Laws Control the Lesser Man

Growing construction businesses need processes and accountability systems the same way society needs laws, police, courts and jails.

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You can also never create enough laws or prisons to correct an underlying lack of strong values and shared mission.

Quote: Laws control the lesser man, right conduct controls the greater one. Mark Twain.

As a contractor starts growing leadership needs to put some processes in place to keep things running smooth.  This is called enabling bureaucracy because it is the standardized set of rules that allow sustainable growth. As a contractor grows past about 150 people or starts to expand geographically there will likely be a point where too much process starts to creep into the business.  This is considered coercive or stifling bureaucracy.  

Leaders must always be working on the balance between aligned mission, culture or behavioral norms, processes and accountability systems.  

If you find yourself and others pulling heavily on the process and accountability lever with diminishing returns the likely problem is lack of balance with people and their behavior. 


Learn More:

Compliance Will Only Take Safety So Far

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Valuation Math - Multiple of Earnings
In a valuation, you will often hear the term multiple of earnings. This is usually calculated based on some average of the last 3-5 years earnings and weighted toward the more current years.
Definition - Business Development (BizDev)
The process of creating new business opportunities through targeted networking, education, and awareness-building activities.
Bureaucracy - Stifling or Enabling
Talent density versus the complexity of the construction business or project is what determines the level of bureaucracy required for sustainable growth.