Overview

Background & History

The Performance Based Studies Research Group (PBSRG) is a non-profit research group at Arizona State University. Since 1994, the PBSRG has applied best value and leadership based concepts to develop organization and service models that enhance efficiency, performance, and minimize risk.

The Developed Models:

  • Reduce client management requirements;
  • Create an effective risk transfer and minimization framework;
  • Assist in defining performance and value (for entities, departments, vendors, or individuals);
  • Establish accountability through measurement;
  • Motivate continuous improvement; and
  • Increase organizational efficiency

The process models provide a method to define, measure, analyze, improve, and control (six sigma) the performance of services, vendors, and personnel. The best value model is the most efficient methodology to deliver services (and has been most extensively tested in construction, but has also been tested in numerous other areas). It eliminates the largest obstacles to efficiency by using performance information and information theory. It has been documented where best value minimizes management by up to 90% and increases performance to an average of 98%.

The PBSRG’s best value and leadership concepts can be implemented within an organization and overlaid across any procurement and delivery structure. Within construction, it works in design-bid-build, CM at Risk, Design-Build, IDIQ, JOC, and can even enhance low-bid scenarios. It also is applicable to services and purchasing, both short term (i.e. consulting/software, equipment buys) and long term (i.e. janitorial, dining programs, etc.).

Beyond the project and service level, it creates a paradigm shift in organizational culture through a new enterprise model that seeks to enhance any existing process and remove inherent bureaucratic inefficiencies through analysis, alignment, measurement, and accountability. The PBSRG does not reconfigure or drastically change any existing systems, the research only seeks to enhance and incrementally adjust processes to encourage increases in performance. The greatest value in the research effort is the change it brings and sustains at the organizational level.

Detailed Education and Research Capabilities:

PBSRG conducts the following activities related to education and research:

  1. Educate and collaborate with core personnel of a research client to create a strategic plan for the testing, analysis, and implementation of best value and leadership based concepts and processes within an existing organization or environment. This could include:
    • Assistance in the development of a strategic plan, both at the project level and organizational/department level. The strategic plan will entail goals, constraints, opportunities, and risks, with action and mitigation plans for each.
    • Identification of potential test and education opportunities within the client organization.
    • Education, testing, and process analysis schedule.
    • Identification of measurements to quantify change and value brought by using best value and leadership concepts (or lack of change/value). This will indicate if best value initiatives within the client group are and can be successful. The value measurement can be done on process and managerial structure applications as well as on projects.
  2. Identify, educate, and train area leaders, project managers, supervisors, heads of facilities and any other key personnel or organization areas that may benefit from best value and leadership principles and processes.
  3. Once test scenarios are identified, the best value and leadership research can be applied in the following scenarios:
    •  Project and Services Level: the best value process can be applied to the selection, contracting, and measurement/monitoring of procured services. This includes:
      • Finite project situations (such as construction, purchasing (e.g. software or equipment) or short term service/consulting). The best value process can be overlaid onto any existing delivery method.
      • Long term service agreements (such as service contract for janitorial, dining programs, security, etc.)
      • Each of these situations will received the following (including transfer of all PBSRG pertinent forms, documents, and information to the client organization):
        1. Development of an RFP for the selection, working within the constraints and requirements of the client. Including schedules, scope, etc.
        2. Education and testing of a best value selection process.
        3. Education of vendors
        4. Collection of vendor past performance information
        5. Risk assessment and value added plan evaluation
        6. Interview of key personnel
        7. Decision-making model development, execution, and analysis
        8. Education of preplanning and quality control
        9. Owner assistance in contracting the vendor
        10. Development and Implementation of project and performance tracking tool
    • Measurement and Existing Process Improvement: the best value process incorporates leadership principles that use measurement and accountability systems to instill a culture of risk identification and minimization, along with performance and continuous improvement.
      • The PBSRG can implement and track a simplistic information process that will motivate vendors and personnel to exhibit leadership traits. This can be applied to existing process (such as estimating regimes and LEED) to measure value, performance, and identify potential areas of improvement.
      • Baseline performance will be established and any changes/deviations due to process enhancement will be measured and benchmarked.
      • The same information process can be used externally and internally.
    • Organizational Transformation: the fundamental concepts and principles that have led to the high levels of success in the application of the best value process are the same upon which an organization, company, or group can transition itself into a more efficient and productive entity. The movement to a “Best Value – Leadership” based organization requires vision, the ability to change, and a process that allows the transformation to effectively occur. Our research process can help an organization:
      • Identify if they are capable to transforming into a best value leadership based group
      • Set a strategic plan to make the transition
      • Identify risk and encumbrances to change – allowing them to minimized or avoided.
      • The move to efficiency and measurement will cause resistant. A plan must be in place to manage any corporate “pushback.” The greatest aid to sustaining an efficiency model is proper data collection that can show:
        1. The value added by the change
        2. The gains in efficiency and the reduction in work caused by the change
        3. The path forward and what benefits it will bring.
      • The transfer of education and knowledge allowing an organization to implement any best value and/or leadership based philosophy without the aid of ASU. The people within the client organization will become experts and this knowledge transfer will filter down through the group and into all vendors, suppliers, consultants, etc. It is a new enterprise model
  4. Research and documentation of all initiatives undertaken by PBSRG at the client organization. This will result in:
    • Detailed case study and implementation history, allowing transfer of knowledge, lessons learned, and step-by-step procedures used to other client sectors and groups.
    • Measurement of change and value from before best value application to after best value application.
    • Catalog of “How to” manuals and case studies for application of various best value methodologies to specific project or service situations, including any process evaluations and enhancements.

The PBSRG has performed research on hundreds of projects using IMT and PIPS concepts. The impact of the research has shown:

  • Substantial increase in projects completed on time
  • Dramatic increase in the number of projects with no contractor initiated change orders
  • Very high customer satisfaction
  • Reduced management by up to 80%
  • Increase in overall construction performance without costing more money
  • Overall increase in the efficiency of the procurement process.
Leadership Society of Arizona (LSA)
The Leadership Society of Arizona (LSA) specializes in the development of leadership attributes of students. LSA strives to improve students' communication skill and management techniques. LSA offers many opportunities for training to students through professional seminars, workshops, and club activities. LSA is working to prepare students for tomorrow. Learn more about the club.
© 2008 Performance Based Studies Research Group