Unique and non-mobile products

Firstly, the building and construction industry has certain natural premises that dictate that processes are best operated by local forces. As opposed to other types of industry, the products we make are unique and non-mobile. Interaction with stakeholders is carried out from the project. This gives managers with knowledge of local conditions a central role.

Relation-driven sector

Second, the sector is characterized by being relation-driven. A strict top-down structure with a bureaucracy and central management would disturb the relationship with the customer. A good climate of cooperation depends on the construction site manager having adequate formal authority in order to execute the process efficiently in cooperation with the customer.

Veidekke has ambitions of growth, and this will increase demands on the organization in the time ahead. How is the need for central management to be balanced against an organizational culture that emphasizes local control of projects? Our response it to actively focus on the employees. Through involvement processes such as “We at Veidekke,” we create local involvement and ownership in each individual building project. In addition we focus on the development of management skills. It is through the best associates we become better than the competitors and become the preferred partner for our customers. We therefore need mature managers who are capable of handling significant individual responsibility, who are aware of their limitations and who recognize the issues that need to be be brought up a level.

We are convinced that Veidekke's culture of delegation sets us apart in an industry where differences are not in the technical equipment, but rather in who operates it. By focusing on independent associates we not only increase efficiency, but also improve relations with customers, reduce the total risk in the project and increase the level of repurchase. We therefore believe that our decentralized organization is a decisive competitive advantage, also in a future where Veidekke is bigger than today. A tunnel, a bridge or an office building cannot be centrally purchased and transported to where it is to be used. A building project can thus best be described as a “local business” with a temporary location. The organization comes together at the building site, and progress depends on interaction between the customer, Veidekke's project organization, local authorities, local suppliers/subcontractors and other stakeholders. Figures show that up to three quarters of added value in projects is local, which places demands on proximity to and knowledge of the market where the “business” is to operate. This requires a decentralized structure for responsibility and authority.