Without establishing their ‘position’ in the market an engineering and construction company is destined to compete on price alone. This leads to low profitability, adversarial relationships with clients, disputes with subcontractors and suppliers and ultimately financial instability. Rather than competing on price alone, if an engineering and construction company can find its position in the market, it can also compete in terms of value. This ‘value’ is represented in the company’s ‘brand’. To secure their position within the market, we help engineering and construction companies to:
Define the Purpose
The overall purpose of an engineering and construction company is to build the future of our society. Our society is environmentally unsustainable. As constructing, running, maintaining and decommissioning the physical infrastructure in our society accounts for 50% of our energy usage, the engineering and construction industry has a huge role to play in building a more sustainable society. Within this overall purpose each engineering and construction company has a unique role to play. Otherwise, there is no reason for their existence. This purpose emerges from the interface and relationships between key stakeholders:
- Subcontractors and suppliers
See our Strategic Workshop services.
Develop the Strategy
Developing a strategy is simply the engineering and construction company finding a way to deliver its purpose to society and value to customers better than the competition and doing this efficiently so to make a profit. See our Strategic Workshop services.
Establish and Maintain the Brand
The company’s unique purpose, and how this is delivered, is communicated to the market through its ‘brand’. To be effective the brand needs to be clear, consistent and recognisable. See our Public Relations services.
Alliancing, as a strategic position, reflects a shift from more traditional procurement methods, which focus on strict risk allocations, to a collaborative approach. There are many business opportunities which can be realised through alliancing in the engineering and construction industries. These include:
- Gaining entrance to new markets
- Expanding the geographical coverage and/or product offering
- Learning new ways of working from partner organisations to improve business performance
- De-risking the business generally and making it more flexible to respond to external influences
These opportunities also come with risks. Around 20% of alliances end in dispute with 40 – 60% not achieving their goals. To maximise the opportunities and reduce the risks we will help you to select the right alliance partners, select the right people to the alliance, create the vision, establish an effective governance structure, build teamwork, foster a high performing culture and, above all, build trust through collaboration and communication. Contact us to find out more.