Construction & Data: A Messy Relationship
Construction is a great industry to be in, but it’s also extremely messy in terms of data collection.
Getting status updates, tracking deliveries, time-phased costs that tie to a schedule – these are just some of the metrics that are tracked for each project.
Tracking these metrics at the project level can be simple enough, but how about at the regional level? And how about across trades or project types?
I created an example Portfolio Health dashboard below to showcase what’s possible when you can integrate data at the portfolio level. The dashboard looks at:
- Safety
- Cost performance
- Procurement (delivery waterfall chart)
- Design and RFI tracking
- Change management
Portfolio Level Integration
The power to look at performance at the portfolio level can be a game changer for construction companies.
I’ve seen a lot of construction companies that maybe have some data, but it’s really only useful to the project manager and maybe the PM’s manager.
Developing a strategy for data collection that allows for standardization is important. You can look at the entire portfolio and answer:
- Trades – How are framers performing in the Midwest? What are causing the framing differences between project x and project y in the Midwest?
- % Complete – What is the percent complete for project z? What is the percent complete for this subcontractor? What is the percent complete for this division of the company?
- Cost – What is the cost/sqft for the East Coast? How does that compare to the West Coast? What projects have the largest variances? What trades have the largest cost variances?
These are just some of the questions you can begin to analyze when there’s a data culture established and supported in a construction company.
A lot of insights are lost or don’t even occur if there is no support and emphasis on data collection and standardization.
Construction companies can create some very easy wins by empowering groups and individuals with data backgrounds.
Creating a weekly project report just because the client requires it is one thing. But looking at the data collected and how/if it relates to other projects is where the real insights happen.
There should also be a cost/benefit analysis when determining what to track (and to what detail), but as W. Edwards Deming said:
If you can’t measure it, you can’t manage it.