Reimagining cost reduction

A Hotel chain uses Innovault to significantly reduce new project Cost and completion Time
A hotel chain had been aggressively pursuing its goal of becoming the leader in the Economy Hotel segment in India, aiming to take its total room inventory to almost 4,000 rooms across 20+ properties.

About halfway into this journey its leadership looked to significantly boost the productivity associated with construction & commissioning of new properties. They were sensing that internal efforts had captured most of the low hanging fruit in this area. Only small gains were trickling through now.

Substantial Cost and Time savings in the commissioning of new hotels would be a direct contribution to the financial health of the company. It was decided to try Innovation to help seriously crunch these costs.

In our experience working with organizations of all sizes across the industry spectrum

The bigger the need for a ‘Pole-vaulting’ boost in a business, the more it pays to dig below visible activities to uncover and shine a ruthless spotlight onto the organization’s potentially limiting Perceptual Models: a self-created obstacle course of invisible but all-powerful beliefs about the business. Something that can silently limit the field of thought,short-circuiting new ideas & possibilities.

In our experience working with organizations of all sizes across the industry spectrum

The bigger the need for a ‘Pole-vaulting’ boost in a business, the more it pays to dig below visible activities to uncover and shine a ruthless spotlight onto the organization’s potentially limiting Perceptual Models: a self-created obstacle course of invisible but all-powerful beliefs about the business. Something that can silently limit the field of thought,short-circuiting new ideas & possibilities.

In a thought-provoking self-reflection on approaches & methods of the past that may have outlived their utility, an Innovation Team comprising thought leaders & functional experts from across the organization recognized & faced up to several unconscious Perceptual Model boundaries worth seriously questioning:

  • Design Coordination went through a seemingly never-ending loop. The current way being attachment-heavy email trails doing the rounds from employees to external consultants and back, over & over again, impeding speedy decisions.
  • A strong belief that “Our projects & contracts are of smaller size, hence only small contractors will be interested in working with us”. In addition an undercurrent of mistrust towards vendors.
  • A tendency to play safe, resulting in over-designing of structure and services. For instance, the ’Gross Floor Area’ norm – which directly affected the total built-up area – had not been seriously questioned for years.

Facing up to these Perceptual Model boundaries slowly but surely began opening up crucial new questions for the team:

  • Where all could the biggest design simplifications be done?
  • Could the Slab Cycle time be drastically reduced: to 1 week?
  • Could they eliminate In-Situ hot & wet works?
  • How to transform vendor engagement?
Attempting to find answers to these questions led the Innovation Team to a quest for discovery of inspiring new Possibilities: Insights into how cutting-edge practitioners in other industries were succeeding against similar hurdles.

The Team hit the field & directly engaged with an astonishing range of insight sources: Project Management experts, Hospitals, maverick Construction Technologists, even the Indian Army! Synthesizing new discoveries and becoming conscious of fresh openings along the way.

Inspired by their freshly gathered Insights, the Innovation Team generated several Pole-Vaulting Ideas:

  • Design brief given to consultants to be in line with the Budgeting: To cut down time overruns and cost escalations because of ‘variation orders’ and ‘floating budget’.
  • Cut down the time taken for tendering and mobilization; also cutting down the idle time at site: By building a network of trusted contractors and vendors. A core group of formally empaneled contractors empowered by 100% accurate BOQ’s.
  • ‘Gross Floor Area’ (GFA) reduction via ground-up relook at elements like Room Size, Public Areas, Back-office areas, Corridors, Wall thickness, Staircases.

 Impact

In the 2 years that the Pole-Vaulting ideas have been implemented, they have powerfully uplifted New Project commissioning performance:

  • Construction Time has come down by as much as 40-45% .
  • Cost of construction has come down by as much as 35%.

Impact

In the 2 years that the Pole-Vaulting ideas have been implemented, they have powerfully uplifted New Project commissioning performance:

  • Construction Time has come down by as much as 40-45% .
  • Cost of construction has come down by as much as 35%.
Their CEO on the contribution of Innovation in transforming new project commissioning costs:

“We haven’t had to go back to the stakeholders for equity infusion in 2 years, a period when 6 new projects have got commissioned!

The Innovation methodology was quite powerful & stimulating for the team. Meeting a variety of outside organizations while hunting for deep Insights into our challenge areas, and then using those to generate fresh, powerful new Ideas.

Our people got the message that it is THEIR thinking & actions that mattered if the company had to succeed. Ownership got created as a result, which has stayed on into Execution.

The flywheel really turned and has subsequently kept revolving: Now people come up ON THEIR OWN with new ideas! This has been a lasting impact of the Innovation intervention.”