To achieve success, every construction company must execute key tasks flawlessly. When these essential functions, processes, and systems get sidetracked or handled chaotically, projects finish late and over budget. Then, customer disappointment occurs, leading them to seek new contractors for their next projects. Imagine if McDonald’s burgers tasted different every visit; few would return. In a similar manner, your construction firm cannot thrive if it is out of control or operates in disarray. The pressure to create a profitable company often tempts owners to micro-manage, take too much control, or fly by the seat of their pants.

OVERWHELMED & OUT OF CONTROL?

Is your business just “okay,” with various processes pieced together like a patchwork? 

  • Do you struggle to get everything on your plate completed?
  • Do you have more than five people reporting to you? 
  • Do you personally order and schedule all materials due to a lack of effective systems for your foremen? 
  • Do you find yourself bouncing from job site to job site, ensuring crews execute tasks as you envision? 
  • Are you making almost every decision, big and small, because you lack confidence in your team?

If you answered “Yes” to any question, you’re likely too busy working to build strong customer relationships; take time to hold regular meetings; provide training; fully understand and track your actual job costs; have financial or profit targets; or submit accurate winning estimates and proposals.

SYSTEMS VERSUS PEOPLE

Successful companies have established written operational systems that empower managers to coach instead of micromanaging. Eventually, to take charge of your future success, you realize you can’t be physically present on every job site. This realization forces a choice: You either downsize your company to retain control, remaining the “do-it-all” owner of a low-profit firm, or implement written systems to enable employees to perform tasks independently, alleviating the need for your constant oversight. This shift allows you to focus on vital tasks that drive company profits and growth.

What happens or doesn’t happen when you do it all yourself? Nothing happens without your involvement, if you don’t have good systems in place to allow people to do a good job without reminding or telling them what to do. The more you do for employees, the less they do for you. 

What occurs when you attempt to manage everything personally without effective systems? Nothing gets done efficiently. The more you take charge or do yourself, the less your employees contribute, which stunts their growth. Continually making decisions for your team stifles their potential and demotivates them. When you understand issues and chaos in your company stem from your controlling personality and micromanagement, it becomes clear that “letting go,” delegating, and creating written systems is crucial. This transition changes your role from a control freak to a systems manager.

GOOD PEOPLE REQUIRE GOOD SYSTEMS

Without written systems in place, employing good people won’t help your problem, and even the best employees will struggle. Six competent individuals doing tasks differently leads to inconsistencies, inefficiencies, and different production rates. This approach won’t serve your long-term growth ambitions. 

Start by identifying the top tasks in your company work areas that must be executed flawlessly to succeed. For instance, if you specialize in concrete work, it’s vital to have a system ensuring slabs are installed according to plans and with the only cracks at designated expansion joints. 

In estimating new projects, accurate job-costing systems are essential. To ensure profitability, implement financial systems to track job costs, forecast cash flow needs, and monitor overhead and profit goals.

If you were considering acquiring another company, you would want to know whether it operates independently of its owner. Successful companies have written operational systems in place to allow managers to coach, train, and motivate people rather than micro-manage and make every decision for them. Efficient businesses are systemized and organized, with systems managing operations rather than the owner. In such setups, owners or managers oversee the systems instead of becoming entangled in daily tasks. A well-organized company delivers consistent results, fostering repeat customers, a safe work environment, quality craftsmanship, timely project completions, and empowered, accountable employees—all contributing to above-average profit margins.

IMPLEMENT ONE SYSTEM EVERY WEEK

Business evolves, and continuous improvement is essential as you grow, hire, promote, and train new employees. Sticking to old methods stifles progress. Consider professional sports teams. Teams are always installing new plays, trying new things, and constantly working on new ways to beat their competition. Your business should adopt a similar mindset. As a contractor, you must also improve and work on new ways to do business. If you continue to do business the same way, you won’t improve. 

Aim to implement one to two new systems each month to drive improvements. When building your operational manual, prioritize the most critical tasks that ensure success. This operational “must do” playbook will guide how you run your business. Remember, if knowledge exists solely in your head, you’re the only one making the calls. By establishing these written operational systems, you’ll free up time to seek better clients, hire and train skilled workers, and pursue profitable opportunities. If you continue making every decision and doing too much yourself, you’ll miss the chance to grow and achieve your full potential. 

Stop the cycle of micromanagement, chaos and disorganization. When you work too hard and make all the decisions, you’ll never have time to get better, and you’ll peak at the level of what you control. Embrace organization and empower your employees with structured systems to drive productivity and consistency. This transformation will not only enhance your business operations but will also allow you to focus on meaningful growth and profitability in the long run. 

about the author

George Hedley CPBC is a certified professional construction business coach, consultant, and speaker. He shows contractors how to double their profits, grow, get organized, and get their company to work like a machine! He is the author of Get Your Construction Business To Always Make A Profit! available on Amazon.com. To talk, start a personalized BIZ-BUILDER program, or get his free e-newsletter, email gh@hardhatbizcoach.com. Visit his YouTube channel to watch his videos. To download online courses or get his contractor templates, visit www.constructionbusinesscoaching.com.