The need to improve communication about scope changes: frustration as an indicator of operational inefficiencies

Abstract

Early and timely sharing of information can provide a sustainable competitive advantage. However, even if lean information management aims to improve this information flow, it has mainly been investigated in ‘operations-based’ companies. This paper fills this gap, drawing upon the experience of the authors working within a large project-based company engaged in the ‘engineer and manufacture to order’ of a complex piece of equipment costing millions of dollars, for its strategic long-term client, both working in the same industrial field, i.e. nuclear decommissioning. This research investigates the information flow regarding scope changes between the project-based company and the long-term client adapting and applying a five-step framework to highlight operational inefficiencies, reduce the corresponding transaction costs and increase the overall company’s competitiveness. This is exemplified through a particular case, but can be applied to other project-based companies dealing with strategic clients involved in long-term relationships.

Keywords:

• Information management
• interorganisational relationships
• performance improvement
• scope changes
• nuclear decommissioning

Acknowledgements

The authors are extremely grateful to all the people from the project-based company and its strategic client that were involved in this research and constructively supported its development. The opinions in this paper represent only the point of view of the authors, and only the authors are responsible for any omission or mistake. This paper should not be taken to represent in any way the point of view of any company or organisation.

Notes

1. Exact queries: ‘transaction cost’; ‘lean management’; ‘lean information management’; ‘information management’; ‘scope change’.

2. Exact queries: ‘transaction cost’ AND ‘information management’; ‘information management’ AND ‘scope change’.