In the construction industry, one of the greatest dangers of busy times it that owners often find themselves spending too much time working in the business rather than on it. The immediate workload gets done, but focus shifts away from the company’s vision and long-term objectives.
Having a formal strategic plan in place can help you avoid this common pitfall and help keep you on track to achieve your future goals – whether they be short-, mid- or long-term.
Short-Term Strategic Goals
A strategic plan can help you keep key action items for the year ahead moving forward, even during busy periods. By assigning ownership and deadlines to key tasks, you can continue to make operational improvements throughout the year. During boom years, particular attention should be paid to areas that will help you get the greatest possible benefit from good times. For example, focusing on processes and technologies that impact operational costs, margins, scheduling, resource allocation and cash-flow can help you achieve maximum profitability and a more organized workflow.
The benefits of short-term strategic planning aren’t just financial or operational; they can also give your personnel a needed boost by uniting them under a shared vision for the future. During busier times, a key focus of your strategic plan should also be devoted to personnel issues, such as retention programs that keep valued employees on board, recruitment efforts to draw new employees and forming alliances with sub-contractors who can help handle spikes in workload.
Mid-Term Strategic Goals
Visionary companies will look further down the pipeline with a plan that helps them anticipate obstacles and opportunities that are one to three years out. Goals to consider within this timeframe might include:
Managed or targeted growth.
As you look to the future, are you best served by focusing on a particular type of project or client? Do you see growth coming from within your traditional geographic areas, or is it wise to expand into new markets?
Improved operational efficiency.
It’s not enough to work harder; you also want to work smarter. How can you streamline processes, workload and organizational structure to reduce costs or improve performance over time?
Expanded product or service offering.
Does your vision include expanding into new verticals so that you can take on a broader range of projects? Or, do you plan to stay within your core traditional disciplines? Are there new and innovative technologies, equipment or practices that you need to incorporate in order to maintain or grow your competitive edge?
Long-Term Strategic Goals
As you look beyond three to five years out, your goals will not involve specific projects. They speak to the essence of what you want your company to be. This includes:
Vision.
First and foremost, what does your company want to eventually become – not just in terms of size, location and types of projects, but also in terms of what you stand for and the role you play in your community?
Sustainability.
How do you establish into place the financial and organizational processes it takes to sustain your business as the industry and economy change?
Market adaptation.
The construction industry is prone to fluctuate with economic, social and industry trends, as well as shifts in population. What future industry, technological or economic changes will impact your market in the years ahead, and how can you best prepare for them?
Resource management.
What physical, financial and organizational assets do you need to have in place to secure your future and achieve your vision? What alliances, relationships, capital expenditures and investments will best serve you in the long-term?
Exit or transition planning.
What will happen with your company after your involvement is over? In our experience, the most successful transitions are those that are planned years in advance.
When you consider short-, mid- and long-term goals, it’s easy to see that they are interconnected. Your long-term vision may impact the people, partners and projects you attract today. And, the decisions you make right now can move you closer to — or farther from — where you eventually want to be.
Talk to HORNE
When times are busy, companies often delay strategic planning. That’s unfortunate, because busy times enable you to proactively plan with optimism and confidence. HORNE helps you focus on the future by developing a formal plan that spells out your vision — and provides a clear roadmap of goals and objectives.
In addition to strategic planning, HORNE offers construction firms a comprehensive array of services to improve profitability and performance. As a Top 30 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.
