Operational Adaptability

Over the past two years, many companies have had to change to remain competitive. Often the change was geographic or in type of work — for example, from private to federal projects. Fast adaptation to changing conditions is a trait of companies that sustain profitability. Equipment-based contractors often have a difficult time going from a strategic plan to actually implementing change in the field. Their nature is to focus on projects, often letting initiatives that could improve the company fall by the wayside.

The leadership team must have an understanding of the market, their competition and how the company will perform in the eyes of the customer. This situational awareness gives a solid foundation for success. Even with a thorough knowledge of this foundation in place, change is likely to fail without translation of intent into action. Companies that are able to translate the strategy shifts in the field with minimal profit loss have several factors in common. At a tactical level, companies successful with adapting to strategic change typically have three things in common:

1. Extensive project planning
2. Strong learning culture
3. And comprehensive lessons-learned practices

Effective Planning

As firms shift markets or change projects, many standard operating procedures are challenged. New markets and new products may require a different set of dig permits from the past. The customer may have some unique requirements, or there may be a need to cover means and methods in greater depth with field teams, as new technology or work environments are actualized. The most effective time to discover these needs is before the job starts. Successful contractors focus their efforts on developing a thorough, pre-job planning process. This maximizes the information for the field, while minimizing disruption from current operations. It allows effective allocation of resources and equipment effectively across projects for optimal company profitability. There are six key ways to enhance pre-job planning, including:

1. Involve the field staff (foremen/superintendents) in the estimating process.
2. Conduct a short hand-off meeting, covering critical areas and allowing the field staff time to get familiar with the project.
3. Conduct a project team presentation about the approach to the project.
4. Hold a means-and-methods meeting with vendors and subject matter experts.
5. Distribute previous-project job files and lessons learned that may apply to the new project.
6. Perform several on-site visits with the project team to discuss site specifics before mobilization.

Not every project will require all of these, but the right mix and timing will reduce expensive mistakes. With comprehensive pre-job planning, the pursuit of new types of projects can pay greater dividends and prevent delays or mistakes. An inconsistently executed hand-off meeting just doesn’t cut it anymore.

A Culture of Learning

While tools, systems and strategies are critical to the success of any organization, effective contractors know people cannot be separated from this equation. Developing a learning organization means allowing employees to take risks. Many companies have 40-year-veteran equipment operators sending “been there, done that” undertones and denying the value of continuous learning. However, truly experienced leaders understand the importance of continually seeking the next new improvement. Senior leaders can set an example by asking “how can we” type of questions, allowing junior associates the opportunity to propose and try new methods. Bringing in external experts (distributors, vendors, equipment manufacturers or subcontractors) also demonstrates that there is always more to learn. Most importantly, managers and leaders need to welcome the admissions of mistakes, requests for new ideas and suggestions for better methods.

Lessons Learned

For years, the Army has been conducting after action reviews (AARs) for every mission or training event. Typically, the format is a well-facilitated review of the plan, what happened, what changed and why. Done well, these “lessons learned meetings” focus on applying improvements in the future. A raised awareness and an opportunity to review what went right and wrong is healthy for organizations, applying those concepts to the next project takes this off-loading process to the next level.

It’s common for contractors to conduct a postmortem instead of a lessons-learned meeting. In some cases, the project team huddles and spends about an hour listening to a senior manager deliver an out-briefing. Shields and defenses are up (especially during this era of reductions) as the field leaders have not seen, or had time to review, a reconciliation of the project information (final costs, incidents, subcontractor scores and items with variance).

Formatted properly, lessons-learned meetings offer a chance for all project team members to discuss openly how the project performed, what actions they could have taken differently and their successes in facing challenges. To set a tone for attendees to share mistakes, successes and lessons learned, each member needs time to review the project reconciliation before the meeting. Providing this information to all participants prior to the meeting is crucial in setting the tone of the discussion.

The ability to take these lessons-learned insights and share them with the rest of the company allows for improvements across all projects. Notes and details of lessons-learned meetings should be saved in a common area for easy reference. Project teams starting the next project should then use the notes as they begin their pre-job planning. Uses of online libraries offer easy accessibility and are searchable to save time. Yet, well-organized file drawers can serve the same purpose for building the organization’s knowledge database.

Although adaptability often starts with a shared understanding of where the company is headed, success often depends on a structure that is founded on planning and learning. Pre-job planning and lessons-learned meetings reinforce the importance of learning and improving. Failure to incorporate these tools into every-day operations can result in obstacles that undermine even the best strategic plan. Great contractors are able to adapt operationally to provide a climate that encourages change. This makes shifting into new markets both profitable and successful.

James Schug is a senior consultant with FMI, the largest provider of management consulting and investment banking to the engineering and construction industry. He has more than a decade of experience as an Army officer leading combat engineers and heavy equipment companies, as well as experience with a national builder, successfully integrating operations, sales and customer service. Jim can be reached by calling 813-636-1254 or e-mailing jschug@fminet.com.