Establishing information environment and leadership structure to improve construction performance: case
Indumathi Lnu, Spring 2006
Brief:
This research establishes that construction industry non-performance is directly related to the low bid project procurement system, which resembles traditional hierarchical management structures and is characterized by vertical flow of information and lack of performance information. Successful companies in other industries have adopted leadership structures to improve performance. Content analysis of literature review was used to identify eight essential characteristics of leadership structures, namely, open access to critical information, performance metrics, high performing teams, vision, trust, change, empowerment and minimized management. Deductive logic, Information Measurement Theory, and Kashiwagi Solution Models were used to prove that information environment is related to leadership and is essential to establish leadership structures. The principles of leadership structure and information environment were used to develop a performance based project procurement process and an excel-based application to assess performance of construction projects and participants. US MEDCOM is currently implementing the proposed system to improve construction performance.