Breaking Down Silos - SimplarBreaking Down Silos Between Procurement and Facility Management Using...
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Breaking Down Silos Between Procurement and Facility Management Using Performance Measurements
Ian WagschalDirector of Facilities Management
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Halifax, Nova Scotia
Tony Webster, Ben MacLeod, Citobun, WayeMason, Bobjagendorf, بدر السنيد2
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Dalhousie University
• 18,200 Students
• 1,000 Faculty
• 2,100 Staff
• Annual Operating Budget $400M
• Ranked 12th in Canada, 283rd in World
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Dalhousie Facilities Management
• 5.8M square feet in165 Buildings
• $65M Annual Budget
• Facilities Condition Index of 22% (Poor)
• ~$360M in deferred maintenance
• 550 Facilities Management Employees
• 50% Custodians
• 35% Trades
• 15% Admin / Management
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Dalhousie Procurement
• >$100M across about 200 tenders annually
• Staff of 14
• 60% Facilities Management
Dalhousie Legal Counsel
• Internal Legal Team of about 5 Barristers
• External support from local law firms
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This Photo by Unknown Author is licensed under CC BY-NC-ND
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Webinar Outcomes
1. Understand how to find a common purpose in times
of struggle to create stronger relationships
between institutional departments.
2. Understand Expert Driven Project Delivery (XPD)
3. Understand the role of risk in generating enterprise
metrics.
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This Photo by Unknown Author is licensed under CC BY-NC-ND
Facilities Procurement Legal
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Silos and Conflict
ROBB SCOTT / Twitter
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Common Interest
+
= Change
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Department B
Department A
Department C
Measurement Planning Expertise
Normal Strategic Planning and Execution
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When project risk looks like this:
Everyone can stay comfortable in their silos.Everyone feels like they are in control.
Project ManagerProcurementLegal
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Sooner or later your risk on a project looks like this…
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What we learned (the hard way)
We are a part of the problem.
We wanted to change.
Common Interest+
= Change
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Best Value Procurement orXPD - Expert Driven Project Delivery
XPD is a Management Tool
• Tool which increases opportunity to partner with experts
• Enables experts to take control and accountability
• Allows experts to maximize efficiency
• Increase efficiency results in higher performance
• Projects finished ahead of schedule
• Projects finished without cost increases
• Projects finished with higher customer satisfaction
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Experts:
• Experts see their work as valuable,
and are not attracted to cutting
corners or poor end-products.
• Experts own their work, and will seek
arrangements that provide them the
freedom to succeed.
• Experts know their work, manage risk
well, and despise being micro-
managed.
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Procurement
• Award to lowest compliant bidder.
• Assumption: Vendor will do exactly what we tell them to do, at the lowest cost.
• Outcome: Vendor is rewarded for cutting corners and profits on our errors.
• Experts see their work as valuable, and are not attracted to cutting corners or poor end-products.
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• Contract written by ourselves.
• Assumption: Contract will give us control over the vendor’s activities.
• Outcome: Vendor sees the contract as one-sided and possibly hostile. They are disempowered, and do not take ownership of the work. When risks materialize, this setup discourages collaboration.
• Experts own their work, and will seek arrangements that provide them the freedom to succeed.
Legal
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Project Management
• Project Manager directs the work.
• Assumption: The Project Manager must control the vendor at all times.
• Outcome: The Project Manager must micro-manage to be successful, and thereby assumes more risk.
• Experts know their work, manage risk well, and despise being micro-managed.
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Experts:
• Experts see their work as valuable,
and are not attracted to cutting
corners or poor end-products.
• Experts own their work, and will seek
arrangements that provide them the
freedom to succeed.
• Experts know their work, manage risk
well, and despise being micro-
managed.
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Results Before Expert Based Project Delivery:
Kitchen Project
• Change order rate of 14%+
• Although functionally complete in time for September, substantially
completion certificate was issued in December.
• Three separate liens were contemplated (none perfected).
• Hidden financial and human cost of time lost. Losses accumulate against
this project, and also against other concurrent and future projects.
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Measurement
ExpertisePlanning
“Best Value”
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The Journey
ExpertisePlanningMeasurement
Measurement Planning Expertise
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Best Value Procurement orXPD - Expert Driven Project Delivery
XPD is a Management Tool
• Tool which increases opportunity to partner with experts
• Enables experts to take control and accountability
• Allows experts to maximize efficiency
• Increase efficiency results in higher performance
• Projects finished ahead of schedule
• Projects finished without cost increases
• Projects finished with higher customer satisfaction
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Outcomes from XPD
• 13 Minor Projects ($17.6M)
• 3.22% change order rate (gross dollars)
• Significant on-schedule (or earlier) completion
• (still working to make the metric reliable)
• 4 Major Capital Projects ($22M)
• 4.16% change order rate (gross dollars)
• 1.62% change order rate (per project)
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XPD in one sentence
Experts manage risk.
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ExpertisePlanningMeasurement
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Risk Planning Tool
ExpertisePlanningMeasurement
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Risk Planning Tool
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ExpertisePlanningMeasurement
What source of risk most impacts project COST?
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ExpertisePlanningMeasurement
What source of risk most impacts project SCHEDULE?
16%
5%
50%
29%
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ExpertisePlanningMeasurement
Student Retention
7%
12%
43%
27%
11%
IMPACT BY SOURCE OF RISK
Health and Safety
Accommodation
Quality ofProgrammingStudentExperienceCost
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ExpertisePlanningMeasurement
Annual Budgeting
23%
34%
5%
20%
13%
5%
IMPACT BY SOURCE OF RISK
Enrollment
Utilities
GovernementFundingExternalDonationsReturns onInvestmentsLabour Costs
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• LEGAL Experts: Use mutually beneficial agreements to create collaborative relationships.
• PROCUREMENT Experts: Use logical deduction to remove the risk of bias.
• PROJECT MANAGEMENT Experts: Organize other experts so they can mitigate risk and create value.
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1. Understand how to find a common purpose in times of struggle to create stronger relationships between institutional departments.
Common Interest+
= Change
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XPD – Expert Driven Project Delivery
ExpertisePlanningMeasurement
Measurement Planning Expertise
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2. Understand Expert Driven Project Delivery (XPD)
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ExpertisePlanningMeasurement
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3. Understand the role of risk in generating enterprise
metrics.
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Webinar Outcomes
1. Understand how to find a common purpose in times
of struggle to create stronger relationships
between institutional departments.
2. Understand Expert Driven Project Delivery (XPD)
3. Understand the role of risk in generating enterprise
metrics.
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