Organizational Structures and Leadership Development

As contractors look at their organizational structures with an eye toward both sustainable growth and succession, they must balance the efficiency a functional area structure provides with the leadership development of a business unit structure.

D. Brown Management Profile Picture
Share

In a functional area structure, you avoid duplication of roles and individual functional areas such as estimating, purchasing, and field management are centralized. If executed effectively, this creates great efficiencies with the enabling bureaucracy required for scalability.

Succession: Organizational Structures and Leadership Development. A functional area organizational structure versus one aligned around business units down to a Project Manager. Levels of work including front-line execution, front-line supervision, process design and management, operations flow and integration, general business leadership. Stratified Systems Theory (SST).

For some contractors, it makes sense to break the business into smaller independent business units so broader general leadership skills can be developed and assessed. These individual business units are smaller and the job roles must be more fluid, which can be great for accelerating development and frustratingly messy at the same time.  

Just remember that compensation and accountability will not create competencies and both structures require deliberate development of the team.  

This is more challenging than we can cover in a short post. Please contact us if you want to further discuss the specifics of your organizational structure. 


Organizational Structures and Leadership Development
Continue building value in your business, yourself and your key team members with a good succession strategy....

Organizational Structures and Leadership Development
Continue building value in your business, yourself and your key team members with a good succession strategy....

Leveraging Precon and CMAR for Sustainable Growth
Many contractors in many markets can use this three phase strategy to achieve sustainable growth by leveraging CM at Risk and Advanced Preconstruction Services to build a competitive advantage.
003 - Talent Value Stream for Construction (Intro)
Turn the construction talent shortage into your advantage. As talent scarcity worsens through 2030, master your Talent Value Stream (TVS) to ensure growth isn't limited. Includes 2 hours of examples and 25+ resources to grow your career and company.
Cash Flow and the 5Cs of Credit - Capital
The 2nd of the 5Cs of Credit is how much capital you are putting at risk, along with your financial partner. Contractors should design and follow their own capital management policies appropriate for their business.