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

Cash Flow Myth 4 - That's What Our Bank and Credit Line are For
Fact: Banks will only finance a portion of your cash flow needs. They will have specific requirements related to how much working capital you need to have invested of your own.
Related Article
Lean Principle - People First (Then Process and Tools)
To optimize productivity, a contractor must focus on their people first, then processes and tools including technology as an integrated management system with a hierarchy. This is not a linear process: S.M.A.R.T. Experiments + Continuous Improvement.
Related Article
Work Rules: Two Truths of Performance Evaluation Systems
Performance evaluation systems are a critical part of talent development and one of the nine key processes. The foundation of great coaching -- like John Wooden used effectively -- is about being able to give rapid and actionable feedback.
Related Article