Issue 2 of 9: Culture

Construction Ownership Transition Issue 2 of 9: Is the Culture Truly Ready for Succession?

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This is closely related to the strength and alignment of the management team but extends out to the whole team.  

Succession: Ownership Transition Issues - Number 2 Culture. Is the Culture of the team beyond the key managers truly prepared for an ownership transition?

“Why does it matter to the employees what happens with succession?”

While this is easy and even logical to think (or say), the reality is very different. If the overall culture of the company is not truly prepared for ownership and leadership transitions, then it can cause a drop in morale and, in turn, lead to lower productivity and likely higher turnover.

After diving deeply into the level of trust between key stakeholder groups, the next thing to assess is the broader culture. As Daniel Coyle points out in The Culture Code, there are three main areas to dive into for a high-performing culture.

  • BUILD SAFETY: Do the employees feel secure that their jobs and future career opportunities won’t be negatively impacted by the change?  
  • SHARE VULNERABILITY: If they weren’t, would they be comfortable talking about their concerns?  Or would they just leave silently? Or worse - stay and poison the culture further?
  • ESTABLISH PURPOSE: Do they understand why both ownership and leadership succession are necessary parts of a vibrant business? It is the equivalent of the nature’s cycle of life for a business. 

Construction is a people business. How much value would be destroyed if 20% of your top PMs, estimators, field supervisors, and crafts people turned over during the succession process?   




Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Succession
Continue building value in your business, yourself and your key team members with a good succession strategy....

Organizational Structures and Succession Preparation
Whether you are focused on growing profitably or preparing for an ownership transition, the strength of your organizational structure is a major factor.
Four Primary Financing Options
One way or another, there has to be some form of financing for an ownership transition to occur where one or more parties are putting capital at risk.
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.