Mental Models and Building Strong Businesses

The best builders develop a complex 5D mental model of the project.

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This complex 5D mental model is then constantly kept updated. Through thousands of interactions with hundreds of people over years they “nudge” the project from concept through construction completion.

Leadership Tools: Mental Models and Building Construction Businesses

They make lots of mistakes but what keeps the project on-track is that they know what’s not fitting their mental model and they adjust quickly.  They have rigorous processes for managing design revisions, requests for information and a submittal process to ensure they are getting what they really want.  They have many routine meetings, planning and communication rhythms.

Building a construction business is no different; just more complex and (hopefully) continuing on for many decades.  It is critical for leaders at all levels within a contracting business to develop detailed mental models of the business as it operates today and as they want it to operate in the future.  

They must engage people who will challenge every aspect of that mental model just as a building design is challenged to make it better, more cost effective, faster, etc. 

This is where an unbiased but experienced 3rd party facilitator can really add value. 


Learn More:




Cash Flow and the 5Cs of Credit - Capital
The 2nd of the 5Cs of Credit is how much capital you are putting at risk, along with your financial partner. Contractors should design and follow their own capital management policies appropriate for their business.
Accounting and Finance (Similarities, Differences, and Integration)
For a growing contractor, understanding the differences between accounting and finance is often a challenge. The two functions are related but very different.
Impacted Productivity - Stacking of Trades and Installation Efficiency
Each craftsperson needs about 200 usable square feet for a productive installation. This assumption is included in production units used to estimate and budget projects. Having less than that can impact productivity up to 50%.