Case Study

Reducing Cost Through Employee Focus

 

Situation

This $69MM brown-field project faced a sure future of cost and schedule overruns. The traditional interface issues between engineering and construction heightened the risk. The Engineering and Construction contractor could see no possibility of a winning outcome for itself or for the relationship with the client.

 

Opportunity

Assure constructability through increasing coordination between Engineering and Construction, aggressively managing the interfaces and handoffs.

 

Solution

First: establish effective linkages between engineering, procurement and construction. Next, put a highly visible HUMANEERED accountability system into place, with both positive and negative consequences.

 

Action

The initial assessment of the attitudes and perceptions of all stakeholders highlighted a big need for mutual respect as the foundation for developing well-honed teamwork. With this objective in mind, HUMANEERING worked with the contractor to put a program of continuous communication and coordination into place. This program created visibility for the new HUMANEERED accountability system, which brought project goals -- and a reason to care about achieving those goals -- clearly into focus for every employee.

 

Results: Impressive!

With Construction's input, Engineering created more efficient, more easily constructed designs which reduced potential cost and schedule impacts. Almost immediately, Engineering took out $3.5MM in construction costs. Construction followed through with great personal care and thoughtfulness in execution of the work.

 
A sample of employee activities that drove these results

  1. Engineering: Employees identified a less expensive routing for the railroad spur that delivered raw materials.

  2. Construction: The tool room attendant worked with project management to create processes that allowed her to take on additional work outside the tool room. ("I don't need to sit on my hands all day. Order the tools you need by 10:00. After that, I'm out there working with you.")

  3. Construction: Employees took personal responsibility for the quality of their work. For example, care in placing anchor bolts for steel posts led a sub-contractor to exclaim, "First time I can remember ever setting down that many posts without a problem with at least 1 or 2 of them!"


How Can HUMANEERING Help You?

HUMANEERING is committed to growing your financial success through your people. Services include...

  • Opportunity definition through assessment (organization/project, group/team and individual)
  • Motivation (focus and engagement; gainsharing-based incentive design and administration)
  • Outcome-focused consulting

Our processes deliver such consistent results* that we guarantee your financial outcomes.

*For example, research shows that non-HUMANEERED incentive plans are successful only about two-thirds of the time. [Mulvey, P.W. & Ledford, G. E., Jr. (2002). Implementing Rewards Systems. In J. Hedge and E. Pulakos, Implementing Organizational Interventions: Steps, Processes, And Best Practices. San Francisco: Jossey-Bass Publications, 133-166.]

HUMANEERING® works consistently -- we guarantee it!


Next Steps

To find out how HUMANEERING can help your company become even more financially successful, call us at (864) 271-1630 x200.

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