Some construction firms seem to grow simply by “getting out there and hustling for projects.” However, those that take a more organized and methodical approach can grow in a manner that is more profitable, manageable and sustainable.
One of the key differences between these two types of companies is the presence of a formal Strategic Plan that is guided by a clear vision of where the company is going — and how it can continuously make improvements along the way.
At HORNE, we’ve helped a variety of firms reap the advantages of strategic planning. While every company is unique, we’ve identified six key factors that can impact the success of any strategic plan.
Call In The Right Consultant
Bringing in an experienced outsider can help in three very important ways. First and foremost, a firm that is experienced in formulating plans can add structure to the process. Second, if they are experienced in your industry, they can share best practices and industry benchmarks in areas like job costing, pricing and staffing. Third, if they offer insights into areas that are outside your expertise, they can you help you tackle issues you might overlook, such as items involving cashflow, debt structuring, taxes and more.
Hone In On Your Vision
A strategic plan should set immediate goals and milestones for the coming year. However, its guiding principle should be a long-term vision of what you want your company to be 3, 5 or 10 years from now. Your long-term vision can have a profound impact on your short-term decisions surrounding things like the type of projects you take on, the capital investments you make, the types of clients you approach, and even the people you hire.
Secure Buy-In
As you’re forming your strategic plan, be sure to include as many members of your leadership team as feasible. People are more likely to be involved and committed to processes they’ve had a say in. They are more likely to take ownership of goals that they’ve helped set. At HORNE, we begin the task of helping clients formulate their strategic plan with a day and a half session that spells out where you’re heading and how you’ll get there — and solicits input from those involved from the very outset.
Make It Measurable
It’s not enough to have objectives. The whole point of a strategic plan is to identify milestones you want to reach, express them in measurable terms, assign ownership to the stakeholder or stakeholders, and assign targeted deadlines. As the old saying goes, “you can’t manage what you can’t measure.” By identifying meaningful metrics, you can look back and see exactly what you’ve accomplished – and where improvements can still be made.
Share
It goes without saying that not every employee will be involved in shaping your strategic plan. However, they should all know about it. Share the “big picture” with your entire team. Employees want to feel as if they are part of a company that has a vision for the future. They become more motivated and engaged when they feel as if the work they do today is contributing to a brighter future for all.
Follow-Up And Adjust
Last, but certainly not least, comes follow-up. All too many companies formulate a vision and a plan, only to have it sit in a drawer and collect dust. The risk of this is particularly high during busy periods, when immediate project responsibilities may override longer-term efforts. At HORNE, we encourage clients to have quarterly meetings to discuss the progress they’ve made on action items. We assist by facilitating these meetings, and help evaluate whether the metrics, schedules or KPIs need to be adjusted.
Talk to HORNE
By offering expertise in strategic consulting and planning, HORNE has helped a variety of companies move closer to their goals. With decades of experience, our Construction Practice can offer specific insights into your industry and your business.
As a Top 50 Accounting Firm, we also provide access to the tax, accounting and business consulting services clients need to improve the quality, accuracy and reliability of their financials. For more information on how HORNE can help you with strategic planning and other areas of business, contact us today.
