Strategic planning in SME construction consultancies

 

By Peter Jubb, TC Group Construction Consultant

The construction industry’s becoming more and more fast paced and complex. There’s many challenges to meet and opportunities to be explored. Being able to look ahead and be less reactionary is the key to sustaining businesses.

Professional construction consultancy business owners and senior management teams are demonstrating a growing willingness to spend more time on business strategy.

Let’s explore some of the reasons for this.

RISING BUSINESS COSTS

Over the last few years, we’ve seen a sharp rise in the costs of running a business from increases in energy prices, PI Insurance, salary demands and recruitment fees.

The issue is project fees are not rising at the same rate, creating a situation where the focus turns to improving internal productivity, or seeking better fee-paying work in other sectors.

As many will be aware, neither are a quick fix. But nevertheless, these have moved to the top of many business agendas.

 

SUCCESSION PLANNING

Having a strong second-tier management team for business duties to be shared is key, along with creating a pathway for people to move through the ranks within the business. Businesses often lose their best people because there’s no defined roadmap to progress.

Knowing your options when it comes to succession planning shouldn’t wait until your nearly out the door…

Reviewing your options and understanding your business’s worth early on, enables owners to identify their key value-drivers in order to maximise the appeal of the business when it comes to a sale. It also provides the opportunity to lay the foundations for an in-house succession if suitable e.g. a Management Buyout or Employee Ownership Trust.

 

LEGISLATION AND OTHER SIGNIFICANT CHANGES

The Building Safety Act and New Procurement Act promised changes to the planning system and changes to building regulations to work towards net zero.

AI could also be a threat or a game-changer.

How do these affect your business and the way your provide your services?

 

BUSINESS DEVELOPMENT SKILLS

The skills to generate new work for the business often solely lies with the business owner, whilst the delivery team focus on keeping existing clients happy.

There comes a point (and in tandem with succession planning) where other members of the senior management team need to build prospect relationships and generate new work.

Unless the senior management team are coached and have the opportunity to develop this skill, the burden of new-client growth remains with the own, stalling the transition process.

 

BUSINESS IDENTITY

Many businesses are making their ‘purpose’ and ‘values’ more evident to prospective clients against the backdrop of intense competition.

Generic statements don’t cut it anymore, and owners need to think smarted on how they stratify client expectations whilst making good financial returns; a terms known s ‘balanced advocacy’.

As I work with business owners and senior management teams in professional construction consultants, these are the things they’re talking about. The difference as to whether businesses success is attained, is TAKING ACTION

For example, using a SWOT analysis to identify improvements, then devise solutions that can be implemented in order of priority. By breaking improvements down in systematic way, the ability to change things is less overpowering. What are you committed to taking action on at the moment?

With a new Labour Government in power, their manifesto contains pledges for the construction sector. These include:

  • 5 million new homes over the next parliament
  • A new industrial strategy and National Wealth Fund focused on clean energy objectives
  • Planning reforms and increasing numbers of planning officers by 300
  • Green Prosperity Plan focused on wind and solar power acceleration
  • A new publicly owned company, British Energy-delivering £8.3bn in energy initiatives

This, together with the recent Glenigan Construction Industry forecast which predicts positive growth over the next three years, means there’s never been a better time to review your business strategy, make informed choices and deploy your resources productively.

Written by Peter Jubb, TC Group Construction Consultant

Working with TC Group, Peter Jubb has over 35 years’ experience in the construction industry. Peter’s primarily focused on working with SME construction businesses bringing energy, strategy and focus to directors and partners, providing them with the confidence and solutions to drive their business forward.

If you’re looking to improve and future-proof your business development activities, find out how TC Group can support you starting with a free initial scoping call with Peter Jubb..

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