Social sustainability and change management in a project based organization The challenges of design and implementation in construction Master‟s of Science Thesis in the Master‟s Programme Design and Construction Project Management NICLAS BERGENDAHL OSKAR KÄLL Department of Civil and Environmental Engineering Construction Management CHALMERS UNIVERSITY OF TECHNOLOGY Göteborg, Sweden 2015 Master‟s Thesis 2015:9 MASTER‟S THESIS 2015:9 Error! Reference source not found.Social sustainability and change management in a project based organization The challenges of design and implementation in construction Master‟s of Science Thesis in the Master‟s Programme Design and Construction Project Management NICLAS BERGENDAHL OSKAR KÄLL Department of Civil and Environmental Engineering Construction Management CHALMERS UNIVERSITY OF TECHNOLOGY Göteborg, Sweden 2015 The challenges of design and implementation in construction Master‟s of Science Thesis in the Master‟s Programme Design and Construction Project Management NICLAS BERGENDAHL OSKAR KÄLL © NICLAS BERGENDAHL, OSKAR KÄLL, 2015 Examensarbete / Institutionen för bygg- och miljöteknik, Chalmers tekniska högskola 2015:9 Department of Civil and Environmental Engineering Construction Management Chalmers University of Technology SE-412 96 Göteborg Sweden Telephone: + 46 (0)31-772 1000 Department of Civil and Environmental Engineering Göteborg, Sweden 2015 I Error! Reference source not found.The challenges of design and implementation in construction Master‟s of Science Thesis in the Master‟s Programme Design and Construction Project Management NICLAS BERGENDAHL OSKAR KÄLL Department of Civil and Environmental Engineering Construction Management Chalmers University of Technology ABSTRACT Sustainability is steadily gaining attention among companies along with the rising awareness of the public and their demands. Focus has traditionally revolved around mitigating climate encumbrance and ensure that environmental aspects are regarded and while such efforts remains a central part of discussions and policies on the subject of sustainability, the need for responsiveness with regard to societal values is seeing an increase among sustainability studies and organizational strategies. In 2011 Peab launched Bolyftet as a part in their efforts to broaden their sustainability focus and enhance the refurbishment processes regarding the million programs but also as a concept that could permeate through the company to enhance the projects in general and offer more focused solutions with regard to sustainability The purpose of this thesis became to determine what Bolyftet is, the use of the concept, how it was implemented and how it is used within the organization. Furthermore diagnosing challenges and issues that hindered Bolyftet through its design and implementation phase. To discuss challenges of social sustainability and the concept as a whole the authors conducted interviews with a qualitative approach. The interviews were conducted primarily with Peab employees of varying areas of expertise and knowledge about Bolyftet. The theoretical backbone of the thesis consisted of reviews of the project based organization and change management, together defining the framework which concepts and theories are discussed against. According to the provided gray literature and interviews, Bolyftet was created to be a dynamic and flexible concept that would cater to the pretense that every project is unique. Expanding the areas where the concept could be utilized and also create the best possible market value for the concept. Bolyftet was meant to be a framework which could supply individual projects with ways to implement concrete solutions to reoccurring activities in the building process. An important factor that leads to the need and creation of a new concept was that the top management at the Peab Group wanted to be more proactive in their work and role as a community builder. They wanted to be the prominent choice of contractor within the refurbishment market and the first alternative when discussing sustainable building. II During the interviews it gradually became clear that it proved hard for the concept to fully consider the uniqueness of each project and that this flexibility of the concept also created rifts between what the purpose of the concept should have been for the different actors part of the process. The interviewees believe that the concept then suffering from a lack of such concrete material and content was what made Bolyftet appear as primarily being a business concept for marketing purposes. During initial discussions with Peab employees it is clear that there is a lot of confusion with regard to what Bolyftet as a concept has attempted to bring to the company and also with regard to whether or not it has been used within projects. Interviews made it clear that the implementation of Bolyftet within projects organization have not been successfully executed. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 1 Contents ABSTRACT I CONTENTS 1 PREFACE 3 1 INTRODUCTION 5 1.1 Background 5 1.2 Purpose 6 1.3 Method 7 1.4 Limitations and boundaries 11 2 THEORETICAL BACKGROUND 12 2.1 Defining sustainability 12 2.1.1 Measuring social sustainability 14 2.1.2 Implementation within construction organization 14 2.2 Project based organization 15 2.3 Change management 18 3 THE PEAB ORGANIZATION – THE CASE 22 3.1 Introduction to Peab organization 22 3.2 Peab business model 23 3.3 Bolyftet 24 3.4 The Peab School 25 4 RESULTS 26 4.1 Concept creation 26 4.1.1 Ambiguity 27 4.1.2 Measurability and sustainability 27 4.2 Organizational structure 29 4.3 Concept and goals 32 4.4 Stakeholder view on obtainability of sustainability 34 4.5 Peab school 35 5 DISCUSSION AND ANALYSIS 36 5.1 Concept ambiguity 36 5.2 Organizational structure 39 5.2.1 The Peab school 40 5.3 Communication 41 CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 2 5.4 Cooperation 43 5.4.1 Client procurement 43 5.5 Concept realization and conclusion 45 6 CONCLUSION 46 7 FURTHER RESEARCH 48 8 REFERENCES 49 CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 3 Preface The study investigates a concept and diagnoses the challenges involving its design and implementation from a change management and social sustainability aspect. The aim, scope and subject of the thesis were decided upon by the authors and thesis supervisors at Chalmers University of Technology and Peab. The work was primarily executed between February 2014 to June 2014 for the Department of Civil and Environmental Engineering, Centre for Management of the Built Environment at Chalmers University of Technology. We would like to thank Peab and its employees in their efforts and collaboration throughout the completion of the thesis, especially our supervisors at Peab, Kristina Gabrielii and Elin Olsson, whose knowledge and genuine interest in the thesis helped us shape it into completion. Finally a special thanks to Martine Buser (title eller avdelning) supervisor at Chalmers University of Technology, whose continuous aid and support was vital in producing the attained level of this thesis. Göteborg, 2014 Niclas Bergendahl & Oskar Käll CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 4 Wordlist Grey literature – Information that is published informally and often not accessible for external interests. Snowball sampling– Sampling technique where referrals from existing subjects lead to the recruitment of further subjects. In this case interviewees. Project partnering – The thesis refers to project partnering as a temporary structured collaboration between actors that through trust and cooperation works towards a common goal. Societal values – Values that explain the way in which social processes operate in a given society. The million programs – A common collected name of areas that were built between the years 1961-1975 in an effort to solve the present housing crisis in Sweden. Swedish public procurement act – A set of rules based on EU-directives to ensure fair procurements within predetermined principles. Peab Group - Peab´s core organization as well as its fellow subsidiaries. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 5 1 Introduction Corporate sustainability is steadily gaining attention among companies along with the rising awareness of the public and their demands (Eccles et al., 2012). Governance actors emphasize the approach for companies to become more accountable and responsible for their immediate actions affecting the progress of sustainable development. Focus has traditionally revolved around mitigating climate encumbrance and ensuring that environmental aspects are considered. While such efforts remains a central part of discussions and policies on the subject of sustainability, the need for responsiveness with regard to social aspects is seeing an increase among sustainability studies and organizational strategies. A factor of limitation for efforts with social origin remains the lack of existing methods to assess successful factors, which renders goals and policies hard to form and adhere to (Vallance et al. 2011). The context of social sustainability concepts is also a point of susceptibility as there is no one clear definition of the term and attempts made at a definition end up offering contrast or even contradiction. The term sustainability is broad and the elements of sustainability often exist in a form of close correlation with one another. Progress with regard to the social aspects could be gained as an indirect result from work done with other sciences, economic and ecological, but focus needs to be put on deliberate action. To discuss the challenges of social sustainability we look at how a construction company has tried to define and implement their own concept. In order to achieve this a collaboration with the construction company Peab was established. Peab regard themselves as the Nordic community builder with sustainable values present within the company profile where progress is depicted in their yearly sustainability reports (Peab, 2013a). The Bolyftet concept is an initiative from Peab that is aimed at more clearly defining sustainability work and develop new sustainable ways that are much needed in a construction sector where innovative progress is slow (Winch, 1998). This report recognizes the complexity and difficulty in obtaining change within an organization. 1.1 Background Today‟s society is seeing increasing segregation and the rifts between communities are only becoming bigger (Lilja, 2010). Focus regarding social planning and activities must change towards attempts at integration rather than the continuing projection of a negative trend. It is clear that in the form of social responsibility much is relying on and requires change on regulatory level by political and governmental instrument. However, in order to assure that such responsibilities are fully installed and utilized, responsibility and awareness also need to increase across the private sector. As such it becomes apparent that there exists a need for a higher focus on the concerns of not only environmental and economic nature but also those of social demeanor. The construction sector is constantly acclimating to the requirements put on it by the modern society with companies adapting and adhering to new regulations and rules, increasing the field of responsibility with an improved consideration regarding long term sustainability goals and policies. The nature of the profit driven market has dictated that emphasis was, and in many cases is, put primarily on short term objectives for quick financial gains neglecting long term sustainability aspects and creating problems that now needs to be solved (Martinuzzi et al., 2011). Today there can be seen a turn towards company incentives to push for finding solutions to limit CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 6 stress on the direct social and ecological environment. Such incentives are often based on the underlying risk losing competitive capabilities and fear of detrimental consequences to the profiling of the organization, which comprises that action taken is in many cases done so for the immediate continuing profit of the company. Peab has chosen to profile themselves as the Nordic community builder, as such it is expected that they be considered by their contributions to society (Peab, 2013b). As a private financially operated company without direct governmental influence the incentives for following through with this vision becomes hard to motivate if clear financial gains are not present. In reality obtaining such visionary goals of community builder can often contradict the measures of creating profit (Martinuzzi et al., 2011). The Bolyftet concept was developed by Peab as an initiative to incorporate sustainable values and embed them into early project planning and as such ensuring that projects achieve a sufficient level of their own definition regarding sustainability goals and that they meet future market demands. Peab has recently undergone departmental reorganization which has shifted responsibilities of the Bolyftet concept and therefore there is a need to trace and to study the progress and success of Bolyftet (Peab, 2014c). 1.2 Purpose This thesis was conducted with an initial purpose that later had to be revised, in agreement with the Peab supervisors, as the compilation and work effort of this thesis directed the authors towards a new objective. The initial purpose was to study and compare projects where Bolyftet had been implemented and to see to how social sustainability was considered by Peab as a company and also to view what contributions a contractor could and should offer towards social sustainability efforts. The purpose of this master thesis was reevaluated as it gradually became clear to the authors that Bolyftet had not been sufficiently established, conflicting to the authors and Peab supervisor‟s initial expectations. Initial expectation comprised that the concept would have permeated further within the organization and across projects, that details regarding the concept were better known among employees. It was expected by the authors and the Peab supervisors that the concept had reached implementation within conducted, and current, company projects. The restructured purpose became to determine the content of Bolyftet, its purpose and the scope of its use withing the organization. Focusing furthermore on identifying challenges and issues that hindered the development of the concept through its design and implementation phase. These findings are then compared to theoretical studies on innovation process withing sustainability; finally we assess and determine what Bolyftet have contributed to the Peab organization. The aim is also to find, highlight and diagnose factors that hinder change processes within organizations, primarily those operating in the construction sector. In correlation with the original purpose of this report, and with regard to preferences of the authors, the intent to determine the level of social sustainable initiatives within Bolyftet was retained throughout the report. The authors intend for this thesis to contribute towards helping the organization address encountered challenges and progress with the intended scope of the concept. The findings are not limited to only helping Peab but should also prove useful for CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 7 other organizations in the process of designing and implementing a concept or other change initiatives. Research questions:  What is Bolyftet and how was it designed and implemented?  What hinders the change process within the company?  How can literature be used to assess the initiatives taken regarding Bolyftet? 1.3 Method This master thesis has been conducted as a case study of the concept Bolyftet at Peab with the aim to determine its realization and level of implementation within company related projects associated with the concept. The thesis adopts an interpretive demeanor as collected information and data throughout the report could be depicted in multiple ways but require delimitation in order to be utilized within the boundaries of this thesis. The report values the individual views and values of employees within the organization which have proven vital to the progression of the thesis. The thesis has mainly been structured upon interviews conducted with Peab personnel. The aim and purpose of the report was originally chosen by the authors primarily in order to determine the actions and measures taken towards sustainability efforts of the contemporary contractor businesses within the construction sector. The focus of the thesis as the case study of Bolyftet was determined with the aid from Peab supervisors; Bolyftet is perceived by Peab to be one of the few existing concepts with large focus put on social sustainability. The authors‟ initial belief prior to the execution and compilation of this thesis was that the social aspects of sustainability efforts are often put aside at the benefit of both economical values as well as environmental ones. In order to achieve a future where cities are deemed truly sustainable there is a central need for a higher focus on the social features. The constitution and creation of this thesis was deemed by the authors to be a coherent step at completion of studies related to the theoretical subjects disclosed in the thesis as well as the focus on the construction sector. In addition to the interviews with predetermined structure of questions the report has benefited from informal meetings and discussions held with company employees on subjects related to the research questions of this thesis. The informal sources of information in addition with grey literature helps build upon, and validate through the level of reoccurring information, how Bolyftet was perceived throughout the organization. In the process of following through with the intended purpose of the thesis the road to completion of the case study, and the collection of data, will be conducted as an analyze of functions and personal within the company structure. During the progression of the thesis a close and collaborative connection has been held with the company, with the authors participating in daily routines and having available workstations at the company offices. This gave opportunities to note discussions and contemplations of company employees and as such attain a form of informal knowledge about the culture and embedded values present within the company in question. In addition to personal interface, access was also granted to internal databases which enabled the possibility to gather grey literature on related and studied subjects, further adding depth and CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 8 foundation to the thesis. The results, discussion and conclusion of this article is meant to not only serve as a diagnosis of concept variables for Peab as a company but also as an evaluation of how a major contemporary contractor chooses to act with regard to the social sustainable community. Interviews and informative discussions were held with Peab employees as well as an external interviewee employed by a publicly owned client office. This will allow the authors of the thesis to obtain an understanding of how Bolyftet has been perceived by the people working in close relation to it and also to discern how the social sustainability aspect is regarded in relation to economic and environmental aspects. The initial list of interviewees was supplied by supervisors at Peab and consisted of a select few individuals who had worked in relation to either Bolyftet or with sustainability efforts within the company. To further gather data and to identify additional valuable interviewees the authors applied snowball sampling, a technique where referrals gave new interview subjects. As the planned interviews consisted of such a limited group the interviews adopted a qualitative form. The interviews with Peab employees where conducted with seven members of the organization of varying areas of expertise and knowledge about Bolyftet, and related subjects, within different hierarchical levels. The employees interviewed consisted of; a team leader within the Peab business area of construction and work tasks related to on-site planning and execution, five managers at different branches within Peab but all of them with background and work duties related to Bolyftet and subjects discussed in this report. The majority of the interviewees had previously worked with content related to Bolyftet. The referral to interviewees throughout the report assumed an abbreviated demeanor which offered the interviewees a level of anonymity, at least to external sources outside the confines of the Peab organizational structure. The initial interviews with Peab employees were structured to supply the authors with an introduction to the organization and the concept Bolyftet. As the interviews progressed they grew more focused on discerning specific details from interviewees and as such provided in-depth knowledge and information regarding investigated areas. The interviews with an external client office offer contrast to the thesis and showcases how the view on work towards sustainability and the commitment and endeavors of companies, such as Peab, is viewed from a different perspective. Approximately between one to two hours were set aside for each interview with several of the interviewees approached repeatedly to further develop and elucidate specific areas of interest throughout the compilation of the report. A semi-structured approach was used during interviews to allow for previously mentioned interview progression, Attention was closely paid to making sure that interviews were held within subject. A critical and impartial approach has been present during the progress of the report. The interviews were conducted with a qualitative approach with emphasis and weight put on the communicated thoughts and information of each interviewed individual and as such it is important to be aware of potential biases and deviating views. The layout and structure of the interview questions where conducted in a manner were replies and discussions to topics would reach a level of saturation. This saturation establishes trustworthiness to the gathered results and to the conclusions later presented in the thesis. However, it is important to realize that while qualitative the amount of interviews remain limited in number and as such could not be declared to reflect the CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 9 opinions of Peab as a company but should and will remain statements by individual accord. Bellow follows a brief account of the interviewees that participated throughout the report. Interviewee number one, the Client The interview with Client was conducted with a manager at a publicly owned client office where work tasks consist primarily with conducting renovation and refurbishment. The Client had previous experience from working as a facilitator as well as a supervisor at constructions sites for a contractor. Current work tasks include working as a coordinator between facilitators, landlords and project leaders. Through this function the Client is able to get a broad overview and observe a perspective of how different actors collaborate within the construction sector. Interviewee number two, Manager 1 The interview was conducted with a Peab employee working within their technical department in the construction business area where he is responsible for specialist tasks with regard to technical solutions. The interviewee has worked in relation to Bolyftet with regard to attempts made at implementing technical solutions and investigating how the concept could benefit from standardization efforts. Interviewee number three, Team Leader 1 The interviewee currently works as a team leader at special projects but started the career at Peab being newly recruited from school as an environmental coordinator. Initial work tasks included responsibilities to act as a coordinator during the meetings that would eventually lead to the conceptualisation of Bolyftet. Interviewee number four, Manager 2 The interviewee works as Sustainability manager at the Peab Group. Work responsibilities include interpretation of strategies and policies with tasks often related to presenting the company to the outside world, clients and other actors within the sector, with focus on sustainability issues and questions. The interviewee reports directly to the concern manager which gives her the opportunity to affect the decision- making within the high echelons of the company. The interviewee was also a supervisor for the thesis. Interviewee number five, Manager 3 The interviewee works as managing director of the Peab school organization, which incorporates a upper secondary school system on five different schools that operate within Sweden. The interviewee also works as a competence developer manager at the Peab Group where work functions primarily include developing employees within the company and also to be available as a support function. Interviewee number six, Manager 4 CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 10 The interviewee works as a regional manager at the division of single family housing within the Peab Group. Single family housing is the division responsible for the construction and development of smaller housing projects that Peab commits to and relates out to the business departments of construction and marketing. Before the end of the year the interviewee was the owner of the concept Bolyftet which includes a driving and advisory role. The interviewee was not present at the creation and design of the concept. Interviewee number seven, Manager 5 The interviewee works as a coordination in the CSR department within the Peab Group. The interviewee works closely with Manager 2 with sustainability questions as a supportive function throughout the organization. The interviewee was also a supervisor for the thesis. The interviews were conducted in Swedish as to avoid limitations for the interviewees in the form of language barriers and as such obtaining more extensive and true answers to the asked questions. The sum of the interviews where then later translated into the language of this report and due to this the author‟s reserves the right to a free translation of content. The results from the interviews were complemented with grey literature consisted of personal protocols and notes from Bolyftet since the concept‟s creation. Peab supervisors were contacted on a regular basis with questions and contemplations regarding the subject. The supervisors have also continuously been involved with reviewing the report. Information and data associated to the subject of project based organizations, social sustainability and change management was collated into literature studies which form a knowledgeable platform which supports the writing present in later parts of the thesis. Information has been continuously gathered into said compilations. The authors of this thesis has also benefited from previous work conducted in subjects with regard to sustainability, primarily in the form of assign report work during the studies at Chalmers. The conducted interviews, gathered grey literature and discussions with Peab personnel collectively triangulate into a validation for the eventual discussion of this thesis. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 11 1.4 Limitations and boundaries In advance of, and during, the compilation of this study the authors have set a number of limitations and boundaries upon the thesis. This is done in conjunction with the purpose of the thesis and will avoid creating an unachievable scope and to adapt the range to the available time frame for the thesis. The method for reaching the purpose of this thesis is limited with regard to range of theoretical studies conducted and even more so in the theoretical framework presented within the report. The theoretical framework offers direction and outlines for the later stages of results and discussion of the report, affecting the presented data and forms the spectrum from which the full content of the thesis is studied. Bolyftet as a concept model comprises five different areas of focus but due to the status of the concept the content of this report will primarily consider the areas of one, two and three, namely the areas of attractive living, social accountability and participation and information. The three areas all incorporate some level of social responsibility. A more in depth view into the concept model is presented in chapter 3.3 of this thesis. The qualitative interviews that were conducted in the compilation of this thesis were limited in number which creates a situation where all opinions and perceptions of the concept within the company profile may not be represented in the report. Though there exist other concepts and policies, within Peab as well as other firms, working towards the benefit of social sustainability Bolyftet remains the sole concept within which success and actions are reviewed. The discussions and investigations that follow the results of the report will note the disruptive and hampering effects of the wide range of actors that play part within concept utilization but focus remains on the construction industry and with regard to Peab interviewee reflections. The authors have at times throughout their research been present at the Peab office where they have participated in the daily routines at the organization; this has offered considerable benefits but at the same time may have compromised the objectivity and neutrality of the interviewees. The authors have with the benefit of the knowledge of such compromise always kept reviewing the progressing thesis in collaboration with the thesis supervisor at Chalmers University of Technology. The authors have limited the report with regard to mentioned progress of sustainability efforts. The thesis mentions the Rio Earth summit and the repercussions that has followed but does so primarily to refer to it as a historical event which has affected the reality of the construction sector. The report will make no direct attempts at evaluate such progress, with reservation for remarks by interviewees and the discussions that followed. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 12 2 Theoretical background This chapter summarizes the theoretical material that was studied and used in the report. It was done in order to gain a wider understanding of the studied subject. The theoretical background defines the theoretical framework which concepts and theories are discussed against in the results and in the conclusive discussion of this thesis. 2.1 Defining sustainability During the Rio Earth Summit in Rio de Janeiro, Brazil, 1992 world leaders and officials of international community‟s sat down for conference with the purpose of addressing urgent concerns and problems with regard to contemporary views and attitudes on environmental protection and socio-economic development (Olsson, 2012). Direct results from the deliberations held during the Earth Summit include principles and concepts which were to be internationally adhered to. These concepts included clear social directives amidst economic and environmental mandates and offered further incentive amongst organizations to combat such fundamental issues as poverty, economic inequalities and ecologic injustices (United Nations, 2014). The sustainability concepts offer directives but not definitive solutions; this renders them accessible in terms of variability, development and as such also to a relative degree of interpretation. Due to the interpretive manner of such concepts it is vital that more distinct goals and documentation is stipulated in order to avoid that individual and arbitrary values prevail (Olsson, 2012). Sustainability systems are often defined by the system‟s ability to function without exploitation, overuse or destruction of resources and services which are necessary to ensure agreeable living standards for future generations, as such the definition is often closely related to the one provided in the Brundtland Report, Our Common Future: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987). It is also common practice to measure the relation between units to determine the level of exploitation, an example of one such measure is the ecological footprint (United Nations, 2014). Since the Earth Summit there exists a positive change in the attitudes and attempts to reach and develop environmental, economic and social policy goals but with the wide assortment of sustainability topics and efforts there has also come confusion (United Nations Environment Programme, 2014). It is clear that social aspects of sustainability policies have been subsumed by environmental and economic counterparts and it is also with regard to the social aspects that the existing confusion is the greatest (United Nations, 2014). In What is social sustainability (2011) S. Vallance et al mentions that the confusion has led to a degree of conceptual chaos which compromises the utility of the term social sustainability and thus limiting the usefulness and expediency of such sustainability efforts. The general lack of clarity, and even ambiguity, among definitions of sustainability terms renders work within the field obscured and where an absolute definition is unmanageable it becomes a vital part of the process to further explain and organize case specific circumstances and efforts. There is a wide range of literature documenting attempts to bring clarity to the concept of social sustainability (Martinuzzi et al. 2011). Due to the complexities of the social science, and its correlation to other sciences, it requires study and discussion unique to every case and problem (Omann et al. 2002). The fact that the CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 13 topic is subject to individual interpretation also makes organization and definition harder (Vallance et al, 2011). Vallance et al makes an effort where they in What is social sustainability (2011) evaluate the work of different authors on the subject of interpreting social sustainability and reach the conclusion that the taxonomies of each individual author are either incomplete or too difficult to apply in general reoccurring situations. The evaluation consequently shows of the difficulties and defiance with attempts made at providing clear defining characteristics to the topic. The previously mentioned excerpt from Our Common Future (WCED, 1987) is often drawn upon when attempting to define the sustainable efforts and as a definition it is very appealing due to the rules it abides by, as it fulfills the needs of the present population without endangering that of the future. That being said it is clear that such thoughts presently represent an overly idealistic view and would prove very hard to establish and truly ensure (McKenzie, 2004). The Brundtland definition has also received criticism for being too vague of a definition, allowing stakeholders to continue harmful operations while claiming to favor sustainable development of the future generations. There thus exists a need to further evolve and customize such definitions in order to assure that sustainability is truly achieved. Vallance et al (2011) argues that most interpretations and attempts at procuring a single definition of social sustainability ends up raising as many, or more, questions than being answered and rather than following along the same pattern they offer a typology of the subject, comprising interpretations of social sustainability definitions into the three parts of „development‟, „bridge‟ and „maintenance‟. „Development‟ represents what people need and addresses issues with regard to poverty and inequity whereas the „bridge‟ encourages stronger environmental ethics and promotes ideas that relate to positive environmental outcomes that follow as a result of development. Lastly, „maintenance‟ is what people want and development is focused on preserving social and cultural patterns. It becomes obvious that there exists not only struggle between social sustainability against environmental and economic terms but also within the social aspect alone. Vallance et al concludes that by separating the social sustainability aspect as a whole into departments would allow for a better understanding of the subjects complexity. They advocate that further need of recognition of social sustainability intricacies is required and that practitioners of different sciences should be working in close relation and thus incorporating social sustainability efforts and developing them alongside those of environmental and economic nature. The occurrence of conflict between the sustainability policies exists in different variations and connects to different definitions of the terms (Vallance et al, 2011). Social sustainability defined as that cities work satisfactorily to create good living standards could be seen to act counter-productive to certain environmental measures, such as limitations issued on private auto mobility, while economic incentives often prove hampering to both social and environmental progress. It is becoming increasingly important to understand underlying reasoning behind initial resistance and to initiate communication between representatives associated with different sustainability efforts in order to solve or avoid conflicting interests. Social sustainability is often put secondary, or tertiary, to that of other sustainability aspects but for many the full range of environmental issues can only be battled once secure social living standards have been establish. It becomes impossible for citizens that are denied a basic level of social safety to join in efforts towards environmental prowess and offers an example of how poverty can act as a barrier to green technologies CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 14 (Crabtree, 2005). Realizing this and working towards a more social sustainable future would contribute to the full range sustainability efforts. 2.1.1 Measuring social sustainability As mentioned in the previous chapter it is common practice to measure the relation between units to determine the level of exploitation in order more clearly view the effects of actions taken and correlation between input efforts and results. However, attempting to measure action affecting social aspects prove to be a much harder enterprise than similar action with regard to economic and environmental counterparts (Berkeley Group, 2012). A well developed and highly specified framework can offer indicators to assess progression or regression, but even then it remains difficult to measure social sustainability. Standard measuring methodologies that would be applied on measuring sustainable development of ecological as well as economical dimension are not able to fully support cases of assessing social sustainability (Omann et al, 2002). Omann et al has in their work Assessing Social Sustainability (2002) derived four core factors afflicting social sustainability and giving cause to the problematic issues with measuring it. The factors are lack of conceptual clarity, concept complexity, hesitancy to formulate normative targets for measurement and the issue with defining social objectives as a part of the collaborative sustainability effort. These challenges support the assertion of social sustainability complexity, lack of clarity and ambiguity that are mentioned both previously and further throughout the results and discussion of this thesis. Social sustainability is often mentioned in the form of social sustainable development, which requires that the term of development is specified and explained. Development is thought of as an increase in well-being across the members of a society between two points in time but the complexity of definition is also apparent with regard to the concept of well-being since there exist no single, nor clear, definition to the term and the determinants of the concept are under continuous debate (United Nations, 2009). Well-being has much potential for measuring the social sustainable development but must be viewed as a function of enjoyment of any good or service that contributes to well-being, something that has not been present in traditional definitions of the term where economic boundaries are normally applied (Stevens, 2005). 2.1.2 Implementation within construction organization In relation to the construction industry the described conflicts of sustainability definitions and framework exist not only between policies but within the actors of the building process themselves (Martinuzzi et al. 2011). There is a need for synergy between actors and stakeholders to ensure that contrasting views are discussed. As such social sustainability must first be required by at least one of the participating actors in order to be considered and have a chance at achieving implementation (Martinuzzi et al. 2011). The presence of social measures and responsibility within construction processes and projects has historically been slim as cost, time and quality are traditionally perceived as success parameters within the construction sector, parameters which dictate terms of the contemporary construction project (Hughe et al. 2004). While success factors of cost, time and quality ultimately affect the competitiveness of the construction company (Ball et al. 2000) it has become essential for the contemporary contractor to consider sustainability aspects to remain competitive (Griffits and Bhutto (2008). The level of competitiveness relies heavily CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 15 on the communicative technology available within the organization and also within its ability to adapt to change (Love and Irani, 2004). In order to realize and utilize in- place communicative devices it is important that organization employees receive ongoing and continual training and education (Martinuzzi et al. 2011). The construction companies within the sector are traditionally characterized by the temporal character of the construction site and the project based organization (Martinuzzi et al. 2011). The market is in many cases driven solely by price competition, in relation to the law of public procurement, which promotes ideas and mechanisms that contribute to economic gain and swift construction. It has, and continues to be, a market that is hard to bring new ideas to. Much responsibility lies on the involved actors of each project and the scope, plan and execution of projects is formed and developed according to these actors‟ interests and requirements. In order to assure that corporate social responsibility measures are incorporated into the structure of projects it is required that it is perceived as such by actors. One way to successful accomplish this is to create legislative work for governmental projects and policies within construction company profiles (Martinuzzi et al. 2011). When reviewing literature about CSR and sustainable efforts made in the construction sector it quickly becomes clear that incentives are often lacking with regard to social aspects. Cost, time and quality have traditionally been, and continue to be, the parameters upon which success is measured against. The wide range of literature that exist focus on critical success factors which further develop a company‟s ability to be market competitive and to assure economic gains (Martinuzzi et al. 2011). It has to some degree become essential for companies to consider environmental aspects to remain competitive on the market but even in the cases of such endeavors it is common practice that economic directives dictate to what level such aspects can be seen and adhered to (Griffits, Bhutto, 2008). In relation to the purpose of this report it becomes important to look at the suburbs created in the post-war period that now require physical renovation, such as the “million program” areas in Sweden. Social sustainability efforts in these suburbs focus on ensuring compliance with goals of environmental sustainability but these areas of often plagued by social issues, such as unemployment and poverty, rendering the areas lacking with regard to social sustainability. With regard to urban planning of such areas it is common and good practice to include consultation and participation of inhabitants affected by the construction and planning efforts (Cupers, 2001). Participation of inhabitants often offers a contrasting, and perhaps even paradoxical, opinion to the one of involved experts of project planning. The consultation of inhabitants is a possible solution to answering often occurring problems with regard to urban planning of existing suburban residential areas but such consultations can be criticized for often viewing opinions and feedback in strict controlled categories, thus reducing inhabitants to statistical accords (Buser and Koch, 2014). 2.2 Project based organization Many construction companies face off with a multitude of unique projects, each with relatively unique demands that are continuously changing (Sydow et al, 2004). In the process of assuring that the organization is able to cope with each customized project with associated client demands, it is common practice that companies divide their services and products into each project giving cause to a self-reliant organization based in each project. Gaining an understanding of the functions within a project CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 16 based organization is vital in order to derive how decisions and knowledge are transferred in the organization. Sydow et al (2004) gives a broad definition of a project based organization stating that: “Projects based organizations refer to a variety of organizational forms that involve the creation of temporary systems for the performance of project tasks”. Further acknowledging that: “…projects and project based organizations can be very diverse, ranging from organizational units to organizational fields”. The definition effectively summarizes the range of organizational structures present within the contemporary construction industry. Lundin and Söderholm (1995) further describe the temporary organization, or project based organization, more closely with an added framework of four basic concepts; time, transition, team and task. “Time” refers to the limited time of life, or existence, of the organization as the organization is expected to dissolve within certain duration as the project reaches completion. “Task” is then described as the limited number of defined activities expected to be executed within the established “time” frame whereas “team” regards the temporary affiliation of workers gathered to fulfill the tasks within the time limit. The fourth of the basic concepts is “transition” which considers the endeavors and ambition of the temporary organization and as such refers to that an activity, or “task”, has been made which has led to a change. These together create a conceptual framework for the project based organization. Projects are often located seemingly isolated without direct connection to the wider main organization. This isolation from organizational structures and control mechanisms causes chances of innovation and learning. Primarily in the process of the efforts made to achieving customized solutions in the relative short time span that is a project. One problem that the project based organization suffers from lies in its capability to capture and share such newly gained knowledge within and across projects and the organization (Scarbrough et al, 2004; Newell et al, 2009). There is a notable risk and consequent occurrence of project teams continuously “reinventing the wheel” as similar problems are not only solved again and again in various projects but the solutions have to be recreated and reimagined in each instance due to the lack of knowledge sharing (Sydow et al, 2004). In a project based organization the transfer of knowledge becomes complex since it regards the sharing and mining of personal individual competences and as such learning and knowledge within the temporary organizations can be regarded as organizational learning when transferred between projects. The presence of sporadic exchanges of information through informal, as well as formal, means such as meetings and conversations could, if studied carefully, prove to be an important factor for the level of competence that exists within the organization (Sydow et al, 2004). The processes of informal knowledge transfers are important to an organization but due to the lack of controlling mechanisms there is no guarantee that knowledge is fully communicated throughout the organization. In order to facilitate knowledge and to enable a successful learning process from completed and ongoing projects it is important to develop future processes of information transferring further and to increase the presence of such processes. At project completion companies‟ often ask employees to assess and evaluate work procedures in projects. The information is then digitalized to a company database which is made available to employees of all project organizations. The database serves the purpose of ensure that individuals have relevant and often valuable CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 17 information at their disposal. When such information sources are utilized the knowledge and sharing between projects and within the organization becomes enabled (Newell et al, 2009). Sydow et al (2004) describe that success of a project based organization often stems from the accomplishment of the project teams on site, but that it is through the continuous development and coordination by the fixed organization that knowledge and information is spread and shared across boundaries, boundaries that would otherwise be hard to surpass. The need and ways for storing information in organizations differ among companies and according to Gerth (2013), even within projects. Where extreme product customization is present in the business market the emphasis will be put on enabling efficient information processing for each individual project. This would in turn reduce the usage and applicability of stored information since it becomes hard to standardize such use within the different projects of the organization. Gerth goes on saying that: “...it is inefficient to store information where there is a risk that this information will not be used in other projects”. Environmental aspects, as in direct social environment, are seen as vital factors affecting individuals learning and ability to transfer knowledge. Newell et al (2009) explain that an environment where work routines are not as strictly followed, as in projects, enhances the learning and improvisation capabilities in the daily work. Sydow et al (2004) also express the same ideas saying that routines and standardization limit the learning capabilities gained from projects if constrains are present that hinder project learning. However, in contrast they also express that standardization and repetition leads to increased efficiency, which is often noted in literature concerning efficiency (Liker, 2004). CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 18 2.3 Change management Change is continuously occurring within companies, failing to utilize change could leave a company rendered out-dated and stagnated. Changes occurs when moving from a present state towards a future improved state, something that often proves beneficial for companies as it improves their competitive advantage and ability to meet new demands or regulations (Gareis, 2010). Planned change is highly complex and widely debated in literature and this chapter will help shed light of the complexity of planned change within a project based organization. As mentioned in the previous chapter the project based organization offers a unique setting for increasing innovation due to its loose reins towards the organization, but capturing and sharing new innovations are found problematic for the same unique setting, decentralization, that is a project based organization (Bresnen et al., 2004). The various projects that are present within a project based organization will interpret new knowledge and change differently, consider the project management practice and direct structure of present organization. Many authors highlight various difficulties in applying change to an organization, several aspects need to be considered to achieve organizational change and such aspects are commonly debated in literature. Sonenshein, (2010); Cameron & Green (2009); Gareis, (2010) all emphasize that one should be aware of alterations on change implementation that can occur due to differences in social, structural and cultural environments. Sonenshein (2010) points out that alteration can occur when leaders fail to transmit a clear and uniform message, which create unequal preconditions interpret new knowledge and changes among employees. Furthermore Sonenshein (2010) and Kritsonis (2004-2005) describe that there may exist potential resistance and lack of enthusiasm among employees when changes are implemented, causing further alterations and moreover affecting the time plan for the change process. Bresnen and Marshall released a report in 2001 explaining the difficulties in applying new management ideas originating from other industries into the construction industry. The report highlights and allocates several problems that are found hampering to change processes within the construction sector. Bresnen and Marshall (2001) also points out that new management ideas, originating from other industry sectors, involved in change processes are at risk for being altered in a way that changes the initial purpose and content of the idea. This occurs in the efforts of trying to adapt to the new delegated changes more easily, consequently leading to a lack of commitment and loss of conviction. It is further explained that by comparing the manufacturing industry with the construction industry, that one should be aware that new manufacture processes, such as lean production, pose a distinctive hindrance when applied within the construction sector. Since each project is regarded as unique, it is hard to obtain a repetitive and standardized work process that is needed for easy implementation and appliance. Situated projects offers a unique environment with a strong local presence, where project managements have their unique practices of working and stress originating from meeting project objectives, this will influence and potentially cause conservative influence on changes (Bresnen et. al, 2004). A clear change process can therefore be vital in achieving necessary conformity and pushing progress forward. Identifying elements that could hinder and disrupt change process are important to be aware of so that not common mistakes are made unnecessary. Lozano (2012) presents a list of barriers to change that hinders companies trying to implement corporate CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 19 sustainability through organizational change, by identifying and acknowledging them, certain measures can be applied in order to avoid them. Lozano further specifies the barriers to change and divides them into three groups, individuals, groups and organizational. Presented in Table 1 are some of these identified barriers to change that could be applicable to other organizations. Individuals  Lack of awareness  Lack of information  Not seen as priority  Laziness  Lack of time Groups  Difficult to see connection or relate it to everyday activities or jobs Organizational  Not yet seen as adding value to the company  Middle management short-term constrain  Managing change  Difficult to measure the effectiveness of the implementation  Lack of holistic focus in operations  No clear business case  Linear thinking  Lack of systems thinking  Lack of rationale and purpose clarity  Lack of management commitment  Lack of motivation of middle- and lower-level staff  Economic focus that disregards or consider environmental and social aspects as costs  Insufficient mechanisms for learning  Lack of trans-disciplinarily  Lack of trained employees  No clear vision of sustainability that leads to mere compliance with regulations  Lack of communication  Failure to incorporate sustainability in core policies and procedures  Unsuccessful incorporation attempts The table provides a simple but clear overview of typical barriers that could hinder change; this is useful when attempts are made at implementing change as it gives a way to avoid repeating similar mistakes. There are significantly more barriers identified within the organizational group, indicating the importance of organizational structure and management in change processes. Kotter (1995) also recognize the possibility and relevancy for companies to understand and learn from other companies‟ previous attempts to change, by breaking down why transformation efforts often fail and then illustrate eight steps or eight lessons towards transforming an organization and thus avoiding unnecessary risks. Each step is applicable to help guideline corporate change, whereas skipping steps CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 20 often lead to unsatisfying results, below are summarized some vital points of each of the eight steps (Kotter, 1995): 1. Establish a sense of urgency, an essential step, since without the presence of proper motivation individuals may not contribute in the change process. Furthermore highlighting opportunities and hindrances but also asses current market situation. 2. Forming a powerful guiding coalition, forming a team with enough leadership and competence to lead the change. This enhances the chance for employees to commit to the change and spread within the company. 3. Creating a vision, to guide the change effort and form strategies to help achieve this. Unsuccessfulness regarding vision attempts or lack thereof leads to confusion and detours. 4. Communicating the vision, the vision should be according Kotter (1995) be communicated with a factor of ten, thus ten times than what is believed necessary. This to assure employees support, involvement and understanding of the change. 5. Empowering others to act on the vision, enabling room for employees to act by removing hindering obstacles to change, such as present structures or systems. Heighten innovation possibilities and risk taking encouragement; actions declare credibility of the change. 6. Planning for and creating short term wins, plan for and assure a certain level of visible improvements further enact on them rewarding involved people on the made improvements. This to enable employees to see that changes are happening and do not lose sight of the goal. 7. Consolidating improvements and producing still more change, this stage reaps benefits of previous made implementation and ensure continuous work are made toward change, this by energizing the process, through for example new projects, promoting of employees and resources. By doing this the company avoids declaring success too early before the change has permeated deeply enough into the company that could cause regression and the change to slowly disappear. 8. Institutionalizing new approaches, advertising and highlighting links and connections of the made changes towards corporate success. Ensuring that all employees understand the gains thereby anchoring changes in the company culture. Kotter‟s eight step model is one of many attempts to describe and help company‟s change transitions, but there are almost as many methods and model as there are ways to change (Cameron & Green, 2009). Different methods highlight different aspects that need to be solved towards achieving actual change, whilst none of them appears to emerge as the absolute solution. Emphasis need to be put on choosing the right method and appropriate model for each unique situation. Cameron & Green, p.338 (2009) further present factors they found necessary for managing change based on a comparison of various researches made in the field, saying that: "Control and structure comes up again and again. The need for excellent plans, good systems and processes and a clear vision are all repeating themes. Our reflection is that an optimal amount of structure is beneficial to change, CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 21 whereas too much creates organization sclerosis, or „stuckness‟. It‟s not as easy as saying „be brilliantly organized and you will succeed‟. Energy, passion and continuous communication are all seen as essentials. But as we review this information, we notice that energy, passion and communication are the stuff of life itself. Organizations that lack these things, and have to legislate for them, or coerce people into giving them, are probably in trouble at the core". Lozano (2012) provide a model that considers many of the previous highlighted aspects, offering a useful and clear overview of the change process, as shown in Figure 1. According to Lozano (2012) leadership is one of the most important internal drivers for change, initiating the process, whereas the institutional framework provide stability through the change. It also depicts that change need to be continuous, especially when working with sustainability changes that is dynamic and ever- changing, moving from “status quo” to “status quo novus” or “more sustainability oriented state ”and then start over again when changes has reached a certain level of stability in the organization, which is indicated by the transition period in the figure. The figure also shows the strategies that are implied to function as a leverage overcoming inertia, or barriers to change, ensuring further progress for the change over a transition period. Figur 1: Overview of change process. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 22 3 The Peab organization – The case This chapter proposes to introduce Peab‟s organization to the reader and describe vision, relevant values, projects, areas and branching departments that lie imbedded within the organization. Prominent initiatives are described as to tell of the processes and steps towards a more social sustainable aware company that has occurred the recent years. It is based on the information obtained, presented and evaluated in this section that the current efforts of the organization are finally assessed and measured against. 3.1 Introduction to Peab organization Peab´s history dates back to 1959 where it started as an idea born from cooperation between two brothers in southern Sweden, an idea that later came to form the organization that is today known as Peab. Peab has since its foundation established themselves as a major contractor throughout the Nordic region, operating in Sweden, Norway and Finland, developing to one of the biggest construction and civil engineering companies in the Nordic region (Peab, 2013a). Today the total amount of personnel employed within the organization is over 13,000 and the company is still known for having maintained the values of family and social collaboration from which its foundation originates. The primary business conducted by the company is divided into four different business areas; construction, civil engineering, industry and project development. A central part that stands included in the organizational structure is the executive management which includes the business area managers who oversee the regional managers that are located throughout all the branches of the organization, see Figure 2.1 (Peab, 2014c). Their presence at local sites and offices is a way to enhance and support customers, employees and production. Furthermore Peab have five clear and well defined supportive functions that aim to align and coordinate tasks, processes and strategies present within the different departments. The presently existing supportive functions are aimed to help in the fields of; personnel, economy and finance, information, sustainability and purchasing. Figur 2: Peab's organization. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 23 3.2 Peab business model Peab has designated their company as the “Nordic community builder”, words that pose a demand on the organization and its actions (Peab, 2013a; Peab, 2013b; Peab, 2014c). To establish them and help achieve this outspoken role Peab has developed a business model consisting of four basic levels, levels that are designed and supposed to permeate through the organization, aiding the different business areas in their conjoined efforts towards achieving mutual goals, see Figure 3. At the center of said business model are four imbedded core values which together represent the cornerstones of the organization, establishing a certain company culture and also offering guidance and routines. These outspoken values are; personal, reliable, developing and down-to-earth. According to Peab they help put emphasis on obtaining positive attributes in its personnel, such attributes as being innovative, flexible, sensitive, approachable, honest, trustful, ethical and safe. Providing and expressing these values does not assure that a sufficient level is met among employees, but rather help create a foundation and offer possibility so that each individual employee can adapt and grow towards a common objective. The sequential level contains the business concept, which Peab according to the “Sustainability report 2013” and the “Annual report 2013” defines as following: “Peab is a construction and civil engineering company that puts total quality in every step of the construction process first. Through innovation combined with solid professional skills we make the customer‟s interest our own and thereby build for the future”. The third level contains each previously mentioned business area that Peab has divided their organization into. This level reveals the capabilities and resources of the company required to conduct the services tasked with within the construction sector. The last level is composed of the collected visions and strategies that help develop the organization and navigate such development in a predesigned direction. Figur 3: Peab's business model. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 24 3.3 Bolyftet In 2011 Peab launched Bolyftet as a part in their efforts to broaden their sustainability focus and enhance the refurbishment processes regarding the million programs but also as a concept that could permeate through the company to enhance the projects in general and offer more focused solutions with regard to sustainability (Peab, 2014c). Bolyftet is explained by Peab (2014c) to be a complete concept that balances sustainability aspects from social, economic, environmental and energy efficient solutions. The goal is to provide a potential client with a package containing all the possible solutions and measures that can be implemented on a project and that the client then would chose a set of requested parts suiting all of the client's needs (Peab, 2011a) The proposed solutions offered to the client are evaluated by Peab employees with regard to the technical data attained from the project area which are measured against regulatory requirements. Bolyftet aims to offer residents affected by projects the opportunity to contribute to the creation of their new homes and also allows for individual choices which directly influences their living situation (Peab, 2011b). This is allowed through a process of workshops and meetings where subjects related to the project can be openly discussed, often with the possibility of an interpreter present to limit the complication of language barriers. Within every project there should also be a spokesperson appointed that speaks for the majority of the residential community, such a spokesperson should be present during the entire project process. A model was created to highlight the specifics of the concept, a five chain model as shown in Figure 4, where each chain is equally important in order to achieving a successful implementation of Bolyftet. The five chains of the model are the following: 1. Attractive living - Improving the infrastructure, enhance outdoor areas, closeness to work place and modern waste facilities are examples that helps create a prospering and vivid area where people feel secure and wants to live in. 2. Social accountability – Creating work possibilities and education opportunities within the projects hinders the segregation and unemployment that is often present within the million program areas. Also measures are taken to enable older people to stay in the area. 3. Participation and information – This has a vital part of Bolyftet, Peab believes that participation among residents and other stakeholders in an early phase of projects is important to achieve the best results possible. Documentation, protocols, workshops and surveys make sure that all voices expressed. 4. Effective production – Choosing the right methods and resources for a successful construction process minimizes strains and complains from stakeholders. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 25 5. Economic interaction – Ensure a multitude of solutions and support for developers to suit their needs from all phases in the project. 6. Figur 4: Bolyftet model (Swedish version). 3.4 The Peab School The Peab school is a subsidiary company to Peab and was founded in 2006 by the iniative of the founder and former CEO Mats Paulsson (Peab school, 2014). The school was founded to offer the unique possibility to Peab to help educate and shape their own future workforce. The school program offer education at a upper secondary level with graduation leading to students qualifying directly as workers within the construction/building trade (Peab school, 2014). Since its launch the school has incorporated a social commitment to help bring a modern and high quality education to students who lack the benefit of having completed previous studies within the obligatory elementary school years. With regard to this the schools have a number of openings available to students who lack complete ratings. The school naturally stands close to the construction business and as such offer opportunities for on- site training and education. As an upper secondary school the Peab school undertakes the task of not only education an efficient workforce for the company itself but also to mold new members of society, a task which leads the school to incorporate education within sustainability imitative (Peab school, 2014). CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 26 4 Results The chapter gathers the compiled information from the interviews conducted with Peab personnel, interviews with external stakeholders as well as data sampled from grey literature. 4.1 Concept creation According to the provided gray literature and interviews, Bolyftet was created to be a dynamic and flexible concept that would cater to the pretense that every project is unique. Expanding the areas where the concept could be utilized and also create the best possible market value for the concept. Regulations regularly change, making it important for the concept to adapt to new standards and procedures. Bolyftet was meant to be a framework which could supply individual projects with ways to implement concrete solutions to reoccurring activities in the building process. In order to determine the range of activities and measures Peab would initiate contact with a client assessing their requests and wishes and then customize Bolyftet to the intended use. Through negotiations Peab attempts to bring added value to planned project processes in order to offer the best possible solutions to the client. Team Leader 1 was present during the creation of the concept and participated at the meetings that were held to create the concept. The original team present at meetings consisted of some 20 people of different hierarchical position and duties that were split into four different groups. It was unclear to the interviewee if the intent had originally been to create a fully-fledged concept or if it was just to discuss different areas of expertise within the company. Most of the involved actors during the meetings had extensive experience of work within the sector and the approach was as such prioritized to shed light on traditional financial questions and of ways to increase effectiveness of the work. Manager 4 says that the concept was originally created since there is a huge need of refurbishment of the million programs. The initial idea of Bolyftet was a concept that would try to showcase what efforts must be done to refurbish existing houses to current standards and compare such activities to the constructing of new homes. The concept proposes a plan for early project stages to determine what can be done and what is economically viable for client, contractor and residents within the involved project areas. Attempts at implementation of the concept were prioritized to the larger cities. An important factor that leads to the need and creation of a new concept was that the top management at the Peab Group wanted to be more proactive in their work and role as a community builder. They wanted to be the prominent choice of contractor within the refurbishment market and the first alternative when discussing sustainable building. It was important for Peab to create a concept which not only regarded the building itself as a physical object but also incorporate factors of improving quality of life for the residents. In order to do so it becomes essential to look at ways and measures to improve the design of the surrounding areas, with regard to recreation activities and safety of residents (Ullstad et al., 2013). As a product Bolyftet should according to the interviewed employees be introduced to possible clients before the need for such action could be realized. The concept as a whole should be viewed as a complete product optimizing property management and offering solution and action to all considered areas. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 27 4.1.1 Ambiguity During the interviews it gradually became clear that it proved hard for the concept to fully consider all of the factors in each of the five chains of the Bolyftet model. This flexibility, or lack of clarity, of the concept also created rifts, or differences, between what the purpose of the concept should have been for the different actors part of the process. The opinions of interviewees ranged from Bolyftet being a concept that was supposed to bring complete solutions to each unique problem to that it was primarily a business concept to be used within the marketing phase right from the start. A conclusion could be drawn that their existed misinterpretation on an individual level but that this must be due to the ambiguity of the concept. The majority of interviewees viewed the fact of Bolyftet being a market advantage as something that was a positive side effect and that the concept was supposed to be more concrete and have bigger ideology. The interviewees believe that the concept then suffering from a lack of such concrete material and content was what made Bolyftet appear as primarily being a business concept for marketing purposes. Manager 3 who came into contact with Bolyftet at a relatively late stage when the design of the concept had already been finalized felt that the project lacked concrete material and methods for possible ways of implementation. Manager 1 informed that during conversations between the interviewee and members of managerial position with regard to Bolyftet it would seem that Bolyftet proved to be much valuable to Peab in the sense that it attracted customers and partners to the company but that when attempts were made at moving further in the process of project realization that problems started occurring. The interviewee believes that Bolyftet could have benefited from having work done towards implementation of set standardized technical solutions to reoccurring problems, something that would not only make the work more tangible but also decrease costs for already financially vulnerable residents. The conducted interviews attest to circumstances where the concept framework and routines has ended up ambiguous for the utilizing party. 4.1.2 Measurability and sustainability The scope and range of Bolyftet are traced back to the creation of the concept where Team leader 1 was part of the creation team explains that the environmental aspects, especially the ones of social origin, were born out of pure discussion between actors interested in the potential of such endeavours outside the confines of the arranged meetings. Manger 2 confirms that during the concept creation there were no directives towards considering sustainability aspects but that it was added later in the process. According to Manager 4 what is absolutely needed to make a concept such as Bolyftet allowed to work is that a way must be established to successfully measure the effects of the endevours that Bolyftet brings to the company, there must be a way to calculate the costs so that sufficient estimates can be given and clients as well as contractors can recoup project costs. The issue with lack of measurable indicators was something that Manager 4 expressed vividly and repeatedly during the conducted interviews. Manager 4 continues with recounting that the future plans and purpose of Bolyftet must be dictated after which the projects within it must strive to achieve stipulated goals. According to the interviewee this would require a breakdown of the concept and division of its responsibilities to different actors within a project. Team Leader 1 mentions that goals within Bolyftet were not clear enough which made the concept susceptible for wrongful interpretations and hindered continuous progress in projects. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 28 The interviewee puts a lot of effort on stressing how important it will be for the concept to be implemented that the different tasks within Bolyftet must become measurable, something that is not easily accomplished according to Manager 1 and 2 due to the incorporated aspect of social sustainability. Manager 4 believes that the endeavors that Peab takes on with regard to Bolyftet must not be financially driven in the way that it generates a direct income, but it must not be allowed to be driven with a loss either. Other Managers additionally claim that Bolyftet must contain a full range of measures and act as a framework on how to conduct and complete projects. Manager 2 believes that the current outlines of the concept lacks concrete content for on-site personnel to use and thinks that the concept in the form of a business model becomes hard and intangible to use in the hands of employees involved in production. As mentioned earlier this is something that Manager 1 strongly agrees with, expressing concerns with regard to this area throughout the interview. Moreover interviews attest to that specific gains are not well described in terms of financial long term goals causing inefficiency within the organization. Manager 4 states that there often exists a lack of commitment and dedication at projects due to the fact that Bolyftet does not generate any direct financial income. This is not to say that it does not contribute to the company's benefit, the interviewee believes that it helps strengthen Peab as a brand and raises its competitiveness which is deemed as a long term profit factor. Manager 1 tells that Bolyftet depictured Peab on the forefront of sustainability work amongst contractors due to the fact that it implemented a way to include social aspects, something that had traditionally been overlooked in the sector. Since Bolyftet was mainly created for refurbishment projects the focus has been put on the needs and wishes of the direct stakeholders such as residents in the close area. Open dialogues, surveys and interviews before, during and after the refurbishment process make sure that the goals are changing with the demands of the residents. Manager 4 offered example of projects where the need for refurbishment and action has been required and how Peab as a contractor has been brought into the project group to commit to a dialogue in terms of reasoning behind what should be done with the concerned areas and why. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 29 4.2 Organizational structure All interviewees within managerial positions, as well as various employees at Peab, expressed their concerns regarding that the concept seemingly lacked ownership and home within the organization. According to all of the Managers Peab recently underwent reorganization, increasing its efficiency, during the year of 2013. A reorganizations which Manager 1 found positive as it has resulted in an increased opportunity for collaboration and coordination between departments within the company, not the least aiding efforts of standardization and sustainability. Manager 4 mentions this reorganization as a major reason as to why Bolyftet is currently without a residence within the organization. This is highlighted by Manager 1 that states the inactivity that seems to surround the Bolyftet concept is traceable throughout the Peab organization and could as such not be regarded as unique to the specific case assessed in this report. Furthermore acknowledging that there are issues with competence development and with the transfer of knowledge within the company. One unnecessary barrier for knowledge transfer was highlighted by several of the employees regarding the use of the internal databases. Team Leader 1, Manager 1 and Manager 3 believe that the databases that currently exist within the company to communicate solutions and ideas lack regular updates and are often found containing outdated information. Team Leader 1 and Manager 1 feel that there are not enough efforts made towards the development of new better systems to convey knowledge and information. By organizing continuous updates and offering improved navigation at internal databases the benefits of such internal network could be utilized which would help the company in implementing standardized solutions to reoccurring problems. Manager 1 and 2 believe that the characteristics of the project based organization, with views that each project is unique and requires its own separate solutions, prevails to such a degree that it becomes harmful to the company. The two interviewees further explain that common practice of today is that the prospects of projects being successful are decided by the competence and knowledge of the staffing assigned to the individual project. Manager 1 asserts that the view that each project is unique is dated and inaccurate and believes that a solution would be to implement solutions for reoccurring problems which would simplify the building process of each project. A view that is shared by Team Leader 1 that also points out the stressful environment at the construction site saying that there is no room for knowledge transfer or knowledge development as a team leader as the role comprises tasks that follow a strained time schedule allowing no room for deviations and when a project is completed there is always a new task at hand. Team Leader 1 believes that there is a need to change in the way the company handles knowledge data and stresses that initiative must be taken towards transferring knowledge between projects. It was explained by Manager 1 that the lack of communication within the company leads to that mistakes are repeatedly made at different projects conducted today. Manager 1 believes that Peab must dismantle their current views on project individuality and take measures with regard to communication of problems, solutions and the transfer of knowledge. Not enough resources and focus are spent on innovation within the company and the interviewee voices concern that this could in the future prove problematic as it will only become increasingly hard to keep up with the development. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 30 The current existence of shared directive or data on internal sources are not regarded or viewed by workers as there is a lack of incentive for workers to do anything other than what is absolutely necessary and expected of them, says Team Leader 1. The same lack of incentives can be seen, according to Team Leader 1, for the subcontractors on the work site. Team Leader 1 state that the difficulties that come with having an external workforce and attempting to implement any kind of change or improvement of already stipulated goals. This is also confirmed by Manager 2 that relates that the subcontractors that are hired during projects are hard to affect since their commitment and initiative can vary to a great degree and due to the lack of clear incentives for them to follow through with sustainable policies and concepts it is hard to enforce any kind of clear collaboration. The competition driven situation also limits sustainability efforts as companies become less willing to share and are also forced to focus harder on client needs, which in the vast majority of cases comes down to the price. According to Team Leader 1 there is a lack of regard for environmental aspects on work sites amongst workers and team leaders. The interviewee believes that there exists an overall lack of commitment and incentive that would enable such regard and the interviewee sees limited alternatives towards the progression of a project than to follow through with the best financial solutions and that financially beneficial directives should be allowed to steer operations. However, the interviewee can see an advantage in following through with the measurable and clear environmental goals and policies that exist as this would benefit the company profiling. The goals and premises under which the subcontractors have been hired hamper any attempts at evolving a project after its initiation as the work force are trained experts within their respective field and lack the will, incentive and knowledge to commit to any sustainability efforts that are not included in the tender. Due to this the interviewee stresses the need for an earlier implementation of environmental policies and believes that a concept such as Bolyftet would need to be consolidated within every project and within every tender. Manager 4 says it is important to allocate and acquire local knowledge and competence of the regional areas where projects are based. Implementation would require that actors on each individual level take initiative and effort towards driving the concept to reality. Bolyftet needs to be connected to project development within Peab in order to benefit from their competence, primarily their competence within residential development. In order to connect it would require coordination and collaboration between the different businesses areas within Bolyftet, such collaboration would include that project development develops a computation of estimates on data provided by the business area of construction. Commitment and dedication can be found amongst some workers but the interviewee deems it impossible to educate such personal to a degree where outside competence is not needed anymore. The interviewee feels that Peab as a company should focus not on having in house competences but rather to establish tools and plans for coordination and collaboration with external competences. Peab should focus on being the best builder. During the interview Team Leader 1 expressed that even though environmental factors should be considered, it is understandable that such factors can only be considered after the efficiency and finance of the project has been assured. The CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 31 interviewee felt strongly that the current policies and decision making at Peab was done accordingly in order for the company to assert their competitive capability on the market. The interviewee additionally felt that the contemporary construction sector lack financial manoeuvrability of adhering to social sustainability policies and that Peab are required to ensure profitable economy of each individual project in order to maintain their market competitiveness. The interviewee stresses that Peab should work to contribute to aspects of social sustainability within areas which they are already familiarized with, like resident participation and involvement. CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 32 4.3 Concept and goals During interviews it was pointed out that reaching financial goals within projects and committing to conducting socially sustainable work efforts are often found conflicting one another. Manager 1 believes that the renovation work that would be conducted within Bolyftet could increase the cost of living as well as maintenance of properties, and that this would in many cases directly affect residents in the area. Manager 1 expresses concern that this could prove harmful to current residents, potentially forcing them to consider relocation or downgrading due to heightened costs. Manager 4 relates that it is difficult to conduct refurbishment on locations which often have a very low rental fee, a rental fee that cannot be allowed to go up due to the financial situation of many of the residents and at the same time a project cannot go forward without a sufficient level of yields from the property owners. If financial spreadsheets are not able to allow room for further efforts then they must be declined. Team Leader 1 further describes that Peab answers to fulfil the requirements that are set upon them at the time of employment by the client and that deviations and changes of original plans often generate additional costs, such costs are then directed to the client. Team Leader 1 feels that the question of keeping the original budgeted project costs lead to that initiative to conduct improvements and changes are often disregarded or declined by the client. The interviewee believes that the client must set higher standards and further detailed plans, with social aspects already considered as a strict policy to follow from the start of a project. Without higher requirements on the company from clients Team Leader 1 believes that there is little that the company can do as financial incentives must rule. The projects which have a high level of commitment towards social and environmental efforts are often predesigned as such in partnering projects between client and contractor were such projects often receive a higher profile and marketing to the public than what is standard. Manager 1 believes that there are current projects which would benefit from Bolyftet but that further decisions must be made at a state political level as to set higher demands and that more room must be granted within the company to allow for more innovative solutions. Contractors such as Peab must also make demands on the clients, currently there is work done against corruption in the sector and also a commitment to only work with companies that have sufficient policies and goals with regard to sustainability. Team Leader 1 feels that there is room for improvement within the organization and the sector as a whole, not least with regard to environmental efforts, but the interviewee fails to see how it currently could be changed due to the conservative character of the construction sector. The interviewee feels that it is important to look at making contributions and efforts suitable to the scope of each project instead of attempting, and failing, at making large organizational-wide change. In their current contact with clients Peab set no demands on their part but advocate that the two parties together through discussions bring positive solutions to the project. With partnering project this becomes much easier and as such partnering projects are more likely to succeed. Manager 3 feels that the environment of the construction business contains and requires a lot of collaboration between involved actors within every project and there must be a focus on avoiding mistakes and mishaps between actors and their respective work. Manager 3 mentions that there exists a clear advantage to projects where a lot of discussions can be held with clients during early project stages and the interviewee advocates for increased communication work with clients as well as other actors. In CHALMERS, Civil and Environmental Engineering, Master‟s Thesis 2015:9 33 the interviewees opinion, the sector as a whole has a lot of work to do in order to achieve a sustainable way of construction but in order to fully commit to such efforts it is important that actors are ready to release information behind solutions and mechanisms to each other and also that everyone works together and regard everybody‟s work, not just look to home ground. The interviewee believes that partnering is the best way to conduct business and currently the only way to ensure that discussions would be held in a sufficient range and extent. During the interview it became clear that according to the interviewee it is the client that has to drive a project forward with increased commitment and control, via policies and goals. Collaboration with all the different actors presupposes that every individual actor pulls in the same direction and contributes to not only their part of the work effort but also attempts to aid the project as a whole. Manager 4 states that there is a need for synergy between the actors but the process of establishing trust and collaborations is hampered by the presence of the public procurement act. The interviewee believes in full that an act such as the public procurement must exist in order to ensure full and total transparency of negotiations but that it does put higher requirements on the predesigned contracts. The interviewee thinks that it is unfortunate that many companies would hind behind the act and chose to see it as a stop block that one is unable to traverse and work with. It is common that many property owners dare not enter early forms of discussion due to fear of doing anything illegitimate. According to the interviews with Manager 4 Peab in their current contact with clients set no demands on their part but advocate that the two parties together through discussions bring positive solutions to the project. With partnering project this becomes much easier and as such partnering projects are more likely to succeed. It is the general opinion and belief amongst the interviewees that it is harder to lead sustainable reform when the Public Procurement Act has to be taken into account. The interviewee believes that there is a lot that be made at making public procurement more accessible and prone to sustainability efforts and solutions but that actors often hide behind the act to permit inaction. In one attempt at including Bolyftet the interviewee mentioned that the project suffered from, and ultimately failed due to, unrealistic demands and pressure regarding the price being too high. This is according to the interviewee typical to the construction business and to the municipalities, there seems to be a difficulty with addressing the transparency of the business and the computations between actors. When determining the price of a lot that will be projected for refurbishment the interviewee noted that it is always important to thi