Engineering Management Journal

ISSN: 1042-9247 (Print) 2377-0643 (Online) Journal homepage: http://www.tandfonline.com/loi/uemj20

Total Quality Management in the Construction

Industry: A Cultural Challenge

G. Peter Greene

To cite this article: G. Peter Greene (1993) Total Quality Management in the Construction
Industry: A Cultural Challenge, Engineering Management Journal, 5:2, 21-27, DOI:
10.1080/10429247.1993.11414727

To link to this article: https://doi.org/10.1080/10429247.1993.11414727

Published online: 15 Apr 2015.

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Engineering ManagementJoumal Vol. S No.2 June 1993
TOTAL QUALITY MANAGEMENT IN THE CONSTRUCTION
INDUSTRY: A CULTURAL CHALLENGE
G. Peter Greene, PCL Constructors Inc.
ABSTRACT
This article discusses some of the special challenges
construction companies face when they attempt to imple-
ment total quality management (TQM). These challenges
are defined and their respective difficulties are rated.
Personality characteristics of successful traditional leaders
are contrasted with those of successful TQM/team leaders.
Specific TQM programs used by the PCL family of compa-
nies are described.
TOM and the Construction Industry
There is really nothing new about total quality management
(or about TQM by any other name: continuous improve-
ment, employee involvement, participative management).
Anyone who bothers to dig down through all the hype, the
instant literature, and the multitudinous claims to expertise
realizes that TQM describes what we really knew all along:
We should be giving customers (at least) what they expect-
ed, when they expected it, and at the price they agreed to
pay.
However, TQM is quite new to the construction
industry. It took only a prolonged recession and increased
competition for us to start noticing the TQM message,
particularly when that competition is coming from compa-
nies who actually practice TQM. Most construction
companies are beginning to hear the message. Whether or
not we are going to pay attention is another story, but most
of us will at least have a look at TQM's benefits and costs.
Benefits and Costs of TQM. Some specific benefits that
TQM can provide to a company include:
Increased customer satisfaction
Greater efficiency and productivity
Larger market share
Reduced rework and warranty work
This management tool article was accepted May 1993 by
Dr. John Whittaker.
This article was previously given as a presentation in
December 1992. The views expressed here are the author's
and do not necessarily represent the views of the PCL family
of companies.
21
Higher profits
Improved reputation
Lower WCB/insurance costs
Lower absenteeism and turnover rate.
Individuals benefit from working at a company that
practices TQM in the following ways:
Greater job satisfaction
More involvement in decision making
Increased job security
Higher morale
Fewer job-related injuries
Improved working environment.
It is commonly known that implementing TQM has its
costs, which include:
Time-from the CEO on down
About the Author
G. Peter Greene is the manager of professional development and
safety for the PCL family of construction companies. He is also
extensively involved in the development and implementation of
a corporate approach to total quality management. Previously ,
he spent 10 years as manager and then director and vice
president of the Banff Centre for Management.
He received his B.A. and M.A. from the University of
Alberta and carried out his management education at Carleton
University and at the School of Business Administration of the
University of Western Ontario.
Mr. Greene has led human resource development seminars
in both Canada and the United States and is the author of
research and teaching materials on interpersonal management
skills. He is fluent in both French and English.
Contact: G. Peter Greene, PCL Constructors Inc., 5410 99-
Street, Edmonton, Alberta, Canada T6E 3P4, phone: (403) 435-
9726, fax: (403) 436-2247.
22
Personnel-usually some external consulting and some
internal reassignments
Training-varies greatly, depending on the approach
Research-customer, supplier, and employee surveys
Systems Development-analysis and redesign of busi-
ness processes based on feedback from surveys
Communication and Employee Recognition
Systems-need to match corporate culture.
These lists of benefits and costs are very general and
apply to most companies undertaking the TQM journey.
However, what TQM might actually cost a company in the
construction industry may be quite different than the costs
incurred by a company in another sector. In construction,
TQM can represent a radically different approach to
management, given its apparent desire to cling to its very
traditional leadership and management practices. And
changing a basic approach to management can be very
expensive in terms of time, money, and energy.
The Essentials of TQM and Their General Challenges
for Construction. To see how this issue develops, let us
first take a broad look at the essentials of TQM, which are
listed in the left-hand column of Exhibit 1. In the corre-
sponding right-hand column, I have indicated my estimate
of the magnitude of the particular challenge (low, medium,
or high) that that element of TQM would represent to the
average construction company adopting TQM.
In examining the essentials and applying them to a
construction company that has already decided to become
a TQM organization, it is my view that the greatest
challenges will be mobilizing the expertise of the work-
force, eventually into self-directed work teams. Achieving
this will require the adoption of a more participative
management style. Based on this premise, I believe that if
the North American construction industry is going to use
TQM to improve itself to the point where it can withstand
stiff international competition, it must engage in some
serious introspection into its leadership and management
practices and then make some fundamental changes.
I think some honest self-analysis will likely yield some
important conclusions:
1. The traditional model of leadership (that is, the leader
is sole decision-maker) is alive and functioning well.
2. Traditional management practices (that is, reward
systems and information systems that feed the individu-
al, not the team) are still the norm.
3. The collaborative team (that is, interdependent employ-
ees exchanging information and expertise to accomplish
Engineering Management Journal Vol. S No. 2 June 1993
a task), not the individual, is the new key to leadership
and management in the TQM world.
4. A significant paradigm shift will be required if new
leadership and management skills are to be learned and
adopted.
In other words, the construction industry faces a bit of a
cultural revolution for TQM to be successful.
Traditional Leadership
In my experience, there are two traditional leaders in the
construction industry: the "competent engineer" and the
"successful superintendent." Here, competent refers to
technical competence, and successful means the ability to
make money. These qualities make these leaders the most
highly valued members of the industry.
It is quite natural that the competent engineer and the
successful superintendent have some common leadership
and manflgement characteristics. These characteristics,
listed below, are strong and deeply embedded in their
culture.
Technical Expertise. Both favor the question "How does
this work?" They are hands-on, practical people. They
have learned that technical expertise is power.
To cite an example of just how strong this characteristic
is, I will refer to our annual PCL Leadership Course.
During this intensive program, teams are required to do
some physical problem solving, a Ia Outward Bound. One
of the exercises involves blindfolding a team of five, giving
them a 25-foot loop of rope, and asking the team to put the
rope on the ground, in the shape of a square.
In this exercise, my experience suggests that team
members (from industries other than construction) all talk
at once, no one listens, and the ropes, at best, become
artistic impressions of squares. Engineers and superinten-
dents behave differently, though. They may all talk at
once, but they are all listening for the best technical
solution. Once they find it, they respect it, and their track
record proves it. A whopping 80% of construction teams
successfully solve this problem, and in a very short time
frame!
A Competitive Nature. Their drive to succeed is exceed-
ingly well developed. To the traditional leaders, there is
nothing quite like being low bidder and leaving only a
scrap on the table. And of course, that is just the begin-
ning of the process; there are schedules and budgets to beat
and so on.
To continue with the rope-square example given above,
the competition among teams quickly becomes to finish
first with a perfect square, even though the instructions
only refer to making a square. Our engineers and superin-
tendents actually want the additional pressure of time!
Engineering Management Journal Vol. S No. 2 June 1993 23

CONCEPTS OF TQM LEVEL OF CHALLENGE

I. Quality is meeting requirements. Low. This is the basis of the industry's services.

2. Requirements are defined by customers, both inter- Medium. Valuing the internal customer will be the
nal and external. greater challenge.

3. Goal is continuous improvement, or "zero defects." Low. This approach offers a competitive edge.

4. Cost of waste (time, materials) is the measure. Low. Scorekeeping is already part of the construction
game.

ACTIVITIES NEEDED FOR SUCCESS LEVEL OF CHALLENGE

1. Top-down commitment to TQM. High. Few of today's construction CEO's will buy in
deeply enough.

2. Participative management style. High. In construction, the leaders make all the key
decisions.

3. Continual improvement of processes. Medium. This will require a paradigm shift for
middle management.

4. Use of teams. Low. At the project level, teams are the norm.

PRINCIPLES TO LIVE BY LEVEL OF CHALLENGE

I. Keeping a customer/supplier focus. Low. Once this message is received, it will remain in
the frontal lobes.

2. Focusing on processes and results. Low. Same as above.

3. Preventing, not inspecting. Medium. Another mind shift is needed here.

4. Mobilizing the expertise of the workforce. High. Success here is closely related to a participative
management style.

5. Using fact-based decision-making. Medium. This lesson is being learned quickly in these
times.

6. Scorekeeping toward zero defects. Low. This is already part of the construction mental-
ity.

MAJOR CHALLENGES IN CREATING A LEVEL OF CHALLENGE

QUALITY CULn.JRE

1. Relating TQM objectives to business objectives. Low. Once a company has decided to take the TQM
plunge, this will be accomplished with no great diffi-
culty.

2. Understanding how business processes produce Medium. This will be an on-going learning process.
quality.

3. Getting employees to see what role they play in Medium. This will take time and will depend on the
producing quality. objective-setting process and management style.

4. Developing measurement tools (statistical process Medium. Some trial and error will be required to
control, management, and planning). decide on which tools are best for which processes.

5. Making better decisions faster. Low. This is already a highly desirable and well-
developed ability.

Exhibit 1, part 1 of 2. TQM challenges and their respective levels of difficulty.

24
BARRIERS TO CHANGE
I. Management styles.
2. In-house rivalries.
3. Professional prejudice.
4. Fear of loss of personal power.
TIMELINES FOR Fl.JNDAMENTAL CHANGE
I. 5 to 10 years.
ORGANIZATION STRUCTIJRE FOR TQM
1. Corporate (top-down) direction.
2. TQM coordinator (for busy work).
3. District/departmental teams.
4. Site teams.
Exhibit 1, part 2 of 2. TQM challenges and their respective levels of difficulty.
A Task-Oriented Attitude. They have a can-do attitude
and are strongly focused on results. The more tasks that
can be done, the more successful the individual becomes.
A Desire to Take the Initiative. The need to lead is
apparent, even as an unpolished field engineer or appren-
tice. This need can become almost oveiWhelming as
experience and responsibilities increase.
The large number of young engineers at PCL who seem
to want to rise to CEO tomorrow is probably a good
indicator of the strength of this characteristic.
Autonomy. As experience, knowledge, and power are
developed, so is the need to be the sole decision maker.
This characteristic is very deeply rooted.
Decisiveness. Giving opinions, making rapid decisions,
defending decisions, and taking risks to achieve results are
all common skills for the construction decision maker.
In 1989, the late Bob Tarr (PCL's CEO) was the first
to test out a proposed learning system using interactive
videodisc instruction, a high-tech approach to training. He
had 10 learning modules to choose from, covering topics
such as leadership, control and follow-up, organizing and
Engineering Management Journal Vol. 5 No.2 June 1993
LEVEL OF CHALLENGE
High. They are traditionally more autocratic than
participative.
Medium. Cross-functional teams will lower this barri-
er.
Medium. Doing things in new and different ways has
always been a challenge.
High. This relates closely to the question of manage-
ment style.
LEVEL OF CHALLENGE
High. It will be tough to take the long road when sur-
viva! is the issue today.
LEVEL OF CHALLENGE
Medium. Getting senior management on the TQM
side is the CEO's job.
Low. A secondment from within is easy and effec-
tive.
Low. Once they understand what can be achieved, it
will be hard to keep them from participating.
Low. Same as above.
planning, and decision making. He chose the module on
decisiveness. And which module did most of our young
engineers subsequently want to test? You guessed it:
decisiveness. I think they chose the same module for two
reasons:
1. "Decisive" fits their idea of what leaders in the industry
have to be.
2. They probably wanted to beat their CEO's test score
(there's that competitive characteristic again!).
A Bias for Action. Driven by schedules, these traditional
leaders will pour foundations before knowing how to build
the roof. To them, there is no worse crime than inaction.
For an example of the power of this characteristic, I
take you back to our Leadership Course. This time, the
problem-solving activity is called "the electric fence." All
21 participants are put into a single team and placed on one
side of a rope that has been strung at neck-height between
two trees (about 15 feet apart) . They are told that 20,000
volts run through this rope and that to touch it is to die.
Their goal is to get the entire team over the rope, alive.
Their only aids are two 2- x 12-inch planks, each about 10
EngineeringManagemcntJoumal Vol. 5 No. 2 June 1993
feet. long. They are informed that there is no time limit
and that no jumping is allowed (for safety reasons).
Now, if you were facilitating an exercise like this, you
would probably want to be able to debrief it for issues such
as organization, communication, leadership, and follower-
ship. You might normally expect one leader to emerge and
rally the team around a plan of attack, maybe even to test
out a number of solutions before choosing the best one.
You would at least expect the participants to focus on how
to get the first couple of team members over the rope, and
how to get the last couple over. However, you probably
forgot that we are talking about engineers and superinten-
dents from a highly competitive industry who have clocks
built into their psyches as well as a great deal of technical
expertise. They just cannot stand around talking when
some physical problem needs to be solved.
So now you are surprised to see people going over the
rope while the team has not yet figured out how to get the
last people over. But you are not as surprised as the last
person is when the 20 other teammates claim that they tried
their best, but they can't get him or her over. The look on
that person's face when realizing he or she has become
"the cost of doing business" is a priceless picture of the
bias-for-action characteristic.
A Linear Mental Set. Life is here and now (not 6 months
from now), plans are sequences of activities, and step 1 is
always the first step of the plan.
A Belief in Self. Professional achievement is built on
personal strengths. One must believe in one's position or
viewpoint to overcome the many obstacles to success.
These are characteristics forged in the world of the
individual leader. They have been nurtured and exercised
since the building of the pyramids because they have
worked.
TQM Leadership
In the TQM world, however, much more emphasis is
placed on the collaborative team. These can be functional
teams, continuous improvement teams, product teams,
project teams, or problem-solving teams. A recent study
(Leimbach, 1992) suggests that the use of teams in organi-
zations for shorter, more-defined time frames (that is,
project and problem-solving teams) is dramatically on the
increase.
In the commercial construction industry, we are experi-
encing a decline in the quality and completeness of con-
struction drawings. Consequently, engineers and superin-
tendents must seek more direction, clarification, and
resolutions from customer representatives and other
professionals. More design decisions must be made on
site. More responsibility rests on the superintendent's and
engineer's shoulders regarding decisions on constructability
and alternate approaches. This reality cries out for more
teamwork.
25
In the heavy construction world, the increase of end-
product specifications probably means that more people
must be involved in decision making, because companies
must look for more creativity in both design and construc-
tion. Again, there is a call for increased teamwork.
Of course, we will not be surprised to find that mem-
bers of successful teams also share some common leader-
ship and management characteristics that are mentioned
below. I have expanded this list from Leimbach (1992) to
include "A Task and People Orientation" and replaced
"leadership" with "A Sense of Duty to Serve the Team."
Not surprisingly, they have several characteristics that
differ from those of traditional leaders.
Technical Expertise. Effective contributors to a team
must have the appropriate technical expertise. People with
the right information and knowledge need to be an integral
and respected part of the team.
An Ability to Manage Tension. Effective team members
are comfortable with conflict and tension. In some cases,
they must know how to resolve it; in others, they need to
know how to create it in order to generate new ideas.
A Task and People Orientation. Effective team leaders
get the team focused on the task by giving direction at the
outset. They then focus on social systems by shifting their
leadership behaviors away from task and more toward
support. Over time, as the team's social systems take on
more important dimensions, the team leaders return their
focus to task (direction). And so the cycle goes; team
leaders stay one step ahead of team members.
A Willingness to Share Responsibility. Effective collabo-
rators are after a shared outcome. Both responsibility and
ownership are shared, and this often means that autonomy
must be relinquished.
A Sense of Duty to Serve the Team. On effective teams,
the team serves the challenge of the task, and the leader
serves the needs of the team. Facilitating and supporting
the involvement of others is the prime leadership function.
Advocacy. The ability to influence others through persua-
sion is another facet of the effective team member. This
ability is built on communications competencies such as
expressing ideas and feelings clearly.
Inquisitiveness. The ability to listen and ask questions is
a key to effective teamwork. Seeking and understanding
the ideas and feelings of others helps develop one's own
perspective.
Diversity. A closely related characteristic is the willing-
ness to learn from others, to trust the intentions of others,
and to be flexible in the face of differing viewpoints.
26 Engineering Management Journal Vol. S No. 2 June 1993

SAME

Technical Expertise Technical Expertise

A Competitive Nature An Ability to Manage Tension

~

A Task-Oriented Attitude II SIMILAR II A Task a11d People Orientation

A Desire to Take A Willingness to Share

Initiative Responsibility

Autonomy A Sense of Duty to Serve

the Team

Decisiveness DIFFERENT Advocacy

A Bias for Action Inquisitiveness

A Linear Mental Set Diversity

A Belief in Self Self-Awareness

Exhibit 2. Characteristics of traditional leaders vs. TQM/team leaders.

productivity improvement throughout the entire scope of

Self-Awareness. The ability to criticize oneself and to our operations. The term quest was deliberately chosen to
accept constructive criticism from others is a crucial describe our TQM journey toward achieving our mission,
characteristic. Feedback is still the breakfast of champions. which is stated below:

Characteristics of Traditionally Successful Leaders
vs. Successful TOM/Team Leaders
Combining our two lists (Exhibit 2) clearly shows a
significant cultural challenge facing companies that would
become total quality construction companies. That chal-
lenge comes from the ranks of our competent engineers and
our successful superintendents, and it will come in the form
of a paradox.
The paradox is that the team leaders must accept that
they will actually become stronger by giving up some of
what they perceive to be their strengths: their decisiveness,
their autonomy, and their bias for action. Learning to
serve the team, to inquire, to value diversity, and to give
and accept constructive criticism will be the new strengths
of the TQM team player.
Unfortunately, most of our successful engineers and
superintendents have worked hard all their careers to gain
exactly what they might now be asked to give up, and
herein lies the leadership and management challenge. How
does a construction company go about meeting this chal-
lenge and turning these highly valued people into willing
partners to such significant change? How does it success-
fully alter its culture to accommodate this paradox?
The PCL Quest
In 1987, the PCL family of companies launched QUEST,
an initiative designed to promote quality management and
"Our PCL construction teams are committed to total
customer satisfaction. As professional builders, we thrive
on competition and innovation. Our goals are continuous
improvement and profitable growth for our employee
shareholders."
QUEST is also used as an acronym to outline our TQM
focus:
Quality
U nderstanding the customer
E mployee involvement
S ervice exceeding customer expectations
T eamwork and partnerships.
PCL's Approach to TQM. Many ofPCL's customers are
making TQM a pre-condition of contractor selection. They
are insisting that their contractors subscribe to TQM and
commit their companies to its mandate. The following
PCL activities demonstrate a full commitment to TQM:
Customer satisfaction surveys
Action plans that install company-wide continuous
improvement processes
Engineering Management Journal Vol. S No. 2 June 1993
Professional development and training for all employees
in the processes and tools of TQM
A reward system for our QUEST efforts
Reinforcement of our three core values: people,
excellence, and reward
Reinforcement of our guiding principl.es: 1) Our focus
is customers first. 2) Teamwork is key to our
approach. 3) Contribution is rewarded. 4) A
healthy environment means personal growth. 5) Our
growth and profits come from within. 6) We are
responsible members of our communities.
PCL employs other elements to its TQM approach. The
very best ideas on bow to improve a process, how to
complete a task more effectively and efficiently, or bow to
solve a problem are always found in the minds of those
employees who are intimately involved in the tasks at hand.
All PCL employees participate in QUEST Meetings that
draw out valuable ideas and implement those that will
improve our ability to serve our customers. Every Friday,
a QUEST bulletin is dispatched to more than 1200 PCL
employees. These one- or two-page bulletins are authored
by PCL staff. They outline ideas and technical break-
throughs that have been successful on particular projects
and that may help fellow employees on other projects of a
similar nature.
Since the fall of 1988, 500 employees have participated
in annual QUEST Technical Workshops. The goal of these
workshops is to ensure that PCL's field personnel are
aware of and able to use the best technical information in
their construction projects.
In addition, QUEST technical reference libraries exist
in each PCL district to provide the most current technical
information to all PCL projects.
In 1989, the PCL College of Construction was intro-
duced into the PCL family. The objective of this in-bouse
27
professional development program is to ensure that PCL
continues to employ the very best construction people in
the industry. The college encourages all PCL employees
to develop to their full potential in their chosen careers.
Every district office bas a PCL College "campus" and a
training coordinator to make sure our employees receive
the maximum benefit of this unique training approach.
The PCL College of Construction is multi-faceted. A
major component of the College system is interactive
videodisc instruction (lVI). This computer-based, self-
directed training allows the individual learner to work at a
comfortable personal pace. In addition, learning by lVI
increases retention and reduces training time by as much as
50%. In the first 2.5 years of College operations, 65% of
PCL employees have used lVI. To supplement lVI, a
regular series of classroom activities are conducted on a
variety of management and technical subjects. These
seminars and workshops maximize the benefit of group
interaction, and their take-home value in the area of PCL
practices and procedures is extremely high. This more
traditional mode of delivery ensures that 100% of PCL
employees, including hourly paid foremen, receive profes-
sional development every year.
PCL's in-house safety policies and programs form an
integral part of QUEST. Every operating district within
PCL bas a safety/loss prevention supervisor. All PCL
project sites operate under the strict safety policies that
have been taught to each of our field supervisors. The
PCL accident frequency rate is half the industry average,
and we are still not satisfied. Our goal is zero accidents.
The Bob Tarr Safety Award, developed in memory of
PCL's former CEO, will be given annually to the PCL
operation that best demonstrates our overall commitment to
achieving our goal.
Reference
Leimbach, Michael P., Meeting The Collaborative Chal-
lenge: A Study of Supports and Barriers to Team Effective-
ness, Wilson Learning Corporation (1992), 17 pp.