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Del E. Webb School of Construction

"Leadership Principles Used In the Procurement Process". Professor Bill Badger. Del E. Webb School of Construction. Our Place at ASU. Arizona State University (ASU). 55,000. Ira A. Fulton School of Engineering. 6,700. Del E. Webb School of Construction (DEWSC). 500.

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Del E. Webb School of Construction

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  1. "Leadership Principles Used In the Procurement Process" Professor Bill Badger Del E. Webb School of Construction

  2. Our Place at ASU Arizona State University(ASU) 55,000 Ira A. Fulton School of Engineering 6,700 Del E. Webb School of Construction (DEWSC) 500 Industry Advisory Council (IAC) 75 Professionals Alliance for Construction Excellence (ACE) 166 Companies

  3. Enrollment 500 in 2004 192

  4. Mr. Del E. Webb • Known for Sun City Residential Developments • Co-owner of New York Yankee's baseball team • 1962 Time Magazine Man of the Year • Invested his wealth in the Webb Foundation in 1976

  5. Compared to our Peers • # 1-5 in total Construction Research • # 1 in NSF Research Grants • # 1 in Scholarships ($2.4M scholarship endowments) • # 1 in Industry Outreach Activities • # 2 in total Endowments • # 12in Enrollment • # 1 in Teaching in Fulton School 29 October 2001 issue of ENR

  6. Construction Opportunities “We will build more things in the next thirty years than we have in the last two thousand.” Dr. W. W. Badger

  7. Construction Curriculum 100% 100% 80% 80% 60% 60% CE&M 40% 40% 20% 20% 0% 0% 0% 20% 40% 60% 80% 100% 10% of $$ DEWSC 90% of $$ Procurement/Construction Project Cost Level of Influence Design / Engineering Planning Project Duration Dr. W. W. Badger

  8. Our Graduates • Architects become Employees • Engineers become Employees • Constructors or Construction Managers become Employers Educate in the Business of Construction

  9. Construction ModelKeep it Simple • “Get Work” • “Do Work” • “Keep Score” In the American System, there are no Quality Surveyors

  10. Owner Desires • Lower Costs • Quicker Schedules • Better Operational Features • Less Risk • Less hassle

  11. Architect/Engineer Desires • Quality Project • Signature Project • Minimize Change • Less hassle

  12. Contractor’s Desires • More Quality Work • Better Subcontractors • A Profit • Less hassle

  13. Subcontractor's Desires • Prompt Pay • Good General Contractors • Working Change Order Process • Less hassle

  14. Individual Desires • Job Satisfaction • Job Stability • Less hassle

  15. My Less Hassle • Sensitivity to people • Win-Win relationships • Build trust • Use the Golden Rule • Be Ethical • Practice Partnering • Apply TQM • Communicate

  16. The Changing Environment You are • hiredfor your technical skills • promotedfor yourleadership & management skills • - -firedfor your lack of people skills

  17. Where does Leadership Come from? Influences in developing people skills in the education process 31% 17% 12% 5% Home University Books & K to 12 Education Study & TV Mom Self Improvement Dad Teachers Professors Continuing Education Siblings Peers Peers 7% 21% 7% Part Time Clubs & Professional Church Teams Jobs Career Growth Family Team Mates Peers Coaches Peers Pastors Club Officer Bosses Employees Peers Bosses Customers Good 50% Bad 50%

  18. Our Graduates have Special Skill Sets • Technical Core • Time and Cost Control • Contract Administration • Computer Expertise • Business Management • People Skills • Leadership

  19. Innovative Education Communications Teamwork Information Technology • Of the 25 Construction Courses • 25 % require oral presentations • 50 % writtenassignments • 44 % work students in teams • 32 % use cooperativelearning • 44 % require computerusage

  20. Internships A Real World Perspective Field Internship in a construction company for the summer for all DEWSC students! Mandatory

  21. Where Leadership Begins We should continue to produce industry leaders !

  22. LeaderShape at DEWSC The LeaderShape Institute is a 6 day interactive energizing and unique experience that builds leadership skills • 2002 University of Illinois • 4 students attended • Kitchell Endowment • 2003 University of Illinois • 6 students • 2 facility attended • Professor Fiori • Professor Knutson • 2004 or 2005 • Session hosted by DEWSC • 60-70 students • Camp Tontozona in Arizona Dr. Kraig Knutson

  23. YourMolecule • Spend your time working your molecule • Relationships & Time You

  24. YourAcademic Molecule • Student’s Academic Molecule • Universities have six Levels of Molecules Family Professor 1 Church Friends Professor 2 You Professor 3 Professor 5 Professor 4

  25. YourProjectMolecule Boss Subcontractors Government Officials Bonding/Insurance Agent Owner You Engineer Architect Employees

  26. PRAM MODELDr. ROSS RECK’S Win-Win Plan Maintain 4 1 Win-Win Relationships 3 2 Win-Win Agreements

  27. Wisdom • Leadership is a force for change • Management is a force for continuity and consistency

  28. Leadership - Management Balance Leadership Management Doing the right things Doing things right Ref: IBM Leadership Skills for Executives

  29. Key Management Functions Controlling Organizing Planning POC Ref FMI

  30. Key Leadership Functions • Setting Directions • Alignment • Motivation SAM Ref FMI

  31. POC Versus SAM Ref FMI

  32. Reason for Switching Contractors • 15 % Better Product • 15 % Better Cost • 70 % People Nicer to Deal With

  33. When Will a Project Lose MoneyJim Lammie • When project has a new project manager • You are dealing with a new client • Dealing with new technology • Secondary reasonSplit office/divided responsibility

  34. Art Stout Intel’s Construction Head It is relatively easy to train a manager, but extremely difficult to educate a leader ! Consequently we have ten times as many managers than leaders ! What we really need is leadership….

  35. Research Thrust Areas $3.5M • Alternate Project Delivery Systems • Performance Based Procurement • Cleanroom Construction • Construction Simulations • Trenchless Engineering • Residential Construction

  36. APDM Research Dr. Jim Ernzen • Alternate Project Delivery Methods Task Force • Wrote new legislation allowing public agencies to use: • Design/Build, • Construction Manager @ Risk, and • Job Order Contracting • Currently $4B in public APDM work underway

  37. Information Based Delivery Dr. Dean Kashiwagi • $4M of research over 8 years • Using information technology to minimize decision making and risk • Tested 400 times on over $250M of construction • Implemented by FAA, US Coast Guard, and being entertained by Harvard University • Minimizing 80% of owner’s overhead • Increase performance to 96% On-Time, On-Budget, with no contractor change orders

  38. PBSRG History • PBSRG was founded in 1994 by Dean Kashiwagi. • $4.2M of research funding in last 9 years. • Over 350 cycles of scientific method testing to optimize delivery of construction. • Results have shown a dramatic increase in performance and quality (over 96%).

  39. PBSRG Research • Performance Information Procurement System • Information Measurement Theory • Best-value procurement systems • Supply chain management • Artificial intelligent decision-making models • Risk management • Improving efficiency

  40. Specifications Eliminate minimum standards / specifications High High Low Low Contractor 1 Contractor 2 Performance Performance Risk Risk Contractor 2 Contractor 3 Contractor 1 Contractor 3 Contractor 4 Contractor 4 High High Low Low

  41. Specifications Owners “What we are not getting” Contractors “The highest possible value you are getting” High High Maximum Performance Performance Minimum Low Low

  42. Construction Industry Structure High IIII. Negotiated-Bid II.Performance-Based Best Value (Performance and price) Higher Quality No Management & Inspection Contractor Liability / Risk Performance I. Low-Bid IV. Unstable Market Construction is a commodity Low Price Minimal Quality Management & Inspection User Liability / Risk Low High Competition

  43. Conclusions • Education your Graduates in the Business of Construction to Prepare them to Own the Construction Company • The Construction Industry works better in the No Hassle Mode

  44. Conclusions • Part Time Jobs and Internships are Critical in the Education in the “Business of Construction” ! • LeaderShare and Leadership Training is essential in Educating the Construction Industry Leaders of the Future !

  45. Conclusions • The win-win Plan, Relationships, Agreements, and the Maintain of those Relationships are key concepts! • Balancing the Leadership and Management Principles with Emphasis on Leadership is Paramount to Success !

  46. Conclusion • Research in CM is critical to improving our Industry ! • In Construction Procurement, when we increase Leadership Principles and reduce Management Control Principles, we receive increased Performance!

  47. 2005CIB W92 Symposium

  48. Dates:January 10-13 Location: Las Vegas, Nevada (USA)

  49. My Vision of the Challenge Thank you ! Bill Badger Director and Professor Del E. Webb School of Construction 480-965-3615 480-965-1769 FAX bill.badger@asu.edu http://construction.asu.edu

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