Tag: Strategic & Business Management

Project Scope: A Comprehensive Guide

Written by Suchita Panchal on December 26, 2023. Posted in Articles.

Clearly defining scope is the foremost step to completing a project successfully. The project scope outlines the boundaries and objectives of the project, providing a roadmap for project stakeholders to understand what needs to be accomplished, the required resources, and the timeline for completion.

This article is a comprehensive guide that will delve into the key aspects of project scope, including its definition, importance, elements, and how to manage scope changes efficiently.

What is the Project Scope?

Project scope refers to the specific objectives, deliverables, features, and functions of a project. It defines the boundaries of the project, outlining what is included and what is not. By defining the project scope, project managers can establish a clear understanding of what needs to be achieved, ensuring that all stakeholders are on the same page.

Importance of Project Scope:

1. Clarity and Direction:

A well-defined project scope provides clarity and direction to the project team, stakeholders, and clients. It ensures that everyone involved in the project understands what needs to be accomplished, reducing confusion and improving collaboration.

2. Resource Management:

Project scope helps in efficient resource allocation. It enables project managers to identify the necessary resources, such as staff, equipment, and budget, required to complete the project successfully. By having a clear scope, project managers can avoid over-allocation or underutilization of resources.

3. Cost and Time Estimation:

Project scope assists in estimating the cost and duration of a project accurately. With a well-defined scope, project managers can identify the tasks, dependencies, and milestones, allowing them to create realistic project schedules and budgets.

4. Risk Mitigation:

The project scope also aids in managing risks effectively. By clearly defining what is included and excluded in the project, potential risks and challenges can be identified early on, allowing project managers to develop appropriate risk mitigation plans.

Advertisement
[widget id=”custom_html-68″]

Elements of Project Scope:

1. Objectives:

Clearly defined project objectives are crucial to the project scope. It is essential to understand what results the project aims to achieve and how it aligns with the overall organizational goals.

2. Deliverables:

The project scope should identify the tangible outputs or deliverables that the project team will produce. These deliverables could be physical products, software, reports, or any other measurable outcome.

3. Boundaries:

The scope must outline the boundaries of the project by specifying what is included and what is excluded. This helps in avoiding scope creep, which refers to the uncontrolled expansion of project boundaries during the project’s execution.

4. Constraints:

Identifying constraints within the project scope is also important. Constraints may include limitations in terms of time, budget, resources, technology, or any other factor that may impact the project’s execution.

Managing Scope Changes:

In the course of a project, changes to the scope are inevitable due to various factors such as changes in requirements, stakeholder requests, or unforeseen circumstances. However, managing scope changes is crucial to prevent scope creep and ensure project success.

Here are some key steps to effectively manage scope changes:

1. Clearly communicate the change

When a scope change is proposed, it is important to transparently communicate the implications of the change to all stakeholders, including the project team, management, and clients. This ensures that everyone understands the impact of the change and can make informed decisions.

2. Assess the impact:

Project managers along with business analysts must assess the impact of the proposed scope change on the project timeline, budget, and resources. It is crucial to evaluate whether the change can be accommodated without significantly affecting the project’s objectives.

3. Obtain stakeholder agreement:

Before implementing any scope change, obtaining agreement from all relevant stakeholders is essential. This ensures that all parties are aligned with the proposed change and minimizes the chances of misunderstandings or conflicts.

4. Adjust project plan:

If the scope change is approved, the project plan, including the schedule, budget, and resource allocation, must be adjusted as mentioned in the scope document. Project managers should update the project documentation and communicate the changes to the team.

5. Monitor scope changes:

Throughout the project, it is important to monitor and control scope changes continuously. Project managers should regularly review the scope to identify any unauthorized changes and take appropriate actions to prevent scope creep.

In a nutshell, a well-defined project scope is vital for the successful execution of any project. It provides clarity, direction, and a framework for project stakeholders to understand the project objectives, deliverables, and boundaries. By effectively managing scope changes, project managers can ensure that projects stay on track, avoiding scope creep and delivering successful outcomes. Therefore, project managers and business analysts must invest time and effort in developing and maintaining a comprehensive project scope, right from the project’s initiation.

Psychological Safety and Accountability for Performance Management

Written by George Pitagorsky on December 6, 2023. Posted in Articles.

Reading an article, “The Downside of Psychological Safety in the Workplace“[1], I am reminded of the need for clear thinking when it comes to applying any philosophy, particularly in the area of psychology and performance at work.

Albert Einstein advised us to make everything “as simple as possible, but not simpler.”

It is easy to take a clever idea and ruin it by mindlessly applying it as if it was the miracle cure for every situation. Avoid seeking simple solutions to complex problems. We see it operating in the application of agile management, positivity, candid communications, as well as psychological safety. When we apply a belief or theory without considering and adapting to the situation at hand, we risk making things worse instead of better.

Psychological Safety

Psychological safety is a good idea. It focuses on freedom from shame and fear of punishment. Proponents of psychological safety believe that this safety correlates with high performance.

How bad could being psychologically safe and high performance be?

But, over simplifying can lead to a belief that any kind of discipline or negative criticism is psychologically harmful and degrades performance.

The article mentioned earlier was co-authored by Wharton’s Peter Cappelli. It says that “Too much psychological safety at work can jeopardize performance in typical jobs, according to new research.”

The research implies that people in typical jobs, as opposed to creative or innovative jobs, need less psychological safety. Too much safety, and workers will slack off and their performance will suffer.

Are people in “typical” jobs more likely to perform well if they are in fear of being punished or shamed? Are they lazier, less motivated, more deserving of psychological abuse than creative problem solvers, designers, and other creativity workers? Are creative workers immune to the downside of too much safety?

I do not think so.

What are Typical Jobs?

First, it is necessary to define “typical” when it comes to jobs. Among the most common jobs are nurse, service representative, cashier, and server. And of course, there are project manager, software developer, and all the other jobs found in projects.

Creativity and innovation are not limited to jobs in R&D or design, where there is a need to risk being wrong to get it right.

Jobs in other fields may be best done with repetitive application of accepted tools and techniques, but there is always some need for creativity. Even AI based robots must be taught to assess the situation before applying a solution. It is a think out of the box, when necessary, attitude.

In Toyota’s quality management system, assembly line workers were expected to stop the line if they saw a problem. Fear of making a mistake would inhibit workers from taking the initiative to stop the line. Fear would stop workers from creatively adapting instead of following the rules.

Goals Drive Performance

High quality performance is critical to success. Performance is optimized by focusing on both short-term goals like getting the task done right, and long-term goals like continuously improving process and wellness.

Optimal performance can be achieved without shame or fear of making errors by working to “perfect” process and outcome using a quality management mindset.

Some errors or defects are expected. That is why Six Sigma is not Infinite Sigma. When they appear, errors are seen as learning opportunities to discover the cause and avoid it next time. Systemic causes are explored before blaming performers.

But that does not mean there is no accountability for poor performance. If a performer continually makes errors and fails to take responsibility for their performance, discipline is required. Without it, morale and team performance suffer.

Too Much of a Good Thing

So, it makes sense to include psychological safety and accountability in performance management. Psychological safety is meant to relieve any kind of worker of the unnecessary and damaging effects of negative motivation. Accountability is making sure that causes of performance deficiency are discovered and acknowledged.

Psychological safety, like any psychological-behavioral-management-leadership approach, should not be taken as standalone truth. It must be applied based on each situation, integrated into a broader program that values personal, organizational, environmental wellness and optimal performance.

Advertisement
[widget id=”custom_html-68″]

Accountability is Needed

Accountability is often misunderstood. It would be ideal if everyone understood the need for it, had a great work ethic, wasn’t afraid of criticism, and everyone’s performance, the organization was accepted and accepting.

Accountability is not Blaming

But the ideal is not the norm and even if it was there is still a need for accountability.

Accountability is not blame. It is bringing performance to the surface to identify the causes of performance quality – whether it is good or bad. It is great to be held accountable for stellar behavior and not so great to be held accountable for errors and failures.

Whenever there is accountability, some individuals will be afraid and view consequences as punishment. They may perceive management as a bunch of mean overseers ready to criticize and punish.

There is an internal psychological dynamic at work. Some fear being fired. Some have an internal judge criticizing any imperfection with an unrealistic sense of perfection. Some in leadership positions lack empathy and misread resistance to accountability as laziness. Some blame when they find someone accountable.

Fear is generated from the inside, even when there is no external threat. Recognizing the psychological dynamic enables individuals to be self- reflective and put their inner critique in its right place. Their recognition gives management and leadership the ability to be empathetic and more effective in managing performance.

How to Go Forward

When it comes to managing performance, consider both psychological safety and sustained effective performance and continuous improvement.

Safety and accountability are not mutually exclusive. In fact, they go together to promote wellness, process quality, and sustainable high performance.

Psychological safety is promoted by a program of training and sustained reinforcement for managers and staff on what makes for the best way to handle accountability.

That kind of program confronts the causes of blaming and resistance to accountability, psychological dynamics around fear of criticism, methods for objective accountability, and the need for a quality management process that seeks sustained optimal performance.

[1] https://knowledge.wharton.upenn.edu/article/the-downside-of-psychological-safety-in-the-workplace/?utm_campaign=KatW2023&utm_medium=email&utm_source=kw_campaign_monitor&utm_term=11-22-2023&utm_content=The_Downside_of_Psychological_Safety_in_the_Workplace

The Relevance of Mobile App Development for Businesses

Written by Aleksandr Shulgin on November 22, 2023. Posted in Articles.

Mobile app development is more relevant and important than ever for businesses of all sizes in the current digital era. Our daily lives and how we engage with the world around us have been completely transformed by the introduction of smartphones and the explosive expansion of mobile technology. Mobile applications have permeated every aspect of our everyday life, from productivity and shopping to communication and pleasure.

Let’s explore the significance of application development for businesses, the specialists required for developing mobile applications, the typical cost of hiring such specialists, where to find a mobile app development team, what factors to take into account when choosing them, the potential for outsourcing application to a development team, and the benefits of outsourcing.

Why is App Development Important for Business?

For businesses, the creation of mobile apps offers a variety of advantages and opportunities that help them grow their consumer bases and remain competitive. A survey conducted by Clutch revealed that 42% of small businesses already have a mobile app, while 30% are planning to build one in the future, indicating the growing adoption of app development teams across various industries. For the following reasons, developing apps is essential for businesses:

A well-designed mobile app enables businesses to interact and engage with their consumers more personally.

Increased Customer Engagement. Apps may greatly increase consumer engagement and loyalty by offering useful features, smooth user experiences, and tailored content.

Increased Brand Visibility: Creating a mobile app gives companies a dedicated platform to promote their goods, services, and brand identity. The user’s smartphone now has the app icon, which acts as a continual reminder of the brand, boosting exposure and brand familiarity.

Improved Customer help: By providing features like chatbots, in-app messaging, and self-help choices, mobile applications may simplify and enhance customer service. These features allow organizations to help customers quickly and effectively, enhancing their pleasure and loyalty.

Increased Sales and income: Customers may make purchases using mobile applications in a simple and secure manner, increasing sales and income streams for enterprises. Additional incentives for clients and repeat business can be provided through in-app purchases, mobile payments, and loyalty programs.

Competitive Advantage: Having a mobile app may provide firms a competitive edge in today’s congested industry. It demonstrates an innovative mindset, a dedication to satisfying client demands, and a forward-thinking attitude. A well-made, feature-rich app may draw in new users and set a company apart from its rivals.

Specialists Needed for Mobile Application Development and Average Cost of Hiring

Source: Sigmund. Unsplash

A group of qualified experts with a range of specialties is needed to develop a mobile app. Following are some of the major positions in mobile app development team and their respective typical salaries:

Project manager: Plans and organizes the development team, oversees the whole app development process. A project manager typically costs between $60,000 and $100,000 per year to hire.

UI/UX Designer: Develops user-friendly and aesthetically pleasing interfaces. The typical annual salary for a UI/UX designer in a good development team is between $40,000 and $90,000.

Writes the code and creates the software for particular platforms (such as iOS, Android, etc.). Depending on experience and competence, hiring a mobile app developer might cost anywhere between $50,000 and $120,000 annually.

Quality Assurance (QA) Tester: Verifies that the program runs without hiccups and finds any defects or problems. A QA tester typically costs between $40,000 and $80,000 per year to hire.

Advertisement
[widget id=”custom_html-68″]

Where to Look for Specialists and What to Consider When Selecting Them

There are several options to consider while looking for experts in mobile app development. Here are a few possibilities:

In-House Hiring: By advertising job vacancies on appropriate sites, holding interviews, and evaluating candidates’ credentials and experience, you may hire specialists directly.

Independent contractors and freelancers: Websites like Upwork, Freelancer, and Toptal give users access to a large pool of qualified experts who may work on a project-by-project basis.

Business Networks:

Leveraging professional networks may be quite helpful when trying to identify experts for mobile app development team. When choosing professionals, keep the following things in mind:

– Look for appropriate experience: Verify that the professionals you are considering have expertise creating mobile applications and have the abilities required for your particular project needs.

– Examine portfolios and references: Look into their prior work and contact references or clients for testimonials. You may learn more about the caliber of their work and their capacity for success from this.

– Evaluate your teamwork and communication abilities. Successful app development depends on strong teamwork and communication. Look for experts that can clearly convey ideas, comprehend your vision, and function well in a development team.

– Technical proficiency: Examine the specialists’ technical proficiency by gauging their familiarity with the frameworks, programming languages, and tools used in the creation of mobile apps.

– Cultural fit: Take into account how well the professionals fit into your company’s culture. A more efficient development process may be achieved by creating a good working connection and adhering to the ideals of your firm.

Outsourcing Application Development and the Advantages of Outsourcing

Businesses also have the option to outsource their application development in addition to recruiting professionals inside. There are a number of advantages to outsourcing, including:

Cost-effectiveness: Compared to recruiting an internal workforce, outsourcing is frequently more affordable. It does away with the need for office space, equipment, perks, and recruitment expenditures. You may also benefit from the experience of experts from nations with reduced labor expenses through outsourcing.

Gaining access to specialized skills: By outsourcing, you may tap into a vast talent pool. Making sure you discover the best experts for your project, you may pick from a large choice of specialists with a variety of skill sets and knowledge.

Outsourcing saves you time by letting professionals handle the development process while you concentrate on your main company operations. Time is saved, and the job may be finished more quickly.

Scalability and flexibility: Outsourcing allows you to manage your app development demands with scalability and flexibility. The development team size may be readily increased or decreased to meet project objectives, guaranteeing efficient resource use.

Shorter time to market: Outsourcing can hasten the design phase. Your software may be released more quickly and you’ll have an advantage over competitors if you have a committed staff working on it.

Conclusion

In today’s digital environment, the success of enterprises depends greatly on mobile app development. It provides better brand recognition, better customer service, higher sales and income, and a competitive edge. It also increases customer engagement. It’s crucial to select the best professionals, taking into account their credentials, experience, and cultural fit, in order to create a successful mobile app. Specialists can be found through internal employment, independent contractors, and business networks. As an alternative, contracting out the development of apps offers cost efficiency, access to specialized expertise, time savings, scalability, and a quicker time to market.

Businesses may use the power of mobile technology to propel growth and success by recognizing the importance of mobile app development and making smart choices regarding expertise and outsourcing.

What Construction Project Managers Should Know about Change Management

Written by Lucas Marshall on November 8, 2023. Posted in Articles.

A conference talk on the challenges faced by project managers of the 21^st century lists several factors experienced across industries: scope management, information technology, team dynamics, customers’ satisfaction, lean management, communication, innovation, and quality.

The construction industry in particular is prone to change. Part of this is due to the nature of its workforce. For example, an article for the Human Resource Management Journal describes the construction industry as “reliant on a transient workforce and exist[ing] within a complex multidisciplinary team-oriented environment.” This workforce is continually challenged with some experts suggesting a dynamic approach to analyzing impacts of skilled labor shortages.

As you would imagine, multiple studies have been conducted in how change management principles may be useful in construction projects (e.g., see: conference talk for the 25^th International Conference on Information Technology, International Journal of Project Management article, etc.).

Materials pricing in the industry is finally starting to stabilize; however, they remain high (higher than pre-pandemic levels). The labor shortages the industry face are part of a larger story of an aging workforce – hence why newer, tech-forward roles that can attract a younger generation of workers are increasingly important.

The job of a construction project manager is ever critical to meet the needs of complicated projects with continually constrained resources. Change management is one concept in these managers’ toolkit that can help them confront the constantly shifting construction landscape.

What Is Change Management?

Change management, defined by the Harvard Business School Online, is a term that “refers broadly to the actions a business takes to change or adjust a significant component of its organization” including company culture, internal processes, underlying technology infrastructure, corporate hierarchy, or other critical aspects.

Change, they explain, can be adaptive (e.g., small, gradual, iterative changes to evolve a business’s product lines, processes, workflows, and strategies over time) or transformational (e.g., larger scale/scope changes that signify dramatic and “occasionally sudden, departure from the status quo,” such as launching a new business division, expanding internationally, etc.).

To put this into context of construction, an adaptive change might be a sudden change order (i.e., a documented re-define of scope, budget, or timeline of a previously agreed upon construction job). A transformational change, meanwhile, may be a change in management structure or a company buyout.

Change management are the processes and guiding principles that help organizations (particularly, the employees that make up them) respond dynamically to change.

Construction project managers, coordinating teams of cross-functional workers onsite in a “multifaceted, dynamic industry,” need an equally dynamic approach to change management.

Here are some of the factors construction project managers may consider keeping top of mind:

ADKAR

One change management concept construction project managers should know is ADKAR, a change management model and acronym developed by Prosci® founder Jeff Hiatt after extensive study of patterns at more than 700 organizations.

ADKAR is an acronym for:

Awareness – Of the need for change
Desire – To participate and support the change
Knowledge – On how to change
Ability – To implement desired skills & behaviors
Reinforcement – To sustain the change

Prosci® recommends a 3-step process for implementing ADKAR within an organization:

Step # 1: Prepare approach – in this phase, practitioners (e.g., construction project managers) establish what they’re trying to achieve (e.g., better project outcomes) by defining impact (i.e., how the change affects individuals) and approach (i.e., the steps needed to achieve project success and mitigate risk – such as defining clearer project milestones and maintaining open lines of communication/collaboration)
Step # 2: Manage change – in this phase, the change management strategy is brought to life through three stages:
- 1) Plan and act (i.e., preparing, equipping, and supporting those impacted by change – e.g., creating project management plans)
- 2) Track performance (i.e., the phase in which change management efforts are tracked through implementation and practitioners identify performance strengths and opportunities – e.g., how effective is a project management tool in increasing project visibility, to what extend does it increase collaboration between team members?
- 3) Adapt actions (i.e., based on what practitioners have learned, they spend time adjusting the change management strategies – e.g., considering the observed efficacy of the implemented project management tool, what tweaks should be made to ensure continuous improvement?
Step # 3: Sustain outcomes – in this final phase, the practitioner establishes the approach needed to ensure change is sustained organizationally for the long-term. Outcomes include:
- Review performance – reflecting on performance, confirming desired results, and reviewing and documenting lessons learned (e.g., project postmortems)
- Activate sustainment – focusing on implementing actions to sustain change outcomes, engaging in activities to identify gaps and activate sustainment roles
- Transfer ownership – establishing how to carry sustainment efforts forward with activities including the transfer of knowledge and assets (e.g., sharing lessons learned with and recommendation to business owners)

ADKAR is a powerful change management model and tool worthy of consideration within construction projects to sustain meaningful change organizationally with how companies approach future projects.

Advertisement
[widget id=”custom_html-68″]

Structural Flexibility and Antifragility

Prosci® recommends implementing change management at both the project- and organizational-level (i.e., project managers should be fierce and empathetic advocates for both the individualistic people-side of change as well as possessing “a leadership competency for enabling change within [an] organization and a strategic capability designed to increase […] change capability and responsiveness”).

In other words, change management should be implemented from top to bottom.

Another, related managerial concept is antifragility, a business model first coined by financial scholar Nassim Nicholas Taleb. The concept makes reference to Greek mythology and the creature known as Hydra who possesses nine heads and is depicted to possess immortality and the power of linear regeneration – growing three heads in the place of two from each stump when decapitated. This linear progression shows the Hydra, when attacked by an adversary intent on defeating it, becoming stronger through the adversity.

As a construction project manager, building structural flexibility and antifragility into your project framework such that team members are empowered to respond dynamically to change can make teams stronger in spite of any adversity they may encounter:

Do teams have the authority to employ creative workarounds (e.g., find new supplier, 3D printing, prefab) or work with customers to avoid excessive changes in design that explode project scopes (e.g., suggesting alternative, recyclable materials; cheaper, more readily available alternatives; negotiating on delivery fees; etc.)
Do teams have the authority to reject change orders (if too far out-of-scope)?
Do teams have the authority to strategically plan (e.g., purchasing safety stock on critical materials from wholesalers)
Do teams have the tools they need cross-functionally to be successful (we discuss this in the next section)

Embracing Technology for Dynamic Change Management

Technology should be no stranger to construction project managers. It is the enabler to productivity among teams even where resources are limited. It is the facilitator that allows the transfer of knowledge between cross-functional teams, breakdown of information silos, and builds antifragility into your workflow structures.

Digital solutions that exist to empower construction teams include (but are not limited) to:

Project Management: Tools like Procore®, Autodesk® Construction Cloud™, Buildertrend, e-Builder®, and Fieldwire by Hilti® help project managers coordinate work, delegate tasks, track progress performance, and document disputes and excessive change orders. Facilitating cloud-based project management enables real-time collaboration similar to how cloud-based collaboration tools like Office365 or Google Workspace enable real-time collaboration among office workers and university students.
Building Information Modeling: Building information modeling enables digital representation of building projects that facilitates collaboration between designers, architects, engineers, construction managers, and customers in real-time, allowing companies to find and mitigate risk, and reduce potential issues in design that would otherwise lead to change orders and overruns.
Inventory Management: Cloud-based inventory apps can help construction teams manage materials as well as equipment needed onsite to perform work, as well as cut down on hording across a multi-jobsite infrastructure.
Embrace Integration: In addition to the tools above, it’s critical to embrace technology integration – creating pathways for data sharing between project management, design, and in-field execution teams ensures real-time communication, prevention of duplicate (sometimes outdated) project data, and meaningful collaboration that mitigates risks.

Certifications for Construction Project Managers

Finally, aspiring construction project managers should consider certification programs that can (in addition to demonstrating competency to potential employers aiding in career advancement) provide practitioners with the necessary knowledge and skills to apply effective management techniques to the planning, design, and construction of projects that controls time, cost, and quality.

Possible certifications of note include:

The Construction Management Association of America’s Certified Construction Manager Certificate
The Project Management Institute’s Construction Professional in Built Environment Projects (PMI-CP)™ certificate
The Project Management Institute’s Agile certifications can also provide practitioners the knowhow to apply relevant agile/scrum principles to construction technology implementation
Certifications in Lean Management offered through the Lean Construction Institute and Associated General Contractors of America to apply lean management principles, reduce waste from projects, and improve quality assurance

For Construction Pros also recommends six other worthy contenders for certifications for construction career development.

Bottom Line

The construction industry, more so than other industries, is defined by change. As the industry faces continuous operational challenges, it’s ever critical that construction project managers have the tools to manage their projects dynamically—change management chief among them can help them empower and empathize with their cross-functional stakeholders and building partners, equipped to grow, evolve, and become stronger through stressors they’re constantly confronted by.

From Waterfall Walls to Agile Architecture: The New Era of Construction

Written by Lucas Marshall on October 18, 2023. Posted in Articles.

This is a collaborative article cowritten by Lucas Marshall and Jason Braun.

Productivity is hard to measure. It differs depending on industry, for one. What’s more, the construction sector is what the Becker Friedman Institute for Economics at the University of Chicago considers “strange and awful,” representative of raw BEA data suggesting “that the value added per worker in the construction sector was about 40 percent lower in 2020 than in 1970.” For instance, the construction of the One World Trade Center in New York faced numerous delays and budget overruns, highlighting the challenges the industry faces. Labor shortages—whose “impacts on labor wages, cost overruns, and scheduling concerns in construction projects”—could be the driving factor here as companies struggle to fill positions while unemployment remains low. In other words, “few construction workers [are] seeking jobs, and therefore the pool to fill demand is shallow,” while onsite workers face the unique challenge of executing projects with limited resources—adding to these impacts and slowing growth.

At first glance, the worlds of software development and construction may seem poles apart. However, both industries grapple with the complexities of managing large-scale projects, ensuring timely delivery, and adapting to unforeseen challenges. For example, the development of the Windows 95 operating system was a monumental task for Microsoft, much like constructing a skyscraper is for a construction firm. Just as software developers transitioned from the rigid Waterfall methodology to the more adaptive Agile approach to address these challenges, the construction industry stands at a similar crossroads.

While it may seem alien to the construction sector, the software industry has subbed one framework (i.e., waterfall) for another (agile), resulting in success ratios two times greater, 37% faster delivery, and greater impact on improving product quality, a 2023 scholarly study found. Popular apps like Spotify and Airbnb have notably benefited from Agile methodologies, iterating rapidly based on user feedback.

In this article, we propose applying similar agile and lean construction methodologies illustrative of industrialized construction. Like software—which replaces a rigid, monolithic release cycle with a more agile framework—we explain that industrialized construction looks to replace the old-school, one-off “project” mindset with a fast and dependable productization framework. Consider the construction of modular homes, which are built offsite in controlled environments and then assembled on-site, mirroring the iterative development and deployment in software.

Software Project Management: From Waterfall to Agile

Companies in the software industry generally use one of two frameworks when building software products:

Waterfall

Waterfall is a more traditional approach to software development where production takes place in a linear, sequential manner (i.e., every task needs to be finished before the next one begins). This means new software solutions begin by defining requirements, then shifting into the software design phase, then shifting to the software developers building what has been proposed, then verifying the release is stable, and finally shifting into maintenance (i.e., finding and squashing bugs). For instance, the early development of Microsoft Office followed a Waterfall approach, with distinct phases and milestones.

Key point: Like construction projects that oftentimes involve a considerable deal of back-and-forth with approvals before breaking ground, then contend with unpredictable access to onsite labor and materials as well as rapidly changing weather conditions, we’ll argue later that construction is due for breaking from the waterfall-like processes through industrialization.

Agile

Agile is an iterative, team-based approach to software development where rapid delivery of functional products over a short period of time (known as sprints) is used (similar to lean manufacturing methods applied to construction). Continuous improvement is adopted, and subsequent batches are planned in cyclical schedules. Tech giants like Google and Facebook have adopted Agile methodologies for many of their projects, allowing for rapid iteration and improvement based on user feedback.

Agile methodology is more collaborative and customer-focused. Oftentimes, customers have the opportunity to offer their feedback through the software development process (e.g., beta releases). Through this approach, developers can improve the overall functionality of the software for the target end user and establish a 1-1 relationship based in trust and mutual respect. It also offers a fixed, predictable schedule and delivery, improved quality for customers through their hands-on participation, as well as adaptability through change.

Advertisement
[widget id=”custom_html-68″]

From One-Off Projects to Finished Goods through Industrialized Construction

Industrialized construction (IC) refers to “the process through which construction aims to improve productivity through increased mechanization and automation,” similar to how Ford’s early assembly line offered the mechanized approach necessary to meet the demands of customers for the Model-T while ensuring product consistency and quality through mechanized orchestration.

The mention of Ford’s Model-T isn’t merely a nostalgic nod to the past but a pivotal example of industrial transformation. In the early 20th century, the automobile industry faced challenges similar to today’s construction sector: Inefficiencies, inconsistencies, and a demand that outpaced supply. Ford’s introduction of the assembly line for the Model-T revolutionized production, offering a standardized, efficient, and scalable solution.

At a high-level, industrialized construction as a concept moves beyond approaching each build as one-off projects. Instead, practitioners apply a foundational framework where building deliverables are treated as building products and the same attention to build quality, customer satisfaction, and continuous improvement seen from manufacturers of marketable finished goods (e.g., automobiles, electronic devices, perishable goods, etc.) is applied to construction. A real-world example can be seen in the rise of prefabricated homes, which are built in factories and then assembled onsite, ensuring consistent quality and faster construction times.

The traditional approach to construction, as we highlighted earlier, comes with its set of challenges. For instance, 45% of all construction projects face disruptions due to inclement weather. A staggering 93% of construction firms grapple with material shortages. Furthermore, the limited access to skilled workers, a point we touched upon earlier, restricts the efficiency of an onsite workforce, especially under tight deadlines. This can jeopardize schedules, budgets, and even the quality of work.

For instance, the construction of the Berlin Brandenburg Airport faced numerous delays due to planning and execution challenges, showcasing the need for a more streamlined approach.

The transition towards Industrialized Construction isn’t just a theoretical proposition; it has tangible, real-world implications that can redefine the construction landscape. For starters, IC can lead to significant cost savings. By shifting much of the construction process to controlled environments, we can mitigate the risks and uncertainties of on-site construction, from weather disruptions to labor shortages. This not only ensures projects stay on budget but also can lead to faster completion times. For example, the Broad Sustainable Building company in China constructed a 57-story skyscraper in just 19 days using prefabricated modules, showcasing the potential of IC.

Industrialized construction, meanwhile, looks to improve quality by affecting factors within a business’s control:

Third-party prefabrication and offsite construction partners or building out your own infrastructure to support offsite preassembly can improve schedule certainty by 90%, while cutting down on construction costs by 10% and improving quality by mechanizing the preassembly process in a temperature-controlled factory setting where stringent quality measures can be enforced.
Robotics and additive manufacturing technology to increase output, capabilities, and design freedom of human installers; smart tools and IoT solutions in the hands of these installers, meanwhile, can further assist in performing installations more safely with reporting/quality verifiability. For instance, the use of drones in construction sites for surveying and monitoring has become increasingly common, providing real-time data and insights.
Building information modeling (BIM) can help construction professionals and stakeholders (e.g., customers, inspectors) collaborate virtually, envisioning finished products in their natural environment while improving the 1-1 relationship and trust through construction projects similar to how earlier discussed software teams run beta tests. The construction of the Shanghai Tower, for example, heavily relied on BIM for its design and execution.
A wealth of data via digital twins (e.g., real-time inventory data, predictive analytics, data synchronization to remove information silos, etc.) can help professionals manage projects with more certainty and deliver data-driven insights to drive proactive decision-making and quality.

In the broader discourse on project management methodologies, Antonio Nieto-Rodriguez’s article, “It’s Time to End the Battle Between Waterfall and Agile,” offers a compelling perspective. Nieto-Rodriguez critiques the rigid dichotomy many project leaders maintain between Waterfall and Agile, suggesting that such binary thinking has fostered tribalism within the project community, stifling innovation and potential. This tribal mindset has even led entire organizations to “go agile,” often at the expense of sidelining the foundational principles of traditional methodologies that certain projects might still benefit from. The real-world implications of this divisive approach can result in tangible losses for organizations. Nieto-Rodriguez advocates for a more nuanced approach: hybrid project management methodologies. By merging the meticulous planning of Waterfall with the adaptability of Agile, these hybrid methods can address the shortcomings of a one-size-fits-all strategy. Such an approach not only bridges the divide between the two methodologies but also paves the way for more effective and innovative project outcomes.

Top of Form

Bottom of Form

Bottom Line

The construction industry and its fragmented ecosystem is in desperate need of industry-governing interoperability where critical project data is shared in real-time, enabling collaboration and a nimble building process adaptive to change.

As project managers in our industry look to the software industry for ways to improve quality, one conclusion they may come to is breaking away from the monolithic, waterfall delivery methods. Instead, they may implement an agile framework and industrialization of processes that facilitate the same increased output and uncompromised product quality that allowed the iconic Model-T to roll off the production line and meet customer demands.

About Authors

Jason Braun is the author of Designing Context-Rich Learning by Extending Reality and an educator with over a decade of producing, delivering, and promoting critically acclaimed multimedia learning experiences. Recognized for collaborating effectively with programmers to create educational software featured in The Chronicle of Higher Education and with subject matter experts like New York Times best-selling authors and FBI cybersecurity agents.