Early identification of changes and conflicts is the first key to success. The capability to identify changes and conflicts early in the process is a combination of organizational structure, systems, management, training, and coaching.
For contractors to manage changes effectively, they must understand the entire change management workflow up through the project owner’s approval and payment process.
Construction is a cash-intensive business and change orders are often one of the root causes of poor cash flow. A 30-day improvement to change management workflow can generate over $400K in additional cash flow for a $50M contractor.
The business of construction is both challenging and exciting, with days full of risks and rewards. Jack Stack calls it “The Great Game of Business,” where he describes how to create a culture of ownership.
This outcome-based scoreboard keeps everyone focused on what matters. Avoid metric overload and diffusion of resources. All other metrics throughout all levels of the organization fall into a hierarchy below these with priorities changing over time.