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Effective Leadership for Contractors: The Law of the Lid

How To Have Effective Leadership for Contractors

Does this sound familiar?

A contractor bootstraps his business with a little bit of cash and a dream. Long days on the project sites are mixed with stopping off at potential job sites to meet with customers on the way home to sell the next project.

As the business grows, the contractor hires a few employees. Eventually the work grows to the point where an office staff needs to be hired to help handle the paperwork flow. The business continues to grow to the point where a foreman or other levels of management are needed.

Eventually, the self-employed contractor transforms into a business owner. He begins to accumulate some equity in the business. And he looks for ways to pull back from his business to start enjoying life. But all too often he finds that the business can only grow to a point and then it collapses on itself leaving him scrambling to jump back into a management role and help prop the business up.

The contractor is running headlong into what John Maxwell calls the Law of the Lid.

Effective Leadership in Construction

John Maxwell, the world renowned expert and speaker on the topic of leadership offers this simple definition of the Law of the Lid.

Leadership ability is the lid that determines a person’s effectiveness.” – John Maxwell

The Law of the Lid states that a business will only achieve a level of success that matches the leadership abilities of its leaders. Simply put, a business cannot achieve any level of success that goes beyond the level of leadership achieved by the leaders who are operating the business.

Some companies and their owners repeat these cycles continuously, never finding a way out of the gravitational pull caused by the lack of effective leadership solutions in their businesses.

Lifting the Lid: Effective Leadership Solutions for Contractors

In his book – The 21 Irrefutable Laws of Leadership – John Maxwell states that to change the direction of the company it will be necessary to change the leader. Change does not always mean dismissing the leader – especially since the leader is typically the founder and owner of the company! Instead, the leader may need to undergo a transformation and build his or her abilities in order to become a more effective leader for the company.

This transformation starts when the leader recognizes his or her limits. Everyone has their leadership limits. But the good news is that everyone is capable of increasing the limits on their leadership abilities!

Once the leader recognizes their limitations they can start to work on increasing their skills and in turn build those around them. The leader must raise their own lid before they can raise the lid of those on their team. In order to scale a construction or remodeling business, the leaders must be able to build those around them.

For more information on How to Build Leaders Within the Construction Industry CLICK HERE to explore Construct-Ed.

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