Partnering Magazine May/June 2015

The Water IndustryWhy Partnering is so Important to this Industry Right Now.

page 4Trust is the

Critical Path

INSIDE:page 8

It’s all about Attitude

Issue 3May/June 2015

Delivering dynamic projects through trust, collaboration and partnership.

www.henselphelps.com

Wor l d-C l as s Inno v a t o r s . L andmar k Bu i l d ings . Insp i r ing Pe r f o r mance .

www.partneringinstitute.org May/June 2015 Partnering Magazine 3

INTERNATIONAL PARTNERING INSTITUTEIPI 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 ADVISORSLarry Anderson, Anderson PartneringPierre Bigras, PG&E Roddy Boggus, Parsons BrinckerhoffPat Crosby, The Crosby GroupPete Davos, DeSilva Gates ConstructionLarry Eisenberg, Ovus Partners 360Michael Ghilotti, Ghilotti Bros, Inc.Richard Grabinski, Flatiron West, Inc.Randy Iwasaki, Contra Costa Trans. AuthorityJeanne Kuttel, CA Dept. of Water ResourcesMark Leja, Caltrans (Retired)John Martin, San Francisco International AirportPete Matheson, Granite Construction Geoff Neumayr, San Francisco International AirportJim Pappas, Hensel Phelps Construction Co.Zigmund Rubel, AditazzIvar Satero, San Francisco International AirportStuart Seiden, County of FresnoThomas Taylor, Webcor BuildersDavid Thorman, CA Div. of the State Architect, Ret.John Thorsson, NCC Construction Sverige ABLen Vetrone, Skanska USA Building

EXECUTIVE DIRECTORRob Reaugh, MDR

ASSISTANT DIRECTORDana Paz

FOUNDER & CEOSue Dyer, MBA, MIPI, MDRF

EDITORIAL OFFICE: SUBSCRIPTIONS/INFORMATIONInternational Partnering Institute 291 McLeod StreetLivermore, CA 94559Phone: (925) 447-9100 Email: [email protected]

DESIGN/CREATIVEMichelle Vejby Email: [email protected]

COPYRIGHTPartnering 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.

IN THIS ISSUE

4Executive Director’s ReportIt takes structure, commitment and trust to form successful, collaborative teams.

6Committee SpotlightThe IPI Awards Committee works to recognize those organizations and project teams that are changing the culture of construction.

18Best PracticesIPI Meta-Analysis Part II: The benefits of partnering and its impact on project performance outcomes.

CONTENTS

FeaturesMay/June 2015 The Water Issue

Facilitator’s CornerTips to help develop and

maintain a collaborative

mindset on your projects.

8

Research RoundupWonder what makes

some teams so successful,

and others not so much?

One reason is effective

communication.

14

Why the Water Industry Needs Partnering NowHear from the experts about

why water projects need a new

approach.

10

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.

Delivering dynamic projects through trust, collaboration and partnership.

www.henselphelps.com

Wor l d-C l as s Inno v a t o r s . L andmar k Bu i l d ings . Insp i r ing Pe r f o r mance .

4 Partnering Magazine May/June 2015 www.partneringinstitute.org

The industry is hungry to

learn more about how

to consistently form and

establish collaborative teams.

At IPI we pride ourselves on knowing

a little bit about that process. We have

gathered best practices and lessons

learned from owners, contractors,

designers, CM’s, facilitators, and

subcontractors who have worked on

thousands of projects and have learned

what it takes. And what it takes is

structure, commitment, and trust.

The first, structure, is relatively

easy to adopt. IPI Committees have

already developed the IPI Matrix and

Partnering Specifications for you. The

structure is set up to give you enough

partnering to ENSURE a successful

project outcome, regardless of the

project size or complexity.

The second, commitment, can be

a little more challenging. This takes

executives who are willing to show up

and demonstrate just how important

Partnering is to the outcome of the

project. It also takes leadership, but not

EXECUTIVE DIRECTOR’S

REPORT

Trust is the Critical Path

So what should we do about it?

We need to make trust important to our

project teams by measuring it from the

get-go. The most direct way to do this is

add it to our project surveys (Scorecards),

and measure trust monthly. An emerging

tool for promoting trust-building is

through a Lean process called “reliable

promises.” In “reliable promises,” team

members co-create planning milestones

and measure just how frequently

individual team members and trades are

delivering on what they say they are going

to do. This is a way to turn consistent

follow-through into a desirable trait,

thereby promoting trust.

Regardless of how your team develops

it, keep in mind that collaboration is

still not the norm in the industry. You

will need to promote trust early, and

maintain the partnering structure

and commitment to support it. And, to

borrow from 2012 IPI Awards Ceremony

Keynote Speaker Dave Niese, “Take the

first opportunity on your project where

you could exploit the other side and

instead be trustworthy; it will pay off in

the long run.”

Rob Reaugh, MDR

IPI Executive Director

...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.

the old school “command and control,”

Mike Ditka style of leadership—

instead it takes a more open (trusting)

approach, where we are teaching our

Project Managers to make decisions at

the field level and mentoring them to

think holistically about project issues

rather than waiting around to punish

them long after they have made the

wrong decision.

The third, trust, is often the most

difficult of all to achieve and yet is the

most essential product of a collaborative

project team. According to a 1993

study by the Construction Industry

Institute, the level of trust on a project

and the cost of the project are directly

correlated. They looked at 262 projects

and learned that 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.

IPI’s 2015 Meta-Analysis by Mollaoglu

(Korkmaz) and Sparkling (highlighted

p. 16) vetted this finding, stating that

mutual trust within the team is the

single best indicator of the project team’s

performance!

usa.skanska.com

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

2013 NAIOP Community Enhancement Day, Seattle, WA

Gold Line Bridge, Arcadia, CA


IPI Awards Committee

The Strategic Partnering Achievement Award goes to

organizations that have either worked internally between

departments, or externally between multiple organizations to

improve collaboration. This Award has gone to the CA Division

of the State Architect, (2010), Caltrans Construction Partnering

Steering Committee (in 2011), the Utah Transit Authority

Frontlines 2015 Program (2013), and NCC Construction Sweden

and Telge Fastigheter (2014).

In order to effectively change the culture of

Construction, the IPI Board of Advisors launched a

program to recognize companies, project teams, and

individuals who are outstanding in their practice of

Partnering. Since its inception in 2010, Larry Eisenberg (Ovus

Partners 360) and David Thorman (CA Division of the State

Architect, Ret.) have Co-Chaired the IPI Awards Committee

and served as lead judges for the Partnered Projects of the

Year. In six short years, the Awards Program has become the

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

the Collaborative Partnering Model and for affecting positive

change so construction projects are more collaborative and

less adversarial.

COMMITTEESPOTLIGHT

IPI PARTNERING CHAMPIONSIPI’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 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

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

importantly, we have learned over the past three years that

$1 spent on Partnering Facilitation equals $81 of savings to

the project team! Partnering is an outstanding investment and

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

Eisenberg and our IPI Awards judges and hope that you will

contact us at [email protected] or call (925) 447-9100

to get involved!

For career opportunities and/or more information, please visit

pbwor ld .com

Dream It!We’ve Got You Covered

The challenges facing

today’s airports are endless,

yet so are the opportunities.

Parsons Brinckerhoff

offers a full range of

services to partner with

airport owners to

envision the future …

and then create it.

VISIT THE IPI AWARDS PAGE FOR MORE INFORMATION:

WWW.PARTNERINGINTITUTE.ORG/AWARDS


Partnering 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.

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.

FACILITATOR’S CORNER

IT’S ALL ABOUT ATTITUDETips to help develop and maintain

a collaborative mindset


Check yourself firstAt the beginning of a project, or

partnering process, check yourself to

make sure you have the right mindset

and intentions. It’s not just the attitude

of the “other guy” that is important,

that’s out of your control. We all want

our own organization to be successful

in the delivery of the project, but

we need to make sure we approach

with a collaborative mindset first. An

understanding that success on the

project will be a result of cooperation

and collaboration, not force and

coercion. Allow yourself to go into each

new project with a mindset towards

building long-term, productive, healthy

relationships.

Be ready for tensionWhen issues come up related to cost,

schedule, scope, quality, or deliverables,

expectations can vary wildly. This is

because a contract exists that acts as

a type of line in the sand. It defines a

project (mostly) and the compensation

associated with it. Since no contract

is perfect, there will always be room

for potential disputes, and the tension

that arises from the interpretation. Be

ready for this tension. Be honest, and

talk openly if you feel that tension exists

within the team. Pretending it doesn’t

exist will not make it go away; it only

makes the tension more palpable and

delays an inevitable dispute.

Actively seek to clarify expectationsMany disputes in our business arise out

of unclarified expectations, and with

the expectation that the contract will

offer clarity if we all read it the same

way. Unfortunately, we don’t all read

things the same way. There are too

many opportunities to misinterpret a

requirement or not state a requirement

clearly. Simply asking for clarification

on expectations can

go a long way to

understanding each

other’s position. If

the expectations are

aligned, great; if not,

then focus on achieving

the objective and intent,

rather than attempting to

prove it was a bad spec.

Focus forwardMistakes and imperfections happen.

This is natural in our business, and

any business. Instead of spending

precious time and energy on pointing

out someone’s mistakes and finding

fault, focus forward to find solutions,

as quickly as possible. Don’t dwell

on imperfections and mistakes.

Nobody wants to admit mistakes or

imperfections when they know it will

result in blame, liability, or entitlement.

These may be the facts of the case,

but moving past these to focus on

identifying and implementing solutions

will keep the team focused on achieving

goals and successful project outcomes.

Great solutions can often make

mistakes negligible.

You are all on the same team nowOnce a project has been awarded,

you are all on the same team. Project

success and failure is tied to the entire

team and you depend on each other.

We all sink or swim together. We don’t

have an enemy, we have an objective.

If a project fails, we will all feel the

pain. If a project is successful, we can

all take pride in its outcome and in the

efforts we have made. Focus on the

success of your teammates and what

you can do to help them be successful.

They will then be in a better position

to help you be successful. Look out for

your teammates.

Show respect for othersThis is easier said than done because

it must occur in so many places and

on so many levels. Show respect in

meetings, on the phone, in emails, in

person, and in any interactions with

anybody involved in the project. This is

also true when working with business

processes, levels of authority, or contract

requirements that don’t necessarily

make sense or we agree with. We may

also be challenged to show respect when

there are so many other personalities

involved in a project. We can’t possibly

get along well with everyone, but we

need to show respect for everyone’s role

and their responsibilities, regardless of

if we like them personally or not.

These simple guidelines can help make

sure we maintain the right approach to

the project and the other team members.

The right attitude coupled with the tools

of partnering can reduce any mountain

to a mole-hill and enable a culture of

collaboration that can’t be defeated.

Eric Sanderson, MBA,

MIPI President of Red

Rocks Advisors, LLC.

Based in Arizona, Eric

is an Award-winning

Partnering Faciliatator

who specializes in

Wastewater, Horizontal and Vertical

Construction. RedRocksAdvisors.com


WATER INDUSTRY

WA

TE

R WHY THE WATER INDUSTRY NEEDS PARTNERING NOWTHE 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

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.


If an owner is resisting adopting Partnering, host a Collaborative Partnering Orientation Training. There

they will learn the ROI of Partnering.

...the cost to replace the nation’s crumbling drinking water infrastructure will be more than $1 Trillion over the next 25 years.

EBMUD Power Generation Station Renewable Energy Project

Resources Control Boards, the U.S. Army Corps of Engineers and others. This takes a highly collaborative effort and an ability to build consensus with a diverse team.

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 states. And on these projects, DWR’s traditional project delivery has changed. They are no longer simply recoating pipelines and building traditional seismic bridges. Instead they are interfacing with the environmental regulatory agencies and the

For this article, we spoke with two experts in water and wastewater construction, Jeanne Kuttel, IPI Board of Advisors Member and Chief ofthe Division of Engineering for the California Department of Water Resources (DWR) and Ed McCormick, current President of the Water Envronment 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 assist teams in the delivery of outstanding projects. By focusing on the experience in California, we can identify lessons learned that can be shared with the industry, worldwide.

The Changing Role of the California Department of Water ResourcesIn 2014, Jeanne Kuttel, Chief of the Division of Engineering for DWR, and her staff have spearheaded an effort to implement Structured Collaborative Partnering on all large projects. She believes that Partnering is an essential philosophy for improving outcomes, 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


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 holistic and better accomodate local species like Delta smelt, sand hill cranes, and many others. As we look forward, she states, “our designs may have to cease relying on concrete, rock, steel, and imported fill, and instead use natural products, which will shorten the shelf-life, but will allow for a better interaction with the environment over time.”

Third, DWR staff’s actual role on projects is diversifying. “With the recently passed water bond, much of the funding will be passing through DWR to local municipalities. In these cases, DWR staff will be serving in more of a project management role, rather than leading the construction (our more traditional role). This new role requires both engineering expertise and softer skills and Partnering will help us with that.”

Partnering for the IndustryEd McCormick is the former Manager of Wastewater Engineering for East Bay Municipal Utilitiy District (EBMUD) and currently the President of the Water Environment Federation (WEF), the largest water quality association in the world, with over 35,000 members from over 100 countries. He agrees that Partnering should be adopted more broadly in the water and wastewater sector.

According to the U.S. Department of Commerce, the funding level for 2014 construction in water and wastewater was $22 billion and water supply was $13.8 billion.4 These numbers will have to increase dramatically in order properly serve the growing U.S. population, particularly with the crumbling water delivery and

wastewater collection systems. In order to deliver on the increased demand, coupled with ever-more-stringent regulations including nutrient removal, local and state agencies will have to learn how to operate in a collaborative way to be successful, including receiving grant or low interest loan federal and state funds.

McCormick shared that during his tenure at EBMUD, “our average project, for the decade preceding moving to partnering all projects over $2M, was completed at roughly 15% behind the construction contract schedule, due to unforeseen conditions, weather, and contractor or owner-caused delays. In contrast, many of our partnered projects finished slightly ahead of schedule, due to the high performance teams and teamwork created by owner, engineer, contractor and major subs via partnering.” And we all know that “time is money.” This prompted Ed to eventually develop a specification requiring structured Collaborative Partnering on projects valued at $5 million and greater, which continues today. McCormick indicated that “Partnering is successful because all project stakeholders come together before construction starts to proactivey identify potential project obstacles and ways to minimize their impact on project quality, cost and schedule.”

Over his twenty year tenure at EBMUD, this translated to many millions of dollars saved and vastly improved project cultures. One of the best examples of a project rescued by a partnering effort was the 2013 IPI Partnered Project of the Year—Sapphire Level winning EBMUD Power Generation Station Renewable Energy Project, where they were able to accomodate a sixth month local electrical power utility delay and still deliver the project on budget!


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 benefi t 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.fl atironcorp.com

Interstate 880/State Route 92 Interchange Reconstruction

Hayward, CA

2012 IPI Partnered Project of the Year, Diamond Level

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!

ConclusionsIn 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 third-party 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 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.pdf4 US Census Bureau - http://www.census.gov/const/C30/release.pdf (accessed 5/9/15)


RESEARCH ROUNDUP

Think of your last high-functioning team—what

made them so successful? I’m sure you will recall

that the team was highly interactive, meetings felt

meaningful, and progress toward a common purpose

was consistently made.

According to a recent research study, high-functioning teams

communicate in predictable ways across industries. What is

important is that how the team communicates appears to be

more important than what the team is saying on a day to day

basis. More importantly, researchers have identified basic

interventions that enable teams to shift their behavior so they

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,

Director of the Human Performing Dynamics Laboratory at

MIT, in “The New Science of Building Great Teams,” from the

April 2012 Harvard Business Review.

The MethodologyIn an effort to determine how “productive” teams

communicate, the MIT research team embedded electronic

sensors into employee badges that allowed them to analyze

communication behaviors including: tone of voice, body

language, whom they talked to and how much, how frequently

they interrupted people, how meetings were conducted, and

much more. The idea is that the “intervention” would be

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,

customer service teams, backroom operations teams and call

centers were all studied. Over several years, a number of teams

were studied and patterns began to emerge.

Key FindingsWhat emerged is that the success of a team, whether it is a call

center, a pharmaceutical company, or a construction team, can

be revealed in its data signature. The MIT researchers isolated

three Communication Pattern Factors (factors) that made

up 40-60% of a team’s predictive success—Energy (10-20%),

Engagement (30%), and Exploration (10%).

• Energy is defined as the number and frequency of

interactions that a team has.

• Engagement is defined as how much the team connects

directly. In other words if Boss A talks to B and C, how

much do B and C talk with each other without Boss A

present. Also, when they meet, do A, B, and C speak

equally, or does A carry the bulk of the airtime. Teams

that have equal airtime have higher “engagement.”

• Exploration is defined as going outside the core group

for additional information and interaction. This is

particularly important for creative teams.

It turns out that these three factors are more predictive of the team’s success than other seemingly critical factors like intelligence, personality, skill and the substance of the conversations, combined!

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

Stop YourCommunication Break Down


speak, conversations are short and to the point.

2. Team members face each other when they talk and the

gestures they make are energetic.

3. Team members connect directly – they don’t just connect

through the team leader.

4. The team has sidebar conversations (without the team

leader present).

5. Members periodically break to explore ideas outside of

the team and then return with information.1

There were three more findings from the Pentland study

that absolutely apply to construction: First, high-performing

teams tend to have dozens of face-to-face exchanges per

hour and they tend to be short and sweet. Second, all types

of communication are not created equal—face-to-face is the

most productive and for small groups, videoconferencing or

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.

Applying These Lessons to Your Next ProjectIf 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 company-

wide 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.

Partnering is an outstanding forum for bringing in project

stakeholders who can help your team think creatively and

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

also able to identify which sections of the project team are not

communicating with the rest of the team (which will require

an effort to break down the silo). Collaborative Partnering

introduces a Scorecard or Project Survey, which allows the

team to rate how it is communicating and following up on its

mutually created goals. We have yet to develop a graphical

network representation of how the team is communicating,

but it is on the horizon.

Perhaps the most exciting piece of this research is how

predictable high-functioning teams are and how Collaborative

Partnering and co-location helps teams reach those goals.

When we understand the path for developing consistently

collaborative teams, we can set our teams up for success and

intervene in a meaningful way when they are headed down

the wrong path.

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!

We believe

in strong partnerships

WEBCOR.COM

_____________________________________________________

1 Page 4 https://hbr.org/2012/04/the-new-science-of-building-great-teams.


BEST PRACTICES

IPI META-ANALYSIS PART IIThe benefits of partnering and its impact on project performance outcomes.

As 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 Meta-

Analysis 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

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

project and organizational outcomes.

The Highest Ranked Benefits of PartneringIn its synthesis of 174 studies on

construction partnering, the Meta-

Analysis found that the highest ranked

benefit of partnering at the project

level is improved project quality, as

shown in the graphic at right. In second

place is meeting schedule targets and

in third place is meeting cost targets.

...teams that use

partnering on their

projects report

common beneficial

outcomes...improved

project quality, meeting

schedule targets and

meeting cost targets.

Highway 101 Overlay, Ghilotti Bros., Inc.

Figure 1 – The Benefits of Partnering


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

are consistently achieved throughout a series of projects, an

organization can begin to measure the program level benefits

of Partnering.

The most frequently identified organizational benefits

reported are improved relationships among project participants,

established trust, improved communications, increased profit

margins, and an enhanced reputation in the industry. All of these

benefits in turn lead to continuous organizational improvement,

a better corporate culture, and the opportunity to increasingly

access additional projects. If you are an owner agency, this

means you have more resources for more projects, and if

you’re a contractor, designer, or CM, this means you will have

opportunities to win more bids/projects.

Beyond meeting deadlines, a significant number of studies ranked cost savings and faster project delivery as the most valued benefits of partnering

So, having established the demonstrated benefits of partnering

individual projects, and the long-range benefits of a Collaborative

Partnering Program, let’s talk about how you can maximize these

benefits.

How to Guarantee Success in PartneringPerhaps you have tried partnering on a few projects, but have

had mixed results. If so, you’ve probably wondered what

accounted for the variance. When conducting the Meta-Analysis,

the researchers asked themselves the same thing, and found

which particular elements within the partnering process have a

direct correlation to project outcomes.


Drivers during Delivery — Drivers during Delivery are the

actual steps that your team takes in the partnering process

(the green box in Figure 2 above). It turns out that the leading

contributor to the success of a partnered project is the use

of partnering tools. The Partnering tools that successful teams

consistently reported using include kick-off and follow-up

workshops; co-creation of mutual goals (in a Charter); project

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

they are the starting point to ensure that the project is set up for

success from its inception. These include gain share—pain share

terms; early involvement of all key participants in the process;

contract language and form of contract; selection of parties with

partnering experience; shared equity; and selection of parties

with technical expertise.

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

successful partnering,

and thereby to improved

project and program

outcomes.

Stay tuned for our next installment of the IPI Meta-Analysis,

which will focus on the significance of Partnered Project Delivery

Framework Categories and how they relate to one another.

If you would like to learn more about the Meta-Analysis, please

contact IPI Assistant Director, Dana Paz at (925) 447-9100.

Figure 2 – The Partnered Project Delivery Framework

Figure 3 – The Three Steps to Improved Project Outcomes

Source: The IPI Meta Analytic synthesis of partnering literature in the

architecture, engineering, and construction industry is authored by

Sinem Mollaoglu (Korkmaz), PhD. and Anthony Sparkling, MCM, of the

Michigan State University Construction Management Program


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Partnering Magazine May/June 2015