Jul 2, 2019
According to a recent Bloomberg article: “Last year was a tough one for the Swedish construction giant, with operating income hit by project writedowns, goodwill impairments and restructuring charges totaling 3.1 billion kronor ($327 million).”
To put it another way, they took on projects that they couldn’t execute profitably. This damaged their reputation, and caused them to take a hard look at themselves and make some changes.
What can you learn from the failures of one of the world’s oldest, largest and most successful construction companies?
Picking the high-quality people, using excellent processes, to build the right projects safely, efficiently, with high quality.
Take time to evaluate your “sweet spot”
Step 1: Define the Criteria
List all of the criteria that, from your perspective, define the "right client", "right job" and "right location"
Step 2: Rank the Criteria
Rank by importance to the success of your company. 1 is low, 10 is high.
Step 3: Score the Criteria
Use any number between 1 and 10. 1 is low. 10 is high.
Here’s a tool to help you: www.ericanderton.com/sweetspot
Click on the link and download the tool. Use it to define “right project, right client, right location”.
This will help you avoid the mistakes Skanska made, and ensure long-term success and profit.