Competency and Compensation

A large part of sustainable growth for contractors is being able to effectively leverage people with a narrower set of skills to still deliver the same level of value-add to the customer.

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This support structure is called “Enabling Bureaucracy” and is a combination of management time, control systems, QA/QC, workflows, training, etc.

Leadership Tools: Graph representing Value-Add and Compensation with Quantity of people in the workforce, ability to manage ambiguity, and skill level and execution.

As contractors grow they need to refine their organizational structures, workflows, job descriptions  and their talent processes to support this growth.

These support structures must be built over time and integrated with the contractor’s growth strategy.  Once effectively in place these support structures will produce a more scalable organization that can actually deliver the same value-add to the customer at a lower total cost providing a competitive advantage. 

These systems are slow, painful and costly to put into place.  The recruiting focus of a contractor must be in alignment with the levels of support structures they have in place.  Netflix defines this quite well in their culture slide deck and book.  

Are your support structure capabilities and recruiting in alignment?  

If not there will be excessive stress on the team combined with lower profitability.  This just means you are at one of the inflection points on the business growth cycle.




Aligning Projects and People
The business of building is largely about aligning projects and people. Contractors exist to build projects. People design and build the projects. The management team, structure, and systems bring it all together.
Lean Principle - Stop Work (Until Problems Are Corrected)
All construction projects will run into some degree of problems. It is how the project team chooses to manage these problems that ultimately determines the outcome of the project.
Leadership Combinations and States of Market Growth
There is a beautiful tension in leadership teams that is required for growth. That tension shifts with different stages of a market's growth and must be integrated with the contractor's stage of growth as a company.