Competitive Advantage

A contractor’s market strategy is the most highly leveraged decision leadership can make.

D. Brown Management Profile Picture
Share
Quote: If you don't have a competitive advantage, don't compete. Jack Welch Retired Chairman and CEO of GE.

Getting this right then executing effectively can easily have a 2X+ positive impact on earnings over the next 5.

  • Identifying market(s) and customers that will be growing over the next 10+ years.  
  • Developing operational capabilities and capacity that adds maximum value to these customers while being difficult, time consuming or costly for competitors to copy.  
  • Building advanced preconstruction services integrated with aggressive business development to identify projects and customers well before anyone else even has a chance.
  • Where possible including operations and maintenance services to the project after the construction phase including special projects and service work. 

General Electric consists of many individual business units each with P&L responsibilities and expected to work together.  Many contractors are structured in a similar way. 

Their management training program teaches people how to run businesses - how to compete.  

“If you don't have a competitive advantage, don't compete.”

Jack Welch; Retired Chairman and CEO of General Electric

What is your competitive advantage today?  

What will your competitive advantage be tomorrow? 

What are you doing to hold onto your current advantage and prepare for tomorrow?




Incentive Compensation for Contractors - Audience Question: Higher Base Compensation?
There is absolutely no perfect ratio between base vs. incentive compensation. Here are the variables and some rules of thumb.
Theory of Constraints (ToC) Basic Overview
You will never have enough resources to make every possible improvement to your company. The most important leadership question: If every other area of the operation remained the same, what is the one area where change could have the greatest impact?
Growth and Opportunity
Contractors that are growing profitably, have great reputations with their customers, and have a good culture are able to attract and retain the best talent even with the talent shortages the construction industry will face in the next 10+ years.