Organizational Culture: AWP + Lean: Exploring Opportunities

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ADVANCED Lean

WORK PACKAGING Construction


Community for Institute
Business Advancement Transforming the Built Environment

AWP + Lean: Exploring Opportunities

Organizational Culture

Special Report 22-01b


CII Member Companies

Owners Contractors Service Providers


AdvanSix Alfred Miller Contracting Accenture
Air Products APTIM Autodesk, Inc.
Albemarle Corporation Baker Concrete Construction Inc. AVEVA Solutions Ltd.
Anheuser-Busch InB ev Barton Malow Company AWP University
Aramco Services Company Bechtel Group, Inc. Construct-X, LLC
Archer Daniels Midland Company Black & Veatch Continuum Advisory Group
Architect of the Capitol Blanchard Industrial, LLC Dassault Systèmes SE
Ascend Performance Materials Burns & McDonnell Deloitte
Cargill, Inc. Chiyoda Corporation DyCat Solutions
Chevron CRB Global Site Solutions
ConocoPhillips Day & Zimmermann Group ASI
Consolidated Edison Company of New York Dematic Hilti Corporation
Corning Inc. Emerson I.M.P.A.C.T.
Covestro LLC Exyte U.S. Inc. iConstruct
CSL Behring Faithful+Gould Insight-AWP Inc.
DTE Energy Fluor Corporation Kahua, Inc.
DuPont H+M Industrial EPC Kairos Power, LLC
Eastman Chemical Company Hargrove Engineers + Constructors O3 Solutions
Entergy Corporation Hatch Oracle USA, Inc.
ExxonMobil Corporation JGC Corporation Pathfinder, LLC
General Electric Company KBR PTAG, Inc.
GlaxoSmithKline Kiewit Corporation SkyCam Aviation, Inc.
INEOS Group Holdings S. A. Larsen & Toubro Limited T. A. Cook Consultants Inc.
Johnson & Johnson MasTec Power Corporation Trillium Advisory Group Ltd .
Koch Industries, Inc. Matrix Service Company Valency Inc.
Los Alamos National Laboratory McCarthy Building Companies, Inc. Verum Partners
LyondellBasell McDermott International, Inc.
Marathon Petroleum Corporation MODEC Inc.
Naval Facilities Engineering Command Orion Plant Service, Inc.
New York Power Authority PCL Constructors, Inc.
NOVA Chemicals Corporation PLH Group
Nuclear Decommissioning Authority POWER Engineers, Inc.
Nutrien Richard Industrial Group
Occidental Petroleum Corporation Samsung C&T
ONEOK, Inc. Techint Engineering & Construction
Ontario Power Generation Technip Energies
Petronas thyssenkrupp Industrial Solutions (USA), Inc.
Phillips 66 Toyo Engineering Corporation
Public Service Electric & Gas Company United Engineers &Constructors, Inc.
Reliance Industries Limited (RIL) Victaulic
SABIC - Saudi Basic Industries Corporation Wood
Sanofi Worley
Shell Zachry Group
Sila Nanotechnologies Inc.
Smithsonian Institution
Southern Company
TC Energy
Tennessee Valley Authority
The Dow Chemical Company
The Procter & Gamble Company
U.S. Army Corps of Engineers
U.S. Department of Commerce/NIST
U.S. Department of Energy
U.S. Department of State
U.S. General Services Administration
Woodside Energy Limited
Zachry Corporation
AWP + Lean: Exploring Opportunities

Organizational Culture

Working Group 22-01, AWP + Lean: Exploring Opportunities


CII Advanced Work Packaging Community for Business Advancement

Construction Industry Institute


Lean Construction Institute

Special Report 22-01b

December 2022

© 2022 Construction Industry Institute™

The University of Texas at Austin

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Definition of Organizational Culture
An organization’s culture is based on the shared attributes that contribute to its social and
psychological environment, such as the following:
• Beliefs • Systems • Norms • Experiences • Philosophy • Leadership styles
• Values • Symbols • Habits • Expectations • Ways of interacting • Written rules
• Vision • Language • Customs • Assumptions • Attitudes/moods • Unwritten rules

These shared attributes of an organization shape its employees’ perceptions, guide its
behaviors, and define its understanding as expressed in member self-image, inner workings,
and interactions with the outside world. The leaders of the organization establish these
attributes, and then communicate and reinforce them through various methods. Simply stated,
organizational culture is “the way things are done around here.”

AWP + Lean Organizational Culture


The Lean Construction Institute (LCI) defines Lean as a culture of respect and continuous
improvement aimed at creating more value for the customer while identifying and eliminating
waste. The Construction Industry Institute’s (CII’s) Advanced Work Packaging (AWP)
methodology also supports establishing such a beneficial organizational culture. Understanding
the profound importance of this shared culture to an organization requires attention, and
establishing this culture can be challenging for companies in their endeavors to implement
Lean and/or AWP.

Recent comparisons of Lean and AWP by Working Group 22-01 identified certain unique focus
areas of these two complimentary project approaches; however, their underlying cultural
emphases revealed a great deal of common thinking. Both approaches seek to improve
readiness and safe performance of work by instilling an enhanced, collaborative organizational
culture. To further optimize project delivery efficiency, an organization can apply certain tools,
processes, and rigor from each AWP and Lean (referred to as “AWP + Lean” in this report), but
beneath these specifics, the common organizational culture is essential to sustaining optimal
value from applying AWP, Lean, or AWP + Lean.

An ideal AWP + Lean organizational culture values achievement of project objectives by


embracing effective and efficient planning, waste elimination, constraint management,
information transparency, predictive execution, and continuous learning while embodying
beneficial team behaviors around respect, care, collaboration, commonality, commitment,
and confidence. This culture is established early and continues throughout the project life
cycle with a prevailing mindset and atmosphere of continuous improvement informed by

AWP + Lean: Exploring Opportunities – Organizational Culture 1


intentional feedback. Organizations that strive to successfully implement AWP + Lean in a
mature fashion year-after-year will learn to establish and favor individual project cultures that
are seamless with the organizational culture described in this report.

Lean culture has a history of promoting holistic and highly collaborative environments.
Organizations and project stakeholders focus on generating value for their customers to
meet “Conditions of Satisfaction” as a key success metric. Lean thinking is centered on the
broad application of “Respect for People” and optimizing project delivery. With this emphasis,
the Lean project approach gives team members a means to collaborate effectively, align to
an optimal scope and sequence of work, and make sound work assignments that are free of
constraints and performed at the right time for the project. By aligning to the set of customer
Conditions of Satisfaction and the means for delivery through the Last Planner System®, Lean
teams make collective decisions for the betterment of the project.

As with AWP, the Lean organization and operating system are intrinsically more collaborative
and relational than other traditional project approaches. A Lean operating system is described
as an organized implementation of Lean principles and tools combined to allow a team to
operate in unison to create flow. This includes decision-making tools for use in making earlier,
collaborative, better decisions as a distinguishing feature of Lean.

As an example of Lean practice, an effective Integrated Project Delivery (IPD) organization


cuts through commercial silo walls to focus on delivering value, rather than strictly looking to
complete contract scopes. Common elements of Lean and IPD implementation that support
organizational alignment with Lean culture include the following:
• A “Big Room” organizational concept built around developing a high degree of
collaborative behaviors
• A system of joint “work group teams” or “work clusters” arranged to guide the
direction of a project and more rapidly exploit opportunities or solve problems
• Training topics that draw heavily on social systems research to drive continuous
improvement and increase socialization of good ideas across stakeholders
• Contractors engaged in understanding the owner’s business case and supporting
the development of more optimal project delivery solutions

AWP, properly embedded in company systems and processes, positions projects for
agreement and alignment among stakeholders and purposeful planning via an emphasis
on systematic execution using manageable, “progressable” work packages. AWP project
roles and responsibilities connect personnel to ownership of tangible work package scopes
for disciplined completion. AWP projects demonstrate inclusiveness and care for the field
workforce by employing timely interactive planning with robust collaboration, establishing the

AWP + Lean: Exploring Opportunities – Organizational Culture 2


optimal “Path of Construction,” and managing Construction and Engineering Work Packages
(CWPs and EWPs), procurement, and the issuing of constraint-free Installation Work Packages
(IWPs). Individuals take responsibility for effectively identifying and removing constraints in
this culture of providing the right things to the right customers at the right time. This supports
safe, productive, predictive, and rewarding workface execution across the project team. The
prospect of issuing constraint-free IWPs offers an enhancement of the Lean Last Planner
process known as Make Work Ready.

With AWP, owner and contractor project team members experience valuable transparency
and effectual communication through planning, tracking, and reporting of real progress using
the common language, data, and flow of work packaging. Team members become motivated
to behave collectively in support of AWP program expectations, discovering commonality
which increases their desire to support fellow team members in creating synergistic, “win-win”
solutions. Team leaders ensure design engineering effectively incorporates “procurability,”
constructability, and execution efficiency into the design, as procurement and construction
representatives bring input and insight. Project personnel feel a sense of order, contribution,
respect, and reward that benefits the project, their home organizations, and themselves. These
cultural aspects of AWP help create organized office and field work environments that foster
sustainable positive team morale.

AWP culture promotes a mindset of inclusion, commitment, and confidence for accomplishing
project objectives, as the achievable, Path of Construction is jointly developed and aligned
across stakeholders. With this mindset in place, synergies in AWP training and coordination
among the owners, contractors, subcontractors, and suppliers are welcomed opportunities
to ensure all parties take advantage of applying the AWP fundamentals to support the overall
project and deliver best outcomes. Field personnel engage in AWP with the realization that
the broader team is doing the right planning to support safe and productive field work. As
AWP is applied well on a project, team members from office managers to field construction
workers sense a more positive energy and mood across the team and come away with a
sincere desire and expectation for implementing AWP on their future projects. When that
expectation is met, an AWP operational culture has been established, because that is “the
way things are done around here.”

Effective transformation from a current organizational culture to a more desired AWP + Lean
culture starts with the organization’s leadership establishing and fully communicating the vision
for driving toward a better AWP + Lean future state. Implementers of AWP + Lean promote
team leadership styles that are inclusive in encouraging and enabling all project participants
to identify and resolve issues to benefit the project. The company leaders can envision their
organization and projects operating more efficiently and less adversarially as individuals and

AWP + Lean: Exploring Opportunities – Organizational Culture 3


teams interact collaboratively and productively in AWP + Lean fashion. The desired, improved
culture is then established, sustained, and matured through purposeful and focused efforts
across foundational elements that include the following:
• Key stakeholders (owners, engineers, architects, contractors, trade partners,
suppliers, etc.) showing strong commitment to AWP + Lean.
• Training of company and project resources on understanding and implementing
AWP + Lean, particularly in how combining AWP and Lean can result in increased
flow efficiency that results from viewing projects as production systems.
• Embedding a persistent attitude of respecting people, valuing learning, and
incentivizing those that demonstrate consistent positive behaviors toward AWP +
Lean.
• Contract strategies and associated details incorporating clear expectations and
support for AWP + Lean.
• Fit-for-purpose AWP + Lean processes and procedures being embraced and
consistently utilized.
• Recognizing and publicizing AWP + Lean value to projects
• Investing appropriately in related time, effort, and resources.

Contributors and enablers for driving, managing, and maintaining culture change should
include “catalytic tools” that increase the speed of adoption. These tools supplement AWP
and Lean processes and procedures, including the following examples:
• Ongoing education and oversight programs that guide and support adherence of
individuals and teams to desired AWP + Lean processes and behaviors.
• Aligned commercial contracting structures that enable project supply chain
partners to achieve more optimized solutions by scoping work holistically, forming
high-performance teams, integrating work, collaborating more effectively, and
making collective decisions to benefit the project
• “Pull-based” operating systems that drive reliable performance as teams more
effectively plan work by respecting all “internal” customers, more reliably
committing to work that has been made ready, and increasing their capability to
execute work to agreed completion requirements.

Value-driven enterprises understand that attaining desirable cultural behaviors positively


affects people, process, and technology factors that lead to better project delivery experiences
and personal job satisfaction. Most individuals are generally aware of the current culture of
their organization and recognize its opportunities for positive change. The need for change
becomes obvious when individuals understand the implications of staying with the current

AWP + Lean: Exploring Opportunities – Organizational Culture 4


culture versus gaining value with a better AWP + Lean enabling culture. By leveraging AWP
and Lean elements and tools (such as the ones described in this Report), individual and team
learning experiences can be created so fellowships of like-minded individuals can grow,
prosper, and spread the AWP + Lean culture.

In summary, while both Lean and AWP have tools, processes, and rigor, their underlying culture
makes them most effective. Collaborative tools can help organizations to enable collaborative
culture, but focusing too narrowly on tools and process can cause them to miss an opportunity
to gain the optimal sustained value of AWP + Lean, which results from proper culture.

AWP + Lean: Exploring Opportunities – Organizational Culture 5


Principal and Contributing Authors

Peter Court, Integrated Project Delivery, LLP


Eric Crivella, Bentley Systems
Charlie Dunn, DPR Construction
** Fernando Espana, Construct-X
Dan Fauchier, The ReAlignment Group of California
John Fish, Ford, Bacon & Davis, Inc.
* Jamie Gerbrecht, ExxonMobil (Retired)
Nigel Harper, Integrated Project Delivery, LLP
Kristin Hill, Lean Construction Institute
David Kerr, Shell
Michael Kluck, KBR
Hala Nassereddine, University of Kentucky
William O’Brien, The University of Texas at Austin
Sean Pelligrino, Chevron (Retired)
Vishal Porwal, The University of Texas at Austin
Lloyd Rankin, Group ASI
Rebecca Snelling, RS Consulting
** John Strickland, Burns & McDonnell
Paras Trivedi, Dassault Systèmes SE
Robert Wible, CII

* Principal author
** Co-Chair, AWP + Lean Joint Working Group

Editor: Michael E. Burns


SR22-01b
AWP + Lean: Exploring Opportunities

Construction Industry Institute


The University of Texas at Austin
3925 W. Braker Lane (R4500)
Austin, Texas 78759-5316

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