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How to Thrive Coming Out of

the Recession

Ted Garrison

New Construction Strategies

[email protected]

www.TedGarrison.com

800-861-0861

mailto:[email protected]

http://www.tedgarrison.com/


Change Is Coming!

“Because the recession is so severe, and

because of the unique way in which it

happened, we can be sure that it will

change the world in several big, long

lasting ways.”

Geoff Colvin, The Upside of the Downturn


Self-Inflicted Wound

“In many industries, what some call

hyper competition is a self-inflicted

wound.”

Michael Porter


The New Reality!

“For business, it’s no longer enough to

create a product that’s reasonably

priced and adequately functional.”

Daniel Pink

A Whole New Mind


Too Many People In the Construction

Business Are Insane!

● Albert Einstein

defines insanity as:

“Doing the same

thing over and over

and expecting to get

different results.”

● What’s needed is a

superior strategy!


Blue Ocean Contracting

• Blue Ocean Contracting creates a new or

redefines the construction industry

• Blue Ocean Contractors &Vendors typically

redefine the market

• Blue Ocean Contractors out-think the

competition

• Blue Ocean Contractors create new demand

instead of fighting over existing demand

• Blue Ocean Contracting is the responsible way

to maximize opportunity & minimize risk


2 Schools of Thought

• Agile

• Operational – improve operations & processes

• Strategic – seizing on new opportunities or markets

• Toughen up for battle

• Lower costs

• Build a war chest of funds to ride it out

• Protect the core

• 3rd Option – Combination

• Be tough without sacrificing agility

• Manage the trade-offs

• Think agile


10 Critical Business Practices

1.Effective leadership

2.Strategic thinking

3.Value-based construction

4.Continuous innovation

5.360° collaboration

6.Systems based

7.Effective risk management

8.Lean operations

9.Better use of technology

10.Measurement


Avoid Subjective Decisions!Event - Project

Initial conditionsFinal

conditions

Time

• The more info we have before the event, the easier it is to predict the final outcome

• The less info we have before the event, the harder it is to predict the final outcome

• However, the lack of info will never change the final outcome

• Probability occurs when people don’t understand

• Must think proactively – not reactively


Effective Leadership• Leadership is not about control

• Leadership is about the ability to perceive, in

essence to look ahead, then allocate the

resources (human & capital) in the best

possible way.

• Jim Collins referred to this as “Getting the

right people on the bus in the right seats.”

• “Leadership is the capacity to engage people

& groups outside one’s formal control &

inspire them to work toward common goals –

despite differences in convictions, cultural

values, and operating norms.” H. Ibarra & M. Hansen


Strategic Thinking

• Effective planning – whether a company’s

strategic plan, project planning, or solving a

problem – requires Strategic Thinking

• Effective Strategic Thinking requires

leadership and a process

• 5 – Step Strategic Thinking process• Get the right people involved

• Define the problem

• Develop possible solutions

• Identify the right options

• Execute the strategy


Value-based Construction

• Upstream activities (sourcing, production, &

logistics) are being commoditized, while

downstream activities that reduce

customer’s costs or risks are becoming the

drivers of value creation & a competitive

advantage

• Need to focus on pre-construction activities

• Need to focus on life-cycle costs


Continuous Innovation

• “Tomorrow’s victories will go to the masters

of innovation! Period!” Tom Peters

• What’s the purpose of outsourcing?

• Innovation!

• Focus on desired outcomes – not fixing a

problem

• Keys to innovation

• Continuous learning

• Continuous improvement

• Empowering everyone


360° Collaboration

• The more complex a system the greater the

need for collaboration

• Involve the people who must do it

• IPD/Design-build works because it embraces

collaboration between all supply chain

members

• What’s the most important task for PM’s and

superintendents?

• Identifying client problems


Questions?


Final Thoughts

• Challenge conventional wisdom

• Throw away the box! Think big – not small

• Stop thinking as a contractor – think like

someone out to find solutions

• Accept that change is coming to the

contracting business – like it or not – or you

will lose the battle!

• Is it easy? Absolutely not, but it’s better than

doing the same old things!


How to Thrive Coming Out of

the Recession

Ted Garrison

New Construction Strategies

[email protected]

www.TedGarrison.com

800-861-0861

mailto:[email protected]

http://www.tedgarrison.com/

how to thrive coming out of the recession... 1 how to thrive coming out of the recession ted...

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