A lot has been written about the construction industry’s digital transformation and the promise for technology adoption to drive productivity and bring a new level of efficiency to projects. However, companies can’t ignore the opportunity that exists for organizational transformation to also propel construction businesses forward.
Although a great deal of discussion centers on technology enabling transformation, the reality is that construction has lagged behind other industries in technology adoption in large part because it is more people-intensive. To remain competitive and engage in long-term transformation and growth, today’s construction leaders need to focus on labor productivity, improving site coordination, reducing errors and lowering costs by identifying the project management processes that prevent them from meeting project cost and time objectives.
Organizational Transformation Triggers
Many events can trigger an operational transformation: a change to the competitive landscape, business expansion or contraction, economic conditions and benchmarks are all common signals for change. Usually, when a case is made for organizational transformation, it is to ensure the long-term survival of the business. In most cases, there are clear indicators, or a series of negative circumstances, that illuminate the need for a transformation. These indicators don’t happen suddenly and are often the result of a succession of missed opportunities. However, triggers for transformations are often passed by and not given a second thought. There are many reasons for this, including:
- Focusing so much on the day-to-day operations that you miss the big picture;
- Taking too much comfort in benchmarks instead of being challenged by them;
- Getting comfortable with the status quo (e.g.: We’ve always done it that way, so why rock the boat?); and
- Letting past transformational failures prevent the company from trying again.
If business leaders don’t think they’ve missed a transformational trigger in the past, can they think of initiatives or actions that their organization has overlooked or continues to postpone? They may be surprised by what comes up when they stop and think about it.
Moving Beyond Triggers to Action
Too many transformational initiatives are designed to seek instant gratification. Transformation is hard, but with the right mindset and approach, the rewards can easily outweigh the difficulty. The kind of transformational change that delivers sustained, superior results requires a hefty investment of resources, time and—most importantly—leadership. It’s a leader’s job to move the process and people forward to accomplish the transformation. In “6,000 Dreams: The Leader’s Guide to a Successful Business Transformation Journey,” three critical steps for building momentum and getting a transformation off the ground are outlined.
- Look to the future. Transformation is often met with resistance. We’ve seen this in the construction industry which, until recent years, was slow to adopt technology. The first step in overcoming the difficulty of initiating a transformation is to establish a clear understanding of the case for change. Think about what the future state of the business will look like with the planned changes. If leadership can visualize and articulate to others how the future state will be a big improvement from the current state, the company will be well on its way.
- Get real and be honest about the current state of the business. Leaders will need to clearly define the current state before they can understand, with objectivity, what needs to change. In this step, it’s important to focus on the positives and the negatives of the current reality. If leaders are not honest and vulnerable through this part of the process, it will be difficult to transform the part of they business that needs help.
- Explore the contrast between where the company is today and the future state leadership wants for the business. All too often, leaders burden themselves with the weight of reality: the board will never approve, we don’t have the budget, we are too busy, etc. It’s critical that leaders look beyond these factors. They can deal with issues such as these if and when they present themselves.
In this third step of the process, it’s important to redefine the reality in which the company is operating to open up the possibilities. Psychologists refer to this as cognitive reframing, which means imagining yourself in a state where most things are possible. For example, if everyone in the organization was on board with the leader’s vision for a future state and ready to work toward it, what would that be like? This will prevent leadership from censoring their ideas for transformation and killing them before they even get started.
It’s a leader’s job to help everyone involved adapt to changing circumstances as they unfold. Leaders can’t let “what if” scenarios and tactics get in the way of strategy. In the beginning, it is more important to have a clear vision for where leadership wants the company to go than knowing how they’re going to get there.
If leaders aren’t sure how this could apply to their business, they can start by listing two transformation initiatives that they believe their organization would consider if all critical stakeholders in and around the business were aligned. If getting everyone on board to initiate change was easy, what would they dream up for the business?
Transformation can seem daunting, but it doesn’t have to be. Sure, it will come with fear and new challenges but with awareness and the conviction to make the organization better, it’s possible to move forward, inspire the workforce and company stakeholders and begin the journey to the future state of the business.
