Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: lean methodology

  • The change order (ruminations on innovation)

    If any of you are in the
    business of creating – whether that’s a mobile app or a building – I’m sure
    you understand that the product or thing you’re working on will naturally
    evolve and change over time – probably in unexpected ways.

    In fact, I usually take this as a positive sign. When I have my
    head in a project and I’m focused on solving problems, ideas will naturally
    start to flow. I start thinking of things that I never would have thought
    about at the outset. That’s why I generally think of creativity as a process,
    rather than as some divine gift.

    But the challenge with all of this is that many of our existing business
    processes are not set up to deal with this kind of ambiguity. If anything we
    try and punish these sorts of deviations. If it wasn’t pre-meditated at the
    beginning of the project, we call it “scope creep” and charge extra for them as
    “change orders.” These two words equal death in construction.

    Now, don’t get me wrong, I completely understand the realities
    of running a business and the importance of managing scope and resources. It’s
    a balancing act. Without some structure, nothing would get done. 

    But the more that iterative
    lean methodologies and “design thinking” can be embedded into our processes,
    the more value creation I believe we will see.

    My thinking is as follows: At
    least part of the reason that innovation comes from startups and new market
    entrants is that the founders aren’t usually sitting around talking about defined
    scope and laying out elaborate business plans. They’re focused on creatively
    solving problems and doing whatever it takes to get there.

    It’s also one of the reasons
    that conventional wisdom dictates that tech startups shouldn’t outsource development.
    It’s too core a competency and you can’t “move
    fast and break things
    ” if you don’t have that in-house and you’re constantly worried
    about eye-popping invoices hitting your desk.

    I have always seen lots of
    parallels between startups and architecture. In both of these worlds, the idea
    you start with is rarely what you end up with (at least that’s the case in
    architecture school). You research, learn, and iterate along the way and that
    leads you in new and unexpected ways.

    And in my view, that’s often what
    the path to innovation looks like. Because if you define the entire path at the
    outset, how can you expect to go anywhere new? And if you’re not going anywhere
    new, how can you expect to outperform the market?