Eco-Innovation in Construction Project - Essay Example

Eco-Innovation in Construction Project Outline Introduction 2. Need for change 3. Introduction to Construction Industry 4. The Cause of Concern 5. Innovation Suitable Innovation Required. Introducing Eco Innovation Which Eco Innovation for this Construction Industry? How CMMS would solve the Problem? 6. Organization Change 7. Change Management. 8. Theory And Application 9. Other theories 10. Critical analysis of the particular situation selected: 11. Personal statement about coping with change Introduction Eco innovation and change management are one of the central issues for construction and engineering organizations as the industry continues shifting culturally and move towards wider operationally excellent business models. The recent economic conditions have just compounded the pressure and, coupled with this regulatory pressure from government and the consolidation of sub contractors, which has inevitably led to very stiffer competition. Within this novel sphere, many organizations are struggling to manage the costs and differentiate their selves from the competition. Need for change: Change as define in the online dictionary means the act or the fact of changing and the fact of being changed. Organizational change occurs when there is a company making a transition from its current state to some other desired future state. Managing the organizational change can be characterized as the process of planning and then implementing change in organizations in a way as to minimize the employee resistance and resulting cost to the organization while side by side maximizing the effectiveness of the innovation effort. Todays the business environment requires all companies to undergo changes almost more often if they wish to remain competitive. Some of the factors such as the globalization of markets and the rapidly evolving technology force the businesses to respond if they wish to survive. Such changes or innovation might be relatively minor , for instance in the case of installing a new software program or they could be even quite major, for instance as in the case of refocusing a complete marketing strategy, transforming a company in face of continual foreign competition or fighting off a hostile takeover. Introduction to Construction Industry Online free dictionary defines construction industry as an industry that builds housing. Construction Industry is today one of the most booming industries worldwide. This industry covers mainly urban based areas who are concerned with preparation as well as the construction of real estate properties. Though, the repairing of existing building or even making certain alterations may also falls under Construction Industry. This industry usually categorized into three basic categories: Construction of any Building Construction of Heavy / civil buildings Construction of Industrial buildings All three types of construction project require unique teams to plan, design, construct along with maintain the project. At times the construction industry has to bear heavy maintenance cost that results in much losses for the industry. It is important that for such a big industry to properly plan its activities and utilize such measures that decrease the ever increasing maintenance cost. Mostly, the maintenance occurs after construction and therefore the future cost is not predicted well. One of the harmful effects of such is a positive NPV project resulting in negative. The Cause of Concern Construction Industry has been concern problematic for many years (Boyd, D., Chinyio, E, 2006).The world’s ecology is there changing rapidly with an ever- increasing human population. Our basic needs including food, clothing and even shelter are provided through process of the planet’s limited resources namely the water, grain and the minerals. The CO2 emission due to industrialization keeps on accumulating within our atmosphere. The vegetation such as trees and various types of plants as a form of air cleansing tools of this planet are gradually losing effectiveness. The growing human needs by industrialization and even land clearance results in a rapid extinction of the planet’s plants and even the vegetables. One of the contributors for destruction of land is the excessive dependency on timber and even the land that is required for an ever-increasing building construction activity. This loss of vegetation therefore greatly affects the quality of the air one is breathing and hence the health. Urbanization is replacing the traditional vegetation with roofing and even the hardstand areas that causes “flash” flooding. As a result, our already limited fresh water supply is reaching an alarming scarce level with the increasing demands for industry, agriculture and basic human needs. These energy crisis issues are even exacerbated by further burning of fossil fuels. However, the reality is that there is no adequacy of alternative energy sources to replace these fossil fuels combustion. The best way for Construction industry therefore is to minimize the human expansion impact on the overall environment by increasing the usage of different environmentally friendly alternatives, energy sources, use long lasting building materials, enforce new ways for water sources/usage, encourage recyclability, implement urban planning for consolidation embracing true eco innovation principles. Innovation Suitable Innovation Required. To tackle the ever-increasing carbon footprint and energy emissions the construction industry requires a suitable Eco Innovation. Introducing Eco Innovation Eco innovation is any term that be used for describing the products and processes that will contribute to sustainable development. Eco innovation is actually the commercial application of knowledge to evident direct or the indirect ecological improvements. Eco Innovation is often use for a range of related tricks, from environmental friendly technological advances to any socially acceptable innovative means towards achieving the green side goal of sustainability. The idea of eco innovation is considerably recent. In a conference held in Copenhagen (2005) a new definition of this was given that referred to processes and products that provide customer and business value along with the decrease in environmental impacts (Eco-innovation: Potentials and challenges of tomorrows technologies ). Eco-innovation is closely link to variety of related terms. It can even be often use interchangeably with the environmental innovation, and often with environmental technology, eco efficiency, eco design, environmental or sustainable design, or sustainable innovation. Which Eco Innovation for this Construction Industry? Construction industry needs to apply procedures to go green. Industry would require reducing its carbon emissions and making energy efficient improvement in homes constructed. (Sustainable times, 2011) With the move towards highly airtight and insulated buildings, the trapped moisture is likely to be big issue in the building health and performance over the next few years. The Eco Innovation for the construction industry is “Computerized Moisture Modeling Software” (CMMS). How CMMS would solve the Problem? CMMS would help enhance the sustainable building expertise that construction industry holds. This program enables determination of the most suitable building products for different buildings in concern. It chooses products on the basis of building’s individual location, its orientation and local climate. This software can be used to carry out the necessary calculations and also to assess heat and moisture transporting within the multiple layers of construction building when exposed to the seasonal local weather conditions, along with the effects of these processes on the building’s performance. The segregated properties of each material in the building are to be accounted for separately. CMMS therefore is able to identify which building systems are robust and those that fail in different locations or / add in different applications. This is specifically essential for timber frame buildings and also for the internal insulation in places where the risks of trapped moistures are greatest. Any kind of modeling can be only as good as the user is and so CMMS staff have to be extensively trained through the training workshops or Institute. Of course just as essential is the practical knowledge of buildings along with the materials in use. As a consequence CMMS modeling by construction industry can be used with full confidence to assess what works well and what doesn’t in terms of moisture variation. Organization Change Change is a usual thread that runs through all of the businesses and industries regardless of their sizes and ages. Our world is changing with speed and, as such, organizations must change, in order to adapt with changing environment, quickly too. It has been seen that organizations that handle change well will thrive, whilst those that do not would have to struggle to survive. Disconnecting oneself from change does not re capture the past, but rather it loses the future. (Kathleen Norris in O Magazine, January 2004) Change Management The concept of "change management” can be seen as a familiar one in most businesses today. Nevertheless, how businesses manage change (plus how successful they are at it) might vary enormously depending on the very nature of the business, change and people involved. And an important part of this depends on how far those involve in change understands the change process. The focus is then providing tools for change to help carry out the process of change. (Shaw, P. 2001) One of the models for understanding organizational change is from Kurt Lewin back in the 1950s moreover it still holds true today. This model involving Unfreeze – Change – Refreeze procedures is called the three stage process of change. Lewin, was a physicist as well as a social scientist, he explained organizational change using the likeness of changing the shape of the block of ice. Lewin’s Model (Theory and application in Construction Industry) Lewin’s refer to the change in terms of Ice. If one has a large cube of ice, but realize that what one want is a cone of ice, what would they do? First they would melt the ice to make such amenable to change (unfreeze). Then they must mold the iced water into the cone shape they want (change). Finally, they must solidify it to new shape (refreeze). By looking at the above change process with distinct stages, one can prepare themselves for what is about to come and make a plan to manage such transition. To begin any sort of successful change process, one must first start by understanding why such change should take place. As Lewin put it, "Motivation for any alteration should be there before such alteration really occurs. One must be helped to re examine many of the cherished assumptions about their selves and ones relations to others." This is what can be termed as the process of unfreezing from which the resulting industrial change would naturally start. Unfreeze In the Unfreeze process, construction industry would need to make the organization and its people feel that the change is essential preparing everyone to accept that change; this involves breaking down the existing status quo before building up a new way of operating. How to apply for CMMS? Key to unfreezing process is developing a compelling message to prove why the existing way of operating Construction industry cannot continue. This can be easiest to frame when one can point the declining sales figures, the poor financial results due to less environment accountability, worrying customer satisfaction surveys, or likewise: This evident that things would have to be changed in a way that everyone would pretty much understand. To prepare this phase for organization successfully, management needs to start at its core they need to challenge the values, attitudes, beliefs, and behaviors that currently exists. In order to install CMMS system it is important that there exist acceptance for changing existing foundations unless this is done, the successfulness of whole process of change might be at risk. As have been seen this first part of the organizational change process is generally the most stressful and difficult. If management start cutting down the "way things are done", they put everything and everyone off balance. One may evoke strong reactions in people which might not be what is exactly needed to be done. If the management of construction industry forces itself to reexamine its core, they effectively create a (controlled) crisis, which would in turn build a strong motivation seeking out a new equilibrium. Without this motivation, the management won’t get the buy in and participation required necessary to effect any meaningful change. Change After such uncertainty created in unfreezes stage, the next step is the change stage where people begin to resolve any uncertainty and look for any new ways to get things done. People would generally start to accept change in this case the (CMMS) and start to believe or act in ways that support this new direction. This transition from unfreeze to change stage does not happen overnight: People would take time to embrace this new direction and would participate proactively in the change process. A related change model, the Change Focus focuses on the comprehensive issues of personal transitions in the changing environment and is good for understanding the specific aspects of these in more detail. How to make a change acceptable at Construction Industry? In order for making a change acceptable management should at the Construction Industry and making the change more successful, people involve in change (workers, customers, management, stakeholders etc) need to understand how such changes benefits them. Not everyone will fall in this line that just because the change is necessary for construction industry they should accept it. This is a very big assumption and a pitfall that needs to be avoided. Effects on those involve in change: Unfortunately, there would be naturally some who will genuinely be harmed by change, specifically those who are currently benefitting strongly from the status quo. Moreover, there would be others who might take a long time to recognize benefits that thereby change brings. Management at Construction Industry needs to foresee and manage these situations. Communication and time are the two keys for successful imposition of change. Those whom change effects need time to understand such changes and also need to feel fully connected to the organization during the absolute transition period. When one is managing change, this could require a great deal of effort, time and hands on management can be utilized as generally the best approach. Refreeze The next step is the refreeze process this occurs after the changes have taken shape and people have embraced the new methods of working, the organization is thereby ready to refreeze. The evident signs of the refreeze are: consistent job descriptions, stable organization chart, and so on. The refreeze stage therefore needs to help organization and the people to internalize or institutionalize such changes. This means just making sure that evident change is used all the time to remain competitive; and that such is incorporated into everyday business. With a new feeling of stability, employees would feel more confident and comfortable with the new methods of working. The rationale behind creation of new sense of stability in the ever changing world is generally questioned. Even though change is usual or constant in many organizations, this refreezing stage can said to hold importance of all the phases of change process. Without this, employees would get caught in any transition trap where they would not be sure of how things could be done, this even mean nothing’s ever done to its full capacity. If this step of new frozen state appears missing, then it would be very difficult to accept the next change initiative effectively. How would management go about convincing workers, stakeholders and others that something needs changing if they havent made sure that the most recent changes have already sink in? As a result, change will be thought as change for changes sake, along with the lacking of motivation required to implement such new changes. As part of this Refreezing process, management must make sure that it celebrates the successful imposition of the change, CMMS installation and use. This would help people find closure, appreciate them for enduring a painful phase or period, and gives them belief that future changes will be successful. (2346) Practical Steps for Implementing change at Construction industry with this Framework: Unfreeze 1. First of all determine what needs to be change. Survey the industry to understand the current state. Focus on why change has to take place. (to better achieve construction industry’s strategy and objective to ‘go green’) 2. Ensure that there is strong support from the upper management. Use Stakeholder Management and Stakeholder Analysis to identify and win over the support of key people within the organization. It is important that key people accept change before the change can be put into practice. Frame down the issues as one of organization wide importance. 3. Creating the requirement for change. Create compelling message of why change has to occur (to reduce CO2 and Energy emissions through CMMS). Use the vision and strategy as the supporting evidence ( designed to strengthen the construction industrys environmental, health and safety, human and social rights ) Communicate the vision in terms of the change required.(CMMS would help become us more greener) Emphasize the "why". (for survival) 4. Understand and manage the doubts and concerns. Remain fully open to employee concerns and address them in terms of the need to change. (to survive in this competitive industry) Change 1. Communicate often (with employees, customers and stakeholders) Just do so throughout the planning and the implementation of the changes. Describe their forth occurring benefits. (more competitiveness and customer satisfaction, less government fines) Explain exactly how the changes will affect everyone. (Some of the employees would be made redundant, workers would get more training). Prepare everybody for what is about to come (to use CMMS proper training sessions would be required). 2. Dispel any rumors. Answer any queries or questions openly and honestly. Dealing with problems at the spot. Relate to the need for change to Construction Industry operational necessities. 3. Empowering action. Provide lots of opportunities for employee involvement. (this would help carry out change). Have line managers providing day-to-day direction. 4. Whole change process requires involvement of people. Generate and celebrate short-term wins to reinforce the change. Negotiating with the external stakeholders as when necessary (such as the employee organizations, customers etc). Refreeze 1. the most important is anchoring the changes into organizational culture. Identifying what is must for supporting the change process (customers support, training and workshops). Identifying barriers to sustaining change. (Trade unions demands, existing employees fear for loss of job, training cost and experts) 2. Developing different ways to sustain the change. Ensure full leadership support. Create a rewarding system (Remember pay is not the only motivator, job satisfaction is even vital). Establish several feedback systems. (CMMS installation and such organizational change would be ineffective if customer is not satisfied or Carbon footprint and Energy Emissions targets are not achieved). Adapt with the organizational structure as necessary. 3. Provide additional support and training if and when required. Keeping everyone at construction industry informed and supported. 4. Celebrate success! (Vital) Key Points Lewins change model is usually simple and easy to understand framework for managing organizational change. Change, when it comes, cracks everything open, (so it is important that it is properly managed) Dorothy Allison in O Magazine, January 2004. By recognizing three distinct stages of change, management can plan thereby to implement the change required. They should start by creating motivation for change (unfreeze). When moving through the change processes promotes effective communications and empower people to embrace the new ways of working (change). Then the process ends when management return the organization to any sense of stability (refreeze), that is so essential for creating the confidence where from to embark on the very next inevitable change. Other theories that can be put into practice are: John Kotter - Change Model The change can even be brought about using one another theory given by Kotter. They cover following eight steps for successful change. Step One: Creating the Urgency Step Two: Forming a Powerful Coalition Step Three: Creating a Vision for Change Step Four: Communicating the Vision. Step Five: Removing any Obstacles Step Six: Creating Short term wins Step Seven: Building on the Change Step Eight: Anchoring the Changes in Organizational Culture Richard Beckhard and David Gleicher Formula for change: Critical analysis of the particular situation selected: The Challenges The main driver for any of the change embodies in the very concept of triple bottom line, where organizations have to consider their corporate social responsibility along with the environmental accountability with in any framework of economic sustainability. Change is not easy the biggest challenge remains with convincing business leaders the very need to invest in technology in order to drive down costs or to improve the quality. This is often at times difficult notion to embrace specially. This is also because the initial technology is not cheap and IT investment means a heavy expenditure. Placing technology high on the agenda For proper installation of CMMS it is important to tackle to major issues, primarily ensuring technology is seen as a strategic tool not just a commodity. This also means it requires a serious agenda at the board level with appropriate representation and sensible budget. The second challenge is ensuring the IT budget is spent wisely. All IT projects should be strategically justified with a well defined business case and also ROI (return on investment). If such procedures are not followed than the result could even be negative NPV (Net Present Value). Risk Management It is important that risk should be managed. There are several types of risk associated with installation of CMMS. The biggest is that its wrongly installed or does not work as expected, moreover the installation phase could even outpace the time bounded. So, delay also needs to be managed. Risk of software failure once installed are even higher, trained experts need to be higher in order to reduce the cost of idol time and getting off the shelf maintenance. Regular workshops to train employees would also be essential to decrease the threats pose to software usage. One of other risk is the risk of software complete damage through accidents, such as fire outbreak, power failure, water leakage etc. To tackle such situations it is impudent upon the construction industry to keep side backups to avoid information loss. Uniting the Supply Chain One of the biggest problems usually encountered would be the ability to provide CMMS infrastructure throughout the supply chain. Once the project begins on the site it becomes difficult and costly to receive fast and reliable Wide Area Networks (WAN)in place, specifically for short duration projects, resulting in break down for the use of technology and therefore the adoption of manual procedures which would then lead to inefficient processes along with additional time and cost implications. Moreover, another problem could be electricity failure or shortages at construction locations. As each site location for construction would be different, it is important that all problems are predicted before hand and accounted for in the planner before starting working on any buildings constructed. Understanding the options available in case of default and applying them appropriately would undoubtedly bring significant project improvements (both in terms of time and cost). Management of Key Peoples For appropriate bringing on change it is vital that all key people are involved in the process of change. These cover not only managers and the leaders but even the those at the lower level of hierarchy mainly the IT employees. New employees would have to be hired who need to understand the CMMS and it’s working. Existing Employees need to be given surety of safe future ahead as prospects of change would have threaten their job security creating fear in large number and hence reducing their motivational levels. Employees who are made redundant due to new technology need to be given retirement benefit plans and other benefits. Customers need to be given surety for green measures taken; customers should add value to this change as they won’t be willing to pay more unless they accept it. Other stakeholders such as government and general public should even be raised awareness so that company is seen as a good corporate citizen. Differentiating from the competition The goal of differentiating ones work from the competitors would only add value to construction industries goodwill. It is Important that new technology should be used as a differentiator and gaining market through demonstration of measures taken by company to manage costs and quality. Though, it is unlikely the competitors do nothing in response to this move by construction industry. Personal statement about coping with change Undoubtedly the construction industry has just embraced CMMS technology. It is time to start utilizing this eco innovation technique to achieve business goals of going green in terms of reducing Carbon footprint and energy emissions in buildings and to drive client satisfaction. In much tighter and more competitive market place, this industry needs to be a savvier with the manner in which it executes projects. It should be remembered that throwing money or manpower at the any cause of concern is no longer a viable solution. Change must be appropriately embedded at every level of hierarchy within the construction industry. Management must not only recognize the vitality of innovation but must be satisfied with it (Tidd, J. 2005) Hence the best change would be one that forms the very part of Organizational culture. Organizations that see technology as way of improving performance should prepared to handle any difficult times ahead. Work Cited 1. Accelerating change, and increasing its likelihood of success in Using the Change Curve 2. Beckard Change Model in Change Innovation 3. - Boyd, D. and Chinyio, E. (2006) Understanding the construction client, Blackwell, Oxford; 1 edition (November 21, 2006), 26(1) 4. ‘Construction Industry’ in Free dictionary, 5. Change in online dictionary (2011) 6. Dorothy Allison ‘ Change’ in O Magazine, January 2004 7. Eco-innovation: Potentials and challenges of tomorrows technologies (conference held in Copenhagen 2005) 8. Frank Blog 2009‘Understanding the Three Stages of Change’ in Lewins Change Management Model, 2009 9. Kathleen Norris (2004) Quote in O Magazine 10. Kotter ‘Kotter 8 step change process’ in Change Model 11. ‘Managing Organizational Change’ in The Encylopedia Inc. 2011 < http://www.inc.com/encyclopedia/managing-organizational-change.html> 12. ‘NBT Experts in Moisture Modeling’ in Sustainable times, 2011 13. Shaw, P. (2001) Changing the conversation in organizations: a complexity approach to change, Routledge, London 14. Tidd, J. (2005) Managing innovation: integrating technological, market and organization change (3rd Edition), John Wiley & Sons, Chichester Read More