Willmott Dixon's drive for partnering sees profits rise by 20%

Willmott Dixon has boosted its pre-tax profits by a fifth after refocussing its construction business on partnering and negotiated work during 1999.

Full year results showed profit climbing by 20% to £3m on turnover that fell by 4% to £250m due to the move away from competitive tendering.

Profits would have been higher still but for a £1m investment in research, innovation and business development. The company has funded work with Dr David Gann of Sussex University aimed at increasing the efficiency of its social housing business. It also appointed two innovation managers: Brendon Richie in social housing; and Roy Evans in construction, who was recruited from the Movement for Innovation.

"We are using them as catalysts to bring the best out of our existing people. We have a number of task forces below them looking at specific issues in the business," said chief executive Colin Enticknapp last week.

A new career structure is being developed, based around a new on-site role of operations manager aimed at more closely integrating design co-ordination, production and surveying functions. "Project managers often tend to have a production background. And site people in surveying, and design co-ordination will often report to directors off site. We want the operations manager to have a broader role and full line management responsibility for all the functions on site," said Enticknapp.

The company is investing £250,000 in a fast-track training programme to produce the first 24 operations managers this year and create a new career structure. "We want people's career path to start in functional roles," Enticknapp said, "and then to progress to operational management, and finally generally management. As you would expect, the benefits get higher as you rise through the tiers.

"We believe this new cross-functional role is crucial to providing a more integrated service and high customer satisfaction."

On the back of improving client satisfaction levels, the company aims to win a greater level of non-tendered work. The bonuses of chief operating officers and divisional mds within the business are tied to bringing in more partnering and negotiated work, as defined by five strict criteria.