5 Myths About IPD and Lean - Renee Cheng
Summary
TLDRThe video script dispels common myths about Integrated Project Delivery (IPD) and Lean construction methods, emphasizing that success is not solely dependent on having an 'A-team.' It highlights the value of an IPD contract in fostering team building and positive behavior, contrary to the belief that it's too complicated. The script also clarifies misconceptions about the applicability of IPD to small projects and the potential for higher profits. It concludes by stressing the importance of a lean culture and engagement for improved project outcomes, encouraging the audience to explore further resources.
Takeaways
- 💡 There are many misperceptions about IPD and lean due to early projects not being typical examples.
- 📊 Five myths regarding IPD and lean need to be reconsidered based on more recent project experiences.
- 🏅 The myth that an 'A-team' is required for success is debunked; positive behavior can be fostered with proper team dynamics.
- 📝 IPD contracts are not overly complicated, and the time spent developing them is valuable for team building.
- 🔧 Lean tools are flexible and can be adapted to various team needs, contrary to the belief they are rigid.
- 🏥 IPD and lean are effective not only for large, complex healthcare projects but can also benefit smaller projects if scaled appropriately.
- 💼 Owners can still get good value from IPD projects without seeking bids, and teams can make significant profits.
- 📈 Some teams report earning 20-30% more under IPD compared to non-IPD projects, though results vary.
- 👥 Teams with 'skin in the game' behave more collaboratively and productively, leading to better project outcomes.
- 🚀 A lean culture with targeted strategies and tools can significantly improve project results and stakeholder satisfaction.
Q & A
What are the common misperceptions about Integrated Project Delivery (IPD) and Lean construction?
-Misperceptions include the idea that having an A-team makes the delivery method irrelevant, that IPD contracts are too complicated, Lean tools are rigid, IPD is only suitable for large complex projects, and that the value to owners and team profits are uncertain. The script also challenges the belief that IPD and Lean are essentially the same.
Why is it a myth that an A-team makes the delivery method irrelevant?
-The script suggests that by focusing on the risk-reward pool, mentoring, and setting a culture of accountability, positive behavior can be fostered and built within the team, regardless of the initial quality of team members.
What is the myth about IPD contracts being too complicated?
-The myth is that the time and effort spent developing IPD contracts are not worth it. However, the script argues that the time invested is valuable and serves as team-building time, offering a significant return on investment.
How is the application of Lean tools and processes described in the script?
-The script finds that the application of Lean tools and processes is more flexible than commonly believed, with teams varying in how they use these tools and the terms of IPD.
What is the myth about IPD being only suitable for large complex healthcare projects?
-The script dispels the myth by stating that there is no evidence small projects cannot benefit from IPD, although they may need to be scaled appropriately.
How does the script address the confusion around the value to owners in IPD projects?
-The script notes that while owners are not seeking bids, they still expect to receive value. It reports that 100% of owners met or exceeded their expectations, suggesting that they are indeed getting value.
What is the confusion regarding the team's profit in IPD projects?
-The script addresses the concern that with the IPD contract putting profit at risk, it's unclear if the team is getting paid back. It mentions that some reports indicate teams making more profit than in non-IPD projects.
What is the myth about IPD and Lean being essentially the same?
-The script challenges this belief by highlighting that behaviors within teams that have 'skin in the game' and are part of the signatory pool are strikingly different and more collaborative compared to those outside.
How does the script describe the difference in behavior between teams with and without 'skin in the game'?
-Teams with 'skin in the game' are described as behaving more collaboratively, being more willing to trade scope, call out unproductive behavior, and reporting more enjoyment and positive experiences.
What is the conclusion of the script regarding the impact of a Lean culture and strategies on project outcomes?
-The script concludes that a Lean culture, along with strategies and tools, can significantly impact project outcomes and that purposeful investment in engaging and training a team can improve business outcomes for all stakeholders.
What resources does the script suggest for those interested in learning more about Lean construction?
-The script suggests visiting 'leanconstruction.org' for more research and tools or seeking out a local community of practice for assistance in one's Lean journey.
Outlines
📚 Debunking IPD and Lean Myths
This paragraph addresses common misconceptions about Integrated Project Delivery (IPD) and Lean construction methods. It emphasizes that having an 'A-team' is not the only factor for project success, as the delivery method and contract can significantly influence team behavior and outcomes. The speaker highlights the importance of team building, risk-reward sharing, mentoring, and accountability. The paragraph also dispels myths about the complexity of IPD contracts and the rigidity of Lean tools, showing that they are more flexible and rewarding than commonly believed.
Mindmap
Keywords
💡IPD (Integrated Project Delivery)
💡Myth
💡A-Team
💡Risk-Reward Pool
💡Accountability
💡Lean Construction
💡IPD Contracts
💡Team Building
💡Collocation
💡Validation
💡Profit
💡Signatory Pool
Highlights
There are many misperceptions about IPD and lean due to their early stages of adoption.
Initial projects may not represent the typical IPD and lean experiences, leading to myths.
Myth: You need an 'A-team' for IPD and lean to be successful.
Studies show that fostering positive behavior and team building can lead to success, regardless of having top-tier players.
Attention to team composition, mentoring, and accountability is crucial for success in IPD and lean projects.
Myth: IPD contracts are too complicated and not worth the effort.
The time spent developing IPD contracts and lean tools is valuable for team building.
IPD and lean tools are more flexible than people think, and teams apply them in varied ways.
Myth: IPD is only suitable for large, complex healthcare projects.
Evidence shows small projects can also benefit from IPD, though they need to be scaled appropriately.
New teams to IPD can be equally successful as experienced ones.
Myth: Owners do not get the best value without seeking bids.
IPD projects show varied cost and schedule results, with some exceeding targets and others not.
Teams in IPD projects report making 20-30% more profit compared to non-IPD projects.
Teams with 'skin in the game' show more collaborative behavior and higher engagement.
A lean culture significantly impacts project outcomes and promotes positive behaviors.
Investing in team engagement and training improves business outcomes for all stakeholders.
IPD and lean are about more than signing contracts; active participation and commitment are essential.
For more information and tools on lean construction, visit leanconstruction.org.
Transcripts
[Music]
there's a lot of misperceptions right
now about IPD and lien partly because
we're just a little further in the
adoption curve and so in both cases
there earlier projects are not exactly
the archetypical projects and that but
those tend to be the ones that people
remember so when we think about the
myths associated with both IPD and lien
what we and for this presentation have
highlighted five myths that we think
really need a closer look now that we've
seen more projects so the first one that
I'll talk about is the idea that you
have to have an a-team and if you have
an a team of players then the delivery
method doesn't really matter the
contract method doesn't really matter
when in fact what we're finding through
these studies is that you can actually
foster positive behavior and build the
team and I think this is really
encouraging because it's hard to say
that you're going to have the very top
quality people on every project on every
case but you can actually build this
behavior by attention to how many people
are going to be in that risk reward pool
how you're mentoring those people how
you're bringing them on and then also
the clarity around who's not performing
to the culture that of accountability
that you're setting up how do you get
them off we also have a myth about IPD
contracts being too complicated that
they're not worth it for the amount of
effort that they that you spend
developing them and that lean tools are
very rigid and there you have to do all
this training to follow them in exactly
the right way we're finding it's a lot
more flexible than people think first of
all the investment of time to develop an
IPD contract or to work through lien and
decide which tools are going to be the
most effective for your team is really
valuable time and that is actually team
building time and so to think that it's
just too much time and it's not worth it
there's a huge return on that investment
what we're also finding is that the
teams are quite varied and how they're
actually applying the lean tools and
processes and how they're using
particular terms of the IPD as well as
in how they use their collocation how
they use validation so there is variety
there's no rigidity about this the next
myth that we talked about is about IBD
really being large complex health care
and there's no evidence that small
projects can't
we benefit they do have to be scaled and
so we need to know more about that but
it's it's pretty much clear that you can
have a team that's brand-new to APD that
can be equally successful as to one that
is 50 percent or more experienced so the
idea that it's only really good for IP
and lean if you have large complex
projects is really not true the other
thing we see a lot of confusion around
is the value to the owners because
they're not seeking bid so they're not
going out to the market are they really
getting the best value the other thing
we see a confusion around is is the team
making a profit because the way the IPD
contract puts their profit at risk are
they actually getting paid back and it's
a little bit hard to say the pure
results from this because what we
actually are finding is things about the
value for the owner when you think about
cost and schedule some of that depends
on how well they set those costs and
schedule targets in these projects we
did find a hundred percent of the owners
were met or exceeded their expectations
but in actuality if you looks not all
the project teams were under the target
some of them were just a bit over and a
number of them were under same with
budget that one was over and others were
at and then somewhere under when you
look at the teams again the picture
around money is a little bit hard to say
we are seeing some reports where people
are saying they're making 20 to 30% more
than what they would make under non IPD
projects but I do think that you're
generally seeing the team collectively
with the owner determined at target cost
and then in the end they did drive the
original allowable cost way below market
and then their profit was distributed
the last myth is really one that
personally for me I really was in the
the camp of saying that IBD and IP
divided are essentially the same when in
fact now we're really finding that there
is a difference that the behaviors are
pretty strikingly different with those
that don't have skin in the game and
when they're not part of the signatory
pool or they're outside the bubble list
we might call it they do behave
differently and then those that are
within the signatory pool also behave
much more collaboratively there's a lot
more fluidity and how they're willing to
trade scope and they're much more
willing to call out behavior
it's not productive and they are also
reporting a lot more fun and enjoyment a
lot more time being spent on positive
things as opposed to negative things or
conflict and just how they're
distributing the their responsibilities
is very positive and collaborative so I
do think that it's more than just
signing charters but actually having the
skin in the game is important this
research makes it clear that a lean
culture along with strategies and tools
can significantly impact project
outcomes purposeful investment to engage
and train a team and some are many of
these practices will improve the
business outcomes for all stakeholders
don't let a specific contract or
practice stand in your way there's a lot
to learn why not get started today
for more on LCI research and tools to
assist you in your lean journey go to
lean construction org or seek out your
local community of practice
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