One of the more provocative lean construction principles is make decisions (commit) at the last responsible moment. Our habit which is reinforced by project software is to go for the early start. That habit inevitably gets us into trouble. One reader proposes a practice that helps you follow the lean construction principle.

The Project Reformer's e-Tip of the Week

033: Contract Only for that which You Understand

This tip derives from a lean principle commit at the last responsible moment. A reader from South Africa sees this as sound advice, but argues it can result in much effort managing expectations. He suggests that we contract (promise) for only that which we understand. By breaking the project into a development phase and a performance phase you can develop an understanding of client wants and needs then make commitments based on that understanding. Here's their two-step contracting process: spend time with the client to understand his problem contract with the client to develop the plan conceptualize the solution develop a project plan (time & budget) contract with the client to implement implement the solution Results: We have far less pain around scope changes We have far less effort to manage expectations. These are clear. First contract: we'll tell you how and why. Second Contract: we'll implement. We have a better relationship with the client - he feels more in control. Projects run shorter. What we have done is buy some time for decent planning. During this time, we also do some testing and piloting. Free work you might suggest. But, it serves us well as we have all the answers when those creative scope change requests hit us on a Monday morning. The Project Leaders' Studio™ This week's Project e-Tip was proposed by Mike O'Callaghan of Engen Petroleum, Ltd.

©2004 Hal Macomber | weblog.halmacomber.com | e-Tip Archive | PDF | Submit Tip

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posted by Hal at 9:45 PM | link  |   |   | Google It!  | Email This  |

I had the opportunity today to observe a group of 20 superintendents and foremen plan the next six weeks of their project. They were working out how they would build the project. This contrasts with the way the project had been planned up to that point. Like most projects, a few smart experienced people work out a sequence of activities that others are to follow. This project, like many others, fell behind schedule and drifted over budget. Also, like many projects, the only thing to do was to ask the project team members what needed to be done.

Why do we think the head is smarter than the body? Why do we wait 'til a project is in trouble before asking the project performers what it is we should be doing?

Today's session was impressive. The superintendents and foremen worked their way through the schedule correcting sequences while identifying the work that can be done and culling that work that can't be done. After 2½ hours these people had a plan that they were committed to. And, unlike having "experts" plan the work, these superintendents and foremen got practice thinking through how they will build. That practice will be invaluable when the future turns out to be different from their expectations.

posted by Hal at 9:10 PM | link  |   |   | Google It!  | Email This  |

The Taiichi Ohno 7 wastes of production are a simple and elegant way to focus improvement actions in production process settings. The 7 wastes are taught to teams who use them as a way to observe, assess, and improve process to provide more value. The 7-item taxonomy has been so successful that it is one of the first aspects of lean thinking that is adopted.

Is the taxonomy complete? Many people think not. People have been tinkering with the taxonomy starting with the book Lean Thinking, by Jim Womack and Dan Jones, who proposed the eighth waste to be providing something that the customer doesn't value. Others followed suit making 7 other proposals that I could find.

Human potential is manifest in the actions taken with other humans.

One of the themes in the proposals for an eighth waste has to do with not making best use of the potential of people. Even Womack and Jones acknowledge the waste of that in the revised version of their book. While that is a legitimate concern, the waste of human potential doesn't fit with the materiel characteristics of the Ohno taxonomy. Look closely at the 7 wastes. All the wastes have to do with the transforming aspects in a process. Only two of the proposals fit with the taxonomy: providing something the customer doesn't value and making do. Next week I'll comment on Lauri Koskela's proposal for the eighth waste of making do.

Greg Howell and I set out to identify what we call the Two Great Wastes™ of human capital. We wanted something as simple and elegant as Ohno's taxonomy. We observed our clients. We went through our notebooks of observations and assessments of our client projects. We speculated with people doing lean initiatives. Finally, it hit us.

Human potential is manifest in the actions taken with other humans.

That waste happens principally in the conversations we have. Each of us brings value when we convey our skills, judgement, gifts, and possibilities. The failure of communication results in not accessing the human potential available. Communication takes both speaking and listening.

Two Great Wastes™:

Not Listening

Not Speaking

We need a story that is embraced and retold that champions the success of teams who operate in a setting of respect and dignity speaking freely while engaging in deep listening.

Not listening has been cited as the source of the tragedies of the NASA Mars Climatic Orbiter and the Columbia shuttle. Not listening results in resignation and resentment as people attempt to change a situation only to find no appreciation.

Not speaking deprives others of wisdom, perspective, and insight. Not speaking is culturally reinforced at young ages. We learn that speaking up can lead to punishment. We stifle ourselves out of fear.

Both not speaking and not listening become habits in our life and in organizations. That is the good news. The habit can be changed. The initiative for change can come from anyone taking an act of leadership.

Greg and I claim listening is the master skill of the leader. A corollary to that skill is creating the circumstances for others to speak. The only thing keeping us from bringing forth that leadership is the current story about the exercise of power and control on projects and in organizations. We must change our story of how we are most effective. We need a story that is embraced and retold that champions the success of teams who operate in a setting of respect and dignity speaking freely while engaging in deep listening. Let's battle the Two Great Wastes™.

posted by Hal at 9:28 PM | link  |   |   | Google It!  | Email This  |

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