When company leaders are asked about adopting a Lean Project Delivery approach, they inevitably demand data. The assumption is that if the numbers support Lean, they’ll embrace it. However, this rarely happens. If executives do see the value of Lean, they need to know which metrics demonstrate progress and justify their decision. Let’s explore which metrics to use and which to avoid when starting this journey.
Why Cost Isn’t the Answer
Cost savings are tempting, but a poor metric for long-term Lean transformation. Lasting change comes from achieving good goals, based on what you can control: behavior and activity. Cost and profit are byproducts, not primary objectives.
History proves this. The 2016 Wells Fargo scandal and the Enron collapse show what happens when cost savings or profit maximization become the sole focus. Both companies cheated clients and employees to boost numbers. Bad goals lead to bad behavior and worse results.
Lessons from High-Performance Environments
Professional sports offer a parallel. The outcome is clear (the score), but top teams focus on non-traditional metrics to drive performance. Serious golfers prioritize swing, grip, and stance to increase the probability of lower scores, rather than obsessing over the score itself. Those who fixate solely on the outcome may cut corners, sacrificing integrity for short-term gains. Don’t be that player.
Confirming vs. Driving Metrics
Just as golfers track swing mechanics to improve scores, Lean uses metrics like reductions in Requests for Information (RFIs) and Change Orders to show progress. These confirm that misalignment and rework are decreasing. Percentage Planned Complete (PPC) is useful for tracking reliable commitments, but avoid making it a goal. Teams may sandbag or manipulate efforts to artificially inflate PPC, ultimately harming schedule delivery. Remember: metrics are tools for improvement, not targets in themselves.
Transforming Metrics: Focusing on Behavior
The most effective approach is to measure the adoption of Lean methods. Track the number of projects using Integrated Form of Agreements (IFOAs), implementing the Last Planner System, or employing Lean coaches. Set progressive annual adoption targets and hold teams accountable for learning Lean. Align partner selection and contracting with these goals. If you do the right things, the right results will follow. Conduct annual maturity assessments to measure the quality of adoption and identify areas for improvement.
Data Isn’t Always Enough
Data alone may not drive change. In a discussion with a group of owners managing over $500 million in annual capital spend, the topic of persuasive data for Lean adoption came up. The blunt truth is that data rarely makes people change. The anti-smoking campaign illustrates this: abundant data proves smoking kills, yet smokers rarely quit unless emotionally moved by fear or loss.
Similarly, despite overwhelming evidence supporting Lean, companies resist transformation. Many are addicted to the design-bid-build approach out of habit. Until something emotionally shakes their businesses, they may slowly decline while healthier Lean companies pass them by. The emotional triggers for change will be explored in a future post.
Ultimately, Lean transformation requires more than just data. It demands a shift in behavior, a commitment to continuous improvement, and a willingness to challenge outdated habits.
“Metrics are only a tool for improvement, not targets in themselves.”
