Even without a changing dynamic such as sustainability, only a relatively small percentage of companies and firms, regardless of size or experience, will enjoy a high level of success, while many others will have a difficult time adapting and some will eventually fail. This is as true for business organizations with over 200 employees as it is for those with less than five.

There is another dynamic to consider when discussing firms and organizations within the land development industry. Many are created and then managed by individuals who were educated in technical disciplines like architecture, construction, engineering, and surveying with very little emphasis or background in business management.

Creating and managing a successful company requires much more than industry knowledge and technical education, yet, in many cases these are the two legs on which the foundation of most land development organizations attempt to be built. As we all know, a two-legged table will not support much – if anything. There are some complex characteristics and factors that must be considered and used to build the rest of the supporting structure for any land development organization.

Six components need to be factored into an individual’s or organization’s plan to move toward the creation of a sustainable company:

• Move from Project Management to Business Management

• Define an Organizational Vision

• Staff for the Future

• Work with Real Money

• Leadership & Influence

• Confront Challenges

Make the Paradigm Shift From Project to Business Management
Changing the mindset and company approach from a “project basis” to a “business basis” is the first step and often the biggest and most difficult to make.

It requires a realization, or acknowledgement, that the model of the business is changing. No longer will the organization make decisions based upon the needs of a project or what needs to be done to win a project, but that the direction of the company, including expenditures, are going to determined based upon the long-term interests of the organization. This change requires a couple of key things, introspection and communication.

An organizations’ leadership must work on staff communication to gain acceptance. In addition, an exploration of the organizations’ strengths and weaknesses should be determined. Equally important, the financial impact of making a change in this direction must be determined.

While this concept seems extreme to some, it should be realized that there are definitive differences between entrepreneurial start-ups and companies with 25 years of experience in the industry. Ultimately, it comes down to which organizations planned for the future and which were focused solely on surviving in the short-term.

The use of financial resources is a difficult decision that is often done without proper planning. Organizations must prepare capital and operating budgets that move from high margins to reinvesting in the future. This includes following a long-term investment strategy instead of the immediate cash rewards of short-term pillage!

One piece of advice heard among growing land development organizations is to “get the technology that is a little too big for where you are now” so that you can grow into it. Not only does it motivate the leadership to prove that the decision wasn’t a wrong one, it also illustrates a commitment for the future and confidence in the staff and organization.

A key ingredient, as mentioned, is communication with staff and co-workers. Include them in the strategic planning. Document decisions and deliver the message to everyone and then repeat the message and follow your words with action that matches your message.

What is Your Organizational Vision?
A few decades ago, developing a mission statement was the corporate “in” thing to do. However, the typical result was an idealistic string of words or sentences that sounded good, but meant very little to the organization or its future.

Before leaders in an organization can develop a “vision” for their organization, a thorough and objective investigation of their company and their market needs to be conducted – old fashioned “market research.”

What differentiates your organization from others? What is the situation in your market? Competitors? What are your strengths and weaknesses, as well as your competitors? What is the markets’ perception of your business and organization? Where do you want to go as an organization? Is it realistic?

Regardless of the answers that materialize, you will need to test your ideas for breadth and strength. When an organization and its leadership finally determines its corporate vision it must realize that the entire exercise of “vision creation” is to guide the organization to accomplishing the vision’s stated goal.

Your Staff of the Future
As your organizational transformation plan begins to come together, determining how to accomplish the vision you are establishing starts becoming a reality. The reality is that you are creating a “new” company. Therefore, you need to know yourself and the makeup of your leadership team.

Are you an idea person, a builder, or a sustainer? Are you gutsy enough to hire someone entirely different from yourself? Can you accept that a diversity of perspective drives new ideas?

Leaders lead and they should keep their cool when emotions and issues get hot. Here are a few additional suggestions: let systems follow, not lead; delegate minutiae; and, if you do not prepare for your opportunity, it will not be your opportunity.

Another string of key decisions revolves around staffing and outsourcing. Do you need human resource professionals, attorneys, accountants, information techs, payroll administrators, and marketing personnel all on staff? How much time and resources do you spend in areas of your business that are not part of your core mission that can be done by others more efficiently?

Ironically, outsourcing some components of your operations can result in your ability to better compensate those that provide the real value to your firm in its attempt to achieve its vision.

Working with Real Money
Many business plans and visions contain financial projections fraught with pie-in-the-sky optimism, or with little substantiation, or without the consideration of contingencies, or even a realistic possibility of the risks involved with the projections.

One important concept to be understood is that there is usually a direct correlation between risks and rewards. For instance, there is a cost above and beyond the real “cost” of obtaining cheap money. In addition, if you are not managing your firm’s reputation, you are risking it.

Establish financial targets with benchmarks, budgets, ratios, trends, and cash flow. Is it easy or simple? No. But it certainly can be a calming assurance and allow for less sleepless nights when you know where you stand based upon where you are going.

Some value-added services you can provide to your clients will enhance your standing with them while costing you virtually nothing. How? Create partnerships with other firms, businesses, and leaders that will result in win-win situations.

Likewise, work through tax planning and other “nightmares” before they occur and develop an action plan for situations that are likely to manifest. Know your areas of concern, find a partner to assist you, and deal with them in a timely fashion rather than letting them develop, fester, and explode.

Leading a Sustainable Firm
As stated earlier, many architects, engineers, and other professionals are not suited, either by personality type or education, to lead or manage a land development organization. Therefore, be prepared to leap out of the way if you are not the best person to carry the message to your staff. Leading sometimes means getting out of the way.

When decisions are made, set expectations and put consequences into the action steps. Remember that a vision or message is only effective when it is acted upon. In most instances, a targeted message can push a firm ahead of it’s competitors. SLDT