how to use marginal gains to drive improvements in pre-construction

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How to leverage Marginal Gains & Big Data in Work Winning.

The digital evolution of Pre-Construction is happening right now!

These insights were informed by our own Bid Cost research with Reading University and recent industry research by McKinsey Global Institute.

Also additional concepts positioned by Matthew Syed in his book “Black Box Thinking”

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Marginal Gains

“The whole principle came from the idea that if you broke down everything you could think of that goes into riding a bike, and then improved it by 1%, you will get a significant increase when you put them all together”

- Sir David Brailsford

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The concept of ‘Marginal Gains’• improve each one to deliver a huge increase when

aggregated togetherBreaking down the bigger goal into

small steps

• finding out what is working and what doesn’t.Effectively marginal gains boils down to

• what works and what does notNeed to get a deep understanding of each steps performance

• the component parts you can rebuild with confidenceThis approach needs empirical evidence of performance

• provides the intellectual honesty to see where you are going wrong

Clear feedback is the cornerstone of improvement

• for each area so you and analyse the data and isolate the key metrics to improve

You need to record channels of performance

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Note the need for concurrent data analyse & monitoring • because you must have the right data at the right time to

deliver the right optimisation loopConcurrent data analyse and

monitoring

• between creativity and measurement operating together Success is a complex interplay

• so you can get things rightThis allows you to know where you are going wrong

• F1 teams see every failure as a marginal gain in disguiseNeeds an “allergic” attitude to failure to confront underperformance

• increasingly relevant in businessStanding still is tantamount to extinction in some sports

• to creative change in sport and in businessAversion to failure is the single largest obstacle

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Are you embracing failure?

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Learning from failure

• However they often have different approaches to failure

Most organisations recognise benefits of culture and process

• Scarce resources, lack of open reporting and critical evaluation

In complex work winning environments

failure happens due to:

• So errors could happen againHence improvement opportunities are not

spotted

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Challenges of Learning from Failure

• People have difficulty in accepting their own failure

• When their professionalism threatened then defences goes up

• People don’t want to think of themselves as incompetent or inept

• People don’t want to their creditability to be undermined in eyes of our colleagues

• Being open about mistakes can be almost traumatic

Why is this not easy to address

?

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Nobody wants to fail, we all want to succeed

In complex organisational systems, success can only happen when we admit our mistakes, learn from them and create an environment where it is “safe to fail”

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How can others apply these lessons?Environments where it is “safe to fail”

• It does not deny failure, it has systems which captures and records data

• Mistakes are not stigmatised but regarded as learning opportunities with immunity for ownership #

• Free access to the data enables everyone to learn from mistakes rather than a single bid team, or sector team or business unit.

• Automatic data capture and reporting when agreed parameters have been exceeded

• Real time reporting and data analysis during workflow sequences*

Aviation

learns from

failure

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Cross Industry Digitalisation Adoption

Construction has been very slow in adopting digitalisation hence it presents a significant competitive advantage for early adopters

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The Pre-Construction Environment offers a unique opportunity for adopting these approaches

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MarketingWorks has helped over 2,000 construction firms to implement client-centric work winning behaviours, processes and culture. We recently conducted extensive bid cost research across over £8 billion of bid data.

37% of Bids are won not due to price, but due to a combination of client-centric behaviours…

Background

Research conducted in collaboration the University of Reading

Average cost for contractors’ winning bids: £60kAverage cost for consultants' winning bids: £24K

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Bid Cost Research Overview

The reality is that on average, each bidder is spending at least 0.5% of the project value on bidding

The actual costs will also include hidden costs, imported costs and overheads

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Bid cost as a % of project value by project value bands

Source: MarketingWorks Bid Cost SurveyGraph - Professor Will Hughes

Source: MarketingWorks Bid Cost SurveyGraph –MarketingWorks

Note the smaller the project, the higher your bid cost

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Typical Pre-Construction Environments

• Large number of professionals undertaking numerous aligned activities to achieve challenging pressurised deadlines

Highly fragmented, task orientated, phased

environment

• Engage expensive in-house resources and time as well as additional capital investments in design and ad hoc support

Large financial commitments by organisations

• Losing track of time, lack of governance, lack of alignment • Allowing too much focus on non value adding areas Ripe for

• In seeing the bigger picture• And experiencing performance errors

Creates environments for difficulties

• Critical evaluation and learning from mistakesHence needs open reporting

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Digitalising win work flows delivers key marginal gains & bidding accountability

Hence why we have developed myConsole, a win workflow collaboration platform that • Provides bidding accountability and resource management in

work winning function.• Prompts best practice work winning behaviours• Provides real time data insights• Provides a dashboard for every user• Optimises the entire work winning process via a cloud platform• Data capture fields which are automatically shared across

authorised members of each bid team and leadership teams

Constant learning systems for Marginal Gains• Encourages willingness to investigate and exploit the lessons

that exist when bids lost• Helps teams avoid pathways to failure• provides numerous checklists and prompts to guide learning

and self correction for each individual during its bid cycle • It helps everyone recognise that mistakes happen and when

they do people realise it is not about them but about the bid as it helps them stop making such mistakes in the future

• Our analytics which translates necessary knowledge into simple usable and dashboards and key reports so it is fully distilled all the information into its practical essence for each member of pre-construction

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• Best Practice prompts to drive winning disciplines, behaviours, and productivity• Checklist of each individual’s

Responsibilities for every stage of every opportunity• A personalised window into

every opportunity

Industry Leading Analytics• Descriptive, Predictive and

Prescriptive Analytics• Personalised dashboards with

insight on BUs, clients, frameworks, opportunities

• Transparency, Metrics, &informed decisions

WinWork Process Excellence• Based on best practice

work winning processes • Embedded Bid Reviews and Governance

checkpoints• Proprietary selectivity engine informed by

proven algorithms and historical performance data

Individual PerformanceIndustry Leading

Analytics

WinWork Process Excellence

Individual Performance

Integrated BD Management

• One stop shop for integrated management of Frameworks, Clients, Opportunities, Win Plans, Bids, Project Handover, Closedown and Case Studies

• End-to-end closed loop for lessons learnt, delivery collateral and metrics

Integrated BD Management

myConsole drives consistent winning behaviours and predictable results through a combination of industry leading sales management approaches, personalised productivity tools, and state of the art analytics


Enables high performance work winning environments

Empower your team with cloud based win workflow collaboration tools that improve client centric behaviours to

increase win rates and leadership insight

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how to use marginal gains to drive improvements in pre-construction

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