Projects as Test Beds
One project might be doing something innovative to improve delivery times or productivity, but those methods must be scalable across the enterprise, adds John Parolisi, executive vice president and chief strategy officer for BB U.S. "That's why we created the capability center. It's a way of harvesting all that knowledge, but it's more than just putting it on a [corporate] intranet, too," he says. "We identify the practices, as well as employees from the projects, and tie that into key roles across regions.
"The big risk with this kind of change is the management approach," Parolisi adds. Everyone's so busy, it's difficult to absorb changes. That's why "we have teams on the front lines, helping them absorb the innovative approaches," he says.
"What Mark has done and will continue to do is put some sharp edges on the strategy of zero harm, zero waste and client advocacy, which is a step up from service-oriented culture, and an employee inspiration goal, which is a step up from employee engagement," says Van Cleave. "His strength will come in his ability to institutionalize this innovation and make it a repeatable model."
The parent company, which at the halfway mark of 2013 saw global revenue fall by about 3%, to £4.97 billion ($8.1 billion), is watching closely. Balfour Beatty plc is looking to the U.S. division to deliver the "strongest growth of the firm's global business in 2014," says Andrew McNaughton, CEO of the parent company. "The U.S. market is gradually improving, and we see significant opportunities for Balfour Beatty," he adds. "In building, where we are a top-tier player, we are looking to access growth sectors such as commercial multifamily housing, corporate facilities, mission-critical, student [housing and] existing projects."
Howard Seymour, a construction analyst at Numis Securities in London, doesn't see the firm making any moves into new markets, such as oil and gas. "The group's professional services provides infrastructure for resources companies, notably power and infrastructure, and we expect this to remain the mainstay of activities in this area," he notes. "For the most part, that growth into new regions will be bolt-on, rather than major transformational acquisitions."
Pivotal Times
The clouds are lifting as Layman looks down to ponder a question about pivotal moments in his career path. He recalls his early days with Centex. "One of my leaders at the time said to me, 'You know how to build buildings, but you don't know how to build a business.' That kind of got under my skin," he says.
The words drive him still. "If I think of where I've spent my efforts [since then], it's about never losing the heart of being a great builder—that's at the very center of our DNA and how you build a great culture while thinking of new prospects for customers.
"I'm on that journey with the organization. We're great builders, and we build great businesses. And yet, it's like we're only just arriving, not there yet.
"And it's the most exciting, energizing feeling you can have—to still be driven by the passion of it all and how far you can go."