Success defined

The works of Arslan and Kivrak (2009), Mahmood and Shahruhk (2012), Warner et al, (2008), and Hutchings and Christofferson (1999) with regards to success in the construction industry are very exhaustive, and similar, although, with different results giving their different contexts. The list produced by Arslan and Kivrak included project objectives such as; scheduling and low overheads, that combine with organisational objectives to achieve overall corporate success. However, when executives are asked how they define success for their own firms, it is unlikely that detailed on-the-job factors, like scheduling, will come up (Warner et al, 2008). Rather, definitions would most likely contain terms that capture the ‘vision’ of the organization.

There are many definitions of success. Traditionally, it is defined as “the degree to which goals and expectations are met” (Arslan and Kivrak, 2009). In the construction industry,

the traditional approach to success is to focus on the ability to plan and execute projects within budget, in time, and in the expected quality (Abraham, 2003). On the other hand, a more contemporal definition of success in the construction industry is that by Warner et al. (2009). Warner and his colleagues defined contractor success using five different success profiles: humanist, generalist, tactician, bottom-liner, and freewheeler. These five different definitions of success were based on six common success themes (factors) they found in their study. These themes are: profit and wealth, improving people and their lives, sense of presence and reputation, survival and sustainability, progress on mission and preparation for the future, and project execution.

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Survival and sustainability involves building a sustainable legacy and leadership over

generations (Warner et al., 2008). This has an element of brand creation, reputation, innovation, value creation, and leadership continuity. That said, survival also means remaining profitable. According to Stone (2012), for a construction company to achieve long-term sustainability and growth, it has to be profitable and must remain in business in order for its continuity plan to exist. Sustainability on the other hand requires foresightedness. A foresighted company grooms the next generation of employees to lead the company in the future. It has been asserted by Collins (2001) that when management fails to bring up the next generation to properly succeed and move the company forward, when the leadership departs, the firm is more often than not thrown into chaos because of the absence of capable minds. Grooming and training subordinates are major responsibilities of a good manager (Ng, 2011). Ng points out correctly that the boss’ exit is inevitable and when this happens, it is hoped that the successor has the right training to effectively run the office. If the transition does not execute well, things could fall apart and would be a bad reflection on the boss. Worse still, is if an outsider is brought-in to fill the vacancy. He/she might have a different agenda that could lead to dismantling everything the predecessor built. Thus, destroying the legacy.

Improving people and their lives, as the name implies is generally about people.

Construction is known generally as a “people business” (Stone, 2012; Netscher, 2014). If a contractor wants to be successful in this industry, it is imperative he/she learns to build relationships with the clients, employees, subcontractors and the community they are operating in (Warner et al., 2008). Such relationships should be based on honesty, integrity and the right attitude – an attitude that says to the customer “you are my priority” (Stone, 2012). When a company focuses on systems rather than services, and when customers become secondary to company rules and paperwork, then it is almost inevitable that that business would begin to decline. But when companies understand that the most valuable assets of any organisation are its employees, it would be pragmatic (Mahmood and Shahruhk, 2002; Brown, 2013). For example, successful companies offer training programs and actions that build customer and employee loyalty (Warner et al., 2008).

Profit and Wealth factor emphasizes the need for profit-maximization and the creation of

29 (2010) financial problems faced by contractors are due to low profit margins from projects. Stone (2012) states briskly that unless and until a construction firm sustain a minimum of 8 per cent net profit, it will, more often than not, go out of business. Several researches in the construction industry also attest to the fact that there is unwavering believe that “profit is king”. This is because of the industry is heavily dependent on cash flow and without it; the business fails (Stone, 2012).

Sense of presence and reputation

This involves buildings high-profile projects that earn the respect of clients and contractors alike. Also, amongst these, having a rapid revenue growth is another way some contractors measure success (Warner et al, 2008). This is a sales and marketing issue and is ranked most important amongst factors of sales and marketing in the works of Arslan and Kivrak (2009).

Progress on mission and preparation for the future

This reflects the importance of having a defined mission and working effectively to accomplish that mission. It involves effective planning and management of resources and coordinating the efforts of motivated employees with the aim of achieving company goals and objectives (Mahmood and Shahruhk, 2012).

Project execution

Contractors who rank this factor as most important focus on project success and creation of successful work processes. They are more likely to focus on the usual generic project objectives; time cost, scope and quality when defining success.

According to Warner et al. (2009), although, all six factors play a role in definition of success for contractors, some were found to be more important than others to different contractors, which inherently formed their success profiles. Consequently, the humanist contractor who defines success as building strong relationships with customers, employees and community, would place more priority on improving people and their lives; while the tactician contractor who defines success primarily from project and process success, would place more emphasis of project execution. The freewheeler contractor who defines success as an appropriate responses to changing opportunities, times or market situations, would

30 emphasize a sense of presence and reputation; while the bottom-liner who is all about financial results would place priority of profit and building of wealth. The generalist contractor who balances all six factors says Warner et al. (2009) and as such would place more priority on survival and sustainability. While the traditional definition of success is still relevant (Arslan and Kivrak, 2009; Abraham, 2003), it is Warner’s definitions that capture all of the aspects that contractors adopt when defining success for their companies.

However, the changing business environment has made it crucial to focus on corporate success in order to be competitive in the market today. As construction is a risky business and the possibility of business failure always exists, companies have to consider the parameters that can have a direct effect to their success in business (Arslan and Kivrak, 2009).