Coaching of a Business Owner

Introduction

A business owner has several time expressed difficulties of his business performance. He is a civil engineering contractor, started several years ago single-handedly, presently having 7 permanent staff, with average 50 contract workers, depending on contract work volume. The following is a record of the 1st coaching session.

S.O.W.T analysis on Business Environment by the business Owner

• S1 Good relationship established with some business sector for rather constant contract work volume
• S2 Many business (contract) opportunity from diversified types of clients, as core-competence in civil engineering can generally be applied.

• W1 Missed opportunity in new contract work due to lack of connection with influential people and information
• W2 Being made use of by others as middle men for bill of quantity and pricing work, but not actually having chance to get involved in actual contract
• W3 The business licence too small, hence can't large contract work
• W4 Some clients have preferential policy
• W5 Not Diversified
• W6 Not ready for sudden change in policy of clients
• W7 Very competitive pricing, hence little profit margin, some losses also
• W8 Many bidding opportunities, but lack of qualified professional, except himself
• W9 Now present economic difficulties

S.O.W.T analysis on Business Organisation by the business Owner

• S1 Over years has built up sufficient resources, capital, reputation, facilities, equipment, banking facilities to tackle present type of workload.
• S2 Not trying to be too aggressive and over-commit in business
• S3 Successful work in mobile office contract creates good reputation and generate some more business
• S4 Proper office
• S5 Brothers and relative in similar business field, hence can support and help each other
• S6 Consider operating system like accounting, records, documentation, communication, tender pricing, etc. OK.
• S7 Bidding performance : Invited tender = 20%, Open tender = 5 %

• W1 No constant and regular contract volume to support extra quality and qualified engineers
• W2 Present limited resources and lack of top class contract performance prevent organisation being considered as top class and reliable by clients, hence no constant and regular contract volume.
• W3 Lack of capital to tackle large contract work.
• W4 Lack of more P.R. (Public Relation) (reputation) for large business sectors.
• W5 Productivity and wastage problem in contract work due to lack of quality work by field supervisors
• W6 Sub-contractors not reliable, having too many fragments work, hence no priority given (whereas successful big contractors have dedicated and reliable sub-contractors)
• W7 Contract work cycle time too long, delay, wastage and less profit, sometime loss
• W8 Staff productivity : Field staff = 70%, Office staff = 85 %
• W9 Field supervisors may not be familiar with all diversified areas of civil engineering works, except a few

S.O.W.T. Self-analysis of the business Owner

• S1 Good knowledge in civil engineering
• S2 12 years of solid experience
• S3 Hardworking
• S4 Humble and honest
• S5 Planning and Implementation of contract work considered under good control.

• W1 Only person involve in tender pricing, on top of many others things to manage, can't do a quality job and full concentration.
• W2 Have to involve in every management, supervision aspects, as staff not taking initiatives or don't know what to do.
• W3 As the only spokeman and decision maker of the company, get pulled by many different clients over contract work.

Business Learning for Effective Action

From the above perceptions and opinions of the business owner, this coach used system audit techniques to verify and demonstrate some of above Strength and Weakness. From the revelation of the actual evidence (e.g. contract file, records, document, etc.), and further discussion, the business owners realised the following important learning:

• 1.0 Understanding of own Business operation from global perspective, to own organisation and eventual to self. (see above S.W.O.T. stages)
• 2.0 There is lack of use of appropriate management tools for Planning, Implementation of contract work to produce effective results (e.g. Tools for planning, budgeting, implementation control / monitoring, corrective and preventive action, analysis ...)
• 3.0 There is no management tool used for better visualisation of actual overall business performance for further control and necessary intervention.
• 4.0 There is little and no effective use of computer
• 5.0 Realise that staff productivity can be improved if owner be a good coach.
• 6.0 Good coaching of work process and knowledge to staff can spare owner more precious time to tackle bigger business.
• 7.0 Understanding of the vicious circle that continuously pull down the business performance : - Lack of resources, i.e. one-man show, doing everything, affect quality of work, affect business performance, reduces confidence from clients, less and less contract work or have to keep lowering the contract price to win, further reduces resources to perform quality work, more delay, wastage and repetitive work ...... There is no guarantee that by investing in extra engineers will turn the situation around if the fundamental operating system is not improved, and no effective coaching / training carried out by the owner himself.
• 8.0 Realise that staff incompetence can be a reflection of owner not using correct techniques in coaching and training.

  The owner decides to carry out some improvement work, based on the above, and later invites the undersigned for another coaching session.

End.