Definition of Sustainability

How sustainable is your construction business?

D. Brown Management Profile Picture
D. Brown Management
March 8, 2019 1 minute read
Share
Leadership Tools: Definition of Sustainability: The ability to be maintained at a certain rate or level.

Not your ability to build sustainable buildings, but the true sustainability of your business.

  • Are the market(s) that you are in stable or at least counter-cyclical to each other throughout various economic cycles?

  • Are those market(s) growing, stacking the cards in your favor that your company will continue growing?

  • Do your customers love you to the point where they keep coming back to you for projects?

  • Do you have good business development capabilities that will create predictable revenue growth?

  • Do you have good talent development systems, ensuring that your revenue growth does not exceed your ability to grow and retain leadership talent?  

  • Are you generating enough free cash flow to support your growth?

Sometimes, an outside perspective can be invaluable for helping assess and improve your sustainability. 

What does your scoreboard say?  

What is Lean
Labor productivity in the construction industry impacts all contractors and project owners and has become even more challenging with the craft labor shortage.
Related Article
Succession Fact #2: Desire & Competencies in the Management Team
Succession Fact #2: No exit strategy or deal structure will create desire, alignment, and competencies in the management team. With that said, it is incredibly important that the exit strategy and structure of the deal maintains and enhances the team.
Related Article
Profitability and Cash Flow: From Goal to Plan to Process to Prerequisite
Profitability and cash flow evolve with a contractor's growth, transitioning from goals to plans, to processes, and finally to prerequisites that sustain the business.
Related Article