Issue 3 of 9: Relationships

Construction Ownership Transition Issue 3 of 9: How Strong are the Post-Transition Relationships with Customers, Employees, Vendors and Subcontractors?

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Construction businesses rely heavily upon a network of interconnected relationships for their sustainable growth.  

Succession: Ownership Transition Issues - Number 3 Relationships. Construction businesses rely heavily upon a network of interconnected relationships. Book: Never Eat Alone by Keith Ferrazzi.

These relationships are built on a foundation of trust over many years.  

  • Customers who know you will get the job done and do the right thing throughout the construction process, even when things go wrong.  
  • Employees who have seen how you have weathered the ups and downs of the business, including how fairly you have treated everyone even when there was no right answer.  
  • Vendors and subcontractors that are aligned with how your team works and will help you win critical projects.  
  • Financial partners, including the bank and surety and insurance companies that have confidence in how you manage through the inevitable ups and downs of the market.

Take a critical look at your post-transition management team and rate the quality of their relationships with each of these groups and down to the specific people.

Identify the gaps and develop a plan to close them.  

Never Eat Alone.


Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Stages of Growth and Identifying Actionable Objectives
Growing contractors face an overwhelming amount of problems and opportunities as they move through the different stages of growth.
Production Tracking - Total Daily Production
Look at productivity as a daily “Jar” where your objective is to pack as much “Earned Value” into it as possible. Look at your costs in three major categories and focus on tracking what matters the most.
Succession Fact #1: Capital and Cash Flow
Succession Fact #1: No deal structure will substantially create capital or cash flow. It is only the business performance that ensures all major stakeholder groups are compensated properly for their time and capital put at risk.