Building The Organisation Systems Around Customers Need
Organizational Transformation: Aligning with Client Needs for E&C Success
Leveraging technology and client-centric strategies in the Engineering & Construction sector.
The Digital Imperative: CEOs Embrace Technology
It was fascinating to follow the details of PwC’s 19th Annual Global CEO Survey in Davos across various media. What particularly resonated with me was a point I’ve long advocated: the necessity of organizational transformation to embrace the latest technologies in how we conduct business.
The survey revealed that 90% of surveyed CEOs are actively trying to leverage the latest technologies and innovations. However, they face a significant challenge in aligning all parts of their operating model with customer strategies.
Navigating Complexity: The Multi-Party Challenge in E&C
In the field of engineering and construction, the challenge of aligning all parties is exceptionally complex. It requires advanced systems and skilled coordination to manage effectively, adding another layer of complexity to the project delivery process.
The typical parties involved are divided into two main sections:
- Management Level: These parties influence project decision-making and typically include clients, project managers, consultants, designers, service providers, government agencies, contractors, subcontractors, suppliers, and other stakeholders.
- Delivery Level: These are the teams and resources responsible for executing the decisions and delivering the projects.
Now, imagine all these parties working together while simultaneously undergoing organizational transformation. The challenges become even greater without robust systems and strong leadership.
The Quest for a Dynamic System & Customer-Centric Technology
The challenge of having one dynamic business model system is well-known to all CEOs; it’s a dream for many. I have always advised using technology that is closely aligned with customer needs. In our case, in engineering and construction, most clients utilize Oracle Primavera as a primary tool for planning, monitoring, and managing their project delivery. Therefore, trying to convince clients to adopt alternative systems is often not worthwhile, given the fast-paced, urgent, and immediate nature of project delivery.
While companies might prefer their own systems, linking and transferring data to customer-specific formats would incur additional costs and risk losing a competitive edge to others who already use the same system as the client.
Unlocking the Full Potential of Primavera P6 EPPM
Many perceive Oracle Primavera as merely a project planning tool. However, what often goes unrecognized is that the Primavera P6 Enterprise Project Portfolio Management (EPPM) package offers a comprehensive suite of products. This allows organizations to establish a full system for managing time, cost, resources, documentation, reporting, and more. This robust capability enables a smooth business model for engineering and construction, mirroring the systems used by most clients and professionals in projects.
Integrated Time Management
Comprehensive tools for detailed scheduling and progress tracking.
Robust Cost Control
Features for budgeting, cost tracking, and financial forecasting.
Efficient Resource Management
Tools to allocate, track, and optimize human and material resources.
Centralized Documentation
A single platform for managing all project-related documents and communications.
Advanced Reporting & Analytics
Generate comprehensive reports and dashboards for real-time insights.
Bridging the Transparency Gap in Public Sector Projects
The CEOs’ survey highlighted their desire to build systems based on customer needs and strategies. However, governments and large developers are still lagging in developing their own comprehensive systems. They are increasingly being asked to use live and transparent portfolio systems (or similar) to prioritize their limited budgets for vast project demands, especially given fluctuating market conditions. Continuous market changes disrupt private sector investment and commitment to improving their systems.
In my research on Contractor Bidding Decision Making Analysis, I found that very few advanced governments have begun to publish their planned projects online from the pre-bidding stage. Some have implemented partial online systems, but these often lack transparency regarding time delivery commitments and a live link to their customers (consultants, contractors, suppliers, etc.). With current technologies, establishing this live link is entirely possible and would tremendously benefit everyone involved.
Redefining Success: Beyond Financial Profit
The CEOs’ survey indicated that top management in leading companies are aware of the challenges associated with implementing such systems. However, they are more concerned with delivering good profit, as organizational transformation can slow them down. On this point, 76% of CEOs requested that business success be defined by more than just financial profit.
To address this, I suggest adopting a business success indicator that focuses on building a sustainable business resilient to all market changes and sector fluctuations. This can be easily measured through portfolio system analysis.
Act Now: Integrate for Future Success
In conclusion, organizations that swiftly implement systems linked to client needs and strategies will achieve their short-term and long-term goals. Conversely, those reluctant to do so will face increasing difficulties and challenges, especially in today’s dynamic market conditions.
Best wishes for you all
Ziad Albasir