Business Operating Layer

Execution is critical for contractors because we work in a highly competitive business with relatively low margins compared to the risks taken.

D. Brown Management Profile Picture
D. Brown Management
February 16, 2018 2 minute read
Share

Execution is the discipline of getting things done. A simple way to look at your organizational structure is in three major layers:

Contractor Business Model Business Operating Layer.
  1. Ownership & Senior Executive Leadership:  Defining what you want the business to look like over 10+ years and how the business will be setup for the next generation of leadership.  
  2. Business Operating Layer: This is the layer that ensures execution of the long-term strategy and delivers the financial returns required by the owners.
  3. Project Execution Layer:  This is where the rubber meets the road and value is added to your customers.  This layer makes up the majority of the talent, time and other resources in any contracting business.  This includes all project related people and support. This is the foundation and any weaknesses here will show up everywhere.  

How many of the problems you are having at the Project Execution Layer are due to weaknesses in the Business Operating Layer?   

Learn More

Cascading Goal Setting and Management (Objectives and Key Results - OKRs)
Successful outcomes start with shared goals integrated across all parts of the business — including multi-company project teams. Management ensures those goals are regularly reviewed and adjusted to stay on track.
Related Article
Headcount, Management Structure, and Systems
Your management structure and systems must be able to support your forecasted 2-month peak headcount, including the ramp-up to that peak.
Related Article
Capital Constraints to Growth (The Basic Formula)
Capital is one of the three primary growth constraints for construction contractors. Use this simple formula to determine how much of your pre-tax net profits need to be retained in the company to support growth and to establish your safe growth limits.
Related Article