to measure progress; clear and compatible goals; transparent information sharing; and a neutral facilitator to guide the process. The use of partnering tools throughout a project helps keep everyone on track, gauging trust and satisfaction among team members, and giving teams a forum to communicate effectively. Other significant indicators of partnering success are more related to contractual terms and established fairness. Depending on the project delivery methodology, these are not necessarily within the control of the project team members, but
Figure 3 – The Three Steps to Improved Project Outcomes
they are the starting point to ensure that the project is set up for success from its inception. These include gain share—pain share
Source: The IPI Meta Analytic synthesis of partnering literature in the
terms; early involvement of all key participants in the process;
architecture, engineering, and construction industry is authored by
contract language and form of contract; selection of parties with
Sinem Mollaoglu (Korkmaz), PhD. and Anthony Sparkling, MCM, of the
partnering experience; shared equity; and selection of parties
Michigan State University Construction Management Program
with technical expertise. 18
Partnering Magazine May/June 2015
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“The orientation training teaches you the structured way to take collaboration to the next level to improve project cost, schedule, safety and quality. You also learn how collaboration reduces risk for your teams by developing consensus and a shared project vision. I cannot wait to implement this with my teams!” — Peter Aarons, Aviation Director, West Division, HNTB “We believe that it is essential that Airport staff, builders, designers and other consultants understand the IPI Structured Collaborative Partnering Model to ensure we deliver exceptional project outcomes on every project! This highly valuable training teaches the concepts of Structured Collaborative Partnering—the process & implementation, the return on investment, and how trust is the essential critical path to success on any project.” — Geoff Neumayr, Deputy Director SFO International Airport
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