Building The Organisation Systems Around Customers Need
It was so interesting to listen and read the in the different media the details of the PwC’s 19th Annual Global CEO Survey in Davos.
What attracting me more in the survey was a point which I was advocating for long time which is organization transformation to use the latest technology related to how we do business.
The survey showed that 90% of CEOs surveyed are trying to use latest technologies and inventions. However, they are being challenged to align all parts of their operating model behind customer strategies.
In the field of engineering & construction, the challenge of aligning all parties is so complex, it needs advanced system and skilled to coordinate it and to manage it. It adds another complexity to the project delivery process.
The usual parties are divided into two sections. Management level and delivery level. The management level is effecting the projects decision making. They are usually (client, project managers, consultants, designers, services providers, government agencies, contractors, subcontractors, suppliers and stakeholders). The delivery level is responsible to deliver the decisions like the teams and resources who are delivering the projects. Now imagine all these parties working together while you delivering projects and also going through organization transformation. the challenges become more to manage without good systems and leadership.
The challenge of having one dynamic system of the business model is known for all CEOs. It is a dream for a lot of them to have it. I was always advising to use a technology which close more to customers. In our case in engineering & construction, most clients using Oracle Primavera as a tool to plan, monitor and manage their project delivery. Therefore, trying to convince the clients to use something else is just not worth it because the nature of project delivery which always fast, urgent and deliver now.
I understand that companies would love to have their own systems implemented and adopted by the client. However, it would cost more to link and transfer it to customer’s forms. It would cause losing the competitive edge to others who have the same system as the client.
Using Oracle Primavera is known to many as a project planning tool only. Many also doesn’t know that there are many products within Primavera P6 Enterprise Portfolio Project Management package which allow them to have full system (time, cost, resource, documentation, reporting … etc) in place to run a smooth business model for engineering & construction which is similar to what most clients and professional use in projects.
The CEOs’ survey mentioned that they want to build their systems based on the customer needs and strategies. However, governments and big developers are still far from buildings their system too. They are requested to use a live and transparent portfolio system (or similar) to prioritize their limited budget for their big demands for project delivery considering the market changes. The continues market change disturb the private sector investment and commitment to improve their systems.
In my research about Contractors Bidding Decision Making Analysis; I found that very limited advanced governments started to put online their planned projects for project delivery from pre-bidding stage. Some of them start somehow an online system however, it is still missing the time delivery transparency and commitment from one side and the live link to their customers (consultants, contractors, supplier…etc) from another side. Having this live link with the current technologies becomes possible and it will benefit everyone tremendously.
The CEOs’ survey showed that the top management on top company are aware about the challenge of having such systems. However, they are challenged more with delivering good profit because organization transformation would slow them down. In this point, 76% of the CEOs requested to define business success by more than financial profit. To cover this point, I would suggest of adopting a business success indicator like building a sustainable business within all market changes conditions and business sector success. This can be easily measured through the portfolio system analysis.
In conclusion, the organization which implement faster their systems linked to the client needs and strategies would achieve their goals on the short term and long term. However, the others who are reluctant to do so will face more difficulties and the challenges becomes more and more especially in such markets changes and challenges.
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