Monthly Archives: March 2017
Posted on March 22, 2017 by FMI CorporationAcquisitions have always been a means to maximize value and create a sustainable competitive advantage for engineering and construction (E&C) firms. However, acquisitions of any size are a major undertaking for both the acquirer and the target. Substantial financial returns are required not only to create stockholder value, but also to justify the enormous investment of managerial time and effort that goes into a takeover. A handful of E&C firms have been active and masterful acquirers; putting these firms aside, acquisition results for the masses have been mixed. Often, the rationale is flawed, or the post-acquisition strategy ill-executed in cases where the strategic relationship does not last. Acquisition fever, failure to recognize the costs of an acquisition, or a flawed understanding of the target company has derailed many plans for expansion. Within the E&C industry, acquisitions are a vital driver of competition and growth among varied players. However, the post-acquisition strategy of each can differ significantly. At one end of the spectrum, the parent company allows the acquired firm to operate entirely as an independent subsidiary – we term these ‘operators.’ At the opposite end, the parent company works to fully integrate the culture and processes of the acquired firm into their own, effectively expanding the parent company – typically known as an ‘integrator.’ While either strategy will work, it is important to note that successful acquirers make a very conscious decision about where their strategy falls on the operator-integrator spectrum. They are successful acquirers because they have a defined acquisition integration strategy.
This post was posted in Investment Banking and was tagged with Mergers and Acquisitions, Acquisition search best practices, construction, NRCI 2014 Q2, engineering blog, construction blog, construction acquisitions, acquisition construction industry
Posted on March 15, 2017 by FMI CorporationToday’s global engineering and construction (E&C) industry is changing rapidly. Barriers to global trade have been reduced significantly, enabling capital, labor, goods and technology to flow freely across borders. This has increased business opportunities exponentially across the globe. However, globalization has also vastly increased the complexity of the E&C business environment. Changing customer demands and new funding mechanisms are driving industry players to diversify and seek mergers and acquisitions in new markets around the world to gain access to new expertise and project opportunities. This new global context presents unique leadership development challenges for companies in the construction and engineering fields. Grooming leaders who can look beyond traditional, domestic borders and adopt a global mindset takes time and requires an entirely new learning approach.
This post was posted in Center for Strategic Leadership, Talent Development and was tagged with Global leadership, globalization, Operational excellence, construction blog, construction global, global construction
Posted on March 8, 2017 by FMI CorporationThey say that construction and engineering are male-dominated fields, but is that really the whole story? To answer that question, we believe that leaders must look well beyond counts of employees from different demographic groups and gain holistic views of their organizations. For example, diversity metrics include measures that capture the characteristics of the workforce (e.g., the percentage of the workforce that is female). And while race and gender are the two demographic characteristics most focused on in the workplace, diversity is defined as the differences and similarities that include, for example, individual and organizational characteristics, values, beliefs, experiences and backgrounds. Put simply, not all demographic characteristics are federally-protected classes, but states, municipalities and organizations may choose to protect a broader set of demographics.
This post was posted in Consulting, Center for Strategic Leadership and was tagged with engineering blog, construction blog, women in construction, diversity construction, inclusion construction, international women's day, women construction, women engineering
Posted on March 1, 2017 by FMI CorporationMuch has been written about millennials and how they differ from previous generations in their approach to work – and careers in general. Indeed, we see millennials often unfairly saddled with the dubious reputation for being entitled, disloyal, self-centered or optimistic go-getters, but it turns out that they are actually not that different from their older work colleagues. In fact, in our recent study “Millennials in Construction: Learning to Engage a New Workforce,” we found that millennials are indeed very dedicated and loyal to their companies and want to do more than just punch a clock and take home a paycheck. They are looking to add value, make an impact and find meaning in what they are doing. Company leaders can leverage these realities by ensuring that their young talent has a clear sense of purpose and an understanding of their roles within the larger plan. According to our findings, when the company’s vision is inspiring and clearly communicated, millennials are 25% more likely to stay longer with the company compared to those who don’t understand the company’s vision and direction.
This post was posted in Talent Development and was tagged with construction industry blog, Attracting people to construction, employee retention, FMI Management Consulting, Human Resources, oil and gas market strategy, engineering blog, construction blog, millennials in construction