We establish value and ROI every day of our lives—constantly comparing how our time, money, and resources can benefit us most.
Shouldn’t we do the same on our massive E&C projects? Fluor and other Global Industry Council members
identify “establishing value and ROI” as one of the top challenges for the E&C industry in their inaugural report, Five Keys to Unlocking Digital Transformation in Engineering & Construction
Download: Five Keys to Unlocking Digital Transformation
Launching a cost-benefit analysis might seem easy – but many organizations struggle to measure business processes and how they impact their bottom line:
- Which process do we prioritize?
- How do we define success?
- What are the hard metrics that matter?
The Global Industry Council identified 4 steps to establishing value and ROI:
- Gain executive support: Leadership must agree to a set of “metrics for success”—whether you’re assessing a new technology or implementing an innovation. Executive approval ensures that the metrics are aligned to the overall business needs.
- Establish a baseline: Organizations must first establish a current baseline to measure technology’s ROI. Developing a baseline upfront will help assess the impact after implementation. For example, Fluor established a simple, yet effective metric to report on the value of innovation against project delivery on a company-wide level. Their baseline target is a 1:10 ratio—meaning at least 10 projects must use an innovation to be deemed successful. Fluor has also proven that metrics don’t need to be complicated calculations.
- Develop a measurement framework defining:
- What will be measured and evaluated
- The process for collecting the data and managing access
- How to turn raw data into insights
- How these insights will be conveyed to different audiences
- How information will drive action
- Share successes: Identify improvements and share with the wider business by setting a baseline and tracking performance over time. Project teams will quickly realize the great opportunity for the business and begin implementing their own new systems and processes to strive for similar improvement.
Following the four steps identified by the Global Industry Council in Five Keys to Unlocking Digital Transformation in Engineering & Construction
will help businesses overcome resistance to digital transformation with proven measurable results.
Five Steps to Digital Transformation: a must-see webinar
The Boston Consulting Group and AECOM veteran share the top 5 E&C digital tech challenges and how to overcome them. Register for the webinar here.
March 13, 11:00am (New York) /4:00pm (London). For additional best practice tips on how to improve business process management, watch our webinar
with Patty Sullivan – Strategic Initiative Group Project Manager for Burns and McDonnell, “Show me the ROI – Concrete Results From Process Improvement”.