The Challenge Series – Decision Making with Ian Parr

The Challenge Series - Decision Making with Ian Parr

Construction projects are usually developed in support of the core business of the Owner, who funds the project. This rule always applies whether it be a public sector Client building a new Village Hall or a for-profit enterprise developing a new office building. Since the return on investment is measured in terms of how it best enhances the Owner’s core business, the Owner’s Value judgments (decisions) ultimately define a project’s success. A public facility may be judged on how it serves a community over thirty years whilst a new warehouse may be judged on building as much space as possible for the lowest cost. Because the values of each Owner are unique ultimate decision-making authority must rest with the Owner. Throughout the project development process, different individuals with different interests and accountabilities make decisions. These secondary decision makers must be controlled to ensure compliance with the Owners overarching values to optimize value and return on Investment to the core business.

Clearly the decision-making process must be disciplined with appropriate levels of authority and clear accountabilities. The buzzword of decision-making is “informed” too often Owners are promised the ability to make informed decisions only to find themselves with a gun to their head and no good solutions.

There are several things an Owner can do to avoid being forced into poor decisions.

  1. Nominate the person to make a final decision in the event of differing opinions and interests
  2. Establish internal levels and the field of authority among stakeholders.
  3. Ensure that decision makers at every level are qualified in their area of authority. – Competence trumps seniority here
  4. Ensure that all decision makers understand the overarching values driving the project. Strategic trumps subjective here.
  5. Make big decisions as early as possible preferably during early project definition when most options are available.

If necessary for large, expensive, high-risk, and high-impact issues, bring in any necessary specialist expertise as soon as possible. Too often during early planning, Owners and or well-intentioned advisors wing it rather than involve the additional cost of another expert. This truly is penny-wise and pound-foolish. If the expert finds a major problem, it will be easier and cheaper to solve in the early stages than halfway through design or worse during construction. If the expert solves the issue, then you have only spent money you would pay later anyway, with the benefit of being able to move forward confidently from the beginning

As soon as an issue is identified assign resolution to the appropriate Party(ies) with a deadline for resolution.

  1. Track all outstanding issues needing decision from Owner
  2. Monitor progress toward resolution
  3. Ensure that Owners’ decision makers have all information from all involved members of the project team with which to make a decision. This requires the Owner to have control of project-wide communication with the project team.
  4. Owner Contracts must reinforce the project teams’ collective and individual responsibility to fully inform the Owner as soon as possible of any threats to project goals, outcomes and success.
  5. Owner contracts must clarify a minimum time for Owner decisions and Approvals.

Once an issue requiring decision is identified it is entered into the system, accountability and due date assigned. Status of resolution is tracked and updated on project dashboard 24/7. The system automatically sends reminders to accountable parties of approaching due date. Overdue issues are flagged. All communication is held within the Tenzing One system and can be accessed by task or issue so that decision makers can quickly access all relevant data.

Decision makers’ time is valuable, so ease of adoption and use is a key feature of the Tenzing One system. Project managers report time savings overall in the range of 15_25 % utilizing Tenzing. Not only do they save time, they do a better job because they are better organized and can stay better informed, utilizing the processes embedded in the Tenzing One system, ensuring truly INFORMED DECISION MAKING.

Reach out to info@tenzingone.com to learn more.