Industry Transformation: Testing Best-Value and Leadership in Non-Construction Industries

Authors: Kenneth T. Sullivan and John K. Michael

 

The Performance Based Studies Research Group (PBSRG) in the Del E. Webb School of
Construction at Arizona State University has conducted research in the development and
application of best-value and leadership based process models in construction for the past
14 years. Despite significant success in terms of construction performance, the concepts
and ideas of the best-value/leadership process models have met consistent resistance.
Due to the construction industry’s characteristics, fragmented system, and inability to
change easily, documenting industry impact has been difficult. The PBSRG has
embarked on an effort to test their research concepts of best-value/leadership process
models in industries outside of construction, with a less fragmented system, but with
similar characteristics. In this way, the authors hope to gain a better understanding of the
research models’ impact on an industry. This paper presents the initial testing of the bestvalue/
leadership process model in the area of dining services, specifically on a $300+
million contract for one of the largest campuses in the United States, Arizona State
University. The initial results show a significant increase in guaranteed money,
performance, and risk minimization. The expanse of the effort seeks to create an industry
transformation model to be first tested in dining services and then brought back to the
construction industry as an example to drive change in the future.

Key Words: Risk minimization, best-value, leadership, industry transformation

Key Words: Risk minimization, best-value, leadership, industry transformation