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

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

By Kenneth T. Sullivan, John K. Michael

June 2008

Abstract
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.