Aligning Functions and Strategy

The Strategic Value of Integration

Starter Questions

• Are your support functions integrated into daily business operations?

• How does your company create value?

• How can you justify investment in functions that don’t directly bill clients?

Introduction

In operations, there are many functions to manage: quality, safety, scheduling, BIM/VDC, preconstruction, commissioning, engineering support. Each group requests more budget, presenting business cases that illustrate how their function is critical to success. Each believes they’re undervalued and under-resourced.

During budgeting season, we attempt to answer the difficult question: “Why are we spending $2M on these support functions when they don’t directly generate revenue?” Meanwhile, our project teams say: “These corporate groups create more work than they solve. We don’t have time for their processes.”

This is the central tension in design and construction operations. Support functions like quality or scheduling are necessary but often perceived as overhead burdens rather than value creators. The question isn’t whether we need them (we do), but how to structure, resource, and position them so they advance business objectives rather than exist in isolated silos.

Definitions of a Business Function

When we think about new business support functions, or enhancing an existing one, there are two distinct viewpoints:

• Function as a Process

• Function as a Result

Function as a Process

Many view business functions as processes, and most operate that way in isolation. Consider the following examples where each function is a department with a director serving as the executive process owner for their area.

• Quality: When a quality director exists, they become the “quality expert” in everyone’s minds. Quality knowledge flows through this single person rather than through company leadership and into daily operations. Quality becomes “something the quality team does” rather than “how we execute work.”

• Safety: The safety director becomes responsible for all safety outcomes. Field teams wait for the safety person to tell them what to do rather than owning safety themselves.

• Scheduling: The scheduling team creates beautiful CPM schedules (because field teams “don’t have time to create or update their schedules”) that project teams don’t use (because “the schedulers don’t understand the reality of the field”).

• BIM/VDC: The technology group develops sophisticated models that sit unused because estimating and preconstruction teams are “too busy building to deal with virtual construction”.

This structure is logical but creates unintended consequences. Discrete tasks and tools that stand alone from daily work. Quality programs, safety systems, and scheduling functions become “requirements” that project teams must comply with, like contract obligations or insurance mandates. When teams are under pressure, these process-based functions lose focus and become isolated. This isolation creates a predictable pattern:

1. Support function develops processes and tools

2. Project teams don’t use them (”we’re too busy”)

3. Support function blames projects for non-compliance

4. Projects blame support for creating irrelevant bureaucracy

5. Executives question ROI and consider cuts

6. The cycle repeats

From a project team’s perspective, these business functions become extra administrative work, perpetuating the feeling that “we don’t have time for quality” (or safety, or proper scheduling, or other process). And, when functional leaders (often Subject Matter Experts, or SMEs) pitch these processes to project teams, they set themselves up for failure. The teams think of it as something extra to do on top of everything else. Time is a real constraint on jobsites and in project offices, a constraint that must be respected.

Function as a Decision

A better view of these functions is to see them as decisions. Results of doing all the right things well. If we plan properly, allocate sufficient resources, communicate effectively, and execute with discipline, these management elements combine to produce the result (quality, safety, on-time delivery, etc.). When a business holds this view, the “function” isn’t a separate process, rather it’s embedded in how work gets done.

• Quality

  • As a Process: Inspection checklists, submittal reviews, testing protocols - seen as extra administrative work.

  • As a Decision: Zero punch list at substantial completion, no warranty callbacks, repeat clients, higher margins - seen as the outcome of excellent execution.

• Safety

  • As a Process: Toolbox talks, safety observations, JHAs - seen as compliance theater.

  • As a Decision: Everyone goes home healthy, lower insurance premiums, faster project approvals, better talent retention - seen as the outcome of a mature culture.

• Scheduling

  • As a Process: Updating the CPM, printing 3-week lookaheads, attending coordination meetings - seen as corporate reporting requirements.

  • As a Decision: Predictable delivery, optimized cash flow, efficient subcontractor utilization, premium fee recognition - seen as the outcome of disciplined planning.

Establishing a safety or quality function is a strategic business decision. The business decides where to allocate limited capital and overhead, how to structure it for a competitive advantage, how it will differentiate the company in the market, and which investments will compound over time versus providing one-time benefits.

When we see business functions as decisions rather than processes, we change the conversation from “Do we have time for this?” to “How do we achieve this outcome?” Establishing a business case means influencing this strategic business decision by planning the function into everyday operations, while creating a clear path that makes the function decentralized across the entire company and thus unnecessary.

Here’s how to align any business function with business strategy.

1. Identify company focus areas. These come from the strategic business plan.

   1. Enter new geographic markets

   2. Achieve X% year-over-year growth

   3. Improve employee retention by Y%

   4. Expand into new sectors (data centers, healthcare, etc.)

   5. Vertical integration of supply chain

   6. Improve project margin by Z basis points

2. Map business function focus areas. For each focus area, identify which support functions directly impact success.

   1. Focus Area: Enter healthcare market.

      1. Quality: Healthcare clients demand robust QA/QC programs with specific certifications.

      2. Safety: Healthcare work requires infection control protocols and occupied space expertise.

      3. Scheduling: Healthcare schedules are more complex due to phasing and operational constraints.

      4. Commissioning: Healthcare facilities have extensive systems requiring specialized commissioning.

   2. Focus Area: Improve project margins by 200 basis points.

      1. Preconstruction: Better estimating and scope definition prevents buyout gaps.

      2. Scheduling: Optimized schedules reduce general conditions and improve cash flow.

      3. Quality: Reduced rework directly improves margins.

      4. VDC: Clash detection prevents costly field coordination issues.

3. Interview department leaders. Each department has business objectives that should advance company focus areas. Interview these leaders, asking the following questions. Their answers will reveal whether they see the function as value-add or bureaucracy, what their real constraints and pain points are, how the function should be designed to solve actual problems, and what success metrics matter to them. Pay attention to their language. Financial leaders speak in margins, cash flows, and risk mitigation. Operations leaders speak in schedule certainty and subcontractor coordination. Business development leaders speak in win rates and client retention.

   1. How would an enhanced [function] capability help you achieve your departmental goals?

   2. What specific problems would a robust [function] solve for your team?

   3. What ROI would you expect from investing in [function]?

   4. How should this function be structured to actually help rather than create work?

4. Define the function clearly. Each function needs a clear, tactical definition that translates from executive level to field level.

   1. Quality

      1. Poor: “Quality is conformance to requirements” (too vague)

      2. Better: “Quality is zero punch list at substantial completion with first-time client satisfaction score >4.5/5.0” (measurable)

   2. Safety

      1. Poor: “Safety is our top priority” (meaningless platitude)

      2. Better: “Safety is zero recordable incidents, 100% foreman OSHA-30 certification, and proactive hazard identification that prevents incidents before they occur” (specific)

   3. Scheduling

      1. Poor: “Scheduling ensures on-time delivery” (circular)

      2. Better: “Scheduling is predictive planning that sequences work for optimal productivity, alerts teams to constraints 3 weeks in advance, and enables recovery when deviations occur” (actionable)

5. Establish function objectives. These are the specific actions the business function will take to advance business objectives. They must directly address departmental concerns, align with company focus areas, solve real problems (not theoretical ones), and are achievable with available resources.

   1. Quality: “Reduce punch list duration from 45 days to 15 days by implementing progressive inspections throughout construction, resulting in $X savings per project in general conditions.” This objective:

      1. Solves a real problem (slow closeouts)

      2. Has financial impact (reduced GCs)

      3. Advances a business goal (improved margins)

      4. Is measurable (45 days → 15 days)

   2. Safety: “Achieve prequalification for federal healthcare work by obtaining OSHA VPP certification, enabling pursuit of $500M in annual healthcare opportunities.”

   3. Scheduling: “Implement 3-week lookahead planning on all projects >$10M to reduce coordination delays by 30%, improving schedule certainty and subcontractor satisfaction scores.”

6. Define success metrics (Key Results). For each objective, establish metrics that prove value creation.

   1. Quality

      1. Punch list item count at substantial completion

      2. Days from substantial completion to final completion

      3. Client satisfaction scores

      4. Warranty callback frequency and cost

   2. Safety

      1. Total Recordable Incident Rate (TRIR)

      2. Experience Modification Rate (EMR)

      3. Near-miss reporting rate (leading indicator of culture)

      4. Safety observation completion rate

   3. Scheduling

      1. Percentage of milestones hit within 1 week of plan

      2. Average variance between forecasted and actual completion

      3. Subcontractor satisfaction with schedule communication

      4. Time spent in recovery planning vs. proactive planning

Application to Other Business Functions

This framework applies universally. Here’s how to adapt it.

• BIM/VDC

  • Focus Area: Reduce rework and coordination issues.

  • Stakeholder: Operations and project engineering leaders.

  • Definition: “VDC is clash-free coordination that prevents field issues, not just pretty models.”

  • Objectives: Achieve <50 field coordination issues per $10M of MEP scope.

  • Metrics: Field coordination issues per project, time saved in prefabrication, change order reduction

• Preconstruction

  • Focus Area: Improve win rate and project margin

  • Stakeholder: Business development and estimating leaders.

  • Definition: “Preconstruction is early engagement that optimizes design for constructability and cost certainty.”

  • Objectives: Increase design-build win rate from 25% to 35% through superior preconstruction.

  • Metrics: Win rate by delivery method, scope gap at buyout, client satisfaction with preconstruction.

• Commissioning

  • Focus Area: Enter healthcare and life sciences markets.

  • Stakeholder: Operations leaders and sector champions.

  • Definition: “Commissioning is systematic verification that all systems perform as designed.”

  • Objectives: Achieve 100% first-time commissioning pass rate, reducing closeout by 30 days.

  • Metrics: Commissioning deficiency rate, time from substantial to final completion, owner training effectiveness.

Unique Challenges

Unlike functional leaders who advocate for their single area, you’re managing the entire portfolio. This requires:

• Trade-off decisions: When quality needs investment but safety is understaffed, which gets priority? Framework: Which function has the most direct impact on your top business objective right now?

• Resource allocation: Should you centralize support functions (higher overhead, more expertise) or decentralize them (embedded in projects, more agile)? Framework: Depends on market complexity and talent availability. See my previous cost allocation article for detailed analysis.

• Scaling dynamics: In growth markets, centralized support can’t keep pace. In down markets, centralized overhead becomes unsustainable. Framework: Build hybrid models that flex with market conditions—small corporate core with decentralized execution.

• Preventing competition: When every support function claims to be most important, how do you prevent internal competition for resources? Framework: Measure each function against the same standard—contribution to strategic business objectives—not against each other.

Warning Signs Support Functions Are Isolated

You’ll know alignment is failing when:

• Project teams bypass support functions or comply minimally

• Support function leaders complain about “lack of buy-in”

• Executives question the ROI of support functions

• High turnover in support roles (people feel undervalued)

• Support functions compete for executive attention rather than collaborate

• Reporting focuses on activity (# of inspections, # of safety talks) rather than results (outcomes achieved)

Making Integration Real

Integration isn’t a one-time alignment exercise. It requires:

• Ongoing communication: Monthly reviews where support function leaders report on how their work advanced business objectives, not just completion of tasks.

• Cross-functional collaboration: Quality should inform safety investigations. Scheduling should inform preconstruction staffing. VDC should inform commissioning planning. Break down silos systematically.

• Shared accountability: When projects succeed or fail, support functions share credit or responsibility alongside project teams. This creates ownership rather than finger-pointing.

• Executive reinforcement: You must consistently message that support functions exist to advance business objectives, not to create compliance work. When you see isolated behavior, call it out.

Conclusion

This framework - mapping functions to strategy, interviewing stakeholders, defining clearly, establishing aligned objectives, and measuring results - works for any support function in any construction organization. Quality just happens to be an excellent case study because it’s universally misunderstood as “extra work” when it should be understood as “the outcome of excellent execution.” The same applies to safety, scheduling, BIM, commissioning, and every other support function you’re responsible for.

When support functions align with business strategy:

• They justify their costs through measurable contributions to business objectives

• Project teams use them because they solve real problems

• Executives support investment because ROI is clear

• The functions themselves attract better talent because the work matters

When support functions operate in isolation:

• They’re seen as overhead to cut in tough markets

• Project teams view them as bureaucratic obstacles

• Executives question their value

• The functions become demoralized and defensive

The difference isn’t the technical competence of the support function. It’s whether the function is positioned as a strategic enabler of business objectives or an isolated process.