Construction contractors: you may not think a vision and goals are important for your company. Let me show you why it is.

According to research by Chris Zook of Bain and Company, only 40% of employees across organizations have any idea what the goals of their company are. That means that 60% of employees are not contributing to the company focus or achieving its goals.

In another study, Stephen Covey makes remarkably clear how the gap between understanding and execution of a company’s goals prevents a company’s ability to grow. Consider:

• Only 15% of employees understand the organization’s top goals.
• Of the people who know the top goals, only 19% are bought into those goals.
• People only spend 49% of their time working towards those goals.
• 51% do not understand what they can do to help achieve the company’s goals.

How to Create Your Construction Company’s Vision

Your employees need a clear understanding of the big picture and how they fit in. Successful business owners, managers, and foremen are transparent and tell employees where their company is going. They explain the company’s vision for the future and the changes required to be successful. Employees need to know what’s happening; otherwise, they tend to think the worst.

Your vision is what you believe is possible for your company to achieve. It is critical to the goal setting process. Where do you see your company in five years? In 10 years? And it is critical for getting your employees engaged in the company. What does the vision mean to them? How will they participate in the future of the company?

According to Bain & Company, the process of creating a vision requires:

• Clear identification of the corporate culture, values, strategy, and view of the future by interviewing employees, suppliers, and customers
• Addressing the commitment the company has to its key stakeholders, including customers, employees, shareholders, and communities
• Ensuring that the objectives are measurable, the approach is actionable, and the vision is achievable
• Communicating the message in clear, simple, and precise language
• Developing buy-in and support throughout the company

Share an early draft of your vision with one or two of your closest leaders and get their feedback. It will take a few attempts to get the wording and intent clear and precise.

Then, communicate your vision with your workers. The better they understand what you really want the company “to be” the more reason they will have to follow work processes and procedures to help reach the vision.

Here are a few construction company vision statements. Please remember: Your vision is personal to your company. You can’t simply copy and paste another company’s vision statement and make it your own.

• To be the builder of choice for value minded clients and high performing employees.
• Be a respected, leading regional infrastructure contractor.
• To be the leading brand in construction recognized for quality and innovation, supporting our staff and the communities in which we work, by being the contractor of choice in our market.
• Our vision is to be the leading underground utilities contractor in California serving others by creating jobs and building a better tomorrow.
• [Company] is both the preferred construction management firm and employer of choice throughout the Western Region of the United States. Due to our high level of craftsmanship, we are a company that our customers want to work with, and our employees are proud to work for.

Goal Setting for Your Construction Company

Your goals should be aligned with your vision and core values. Once goals are determined you need to develop strategies – how these goals be achieved. Having brainstorming sessions with leadership and employees is an effective way to develop good strategies.

Make sure that you prioritize your goals. Companies that try to do too much at one time often wind up doing very little. The most successful companies not only have clearly defined goals and action plans, but they make sure their people have time to accomplish them.

Are Your Goals SMART?

Each of your goals need to be a SMART goal.  Taken one letter at a time, this means:

• Specific: State your goals in the most specific terms possible, e.g., numbers and deadlines.
• Measurable: If you can’t measure it, how do you know if you have achieved it?  Be sure to quantify your goals and include a deadline.
• Achievable: Your goals should be challenging, but possible.
• Realistic: Are your goals something that you and your team are capable of?
• Timely: Include a deadline and don’t keep pushing towards a goal you think you might achieve “someday.”

8 Goals to Consider for Your Construction Company

#1: Safety Standards

What safety goals does your company have? How are you making sure your company’s safety programs are being followed at each jobsite?

Before beginning any project, you should create a plan that:

• Identifies potential risks that can happen during that project and how to prevent them
• Safety training for your employees
• Workers’ compensation insurance
• COVID -19 prevention practices

Don’t forget to consult your employees when designing the safety plan, since they are the ones who work in the field and know all of the risks and accidents better.

Creating safety plans and facilitating employee communication concerning safety will provide your construction company with the foundation it needs to conduct work effectively and have a strong foundation for growth.

#2: Communication and Teamwork

It is important that all levels of your team communicate and work together. In addition to the normal preconstruction and project handoff meetings, teams should also have an in-depth meeting after project completion to discuss what went well and what can improve.

It is also important to have timely and accurate communication with your accounting department. Financial statements are affected by having accurate information from the field.

Communication will ensure that projects are handled efficiently so your company can grow profitably.

#3: Create and Execute a Strategic Plan

Creating your vision and goals, as covered in this blog post, is the start of your strategic plan. The next step is to create strategies or action items that will help you achieve your construction company goals.

Often, owners don’t know where to begin because they don’t have a clear picture of where their company is today. Having good metrics and a way to easily access data is essential to setting goals and staying on track. For example,

• Do you know your true overhead cost and indirect job cost?
• At the end of the week, do you know whether or not you were profitable?
• How is your cash flow? You want to track cash demand periods, days in accounts receivable, days in accounts payable, and overbilling and underbilling.
• How profitable is your company? Calculate your gross profit margin, net profit margin, and return on equity.
• What is your average revenue per hour worked?
• What is your time and cost rate?

An advisor can help you walk through setting your goals and hold you accountable throughout the year.

#4: Succession Planning

Succession planning is developing an appropriate strategy for replacing or passing the leadership roles. With it, you identify potential leaders who can take on the vacant positions when they arise.

Your safety plan helps you identify the potential risks, but you will also need a succession plan that can define who is going to take care of what during the crisis and what exact steps should be taken.

Prepare a written and documented succession plan that all your employees will know and agree on.

#5: Cybersecurity

It doesn’t matter if your construction company is big or small — having your data protected is crucial, or you will be at risk of a cyberattack.

Constantly practicing vulnerability scans, creating internal controls, and assessing risks will help your construction business stay safe from cybersecurity threats.

#6: Build a Strong and Efficient Team

There is nothing more important than having a professional team for your construction business. Most of the success factors depend on your employees, so you cannot afford to have workers who constantly fail in their tasks.

When building your team, hire professionals who have already been working on similar projects and know how to ensure quality results. But hiring skilled employees is only half of the job: most success depends on how your construction business will treat them. More on this topic in a future blog post.

#7: Make Smart Business Decisions

Every decision you make has the power to contribute to your project’s success or failure. When making an important decision:

• Take your time
• Weigh the pros and cons
• Assess your project needs
• Think long-term: keep your company’s future in mind
• Ask yourself, How does this decision align with our construction company’s goals?

#8: Invest in Your Construction Business

Investing both time and money will help you reach success in construction quicker. Buy proper equipment and technology, train your employees, implement a marketing program, use good project management software, and put as much time into your construction business as you can.

Conclusion

Creating your construction company’s vision and goals has several benefits including:

• Attracting, motivating, and engaging employees
• Defining your company’s culture
• Prioritizing resources
• Serving as the foundation for growth

Make 2023 the year you put in the hard work to create your company’s vision and goals. You won’t regret it. At Eclipse Accounting & Tax, we are here to help you.