For many years, the issue of construction industry leadership has been the subject of much discussion.

(image via freepix – ai generated)

However, much of this has fallen on deaf ears. No individual or organisation has been capable or prepared to champion this need!

The economic pressure on the industry has potentially been the biggest distraction on the ability to create competent, capable leaders with the vision, discipline and engineering capabilities to address the generational changes which are needed for such an essential industry.

The complexity associated with delivery has typically overshadowed the increasing environmental, political, social and technical challenges that have become fuel to power the necessary debate and have called into question the sector’s ability to create leaders that can inspire and affect real change.

From the perspective of construction industry, managers and directors – many of whom work in companies that employ many hundreds of people – the lack of VISION has exposed a stark lack of leadership within the industry. My recent “Pub Test” revealed an inability to name any influential leaders in construction. Of those individual leaders that are mentioned within the top five construction outfits in Victoria, they are so consumed as practising construction industry professionals that they all lack the vision to deliver on the key objectives of a real leader.

The last leaders of any legacy are so based in history there is little wonder that the only ‘leadership’ we currently have has come from the ‘other side’ comprising John Setka and outlaw motorbike gangs:

The last genuine leaders that this writer can relate to are:

• A V (Albert) Jennings, the creator of the Land Package Housing model in Australia.
• Sir John Holland, an engineer whose emphasis on engineering principles in construction created one of Australia’s most loved organisations by all of his employees.
• Dirk Dusseldorf, who successfully combined the disciplines of construction, development and investment.

Throughout the 50’s and 60’s, these three visionaries toiled away in the respective fields with their individual leadership skills. They transformed a cottage industry of builders into a powerhouse construction industry. That industry is now their legacy that Australia will never forget.

Bert Jennings’ vision laid the foundation for the ‘baby boomers’ love of property with affordable, well designed and well-constructed estates. These lead the domestic/residential market to this day. They have been copied but never defeated.

John Holland developed his vision into a lasting impact on our communities, infrastructure, cities and society. He took exceptional care in employing and nurturing good workers through people and leadership skills that were developed through his military training in World War II. His exceptional engineering skills along with his people leadership allow him to be recognised as a truly great Australian.

Dirk Dusseldorf’s vision of taking his privately incorporated Civil & Civic into an international juggernaut in the form of Lendlease was through the ‘Managed Project’ where he indelibly etched his name into every section of business in this country. His management skills focused on the design & construction delivery of the property asset which became the blueprint to today’s construction industry.

As stated above, these three visionaries have left their footprint on a dynamic industry. They elevated their peers into future leadership roles. Unfortunately, these roles have subsequently waned into what is now such a leaderless industry that construction companies are failing to provide adequate development of leadership potential. This is particularly the case within larger companies, where up to 25% are not developing their leaders in any way and  close to 50% do not have a formal succession plan or leadership strategy.

The only additional visionary that has blessed the property industry was the 80’s advent of John Roberts’ vision of Multiplex fame by incorporating the finance into construction package.

But it is also evident that companies are failing to meet the expectations of any new leaders within the industry. There are massive requirements that individuals are looking for. New experiences, inspiration, training and clear guidance is required to improve their leadership ability and to reflect the grit and determination of our greater visionaries of the 50’s and 60’s.

Procurement holding us back

The greatest hindrance to developing leaders is the procurement system (which is a race to the bottom). In this system, the leader that makes the biggest mistake is rewarded with the contract.

The lack of training/educational funds is a key factor in curtailing any new and vibrant vision that would help to develop new leadership visions into the future.

These would suggest that the prime motivator in creating construction industry leaders of tomorrow needs a VISION, that was underpinned by these 3 (possibly 4) visionaries. Yet in almost half of construction organisations/companies, financial benefits, rewards and incentives are identified as the most common way of rewarding and retaining leaders.

Cruelly, leadership skills have now become transferable between different industries. And yet the industry mostly seeks to recruit its leaders internally by developing existing staff through the wrong incentives. This could be viewed as a missed opportunity for the industry to recruit new, improved leadership from elsewhere or to create appropriate incentives that generate leadership from within.

There appears to be a difference between the traits and qualities possessed by leaders in the construction industry compared with leaders outside the industry. Given the lack of leadership evident in the construction industry, this may represent a genuine misunderstanding of what is required by the industry in terms of leadership. Alternatively, it may infer that the construction industry needs something different to other industries in order to succeed.

The industry needs to re-assess the leadership qualities and skills required by the construction industry. There must be a greater focus on the “softer” skills of relationship management, creativity and emotional intelligence within the industry in order to replicate the great leaders that laid the foundations in the bygone years.

In addition, and on a specific issue, the evidence describes a lack of leadership at company level for improving the sustainability of the built environment. This is consistent with the findings of a number of research articles noting a previous article by the Australian Institute of Building based on a lack of leadership dealing with industrial relations, sustainability and change.

The existing skills shortage is another problem which could have profound effects on leadership within the construction industry. That said, it has been suggested by some industry commentators that with strong leadership, we might not have a skills shortage.

By Stephen Dean, Commercial Manager, More Building Group Pty Ltd