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There is good evidence buildings account for about 40% of global energy consumption. As the world's population continues to grow and urbanise, the demand for energy in buildings is expected to increase. This means it is more important than ever to find ways to make buildings more energy-efficient.
Digital Building programs can have a significant impact on reducing the energy consumption, greenhouse gas emissions, and the environmental impact of buildings. Digital Building programs are one of the most valuable tool for helping to secure the 2-degree warming threshold.
One study published in the journal Energy and Buildings, found that a Digital Building program in a commercial office building saved an average of $1.2 million per year in energy costs. The study also found that the program improved occupant comfort, leading to increased productivity and reduced absenteeism. According to another study by the International Data Corporation (IDC), the average return on investment (ROI) for Digital Building programs is 22%. So for every $1 invested in a Digital Building program, the organisation can expect to receive $2.20 in benefits.
So with all this urgency and value, why is the failure rate for Digital Building projects so high? In Europe, an International Data Corporation (IDC) study found the failure rate for Digital Building programs is as high as 60%. It is important to note the failure rate for Digital Building programs will vary depending on a number of factors, including the size and complexity of the project, the experience of the team involved, and the availability of resources.
However the studies cited above all suggest that the failure rate for Digital Building programs is high, and that organisations need to carefully consider the risks and the risk mitigation steps before embarking on a Digital Building program.
The most common reasons for failure were found to be:
Lack of alignment between stakeholders: Many Digital Building projects failed because there was a lack of alignment between the different stakeholders involved in the project; including the owner, the contractor, the architect, and the IT team.
Lack of clarity around the project's goals: Many Digital Building projects failed because there was a lack of clarity around the project's goals; including not having a clear understanding of the benefits of the project, the costs involved, and the time frame for implementation.
Lack of a clear implementation plan: Many Digital Building projects failed because there was a lack of a clear implementation plan; including not having a clear timeline for implementation, not having a clear budget, and not having a clear plan for managing risks.
Clearly something very significant is missing. Mature and standardised processes are available in every methodology that provide best practices for: Stakeholder Management, Scope Management as well as Time, Cost & Quality Management. Stakeholders and key managers themselves will have all been selected based on their critical thinking capabilities, their domain knowledge and their business experience.
However one skill vital for delivering the complexity and challenges of a Digital Building project is all too often missing.
Emotional intelligence (EQ) is the ability to understand and manage emotions. It is a skill that is especially helpful in solving problems where people are misaligned either with each other, or with the wider enterprise strategy or with the specific project plans.
EQ is most useful for solving problems where people are misaligned. For example:
A stakeholder is expressing anger about a decision that has been made or showing frustration about a lack of clarity around the program strategy or concerns with the implementation plan.
An emotionally intelligent Program Manager will hear the anger and frustration and will work to understand why the stakeholder is annoyed and then establish what their concerns are. They will communicate with the stakeholder in a way that is respectful and empathetic. This helps to de-escalate conflicts, clear-up confusion and create a productive dialogue.
Two stakeholders disagree about the best way to proceed with a particular project workstream or they disagree about the program’s goals or objectives or the best way to implement them.
An emotionally intelligent PM recognises this misalignment and understands the different perspectives of the two people. They try to find a solution that everyone can agree on. This might involve compromising or finding a creative solution that meets the needs of both stakeholders.
A stakeholder is feeling frustrated because they are not being heard or they’ve not been sufficiently involved in the development of the program goals or they just want more involvement in development of the delivery planning.
An emotionally intelligent PM will recognise the frustration and exclusion, listen to the concerns and recognise the alternative point of view. They will communicate in a way that shows the stakeholder has been heard and understood and involved. This helps build trust and rapport between the person and the program.
By using their EQ, the PM improves their own ability to solve problems with people. Especially across a complex Digital Building project, this use of EQ leads to a much more positive work environment and a more successful project outcome.
It is important to ensure senior leaders and program delivery managers are properly supported to grow and to apply their EQ skills to deliver Digital Building projects. The requirements are complex and the stakes are high. A 60% failure rate is not ok.
Do you find Applied EQ is all too often missing from your Digital Transformation projects? Are you interested in improving the quality and success of your Digital Transformation program? Contact Applied EQ Services to discuss bespoke online coaching, mentoring and consultancy services.
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