Todd Weyandt and Carol Dunn January 2021 LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION Key Takeaways from Conversations with 60+ Construction Leaders LEADING THROUGH DISRUPTION AND DIGITAL TRA.
LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION: Key Takeaways from Conversations with 60+ Construction Leaders Todd Weyandt and Carol Dunn January 2021 TABLE OF CONTENTS INTRODUCTION CHAPTER Bridging the Leadership Gap Leadership Defined True Leadership Implications Results of Good Leadership CHAPTER Bridging the Culture Gap A Healthy Corporate Culture Soft Skills vs Hard Skills Know the Person Behind the Employee The Reset A Stubborn Industry The Importance of Focusing on Culture Trust and Respect from the Field Innovation and Creative Problem Solving Qualities for Success Women in ConTech Construction Resilience CHAPTER Bridging the Disruption Gap How Disruption Affects Culture and Leadership The Importance of an Established Culture Pre-disruption Rolling Out Positive Change When Disruptions Come Adapting to Disruption Improving Productivity The Specialty Trades as an Ecosystem Digital Transformation Innovation and Technology LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com 10 13 13 14 16 17 17 18 19 20 21 22 22 23 23 24 25 26 27 TABLE OF CONTENTS CHAPTER Bridging the Digital Transformation Gap Innovate to Collaborate A Marathon, Not a Sprint Getting People to Adopt Tech Book Learning vs Field Experience 28 28 28 29 30 Taking Advantage of Digital Transformation Stepping up to Serve Harnessing the Potential of Artificial Intelligence Revolutionizing the Way We Build Things Digital Construction 31 31 32 32 Networking and Connecting MEP Force 2020 Virtual Industrialized Construction Generative Design Agent of Change Propelling the Mechanical Industry Forward Key Trends in the MEP Industry The Leap of Faith to Adopt Prefab 33 34 35 36 37 37 39 Why You Should Care Data is the New Currency in Business 39 Shifting Through ConTech Effectively Intentionality Moving Toward Standardization Collaboration and BIM 41 42 42 SUMMARY 45 ABOUT THE AUTHORS 47 LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com INTRODUCTION For the past year, I have been on a mission to embrace and share the innovations transforming the construction industry I must admit when I started on my voyage, I had no idea the insights, wisdom, and relationships that I would gain along the way I have the honor of hosting Applied Software’s Bridging the Gap Podcast, winner of Construction Junkie’s Best Construction Podcast of 2020 which was voted by the listeners Over the course of recording 65 episodes, I have talked with 70+ of the greatest minds in the construction and MEP industry covering the full spectrum of voices The podcast seeks to spotlight the advancements in technology, distinctive perspectives, the soft skills required for successful transformation, and stories about the problemsolving mindset that continues to shape this great industry and propel it forward No matter the topic or guest, I started to notice common themes popping up in each episode The construction industry is in two separate worlds at the same time On the one hand, you have an industry that has learned incredible skills to build some amazing projects by doing things a certain way while having to adapt to real world problems and designs All too often, this hand gets bogged down in the now and just trying to get the work done Thinking about new innovations sounds like a fantasy land However, on the other hand, you have a massive influx of new construction technology and innovations happening in the industry The industry is indeed filled with innovators who look around and see the enormous potential the industry holds and working tirelessly to make it become a reality The truth is the construction industry is at the start of their industrial revolution and are primped for a dramatic and exciting renovation But with this comes disruption affecting the way we all work There are those who allow themselves to be carried along by the wave of changes taking place There are others who want to take an active part in changing things for the better In my opinion, during times of disruption good leadership is all the more important People will follow a compelling vision and are looking for leaders to pave the way, no matter where they are in the industry This eBook relies on the insights learned from some of the brightest minds around the industry to answer a fundamental question…what is leadership in times of disruption and digital transformation? Keep innovating, Todd Weyandt LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com CHAPTER BRIDGING THE LEADERSHIP GAP “The most effective leadership trait is trust It is a function of competence and character.” Retired Lt General Robert Caslen, President, University of South Carolina - EPISODE 43 LEADERSHIP DEFINED When you feel good about yourself, you produce your best work Successful leaders in management make their people feel good about themselves in order to elicit their best performance Good leaders are responsible for building a positive environment in which employees can feel good and try new things This may seem too emotional for the construction industry, but it is one of the key ingredients to successfully navigating the ongoing disruption Do you sometimes get the feeling that character isn’t valued as highly as it used to be? Character – through words and actions alike – is something people need to be aware of in all situations Character is more than just ethics and morals (both critically important of course) It includes grit, tenacity, resilience, and perseverance in the face of adversity A person’s character determines the way they deal with life’s challenges People in the construction industry are familiar with the gritty aspect of character They find ways to survive and thrive despite whatever adversity comes their way In fact, it is what they best Rather than being stumbling blocks that defeat us, challenges are opportunities for greatness When you work toward excellence, you stretch yourself outside your comfort zone You’ll also make mistakes The best thing your organization can is allow you to make mistakes, because they are opportunities to learn and improve In lower performing companies, people what they’re told but nothing more, because no one wants to be criticized for taking initiative and then making mistakes LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com CHAPTER | BRIDGING THE LEADERSHIP GAP Learning from mistakes and discomfort builds character and makes you more competent You can grow, stretch and become better at your job This is a building block for leadership Companies can equip leadership by helping their employees build character The highest performing companies don’t encourage their employees to be average They encourage them to perform to their highest potential In a culture of excellence, good leaders create an environment where employees can grow They reward employees for embracing the values around good character Good leaders have humility, and they give and gain trust In a highly functioning company, employees need to trust their leaders and respect their character Competence is important, but it can’t carry someone very far if they have character issues The following communication strategies are signs of good leadership: • Consistently communicate employees’ unique contributions to the company’s goals and values This gives them a sense of purpose, motivation, fulfillment, and reassures them that they are making a contribution that stabilizes the company • Spend more time building cooperation and less time exerting control Recognize employees for their intrinsic value, not just as cogs in the company’s works No matter where you rank in a company, you are still subordinate to someone Sometimes leaders need to get candid advice from their subordinates Then the subordinates need to respect the decisions the leader makes • Provide structure and routines to alleviate the fear of the unknown Structure helps employees focus on work and can include regular online or onsite meetings for employee input, questions and answers, and connecting with each other • Model openness and give others the courage to ask for help and take responsibility for mistakes By sharing information and being transparent, leaders can build trust and create a bond Sharing successes, failures, goals, and changes that potentially have negative implications allows team members to voice their concerns and reduces unsettling gossip Lt General Bob Caslen, Jr, President of the University of South Carolina, spoke with Bridging the Gap (BTG) about building a culture of excellence and performing at the upper level of your potential He stressed that good leaders develop values that set parameters on what the team/organization stands for Once they are defined, they can be understood, communicated and demonstrated These values need to be rewarded whenever possible LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com CHAPTER | BRIDGING THE LEADERSHIP GAP Many leaders try to avoid mistakes at every turn, but there is a difference between risk and being reckless Mistakes are opportunities to learn It is important to have a culture that allows for mistakes in order to try new things and grow When they get out of their comfort zone (and yours), employees can try new things and learn It’s the talent of the manager to create an environment that encourages learning and individual growth And managers need their own well-rounded assessment A good leader can listen with humility – taking the information they receive and reflecting on it For a leader, introspection is important When a manager is seeking opinions, they should expect advice with candor Then they should plan to go forth and execute based on that advice Caslen pointed out that the most important leadership trait is trust Genuine trust springs from a combination of character and competence When you fail in character you fail in leadership A leader’s lack of character has an extensive ripple effect throughout the organization Character in a construction leadership role involves more than a person’s moral integrity Jobs are getting more and more challenging these days It takes grit and perseverance to deal with life’s challenges Caslen related a story about the climate of an organization that is not focused on learning In an organization like this, employees are afraid to fail because of public humiliation by their manager In such an organization, people will only what’s expected of them, rather than suffer the embarrassment of trying something new and failing They will only perform as well as their leader, thus not living up to their talent level This is all too often the case in construction It is safter to stay with the status quo than risk humiliation by trying something new After all, what happens if it does not go exactly to plan? Yet, if we stay in the status quo it is impossible to grow A leader will end up being a member of three teams: the immediate work team, the group of other leaders in the company, plus a representative of the company’s direction True Leadership Implications When you have good people aligned around a clear and specific goal, they should be given the responsibility to achieve that goal A significant component of leadership is having trust in your people LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com CHAPTER | BRIDGING THE LEADERSHIP GAP Mistakes will happen, but they should be considered an investment in those people and the company as a whole getting better at what they When employees are all on the same page, their efforts become cumulative, not competitive Construction companies with a flat, or horizontal, structure are utilizing the optimal way to speed up construction processes The flat organizational structure eliminates most middle management positions and results in very little hierarchy People all along the process chain know what the organization as a whole is doing, and they know their part in it The information that flows from the office to the field enables people all along that path to make decisions based on that workflow At the opposite end of the spectrum, a hierarchical setup results in each department’s information being developed in a silo without the sharing and knowledge of what other departments are doing This can leave departments “flying blind” on a job In a hierarchical organization, some people want to feel they’re more important – their decisions are more critical – than someone else’s With a flat organizational style, people closest to the action make key decisions, and everyone else along the production chain does all they can to remove the obstacles so the work can get done expediently The ultimate benefit is speed, and the ultimate goal becomes accurate and actionable information Information needs to be the focus Correct information creates a seamless workflow on the job Pushing correct information through an organization speeds up processes Any task that doesn’t make that happen is waste There are steps companies can take to make it easier to be more horizontal in their processes: Don’t punish people for mistakes that are unrelated to life safety As long as it’s not the same person making the same mistake over and over, it’s best to remember that to err is human, and those errors can be avenues of learning Use mistakes as an opportunity for the entire organization to grow and improve its processes Spotlighting failures is not an easy mindset for some people to adopt However, people need to know they have a voice in an organization, and it’s okay to speak up In the push against employees’ natural tendency to feel more important than each other, everyone’s decisions and input need to be understood as being important LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com CHAPTER | BRIDGING THE LEADERSHIP GAP Cost effective processes are a must-have at this point in our economic picture As safety regulations are increasingly cutting into productivity – as much as 40% – that loss needs to be made up somewhere, or the company cannot survive longterm Optimal performance by flattening a company’s operations is what optimal performance can look like During his BTG appearance, Clay Smith, Smith CEO of eVolve MEP, reminded about the need for information to flow quickly across an organization A leader is teaching people all along the chain what they need to and how that connects to the overarching vision The people closest to the action need to be the ones to make the decisions wherever possible “It is important to train everyone in the organization so they understand what is trying to be accomplished If you that, information flows quickly, and you have good people That is a recipe for optimal performance.” Clay Smith, CEO, eVolve MEP - EPISODE 41 Smith called mistakes “an investment in the overall growth of the company.” Contrary to the way the construction industry has typically handled errors in its long and illustrious history, Smith encouraged leaders to embrace the mindset of “it is ok to fail” by getting to the problem, not the individual The bottom line is for the organization to improve, rather than letting anger flow This requires time to analyze projects with a sober and objective mindset Focus on what worked well and what needs to be improved for next time If things did not go well, it is rarely the result of a single person, so stay focused on the bigger picture When big mistakes are made, it is usually the culmination of a series of smaller errors in the organization So, Smith encouraged companies to be reflective and seek to understand where the breakdowns are Then strive to fix them and educate employees about what you are trying to LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION bridgingthegappod.com CHAPTER | BRIDGING THE LEADERSHIP GAP Results of Good Leadership Leaders who have come up through the ranks know there has always been disruption in construction – typewriters, plotters, copy machines, telephones, fax machines, cell phones Disruption is a fact of life that a good leader will embrace instead of resist One of those disruptions we’ve been coping with for about a decade in the construction industry is a skilled labor shortage An effective leader recognizes that the labor disruption can be offset in part by the technology disruption The workers who used to “do it all” are finding they have new demands on their time, and fortunately some of the tasks they used to manually can now be done more efficiently using software tools Rather than perceiving this as a threat, a good leader recognizes it as an opportunity to reach greater heights and explore workers’ abilities Technology doesn’t have be complicated When investigating the tools available – even something as simple as an app to review drawings in the field – it’s key to determine how they fit into your company’s structure As any car mechanic will tell you, if a job seems too hard, you’re probably not using the right tool Accompanying technology are the challenges of learning to use it and dealing with periodic upgrades Some companies try to go part-way with implementation, yet they expect to reap an all the way improvement in their processes Particularly in the case of using Revit for building information modeling (BIM), the result can be frustration Sometimes the technology gets abandoned because of that, when it’s less the fault of the technology and more the fault of impatience and a lack of pre-planning for a successful implementation Most experts advise companies to make a commitment to implementing any technology, whether it’s software, drones, augmented reality, or some other new tech on the horizon There’s going to be a learning curve, so have patience People don’t absorb software simply by being exposed to it The tech-user interface is rarely intuitive in the learning stage So, when technology is new or when there are updates, it’s important for leaders to ensure employees have time to ramp up and get the support and training they need to be successful After investing in technology, champions are needed who will see the implementation through Buy-in from upper management is important, but everyone in the company should be involved and committed to the implementation Collaboration needs to be LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 10 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP of that, the data is priceless Software solutions that can marry those business systems can make a real difference for construction companies And, Brodie observed, the more team members those companies have, resulting in even more complexity, the more critical those software apps are Construction companies are reportedly finding out that going digital isn’t as overwhelming as they first thought For decades, the construction industry has been all about solving problems in a casual work environment They’re not hesitant to have those candid conversations, and when they do, they can continue to innovate in many ways One way companies learn about new technology is through trade conferences The most focused these – dedicated to the mechanical, electrical and plumbing trades – is MEP Force NETWORKING AND CONNECTING “If we want the industry to grow, we need to share the information we know with others.” Travis Voss, Leader of Innovation, Helm Mechanical, Inc EPISODE 47 MEP Force 2020 Virtual BTG podcast guests summarized each day of the MEP Force 2020 conference and described their takeaways During the first day, day a panel of industry experts unpacked the biggest trends and conversations affecting the MEP trades One of the biggest takeaways from the first day was that the vast majority of trade contractors are eager to connect and network Whether it’s an in-person or a virtual event, the trades share a bond of having very little involvement historically in the design of a project, while LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 33 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP also being responsible for making those designs work The other takeaway was about the rise of the subcontractor, which struck a chord with listeners across the globe As project schedules and budgets become tighter, the trades are being called in earlier in the life of a project On day 2, participants learned how to create and continue great conversations with peers MEP contractors are known for their willingness to network with others in their discipline and share their best practices and lessons learned day contributors discussed how to push the In an indepth recap of the final day, momentum of a changing industry forward Construction is a fundamental part of our human world The technology on the horizon needs to focus first on the people in the industry, then focus on adoption There is a need for unity and a need for collaboration that can ultimately answer the question: What’s best for the MEP industry? Trade contractors were urged to move outside their comfort zone One speaker assured, “Every trade contractor can innovate at their company” by understanding the technology and making sure the software tools work together toward the company’s goals Industrialized Construction “We have to embrace a product-led mindset, not a project-centric, cost-schedule, quality of projects mindset We have to look at the long game of products That is how all other industries succeed and optimize.” Amy Marks, Queen of Prefab - EPISODE 42 LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 34 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP Perhaps one of the more engaging and vocal champions of industrialized construction is Amy Marks She shared her perspective and enthusiasm with host Todd Weyandt on the BTG podcast “Rise of the Subcontractor.” The crown jewel of construction has become offsite fabrication and prefabrication (which can happen offsite and more recently onsite) They are part of a revolution that is the only way to get productivity in the construction industry to the point where it should be The industry is moving in this direction, and companies don’t have to be large to participate Industrialized methods are changing the dynamics of construction What’s involved is looking at the entire built process and center it on design: making an ultra-accurate model that can be replicated in the field This process can no longer be considered simply innovation or a set of incremental changes It’s a culture shift The way we build things is changing dramatically, and it’s all about design To this point the trades have not needed to incorporate much data into their work After all, when a company is profitable, there is less incentive to change processes However, the world changes, and contractors are needing to change with it When times get rough, it’s time to check out new and better ways of doing things You can’t live in the past, as many trades contractors have learned by going out of business Historically, most construction projects involve one-off contributions from subcontractors How much better it would be if those projects could benefit from the diverse knowledge base of those subcontractors earlier in the process in a model The project could be built better, faster and more profitably Generative Design As the population on the planet grows, automation will be crucial to designing the buildings that will be needed worldwide in the next 30 years and beyond BTG guest Lilli Smith, Senior Product Manager at Autodesk, shared that computer automation almost certainly will be used to get us there, and generative design is one example Generative design is about a workflow using data and computers to help create a lot of design options faster and comparing them to select a final design more efficiently The computer doesn’t make up designs Smith stressed, “It’s not a magic button.” In order to its work, generative design needs the input of the model geometry and LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 35 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP parameters set by a person Therefore, it will not take the place of the architect; rather, it augments workflows The net effect is freeing up the architect, allowing their creativity and artistic ability to flourish to new heights In the partnership between designers and generative design, you still must think creatively about designing the automated workflow From starting with a pattern to test automated layouts to comparing the options, the human aspect of design remains The computer only augments the human and makes it feasible to study more than you could manually It’s a new dimension, a new element in design Taking advantage of it helps refine design goals after having a conversation to set those goals with a diverse project team Agent of Change Jason Barber, VP – Industry Solutions and Strategy at Manufacton Manufacton, feels that BIM is perhaps the most exciting technology to come along in many years Though it’s not new, having been in use for over 20 years, it still hasn’t been completely adopted even though the BIM process has enormous potential to save time and money on jobs “Can we think of a new way to use technology? That is what being an ‘agent of change’ really means.” Jason Barber, VP of Industry Solutions and Strategy, Manufacton - EPISODE 22 Barber cited other exciting technologies: Mobile apps that may push more innovation out of necessity Laser scanning combined with point cloud imagery Augmented reality for better safety in the industry Prefab, with a boost from BIM, which may be one way to attract people back to construction LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 36 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP Barber suggested that the construction industry needs more agents of change He challenged construction companies to step up and be one of those agents Propelling the Mechanical Industry Forward The project manager (PM) is one worker who is absolutely essential to the success of a company, stated Sean McGuire, with MCAA (Mechanical Contractors Association of America), during a BTG episode McGuire explained that the PM is critical to the company’s profitability and is responsible to see that the project goes well From understanding the workflow to being able to push boundaries in the right direction, PMs are the ones who need to know the right innovations in order for the company to achieve success They can find ideas, honesty and direction by working with peer groups In the mechanical industry, McGuire has discovered that companies are very willing to showing others what it takes to be successful He relates that MCAA member companies will even allow other members to view their entire operations and are willing to explain every aspect of their process It’s that type of candid sharing that has helped make mechanical trade contractors the leaders in technology adoption by the trades That openness to growth and change are propelling the mechanical industry forward Key Trends in the MEP Industry “Prefab is an obvious trend But it is something that naturally evolves The only way it is going to happen is your business needs to take those risks and try new things.” Ian Molloy, Senior MEP Product Line Manager, Autodesk - EPISODE LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 37 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP The future of the MEP industry hinges on the trends of today As those trends mesh together to improve the quality and efficiency of workflows, MEP firms can the basics in a better way Ian Molloy, Autodesk MEP Product Line Manager, explained that by using the right automation, automation workflows can be connected and optimized, resulting in cost savings Following are some of the technology trends that are capturing attention: 3D scanning – 3D scans provide a highly accurate representation of the project and the site it resides on Artificial intelligence – Generative design can assist with design efficiency and expands the horizons of selecting the best design Augmented reality – The difference between virtual reality and augmented reality are described by Michael Zeeveld in his blog article, article “Reality: Virtual or Augmented?” Besides the obvious “cool” factor of this type of technology, we need to consider its purpose and usefulness Zee explains the reasons behind actually investing the time, money and effort for VR in the first place: to promote a project, to win a bid for new work or to superimpose the project model over the real environment BIM and beyond – Moving to Revit isn’t painless Yet thousands of companies have made the switch, taking advantage of the continually improving “smart” features of Revit as well as subcontractor-specific software like eVolve MEP MEP Blockchain – According to an online Forbes article, article there are now blockchain platforms for insurance, taxes, mining interests, loans, research, small business, trading, identity protection, solar power commerce, shipping, corporate bonds, and more No more excuses and “the check’s in the mail” obfuscation Internet of Things – Technology continues to improve for tracking things on the job, whether it’s inventory, equipment or even worker movement for safety purposes Robotics – The repetitive, heavy and dangerous tasks of construction are perfect jobs for robotic equipment LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 38 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP Cloud – Having a central location where project teams can connect and share data is the best way to avoid problems before they get built Offsite construction – The manufacturing principles for prefabricating chunks of a project in a controlled environment are moving into the realm of construction Technology is sweeping through the gates of the MEP industry Eventually all of these trends – and probably things we haven’t thought of yet – will transform the way every MEP contractor works The Leap of Faith to Adopt Prefab When he appeared on BTG BTG, Steve Butler, Autodesk Senior MEP Industry Strategist, gave his insights into emerging technology trends And the largest of those in his estimation is the modular and prefabrication movement “There’s obvious savings of time, money, materials” Butler said “There is a safety aspect to it as well It will ultimately engage the trades a lot earlier in the workflow I think that’s the most exciting one I see around the world today.” Although companies might be overwhelmed by the proliferation of technology, he suggested they just need to “take that leap of faith Those that have benefit hugely.” Butler encourages companies to collaborate as much as they can and not be afraid to fail Butler observed that companies are also starting to embrace Design for Manufacture and Assembly (DfMA DfMA) DfMA finds its stepping stones in automation and offsite fabrication “That’s going to be where most industries will go first,” he said “And then, from that, they’ll start moving into DfMA.” He also posits that in the next three to five years, we’ll see a greater use of generative design Butler believes that all of these innovations are bringing the trades upstream in the project modeling process WHY YOU SHOULD CARE Data is the New Currency of Business What is the tech stack that your company relies on? How does that tech stack compare to other industries? The best way to use technology is leveraging data to LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 39 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP operate your business One place to start is by creating a more automated operating environment and eliminating low value activity, for instance entering the same data in multiple places Not only can the integrity of the data suffer in those situations, the people responsible for doing that are essentially wasting valuable time They should be focused on more value-added activities to serve the company “What kind of insights I need to more effectively run my business? Those are the kinds of questions you need to start asking and answering from the data.” Tom Stemm, CEO, Ryvit - EPISODE 55 The tech trend in construction is lagging in automating data capture and use because the industry has historically been labor-intensive and labor-driven labor-driven About half the cost of construction is still tied to labor, according to BTG guest Tom Stemm, CEO of Ryvit Many people are still comfortable filling out timecards by hand and processing them by hand one by one Data needs to be routed where the right person can access it when they need it, whether it’s the CEO, CFO, accounting, purchasing, or payroll Stemm posits that your company should have a data profile: workflows, costaccounting, data recording A company needs to decide where the data needs to move When we compare construction to manufacturing, we see that manufacturing had to put assembly lines into place and go through an industrial revolution to increase production from its workforce In construction, this is starting to happen, and modularity and materials innovation are the signs LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 40 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP Assembly-based construction and other trends are coming, and the construction industry is primed for taking advantage of them Standardization and establishing consistency in the industry will lead to efficiency The ultimate target should be completing more projects on schedule and within budget Technology can make that goal accessible SHIFTING THROUGH CONTECH EFFECTIVELY Intentionality Do there really need to be so many ways to build a building? BTG guest Frank Schuyer, CEO of Zinaps, posed the question, adding, “People are good at making things complex.” For that reason alone, digital workflows are necessary in today’s business climate A digital workflow can accomplish the same job as an employee, and it’s faster, with fewer errors and lower operational costs Software tools can look up data instantly, they can keep track of a variety of processes and tasks, and they can streamline those processes for optimal productivity Digital workflows allow you to make the best use of your employees’ time When you’re looking to implement a digital workflow, your first step should be to analyze your current workflow Determine what’s working well and what can be improved or conducted in a more disciplined way If you’re going to make a change, you need to be thoughtful and committed to doing so Intentionality counts As you investigate the options for improving your workflows, consult with an expert about best practices Unless you’ve got someone on staff who has been through the process, as Schuyer puts it, “you won’t know what you don’t know.” If you can “crowd source” input, you can move much faster in your decision making and more quickly get the information you need for your decisions You will always learn something when you tap into a fresh perspective from new people Schuyer suggested, don’t be afraid to reach out and have open conversations There are many benefits to a digital workflow Perhaps the most important is to standardize the way you work on a project You’ll also benefit from having a single source of truth for project data Integrate innovation as you need it Don’t try to emulate the competition, because you may not need everything another company LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 41 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP needs On the other hand, if you don’t implement any technology, your business will be standing still Moving Toward Standardization The MEP industry is ripe for innovation In the current business climate, contractors must improve safety while still constrained by schedules, budgets and a skilled labor shortage Research shows that the new 2020 safety requirements cut into productivity by 40% As demand drives the industry forward, contractors are forced to more with less There exists a window of opportunity here As Clay Smith of eVolve MEP has said about offsite prefabrication, “I don’t know how you’d keep up without it.” Standardization – processes that can be repeated – will be necessary in order to build the number of buildings we’ll need by the year 2050 The industry is moving, indeed it must move, in this direction To keep pace, some companies have been “app happy” and added multiple plugins to tweak their processes They’ve either built them or bought them However, the reality is, most managers would prefer to use as few products as possible to accomplish a project With the new Autodesk-eVolve MEP-GTP/Stratus partnership, those miscellaneous apps and plug-ins can be replaced by integrating the three partners’ products The result is processes that are less complicated and more streamlined Sometimes technology is developed for technology’s sake However, this partnership provides technology for the industry’s sake – enabling a better quality of work life The tools add value and move the industry forward every day Construction is still operating Contractors are busy, and they need to work better, faster and safer than ever before There’s a desire in the industry for what can happen, and barriers to industry-wide change are coming down These can be exciting times when you champion the innovation Collaboration and BIM Is the construction industry not adopting technology because companies and workers are just stubborn? Or is it a situation where the right value proposition or tools are not being offered? Sameer Merchant, Head of Product Development for Autodesk Construction Solutions, offered his take on BTG There is technology today that is LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 42 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP being embraced widely, for instance cell phones and online virtual meetings Mobile devices are popular, and there are mobile applications being used So it’s possible that, if you have the right value proposition, proposition people in construction are capable and willing to embrace technology solutions Construction software leader Autodesk has made a commitment to making collaboration simple and helping architects, engineers and construction teams remain resilient Connected construction is a critical part of that Keeping data in sync across multiple teams is a challenge that technology can rise to meet Workflows need to connect with each other A seamless data flow will result in a cohesive user experience that benefits from a central data hub The possibilities include sophisticated things like automatic clash detection Using the cloud environment eliminates the need to duplicate efforts and manually synchronize designs If the architect revises information, the changes can easily be transmitted back to the field, so the jobsite is always working from the latest information Potential change orders can be sent to owners for approval and transmitted easily and seamlessly The emphasis is on the entire workflow The historical methods of manually handling drawings and changes invariably led to things falling through the cracks when data got out of sync The result was issues that required repairs or retrofits and caused cost overruns and schedule delays on nearly every construction project Because we don’t have the luxury of working from the same physical location in the current pandemic scenario, it’s even more imperative that we figure out a way to collaborate There’s a premium on collaboration and knowing the data you’re working on is the right data Having access to the massive amount of data we now have on a construction project makes you a lot more intelligent and gives you insights into the project As that data comes together, you can look at it from different angles One good example is your ability to tap into it and study risk factors and cost factors You can mitigate those risks before they become larger issues LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 43 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP The data collected on a job can help you get smarter, better, faster, and more efficient on the next project The question shouldn’t only be, Did we make a profit? There’s much more you can pull from the project details Although the amount of data may seem overwhelming, things can surface that are actionable Implementing technology gives you a valuable competitive advantage and also allows you to be more resilient when disruptions – like this pandemic – happen Around the world, companies are reconfiguring the way they conduct business And it’s likely that it will never be the way it used to be LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 44 bridgingthegappod.com SUMMARY A significant component of leadership is having trust in your people A good leader is constantly assessing team members to determine if they are the right fit for the job they are doing The people closest to the action should be the ones making decisions wherever possible The features of a good collaborative environment include communication first, because delivering a project is a team effort Collaboration is the way projects should get done There should be give and take and respect This is a good time to cultivate relationships, because you can always learn something from someone else Teamwork and good corporate culture are important in producing a profitable job Companies with good leadership have a healthy culture of innovation, while embracing the digital transformation overtaking the construction industry With a combination of corporate culture, communication and relationships, the dynamic between the office and field staff can be fine-tuned when you are intentional Successful BIM managers need to be willing to learn from the workers in the field Advancements in technology promise to get us all on the same page with improved internal communication within teams and then collaboration among teams Technology innovations are enabling greater efficiencies, safer work environments, more costeffective operations, improved job performance, and better schedule control If a job seems too hard, you’re probably not using the right tool Innovation benefits the construction industry at large The true test of whether a solution will be innovative is whether it is repeatable, teachable, compatible, and supportable When you’re looking to implement a digital workflow, your first step should be to analyze your current workflow Determine what’s working well and what can be improved or conducted in a more disciplined way Consistency is the key to efficiency No matter how digital your processes have become, your customers are looking for superior service and outstanding quality Although disruption is affecting the way we all work, there are those with strong leadership who will continue to actively participate in changing things for the better We’ve seen technology come on the scene as the first line of defense for retooling businesses to survive and thrive in what seems to be a sink-or-swim situation The construction industry needs grit: understanding where you’re starting from, that circumstances may not be perfect, but the job has to get done with no excuses The world changes, and contractors are needing to change with it using internal agents of change When times get tough, it’s time to check out new and better ways of doing things LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 45 bridgingthegappod.com SUMMARY Each company is different, but they all can profit from small wins of greater efficiency and productivity When a process is streamlined there will be a return on investment – if not immediately, then in the future Champions are needed to guide companies through developing data during a job and understanding how the business should use it Assembly-based construction and other trends are coming, and the construction industry is primed for taking advantage of them Eventually today’s trends – and probably things we haven’t thought of yet – will transform the way every contractor works There’s a desire in the construction industry for what can happen, and barriers to industry-wide change are coming down These can be exciting times when you champion the innovation LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 46 bridgingthegappod.com ABOUT THE AUTHORS Todd Weyandt Todd is Director of Creating Marketing at Applied Software He hosts Bridging the Gap podcast – voted Best Construction Podcast of 2020 by Construction Junkie readers – where he uncovers the latest trends in construction and MEP Todd seeks out enlightening conversations with industry experts who are changing the technological landscape Engaging a full spectrum of voices, he champions an industry dialogue that supports companies as they try new things, advance and thrive He is on a mission to embrace and share the innovations transforming the construction landscape Carol Dunn Carol is a professional writer She joined the Applied Software marketing team in 2018 after 26 years with the top-ranked Autodesk Authorized Training Center in North America – what is now the Denver-metro-based Applied Software office She began working in the CAD industry in 1992, when AutoCAD was one of only a few products Autodesk marketed She has held most of the positions a small business requires of management, including GM, sales, accounting, tech support, customer service, and sometimes the janitor LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 47 bridgingthegappod.com ... the technology tools that address their issues and keep them competitive LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 24 bridgingthegappod.com CHAPTER | BRIDGING THE DISRUPTION GAP The. .. of the obstacles, the MEP trades manage to make things happen LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 25 bridgingthegappod.com CHAPTER | BRIDGING THE DISRUPTION GAP Digital Transformation. .. - EPISODE LEADING THROUGH DISRUPTION AND DIGITAL TRANSFORMATION 37 bridgingthegappod.com CHAPTER | BRIDGING THE DIGITAL TRANSFORMATION GAP The future of the MEP industry hinges on the trends