Strategic planning is a critical aspect of higher management, and this is true for all companies across any industry. In construction, the continuous process of strategic planning defines the future of the business. So, as a construction business owner, you need to have a strategic plan to record all your company goals and outline the right steps needed to achieve many milestones.
In this blog, we gladly want to impart our knowledge about strategic planning and help you create your own strategic plan tailored for your construction company.
What Should Be the Goals of Your Construction Company?
In many cases, great strategic planning usually begins by simply defining your company’s mission statement. The mission statement of your company is its living asset. So, make sure to come up with a great mission statement. As you define your company statement, you will brainstorm about the goals and ambitions you have for your business.
Your company goals are the fuel of your strategic plans. As for the goals, there are various types you can set. They can be organizational, financial, leadership, human resource, sales, and marketing. For your construction company, here are a few competitive goals we recommend:
- Keep your construction projects on time and within budget
- Deliver high-quality construction projects
- Be data-driven
- Standardized construction systems and processes
- Deploy construction manpower scheduling software
- Connect the office and worksite in a seamless manner
- Invest in team training and the workforce
- Customer satisfaction
All of the goals you set define your mission statement, your strategic plan, and everything you will do for your projects. Also, the more specific you are with the goals you set, the better it is. Do not just settle for “we will boost productivity”. Like what we say, be more specific. Be more exact. You should go for this, “We will boost our worksite productivity by 60% by improving overall communication with the use of construction crew scheduling software.
Six Steps for Construction Strategic Planning
A six-step framework is involved when it comes to strategic planning in construction.
Study the company’s mission.
Your company’s mission shows your perspective when it comes to the scope of company goals and activities. So, by strongly defining your company mission, you build an internal baseline. The following questions can guide you in making your company’s mission:
- What is your construction company good at? Make a list of all your core competencies.
- What are your project and company objectives?
- What is your commercial objective?
Examine the business environment of your company.
A business environment survey shows project opportunities for your company and calls attention to possible risks and threats to your company’s future activities. By studying the market environment and emerging trends, you can build a healthy external baseline.
- What are the determinable market dynamics?
- What are the external factors that affect your construction business?
- What are your customers’ behavior, needs, and demographics that can help you with your decision-making process?
- What other competitive variables can you further analyze?
Analyze your company resources.
Your company’s main resources may include the procurement system, construction capacity, the marketing system, the workforce, knowledge and finances, and overall organization. So, as you identify your main resources, make sure to determine also the strengths and weaknesses.
- What makes you stand out from the rest of your competition when it comes to your resources?
- How can you innovate?
Develop strategies
You may come up with numerous strategies, all of which are tailored to specific market and company conditions, as well as the company’s resources. In having the most optimal strategy, you should execute a careful analysis of costs and benefits, especially on the set of strategy implementation.
A few questions below may help you:
- What company and market conditions must be considered?
- In what logical order must activities be done and completed?
- Who is going to do what?
Align and execute your strategies.
The strategic plan you now have can balance both of your company’s short and long-term operations, as well as the goals to meet your target mission. The key here is to ensure communication on your strategic plans at every level and at any given opportunity. Consistent communication with your subcontractors should be aligned as well. Everyone must understand the roles they are going to play and the decisions they will make in executing the strategic plan.
- Do you have the best staff to support the actions necessary to achieve a milestone?
- What steps are necessary to take to do further actions?
- What are the activities you set to complete before reaching a goal?
Ensure to review, measure, and modify
Your strategic plan will eventually result in strategic processes and systems. And it’s not final yet because you have to evaluate, assess, and measure these processes and systems. You need to find out what works and what doesn’t. Adjustments and changes are always necessary.
Strategic Planning is Key to a Successful Construction Business
In the construction sector, where projects are big, complex, and time-consuming, strategic planning will always be a critical aspect. It is not just a buzzword, but a powerful tool that can help you future-proof your construction business.
Always stay ahead of the curve with strategic planning alongside the best cutting-edge technology in construction. Together, the right planning and powerful tools can help you accomplish your company goals and milestones and achieve continuous growth for your construction business.
Strategic planning will be your company’s roadmap towards huge success.
