Lean Construction Institute
Provider Number #H561
Organizational Structure and
Cooperation: Decision Making in Design
Course Number: 201301311000
Greg Howell, LCI
Date: January 31, 2013
Credit(s) earned on completion of
this course will be reported to AIA
CES for AIA members.
Certificates of Completion for both
AIA members and non-AIA
members are available upon
request.
This course is registered with AIA
CES for continuing professional
education. As such, it does not
include content that may be
deemed or construed to be an
approval or endorsement by the
AIA of any material of construction
or any method or manner of
handling, using, distributing, or
dealing in any material or product.
_______________________________________
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Questions related to specific materials, methods,
and services will be addressed at the conclusion
of this presentation.
SAMPLE OPTIONAL SLIDE
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© Lean Construction Institute 2013
SAMPLE SLIDE
Course
Description
The presentation proposes new ways to
understand the organization and governance
of Lean/IPD projects. The nature and function of
organizations and the influence on behavior of a
sense of fairness over economic interest is
offered to support a new ways to understand and
improve the delivery of value. Participants will be
invited to join a research initiative to explore if
and how these ideas advance understanding
and practice.
Organizational Structure, Cooperation,
&
Uncertainty:
Decision Making in Design
It is not from the benevolence of the
butcher, brewer, or the baker that we
expect our dinner, but from the
regard to their own interest.
Adam Smith, 1776. The Wealth of
Nations. Book 1, chapter 2.
An opening stimulation
People have a sense of fairness.
People will punish those they deem
unfair even when it costs them money.
Person to Person, the sense of fairness is
more powerful than economic gain.
How selfish so’ever man may be supposed,
there are evidently some principles in his
nature, which interest him in the fortune of
others, and render their happiness
necessary to him, though he derives
nothing from it, save the pleasure of seeing
it.
Adam Smith, 1759. The Theory of Moral
Sentiments. Chapter 1, p.3.
• Those in circle each start with 10$
• They contribute anonymously to the pool
• Center doubles total and redistributes equal amounts
Free Riders
Dealing with Free Riders
Fehr & Gachter: Cooperation & Punishment. American Economic Review 90,4
(2000a). Altruistic Punishment in Humans. Nature 415 (2002)
But what about the power of
contracts?
“The discrete transaction, sharp in by clear
agreement and sharp out by clear performance
is rare in law and economics.”
Ian Macneil 1974. The many futures of contract.
University of Southern California Law Review 67
(May)
© Lean Construction Institute
2012
14
© Lean Construction Institute
2012
15
So What is the Purpose of Contracts
on IPD Projects?
To fund the participation of people from a
variety of companies in a common endeavor and
to purchase the wherewithal necessary to
complete it.
Glenn Ballard, (Near Martinez California, 2013)
Basketball
Cooperation
Interdependent –
Managing the Flow
Score by momentary overlap, 5 playing as one
Coaching - Communication, conversation and
listening skills
Baseball
Autonomy
Football
Control
Sequentially dependent
Following the plan
Scoring happens by a series of planned
events.
Coaching in skill and individual response
Independent – Filling out the Card
Scoring – Statistical improbability
Planning – player selection
Coaching – Skills and situation response
Game Plans – Robert Keidel
Cooperation
Basketball
Placate
Collaborate
Vacillate
Negotiate
Dictate
Global
Control Perspective
Football
Abdicate
Local
Autonomy
Sensitivity Baseball
Two neighbors may agree to drain a meadow,
which they possess in common; because ‘tis easy
for them to know each others mind; and each must
perceive, that the immediate consequence of his
failing in his part, is the abandoning of the whole
project. But ‘tis very difficult and indeed
impossible, that a thousand persons shou’d agree
in any such action; it being more difficult for them
to concert so complicated a design, and still more
difficult for them to execute it.
David Hume, 1793. Treatis on Human Nature.
Section vii, p. 304.
Research Questions
1. How do we develop & keep a shared view of our
organization and payoffs?
2. How do we know and what do we do when we
are riding free?
3. Identify Free Riders? Get them back in the game
or off the field? How does it work when
collocation is continuous?
Intermittent?occasional? virtual?
5. How do we match team structure to the nature
the uncertainty/ contract, $ & the task at hand?
The Americans…are fond of explaining all the
actions of their lives by the principle of self interest
rightly understood, how an enlightened regard for
themselves constantly prompts them to assist one
another… In this respect I think they frequently fail
to do themselves justice; in the United States as
well as elsewhere people are sometimes seen to
give way to those disinterested and spontaneous
impulses that are natural to man; but the
Americans seldom admit they yield to emotions of
this kind.
Alexis de Tocqueville, 1835. Democracy in America,
Vol 2, chapter VIII.
Sample Last Slide
This concludes The American Institute of Architects
Continuing Education Systems Course
Lean Construction Institute
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