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.

D. Brown Management Profile Picture
D. Brown Management
March 5, 2018 2 minute read
Share

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.  

Retirement Onboarding - Transferring Your Knowledge to the Team
Knowledge transfer is hard. How do you effectively take the knowledge that one individual has accumulated over a lifetime with a company and transfer that knowledge to the next person in line?
Related Article
Setting Standards and the Feedback Loop
Set the standard. Train to the standard. Certify to the standard. Plan the work to the standard. Execute to the plan and the standard. Check against the standard. Make prioritized improvements to the standard, training, planning, and execution.
Related Article
Contractor Exit Strategy 6 of 6: Sale to Employees (ESOP)
Contractor Exit Strategy 6 of 6: An ESOP (Employee Stock Ownership Plan) is a qualified defined contribution employee benefit plan designed primarily to invest in the company’s stock.
Related Article