Turning Cost Engineering SME Know-How into Organizational Strength
Cost engineering organizations are often only as strong as the availability of their Subject Matter Experts (SMEs). These SMEs hold specialized knowledge vital for accurate estimates, proposal development, and supplier negotiations. However, what happens when a SME leaves the organization? The loss can be substantial, impacting financial risk management and productivity. This story unfolds in the halls of government agencies and companies worldwide, where the departure of a critical expert leaves a gap that is hard to fill.
The Silent Crisis of Knowledge Loss
Imagine Sarah, a seasoned cost engineer who has been with her company for over two decades. Her expertise in her organization’s technology, capabilities, and practices has become indispensable. She’s the go-to person for complex projects; her insights have saved the company millions. But one day, Sarah decides to retire. Suddenly, the organization finds itself in a precarious situation. The nuanced understanding Sarah brought to her role doesn’t reside in manuals or databases; it exists in her mind.
The loss of Sarah isn’t just a personnel issue—it’s a financial one. Without her, the company faces increased financial risk and decreased productivity, especially during crucial proposal development and supplier negotiations. This scenario is all too common among cost engineering teams in many organizations today.
The Current State: Reliance on Human Expertise
Currently, many organizations depend heavily on the direct involvement of SMEs in the cost estimating process. This reliance presents several challenges. For SMEs, contributing to cost estimates is additional work that takes them away from other critical tasks. Their involvement, while invaluable, is not a sustainable solution. Moreover, this process does not capture their knowledge in a way that benefits the organization either in the short-term or long-term.
The Solution: Transforming SME Knowledge into Strategic Assets
What if there was a way to capture Sarah’s expertise and turn it into a strategic asset for the organization? This is where data collection comes into play. By systematically gathering data during the estimating process with cost engineering software, organizations can reduce their dependence on individual SMEs and preserve critical knowledge.
Implementing robust data collection methods can solve several problems:
- Reduced Costs: Automating data collection reduces the costs associated with manually gathering and analyzing expert input.
- Efficiency: It simplifies the role of SMEs in the estimating process, freeing up their time for other essential tasks.
- Intellectual Property: By capturing the insights of SMEs, organizations can turn this knowledge into an intellectual property that benefits the entire company and is available on demand rather than only during real-time interactions.
- Training and Development: Collected data can assist less experienced estimators in producing data-driven, defendable estimates more quickly.
Consider a scenario where Sarah’s insights have been systematically collected over the years. When she retires, her knowledge doesn’t leave with her. Instead, it’s embedded within the organization’s data systems and accessible to all. This data helps new estimators carry the torch without relying on Sarah’s direct input.
Moving Forward: Building a Knowledge-Rich Environment
The transition from relying solely on human expertise to embracing data collection involves recognizing the value of turning individual knowledge into a collective asset. Organizations must invest in the right tools and processes to effectively capture and utilize this data.
While SMEs like Sarah will always be crucial to cost engineering, their knowledge shouldn’t be ephemeral. By focusing on data collection, organizations can ensure that this expertise is preserved, reducing financial risks and enhancing productivity. This approach doesn’t just mitigate the loss of a single expert; it transforms the organization into a knowledge-rich environment poised for sustained success.
So, the next time you think about the invaluable role of your SMEs, consider how you can capture their insights and turn them into enduring assets. It’s a story of preservation, efficiency, and strategic growth—one that every organization should aim to tell.
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