Five case studies applying soft systems methodology to knowledge management

Construction projects are faced with a challenge that must not be underestimated. These projects are increasingly becoming highly competitive, more complex, and difficult to manage. They become problems that are difficult to solve using traditional approaches. Soft Systems Methodology (SSM) is a systems approach that is used for analysis and problem solving in such complex and messy situations. SSM uses “systems thinking” in a cycle of action research, learning and reflection to help understand the various perceptions that exist in the minds of the different people involved in the situation. This paper examines the benefits of applying SSM to problems of knowledge management in construction project management, especially those situations that are challenging to understand and difficult to act upon. It includes five case studies of its use in dealing with the confusing situations that incorporate human, organizational and technical aspects.

Re-valuing construction through project delivery

In moving from lowest cost adversarial based traditional procurement towards value driven methodologies the challenges range from re-engineering the process, to metrics and team alignment. This paper describes research into methodologies which encourage alignment of project partners towards achieving mutually beneficial goals. The research identifies nine variables which influence the achievement of successful projects delivering value. Results from case studies illustrate that not all parties can achieve value for themselves which directs attention to the balance between deliverables and the interests of team members. Re- valuing construction demands refocusing towards the delivery of operational assets and their place in the value system whilst recognising the need to manage the delivery process and the team to align the value to the parties. The objective of the project was to develop tools and recommendations for reform of project delivery in the building and construction industry to transform business-as-usual performance into exceptional performance. Benefits flow not only to the construction industry, but to the community as a whole because a more sophisticated industry can deliver more effective use of assets, financing, operating and maintenance of facilities to suit the community’s needs. This research was funded by the Australian Cooperative Research Centre for Construction Innovation.

Factors affecting ICT diffusion in Australian construction organisations – the storey from the big end

Our survey findings confirm that 11 factors influence information and communication technology (ICT) diffusion for experienced ICT users. We offer a model that consists of 4 groups of categories: management (M); individual (I); technology (T); and environment (E). Our conclusions reinforce the importance of a coherent ICT diffusion strategy and supportive environment. This requires substantial investment in training and collegial learning support mechanisms. This paper provides an overview of the work undertaken and an analysis of its implications for the construction industry and we provide useful insights that a wide range of construction industry professionals and contractors may find useful.

Can governments use their construction contracts to improve training outcomes?

This paper explores the likely efficacy of government agencies using their contracting relationships with private firms to affect training outcomes in the construction industry. Specifically, it reports on the results of a study of two training policies of theWestern Australian government. Empirical data is drawn from the government’s Tender Registration System between 1997 and 2006. The main finding of the quantitative analysis is that in the absence of strong industry commitment to policy objectives, the contracting approach is likely to result in high levels of avoidance activity and generate very few benefits. The results of a qualitative investigation also support these findings.

The relationship between construction firm strategies and innovation outcomes

Survey results provide a preliminary assessment of the relative contribution of a range of tactical business strategies to innovation performance by firms in the Australian construction industry. Over 1,300 firms were surveyed in 2004, resulting in a response rate of 29%. Respondents were classified as high, medium or low innovators according to an innovation index based on the novelty and impact of their innovations and their adoption of listed technological and organizational advances. The relative significance of 23 business strategies concerning (1) employees, (2) marketing, (3) technology, (4) knowledge and (5) relationships was examined by determining the extent to which they distinguished high innovators from low innovators. The individual business strategies that most strongly distinguished high innovators were (1) ‘investing in R&D’, (2) ‘participating in partnering and alliances on projects’, (3) ‘ensuring project learnings are transferred into continuous business processes’, (4) ‘monitoring international best practice’, and (5) ‘recruiting new graduates’. Of the five types of strategies assessed, marketing strategies were the least significant in supporting innovation. The results provide practical guidance to managers in project-based industries wishing to improve their innovation performance.

Innovative Practices in the Australian Built Environment Sector : An Information Resource for Industry

PROJECT BRIEF Information provided by the Built Environment Industry Innovation Council as background to this project includes the following information on construction and innovation within the industry. • The construction industry contributes around $67 billion to GDP and employs around 970,000 and generates exports of nearly $150 million. • The industry has one of the lowest innovation rates of any industry in Australia, ranking third last across all Australian industries in terms of its proportion of business expenditure on innovation, and second last in terms of the proportion of income generated from innovation (ABS, 2006). • Key innovation challenges include addressing energy and water use efficiency, and housing costs in preparing for the implementation of the Carbon Pollution Reduction Scheme. The sector will need to build its capability and capacity to deliver the technical and operational expertise required.The broader Built Environment Innovation Project aims to address the following two objectives: 1. Identify current innovative practice across the Built Environment industry. 2. Develop a knowledge exchange strategy for this information to be disseminated to all industry stakeholders. Industry practice issues are critical to the built environment industry’s ability to innovate, and the BRITE project from the CRC for Construction Innovation has previously undertaken work to identify the key factors that drive innovation. Part 1 of the current project aims to extend this work by conducting a stocktake of current and emerging innovative practices within the built environment industry. Part 2 of the project addresses the second of these objectives, that is, to recommend a knowledge exchange strategy for promoting the wider uptake of innovative practices that makes the information identified in Part 1 of the study (on emerging innovative practices) accessible to Australian built environment industry stakeholders. The project brief was for the strategy to include a mechanism to enable this information resource to be updated as new initiatives/practices are developed. A better understanding of the built environment industry’s own knowledge infrastructure also has the potential to enhance innovation outcomes for the industry. This project will develop a coordinated knowledge exchange strategy, informed by the best available information on current innovation practices within the industry and suggest directions for gaining a better understanding of: the industry contexts that lead to innovative practices; the industry (including enterprise and individual) drivers for innovation; and appropriate knowledge exchange pathways for delivering future industry innovation. A deliverable of Part 2 will be a recommendation for a knowledge exchange strategy to accelerate adoption of innovative practices in the built environment industry, including resource implications and how such a recommendation could be taken forward as an ongoing resource.

Adopting building information modeling (BIM) as collaboration platform in the design industry

This paper discusses the preliminary findings of an ongoing research project aimed at developing a technological, operational and strategic analysis of adopting BIM in AEC/FM (Architecture-Engineering-Construction/Facility Management) industry as a collaboration tool. Outcomes of the project will provide specifications and guidelines as well as establish industry standards for implementing BIM in practice. This research primarily focuses on BIM model servers as a collaboration platform, and hence the guidelines are aimed at enhancing collaboration capabilities. This paper reports on the findings from: (1) a critical review of latest BIM literature and commercial applications, and (2) workshops with focus groups on changing work-practice, role of technology, current perception and expectations of BIM. Layout for case studies being undertaken is presented. These findings provide a base to develop comprehensive software specifications and national guidelines for BIM with particular emphasis on BIM model servers as collaboration platforms.

Building information modelling : an issue of adoption and change management

Building Information Modelling (BIM) is an IT enabled technology that allows storage, management, sharing, access, update and use of all the data relevant to a project through out the project life-cycle in the form of a data repository. BIM enables improved inter-disciplinary collaboration across distributed teams, intelligent documentation and information retrieval, greater consistency in building data, better conflict detection and enhanced facilities management. While the technology itself may not be new, and similar approaches have been in use in some other sectors like Aircraft and Automobile industry for well over a decade now, the AEC/FM (Architecture, Engineering and Construction/ Facilities Management) industry is still to catch up with them in its ability to exploit the benefits of the IT revolution. Though the potential benefits of the technology in terms of knowledge sharing, project management, project co-ordination and collaboration are near to obvious, the adoption rate has been rather lethargic, inspite of some well directed efforts and availability of supporting commercial tools. Since the technology itself has been well tested over the years in some other domains the plausible causes must be rooted well beyond the explanation of the ‘Bell Curve of innovation adoption’. This paper discusses the preliminary findings of an ongoing research project funded by the Cooperative Research Centre for Construction Innovation (CRC-CI) which aims to identify these gaps and come up with specifications and guidelines to enable greater adoption of the BIM approach in practice. A detailed literature review is conducted that looks at some of the similar research reported in the recent years. A desktop audit of some of the existing commercial tools that support BIM application has been conducted to identify the technological issues and concerns, and a workshop was organized with industry partners and various players in the AEC industry for needs analysis, expectations and feedback on the possible deterrents and inhibitions surrounding the BIM adoption.

Construction virtual prototyping : a survey of use

Purpose –The introduction of Building Information Model tools over the last 20 years is resulting in radical changes in the Architectural, Engineering and Construction industry. One of these changes concerns the use of Virtual Prototyping - an advanced technology integrating BIM with realistic graphical simulations. Construction Virtual Prototyping (CVP) has now been developed and implemented on ten real construction projects in Hong Kong in the past three years. This paper reports on a survey aimed at establishing the effects of adopting this new technology and obtaining recommendations for future development. Design/methodology/approach – A questionnaire survey was conducted in 2007 of 28 key participants involved in four major Hong Kong construction projects – these projects being chosen because the CVP approach was used in more than one stage in each project. In addition, several interviews were conducted with the project manager, planning manager and project engineer of an individual project. Findings –All the respondents and interviewees gave a positive response to the CVP approach, with the most useful software functions considered to be those relating to visualisation and communication. The CVP approach was thought to improve the collaboration efficiency of the main contractor and sub-contractors by approximately 30 percent, and with a concomitant 30 to 50 percent reduction in meeting time. The most important benefits of CPV in the construction planning stage are the improved accuracy of process planning and shorter planning times, while improved fieldwork instruction and reducing rework occur in the construction implementation stage. Although project teams are hesitant to attribute the use of CVP directly to any specific time savings, it was also acknowledged that the workload of project planners is decreased. Suggestions for further development of the approach include incorporation of automatic scheduling and advanced assembly study. Originality/value –Whilst the research, development and implementation of CVP is relatively new in the construction industry, it is clear from the applications and feedback to date that the approach provides considerable added value to the organisation and management of construction projects.

Benefits of collaborative ICT adoption for building project management

Purpose : Effective flow of data and communication at every stage of a construction project is essential for achieving required coordination and collaboration between the project participants, leading to successful management of the projects. In present scenario, when project participants are geographically separated, adoption of information communication technology (ICT) enables such effective communication. Thus, the purpose of this paper is to focus on ICT adoption for building project management.---------- Design/methodology/approach : It is difficult to quantitatively evaluate the benefits of ICT adoption in the multiple enterprise scenario of building project management. It requires qualitative analysis based on the perceptions of the construction professionals. The paper utilizes interpretive structural modeling (ISM) technique to assess importance of perceived benefits and their driving power and dependence on other benefits.---------- Findings : The developed ISM model shows that all the categories of benefits, i.e. benefits related to projects, team management, technology, and organization are inter-related and cannot be achieved in isolation. But, organization- and technology-related benefits have high-driving power and these are “strategic benefits” for the project team organizations. Thus, organizations are required to give more attention on strategically increasing these benefits from application of ICT. Originality/value – This analysis provides a road map to managers or project management organizations to decide that if they are planning ICT adoption for achieving certain benefits then which are the other driving benefits that should be achieved prior to that and also which are the dependent benefits that would be achieved by default.

Analysing strategic alliances in building construction

Building construction is a highly competitive and risky business. This competitiveness is compounded where conflicting objectives amongst contracting and subcontracting firms sets the stage for an adversarial and potentially destructive approach. There is a need for change in the construction industry—not only to a more cooperative approach to build mutual trust, respect and good faith—but also from a confrontationist and adversarial attitude to a harmonious relationship. It is necessary to change the culture to create a win-win situation. “Strategic Alliances” is one such concept. A strategic alliance is a cooperative arrangement between two or more organisations that forms part of their overall strategies, and contributes to achieving their major goals and objectives. This paper begins with an overview of the Australian building construction industry, then reviews the literature and describes an analysis framework comprising six attributes of strategic alliances—trust, commitment, interdependence, cooperation, communication, and joint problem solving. Given the trend towards greater emphasis on broader contracting firm performance criteria, indicators are proposed as a component of the tender evaluation process for public works.

Steering towards pinnacle of success : the NEC tenets in Australian construction contracting

Contractual relationships have become increasingly strained in recent years in the construction industry result in the use of the judicial system for the settlement of contractual disagreements. Why is this so? Evidence from anecdotes suggest that the lack of capacity amongst owners and contractors to carry out a contract using a good practice approach during the construction of a project contribute to the occurrence of conflicts, losses, deficient contractual relationships and poor performance of the construction work. Recognizing that current forms of contract in use today perpetuate a legacy of construction problems, we are conducting explanatory research to examine whether the widely publicized benefits of New Engineering Contract (NEC) could be realized in the Australian construction industry. This paper outlines a research agenda that will help shed light on how contract forms are able to be used as a mechanism to ensure construction projects are delivered successfully whilst also meeting the goals of multiple stakeholders. Understanding the Critical Success Factors (CSFs), commonly used construction contracts and the NEC system can help us address some of these issues. However, there are gaps in the validation of the benefits of NEC and its link with project success. We identify some of these gaps and propose a methodology by which to gain insights into this phenomenon. Keywords: Project Success, Construction Contracting, New Engineering Contract (NEC)

Construction performance and organisational culture

The purpose of this paper is to summarize the outcomes of a detailed research study carried out as part of the fulfilment of a doctoral programme which examined the relationships between, and impacts of organisational culture on construction performance within a Hong Kong context. The research used a mixed methodology approach consisting of an organisational culture survey using an adapted validated and reliable measurement instrument (the Denison Organisational Culture Survey), mini-case studies in four Hong Kong construction companies and correlated the derived culture scores against performance scores measured by the Hong Kong Housing Department Performance Assessment Scoring System (PASS). The significance of the research was to advance knowledge of the importance of organisational culture strength as a performance driver in the construction industry and the further proof of the culture performance links using a set of measures of the latter which were not financially-based. The findings of the research make a contribution to theory by further validating the work by Denison (1990) and others, not only in that a successful link between organisational culture and performance was demonstrated, but it also identifies particular cultural factors in organisations that appear to be significantly responsible for achieving successful outcomes and reveals opportunities for further research into the organisational culture of construction companies Keywords: organisational culture, construction performance, business success.

An assessment of construction labour productivity in Malaysia

The construction industry is one of major strategic importance. Its level of productivity has a significant effect on national economic growth. The analysis of published census/biannual surveys of construction by the Department of Statistics of Malaysia shows that Malaysia managed to achieve construction labour productivity growth between 1996 and 2005 despite increases in cost per employee. The decrease in unit labour costs is attributed to the value added improvement per worker through the increase in capital intensity. The marginal decline in capital productivity is due to the gestation period and the overcapacity of the industry. The civil engineering sub-sector recorded the highest labour productivity and is the most labour competitive in terms of unit labour cost and added value per labour cost. The residential sub-sectors recorded greatest change in the productivity indicators between 1996 and 2005.

Structural equation model of construction contract dispute potential

This paper presents the results of a structural equation model (SEM) for describing and quantifying the fundamental factors that affect contract disputes between owners and contractors in the construction industry. Through this example, the potential impact of SEM analysis in construction engineering and management research is illustrated. The purpose of the specific model developed in this research is to explain how and why contract related construction problems occur. This study builds upon earlier work, which developed a disputes potential index, and the likelihood of construction disputes was modeled using logistic regression. In this earlier study, questionnaires were completed on 159 construction projects, which measured both qualitative and quantitative aspects of contract disputes, management ability, financial planning, risk allocation, and project scope definition for both owners and contractors. The SEM approach offers several advantages over the previously employed logistic regression methodology. The final set of structural equations provides insight into the interaction of the variables that was not apparent in the original logistic regression modeling methodology.