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.

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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?   

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Decision Quality: Data Points, Accuracy, Confidence, and the Danger Zone
Decision quality IS NOT linearly related to information quantity. In complex environments with elements of uncertainty, data quantity quickly reaches a point of diminishing returns but increases decision confidence, which puts you into the danger zone.
Observe, Orient, Decide, and Act (The OODA Loop)
The OODA Loop is a decision-making framework originally developed for the military to make agility a competitive advantage. The focus on fast, localized decisions in rapidly changing environments aligns well with construction projects and businesses.
Progressive Levels of Business Development
The most important first step for a contractor is to find a customer who will pay for a project. With continued growth, the process of business development becomes progressively more complex including how it is integrated with strategy and operations.