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GlaxoSmithKline Brings New FUSION Approach to Project Management

Non-Traditional Method Brings Success

Published March 2002

GlaxoSmithKline (GSK) is saving time and money on construction projects by using an unconventional partnering process called FUSION.

"Some people think partnering is allowing someone to do all of the work and then paying them next to nothing. That's blackmail," says Kevin Thomas, director of strategic planning for GSK's worldwide R&D facilities masterplan program. "FUSION is a radical approach of working together as a team with a common set of goals and objectives for the mutual benefit of everyone involved with the project."

This kind of collaboration is essential to create pharmaceutical facilities that can adapt to an environment of constant change, whether driven by competition, product life cycles, scientific innovations, or new drug treatments, says Thomas. Today's buildings must include the most modern infrastructure to support high‑speed automation and research capabilities, while construction partners must understand the industry's needs and be flexible enough to respond to change.

"That means we need proactive and innovative partners who have a certain set of skills and expertise in the daily activities of building buildings,'' says Thomas. "We are not in the construction business, so we need people who will be involved with us and challenge us."

The FUSION process, developed by Thomas in 1997, creates a one‑team culture where all participants--from the general contractor to the bricklayers--know what is expected of them, how much profit they will make, and why they must work together to successfully complete the project.

Defining FUSION

FUSION is an acronym which stands for the six values which, in Thomas' view, underlie successful partnerships: fairness, unity, seamless, initiative, openness, and no blame.

Fairness entails being willing to pay for the skills and services the project requires, along with appointing participants early so they have the opportunity to make significant contributions based on their respective expertise.

"Clients have been asking for something for nothing for years, but you get what you pay for," he says. All too often "clients trying to realize savings will use less experienced workers. But this is false economy. Better workers will deliver better solutions quicker which leads to savings in the future. Because we want the best solutions, we don't go out and look for the cheapest people."

According to the FUSION theory, fairness also means the client, such as GSK, states how much profit the partners will earn at the outset of each project. One partner cannot withhold payment from another due to dissatisfaction with the way a certain task is being completed. FUSION also calls for commercial alignment by using the same type of contract for every member of the supply chain, including the architect, contractors, engineers, and suppliers. Doing business in this manner creates a partnership of equals where everyone involved realizes the importance of completing the project on time and within budget.

Unity implies that a high‑performance team can be more productive than a group of individual workers who do not share the same objective.

"We adopt a task force approach and let the team decide who does what. This means we work collectively and support those in difficulty because if a project fails, we all fail," notes Thomas.

All companies involved with a construction project know what the budget is from the start. If design changes are required once the work is under way, all team members decide together where adjustments can be made to keep the project within the specified financial parameters. For example, if the team decides to use more expensive door handles, the additional cost must be offset by lower spending in another area.

FUSION's seamless aspect maximizes all participants' capabilities, allowing individuals to do the jobs they are best suited for.

"We do not mind where the skills come from because we value diversity," says Thomas. "It doesn't worry us that someone in an architectural practice is going to monitor construction of the steel work, if the individual has the necessary skills."

Initiative empowers team members to offer suggestions and creative solutions. While traditional construction methods often call for a corporate executive to make important decisions, FUSION enlists the help of workers who are closest to the problem. Thomas says this represents a radical notion to some people.

"I remember walking around one of our project sites and talking to a bricklayer about how to do something. He said it was the first time in 30 years that anyone had asked for his opinion," recalls Thomas.

Openness refers to sharing all information about the project, including what must be done, how much money can be spent, and when the project must be completed. In this way FUSION eliminates problems often encountered using traditional construction management techniques.

"We believe people function best if they understand what it is that you want from them and why what they are doing is important to your business," says Thomas. "We don't do that little game where we say we need something by August when we really don't need it until October. There's only one contingency set and everyone knows what it is." Skeptics sometimes refer to Thomas as "naive" or "a soft touch" when he explains the no‑blame culture.

"The no‑blame culture assumes everyone is doing the best they can. It also means welcoming mistakes, which is a radical concept for most people," Thomas points out.

Applying this principle calls for partners to use each mistake as an opportunity to learn how to avoid the problem in the future. Participants are encouraged to "build a ladder to get out of the hole," by finding an appropriate solution to solve the problem before it worsens. There is no room in the no‑blame culture for recrimination, says Thomas.

The absence of blame does not eliminate accountability, however. Thomas explains that people must take responsibility for their actions, and problems must be resolved before they impact the entire project. He recalls one instance where an engineering company was unable to complete a task because it lacked the necessary skills. GSK could have dealt with the problem by penalizing the company or removing it from the job. Instead, GSK called upon professionals from other parts of the project to augment the engineering team's capabilities.

FUSION vs Traditional Project Management

FUSION calls for the selection of qualified partners who understand the client's business needs. All aspects of the project are clearly stated at the beginning of the design and revised, if necessary, during implementation. A project board is assigned to oversee the broad scope of the project, and a principal's chamber is on site to monitor the implementation of various aspects of the work.

This approach stands in contrast to the traditional process, where clients typically do not select all of their partners and outline their goals at the start of the project. Therefore, partners are not working together and often have to make design changes when the contracting groups are brought on board before the construction work can begin, causing delays and possible cost overruns.

Does FUSION Work?

GSK has put FUSION to the test on three recent projects in the U.K., all of which have been completed ahead of schedule and for substantially less money than traditional methods would require.

One project was a very challenging consolidation of the company's biotechnology capabilities, encompassing 100 buildings in Beckenham, Kent. The reconfiguration cost £16.8 million ($24.7 million), but the team involved estimates FUSION saved £4.5 million ($6.6 million) and shaved 13 months off the design and construction schedule.

Another project, the refurbishment of a four‑story laboratory and office building in Ware, Herts, came in at a total of £20.5 million ($30.1 million), with FUSION producing a £3.5 million ($5.1 million) savings. The savings estimate on an £11 million ($16.1 million) conversion of another laboratory in Ware has not yet been finalized, but Thomas figures FUSION has enabled GSK to realize an average savings of about 18 percent and reduced completion time by about 40 percent on all three undertakings.

Where do the savings come from? Thomas cites a number of economy‑generating factors. First, FUSION permits companies to make necessary design changes without costly delays. Fewer changes are required since all of the principles are fully defined at the outset but the details are not confirmed until they are needed. In addition, the one‑team culture minimizes duplication of effort and results in shorter design development time because everyone is focused on the same goal.

The building occupants are happy with the results, as well.

"We've been able to deliver what the business needs when people move in," Thomas says. "We've actually had end users come up and say that's exactly what they wanted. In the past, I've heard people say a building was okay, but I have never encountered that degree of satisfaction in 20 years."

Widespread Adoption Can Change Industry

Pointing out that FUSION can be applied by any company in any industry, Thomas says GSK is anxious to share its formula for teamwork and collaboration. He urges other companies to visit the GSK Web site at www.fusion‑approach.com to download information and a resource guide about the six FUSION principles.

"Please log on, look at the information, plagiarize it, use whatever you like. The only way the construction industry is going to improve is if we all try to change it," he notes. "Our core business is finding new medicines, and we need the industry that enables us to make the facilities in which we can do the research. We will not get there by collaborating in secret."

By Tracy Carbasho

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Biography

Kevin Thomas is director of R&D Worldwide Strategic Planning for GlaxoSmithKline. He has 25 years of experience in construction, operation, and reconfiguration of buildings and sites and in the management of the facilities and services provided to their occupants. Thomas joined Glaxo Group Research in January of 1988 as a project engineer. When Glaxo merged with Wellcome in 1995, he was responsible for the strategic facilities planning for the U.K. element of the R&D merger. Following the merger, Thomas became site manager for all facilities and services on the Ware R&D site, until January 2000 when he was appointed to head Strategic Planning in the U.K. In January 2001, this role was extended to R&D facilities worldwide in the newly formed GlaxoSmithKline.

This article is based upon a presentation Thomas gave at Tradeline's Research Buildings--Part I Conference in November 2000.




For more information

Kevin Thomas
Director R&D WW Strategic Planning
GlaxoSmithKline
New Frontiers Science Park
Third Avenue
Harlow, Essex
CM19 5AW, United Kingdom
(44) 127-063-1219
Kevin_P_Thomas@sbphrd.com




Lab Bays

Incorporating the FUSION system has allowed GlaxoSmithKline to save time completing projects. By providing site access early on facilities, such as the labs above, could be designed and changed if necessary throughout the construction process. Once the labs are occupied, they contain exactly what the researchers need and want. (Photo courtesy of GlaxoSmithKline.)




Trolleys

FUSION allows GlaxoSmithKline to create partnerships with firms that are innovative and proactive, flexible and adaptable, and that will help build GlaxoSmithKline facilities for future work. (Photo courtesy of GlaxoSmithKline.)




FUSION Guide

Download a copy of the FUSION Guide and then participate in a Discussion Forum sharing your comments and ideas.

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