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“Never waste a good crisis” Andrew Wolstenholme Balfour Beatty
20

Never Waste a Good Crisis:

Jun 10, 2015

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Presentation by Andrew Wolstenholme, author of industry report "Never Waste a Good Crisis. Slides delivered at Constructing Excellence annual convention, at BRE, Watford, UK, on 13 October 2010
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Transcript
Page 1: Never Waste a Good Crisis:

“Never waste agood crisis”

Andrew Wolstenholme

Balfour Beatty

Page 2: Never Waste a Good Crisis:

Constructing Excellence – Members Convention

- How the UK industry has responded to change- NWaGC – a 10 minute summary- Barriers to achieving cost effectiveness- Big themes for the future- Breaking paradigms- Green shoots and quick wins

Delivering better built environmentscost effectively in a new era

Page 3: Never Waste a Good Crisis:

How the Industry responds to change

Construction Industry Reports

Page 4: Never Waste a Good Crisis:

What the Reports highlighted

- Fragmented Industry- Adversarial Relationships- Need to foster trust- Develop a collaborative culture- Recommended new educational standards

- Simon Report 1944- Emerson Report 1962

Page 5: Never Waste a Good Crisis:

How well has the Industry performed since Egan?

Page 6: Never Waste a Good Crisis:

Understanding the evidence

- 10 Industry reports- 1,000 Questionnaires

- 10 years of Industry KPIs

Page 7: Never Waste a Good Crisis:

How well has the Industry done?

Safety Cost and Time

Profitability

Page 8: Never Waste a Good Crisis:

Thesis behind the Report

EganChangeAgenda

- Economic Model

- Capability - Delivery Process- Industry Structure

Exemplars

Blockers

Page 9: Never Waste a Good Crisis:

Never Waste a Good Crisis

Big Themes

- Built environment not construction- Industry road map for a Carbon Agenda

- Business models that force change

- Leaders that get the big picture- Integrate education and training

Page 10: Never Waste a Good Crisis:

Built Environment not ConstructionThe cost of generating Business outcomes

BusinessCosts

O & M

Construction

Design

Delivery cycle Operational life cycle

BusinessOutcomes

Page 11: Never Waste a Good Crisis:

Low carbon construction

BIS Innovation and Growth Team

• Final report in October 2010

• Sector response to the UK’s low carbon transition strategy – “a road map for construction”

• 26% carbon reduction by 2020• 80% by 2050 (1990 baseline)

• Housing, buildings, civil engineering, major projects

Page 12: Never Waste a Good Crisis:

A low Carbon industry – The Opportunity

• a change programme stretching over at least 40 years• cost savings of 10-30% from integration / modernisation• deliver net zero carbon infrastructure for the same price or

less making the low carbon transition affordable• Policies to encourage the industry to be an engine for

economic growth• attract future generations to a noble cause

Page 13: Never Waste a Good Crisis:

Wat

er

Private Funding

Elec

tric

ity

Gas

Airp

orts

Heal

th

Rail

Educ

ation

Road

s

Publ

icBu

ildin

gs

Hous

ing

100%

50%

Priv

ate

Build

ings

Funding UK’s £125bn Industry

Public Funding

Un

- R

egu

late

d

Regu

late

d

PFI

Business Models that force change

Page 14: Never Waste a Good Crisis:

£45bn BSF Programme

Bassetlaw

Islington

Rotherham

North Lanarkshire

Liverpool Harringey

Hackney

Southwark

Ealing

Oldham

Derby

Birmingham

Stoke

Knowsley

Manchester

Every secondary school in England will be re-built or re-furbished by 2023

Page 15: Never Waste a Good Crisis:

Component based system for schools

- Flexible layouts- Focused on business (educational) outcomes- Cost 30% less per m2 – low energy life-cycle

Page 16: Never Waste a Good Crisis:

Terminal 5 – Supply Chain Innovation

- BIM modelling- Full size prototyping- Manufacture and assembly

Page 17: Never Waste a Good Crisis:

£6bn M25 - PFI

- Planning capital projects around traffic management

- Understanding asset renewal- Batched maintenance

Page 18: Never Waste a Good Crisis:

New Birmingham Hospital

- Increasing productivity- Reducing programme time- Eliminating safety risk

Page 19: Never Waste a Good Crisis:

Never Waste a Good Crisis – some ‘green shoots’ appearing

- Clear Vision-Infrastructure UK

-Leadership-Chief Construction Advisor

-Planning-IGT Roadmap for the Carbon Agenda

-Consultation-Finding better ways to deliver BSF - ‘More for

Less’-Incentives

-Policy, Regulation and Smart Procurement-Support

-BIM for all Public Sector projects

Page 20: Never Waste a Good Crisis:

Never Waste a Good Crisis – Some quick wins

- Clients- Business models that demand change- Design for business outcomes- Manage the brief – 50% of your projects are late and over

budget- Industry

-Do not wait for permission to change-Innovate – clients want it but do not know how to ask-Early adopters in the Carbon race will win

- Government- Develop Policies that drive change- Keep strong leaders in place- Role model – the rest will have to follow