There is a need for transparency in the construction process

The principle of transparency plays a key role in enabling a holistic view of the construction process. As discussed in Sections 2.3 and 2.4, the principle of transparency and the use of Visual Management to create transparency, play a significant role in achieving a holistic view of the process. In construction, the deficiencies associated with the traditional approach to project management have been heavily criticised for contributing to a lack of transparency and hindering effective communication between organisations involved in the procurement process. These deficiencies, occurring as a result of assumptions made in the traditional model (Section 2.7), are disguising the need for transparency between the functions of planning, execution and control. There is evidence in practice however to show that assumptions such as a) uncertainty is low, b) relationships between activities are simple and sequential, c) activity boundaries are rigid, d) control against standards will assure outcomes and e) production management is not a concern of project management (Howell & Koskela, 2000) are incorrect.

These assumptions result in the creation of plans that are not tested against reality, causing work to be pushed into execution without taking the current status of the production system into account. More meaningful, lower level plans are needed that can be adapted according to the current status of the production system. Without transparency in processes however, it is difficult to observe the current status of the production system. In addition, one way communication occurring to execute plans is not sufficient, since no feedback is allowed on the feasibility of those plans. Two-way communication is needed to create sound commitments (Winograd & Flores, 1986) but this is only feasible if there is transparency of information and structures in place to support the two-way communication process.

This work argues that there is a need for transparency to deal with the uncertainty that exists in construction, to better understand the complicated relationship between activities and

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interfaces, thus anticipating and resolving problems earlier. Transparency of the construction process is necessary for three main reasons: 1) to enable a holistic view of the entire process and to implement flow 2) to support continuous improvement and 3) to build trust and motivate process participants.

2.10.3.1 To facilitate a holistic view of the entire process and to implement flow

Alternative models to the traditional model see production as a system composed of ‘operation flows’ (machine or man) and ‘process flows’ (Gilbreth 1922, Shingo 1989, Koskela 1992). To observe the construction process as a flow of activities and to achieve a holistic view of the overall process, a high capability of handling vast amounts of information is required. This is in part due to the fact that many factors that before were considered unimportant come to the surface and become very important to the production effectiveness. This surplus information may be quite off-putting for construction managers, as they may be unable to understand and control this additional information. Thus the flow of information must be easily understood, or construction managers and workers may prefer to return to the traditional conversion model view as soon as they are exposed to the enormous amount of information related to the flow model. In order to overcome the difficulties associated with this additional information, production activities in construction must become more transparent. The transparency of information is also important to facilitate a common understanding among process participants of the construction process, so that the “right” activitity is carried out. Common understanding has been proposed as an important additional flow in construction which needs to be defined, developed and nurtured across the project execution (Pasquire, 2012).

The application of the principle of transparency is a key point to make viable the flow model (dos Santos et al., 1998). Achieving a holistic view of the entire process and considering the interrelationship of the individual parts, is a key step when striving to achieve a Lean organisation (Section 2.10.1).

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2.10.3.2 To support continuous improvement

In order to identify higher level of improvements and understand what effect those improvements have on the overall process, it is necessary to make the process and information flow between the different interfaces transparent, so that a clear understanding of the order of work is achieved (Figure 2.11, right side). This gives rise to more meaningful optimisations than those typical of the traditional model, where improvements are aimed at the minimisation of cost of each of the individual conversion activities (Koskela, 1992) and an explanation of what has happened, rather than anticipating and preventing what could happen.

Figure 2.11: Functional orientated structure of projects (with little transparency and one-way communication, left) versus process orientated structure (using Visual Management to open

up interfaces, create transparency and support two-way communication, right).

2.10.3.3 To build trust and motivation

Another reason why the principle of transparency is needed in construction is to support change by building trust and motivation. Construction companies usually have few visual mechanisms to inspire, instruct or motivate workers to carry out their jobs more effectively, efficiently and safely (dos Santos et al., 1998). A construction project is a complex

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organisation that is subject to frequent change and challenging times. This situation requires a different approach to management and planning, which is aimed at motivating and maintaining trust through volatile times. Transparency is important to deal with the fluctuations and complexity associated with construction projects as it is essential for maintaining trust: by being clear on what information is gathered and how decisions are being made (Crumpton, 2011). It is crucial that the trust and confidence of all parties in the construction project is maintained. Latham (1994) identified a lack of trust between organisations in construction as being a major barrier to improving its performance. By communicating even bad news in a transparent way, emotional uncertainty can be kept from creating more negative actions (Crumpton, 2011). Transparent communication on decision making helps to reduce uncertainty, which could otherwise lead to negative action.

The principle of transparency can also be applied to enable a clear understanding and alignment of individual goals with an organisation’s over-arching strategy which is fundamental to driving the execution of that strategy. Research shows that organisations lose forty percent of the potential financial value of their strategies due to poor performance and talent management of their employees (Mankins & Steele, 2005). Unless employees are motivated, the alignment of organisational and individual goals will not optimise the organisation’s overall performance (Sirota et al., 2005). It is critical then, to understand what will motivate an individual to achieve the goals that contribute to the execution of the organisation’s strategy. Berggren (2007) argues that transparency within an organisation reduces inefficiencies in strategy execution, and is a key factor in attracting and retaining high performers in the labour market.

In summary, the principle of transparency is important for construction for three main reasons: 1) to achieve the level of understanding of the entire process that is needed to implement flow and identify critical interdependencies 2) for the definition of higher levels of improvements and 3) to motivate and create trust among participants. It also stimulates informal contact between the different interfaces, supporting the recognition of interdependencies between sub processes and initiating discussions on the consequences of actions. It promotes well rounded decision making and builds trust, by providing clear insights into matters that are relevant to all parties involved and reduces emotional

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uncertainty. It promotes self-management and leads to the early recognition and solution of problems.