Construction business strategy

Construction industry is cyclical as it highly depends on investment cycles in the economy. This is why it is always badly hit by recession.

Serbia’s construction industry has never recovered from the last recession. Even though the economy is picking up at 2,5% – 3% pace and there is an increasing number of infrastructure projects in the country (local companies are subcontracting to foreigners) the situation in local construction industry is still critical. There are many reasons for that but, besides lack of work and inability to provide financial guaranties, local businesses lack construction management skills to deliver on time and within budget. A hidden reason why foreign companies get tender awards. Sooner the local construction boards understand and action this, the better for Serbian economy.


Only the most skilled businesses will survive i.e. those who will be able to implement newest techniques and build creative solutions based on true original ideas. Therefore knowledge management becomes one of key factors in construction competitiveness. Companies must play the market game and participate (at least) at regional level. Times when construction work was awarded on a “social need” basis rather than company’s competitiveness are hopefully gone. Not to mention very loose performance criteria applied in the past by state engineers over contractor during execution.

Read my white paper “Strategizing a construction firm” and learn how to build a professional pyramid and matrix organisational structure in your company, design a balanced business model, design and implement specific industry value chain and construct Norton & Kaplan’s balanced scorecard. All with original diagrams purposely created for construction industry.

During my career I worked for and with large (blue chip) construction companies in sub – Saharan Africa and the Balkans for almost two decades. This is an extract from my experience. You will find solutions that work in real companies.



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