Capitalism has not forgotten the construction industry. His reluctance to rely on technology has good reason

The construction landscape is at a crossroads, facing significant cost and efficiency challenges. For example, while the Empire State Building was built in just one year and 45 days, recent projects such as the East Side Access Project in New York and the Salesforce Tower in San Francisco took years, if not decades, to complete. to be completed. This reflects the accumulation of red tape, NIMBYism, and the increased complexity of building these structures.

One of the main culprits behind this increasing complexity is the rising cost of construction projects. In recent decades, costs associated with materials and labor have skyrocketed, exacerbated by inflation, supply chain disruptions, and a shortage of skilled labor. Another critical problem lies in the inherent inefficiencies of the construction process itself. Unlike manufacturing, where processes can be standardized and optimized, each construction project is customized, requiring customized solutions and constant on-site adjustments.

In the future, the true strength of the $170 billion-a-year commercial construction industry will lie in applying leadership skills to what is arguably one of the most complex businesses on earth. Imprinting our skyline with towering skyscrapers requires the coordination of hundreds, often thousands, of diverse stakeholders. These include various construction trades, powerful financial institutions, local, state, and federal governments, labor unions, and community organizations that may want to stop the project. It requires building massive structures in busy urban centers and navigating multiple supply chain disruptions, each with specific challenges. Try asking ChatGPT to handle that kind of complexity and handle those kinds of human interactions.

As CEOs who have each led our own large commercial construction companies, we believe that technology can enhance, but not replace, the nuanced judgment and problem-solving skills of leaders.

We believe the lessons we’ve learned over decades of building some of the most iconic projects in modern history, including One World Trade Center, Canary Wharf, Disney Paris and the restoration of the Statue of Liberty, provide valuable insights for any executive. . complex projects, regardless of industry.

We’d like to share with you the five mindsets that have helped us deliver these highly complex projects on time and on budget. We believe these five mindsets will be useful for most leaders in almost any situation.

Courageous decision-making about talent

Successful project management is not just about using tools. It requires visionary leadership and strategic thinking. It involves making difficult decisions, such as assessing whether you have the right team or whether a less effective member needs to be replaced. Although challenging decisions are often unpopular, they require courage and conviction and are fundamental to achieving exceptional results at every stage of anyone’s career.

During the development of Canary Wharf, the complexity of managing diverse teams of international workers, each with their own unique skills and perspectives, required some difficult calls to be made. It was an incredibly high-stakes environment, and we prioritized what was best for the project, even when it meant replacing certain team members who weren’t aligned with the goals. It’s not a popularity contest – it’s about ensuring the right results and having the courage to tell people what they need to know, not just what they want to hear.

Openness to outside perspectives

As a leader, you want to have all the answers and be the smartest person in the room. But to solve complex problems, it sometimes helps to be more humble, willing to be challenged by those who really know their craft and listen to their unconventional solutions to seemingly intractable problems.

For example, when restoring the Statue of Liberty in 1986, traditional cleaning methods proved ineffective due to the structure’s age and materials. Rather than sticking rigidly to what has always been done, our openness to unconventional ideas from outside experts led us to solutions such as using liquid nitrogen to freeze paint layers and baking soda to remove tar layers . It is unlikely that a computer program could have come up with these innovative solutions – and with ChatGPT still prone to hallucinations, the wrong suggestion could have destroyed a wonder of the world.

What it took was a willingness to explore non-manual methods that not only solved problems but also demonstrated that no challenge is insurmountable when you’re willing to put your own biases aside and listen new ideas.

Authentic communication and transparency

In any complex project, transparency and authenticity are key to building trust and ensuring alignment among all stakeholders. Often it’s not about delivering the message people want to hear, it’s about delivering the truth, even when it’s difficult. Customers and team members respect honesty and honest discussions lead to the best solutions.

During the construction of the Atlanta Olympic venues, early transparency about budget overruns allowed for timely adjustments and workarounds.

By bringing potential problems to light, the team avoided last-minute disasters and maintained the integrity of the project. Being direct about challenges, from budget overruns to design flaws, is the only path to successful outcomes. When things go wrong, they don’t get better without honesty and immediate intervention.

The relentless search for the best solutions

Complacency is the death knell of construction decision making. It is essential to be willing to challenge assumptions, avoid taking things at face value and fight for the best solution. We never stop until the best answer is clear and verifiable.

At One World Trade Center, the original asymmetrical design supported by other design and project team leaders presented significant risks, both structurally and financially. The constant search for the right solution led us to advocate a symmetrical design. The result? Look at the New York City skyline – the structure is tall, proud and symmetrical. Our decision saved the project nearly $300 million while ensuring structural integrity and aesthetic appeal, all while keeping everyone working on the project happy.

Success in construction and any industry depends on the mindset that you can’t rest until the right path is fully proven, even if it requires challenging the original plan or experimenting with unconventional approaches.

Resilient leadership in the face of uncertainty

Every construction project is unique – and unforeseen challenges are inevitable. The resilience to adapt, make quick adjustments, and maintain focus in the midst of chaos is critical to success. Effective leadership involves listening to diverse perspectives and fostering a culture where everyone on the team feels valued and part of the process.

It’s something I’ve especially learned working with mega-projects like airports and major transit hubs. With so many government partners in the mix of public and private interests, there is additional room for uncertainty. Stakeholder needs and goals can change quickly, and the team may need to keep going, even if the road ahead seems difficult.

Large-scale projects such as the New Terminal One at JFK and LaGuardia Airport succeeded because of resilient leadership that emphasized collaboration, embraced complexity, and made difficult decisions when necessary, always ensuring that each member of the team feel that their contribution is valued.

Technology should enhance, not replace, experience

The construction industry is at a crossroads where the balance between technological advances and human expertise is more crucial than ever. While technology can streamline processes, it cannot replace the critical thinking, leadership, and problem solving that lead to success.

For those who aspire to lead, the real lesson lies in the daily commitment to these mindsets—embracing diverse perspectives, making tough, confident decisions, promoting transparency, and seeking the right solutions.

These leadership principles transcend industries, and the leaders with the greatest impact will be those who combine innovation with sustainable wisdom. In doing so, they will not only address today’s challenges, but build the foundation for sustained success.