Digital Culture

Construction Sector
Transformation
Dr Julian Ballard, Partner
November 2019
My Background, Expertise and Passions

Strategy

People
Science Technology

Transformation

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The World Around Us is Transforming
Five global shifts are
reshaping the world we
live in…

…with implications for

the future of
organisations, industries
and society

Technology
plays a huge
part in this
transformation

PwC Source: PwC Analysis (2019) 3

Construction models are being heavily disrupted…

New Tendering Revenue Mobilisation Close Out

Primary Functions

Business Pricing Optimisation Delivery Defect

Sub-Contracting Quality Assurance Handling
Risk
Management

Vision; Strategy; Plan; Govern

Enabling Functions

Business Processes

People & Work

Customers, Suppliers, Outsourcers

Finance

Technology

PwC Source: PwC and Strategy& Analysis, 2017-2019 4

…with big implications on the global scale…
Global Trends
Virtual reality Big Data insights
Digital Digital Twinning
Notable Disruption Areas

3D capabilities Automation Robotics

Safety System Sustainability Focus

Advanced
Processes Material use Modular Enhanced Disaster
Increased pre-fabrication
construction proofing

Turn Key Government as a Smart Infrastructure

Business Expectations Buyer
Increased PPPs
driven growth

Models Scope
Cherry Picking Business Consolidation rate slowdown

Skills
People & Shortages Entreployees: boosting
company, but also
Hybrid Workforce:
people +
Rise of the
Millennials
Work Retention
challenges
launching own ventures systems/machines

PwC Source: PwC and Strategy& Analysis, 2017-2019 5

…and impact felt locally in the Construction Sector
Local Impact

Technology is being introduced into all aspects of the value chain – however the necessary strategic alignment
Digital and adoption support is not always present, this erodes potential transformation efficiencies and profits
Disruption Area

Scope and Time pressures

Fraud results due to operating dynamics imposed on Build quality adversely
impact design process,
Processes estimation, scheduling, safety,
the sector – including heavy bureaucracy which slow impacted due to accelerated
milestone completion and lead to delivery penalties delivery pace
and delivery timing

Business State tendering and required operating processes drive significant financial pressure – these shrink profit margins,

Models lead to delays in fee recovery, and in some cases cause insolvency of construction groups

Lack of consistent People, Generational differences – younger workers are more tech and business savvy and
People & Learning & Development want to work on projects rather than in one job for their full career

Work practices and systems

compared to other sectors Notable need for investment in management capability improvement

PwC Source: PwC and Strategy& Analysis, 2017-2019 6

But what about the Digital Transformation Promise?
Paper still forms a major part of our business…

Compliance Notes Invoices

Records
Tender Submissions
Risk summaries
Project deliverables
Site Templates
Receipts
…many others

...is the
Digital
Promise
an issue
of…

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Technology? Process? or Culture? 7
We believe an important part of the answer is Culture
Simple principles help leaders
and teams activate culture to
achieve performance…
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However, there are
challenges, in our latest
Global Culture survey we
learned that:
“…80% of respondents
say their organisation’s
Culture must evolve for
their company to
succeed…”
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 Managing Culture as an Asset gives Better Results
Coherent Elements of
Effective Organisations
Culture Links to Growth,
Profitability, and the Ability to Execute
Business If companies answered…
Strategy

“Do you have a distinctive culture that

How do we
create value? gives you a competitive advantage?” …Yes
…they are more likely to respond positively by:

“Relative to your industry, how

Operating Culture
fast is revenue growing?” +1.9 x
Model
How will we
“Relative to your industry, how
How will we run energize
profitable are you?”
+1.7 x
the business? our people?
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“Are important strategic and operational
decisions quickly actioned?” +2.0 x
All three in sync to be
coherent and effective
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Source: Strategy& OrgDNA Survey 2011-2015 of ~51K responses
However for Leaders globally this is not Easy

The challenge:

Leaders think they’re on

track with workplace
culture…

…but, their people don’t

agree – and they’re ready
for Culture to change.

We have identified 5 top priority enablers for leaders seeking to embed Digital Culture…
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1. To be successful when it comes to Digital… address
where your Culture and your Digital Strategy Clash

71% of C-suite and board

members view culture as a
critical strategic topic – up
from 64% in 2014.

For the influence of culture to

translate into real business
results, Culture, Digital strategy
and Operations must be aligned.

Think about where your culture is

today, and envision its ideal state. Ask:
how is the current culture supporting
our intentions? What needs to change?
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2. Change your Listening Tours
How can you translate your culture
goals into reality?

There’s a notable difference in how leaders view their

culture, and how their people see it. To close that gap:

● Go beyond ordinary listening

● Get feedback from all departments and levels
● Connect with “informal leaders” who don’t have a
formal leadership role, but insight into what
people care about most

Ask: “…what changes will work in your

team to make the most out of technology and
digital innovations?”

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3. Identify performance enhancing Digital Behaviours

What behaviors will have the

greatest impact?

Cultures don’t change quickly…

…but…

…a disciplined focus on a few key Digital

Behaviors that matter most can spark – and
will accelerate – the necessary change and
high performance results.

Take time to recognise and reward people who

adopt and demonstrate those behaviors

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4. Step into the “Show Me” age

Lead by example to gain

trust and buy-in

Show your people that you’re committed

to evolving your organisation’s Digital
Culture by demonstrating the critical few
behaviors yourself.

Taking visible action can help your people

believe you’re serious. Right now, they
don’t in many cases, based on our
Global results.

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5. Live Digital Culture as a Continual Collaboration

Most efforts to evolve culture fail

42% of respondents believe that their

organisation’s culture has remained static for the
last five years.

Influencing culture is hard, and most leaders

declare victory too soon.

It can’t be a “one-off” project, nor can it be

implemented top-down.

Prepare to persevere through obstacles if

you want long-term, sustainable Digitally
embedded change.

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 …Construction Sector
Leaders can use
Putting it Digital Culture to
all together… Accelerate Success

1. Address where your Culture

and Digital strategy clash

2. Change your listening tours

3. Identify the “critical few”

performance enhancing
Digital Behaviours

4. Step into the “show me” age

5. Commit to Digital Culture as a

continual, collaborative effort
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