Mental Models and Building Strong Businesses

The best builders develop a complex 5D mental model of the project.

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This complex 5D mental model is then constantly kept updated. Through thousands of interactions with hundreds of people over years they “nudge” the project from concept through construction completion.

Leadership Tools: Mental Models and Building Construction Businesses

They make lots of mistakes but what keeps the project on-track is that they know what’s not fitting their mental model and they adjust quickly.  They have rigorous processes for managing design revisions, requests for information and a submittal process to ensure they are getting what they really want.  They have many routine meetings, planning and communication rhythms.

Building a construction business is no different; just more complex and (hopefully) continuing on for many decades.  It is critical for leaders at all levels within a contracting business to develop detailed mental models of the business as it operates today and as they want it to operate in the future.  

They must engage people who will challenge every aspect of that mental model just as a building design is challenged to make it better, more cost effective, faster, etc. 

This is where an unbiased but experienced 3rd party facilitator can really add value. 


Learn More:




OpEx (Benchmarks, Trends, Forecasts, and Predictions)
Operational excellence including financing and financial outcomes along with critical internal functions like supply chain, virtual construction (BIM), fabrication, and technology.
Problem-Resolution Cost Pyramid - Earlier is Always Better
An easy way to visualize the cost of problem resolution at different stages of construction is with this pyramid. The cost of the problem is the cost of the problem (1X). Finding it ahead of time minimizes the costs and maximizes customer satisfaction.
Cash Flow Myth 4 - That's What Our Bank and Credit Line are For
Fact: Banks will only finance a portion of your cash flow needs. They will have specific requirements related to how much working capital you need to have invested of your own.