Few companies, regardless of the industry, can survive if they do not embrace the concept—and practice—of process improvement. It might be even more critical in the construction industry, where efficient, tightly managed processes are vital to completing projects, some worth hundreds of millions of dollars, on time and within budget.
LCOR, a fully integrated real estate investment, development, and management company specializing in large-scale, mixed-use development, understands this concept well. Given the impressive size of its project portfolio, as well as the vast number of disciplines under one roof, operational performance needs to be at peak efficiency to keep everyone rowing in the same direction.
Consequently, when a critical analysis of LCOR’s project scheduling procedures revealed that some improvement was in order, the company was eager to address the situation immediately.
“Our job as project owner is to be proactive and get ahead of issues,” says Nicholas Pasquenza, who is responsible for the execution of the company’s development projects from design through construction and turnover to the property management group. “To do that, we need accurate information in a timely manner. So, in the case of a problem, we, along with our GCs, can course-correct while we still have the opportunity.”
Scheduling improvement
Schedules for LCOR projects are provided by the general contractors (GCs) LCOR enlists. In the past, they were subsequently analyzed by third-party schedule consultants for potential delays or roadblocks. But in the spirit of constantly upgrading their procedures—both internal as well as those executed by outside sources—Pasquenza began an extensive search for alternate approaches.
This search brought him to a cloud-based schedule analytics platform proven to enhance schedule quality, assess risk, review performance, and control project outcomes. The product demo immediately convinced Pasquenza he was looking at an entirely new approach to schedule improvement.
“[The software platform] performs a comprehensive analysis of each project update and puts the most accurate, relevant schedule analysis at our fingertips instantaneously, and it does it very cost-effectively,” Pasquenza says. “This allows us to have real-time discussions with the GCs whenever we have an issue in the field that needs to be tackled. And if a project starts to go off course, [the platform] can quickly identify the trouble source.”
The result is a significant improvement in scheduling acumen for LCOR projects, creating quality schedules that can truly serve as the lifeblood of each project. The platform provides LCOR project managers with the data they need when meeting with a GC about an issue. It enhances LCOR’s ability to collaborate with GCs to more precisely identify scheduling problems. It also helps GCs to recommend or take corrective action.
“Now, when we have concerns about a job, we can walk in and say, for instance, ‘This area should be farther along. Is this a problem or not?’ We’re armed with facts and data, which ultimately lead to better outcomes for everybody.”
As an example of the platform’s capabilities, Pasquenza recounted a time when it nipped a scheduling issue in the bud.
“One time, a contractor provided a recovery schedule showing no delay. Using [the platform], we were able to determine that the GC had removed 35 days from certain foundational tasks,” he says.
Mistakes identified and fixed
“With this information in hand, we asked our GC to explain to us how they were able to shave seven weeks from this part of the project. Realizing their inadvertent error, they made the fix, and the schedule was adjusted accordingly resulting in an accurate schedule.”
The platform offers features that Pasquenza says he did not initially know were there until he began using it.
“The Quality Checker is a tool I didn’t even know existed, but it’s now one we can’t do without,” he says. “The initial schedules are given a letter grade based on various criteria. But it also tells you which factors are leading to the lower grades, whether it’s too much float, missing logic ties…whatever.
“This helps the contractor develop more technically sound schedules in a relatively short time. These technically accurate schedules then become highly useful tools throughout the duration of the project.”
Currently, LCOR has six projects on the platform. Each project has a dedicated project manager; they are the ones using the platform with the greatest frequency. For Pasquenza and other executives who may not wish to dive into the nitty-gritty details, features like the Executive Dashboard—which provides a quick, easy-to-understand snapshot of each project’s overall schedule health—are a welcome addition.
The platform has had an impact beyond the project jobsite. Beyond existing real estate and active projects, LCOR provides investment opportunities on the front-end of new and upcoming projects.
“Our stakeholders want to be assured the project is going to achieve its targets,” Pasquenza says, “which means we need to hit both the budget and the schedule. [It] helps us reach both, which has ultimately translated to a history of solid performance to the benefit of all project stakeholders.
“From a broader perspective, it shows we have some robust processes in place to demonstrate predictability of outcome. That is a huge competitive advantage in the marketplace.”
Quantifying the ROI
While Pasquenza does not have an exact figure that represents the ROI of the platform, there is no question that it is quantifiable—and substantial.
“By not allowing potential issues and problem areas to slip past us, we save enough money to more than justify the cost of the platform,” he says. “What’s more, we’re able to identify the critical-path issues and focus on those immediately while putting the less-critical matters on the back burner.”
While GCs and construction companies represent the largest segment of this platform’s customer base, CEO Michael Pink notes that the platform is finding its way into the hands of a broader audience, including company owners.
“We see more owners like LCOR getting involved in the schedule—and especially schedule analysis,” he says. “They’ve got a huge financial stake in their projects, and they don’t want to assume that the GC or builder is managing the risk here.”
The bottom line is LCOR’s use of the platform reaps benefits for the company—and the GCs on whom LCOR depends.
Michael A. Pink is CEO of SmartPM Technologies, a leading construction data analysis tool designed to enhance schedule quality, assess risk, review performance, and control project outcomes. You can follow him on LinkedIn at https://www.linkedin.com/in/mapink/.
