How executive peer-groups are helping the construction sector re-engineer and prosper in spite of a gloomy outlook

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The last few years have been challenging for the construction sector to say the least. Since the Recession started the existing market has become more and more competitive. Construction output is at an all-time low, The Green Deal is floundering, promised infrastructure investment seems slow to materialise, which in turn stalls recovery in the sector as a whole.

Clients with projects to start are trying to make tendering for business more impartial, yet not necessarily

taking the ‘whole service package’ into consideration. This has allowed some construction companies

to drive margins down just to keep turning over, before, in some cases, going out of business.

Additional pressure from modernisation in the industry is seeing more accountability for on-going

energy efficiencies, both at the new build stage and retro fitting more efficient methods to reduce costs

and help meet the legal obligations of the Government to reduce the nation’s emissions. The steadily

increasing trend for different methods of construction, thanks to new technologies, in the form of

modular building, working in partnership with others and niching in specific sectors within the industry

are starting to impact on the sector too.

Tight domestic budgets have forced many into social housing, seeing the greatest increase in demand

for decades. So with responsibility to build these houses as well as ensure the efficient maintenance

for them, going forwards, this is putting Housing Associations and Councils under enormous pressure

to provide housing at affordable rates to their communities.

And the outlook is not forecast to change for the foreseeable future, so this may be ‘situation normal’

for at least the next 3-4 years – something many Chief Executive Officers and Managing Directors

would see as a daunting prospect. However, despite these significant challenges, there are several

within the construction industry who have not only survived, but thrived in this volatile environment.

How? Through being a Vistage member.

Vistage is the world’s leading CEO/MD organisation, and is helping many UK construction businesses

to buck the trend and be more successful than ever. Find out how… n

Construction Sector

Vistage Case Study

“The construction industry is in times of major change, of great danger and of stunning opportunity. Part of the future will be built upon traditional and well understood solutions, but a major part of what is to come is beyond present knowledge and experience. It is here where the Vistage process has assisted Waterloo in stepping from the ordinary to the outstanding, in fluently moving as part of the vanguard of the industry and in understanding how to take a full and profitable share of our market place.If I can adapt Sir Isaac Newton, ‘If we have seen

further it is by standing on the shoulders of Vistage.’”

Rick Edmondson CEO, Waterloo Air Products plc

2 Vistage Case Study | Construction

To succeed in this new world, new leadership skills are needed

Vistage members within the construction sector cited the following key challenges and how being

part of a Vistage group has helped them to overcome them. Which ones do you relate to?

The need to restructure to adapt to the new environment – whether this means down-sizing, recruiting or adapting to the changes taking place in the industry

Keith Breen, Managing Director from Tamdown Group Ltd, one of the UK’s leading multi-discipline,

multi-sector construction services contractors stated that due to margins steadily getting tighter, the

business took decisive action early, which helped to protect and keep cash in the business. This

enabled new strategies to be developed to adapt to the changing economy and environment and

now the business has an even healthier order book, investment in new machinery and graduate

recruitment happening – all because of the actions taken early, which Keith had discussed and been

challenged on by his Vistage peer group.

Being in a highly competitive market and understanding the need to play ‘smarter’

Keith also found that everyone has the same issues; it just affects different industries in different

ways, which can be illuminating in helping to deal with your own situation. Stuart Seddon, CEO from

Novus Property Solutions, one of the UK’s leading building, painting and maintenance firms, was

finding the market conditions and subsequent impact on cash flow challenging. By implementing

business planning, which hadn’t been in place before joining Vistage, it enabled him to spot pockets

of opportunity, identify where cost reductions could be made, clarify where the business focused its

attention and assess how new technology and methodologies could be adopted.

Pressure on margins and being in an industry that reflects the economic situation

Graham Mills, Chairman of Technics Group, the award-winning geospatial consultant surveyors

based in Surrey, found that many CEOs are in danger of running their businesses in their own industry

‘bubble’ – unaware of what is going on outside their industry. In 2007, his Vistage group shared

crucial information about the economic downturn very early on. It was those early conversations that

ensured they all took the right steps to prepare for what lay ahead – and did not leave it too late to

take action. Because they were open and honest with each other, sharing expertise and discussing

how to cut costs and get through the difficult times, they all benefited.

Being in an industry that is changing and modernising

David Woodhead from Robert Woodhead, another award-winning Nottinghamshire-based

construction company specialising in design, refurbishment, conservation and building maintenance

has been a Vistage member for over 16 years and feels that he has been kept well informed via

his Vistage group to handle forthcoming changes that affect his industry. Citing the Vistage Open

Day speakers as inspirational, particularly in making him aware of new trends and their likely impact

before they arrive, he can plan for them and discuss ideas and solutions to potential situations to

ensure he is forearmed and ready for them.

Downward force on prices from clients and competitors, not looking at the whole value of the project and less importance placed on good relationships from buyers

Chris Casey, Director of The Casey Group, an award-winning construction company based in

The demands on Chief Executives and Managing Directors in the construction industry are fundamentally different to those of the past decade. Some new, fresh thinking is needed. And just as the challenges have changed, so have the options for leadership development and support for senior executives in these industries.

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“Our industry is quite insular, so joining Vistage and receiving input from CEOs in other industries, who have similar issues, broadens horizons. It has also improved my work life balance, my personal development and the business’ development.”

Keith BreenGroup Managing Director, Tamdown Group Ltd

“Vistage has given me all important insight into different industries and what is going on in the wider world – and this actually

helped my company to survive the recession.”

Graham MillsChairman, Technics Group

Vistage Case Study | Construction 3

the North West, found that the partnering relationships between clients and suppliers nearly a decade

ago have given way to decision making purely being made on price alone. The Casey Group welcome

competition but not by those operating unsustainably and just forcing the market price down; it leads to a

demotivated team, having to do more, either for the same wage or less. The Casey Group has consistently

invested in their staff, training and motivating them in spite of the tough economic times. However, as a

supplier, Chris feels the opportunity to express the value proposition as well as the service level related

to the delivery of a construction project, is not being given enough consideration. In fact it is even getting

to the point where some providers, including the Casey Group, won’t even tender for a project unless a

service quality element is part of the tender.

Moving to a ‘lean’ culture

Rick Edmondson, CEO of Waterloo Air Products plc, a 100-year old ventilation design, engineering

and manufacturing business puts quality and quality improvement at the heart of their operation.

Consistent durability, reliability and world class values have ensured the business has an enviable

reputation. Waterloo have managed to create a process of manufacturing that enables them to take

people with ordinary skills and ensure they make world class products, thanks to the innovative

engineers who have designed products that can be put together by anyone – essentially automating

a craft skill. This has meant lower labour costs and when more of the manufacturing can be done in

the factory, more money is saved on the construction site; which in turn has meant it is easier to keep

to project budgets and deadlines.

Struggling to recruit the right people at the right price, with fewer skilled people in the

industry as a whole and lack of funding to train new blood

Richard Stevens, Managing Director of Grangewood Builders, a leading New Build and Refurbishment

specialist focused on London’s luxury residential properties, has a reputation for integrity, diligence

and uncompromising quality, yet this hasn’t made it any easier to find and recruit great talent. With

a major business win that required a long term commitment along with the appropriate skilled

team, Richard had to manage a fast track growth plan for the business. With no previous formal

management training or people management, creating an organisation structure for this growth was

a new experience that his Vistage group helped him with, adding their experience of recruiting the

right people to fill the right roles.

Too much to do and not enough time

Graham Mills from Technics Group has managed this consistent issue that affects many industry sectors,

by making members of his team accountable: for their role, their responsibilities and their results, which all

work towards the overarching goal of continuing to grow the business in spite of tough economic times.

Long term strategic planning and turning plans into reality

Again Graham Mills from Technics Group has managed to create reality by making everything

measurable. To identify the starting point and the target, it is only by measuring your progress en

route that you know you’re on track, or not; in which case the Vistage group is there to support and

challenge your strategy adjustments to ensure it is the best for your business.

Finding the right businesses to ‘partner’ with to win projects

It’s important to find the right partner in your own industry sector when working towards

complementary goals, however to have a partner like a Vistage group to support, challenge and

enlighten your thinking is an ideal partner to have when times are so changeable and volatile.

“The construction industry has undergone dramatic change in the way that work is procured from compulsory competitive tendering to ‘partnering’ and collaborative working.The majority of our work is now won on ‘best value’ criteria for a small number of professional clients. Membership of Vistage has enabled me to steer the company through these changing times and remain focused on creating a culture that delivers ‘a better experience for all’. The good company of Vistage peers has kept me on my toes and encouraged me to focus on what is important rather than

working in the business doing what is urgent.”

“Vistage has given me the skills to build a talented, empowered and engaged management team. It has made me realise the power of the brand, specialisation and exclusivity. Vistage has allowed me to double turnover of the business while maintaining margins. I now

work smarter and have a better work life balance.”

Vistage Case Study

Richard Stevens Managing Director, Grangewood Builders Ltd

David Woodhead Managing Director, Robert Woodhead Ltd

Vistage combines the words ‘vista’ and ‘advantage’.Vistage runs peer groups for CEOs/MDs. With a community of over 15,000 members around

the world, Vistage members gain the advantage of a broader outlook and the ability to see more

clearly from the higher ground provided by the experiences and insights of other business leaders,

experts and coaches. Through Vistage, members gain the tools and skills they need to grow their

organisations faster and smarter than before – even in the current climate of uncertainty and austerity.

The last few years have created a new business landscape, with new challenges, new extremes

and new business models that can change the rules of the game. Within this volatile and uncertain

environment, you may not be able to rely on the knowledge, experiences and practices that got you

here. Fresh, new thinking is needed.

Vistage provides a trusted, confidential environment where the latest business thinking can be

applied to your business. In addition, your own answers and actions will be challenged in a way

that is unique to Vistage. So, you and your organisation will prosper in the new business landscape,

supported and developed by the world’s leading CEO organisation.

Increasing the effectiveness and enhancing the lives of Chief Executives and Managing Directors.

It’s what we do n

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If you would like to explore further how Vistage could help you and your organisation, or if you would like to meet Vistage members from your industry, simply call us on 01489 770200 and we’ll arrange for you to talk to your local Vistage Chairman or attend one of our local meetings as our guest.

Why joining a CEO Peer Group provides a proven way forward

Vistage runs CEO/MD peer groups throughout the UK and Ireland. CEOs/MDs from a mix of industries

meet confidentially on a monthly basis to share their challenges and concerns and learn from the latest

business thinking. The peer groups are run by Vistage Group Chairs, who in themselves are seasoned

business leaders but who are also skilled facilitators and executive coaches. Vistage members also

receive confidential monthly 1-2-1 coaching from the Vistage Group Chair. The combination of peer

group meetings, confidential 1-2-1 coaching and workshops from world-class business experts is a

powerful, well-proven formula that is enabling many Chief Executives and Managing Directors in the

Construction sector to come through the changes in their industry and build strong organisations that

are prepared for the future. But don’t just take our word for it n

It’s normal practice for those involved in any industry to join together – in industry associations, best-practice groups and industry conferences. These activities all add value; but they also share a common weakness – ‘group think’. Because the issues and trends at play now need some very new thinking, industry norms are being challenged and brand-new solutions are required; all business owners need to step outside of their industry and look to the experience and learning from others. The CEOs/MDs who combine this ‘external’ view with traditional knowledge of their industry are forging ahead and prospering in this new world.

“Vistage, over the years has helped myself and my business develop and grow. Before we joined Vistage we had no formal planning process in place. Since we have put this in place, thanks to Vistage, the business has increased turnover by 400% over the

last 5 years and profit has nearly trebled.”

Stuart Seddon CEO, Novus Property Solutions

Vistage International (UK) LtdVanbrugh House, Grange Drive,

Hedge End, Hampshire SO30 2AF

Tel: +44 (0)1489 770200Fax: +44 (0)1489 770270

www.vistage.co.uk/construction

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