6012.6 Muli Business Management Procedures

At the Project level, management may be regarded within traditional framework, namely:

PLANNING    Method, sequence, timing, costs
LEADING    Motivating, participating, communicating, selecting, developing, decision making
ORGANISING    Structure line/staff, delegating, work relationships
CONTROLLING    Standard setting, measurement, evaluation, action taking
SELF MANAGEMENT    Priorities, initiative, judgement, job knowledge

1. This basic framework has to take an increased perspective when applied to the total business operation and may be summarised into a procedure namely:

   1. Environment

   2. Where we are

   3. Where we want to go

   4. How we will get there

   5. Who is going to do it

   6. Quality. How much is it going to cost

   7. Loss Control Management

2. Environment

   No company operates in a vacuum, although many business reviews are inward looking. I believe they should commence by a detailed evaluation of the current and future factors that will affect their market segments. This takes in overseas trends, population demography, Government legislation and statutory powers, union objectives and economic indicators.

   How are your competitors going? What are the traditional industry leaders doing? What are the young energetic operators doing? What is in it for me? OPPORTUNITIES!

   In the Construction Industry today, with it slow cost of entry, the only real asset a company has is its “operators” and as those people mature, many companies mater (and fade). There is a need to keep a company alive and dynamic.

   I believe the industry will itself mature, with relatively fewer super Builders/Project Managers, all highly professional with increasing capital-integrated systems solutions, both administrative and work applicable. The subcontracting will become more professional, executing a greater proportion of the work providing a total structure from system formwork, reinforcing and concrete. This will lead to a rationalisation and an increasing prohibition for start-up contractors.

   Government in the last few years has proclaimed legislation giving far more to the workforce than any Union action could have achieved, and is becoming an increasingly dominating factor in the Construction environment.

3. Where We Are!

   1. This should initially be prepared by the responsible Manager, then reviewed and modified by Management in terms of the overall business.

      1. Profitability. ROI. Earned to date and future

      2. Liquidity Generation/usage. Current and future

      3. Risk exposure

      4. Resources utilised, Personnel, Assets

      5. Special issues

      6. Relative strengths

      7. Relative weaknesses

      8. Opposition actions

   2. Review marketing efforts by above and other projected segments

      1. Suspects

      2. Prospects

      3. Predicted conversions

      4. Actual conversions

      5. Marketing obstacles

      6. Marketing initiatives

   3. Complete Overhead check list review

   4. Overall Company position

      1. Profit & Loss

      2. Balance Sheet

      3. Cash Flow

   5. Next year Overhead Budget Review

4. Where We Want To Go

   The one, three and seven year plan

   A statement by management of the goals of the business for each of the time frames. Obviously more detail should be included in the short term goals with general statements for later periods. Many people look at turnover statements rather than net income, creation of income producing assets all of which depend on the business and personal aspirations of the owners, managers and employees.

5. How Will We Get There?

   Having highlighted the environment, current position and the objectives, we should then produce an overall strategy (including listing of major check points) for achieving the goals. This may require restructuring of the organisation investment in R&D or simply investigation of high-flying possibilities.

   This should include cost feasibility and cash flow predictions.

6. Who Is Going To Do It?

   No goal or check point should exist without an individual name on it (not a committee). That individual should be given clear definition or authority, being sufficient to achieve the goal. If you do not have an individual you will have to get one (either own staff or committed professional).

7. How Much Is It Going to Cost?

   The detailed planning, budgeting process (including cash flows) should be completed and accepted by the responsible person and submitted for approval by management prior to any major commitment being made.

8. Quality Management

   This topic is not simply a corporate conscience or “safety” or loss control, but an active channelling force. Much planning goes on looking for new avenues without sufficient regard for maximising the existing. Our most valuable asset today is our people. We will continually increase the asset support to those people, their efforts to reduce waste (theft, purloining, damaged equipment and people) business and individual and increase individual productivity. Employee morale can only be a benefit.

   I believe that a senior executive in a staff function should be given the job to develop, implement, support, report on the total aspects of quality management for the organisation and this should be the subject of reports to and support from management.

9. Conclusion

   If the above concepts are followed on the Triad cycle, then companies should rapidly respond to their environment and become leaders in their chosen field. However, the industry is competitive and the person who waits for all details to be proven before jumping, will find the well dry. A degree of analytic judgement and bravado is essential.