Increasing construction productivity with the right leadership and culture

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Over the past few decades, the Australian construction sector has faced a remarkable trend. Despite advances in technology and practices, productivity levels remain below those witnessed in the 1990s. Kerrie Adaway, CEO of Lysander, outlines how installing the right leadership and culture can help rejuvenate productivity levels.

According to the Productivity Commission, Australia’s construction industry’s productivity growth over the past 20 years has been below the national average. This is a worrying trend.

Marshall Goldsmith [an esteemed leadership guru] often emphasized the paradox of leadership success. He believes that the very qualities that once propelled a leader or organization to success can sometimes become obstacles in a changing environment.

Increasing construction productivity with the right leadership and culture

In “What Got You Here Won’t Get You There,” Goldsmith describes how many successful people/organizations become blinded by their past victories. Their key, Goldsmith argues, is to move on from past successes and continually build winning, future-oriented strategies.

In the construction sector, it is not just about rethinking old strategies, but proactively anticipating and adapting to new challenges. The industry needs to break with the status quo, embrace change and seize opportunities to create a more productive, inclusive and progressive industry.

In 2024, the Construction Industry Culture Taskforce, supported by the Australian Association of Structural Engineers, the New South Wales and Victorian governments and leading workplace researchers, is set to introduce new cultural standards through the Culture in Construction initiative. These standards aim to address fundamental industry challenges and lay the foundation for a more productive, inclusive and progressive construction environment.

Establishing these standards is not just about compliance; it is the start of a transformational era for the Australian construction industry. Businesses and leaders who adapt early to these new standards are not only future-proofing their operations, but actively contributing to reversing the trend of declining productivity.

At Lysander, we strongly believe that the upcoming cultural standards are a big step forward for the construction industry. They provide a clear blueprint for how the industry can create a more collaborative, innovative and high performing industry.

What is expected of leaders?

But what does this mean for leaders in the construction industry? Here, albeit briefly, Goldsmith’s insights come into play. Leaders need to raise their self-awareness, challenge long-held beliefs, and welcome this cultural shift with open arms. An evolving environment requires dynamic leadership that recognizes today’s challenges while preparing for tomorrow’s challenges.

Key takeaways from Goldsmith’s book include:

  • Success at one level does not guarantee success at the next
  • Some habits that were helpful in the past may be harmful now
  • There are 20 common bad habits such as not listening, interrupting and not admitting mistakes
  • Knowing yourself and working to change negative behavior is essential
  • Ways to better understand yourself include seeking feedback and analyzing personal strengths and weaknesses
  • Taking responsibility for your actions and actively seeking change is vital
  • It’s important to give feedback in a kind and helpful way
  • Keeping a positive attitude and always wanting to learn is essential
  • There are tools and methods to help identify and correct bad habits
  • Continuous self-improvement and dedication to learning is necessary to move up and succeed.

As Australia’s construction industry grapples with productivity concerns, upcoming cultural standards offer a beacon of hope. It is an opportunity to reset, realign and rebuild an industry that is poised for innovation, growth and unprecedented success. With the right leadership and culture, the future of the Australian construction industry is bright.

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