5 Myths About IPD and Lean - Renee Cheng

Summary

The 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.