Living through a pandemic is not something anyone expected or prepared for, but that is exactly what we have been doing this year. Thankfully, we have not seen many significant slowdowns in the construction sector to date, but that is no cause for complacency. When unpredictability is the most predictable characteristic of recent times, it makes sense to plan for the unexpected. Now more than ever, it is time to think differently, seek out better ways to manage your business, streamline your processes and strengthen your talent resources. This is a great time to practice adaptability and to do things differently.
Change Your Thinking
The pandemic has furloughed millions of people, some permanently. For a brief time, all but “essential” workers (like those in construction) hunkered down at home. Gradually, people have started to come back out into the light, opening up their wallets as businesses have reopened their doors. Despite these beginning signs of recovery, there is no denying that the economy took a massive blow that has made many business owners hesitant to take risks. Keep in mind though that in the aftermath of the Great Recession, it was the businesses that took calculated risks that came back fastest. Noting that “Necessity is the mother of innovation,” Inc. recalled the economic downturns that drove success for Microsoft, Netflix and other Iconic Companies That Succeeded During a Recession. Whether you find an unexpected way to fulfill a need with your existing capabilities or totally pivot your business to capitalize on a new opportunity, there is no compelling proof that failure is inevitable.
Ways to Better Manage Your Business
Whether there is opportunity to take a breather or not, it makes sense to give your business the benefit of periodic evaluations that look at how you do things today vs. how you might do things better tomorrow. Standing still is never a good option. A recent article in Fast Company offers some great advice: “Asking your team to ‘reduce costs’ restricts their field of possible solutions. However, asking them to help think of ways to ‘make the company survive’ will likely inspire more innovative solutions—and demonstrable results.”
Streamline Your Processes
What holds back business growth today? What are the obstacles that slow you down? Some of the biggest culprits include:
Limited visibility and miscommunication
Reliance on manual processes
Inconsistent coding across projects and contracts
Difficulty tracking contracts and cash flow
What can you do to eliminate these obstacles? What technology options are available to you? Are you operating with jerry-rigged solutions, assuming there would be time later to find the right solution? Many software applications are designed as comprehensive packages that offer extra peripheral functions. The problem is that these costly extras, like an ill-fitting shoe, may never provide the right solution for a growing business. Look at your business today and identify those tasks that cause the most frustration because they are slow or complicated or ineffective. Then build a wish list of the functionality you would like to have.
Strengthen Your Talent Resources
One of the reasons why technology can be a source of frustration rather than solutions is that you may not have the time or the staff to investigate ideal solutions or learn all the possibilities for optimizing your operations. This is especially true for smaller firms where limited staff wear multiple hats, devoting more effort to perfecting the art of juggling responsibilities than finding more effective processes. Bringing on new employees or contractors is one solution, but not always a practical one, if the Holy Grail of recruitment is a candidate with 5 - 10 years of experience. Rather than wishing and hoping for a miracle or simply accepting disappointment, consider new approaches to talent sourcing, recruiting, training and development.
A joint study by Autodesk Foundation and Monitor Institute by Deloitte underscores this idea. It suggests that focusing on skills alone may not be enough to build tomorrow’s construction workforce, as the sector continues “to be perceived by many as low-tech, dangerous and dirty.” The research makes a strong case to move beyond traditional human capital practices. As an example, consider apprenticeships for nontraditional roles, such as tracking project data and working with technology tools. This form of on-the-job training has long been a mainstay of the building trades and might be adaptable to business operations roles. Less experienced job candidates could take on those technology tasks that frustrate more tenured staff. Moving forward, you can enhance your current processes and gain leverage from both your technology and your human capital investments. Resources such as Apprenticeship Illinois can help you get started. When you adjust your expectations, you can open up new pathways for career entry and the possibility of expanding your talent pool by considering candidates with transferable skills.
Capitalize on Change While You Can
What is the outlook for the industry? Based on a study released in early September by the Associated General Contractors of America, you have to wonder about what to expect in the future. It reported significant negative impacts from coronavirus. For example:
60% of firms had projects canceled or delayed
52% struggle to find craft workers due to COVID fears and the unemployment supplement
The good news here is that this report is based on backward-looking findings. A new analysis by Construction Dive offers findings that point to busier days ahead. This review notes that the industry has emerged from a summer of worrisome trends to see rising numbers relating to new construction starts, jobs and backlogs. If you consider the most likely scenario to be a balance of the two stories, with some combination of new opportunities and ongoing challenges, you would be well-served to remain nimble and adaptable. This will ensure you are prepared to take advantage of change rather than being disabled by it.
As you might imagine, I am especially passionate about the advantages a business can gain from project management solutions. If you are prepared to take advantage of change and explore the possibilities for your business, let’s connect.