Argo Construction Group’s Leadership and People Results

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Table of Contents

Introduction
Strength areas
Areas for improvement
Site visit issues
People strategy
Additional areas
References

Introduction

The Argo Construction Group is a multinational construction company with headquarters in London. It has more than 45,000 employees in over 35 countries across the world. It is divided into the following divisions: building division, infrastructure division, support services division, and corporate functions division. The Argo’s first sub-criteria on leadership state that leaders formulate the mission and vision statements, and values and ethics for the organization. The sub-criteria also stress the role of leaders acting as role models within the organization. The strategic vision of the company is aimed at making the organization the leading provider of solutions to customers. Customers could be owners, developers, and users of the infrastructure.

The strategic vision of the organization was formulated in 2003 with a view to giving the organization a strategic focus. The strategic vision is reviewed every three years to ensure that it maintains its relevance for achieving the organization’s goals and objectives. The frequent reviewing of the strategic vision is in line with RADAR requirements (Karapetrovic & Willborn 2001). RADAR is an assessment conceptual framework that is used to assess the performance of an organization on a continuous and regular basis. The approach is based on logic dynamism that should be employed by the management of an organization to assess performance (Karapetrovic & Willborn 2001). By formulating and reviewing the strategic vision, the Argo Group aimed at achieving the following requirements contained in RADAR:

Determining the anticipated results as contained in its strategy.
Planning and developing approaches that could deliver the anticipated results then and in the future.
Deploying the developed approaches in an organized manner to ensure they are well implemented.
Assessing and refining the implemented approaches based on analysis of results obtained and continuous education.

Reviewing a strategic vision statement for an organization is essential for defining the future of that organization (Karapetrovic & Willborn 2001). For example, the Argo Group reviewed its strategic vision for the first time, in 2006, and it realized that the vision was still relevant, but could not help the group meet its demanding growth rates. As a result, the top management of the organization made changes that affected personnel in the sales and technical departments. The departments were subdivided into the following divisions: utility division, transport division, plant division, and specialist services division. Each division was answerable to a senior manager. The move by the management proved so useful for the organization’s operations and performance. The changes enabled the organization’s specialists to be closer to the staff of major customers. Customers could give feedback which was analyzed with a view to improving their experience with the organization. Several studies demonstrate the pivotal role of customers in any business establishment. Studies have shown that organizations that understand their customers by acting on their feedback succeed in their operations (Ricondo & Viles 2005). The Argo Group capitalized on this observation, and the management has indicated that the analysis of the customers’ feedback has enabled the organization to improve sales of products. Analysis of customers’ feedback enables an organization to identify and improve its weak points (Ricondo & Viles 2005).

The Argo Group has values that apply to all its operating divisions across the world. The organization’s values were formulated in 1999 with a view to reflecting the cultural diversity and behavior of its employees. The values underpin all the activities of the organization. An organization’s values are a clear reflection of what the organization advocates in terms of its employees’ performance. Research demonstrates that organizations that have excellent values tend to have conducive working environments for their employees. Employees perform best in conducive work environments because they feel appreciated and encouraged (Ricondo & Viles 2005).

The management of the Argo Group is not involved in wording the organization’s values. However, the management ensures that the organization’s workforce embraces the values. The Argo group conducts induction sessions for new employees to make them aware of the organization’s values. In addition, the Argo Group conducts continuous training sessions in which personnel is reminded of the organization’s values and vision. To better remind the organization’s vision and values, employee surveys contain questions that are a directly related assessment of managers’ adherence to the organization’s values.

The Argo Group’s values were formulated with a view to achieving the following:

Treating customers and suppliers fairly. The Argo Group anticipates fair feedback from customers and suppliers after they are treated in a fair manner by the organization.
Fulfilling employees’ potential. The Argo Group understands its employees are essential for it to achieve its goals and objectives. The organization aims to fulfill its employees’ potential so that it could have superior performance in the corporate world.
Promoting teamwork among employees and nurturing personal accountability. The organization understands that embracing teamwork spirit among workers would go a long way in achieving excellent performance results.
Adding value services. The organization aims at adding value for customers so that it could be selected for the additional value. The value addition is achieved through unrivaled expertise, experience, and innovation.
Improving the skills and quality of products. Excellent skills are essential for the production of quality products. Quality products are better appreciated by customers than sub-standard products. The Argo Group understands that production of quality products would go a long way in improving its sales and performance.
Setting standards in industries. The Argo Group aspires to be an exemplary performer by setting unrivaled standards in industries. This could be achieved through superior performance. Superior performance in industries is directly related to the best financial returns.
Looking at the future with a view of improving the life cycle spectrum of premises, infrastructure, and facilities.

The Argo Group has focused on achieving its goal of continuous training among its managers and junior employees. Continuous training is a requirement of the RADAR and EFQM methodology (Ricondo & Viles 2005). The organization asserted that it recognized the importance of coaching and support of leadership in the construction industry. Coaching and supporting leadership in any organization goes a long way in ensuring that the organization has excellent managers equipped with the current leadership knowledge and skills. The organization restructured its managerial system in 2006 with a view to increasing the efficiency of managers in different divisions. In 2006 alone, seven senior managers were taken to a short leadership course offered by one of the UK’s best Management Colleges. In the previous year, all managers within the organization had been trained as EFQM assessors.

The short course took two days to complete, and the managers were licensed to practice as EFQM assessors. To further promote leadership among managers in the organization, six managers have been acting as external assessors for various awards in the UK. In addition, senior managers have been facilitating sessions of Excellence Model awareness within their teams and as part of induction sessions for new hires within the organization. These sessions also go a long way in ensuring that leaders act as role models within the organization. Research demonstrates that leaders who act as role models in an organization help the organization to realize improved performance. This aspect of leaders acting as role models is stressed as one of the requirements in EFQM. Apart from leaders acting as role models, they could also act as mentors to help nurture leadership skills in other personnel. Mentorship within an organization is so essential in ensuring that there is no leadership vacuum when leaders leave the organization (Rusjan 2005). If they leave the organization for any reason, they could leave their juniors whom they had mentored in charge. In such a case, there is no transition issue anticipated (Rusjan 2005).

The Argo Group has also stressed the role of ethics in its first statement on leadership. Ethics in an organization ensure that workers follow certain work ethics that have been tested and proved by the organization. Leaders should display a high level of work ethics. It has been shown that ethics start at home. Home is the basic unit of a society where family roles, ethics, and values are taught. To ensure that workers follow an organization’s ethics, they are made to be aware of the rules governing the ethics (Samuelsson & Nilsson 2002). Workers should also be aware of any consequence following unethical conduct within an organization.

Strength areas

Two things stand out in the Argo’s leadership that conform to the RADAR methodology. One of the things is the continuous review of the strategic vision of the organization. Management has asserted that the strategic vision is reviewed every three years. The strategic vision is reviewed to assess the extent to which the organization has achieved its anticipated results. This is important because all business organizations operate to achieve anticipated results. If organizations do not achieve their results, they look at ways of improving the results in the future (Rusjan 2005). Research demonstrates that performance could be achieved by identifying the weak areas in an organization. In 2006, the Argo Group reviewed its strategic vision for the first time. The review informed the management that the vision was still relevant, but could not be used to achieve the organization’s demanding growth rate. The other thing the Argo Group has done according to the RADAR methodology and EFQM requirements is the continuous training of its managers and employees.

For example, the Argo Group trained all its managers on the EFQM assessment in 2005. All the managers qualified as EFQM assessors and were licensed to offer EFQM training to private and public organizations. In 2006, the group trained seven of its managers on the Leadership Development course offered by one of the UK’s best Management Colleges. To further fulfill the requirements by EFQM and RADAR, the Argo Group allowed six of its managers to be external managers for the North of England Excellence Awards. In addition, senior managers within the group have been leading Excellence Awareness sessions for teams and during induction sessions for new hires in the organization.

Training of new hires on Excellence Awareness goes a long way in ensuring that new employees are equipped with the right knowledge right at the start of their work. The benefits of training new staff in any organization are reflected in their individual performance and improved performance by the organization. The EFQM Excellence Model is based on the exchange of knowledge and ideas among workers in an organization (Samuelsson & Nilsson 2002). Training is intended to make learners aware of skills and knowledge in particular areas within an organization. Research demonstrates that organizations that embrace routine training for their staff perform better than those who do not (Samuelsson & Nilsson 2002). It would be prudent for the management of any organization to embrace EFQM training for its managers. Taking up opportunities in external assessments also goes a long way in exposing managers to different environments, which improves their experience and performance. EFQM assessment training is carried out in both public and private organizations, and they help learners to use logic paradigms to assess the performance of the organizations (Samuelsson & Nilsson 2002). The Argo Group has done so well in adopting EFQM training for its managers.

Areas for improvement

However, there are two things that the Argo Group should work towards improving. Firstly, the group should start engaging the management in the wording of values for the organization. The RADAR methodology asserts that values for organizations should be made by all stakeholders of the organizations. The final wording could be left to the management after which all the workers will be provided with copies of the values for the organization. The involvement of the management in wording values for organizations is essential because managers are well educated and trained to formulate mission statements, vision statements, values, and ethics for organizations.

Secondly, the Argo Group has not indicated the roles managers play in promoting ethics and acting as role models for other workers in the organization. Leadership role models are crucial for all organizations across the world because junior workers tend to emulate good leaders (Samuelsson & Nilsson 2002).

Site visit issues

One of the site visit issues is assessing whether junior workers are frequently trained by their managers on EFQM requirements. The group asserts that it conducts routine training for its workers and induction sessions for new hires. This could be assessed by visiting the group’s sites in different countries across the world to assess the validity of the organization’s assertion. The other site visit issue is assessing whether the group reviews its strategic vision after three years. EFQM requirements suggest that an organization should review its strategic vision after every three years. The assessment could be done by visiting the headquarters of the Argo Group in London. The site visit could enable an individual to access the reports of the previous strategic vision reviews and their implications (Karapetrovic & Willborn 2001).

People strategy

The Argo group has been conducting frequent people related perception measures to help to manage the affairs of its workers. Having a motivated workforce is essential for achieving an organization’s goals and objectives (Rusjan 2005). The organization has been conducting employee surveys aimed at identifying problems affecting staff. When such problems are identified, necessary measures are taken so that they could stop impacting negatively on workers’ job performance (Rusjan 2005).

The group has also been conducting people related performance indicator assessments to examine various job aspects of an individual worker. Absence rates, employee turnover rates, accidents at work, and training expenditure are some of the issues addressed by conducting people related performance indicator assessments. High turnover rates could imply that an organization has poor remuneration for its workers. Low training expenditure could be an indication that an organization does not invest in training its workers. High absence rates could prompt the management of an organization to analyze the problems that could be resulting in employee absenteeism. The Argo Group has adopted excellent approaches for assessing various factors that could lead to employees’ improved or poor performance.

Additional areas

Communication seems to be the area having a contradiction in the leadership and results from sections in the case study. The Argo Group has indicated that it emphasizes communication from leaders to juniors (downward communication) and from juniors to seniors (upward communication). These two forms of communication are essential in every organization. Communication helps to convey messages and ideas on various issues. Quality communication is directly related to the performance outcomes of organizations (Samuelsson & Nilsson 2002). The communication chart on the people’s results shows that the two forms of communication have not been excellent within the organization. The extent to which active communication occurs within the group could be assessed by conducting site visit assessments (Ricondo & Viles 2005). The assessment results could go a long way in ensuring that the group adopts better communication approaches if the current methods are found to be ineffective. It would also be prudent for the management to appreciate the role played by active communication. With this in mind, the management could work towards improving communication within the organization (Karapetrovic & Willborn 2001).

References

Karapetrovic, S, & Willborn, W, 2001, “Audit and self-assessment in quality management: comparison and compatibility”, Managerial Auditing Journal, Vol. 16, No. 6, pp. 366-377.

Ricondo, I, & Viles, E, 2005, “Six Sigma and its link to TQM, BPR, lean and the learning organization” “International Journal of Six Sigma and Competitive Advantage, Vol. 1, No. 3, pp. 323-354.

Rusjan, B, 2005, “Usefulness of the EFQM excellence model: Theoretical explanation of some conceptual and methodological issues”, Total Quality Management and Business Excellence, Vol. 16, No. 3, pp. 363-380.

Samuelsson, P, & Nilsson, LE, 2002, “Self-assessment practices in large organizations: experiences from using the EFQM excellence model”, International Journal of Quality & Reliability Management, Vol. 19, No.1, pp. 10-23.

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