Let’s Talk About The Top…
Obviously, you won’t get there. This tried and true expression is a wise one for busy construction company leaders to pull out and remind themselves of occasionally. If you’ve set a strategy, it’s easy to get sidetracked from it. If you set a strategy three or more years ago, you’re likely due for a rethink, considering how much has changed. If you haven’t set a strategy at all, you’re likely drifting along, randomly winning some, and losing some, as you scatter your resources. Read on for pointers and set your strategy for greater success.
The Best Use of Scarce Resources
Google can point you to many definitions of strategy, but here’s one that might actually stick with you and make sense, courtesy of William G. Pietersen, now Professor of the Practice of Management at the Columbia Business School, and previously the successful leader of several large corporations: “Strategy is the best use of scarce resources.” In other words, you can’t do it all, so what will you steer your company to do uniquely and best? By default, what will you steer away from? Going further, Pietersen points out that by participating in a continuous cycle of strategic learning, business leaders can succeed, despite the fast pace of change:
…Successful strategy is essentially a response to …Darwinian logic… No matter what business we manage—IBM or the local pizzeria—we all have finite resources; if we squander them, we are out of the game. Thus, the main job of strategy is to make the most intelligent choices about how to use our limited resources. And as the environment becomes more discontinuous, intelligent choice-making depends increasingly on an organization’s ability to make sense of the changing landscape through learning and discovery, to translate superior insights into strategic action…and to do so continuously.
Strategy should come first, planning afterward. However, for many companies, strategy is a numbers game rather than an ideas game—a planning ritual rather than a process of discovery. Companies may have been able to get away with planning alone in the slower moving environments of yesterday. Such an approach could prove fatal today.
Given the hectic nature of running a construction business, many construction business owners fall into the trap of cramming as much into their day as possible, running from site visits to number crunching, to filling in for the project manager. Meanwhile, strategic aim is likely falling off the list, though it should be at the very top. At Construction Business Owner, Eric Zichterman, founder of Freedom Forge Coaching, reminds us that both leadership and management have roles to play in a successful enterprise, but the functions are different:
In construction, leadership isn’t about giving orders: It’s about aligning hearts and minds around a shared purpose. Strong leaders cast vision, remind teams why their work matters and model the behaviors they expect — especially when it comes to safety and quality. They empower teams to make decisions in line with company values, even when it means slowing down to do things right. Great leaders also listen, using feedback from the field to improve processes while staying true to the overall strategy.
Once your strategy is defined, management’s role is to bring it to life. Management aligns goals so crews, estimators and project managers understand how daily decisions affect the bigger picture. They build systems for estimating preconstruction planning, safety and quality control. They also establish feedback loops, job costing, production tracking and safety audits, to monitor and improve performance. Clear communication is key, translating big-picture goals into actionable weekly and daily targets.
Thinking More Strategically About Your Own Role
As you consider the strategic direction of your business, a first step likely involves a decision to be more strategic with your own time and talent. No matter what you’d like to think, your time and energy have limits: what’s the best use of your brainpower? Indeed, as business coach George Hedley puts it, growing your company quite likely means doing less, as you get more strategic about how you spend your time:
It’s important that business owners determine what their primary role should be based on what the company needs, what roles they are the best at, what they should handle, and what they want or like to do. Most construction business owners are best at developing and implementing strategy, providing leadership, reviewing estimates, winning work and developing customer relationships. But when they act as project managers, estimators or field general supervisors, they’re generally not doing what they do best.
As you organize your business around a clear strategy, keep in mind that when done well, strategy is a unifier. You shouldn’t, for example, need a separate technology or safety strategy—technology and safety are integral parts of a whole. In sum, Zichterman offers this encouragement for investing your time in a more strategic approach to your business:
In construction, “business strategy” is often reduced to discussions about margins, cash flow and scheduling. While those are critical, a true business strategy runs deeper. It shapes how a company leads its people, manages projects and plans for sustainable growth. It’s the blueprint that guides decisions, leadership practices and safety standards, turning individual actions into a unified culture….A construction company’s legacy isn’t just in the projects it completes, but in the people it develops, the families it supports and the communities it impacts. A strong strategy, reinforced by effective leadership, committed ownership, disciplined management and a deep commitment to safety, ensures your business leaves a lasting, positive mark.
Yes, No, Stop, Go?
Deciding whether or not to bid can be very stressful, especially if you have not had time to really think through your proposal. Colonial Surety Company is here to help. We make surety bonding speedier and easier, so you have more time to concentrate on strategically running your business.
As soon as you qualify for The Partnership Account® for Contractors, you’ll have:
- Written Bonding Limits: Receive your single and aggregate bonding limits in writing.
- Instant Bid Bond Issuance: Use our power of attorney to issue your own bid digital bonds within minutes.
- Real-Time Visibility: Log in to view your underwriting profile and financial scores in real time.
Just for completing our easy pre-qualification, construction company owners receive Free Business Credit Scores full of insights to leverage right away.
Not ready? We’re here to help smaller contractors too. Try our Hometown Bond Program, which offers local builders credit based underwriting bonds for up to $250k—with no financial statements required.
Surety Bond programs for construction businesses of every size are right here: Bonding Programs at Colonial Surety Company
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety Company.
