Structuring for Success

Basic blocking and tackling. Many teams have top tier, talented players but if basic blocking and tackling are not executed well the talent does not matter. Winning results will certainly be jeopardized.

So it is with complex facility developments such as hospitals, research facilities or any facility type that involves complex building systems and multiple constituents with competing agendas. If the basic steps for structuring for success are not executed properly then successful outcomes will be challenged.

Let’s look at some examples. Perhaps the most common mistake is having an unrealistically low budget that is not aligned with the desired scope, site constraints, market conditions or other factors. Often project budgets are set in early planning phases without input from the right people. Design teams are commonly engaged to design a facility they simply can’t fit into the Owner’s budget. This results in lost time, frustration and unrealized expectations. Getting the team engaged early to confirm that the scope and budget are consistent with the Owner’s objectives is critically important.

Another common example is the overall governance structure for the project. Perhaps the Owner has not built a large project in years and the players have changed over time. No one has really thought through how it is going to work. Who really approves the budget? The CEO? The Board? Who approves the design -- building exterior, interior, finishes, etc.? How do you get the proper buy-in from the physicians, staff and facilities team? What is the process for handling scope changes?

A third common example is an accelerated schedule that does not allow for proper coordination and completion of design. This can increase the likelihood of errors and omissions resulting in numerous change orders and delays to the project schedule.

So how does one avoid these and other common pitfalls? It starts with taking the time to ask all the right questions up front. But, one needs to know what questions need to be asked. That is the tricky part. Examples could be:

• What are the real, specific goals for the project? How do we define success?

• How was the budget established and what assumptions were made?

• How do we align incentives to add value and minimize risk?

The next step is to establish the proper controls to support sound and efficient delivery of the project. Examples include procurement processes and form of contracts, cost control system development, team communication plan, decision making structure and even the plan for managing project contingencies.

By employing the effort, time and patience to set the project for success up front, the Owner will realize a sound facility investment that supports their business plan objectives.