1.0 Introduction

2.0 Background

Technological advancements have profoundly influenced and reshaped industries, businesses, and everyday lives. The construction industry has followed suit with implementation and adoption of digitization and innovative solutions. Being traditionally reputed as a slow adopter of technology, the construction industry has long suffered from a consistently declining productivity index that necessitated a strategic transformation of the modus operandi. ^[1]

Central to the propagation and realization of these innovations is a transformative vision. It is leadership that catalyzes and steers the course of innovation, shaping the trajectory of technological integration for the achievement of improved productivity, collaboration, and safety.

The fusion of strategizing innovation in the construction industry and an entrepreneurial spirit brings a new perspective in driving efficiency, innovation, and digital transformation. At the forefront of these transformative efforts is Salla Eckhardt, whose career encapsulates the essence of pioneering change within the Architecture, Engineering, Construction, and Operations (AECO) sector.

2.1 Motivation, Focus & Purpose of the Research

This case study is an exploration of Eckhardt’s impactful journey as an industry expert, an innovation catalyst, and a visionary entrepreneur, passionate for inspiring and empowering the industry’s innovative journey. The motivation for conducting this case study is to build on existing research as case studies that test the theory of effective leadership and vision as drivers of adopting innovations in the construction industry. Eckhardt’s story serves as an exemplar of how visionary leadership enables strategic implementation of technology to drive organizational change and foster sustainable growth. This case study also aims to be a source of inspiration for those seeking to effect positive change in traditional sectors through entrepreneurial endeavors and technological innovation.

Salla Eckhardt’s story begins with her early passion in technology growing up in Finland and pursuing education in architecture. Since 2010, Salla had been working on research and development on implementation of digital twin technology, virtual design and construction (VDC) practices and extended reality (XR) technology and processes. She has also worked as a Smart City program manager for planning and directing a multimillion-dollar innovation program prior to her move to Seattle. Eckhardt has a track record in innovation implementation and successful digital transformation efforts at technology leaders and major construction firms, Microsoft, Sellen, Hoffman and OAC. Central to her expertise are Building Information Modeling (BIM), extended VDC reality (XR) program, developed augmented reality (AR), mixed reality (MR), and virtual reality (VR) solutions, digital twins, and metaverse strategies.

Her strategic roles at leading firms coupled with her robust background in digital construction solutions provided her with a deep insight into the challenges and opportunities inherent in the construction industry. Recognizing the critical need for innovation in a sector often characterized by its hesitance to embrace new technologies, Eckhardt founded SEE Bright LLC. This venture was not just a business but a mission to catalyze the adoption of digital technologies across the AECO industry.

SEE Bright LLC stands as a testament to Eckhardt’s commitment to driving change. The company specializes in tailoring consulting services that enable organizations to navigate the complexities of digital transformation. From digitization to full digitalization, Eckhardt’s leadership ensures that SEE Bright LLC offers more than just solutions—it inspires a digital revolution, redefining what is possible in construction processes and operational management.

3.0 Research Methodology

A qualitative Case Study methodology was followed to gain empirical understanding of the influence of leadership in the context of implementation of innovative solutions in the AECO industry. Literature review on existing literary works that support the theory of transformative leadership driving organizational change in technology adoption in the construction industry has been conducted to build onto existing research. The core focus of this case study will feature Salla Eckhardt’s experience as a technology and innovation catalyst. An Interview was conducted with Salla to discuss her journey and important milestones that shaped her expertise in strategies in digital construction solutions and their impact on people, business, and technology. Additional topics covered in the discussion included: reasoning of the purpose of innovating in the industry, the range of emerging technologies she has engaged with in the various projects she contributed to, and the core philosophies and values that have guided her success across various roles.

In addition to the interview, insights were gathered from various technology podcasts where Eckhardt is an active participant advocating for and sharing her journey in digital transformation in the AECO industry. The following podcasts provided valuable information relevant to the purpose of this case study:

• Salla Eckhardt: Digital Twins and the Future of Digital Tech in Construction at Microsoft – Future Construct ^[2]
• Digital Transformation in the Built Environment with Salla Eckhardt – Engineer Innovation Podcast ^[3]

4.0 Literature Review

4.1 Inspiring Innovative Behaviors:

Transformational leaders create environments that foster innovative behaviors in teams. Research conducted on a number of construction teams in China investigates the impact of transformational leadership on fostering innovative behavior within the construction industry, particularly through the mediation of innovation climate and the moderating effect of project-specific innovational requirements. This study uses a questionnaire survey involving 251 construction industry professionals and employs hierarchical linear modeling for data analysis. ^[4]

Key findings from the study indicate that transformational leaders create an environment conducive to innovation by shaping a supportive innovation climate. This climate subsequently motivates employees to engage in innovative behaviors. The study also reveals that the requirement for innovativeness in a project strengthens the influence of transformational leadership on innovation via the innovation climate. This suggests that when projects explicitly demand innovation, the effect of transformational leadership on fostering an innovation climate and promoting innovative behavior is more pronounced. Emphasis is made on the importance of leadership styles that not only encourage innovation directly but also cultivate an environment that supports it. This approach is particularly effective when aligned with clear project requirements that emphasize innovation, thereby enhancing the adaptability and success of construction projects in response to changing industry demands and challenges.^[5]

4.2 Enhancing Implementation Outcomes:

Transformational leaders create environments that enable optimal results and enhanced outcomes. A study explores the crucial role of integration and leadership in facilitating innovation within the construction industry, particularly focusing on a case study of an urban regeneration project in England, which utilized modern methods of construction (MMCs) and lean production techniques. The successful implementation of these innovations was largely due to the strong leadership exhibited by the project’s stakeholders, including the client and the contractor, as well as their ability to effectively integrate and coordinate their efforts throughout the project. The paper argues that leadership, particularly transformational leadership, plays a pivotal role by fostering an innovation-friendly climate that encourages knowledge sharing and collaborative problem-solving among the project team. ^[6]

This case study contributes to the broader discussion on innovation in construction by demonstrating that leadership and integration are not just supportive, but essential components of successful innovation implementation. The findings suggest that construction projects can benefit from fostering strong leadership and integrating all stakeholders from the early stages of a project to enhance the adoption and success of innovative practices.^[7]

4.3 Enabling Innovation:

A main component of enabling innovation is leadership. In this study, authors Ozorhon et al. propose a comprehensive framework for analyzing innovation in the construction sector. The study identifies and examines six components of innovation: drivers, barriers, enablers, inputs, project-level benefits, and firm-level benefits, using structural equation modeling on data collected from 110 projects. The framework highlights how innovation is driven by factors like client requirements, technological developments, and the need for competitive advantage, while also facing barriers such as financial constraints and unsupportive organizational cultures. ^[8] 

The findings suggest that the enablers of innovation in the study include leadership, knowledge management, and early contractor involvement, which facilitate overcoming the barriers and utilizing inputs like capital, technology, and human resources effectively. The research demonstrates that inputs lead to significant project-level outcomes, such as increased productivity and client satisfaction, which in turn contribute to firm-level benefits, including improved company image and technical capability. ^[9]

4.4 Leading with a Transformational Mindset:

Leadership styles matter, for driving change and innovation transformational leaders are the most impactful. A research study conducted in Hong Kong examines how various leadership styles influence the innovation climate within construction firms. The study utilized a survey distributed among 300 construction professionals from major contractor firms, achieving a 37.7% response rate. The data were analyzed using confirmatory factor analysis and structural equation modeling to determine the impact of three identified leadership styles: transformational, development exchange, and corrective avoidant leadership. The findings indicate that transformational leadership positively predicts an innovative climate by encouraging creativity and flexibility, fostering an environment where innovative behaviors are nurtured. Conversely, development exchange leadership, which focuses on reward-based exchanges, negatively impacts the innovation climate, potentially because it emphasizes extrinsic motivation over intrinsic creative drives. The study highlights the significant role leadership plays in either fostering or hindering an innovative climate within the construction industry. This research emphasizes the need for leadership that not only manages but also inspires, as the kind of leadership implemented can directly influence the innovative output and overall success of construction projects.^[10]

5.0 Case Study

A series of questions during the interview with Salla Eckhardt unraveled the transformational thinking and mindset she follows at every level of her career. Eckhardt had started her career in her home country, Finland, working with novel technologies at that time – she had experience working with clients in Asia and the European Union (EU) on testing technologies and developing strategies for smart buildings and carbon-free smart cities, this experience ignited her belief in the importance of utilizing technology and BIM for the improvement of energy efficiency of legacy buildings and technologies.

Eckhardt’s move to the United States imposed a multitude of opportunities while being a challenge as she embarked on the journey of a total reset of her career, as she would put it. Without the social and professional capital that she had already established early in her career, Eckhardt was determined to pave the way once again to contribute with her capabilities and unique experiences to the AECO industry. Throughout her roles at construction firms, she assessed digital maturity of the companies, striving to influence and inspire change to bridge the gap between owners, contractors and designers using technology. As the Director of Emerging technology and innovation at Sellen Construction, Eckhardt was enabled to drive change by introducing emerging BIM based XR technologies leveraging the connections and network she had to test prototypes. Since they were still in early stages of the prototype, Eckhardt was immersed in enabling success by developing appropriate software to run these technologies that served the field operators and on-site construction teams. Her aim was to develop solutions for different audiences with different types of decision-making. Eckhardt realized that the prototype itself may be convincing enough and useful, as she witnessed a drastic change in the level of understanding between different teams onsite with the use of the VR and AR sets to view BIM models, and how the trade professionals would realize issues and clashes within seconds, however, when it came to selling these ideas to the “budget owners” in the firm, Eckhardt often had to study the financial requirements alongside the social impact of these technologies.

Leading the efforts at Sellen spiked interest of Microsoft for their newly established center of innovation for their internal real estate and security organization, where she started working on sustainability and accessibility related innovations. She then transitions to working on innovating the digital lifecycle of buildings, creating strategies for the digital threads within the real estate organizations, pulling in the fragmented data that enable accurate and reliable decision making on the data. The digital building lifecycle was essential to answer the question “What’s the ROI?” when faced with the real estate owners and budget owners.

Her latest experience as a Vice president at OAC, a provider of innovative building and process solutions to public and private real estate owners, provided her exposure to multitudes of real estate owners providing assessments of digital maturity and enabling and inspiring the digital transformation.

Despite being led by her passion to innovate, Eckhardt believes that the best way to predict the future is to create it. Her profound expertise, transformative leadership and entrepreneurial and innovative spirit led her to establish SEE Bright, L.L.C, founded to empower those who seek to elevate & innovate.

Eckhardt emphasized that enabling innovation requires organizational change management affecting the business model and the status quo. Owners who realize the effectiveness of implementing digital transformation, starting with a foundation of reliable data that is simplified and accurate, can achieve better productivity and business outcomes.

Eckhardt acknowledges that even with the 5th industrial revolution guiding technological advances rapidly, digital transformation comes with organizational challenges. Her corporate roles in leading change did not necessarily dictate the successful implementation, rather a combination of highlighting the impact and benefits, leading the change and having a genuine interest in cultural and organizational transformation through investing in innovative solutions. Eckhardt also believes that an essential factor of success in the transformation journey is leadership buy-in.

6.0 Discussion

In synthesizing the insights from Salla Eckhardt’s impactful leadership within the construction industry, it becomes evident that transformational leadership is not just beneficial but essential for driving innovation in traditionally conservative sectors. Eckhardt’s journey, characterized by pioneering digital transformation strategies and an entrepreneurial spirit, exemplifies how transformational leadership can profoundly influence industry standards, technological adoption, and strategic growth.

Transformational leaders like Eckhardt excel in envisioning and implementing innovative technologies, which is vital in industries that are historically slow to adopt new practices. Her leadership in integrating digital twins, extended reality (XR) technologies, and Building Information Modeling (BIM) across various construction projects underlines the core characteristics of transformational leadership: inspirational motivation, intellectual stimulation, and idealized influence. These leaders do not merely manage or direct; they inspire and empower their teams to envision and achieve beyond the conventional boundaries.

Eckhardt’s establishment of SEE Bright LLC further encapsulates the transformative impact of her leadership. By fostering a culture that values and integrates digital solutions, she not only enhances productivity and safety but also sets a benchmark for innovation within the construction sector. This approach aligns closely with transformational leadership theories that emphasize the importance of creating a supportive environment that encourages innovation and collaborative problem-solving.

Moreover, Eckhardt’s role in bridging the gap between technological potential and practical implementation reflects another critical aspect of transformational leadership: individualized consideration. By tailoring solutions to meet the unique challenges and opportunities within the construction industry, she demonstrates a deep understanding of and commitment to her team’s and clients’ needs. This personalized approach ensures that technological advancements are not just adopted but are also effectively integrated into everyday practices, enhancing both operational efficiency and strategic development.

The broader implications of transformational leadership in the construction industry, as highlighted through Eckhardt’s case study, suggest that such leadership styles significantly enhance the ability to adapt to and incorporate technological changes. This is especially pertinent in a sector where the pace of technological change is accelerating and the demand for sustainable, efficient, and cost-effective construction solutions is intensifying.

7.0 Conclusion

The case study of Salla Eckhardt not only illustrates the profound impact of transformational leadership on innovation in construction but also serves as a beacon for future leaders in the industry. It emphasizes the necessity for leaders who are not just administrators but visionaries capable of steering their organizations towards unprecedented growth through innovation. Transformational leaders are the catalysts who reimagine what is possible, driving the industry forward through a blend of technological prowess and strategic foresight. As the construction industry continues to evolve, the influence of such leadership will undoubtedly become even more significant, shaping the future of construction in an increasingly digital world.