Page 98 - Built Expressions - Online Construction Magazine - November 2014 Issue

MASTER Stroke dpa.com good place to start is by asking a few critical questions: • Is the company’s strategy based on a true source of competitive advantage? • Is the strategy putting the company ahead of industry trends? • Are the biases of the senior leadership team hindering the strategy? • Is strategy based on facts or conventional wisdom? If the answers lead to an uncomfortable discussion about the strategy, then the executive team must consider changes that will enable the company to get in front of industry trends. Conclusion companies.com The one constant of a free market economy is that customer preferences access to resources, and employee and demand drivers will constantly change. It is important to recognize engagement. the trends that ultimately shape the Armed with this information, a market, understand the impact they company should be able to identify will have on business, and develop immediate business needs, pinpoint a proactive strategy to address the strategy themes, and determine where current market and the future. and how it will compete in the future. Construction industry frms that Once potential strategies are identifed, embrace change based on the four managers should ensure that they market trends and use them to their • Customers: Markets require more make sense. advantage will be the most successful than a cursory review of what the They can do this by looking at companies of the future. BE senior management team knows whether the company has the required about clients. Objective facts about leadership, skills, systems, structure, changes in buying behaviors that and fnancial resources to execute the relate to budgets or selection criteria, strategy. growth in current and adjacent An honest assessment should begin markets, unmet needs of target by answering the questions that follow Authors clients, and preferred positions of further : TIMOTHY R. SZNEWAJS is a contractors are critical in determining • Does the company have the right Managing Director at FMI Capital future market opportunities. leader(s) to set direction, align Advisors in Denver, CO, where he • Competitors: Learn and resources, and inspire the troops? works with construction industry frms, understand as much as possible • Are current organizational skills, focusing on mergers and acquisitions, about competitors (e.g., entry and abilities, and systems in place to ownership transfer issues, and strategy exit strategies, management changes, support the initiative? development. aggressiveness in key markets, • Is the organizational structure BRIAN A. MOORE is a Principal with primary business strategies, and conducive or will it hinder the effort? FMI in Raleigh, NC, where he focuses relationships with key customers or • Can the company support the on consulting with contractors and suppliers). fnancial investment required to construction materials producers on • Capabilities: These include all realize success? various strategic, organizational, and the internal considerations such as Periodically, senior executives operational issues. strengths and weaknesses, unique should look at the company and assess To Read more capabilities, drivers of value within how well the strategy accounts for http://www.cfma.org/content the business, ownership aspirations, changing trends in the industry. A cfm?ItemNumber=2533 PG 98 Built Expressions Vol: 3 Issue: 11 November 2014