Where are tomorrows leaders? There aren't any.
What are companies doing about it? Not a lot.
Executive recruiter Whitehead Mann interviewed 28 chairmen, CEOs and board directors from major construction companies. There was a consensus among the interviewees that their businesses were going to change from asset-based to service-focused in the next 10 years and that the people to oversee this were not there.
Three-quarters saw their business model changing in the next decade and 94% believed that there was a dearth of talent coming through. "The industry has been focusing on reducing risk by making supply chains more effective but fails to see that the biggest risk facing it is lack of leaders in 10 years time," says Lynne Nixon, who heads up Whitehead Mann's construction and support services practice.
The report suggests that the industry should work at bringing in a better calibre of person at graduate and executive level. Nixon thinks high-flyers from industries such as manufacturing could work well in construction.
Both David Fison, Skanska's CEO, and Sisk's managing director Pierce O'Shea agree broadly with the findings, although both hold that the talent is there - they just need to find a way to develop it.
Fison says Skanska has been bringing in people from client organisations such as healthcare to serve those sectors better. As for poaching executives from other sectors, he is less sure: "If you want to shape the industry, you have to understand it."
O'Shea recognises the need for change: "It's wrong to think that the next board is going to be like the current board. We have got to accept it's going to be different."
Both Skanska and Sisk have introduced leadership training for middle managers but they are (just) in the minority: 46% surveyed had such programmes.
But back to the problem of attracting good people. There is agreement that the industry has an image problem. This is borne out by a second part of the report, which interviewed executives from other sectors who came out with all the usual negative stuff.
Fison, who attended a launch dinner for the report with 23 other execs, said he was shocked by the attitude of some there. "I was amazed how many people seemed to accept that this was the situation but that it was OK. Unless we attract good people into the industry who think differently and are willing to push the boundaries, in 25 years' time we will be facing the same problem again."
Source
Construction Manager
Postscript
Building Leadership is available free of charge from Lynne Nixon or Paul Turner of Whitehead Mann. Email lynne.nixon@wmann.com or paul.turner@wmann.com
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