LAS VEGAS, March 10, 2020 /PRNewswire/ -- Autodesk,
Inc. (NASDAQ: ADSK), in partnership with management consulting
firm FMI Corporation, today released findings from an industry
study, "Trust Matters: The High Cost of
Low Trust." The study measured the costs and benefits of
different levels of trust within construction organizations and
across construction project teams. The findings reveal
organizations with "very high" levels of trust achieve better
financial and organizational performance – yet 63 percent of survey
respondents shared their organizations have less than "very high"
trust. Compared to organizations with lower levels of trust, "very
high" trust organizations generate more repeat business, retain
more employees and drive a higher level of operational success.
"The performance advantages at 'very high' trust organizations
can represent millions of dollars in profitability," said
Jay Bowman, research and analytics
lead at FMI. "With margins in the construction industry continuing
to shrink, organizations should be aware of their trust ranking and
how it can be improved to increase profitability. The 'very high'
trust attributes uncovered in this report reflect approaches
organizations can focus on to minimize uncertainties, simplify
collaboration and ultimately improve trust."
FMI and Autodesk surveyed over 2,500 construction professionals
worldwide who ranked trust within their organizations, ranging from
"very low" to "very high" trust. The rankings were assessed against
respondents' reports of their organizations' internal performance,
culture and external relationships.
Key findings include:
1. "Very high" organizational trust can lead to millions of
dollars in annual savings and new revenue.
Respondents from the highest trust organizations revealed
performance advantages that can add up to millions of dollars of
profitability each year, including:
- More repeat business – The majority (57 percent) of
"very high" trust organizations report working with repeat clients
for more than 80 percent of their projects, whereas only 42 percent
of "above average" trust organizations reported the same. The
highest trust organizations working with repeat clients can expect
gross margins two to seven percent higher than organizations of a
similar size with only "above average" trust. Acquiring new clients
is estimated to cost five to 25 times more than continuing work
with repeat clients, particularly given new business onboarding
processes such as aligning technology, managing payment systems and
conducting background tests.
- Lower voluntary turnover – The majority (56 percent) of
construction professionals at "very high" trust organizations
voluntarily choose to stay in their roles, versus just 32 percent
at organizations where trust is "above average". Given the costs
associated with recruiting new employees, "very high" trust
organizations save as much as $750,000 annually by simply not having to onboard
new employees. Retaining skilled labor amid the construction
industry's global labor shortage is also particularly valuable for
organizational success.
- Timely project delivery – Organizations with the highest
levels of trust are twice as confident as those with "above
average" trust about meeting their project schedules (43 percent
versus 21 percent), suggesting a higher sense of reliability among
their teams. Since delays require additional staffing, equipment
and material costs, as well as opportunity costs of not being able
to take on additional work, FMI estimates the highest trust
organizations are saving as much as $4
million each year by meeting their deadlines.
2. Organizations with the highest trust generate more
employee engagement.
Organizations that rank high on trust also rank high on employee
engagement.
Seventy-four percent of respondents from "very high" trust
organizations said they would recommend their companies as great
places to work. Employee recommendations bolster recruiting efforts
and can help attract skilled labor – another organizational benefit
that is particularly valuable amid the construction industry's
global labor shortage.
Respondents from "very high" trust organizations also disclosed
they are twice as likely to go above and beyond what is asked of
them (49 percent), compared to respondents from "above average"
trust organizations (24 percent).
3. "Very high" trust organizations value collaboration and
build stronger relationships externally.
Respondents from "very high" trust organizations were more than
twice as likely to report that collaboration is central to the way
they work (43 percent), compared to respondents from "above
average" trust organizations (19 percent). The highest trust
organizations are more likely to share information with external
teams, receive prompt responses from team members and hear about
project issues quickly. These findings suggest the collaboration
found within "very high" trust organizations not only reduce
project rework and schedule overruns, but also strengthens external
industry relationships – between owners, architects, engineers,
general contractors and specialty contractors – to expand
opportunities for more work.
4. Trust can be increased.
The study uncovered common, measurable attributes that foster
trust and positively impact performance across construction
organizations, such as consistent internal processes, transparent
communications, environments where employees feel safe and secure
sharing their views, and a focus on employee development.
"Having worked as a project engineer, I know first-hand
construction is a team sport and being able to trust the people you
work with is essential to business success," said Dustin DeVan, construction strategist and
evangelist at Autodesk Construction Solutions. "This study exposes
a need for more transparency, accountability and collaboration in
the industry. Organizations that effectively adopt processes and
technologies that facilitate greater transparency, accountability
and collaboration will be able to increase trust and improve their
performance outcomes."
More details:
- Download the full report with country-specific insights, "Trust
Matters: The High Cost of Low Trust," here
- Also check out the blog and
infographic
- Sign up for our upcoming webinar on March 25, 2020 to learn how construction
organizations can increase trust internally and across their
project teams
About the study
In 2019, Autodesk Construction
Solutions and FMI surveyed 2,527 construction professionals
worldwide, asking them to rank the level of trust within their
organizations and across project teams, and share financial and
organizational performance. In the survey, respondents ranked the
level of trust within their organization on a scale of 1 – 5 (very
low = 1; very high = 5).
To evaluate the costs and benefits of the trust ratings,
responses were then grouped in to one of three categories:
- "Very high": Trust extends through the organization and across
all functions. Trust is core to how they work.
- "Above average": These firms may have pockets of strong trust,
but individuals may still distrust or feel suspicious of others,
even unconsciously. To some degree, trust must still be
earned.
- "Average" to "below average": Employees of these firms are not
consistently trustful, and internal groups may feel suspicious of
others. Individual employees may also act in their own best
interest rather than for the benefit of their organization or other
team members.
Study participants include project owners (11 percent),
architects and engineers (36 percent), contractors (31 percent) and
specialty trades (22 percent) from the
United States, Canada,
United Kingdom, Ireland, Australia, New
Zealand, Hong Kong and
Singapore. Participants' tenure
ranges from less than two years (21 percent), two to five years (26
percent), five to 10 years (26 percent), 10 to 20 years (19
percent), and more than 20 years (eight percent).
About Autodesk
Autodesk makes software for people who
make things. If you've ever driven a high-performance car, admired
a towering skyscraper, used a smartphone, or watched a great film,
chances are you've experienced what millions of Autodesk customers
are doing with our software. Autodesk gives you the power to make
anything. For more information visit autodesk.com or follow
@autodesk.
About FMI
FMI is the leading provider of consulting
and investment banking to the Built Environment. We provide
services in the areas of strategy, leadership and organizational
development, performance, technology and innovation, mergers and
acquisitions, financial advisory and private equity financing. For
more information, please visit www.fminet.com.
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Autodesk and the Autodesk logo are registered trademarks or
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pricing at any time without notice, and is not responsible for
typographical or graphical errors that may appear in this document.
© 2020 Autodesk, Inc. All rights reserved.
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SOURCE Autodesk, Inc.