I was delighted to be invited by Aconex to share at the recent 2017 Construction Technology Summit as part of the panel on ‘Best practices in successfully introducing digital construction technologies’.
For a very well attended event, it was exciting to see the changes in play across the industry, and the desire from owners to contractors to consultants to software vendors around tackling the lagging digital technology adoption challenges of the sector. There’s no question that productivity gains are still hampered by a reluctance to change, as shown by McKinsey in one of their 2016 articles.
With these findings in mind, it’s no wonder I most connected with speakers who shared on how to best digitise the construction industry. While there is a lot of talk at the moment about AI, and how to leverage it to drive better outcomes on projects, as Andrew Newsome from Boston Consulting Group pointed out, without (digital) data, AI doesn’t work. The sector’s future is in better capturing digital and structured data, in part so it can leverage these other technologies.
Of course, that’s easier said than done, so here are three takeaways I particularly valued from Andrew Newsome, Kate Nelson (Head of Business Technology & Innovation, LendLease) and Ken Panitz (Principal Methods & Lean, EIC Activities).
1. Projects are good at avoiding new initiatives
Andrew talked about the fact that project and construction managers have numerous challenges on their to-do lists and are focused on delivering their projects. As he suggested, when you consider that a construction project may have a duration of as little as two years, it’s not long enough to generate a strong return on investment from new initiatives…certainly not on its own.
If you want a project to support new initiatives, Andrew’s advice was to:
- Ensure the initiative is a priority at the highest levels of the company and project org charts
- Allocate dedicated project resources to support and drive the new initiative
I touched on this in my panel session and discussion with Emma Shipley (CFO, Roberts Pizzarotti). In my experience, the best project outcomes for a new initiative come when there is engagement at both a corporate and project level – in contributing resources and guiding the direction of an initiative. It is critical to truly understand what’s going to make a difference at the coal face for a project when you’re setting up an initiative. At the other end, you need to ensure corporate goals are incorporated so value is generated not only at the project level, but also the corporate level.
2. The right people are essential to supporting change
Having the right people involved in a project can make the difference between success and failure. Kate Nelson summed it up when she spoke of the triple threat, below. These are definitely attributes I seek in the people I try to involve in digital initiatives on projects. As Kate put it, the triple threat is:
- Understanding how to use technology: this is self explanatory and essential to being able to evangelise and influence others to adopt new tech.
- Understanding engineering: if you’ve walked in the shoes of various key roles on engineering projects, and truly understand their pain and drivers, and can communicate and relate technology as it matters to them on a practical level, you’ve won half the battle. This is much more powerful than just taking someone a piece of tech and showing them how to use it. The value is in helping users know how to apply that tech to benefit their everyday work.
- Being an influencer (change agent) with strong IQ and EQ: we often refer to this as winning the hearts and minds of people on a project, meeting people where they are at and inspiring them to buy into the vision of the new initiative you’re introducing. That’s when they are more likely to champion it and become change agents themselves.
3. You need a strategy to speed up digitisation
Ken is championing digital disruption in construction through his role at EIC Activities. He made the point that there is no longer a single application that rules. The future is around flexibility, best of breed applications and the need for easy integration. He went as far as to say he won’t consider a solution without it first having an API. His message to software companies was, “build your API first…don’t have it as an item on your roadmap that’s coming soon”. Ken also shared how, at CIMIC, they are fostering innovation through a strategy of lowering requirements to trying new ideas; embracing that failure is okay; and limiting the investment and time to quickly show potential or fail fast. This is certainly a different approach to traditional big business cases and bureaucratic processes by being much more agile.
Our team’s recent work on the APLNG project with CPB Contractors underscores the importance of these considerations. The project team ultimately transitioned from having 600 paper dockets per day to 95% of those being electronically submitted. We worked with project leaders to address hurdles, like getting individuals to use a mobile device for project processes, getting subcontractors to let go of paper dockets, and getting engineers, supervisors and leading hands to adopt an unfamiliar digital process. We took learnings from a trial roll-out to streamline training and team engagement and it has ultimately been a huge success. Among a range of factors, I really saw the importance of:
- Strong engagement from project leaders
- Responsible champions with success linked to their KPIs
- Consistent and ongoing communication with staff and subcontractors through the change.
In closing, there are learnings already available in the Australian construction sector when it comes to introducing new tech. For project leaders, seek software partners who have been there before and don’t be afraid to ask them for their learnings as well as successes to give you a running start.