Developing and using carefully documented processes is essential to a well-run and thriving construction company. Nonetheless, there is still a place for making “game day” judgement calls. For example, a tight process for researching, and preparing all bids should include “go” and “no go” protocols. However, it’s the job of leadership to discern that an opportunity may be worth pursuing, even if the protocols point to no.
Strategy Vs Process
Builders need both an overall strategic direction that determines how the company competes uniquely and best, and detailed, repeatable processes that keep operations humming. The trick is not allowing overly rigid processes to choke the strategy. At the same time, the chase after strategic vision cannot cause operations to run amok. In other words, as Chad Prinkey of Well-Built Construction Consulting wisely sums up: “It’s a leader’s job to walk the line between strategy and process, between rigidity and being opportunistic.” Key to walking this fine line, according to Prinkey, is “knowingly” deciding how and when to deviate from process, which is different than randomly chasing after gut instincts. Perhaps nowhere is the dynamic push and pull between strategy and process more evident in construction than in that “stop-go” moment in the run-up to a potentially exciting new project. Here’s Prinkey’s advice about how and when to exercise judgment during decision making:
We often implement a structured go/no-go criterion…with our construction clients to help decide which projects they should invest their extremely valuable and limited preconstruction resources on….The scorecard is there to help companies make decisions….It should be up to the judgment of the smart, experienced people in the business to determine whether they will pursue a given project….Deviations from your established processes have value. Whether you have strategic business reasons for a deviation, or you merely wish to experiment with another approach, there’s absolutely nothing wrong with knowingly deviating from the process…. It’s essential that leadership knows the why behind the deviation as well as acknowledgment of any risks associated with not following the standard. When deviations go well, we often make new discoveries that allow us to improve our processes. However, if a deviation produces a negative result…it can be a powerful lesson that reinforces the importance of…processes.
Good To Do: Informed Decision Making
Johnny Bradigan at Construct Connect emphasizes that many builders would do well to put more attention into assessing risks before finalizing a bid, and that means taking site visits increasingly seriously in the run up to a bid:
Every job site is unique. What you don’t know about the site can cause unexpected and costly issues when construction starts. When conducting a site visit, you should do the following:
- Take measurements.
- Inspect the topography and take some soil bore samples if that hasn’t been done.
- Look at road access and traffic to the site.
- Determine how much space there is for equipment and materials.
- Find out if environmental protection is needed during construction.
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