In all the stuff you see and hear about leadership, it’s interesting to me that nobody ever mentions fear, except maybe to confirm the obvious: That a good leader should never show any.

I’m not sure I’m on that page. While it probably would have been a bad idea for Winston Churchill to broadcast that the German Luftwaffe scared the daylights out of him; or for Neil Armstrong to say, as he set foot on the moon, ‘I’m pretty much scared s*#tless’, I have no trouble acknowledging that I go through very many business days (and nights) with a fair knot residing right in the middle of my stomach.

I think it’s a reasonable suggestion that if more leaders would specifically acknowledge the things that are terrifying them, it might actually lessen the fear around their company or team, and might instead build confidence. Putting the fear right out on the table identifies the ‘elephant in the room’ that everyone else already knows is there, and frees everyone up to attack it. People may be relieved to know that the boss isn’t off in la la land, and actually knows where the really scary stuff is. It will help everyone relax a bit (and focus more), and maybe it will enable other people to open up about the issues that are scaring them (which could only be a good thing).

And besides, everyone knows (or they should) that the arrogant buffoon, who in the face of mounting peril tells everyone that things are just fine, is really a quivering glob of pudding inside anyway.

So, I’m just throwing out a contrarian suggestion. Want to be an inspiring leader? Want to move mountains? Tell everyone how just terrified you really are.

To be honest, I thought consolidation would hit our sector years ago. Instead, we saw it hit the design and engineering side, while the (highly fragmented) building industry continued blithely on.

Well that appears to be done. Construction companies are getting sold almost every week, negotiations are rumoured behind every closed door, but here’s the difference. On the consulting side, the consolidators have tended to be Canadian (Stantec, SNC, etc.), but on the construction side, the big buyers prowling around and making moves these days are almost always the international firms. Wherever you happen to stand on this complex issue of public policy, on thing is clear: Canada’s strong, home grown and internationally respected construction expertise is on the block. As are the top jobs, management control, profits and tax revenues they have provided. Without a whimper, it would seem.

Life goes on, nothing is forever, but my wholly biased view is that it’s a bit tragic. It should have been a strong, exportable expertise, a way for Canada to move out into a globalized world. Of course, construction leaders are to blame for not leading, for taking the easy (read: $$$) way out. But where other governments enable their construction companies in the world markets (with liquid performance guarantees, for example) and make it tough for others to penetrate their markets, our governments have been inclined to do the opposite: travel the world, imploring these large firms to invade. Instead of building on our strength, we all capitulate together. It’s perhaps worth a moment’s reflection.

(As for EllisDon – alas, I hear the rumours – but you can ignore them. We are employee owned, globally ambitious, and very proud of our unique culture and values. We will be buyers, we will not be selling. Employee ownership is the strongest possible model, and we have no intention of messing with that. You’d pretty much have to kill me first.)

But this is going to be interesting, and there is much at risk, for everyone involved, I think. How can we be so lacking in confidence? Why don’t we build something strong together, instead of collectively selling out?

'Hollowing Out' in the Construction Industry: Is it Here?

Everything is changing: Globalization and technology have finally enveloped us, and everyone’s traditional business model is seriously threatened. Resist the change and you’re probably toast. Embrace it, and you may be toast anyway. So why is this such a great time to be in the building business in Canada? Five reasons:

The Builders Get To Lead Now: A generation ago, General Contractors rarely even met their clients. The architects administered the contract entirely, and everyone competed solely on price. Now, clients aren’t just asking the Builders to lead, they are demanding it. We (both Generals and Subs) are in control now - for better or worse. My 86 year old father would have sold his soul for such an upside down situation.

It Ain’t Just About Price: I used to joke that when contractors wanted to be innovative, we would cut our margins. Now we get to compete on brains, creativity, guts, energy (and price). This is way more interesting, and potentially way more lucrative.

Anyone Can Play: Everything is fragmenting, no-one has control, everyone is looking for an edge, and it’s a ‘design/build world - which means there are niches galore. ‘Business by relationships’ is for dinosaurs. Who has the best idea, even for the smallest element? The ‘reserved spots’ are disappearing. Agility wins.

IT Really Does Change Everything: The whole “Earth Is Flat’ thing is about to change every part of our business – building methods and materials, office productivity, client service. And (in the world’s most conservative business) you don’t need to own it, you just need to be an early adopter. As a result, everyone can compete with everyone else, because everyone has the same opportunities (and threats). Is that cool or what?

The World Loves Canada: OK, the British, the Spaniards, the Germans and the Americans are coming here. But as Canadians, we can take our ideas and enterprise almost anywhere in the world and expect to be welcomed. Canada has a world beating reputation for competence, integrity, reliability, and openness. We just have to get on a plane and go.

Construction - traditionally a repetitive, unchanging, non-innovative industry where firms competed by cutting profit margins – is being turned on its head. There will be confusion, opportunities, winner and losers. Everyone is profoundly threatened, but there are also opportunities everywhere, and no-one has a ‘built in’ advantage anymore. What a great time to be involved, and what a ton of money there is to be made.

A New Model: The Terrified Leader

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