Strategic Excellence in the Architecture, Engineering, and Construction Industries

Strategic Excellence in the Architecture, Engineering, and Construction Industries

by Gerhard Plenert, Joshua Plenert
Released March 2018
Publisher(s): Productivity Press
ISBN: 9781351045490

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Book description

Strategic Excellence in the Architecture, Engineering, and Construction Industries is a process of applied strategic thinking designed to develop a strategy empowered with the agility to adapt to changing circumstances and to drive a high performing culture of ideal behaviors. It is infused with the insight and the thought leadership of the Shingo Model and the scientific thinking of Lean Six Sigma. The book goes beyond the classic approach to strategic planning by driving effective execution of the strategy through the embedment of collective ownership and organization-wide alignment into the entire process.

Significant advances in strategic planning and management have been developed over decades of learning and practice. Many of those advances, however, have been developed in the manufacturing industry and have not been translated into terms easily applicable to the A/E/C (Architectural / Engineering / Construction) industry. This book incorporates current best practices from cutting edge organizations around the globe and presents those in a way that they can easily be applied to A/E/C organizations through an efficient and effective process.

Table of contents

  1. Cover
  2. Half Title
  3. Title Page
  4. Copyright Page
  5. Dedication
  6. Contents
  7. Introduction
  8. Authors
  9. Chapter 1 Strategic Excellence
    1. 1.1 Introduction
    2. 1.2 Phases
      1. 1.2.1 Analyze
      2. 1.2.2 Define
      3. 1.2.3 Execute
      4. 1.2.4 Refine
    3. 1.3 Summary
  10. PHASE I Analyze: Diving Deep into Current Conditions
    1. Chapter 2 Introduction to Analysis
      1. 2.1 Introduction
      2. 2.2 Why Analyze?
        1. 2.2.1 Problems = Opportunities
        2. 2.2.2 One Size Does Not Fit All
        3. 2.2.3 Reinvent the Wheel
      3. 2.3 Analysis Approach
      4. 2.4 Summary
    2. Chapter 3 Visioning and Scenario Planning
      1. 3.1 Introduction
      2. 3.2 Perspectives
      3. 3.3 Visioning and Scenario Planning Procedure
        1. 3.3.1 Step 1 – Leadership Orientation
        2. 3.3.2 Step 2 – Orientation Briefing
        3. 3.3.3 Step 3 – Visioning Assignment
        4. 3.3.4 Step 4 – Visioning Workshop
        5. 3.3.5 Step 5 – Post-workshop Wrap-Up
      4. 3.4 Summary
    3. Chapter 4 Internal Analysis
      1. 4.1 Introduction
      2. 4.2 Strategy Analysis
      3. 4.3 Cultural Analysis
      4. 4.4 Operations Analysis
        1. 4.4.1 Production Efficiency
        2. 4.4.2 Quality
        3. 4.4.3 Cost
        4. 4.4.4 Value Stream
        5. 4.4.5 Financial Performance
        6. 4.4.6 Commercial Performance
        7. 4.4.7 Continuous Improvement
      5. 4.5 Differentiation Analysis
      6. 4.6 Employee Development Analysis
      7. 4.7 Summary
    4. Chapter 5 External Analysis
      1. 5.1 Introduction
      2. 5.2 Client Relationship Analysis
        1. 5.2.1 Identify the Client
        2. 5.2.2 Understand the Client
      3. 5.3 Supply Chain Analysis
        1. 5.3.1 Relationship Analysis
        2. 5.3.2 Supply Chain Analysis
      4. 5.4 SWOT Analysis
      5. 5.5 PESTLE Analysis
      6. 5.6 Gap Analysis
      7. 5.7 Independent External Assessments
      8. 5.8 Summary
  11. PHASE II Define: Establishing the Best Path to the Ideal Future State
    1. Chapter 6 Introduction to Define
      1. 6.1 Introduction
      2. 6.2 Why Define?
        1. 6.2.1 Establish Clear Direction
        2. 6.2.2 Develop Strategic Thinking
        3. 6.2.3 Enhance Buy-In
      3. 6.3 Approach to Define
      4. 6.4 Summary
    2. Chapter 7 Shingo Guiding Principles
      1. 7.1 Introduction
      2. 7.2 Guiding Principles
        1. 7.2.1 Respect Every Individual
        2. 7.2.2 Lead with Humility
        3. 7.2.3 Seek Perfection
        4. 7.2.4 Focus on Process
        5. 7.2.5 Embrace Scientific Thinking
        6. 7.2.6 Flow and Pull Value
        7. 7.2.7 Assure Quality at the Source
        8. 7.2.8 Think Systematically
        9. 7.2.9 Create Constancy of Purpose
        10. 7.2.10 Create Value for the Customer
      3. 7.3 Summary
    3. Chapter 8 Establishing a Direction
      1. 8.1 Introduction
      2. 8.2 Core Competencies
      3. 8.3 Vision
      4. 8.4 Mission
      5. 8.5 Defining the Customer
      6. 8.6 Strategic Perspectives
        1. 8.6.1 Financial Perspective
        2. 8.6.2 Operational Perspective
        3. 8.6.3 Employee-Based Perspective
        4. 8.6.4 Customer-Based Perspective
      7. 8.7 Priorities
      8. 8.8 Summary
    4. Chapter 9 Objectives
      1. 9.1 Introduction
      2. 9.2 Common Mistakes
        1. 9.2.1 Lack of Strategic Alignment
        2. 9.2.2 Focusing Too Much on Symptoms
        3. 9.2.3 Ignoring the Client
        4. 9.2.4 Forgetting What You’re Great At
      3. 9.3 Characteristics of a Good Objective
        1. 9.3.1 Aligned with Strategic Mission
        2. 9.3.2 Clear and Specific
        3. 9.3.3 Inclusive
        4. 9.3.4 Customer Centric
        5. 9.3.5 Simple
        6. 9.3.6 Measurable
        7. 9.3.7 Realistic
        8. 9.3.8 Nonconflicting
        9. 9.3.9 Challenging
      4. 9.4 Developing Objectives
      5. 9.5 Summary
    5. Chapter 10 Metrics
      1. 10.1 Introduction
      2. 10.2 Understanding the Purpose of Metrics
      3. 10.3 KPIs vs. KBIs
      4. 10.4 Examples of KPIs
        1. 10.4.1 Backlog Volume
        2. 10.4.2 Break-Even Point
        3. 10.4.3 Utilization Rate
        4. 10.4.4 Client Satisfaction
        5. 10.4.5 Net Promoter Score
        6. 10.4.6 Client Lifetime Value
        7. 10.4.7 Actual Revenue vs. Projected Revenue
        8. 10.4.8 Actual Cost vs. Projected Cost
        9. 10.4.9 Profit
        10. 10.4.10 Cost
        11. 10.4.11 Client Acquisition Cost
        12. 10.4.12 Project Acquisition Cost
        13. 10.4.13 Number of Proposals Written
        14. 10.4.14 Employee Satisfaction
        15. 10.4.15 Employee Engagement
        16. 10.4.16 Employee Turnover Rate
        17. 10.4.17 Revenue per Billable Employee
        18. 10.4.18 Project Overrun
        19. 10.4.19 Overhead
        20. 10.4.20 Number of New Clients
        21. 10.4.21 Number of New Clients by Referral
        22. 10.4.22 Hit Rate
      5. 10.5 Examples of KBIs
        1. 10.5.1 Suggestions
        2. 10.5.2 Collaboration
        3. 10.5.3 Recognition
        4. 10.5.4 Onboarding
        5. 10.5.5 Challenging Current Processes
        6. 10.5.6 Positive Approach to Failures
        7. 10.5.7 Problem-Solving Training
        8. 10.5.8 Systems Approach
        9. 10.5.9 Visual Operations Management
        10. 10.5.10 Effective Scheduling
        11. 10.5.11 Bottlenecks
        12. 10.5.12 Firefighting
        13. 10.5.13 Customer Focus
      6. 10.6 Common Mistakes and Apprehensions
        1. 10.6.1 Creating Too Much Work
        2. 10.6.2 Lack of Buy-In
        3. 10.6.3 Gaming the System
        4. 10.6.4 Using Measures to Punish
      7. 10.7 Characteristics of a Good Metric
        1. 10.7.1 Feasible
        2. 10.7.2 Controllable
        3. 10.7.3 Focused on the Future
        4. 10.7.4 Clear
        5. 10.7.5 Specific
        6. 10.7.6 Logical
      8. 10.8 How to Select Appropriate Metrics
        1. 10.8.1 Select the Metrics Team
        2. 10.8.2 Focus on Strategic Objectives
        3. 10.8.3 List Potential Metrics
        4. 10.8.4 Reduce the Lists
        5. 10.8.5 Fully Define Metrics
      9. 10.9 Summary
    6. Chapter 11 Action Items and Goals
      1. 11.1 Introduction
      2. 11.2 Characteristics of Effective Goals
        1. 11.2.1 Specific
        2. 11.2.2 Measurable
        3. 11.2.3 Applicable
        4. 11.2.4 Results-Oriented
        5. 11.2.5 Time-Bound
      3. 11.3 Action Plan
      4. 11.4 Prioritizing Action Items and Goals
      5. 11.5 Summary
    7. Chapter 12 Strategy Map
      1. 12.1 Introduction
      2. 12.2 Benefits of the Strategy Map
      3. 12.3 Details of the Strategy Map
      4. 12.4 Using the Strategy Map to Build Buy-In
      5. 12.5 Summary
  12. PHASE III Execute: Engaging and Aligning the Organization
    1. Chapter 13 Introduction to Execute
      1. 13.1 Introduction
      2. 13.2 Why Execute?
      3. 13.3 Approach to Execute
      4. 13.4 Summary
    2. Chapter 14 Cascading
      1. 14.1 Introduction
      2. 14.2 Cascading vs. Fragmenting
      3. 14.3 Synergy of Cascading
      4. 14.4 Cascading Process
      5. 14.5 Summary
    3. Chapter 15 Governance
      1. 15.1 Introduction
      2. 15.2 Risks of Bad Governance
      3. 15.3 Characteristics of Good Governance
      4. 15.4 Performance Reviews
      5. 15.5 Summary
    4. Chapter 16 Reporting
      1. 16.1 Introduction
      2. 16.2 Balanced Scorecard
      3. 16.3 Operational Dashboard
      4. 16.4 Summary
    5. Chapter 17 Engagement
      1. 17.1 Introduction
      2. 17.2 Organizational Purpose
      3. 17.3 Individual Value
      4. 17.4 Progress
      5. 17.5 A Cultural Transformation Story
      6. 17.6 Summary
    6. Chapter 18 Onboarding
      1. 18.1 Introduction
      2. 18.2 Employee Onboarding
      3. 18.3 Executive Onboarding
      4. 18.4 Client Onboarding
      5. 18.5 Summary
    7. Chapter 19 Communication
      1. 19.1 Introduction
      2. 19.2 Purpose of Communication
      3. 19.3 Characteristics of Effective Business Communication
      4. 19.4 Summary
  13. PHASE IV Refine: Stimulating Continuous Improvement through Cultural Vitality
    1. Chapter 20 Introduction to Refine
      1. 20.1 Introduction
      2. 20.2 Why Refine?
      3. 20.3 Approach to Refine
      4. 20.4 Summary
    2. Chapter 21 Problem Solving
      1. 21.1 Introduction
      2. 21.2 DMAIC
        1. 21.2.1 Define
        2. 21.2.2 Measure
        3. 21.2.3 Analyze
        4. 21.2.4 Improve
        5. 21.2.5 Control
      3. 21.3 A3
      4. 21.4 Kaizen/Lean/Rapid Improvement Event
        1. 21.4.1 Orientation
        2. 21.4.2 Understand the Problem
        3. 21.4.3 Develop Future State Design
        4. 21.4.4 Make the Improvements
        5. 21.4.5 Report and Celebrate
      5. 21.5 Summary
    3. Chapter 22 Lean, Six Sigma and TPS
      1. 22.1 Introduction
      2. 22.2 Lean
        1. 22.2.1 5S
        2. 22.2.2 Bottleneck Analysis
        3. 22.2.3 Visual Process Control
        4. 22.2.4 PDCA
        5. 22.2.5 Six Big Losses
        6. 22.2.6 Standardized Work
      3. 22.3 Six Sigma
        1. 22.3.1 Five Whys
        2. 22.3.2 Ishikawa Diagram
        3. 22.3.3 Project Charter
        4. 22.3.4 VOC and Kano Analysis
      4. 22.4 TPS
      5. 22.5 Summary
    4. Chapter 23 Shingo
      1. 23.1 Introduction
      2. 23.2 The Shingo Institute
      3. 23.3 The Shingo Model
      4. 23.4 Success Stories
      5. 23.5 Summary
    5. Chapter 24 Breakthrough Thinking
      1. 24.1 Introduction
      2. 24.2 Seven Principles
        1. 24.2.1 The Uniqueness Principle
        2. 24.2.2 The Purpose Principle
        3. 24.2.3 The Solution-After-Next Principle
        4. 24.2.4 The Systems Principle
        5. 24.2.5 The Limited Information Collection Principle
        6. 24.2.6 The People Design Principle
        7. 24.2.7 The Betterment Timeline Principle
      3. 24.3 Summary
    6. Chapter 25 Leadership and Strategic Excellence
      1. 25.1 Introduction
      2. 25.2 Characteristics of an Effective Leader
        1. 25.2.1 Empowers Others
        2. 25.2.2 Always Learning
        3. 25.2.3 Maintains a Clear Vision
        4. 25.2.4 Lead from the Front
        5. 25.2.5 Results
      3. 25.3 Summary
    7. Chapter 26 Conclusion
      1. 26.1 Strategic Excellence
      2. 26.2 Final Thoughts
  14. References
  15. Index

Product information

  • Title: Strategic Excellence in the Architecture, Engineering, and Construction Industries
  • Author(s): Gerhard Plenert, Joshua Plenert
  • Release date: March 2018
  • Publisher(s): Productivity Press
  • ISBN: 9781351045490