Implementing strategic management is a constant challenge in all types of organizations. Each sector and market niche faces its own challenges related to its specific characteristics. Stratec interviewed two construction industry professionals to share the challenges and advantages of using strategic management in their field.
Strategic management is the set of strategic decisions that determine a corporation's long-term performance. This type of management includes in-depth analysis of the internal and external environments, strategy formulation, strategy implementation, evaluation, and control. Something that is essential today, given the changes and transformations the market has been undergoing with the growth of competitiveness. Several organizations see the need to implement strategic management in their routines as an opportunity to stand out.
It would be no different in construction, a market always present and solid in our history and constantly expanding. While opportunities for this sector grow, so does competitiveness, leading to the adoption of strategic management practices.
“The value of strategic management for us, in the civil construction industry, is to add competitive advantage, which helps make us unique in the market in which we operate,” replied Alípio, a civil engineer, with a postgraduate degree in Business Management and Director of Strategic Affairs at ARELANO.
Strategic management is widely used in organizations that typically operate through processes. However, the civil construction sector mostly uses project management methods, making the implementation challenge even greater.
When asked about strategic management methodologies adapted to project management, Jorge Secaf, a civil engineer with a postgraduate degree in production engineering, a specialist in management, and Director of Operations at TARJAB, explains that each new civil construction venture (project) is different, occurs in a different location, and targets a different audience. He states that at both the level of corporate projects and strategic initiatives, as traditionally known in process-oriented sectors, the issue remains the same: plan, monitor, and correct course to achieve objectives.
Despite all the challenges, strategic management methodologies support both process management and project management. All that is needed is flexibility from the professional and a good understanding of project needs to make the necessary adaptations according to the characteristics of each project.
Alípio also draws our attention to another difficulty in this sector: the creation of indicators, quantifiable parameters to measure its work. According to him, strategic management collaborates precisely to ask the right questions to define these measurable indicators.
Another point of difficulty in the sector is ensuring clarity of thought among all those involved in projects, both those on the construction site, as well as engineers and administrative staff. Because they possess distinct skills and ways of working, they have difficulty aligning their work, thus making it harder to ensure this uniqueness of direction. It is at this point that strategic management comes in for aligning thought and defining unique and strategic goals to be followed by all involved in the project. Attention also needs to be dedicated to communication.
Jorge explains better: “The engineer, by training, is very technically capable. The builder, specifically, has a strong appreciation for the work they produce. In my view, these issues lead to a feeling of power, of capability, which can, for example, lead to the decision to “make” instead of “buy.” We know that in strategic management, the main issue is executing what was planned, monitoring plans and initiatives, which compete for time dedication with construction projects themselves.”
The importance of strategic management in construction is concluded, especially when considering: the need for competitive advantage, the characteristics of the stakeholders involved, the uniqueness of direction, and the creation of success indicators.
Both interviewees are Stratec clients and use the Strategic Management Module in their work. For them, the automation of strategy facilitates its implementation, as Jorge puts it, “Having a model, a ready-made structure to support the work, is very helpful.”.
In the reality of civil engineering, there is also the PBQP-H (Brazilian Program for Quality and Productivity in Housing), which is an instrument created by the Brazilian government in pursuit of improving housing in Brazil and modernizing the construction industry. It functions as a certification system, similar to ISO. It has certain principles that lead civil construction organizations to adapt their processes and operations following rules that require a certain standard of quality for the work of civil construction companies in the country.
