Business Operations: Driving ‘Invisible’ Value

Business operations may not come to mind when people think about delivering value to clients. This sometimes “invisible” collection of functions essential to running a construction business is an often-overlooked source of value. As my workplace, REDCOM Design & Construction, has grown into a larger, more diversified business, its business operations function — including HR, IT, risk management and accounting — has grown and evolved to support the business and its clients. Below is a view of one company’s journey from small firm to a larger organization focused on efficient, forward-looking operations.

Human Resources

Fourteen years ago, REDCOM essentially had no dedicated HR infrastructure. As the firm grew, company leaders recognized the need to develop and implement standards, processes and procedures and began to invest in this function. The new head of HR worked with a structured leadership team to draft internal standards and establish company training programs and oversight. The clear standards and training ensured that every team — from design to construction — worked to the same high level of quality and accountability. This consistent delivery benefited clients, and managers became engaged stakeholders in the HR processes.

The next foundational step was implementing a human resources information and payroll system. The goal of the system was to bring greater self-sufficiency to employees, enhance recordkeeping and Employee Retirement and Income Security Act (ERISA) and Department of Labor (DOL) compliance, and manage payroll in-house. Given the dispersed nature of employees across a central office and multiple jobsites, the platform needed to provide a central hub of HR-related information and services.

Post-implementation, the platform has made HR administration more efficient, streamlined the preparation of payroll and simplified routine employee requests (such as time off). The platform has also freed HR staff to focus on company culture and employee engagement versus primarily administration and has enabled employees to more quickly execute tasks.

Hiring & Retention

Hiring and retaining skilled, motivated people is a key factor in our — and any company’s — success. The HR team has continued to focus on this area and to evolve REDCOM’s approach to attracting and retaining experienced talent. Programs that have proved effective include:

• Work-life balance and wellness programs, a competitive health benefits package, an employee assistance program and a retirement plan. We also offer employees one “flex day” per week, enabling the employee to work four days per week and be on call as needed the fifth, workload permitting.
• Structured onboarding process for new employees that includes a comprehensive day of meetings with the leaders of REDCOM’s functional areas. Each department leader explains the contribution of their team, allowing new employees to understand the life cycle of a project and how they support a project’s success.  
• Comprehensive in-house internship program, an extension of a forward-thinking talent management strategy. By cultivating emerging professionals within a structured, mentorship-driven environment, my company can build a pipeline of skilled, culturally aligned talent who are already familiar with company standards, workflows and client expectations.

Anchoring these programs is an organizational structure that provides a strong operational backbone with clearly defined roles and expectations. As the business continues to evolve, the leadership team continually assesses the areas of expertise needed to execute complex projects across segments while maintaining consistency and reliability.

Risk Management

At REDCOM, general risk management falls under the business operations umbrella. Risk management and legal oversight proactively identify issues before they become costly disputes and help protect an owner’s investment by reducing risk and preventing claims. REDCOM has developed risk management practices that include:

• Internal processes that continuously monitor contracts, compliance requirements and project exposure to prevent issues before they impact a project’s timeline or budget.
• Active management of contracts, documentation and regulatory requirements avoid legal or paperwork-related delays and keep projects moving forward.
• Corporate insurance programs structured to fully support the scale and complexity of each project, reducing exposure and providing assurance to clients that they are working with a well-protected partner. REDCOM discusses individual policies as needed with clients to ensure that the policy makes sense for the situation.
• Organized, accessible records that protect clients in case of questions, audits or disputes.

IT & Tech Infrastructure

REDCOM’s IT infrastructure has evolved in phases and includes multiple systems to support real-time communication, project-tracking and document management. The systems ensure that project data, drawings and communications are protected and accessible, reducing the risk of data loss, security breaches or miscommunication. Established backup systems and contingency planning keep clients’ projects moving, even during unexpected disruptions.

The company adopted an incremental approach to building out its technology infrastructure. Systems were implemented gradually to give functional leaders time to train teams and to adjust to new ways of working before further areas for operational improvement were addressed. This pragmatic, iterative process helped balance the impact of a systems implementation to management time with the attention needed for other priorities.

As the company grew, it also implemented a customer relationship management (CRM) and a construction project management system. The CRM system retains customer and account contact information and is largely used for pipeline tracking, reporting and client/prospect outreach. The construction project management platform replaced manual spreadsheets, the prior mode of management. The platform provides a single point of project information and updates and serves as a communications hub that is also accessed by clients, giving owners real-time project updates and greater transparency.

After the construction project management platform was up and running smoothly for several years, REDCOM implemented a new accounting platform and linked the construction management platform to it. While this integration was not without its challenges, it has streamlined the invoicing and payment process for subcontractors and enabled easy tracking of project budgets. The integration between the two systems has enabled better internal reporting, including cleaner project and cash flow forecasting. Project managers can stay on top of project financials and communicate them clearly to company leadership.

Evolving our IT infrastructure continues to be a work in progress. REDCOM recently created a systems operations task force charged with looking at the cross-functional integration of REDCOM’s existing systems so that teams do not operate in siloes. The task force’s objective is to make sure that teams are collaborating efficiently and not spending time on processes that existing systems can streamline, such as managing preconstruction deadlines and tasks. A streamlined project process and even closer collaboration will support the delivery of the best building possible at the optimum cost and time frame.

The business operations team’s focus on technology also extends to the employee level, giving individuals the tools they need to keep projects moving forward. All employees are equipped to work remotely from jobsites and have the tools needed to execute their roles, including the ability to make updates, tackle last-minute design changes and print jobsite plans. Advanced software provides rendering and 3D modeling so associates and clients can visualize a building in a way that inspires confidence in design decisions.

Investing in business operations, from hiring and retention programs, IT initiatives and risk management, has enabled growth and increased efficiency at REDCOM. The ongoing commitment to a strong foundation, supported by the willingness to examine business processes and embrace change, is generating value for the company and its clients. Business ops are not “set it and forget it” processes and systems but are continually evolving to meet the needs of the business and clients.