Increased Value by Lowering Variability

A construction business is capable of providing a very high return to the owners who have their capital at risk as well as the team members that work there.

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The leadership teams of contractors must constantly assess where the business is at in the growth cycle and whether their current strategy, structure, talent and management processes are ready for the next stage of growth.  

Leadership Tools: Increase Business Value by Lowering Variability. Sustainable Growth through Balanced Execution.

As a business is growing; especially with a strong leader in place it is easy to become what we call a hollow contractor.  A hollow contractor typically has performed extremely well in some years.  

What they are typically missing is a depth of talent at all levels supported by scalable processes and training that enables sustainable growth.   

  1. Get your market strategy right ensuring consistency through various economic cycles.
  2. Set up your organizational structure to support this market strategy.  Focus on the roles and capabilities that are necessary; not the people.  
  3. Know where your talent gaps are in both bodies and capabilities.  
  4. Aggressively fill those gaps through training, recruiting and when necessary by terminating.    

Only after this foundation is well under way should you focus on the next steps.  




Time-on-Tools and Minimum Required Installation
Labor productivity IS NOT the biggest problem with project productivity. Under similar conditions the variation in how fast two crafts people actually “turn wrenches” is not that big. Focus on these three areas.
Cash Flow Tip 17 - Cascading Reporting Systems
Developing rigorous weekly Operating Rhythms in your business will help everything run smoother just like they do at the project level.
Ownership Transition Timelines
While it is possible for ownership transition timelines to be accelerated, that largely depends on the current condition of the company, including the management team and current owner.