Turner Construction Company: Indicated Outcome Report System Turner is one of the largest building services and construction contractor companies in the United States. It presents “a network of offices in North America and around the globe, with a staff of 5,000 employees, and as a North America-based, Turner? s operation was divided into territories where each one is headed by a territory general manager (TGM), who are able to offer clients accessibility and support.
”Turner being such a large construction company needed a system that allowed it to evaluate risks, and manage administrative information effectively; they use a management system called IOR (Indicated Outcome Report) which allows them to see the red flags, leading project managers to ask the correct question at the right moment in order to limit risk and increase their ability to succeed in any kind of project. “For this company the IOR system is the backbone of most of their formal reporting systems. ” In every project alignment is essential for the successful development of the project.
Getting everyone on the same page; where project goals, strategy and stakeholders are known by everyone helps the project get to “what done looks like”, in other words when evaluating the project, the team knows at all times what? s been doing at each period of the work, and continues with each successive period until the project is completed. Communication through the IOR at Turner shows how healthy it is for every member of the organization, also by the hand of tools used by the company such as constant meetings that include all members of a Project Team, to help manage the constant upgrade processes for every project.
The IOR is composed of 3 major documents prepared by the cost engineer ,the Cover Letter, the Financial Summary, and the Information Physical Form, which together helped each area or department in Turner Construction Company, as the Eastern Division Executive VP Don Kerstetter comment that “The two-page financial summary sheets and the IOR cover letters cover the important issues and reveal potentially the big risk “, as well as for the project manager, who refers to the system as a ” forward-looking project management tool, it helps my project team anticipate financial and operational problems and avoid surprises.
” So it clear that the constant communication between all areas involve in a project and even with the customer makes a difference in the result of a project. As mentioned previously the IOR system allows having a detail overview of every single project taken by Turner Company. Communication with the client it’s important through the process, which makes the client trust the company and that the outcome his looking for would become reality. “The key to negotiation is understanding your counterpart (the owner and his project) as well as he knows himself.
” The client has certain interests and these are represented in the budget for his project, and the company must respect these expectations, which is why the IOR system allows both, the client and Turner to interact continuously to meet the objectives of both; finish the project on time and within the agreed to budget. Owner Company Maximum $ commitment from owner. Corresponding $ that will flow out to subcontractors and suppliers.
Difference represents the saving or cost overruns Owner Company Maximum $ commitment from owner. Corresponding $ that will flow out to subcontractors and suppliers. Difference represents the saving or cost overruns The major objective of any successful company is to ensure clients are satisfied and their employees feel like they are an important part of the team to meet the goals, Turner has a policy of incentives and motivation (bonus), where unlike most construction companies, Turner motivates the entire team working on each project rather than individuals or individual departments.
If the company did not have the IOR system it could not insure risk was being properly managed at the beginning of each project, communication with clients would be inconsistent and untimely, and company departments would work on their own, making it difficult possibly impossible to accomplish a successful project. But Turner Construction with the IOR system accomplished to meet the C-Q-D (Cost-Quality-Delivery) through the company? s budget, with the customer expectations and delivery it on time, because constant communication makes IOR reflects the results of teamwork.
Project success occurs when the company can meet the cost, quality and delivery, goals and objectives it promises and its clients expect, like Turner Construction Company applies to every project. ——————————————– [ 1 ]. Reference < http://www. turnerconstruction. com/about-us> [ 2 ]. Turner Construction Company: Project Management Control System. Copyright 1990 by the President and Fellows of Harvard College. [ 3 ]. Turner Construction Company: Project Management Control System. Copyright 1990 by the President and Fellows of Harvard College. Page 7 [ 4 ]. Ibid. Page 5 [ 5 ]. Ibid. Page 4