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BSCI 7100 - Executive Issues in Construction Management

Professor Williams

  Lecture Notes:

Topic: Strategic Planning

Presenter:  Doug Strohmeier

Manager of Business Development, Doster Construction

Strategic Planning: Methodology

- What is it?

1. Determines, shapes, reveals the objectives-goals of a company.
2. Produces policies and an action plan to achieve the objectives.
3. Answers the question: What kind of company do you want to be?
1. Defines the “what” by looking at resources, experience, and profit potential.

  The Strategy should have a pattern, of which there are two types:

• Shotgun: broad ranging to hit a lot of areas but not concentrated.
• Rifle: More precise and concentrated on a narrow range of products.

  It is vital that the Strategic Plan touches ALL areas of the company.  

- What are you going to do in such areas as?

• Construction Operations
• Estimating
• Marketing

SWOT ANALYSIS: In order to analyze what you want to be and in what direction you want to take,        the company must perform a SWOT analysis.

SWOT: Strengths, Weaknesses, Opportunities, and Threats.

  Strengths and Weaknesses are internal to the company

  Opportunities and Threats are external and do not allow for company control.

After performing the SWOT analysis an Action Plan must be formulated for each objective in order to show how the company is to achieve each goal, plus you must place the proper person who is responsible to carry out the action plan.

What is an Action Plan?

An action plan should:

1. Be Specific
2. Be Measurable: how do you evaluate.
3. Have Attainable yet high set Goals.
4. Have a Time Frame associated with it.

When do you evaluate?  At least on a semi-annual basis, but it is encouraged to have the plan in mind during all decision-making and review it continuously.  The plan should be flexible and able to change according to unforeseen new expectation.

Who creates the plan?

When formulating a new Strategic Plan it is best to bring in a consultant from outside the realm your construction company so no bias is in place, there by reinforcing the idea of creating a new plan of action and thought process.

What is wrong with Strategic Plans?

1. Unattainable goals with no action plan to achieve them.
2. Future expectations for the company and economy are wrong.
3. Execution of the plan is poorly done.
4. Decisions makers are unwilling to make changes (inflexible) when needed.

It is important that the CEO and those in executive positions lead and champion the strategic plan. Upper management set’s the attitude and culture of the company and employees will follow it.

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Home Work Assignment: Case Study

1. Read through case study.
2. Give a narrative of history.
3. What is the company’s Mission Statement?
4. Do SWOT analysis.
5. Brief Financial Analysis: Why does the company have low profit margins?
6. Offer Three (3) Strategic Alternatives for the company.
7. Recommend a course of action through one (1) of the alternatives you choose.

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