Problematisation of the shift from products to services

Over half of the top 20 UK construction companies aspire to provide services and solutions to their clients. This is a clear recognition that constructing on time, defect free and within budget is no longer a differentiator; instead competitive advantage can be gained from technical expertise, consideration of whole life costs and delivering the client's whole value proposition. The majority of literature addressing the evolution of products to service is theoretical, proposing strategic models and outlining the key characteristics of being an integrated solutions provider. In reality the transition pathway to becoming a solutions provider is difficult for organisations that have hitherto focused on product delivery. Through semi-structured interviews, observation of management meetings and project feedback, the problems encountered when trying to embed the characteristics of integrated solutions provision are examined within a leading construction firm undergoing such a transition. It reveals a disconnect in approach between head office work-winning teams and regional project delivery teams that has resulted in a lack of continuity of service at crucial pinch-points in the delivery process. A silo mentality, resulting in a lack of common understanding across the team, can be traced to an organisational path dependency that stems from historical decisions, and is therefore very difficult to overcome. The paper suggests practical mechanisms to help the business make changes to their working practices, routines and organisational structures. It is intended that these will drive the development of new capabilities allowing the organisation to break free from the paths it has become locked into to become a true solutions provider.