The principles of
Jim Frith, Director of McConnell
Dowell and IPLOCA Director, East &
Far East,
discusses how to manage a
healthy construction company through
the ups and downs of a business cycle.
T
he construction industry is renowned for its cycles; one minute we are searching for work to keep
our people challenged, the next we are searching for skilled people to deliver the volume of work
on offer. ‘Feast or famine’ is a commonly used phrase.
In a growth phase, an organisation’s culture will be tested by the pressure of expansion and can
become fractured. In a shrinking market, with its job insecurity and uncertainty, a company may experience
instability, loss of skills and morale. In both these scenarios, the performance of an organisation (financial,
quality, safety, etc.) will suffer.
A successful business is one that is able to mitigate the negative effects of change using its own unique
strategies and attributes. These may include a balanced portfolio approach utilising geographic and/or
WORKPLACE
PROSPERITY
Figure 1.
Value compass.
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