Every decision-maker in the home building industry has at least a nodding acquaintance with Building Information Modeling, or BIM. Awareness is such that builders can no longer claim ignorance as the reason for missing out on what is shaping up as the most transformational business platform to come along in 25 years. So why are so few companies seizing this opportunity?
BIM’s shallow adoption curve (at least so far) resembles that of an older technology: the personal computer. When PCs first appeared in the late 1970’s they were “word processors”—fancy typewriters that didn’t need correction fluid. Although those early machines raised productivity somewhat, no more than a handful of innovators saw their potential. As computer software and hardware improved, however, early adopters began re-imagining the workplace. The productivity and creativity revolution has driven the world economy for the past 30 years exploded.
BIM is now moving from the innovator to the early adopter stage. Although fewer than 5% of builders currently take advantage of BIM, a number of large firms have been implementing and working towards implementing BIM over the last 3-5 years. A number of smaller builders have already achieved significant benefits from fully integrating BIM. Once a couple of larger companies get fully on board, the competitive advantage they gain will see the rest of the industry playing catch-up.
One reason new technologies like BIM are slow to catch on at first is that people tend to have internal conflicts between the drive to learn new things and seize new opportunities, and a fear of letting go of old habits. Individuals, organizations, teams, cultures and societies that successfully reconcile these conflicts are the ones that dominate their markets, while those unable to do so fade into irrelevance.
When it comes to BIM, these internal conflicts manifest in three common ways: lack of imagination, an unwillingness to kill sacred cows, and a reluctance to ask for help. Each is within the builder’s control to change—if they have the will to do so.
No Motivating Story
The fact that BIM is a transformational platform means that reaping its benefits requires a mindset that can envision new ways of doing business, a mindset that has to come from the top. A BIM initiative will only succeed if leadership clearly articulates the reasons for pursuing it.
The best leaders motivate by using stories to paint vivid pictures of what the initiative will accomplish. Effective stories start by emphasizing the broad-brush business benefits of BIM rather than the technical aspects. Only then do they drill down to specifics that back up those benefits.
Possible story lines include:
A unique customer experience. This type of story explains how the company’s future depends on its ability to wow customers. It also shows how the BIM platform is the foundational tool that will allow the company to deliver on its promises and vanquish its competitors.
One supporting example is BIM’s ability to link design choices to a cost and pricing database. This makes the selection process informative and enjoyable by giving customers real-time feedback on how each choice impacts price. Another is that 3D headsets such as the Occulus Rift will convert BIM files made in programs such as Revit or SketchUp into immersive walkthroughs that let buyers feel like they’re actually in the home.
Things like instant option pricing and virtual reality capabilities can even help reduce the need for model homes. This is big. A large home builder might have several hundred subdivisions under construction nationwide, with a typical subdivision having two to three model homes that cost north of $100,000 apiece to build and tie up lots that could otherwise be put up for sale. Reducing the number of models by even a third will free up capital that can be used to fuel growth for the company and its employees.
An agile business. Here you remind everyone that unpredictable changes are inevitable in the home-building world and that the more agile the company, the better it will cope with these uncertainties. You need to make the case that one of the best ways to gain agility is to fully integrate BIM into the company’s processes.
For instance no one is certain which of the many emerging home technologies will be most attractive to younger buyers. But one thing is certain: a BIM-enabled options database that lets them choose from a menu of tech features, and that instantly shows them how each will impact the home’s final price and performance, will be a winner with this demographic.
Painless growth. The shortage of qualified workers is a real brake on growth for this industry. Because the BIM platform reduces the labor need to sell, design and build homes, builders who embrace it can grow without adding staff. Consider two of the many possible examples:
· A BIM system that includes the company’s trade contractors can automate much of the scheduling process. This frees up job superintendents’ time to the point where they can potentially manage more homes.
· An integrated system means more accurate purchase orders, which reduces mistakes and cost overruns.
Note that while software enables the above processes, the business benefits are what will motivate staff to get on board.
Sacred Cows
The problem with sacred cows is that you have to feed them and clean up their poop—that is, they suck up resources and create a lot of crap.
When it comes to BIM sacred cows are things that weaken or block the initiative but that people don’t want to change. They include entrenched business practices, as well as relationships with service providers and trade partners that balk at adopting BIM.
Take the example of a division manager who believes it’s not possible to operate profitably without a particular architectural or engineering firm, even though that firm resists adopting BIM. Someone higher up needs to confront that manager and insist that the firm either get on board or lose the division’s business. Basically, leadership needs to channel its inner Dr. Strangelove and make the point that “not only is it possible, it’s essential.” The message has to be that we can no longer do things the old way.
A willingness to slaughter sacred cows and fully integrate BIM into the organization yields major rewards. Leaders who are open to change and willing to toss out existing organizational charts and job descriptions create the potential to redesign the organization in ways that are hard to imagine.
Believed Self-Sufficiency
Dogged determination and self-reliance are two admirable and plentiful qualities in our industry. But while we have lots of brilliant and driven leaders, collaboration is not something we have in abundance. Yes, incredible collaboration happens every day on job sites and in offices around the industry but these interactions tend to be ad hoc—they’re built on informal relationships and often happen in spite of company culture.
The companies most likely to succeed at transformational change are those with internal cultures of collaboration. My previous article “A Fresh Take on Change Management” goes into detail on how to start building such a culture.
These companies also recognize the need for outside help. Fortunately, BIM knowledge is growing throughout the home building industry, with a growing cadre of software companies, architecture and engineering firms, product manufacturers, and change management consultants who understand the business and technical aspects of BIM. Taking full advantage of these resources will save a lot of wasted time and effort.
The results of going it alone can range from a partially successful initiative that takes longer to implement and costs more than it should, to one that totally fails.
You can raise your chance of success by doing your research before developing a plan for BIM implementation. Then call on the experts not just in the technical aspects of the software but also in how to use this technology to create new business process and to engage suppliers and trades. The goal is to create a workable plan to implement BIM and manage the transformation of your organization, its processes, systems and people.
