Fast tracking a successful new business venture through the mire of start up and establishment in the market is never an easy task, particularly in civil contracting. But relative newcomers to the industry, JHL Civil have achieved just that by maintaining rigid attention to overhead control, people clients and work quality.
Arriving at JHL’s water front offices in Port Melbourne to meet with Marcus, it is easy to spot the keys to JHL’s rapid growth and success. With a wry smile Director Marcus van Enk explains “whilst we have a water front address, we chose this location because of its proximity to Melbourne, and the fact that the overheads are next to nothing”. JHL is in fact, based in a set of portable offices inside the old stevedoring sheds fronting the Yarra at South Wharf. Water front; definitely, palatial; definitely not.
Like most new businesses, JHL is the result of an opportunity in the relatively new but growing recycled water pipeline sector, identified by Director Tony Mau in late 2004. Tony, with fellow Directors, Rob Phillips, David Cox and Marcus van Enk, each with extensive background across a number of civil contracting areas, make up the management team of JHL. With combined experience across the irrigation, water recycling and commercial landscaping areas, the Directors each have a spread of skills that has enabled JHL to focus its development on this water pipeline sector.
Once formed JHL set about establishing itself in the market trough a “test” project in a small town in Geelong’s West to capitalise on Tony’s past experience with recycled water pipeline projects in Melbourne’s South East.
. This project was designed to make recycled water available to the local golf course in Bannockburn.. With the completion of this project, and having the spread of expertise, Tony and fellow Directors confirmed the opportunity to specialise in this niche area and made the decision to equip JHL with the necessary resources.
The success of the test project and Tony Mau’s experience in other businesses encouraged the setting of specific strategic positions on key aspects of JHL’s operations, positions that would form the foundations of the business. According to Marcus, these positions are:
- The business should operate on low overheads
- It should be equipped with the correct human and systems resources
- It should specialise in a specific area of opportunity (but be aware of opportunities in other areas where the resources could be profitably employed)
- The business should be flexible to respond quickly and adequately to client expectations
- The business should continue to invest in developing “in-house’ skills.
On the staffing issue, Marcus van Enk says “it is vital to choose the right people and once you have them on board, hang on to them”. JHL achieves this by investing in the individual’s future with the business through skill and capability training. Staff retention is further enhanced by creating and maintaining the necessary culture in the business that “near enough is not good enough” and promotion of a strong “team culture”.
This philosophy is further supported by strong performance management of all staff, commencing with each staff member being involved with the determination of their own training and experience needs coupled with regular staff appraisals. “Using this approach, doubtful performers or people who don’t fit the team are quickly identified, and in virtually all cases make the decision to move on themselves”.
The dividends of this philosophy are now shining through, and, when you look at the training investment JHL has made, you can see why its people are keen to stay with the business. That investment in JHL’s twelve people starts from Certificate lll training for three staff currently, with a commitment that all new and most of the remaining staff will be cycled through this type of training. Not satisfied with just Certificate lll, JHL ensures all staff have the appropriate competency training to be able to work safely and efficiently. Marcus says that JHL “will look closely at Civil Apprenticeships as a means of overcoming the long term shortage of skilled people for JHL”.
However, Marcus is quick to point out that just having the right people and expertise, does not win tenders. Much of successful tendering is about price and capability to deliver the clients’ desired outcomes through a totally professional approach to managing projects from tender through to completion. To assist this, JHL has made a significant investment in a CCF Integrated Management System which underpins the operational functions of the business.
JHL decided to move with the CCF system primarily because “our prospective clients identified these systems as being preferred because most of their other civil providers were using them successfully”. Marcus had the responsibility to get the systems up and running and suggested that the implementation of the systems (normally the hardest part) was made easier by taking a “full systems approach to all aspects of the business and all projects”. Another JHL systems strategy that has worked well is that “all start up staff (and later employees) were advised at commencement of the systems direction the business was taking, and the impacts this would have on them”. Marcus says “this is continually reinforced at every opportunity and monitored closely throughout the works process”.
Marcus proudly explains that “JHL is now being seen as a totally professional operation, particularly in the project management area, and, he believes that this aspect alone is providing some leverage for JHL against some competitors with similar skill set capability”.
Particular evidence of this professional approach has surfaced on several small but complex projects. An example being the installation of gravity fed, 100mm PVC and ductile water reticulation mains in the highly environmentally sensitive Falls Creek area. Developing a detailed environmental management plan to meet the requirements of all project stakeholders was a principle project requirement. The management of the plan, from the identification of assorted environmental hazards through to the implementation of stringent environmental controls necessary to work in the snow zone, was just one of the issues that particularly impressed the client and associated stakeholders.
JHL’s works on the Surf Coast and in Melbourne’s western suburbs have further improved their reputation as a contractor focused on delivering quality outcomes. The hard work in building the company’s excellent reputation with key clients is now paying dividends. Marcus says that “our reputation is opening doors into opportunities that only twelve short months ago were just part of the future to us”.
With recent Government announcements detailing future infrastructure spending, plus the encouraging trends by infrastructure owners towards more efficient management of water resources, Marcus believes the future is bright for JHL Civil. “But only as long as we continue to maintain the focus on our key strategic positions, and maintain the quality of our project outcomes”. Given the successes to date, and the infectious enthusiasm displayed by Marcus, it would seem a reasonably sure wager that JHL will continue to prosper. To gain a further perspective on JHL Civil, Marcus recommends a visit to www.jhlcivil.com.au .