Operational Effectiveness in Building Renovation Business: Best Practices for Profitable Execution
The operational side of business, such as processes, has been studied broadly in the construction industry. However, from the point of view of building renovation (BR) companies and their operational effectiveness, there is a research gap detected. These companies are becoming increasingly importan...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
UTS ePRESS
2025-03-01
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| Series: | Construction Economics and Building |
| Subjects: | |
| Online Access: | https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/8912 |
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| Summary: | The operational side of business, such as processes, has been studied broadly in the construction industry. However, from the point of view of building renovation (BR) companies and their operational effectiveness, there is a research gap detected. These companies are becoming increasingly important in the construction industry due to the growth of BR needs, like energy efficiency improvements for existing buildings. Ensuring the continuity of BR companies is crucial to meet these increasing needs and that is where profitability plays an important role. Therefore, by comparing 2 cases, BR companies with high profitability (HP) and BR companies with low profitability (LP), we sought to identify best practices for operational effectiveness that enable a profitable BR business. To review the operational effectiveness, we used semi-structured interviews and 2 frameworks: operational excellence through the 4P model, and a model we created in this research, critical operational key elements (COKE) in the BR business. We detected that both HP and LP cases value the operational elements similarly, but there are clear differences in how the cases perceive and execute the elements. The HP case unconsciously seem to possess certain mainstreams of lean principles. The 4 best practices which we found, and that BR companies can utilize, are: focus on customers, be business-oriented, strive for simplicity and clarity and treasure employees and subcontractors. Additionally, the COKE model can be utilized in BR companies’ business development. For the academia, the COKE model offers a starting point for studying key operational elements in BR business.
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| ISSN: | 2204-9029 |