Levels of Integration and Optimization

Contracting is a relatively low-margin, capital-intensive, high-risk and difficult-to-scale business with many seeing contractors as a commodity.

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Operational excellence must be a major component of every contractor’s strategy and baked into their daily behaviors.  

Leadership Tools: Levels of Integration and Optimization. Purchasing Example.

There are four major layers of integration and optimization.  Each are related. Each layer is critical creating the foundation for other layers.  Optimization at each layer requires different levels of thinking, different technology and a longer time span.  

  1. Task: Can be further broken down into discrete steps with every element of time and motion broken down to yield the most efficient output.  
  2. Function: Optimization is about consistent and efficient execution by everyone within a functional areas such as field, project management, purchasing, etc.
  3. Company: Most effective flow through across all functional areas of the company.  For example - the most efficient material installation is that material that never had to be ordered or installed because it was value-engineered out during the design process.  
  4. Supply Chain: Downstream integration to your suppliers and subcontractors.  Integration with other contractors on the project if applicable, upstream to your customer and efficient communication with architects and consulting engineers. 



Balancing Training and Coaching Effectively
Every contracting business is made up of many jobs that need to be done, ranging from relatively simple and short-term tasks to complex, ambiguous, and long-term objectives.
Production Tracking - Changing the Language
Your productivity will start to really improve as it becomes a culture and not just a tracking system. You will first notice this as a change in language in the field and across the whole project team.
Technology Integration - Streamlining Workflows
Construction technology can no longer be treated like a “Project” with a beginning, middle and end to the implementation. There are now hundreds of specialized technology tools that can be implemented by contractors and each add individual value.