Ackoff Idealized Design Skanska International Group 2 U7 Group Activity April Einstein Janet Hightower Idealized Design Background Background of idealized Design Idealized Design Started ATT (1950). Bell called a hands on meeting • “Best ideal-seeking system imaginable” Ackoff (1993) • Project Idealized Design – The idea is to start with the entire telephone network being destroyed. • Implementing an Idealized Design – The goal is to build a new organization to replace the existing one. Two Constraints: • Technologically feasible • Operationally viable One Requirement • Capable of rapid and effective learning and adaptation, and current technology. Idealized Design Perimeters Skanska’s ability to learn and adapt. Skanska’s Idealized Design: Specific design perimeters • The design is capable survive in the current environment. • The designed does not need to be implementable. • The designed is capable of rapid learning. • The design includes successes and failures. The designed is capable of adaptation: • The new design adapts to internal and external changes, which affects overall performance. • Taking action and anticipating change. • Skanska International Team is committed to finishing the design. Idealized Design Steps Three steps for the new design process (mission statement, design quality, and design focus) at Skanska International. Step One: New Mission Statement Old mission: New mission: • Skanska mission statement focuses on sustainability environmentally responsibility, by reducing the impact on natural resources in building all construction and development worldwide and preserving the world’s natural resources by ensuring the ability to flourish. • Skanska mission statement focuses on sustainability green building in commercial renovation area, with suppliers of the highest quality products to reduce energy consumption and bring innovative designs into the marketplace. Idealized Design Steps . Step Two: Design Qualities, and Step Three: Design Focus Design Quality: New idealized organizational qualities include quality sustainable green commercial renovation services by Skanska International. Design Focus: The new design at Skanska includes a two key leaders in procurement and office management with a knowledge of sustainable operations, innovation, and commercial renovation. Idealized Design Organized Stakeholders Roles and Organization Identity Skanska’s statement of reasons for redesigning the whole organization starts with the need for change with a refocus on commercial renovation services to ensure sustainable green building for the commercial industry. The unique qualities Skanska will seek to be effective will combine people, products, and prestige. The primary stakeholders and roles: Procurement Leader April Einstein over architects and labor world wide. Office Leader Janet Hightower over HR, Financial, and all leaders worldwide. Organizational System includes (debtors, employees, consumers, suppliers, government, and investors and lenders). Skanska is a leading worldwide commercial construction company headquarters in New York, and Sweden. Skanska’s organization’s objectives are measured in areas of building sales, project completion, and compliance with green sustainability regulations. Skanska will thrive by hiring the best sustainable energy conscious experts in the industry of commercial construction. Idealized Design Properties Skanska's Statement of Properties The properties of Skanska’s new idealized design is Commercial Renovation Services that are obtained with procurement leaders within each local, regional area worldwide. The aspirations needed are sustainable green building designs, commercial leaders, architects, suppliers, purchasing agents, and laborers, with the understanding of energy savings. The subjects to be covered for Skanska’s commercial renovation service are skilled fabrication and quality installation using sustainable green designs. Specific areas to be included are: • Inputs and environment • Design specifications • Market and customers • Product and services • Organizational process • Management and Personnel • External Affair and relationships Idealized Design Specifics 1 Skanska’s Inputs The re-designed focus of Skanska replaces the construction focus towards a commercial property development for commercial renovation with existing or new commercial property. The materials needed are specifically designed for sustainability within the commercial property development area. The materials have a one week turnaround and consist of building and supplies from each local region. The idealized design around the procurement of sustainable green building materials of the highest quality required for commercial renovation. Skanska’s priority is to pay for the highest quality green products in compliance and within specifications in building materials available. However, the goal is to meet cost objectives to solidify the financial goals of the new idealized design. Idealized Design Specifics 2 Skanska’s Markets and Customers - Outputs The users and customers will be the outside suppliers of Skanska's green sustainable building materials. The internal procurement group, and design group will work with the users and customers in each local region. Skanska’s supplies are located in each local region worldwide. However, there is an encouragement for procurement towards local suppliers to stimulate the economy and save transportation cost. Shipping will be limited to local regions to support energy consciousness. Areas of marketing and new customer approach, Skanska will host vendors in local markets to target new commercial clients. To maintain and nurture relationships Skanska will have internal incentives for achieving goals by identifying suppliers in each local region. Skanska will get feedback on metrics of how many project milestone goals are achieved on time and with cost savings per each commercial renovation design. Skanska’s competitors are other green construction companies worldwide. Skanska is differentiated from their competition by meeting and exceeding green building standards in areas of commercial building renovations into each local region. Idealized Design Specifics 3 Skanska Commercial Renovation Service Skanska’s new commercial renovation service is designed, developed, and initiated with procurement leaders, office leaders, and project managers in each local region with human resource availability. The procurement leaders can make decisions on discontinuance (suitability) or repurposing of each commercial renovation property. The office leaders will track the green, sustainable quality products using metrics (i.e. shipment) number, timing or quality will be rejected for not meeting specifications. The areas of reputation at Skanska are to ensure the highest quality in green building and sustainability materials. The areas of research procurement leaders identify local suppliers of green building materials using the top five local markets available to compare quality, cost, and availability. In the future, Skanska will consider expanding to other suppliers and internal groups to include office furniture from green suppliers using recycled material for each commercial property development which gives great options for the customers. Idealized Design Specifics 4 Skanska’s Organization and Process Skanska’s new commercial renovation service will be developed internally to have quality control. Skanska functions should focus on sustainable green, quality and a fast finished product targeting green sustainable conscious commercial buyers, in the local region. The desired results are to achieve a target goal of over 100 green, sustainable commercial renovations per month. Skanska will create procurement and office organizational units for services and functions internally with quality control standards. Skanska’s new units will be initiated with a launch date making the focus worldwide from that date to terminate old design on those dates. There will be no internal services charged, the organizational structure for Skanska will be constructed with two main control agents, procurement, and office leadership. Skanska will measure performance annually and determine the outcomes based on profitability and relationship of suppliers. While restructuring Skanska, the joint venture developing the new commercial renovation service will include stakeholders within the organization with opportunities to own shares. Idealized Design Specifics 5 Skanska’s Management and Leadership Levels of management: All leaders fall under the Office leadership (CFO) Financial, Control and all leaders and then the Procurement leadership (CEO) architects and labor worldwide. The Planning and policy decisions at Skanska are vertical integration and horizontal coordinated with Control Officers in each local, regional office worldwide. The manager’s authority and responsibilities are equally controlled with a majority consensus in both office and procurement departments. Skanska’s office leadership is in control of all planning and policy decisions worldwide with the input of procurement. Skanska provides support systems within the human resource department for all stakeholders. Skanska leaders will control decisions with the input of all stakeholders views and learn from experiences, to adapt to internal and external changes hiring outside organizations in areas of education, leadership, and green products. No environmental surveillance due to compliance checks by local regulatory agencies. The control officers will visit each location and give reports to the office leadership. The managers and leaders at Skanska will internally evaluate each division using 360 feedback with reports with quality control and HR making recommendations for change. Skanska managers will be compensated with shares in the company and with perks (vacations and bonuses). The anticipated environmental and organizational change will increase revenue, increase the number of green projects, and be conscious of the impact the lives of the stakeholder’s wellbeing. The internal office communication with inside office emails, and conference call meetings monthly to touch base on green goals. Idealized Design Specifics 6 Skanska’s People - Personnel Office leadership (CFO) Procurement leader (CEO) Established facilities and All financial business Development and identify equipment are used, with a matters. The recruitment promotion and demotion, with compensation and reassignment overseen by the office leaders and HR. Special quality programs (wellness) are implemented by HR with the assistance of external organizations in each local, regional area. meet all green goals and production. Procurement will hire experts with the proper green certifications and establish business agreements will comply with all ethical business practices. Facilities and equipment and training. Including additional if needed. The green building materials, to Levels of decision making 2: Levels of decision making 1: employee, with orientation budget to purchase relationship of suppliers of and hiring of all new local, regional offices are established worldwide in the major metropolitan areas. There are goals to expand the markets and facilities. Resources are allocated through HR and Office leaders in each geographic scope. Idealized Design Specifics 7 Skanska’s External Affairs and Relations All external affairs are handled by office leaders in areas of: • Support • Rules • Regulations • Accountability All external affairs are handled by procurement leaders in areas of: • Green Compliance • Liaison with Suppliers • Product Reliability • Insure Quality Skanska will utilize divisions of local educational institutions specializing in green sustainability and commercial renovation. Relationships with all professional businesses needing renovation with Skanska’s innovative commercial designs. • Expert remodelers, Green Industry Compliance, Commercial Builder Association Awards sets Skanska apart from all commercial renovation organizations. Ackoff Idealized Design Skanska’s New Idealized Design Summary • Formulate the Mess in four steps (Prepare a system analysis, prepare an obstruction analysis, make reference projections, and prepare a presentation of the mess). Skanska is trying to avoid failure of low quality, non-compliant materials which would delay projects, increase tasks and damage reputation. • Skanska wants to enable planners to implement sustainable green materials with local suppliers identifying a gap (ends planning) in current purchasing policies. • In means planning at Skanska planners select courses of actions, to bring about better practices, quality projects, a variety of programs, with a standard of ethical policies to be applied. • The resource planning at Skanska obtains the proper resources from the involved departments. • After Skanska has designed of implementation by creating schedules with qualified people on the projects at the right time at the right location to get the job done. • Skanska monitors the schedules through the design of controls by utilizing appropriate schedules and monitor planning to meet office leadership and procurement guidelines. Project management software helps Skanska achieve results in areas of interactive planning and interdependency, to meet green goals. Idealized Design Reference Ackoff, R.L. (1993). Idealized design: Creative corporate visioning. Omega 21(4):401-410. Skanska International. (2016). About Skanska. Retrieved November 19, 2016, from About Skanska Quick FactsSkanska website: http://www.usa.skanska.com/About-Skanska/Quick-Facts/