Leadership And Productivity

15 May 2017 / By John Manning
Dispute Resolution

The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things

Ronald Regan

Among my many duties as principal of KMI International, I participate in a fair number of forums that discuss the state of the construction industry. For years, I have heard complaints about the lack of leadership within the industry. In fact, it is a topic that comes up regularly at the Construction Management Association of America (CMAA) Conferences. There is also discussion noting how productivity in the construction industry continues to fall.

In February 2017, McKinsey & Company completed a study, “Reinventing Construction: A Route to Higher Productivity.” In this report, they identify that while construction spending accounts for 13% of the World’s GDP, productivity has only increased 1%, or less, in the past 20 years! The report also notes that the compounded rate of productivity for manufacturing, since 1947, has been 3.5% per year versus construction, which has been 0.1% per year.

At the recent CMAA Capital Symposium in New Orleans, several key educational sessions were focused specifically on the lack of productivity and what could be done to correct the issue – strengthening leadership was identified as one of the key solutions.

In their report, McKinsey outlines seven key ways to tackle the root causes of the construction industry’s poor productivity. They include:

1.  Reshape regulation and raise transparency;

2.  Rewire the contractual framework;

3.  Rethink design and engineering processes;

4.  Improve procurement and supply-chain management;

5.  Improve on-site execution;

6.  Infuse digital technology, new materials, and advance automation; and

7.  Reskill the workforce.

For any or all of these solutions to occur, it is critical to have the right leadership in place. As President Reagan said, “Great leaders are the ones who get the people to do the greatest things;” and it will take great leadership to overcome the challenges and increase the industry’s productivity.  To be a great leader and get others to do great things, however, one must first possess and maintain the necessary skills.

One of the first steps in leadership for a project is to bring someone or a team on who have the skills to lead and help reduce inefficiencies that are causing poor productivity. Where do you find individuals with the skill sets to lead a project? You start with individuals who hold the designation of CCM (Certified Construction Manager).

The Construction Industry Institute (CII) of the University of Texas, a consortium of leading owners, engineering and construction contractors, and major suppliers dedicated to improving delivery of capital projects and programs, has endorsed the Certified Construction Manager (CCM) designation as, “A value-adding credential for those in responsible charge positions of major phases of capital projects.”  

The CII and CMAA have partnered with the slogan “Best Practices – Best Practitioners improve delivery of capital facilities in all settings by promoting the professional practice of Construction and Program Management in conjunction with the broadest possible application of recognized industry Best Practices.

At KMI, and as members of the Construction Management Association of America, our personnel is trained in the standards of CII and CMAA. In fact, nearly 50% of KMI’s construction workforce is CCM credentialed and are recognized for their exemplary project leadership.

CMAA focuses on individuals learning the skills necessary to deliver capital programs in the most effective and efficient way. Tackling the productivity issue in construction will take great leaders. Utilizing CCMs is one way to put your project on the path to being more productive.

For more information on the CCM Credential and KMI International, contact John Manning, Principal/CEO.

About The Author

John Manning

John Manning is the Principal and CEO of KMI International with more than 30 years of global experience in project management of the design and construction processes on resort hotels, parking structures, infrastructure, area development and mixed use. He is a CCM (Certified Construction Manager), PE (Professional Engineer) and a LEED Accredited Professional while serving on the national board of CMAA. He has worked as a project manager for large Owners and Construction Management Firms on projects ranging up to $3 Billion. Mr. Manning also testifies as a forensic expert in state and federal courts.

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