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

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"Leadership Principles Used In the Procurement Process"

Professor Bill Badger

Del E. Webb School of Construction


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Our Place at ASU

Arizona State University(ASU)

55,000

Ira A. Fulton School of Engineering

6,700

Del E. Webb School of Construction

(DEWSC)

500

Industry Advisory Council

(IAC)

75 Professionals

Alliance for Construction Excellence

(ACE)

166 Companies


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Enrollment

500 in 2004

192


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Mr. Del E. Webb

  • Known for Sun City Residential Developments

  • Co-owner of New York Yankee's baseball team

  • 1962 Time Magazine Man of the Year

  • Invested his wealth in the Webb Foundation in 1976


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Compared to our Peers

  • # 1-5 in total Construction Research

  • # 1 in NSF Research Grants

  • # 1 in Scholarships ($2.4M scholarship endowments)

  • # 1 in Industry Outreach Activities

  • # 2 in total Endowments

  • # 12in Enrollment

  • # 1 in Teaching in Fulton School

29 October 2001 issue of ENR


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Construction Opportunities

“We will build more things in the next thirty years than we have in the last two thousand.”

Dr. W. W. Badger


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Construction Curriculum

100%

100%

80%

80%

60%

60%

CE&M

40%

40%

20%

20%

0%

0%

0%

20%

40%

60%

80%

100%

10% of $$

DEWSC

90% of $$

Procurement/Construction

Project Cost

Level of Influence

Design / Engineering

Planning

Project Duration

Dr. W. W. Badger


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Our Graduates

  • Architects become Employees

  • Engineers become Employees

  • Constructors or Construction Managers become Employers

    Educate in the Business of Construction


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Construction ModelKeep it Simple

  • “Get Work”

  • “Do Work”

  • “Keep Score”

In the American System, there are no Quality Surveyors


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Owner Desires

  • Lower Costs

  • Quicker Schedules

  • Better Operational Features

  • Less Risk

  • Less hassle


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Architect/Engineer Desires

  • Quality Project

  • Signature Project

  • Minimize Change

  • Less hassle


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Contractor’s Desires

  • More Quality Work

  • Better Subcontractors

  • A Profit

  • Less hassle


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Subcontractor's Desires

  • Prompt Pay

  • Good General Contractors

  • Working Change Order Process

  • Less hassle


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Individual Desires

  • Job Satisfaction

  • Job Stability

  • Less hassle


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My Less Hassle

  • Sensitivity to people

  • Win-Win relationships

  • Build trust

  • Use the Golden Rule

  • Be Ethical

  • Practice Partnering

  • Apply TQM

  • Communicate


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The Changing Environment

You are

  • hiredfor yourtechnical skills

  • promotedfor yourleadership &management skills

  • - -firedfor yourlack of people skills


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Where does Leadership Come from?

Influences in developing people skills in the education process

31%

17%

12%

5%

Home

University

Books &

K to 12

Education

Study & TV

Mom

Self Improvement

Dad

Teachers

Professors

Continuing Education

Siblings

Peers

Peers

7%

21%

7%

Part Time

Clubs &

Professional

Church

Teams

Jobs

Career

Growth

Family

Team Mates

Peers

Coaches

Peers

Pastors

Club Officer

Bosses

Employees

Peers

Bosses

Customers

Good

50%

Bad

50%


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Our Graduates have Special Skill Sets

  • Technical Core

  • Time and Cost Control

  • Contract Administration

  • Computer Expertise

  • Business Management

  • People Skills

  • Leadership


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Innovative Education

Communications

Teamwork

Information

Technology

  • Of the 25 Construction Courses

    • 25 % require oral presentations

    • 50 % writtenassignments

    • 44 % work students in teams

    • 32 % use cooperativelearning

    • 44 % require computerusage


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Internships A Real World Perspective

Field Internship in a construction company for the summer for all DEWSC students!

Mandatory


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Where Leadership Begins

We should

continue to produce

industry leaders !


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LeaderShape at DEWSC

The LeaderShape Institute is a 6 day interactive energizing and unique experience that builds leadership skills

  • 2002 University of Illinois

    • 4 students attended

    • Kitchell Endowment

  • 2003 University of Illinois

    • 6 students

    • 2 facility attended

      • Professor Fiori

      • Professor Knutson

  • 2004 or 2005

    • Session hosted by DEWSC

    • 60-70 students

    • Camp Tontozona in Arizona

Dr. Kraig Knutson


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YourMolecule

  • Spend your time working your molecule

  • Relationships & Time

You


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YourAcademic Molecule

  • Student’s Academic Molecule

  • Universities have six Levels of Molecules

Family

Professor 1

Church

Friends

Professor 2

You

Professor 3

Professor 5

Professor 4


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YourProjectMolecule

Boss

Subcontractors

Government Officials

Bonding/Insurance Agent

Owner

You

Engineer

Architect

Employees


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PRAM MODELDr. ROSS RECK’S

Win-Win

Plan

Maintain

4

1

Win-Win

Relationships

3

2

Win-Win

Agreements


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Wisdom

  • Leadership is a force for change

  • Management is a force for continuity and consistency


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Leadership - Management Balance

Leadership

Management

Doing the right things

Doing things right

Ref: IBM Leadership Skills for Executives


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Key Management Functions

Controlling

Organizing

Planning

POC

Ref FMI


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Key Leadership Functions

  • Setting Directions

  • Alignment

  • Motivation

SAM

Ref FMI


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POC Versus SAM

Ref FMI


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Reason for Switching Contractors

  • 15 % Better Product

  • 15 % Better Cost

  • 70 % People Nicer to Deal With


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When Will a Project Lose MoneyJim Lammie

  • When project has a new project manager

  • You are dealing with a new client

  • Dealing with new technology

  • Secondary reasonSplit office/divided responsibility


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Art Stout Intel’s Construction Head

It is relatively easy to train a manager, but extremely difficult to educate a leader !

Consequently we have ten times as many managers than leaders !

What we really need is leadership….


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Research Thrust Areas $3.5M

  • Alternate Project Delivery Systems

  • Performance Based Procurement

  • Cleanroom Construction

  • Construction Simulations

  • Trenchless Engineering

  • Residential Construction


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APDM Research

Dr. Jim Ernzen

  • Alternate Project Delivery Methods Task Force

  • Wrote new legislation allowing public agencies to use:

    • Design/Build,

    • Construction Manager @ Risk, and

    • Job Order Contracting

  • Currently $4B in public APDM work underway


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Information Based Delivery

Dr. Dean Kashiwagi

  • $4M of research over 8 years

  • Using information technology to minimize decision making and risk

  • Tested 400 times on over $250M of construction

  • Implemented by FAA, US Coast Guard, and being entertained by Harvard University

  • Minimizing 80% of owner’s overhead

  • Increase performance to 96% On-Time, On-Budget, with no contractor change orders


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PBSRG History

  • PBSRG was founded in 1994 by Dean Kashiwagi.

  • $4.2M of research funding in last 9 years.

  • Over 350 cycles of scientific method testing to optimize delivery of construction.

  • Results have shown a dramatic increase in performance and quality (over 96%).


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PBSRG Research

  • Performance Information Procurement System

  • Information Measurement Theory

  • Best-value procurement systems

  • Supply chain management

  • Artificial intelligent decision-making models

  • Risk management

  • Improving efficiency


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Specifications

Eliminate minimum standards / specifications

High

High

Low

Low

Contractor 1

Contractor 2

Performance

Performance

Risk

Risk

Contractor 2

Contractor 3

Contractor 1

Contractor 3

Contractor 4

Contractor 4

High

High

Low

Low


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Specifications

Owners

“What we are not getting”

Contractors

“The highest possible value you are getting”

High

High

Maximum

Performance

Performance

Minimum

Low

Low


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Construction Industry Structure

High

IIII. Negotiated-Bid

II.Performance-Based

Best Value (Performance and price)

Higher Quality

No Management & Inspection

Contractor Liability / Risk

Performance

I. Low-Bid

IV. Unstable Market

Construction is a commodity

Low Price

Minimal Quality

Management & Inspection

User Liability / Risk

Low

High

Competition


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Conclusions

  • Education your Graduates in the Business of Construction to Prepare them to Own the Construction Company

  • The Construction Industry works better in the No Hassle Mode


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Conclusions

  • Part Time Jobs and Internships are Critical in the Education in the “Business of Construction” !

  • LeaderShare and Leadership Training is essential in Educating the Construction Industry Leaders of the Future !


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Conclusions

  • The win-win Plan, Relationships, Agreements, and the Maintain of those Relationships are key concepts!

  • Balancing the Leadership and Management Principles with Emphasis on Leadership is

    Paramount to Success !


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Conclusion

  • Research in CM is critical to improving our Industry !

  • In Construction Procurement, when we increase Leadership Principles and reduce Management Control Principles, we receive increased Performance!


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2005CIB W92 Symposium


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Dates:January 10-13

Location: Las Vegas, Nevada (USA)


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My Vision of the Challenge

Thank you !

Bill Badger

Director and Professor

Del E. Webb School of Construction

480-965-3615

480-965-1769 FAX

bill.badger@asu.edu

http://construction.asu.edu


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