Crisis Management and Profitability on a High-Pressure Hospital Construction Project

The context:

The risk of financial failure. A major construction company is managing the renovation of an operational hospital facility. In this highly regulated setting, the slightest planning error can delay patient care and trigger substantial financial penalties. The project is three months behind schedule, and margins are disappearing as daily emergencies take over.

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La Boussole's diagnosis:

A failing control tower. Our analysis shows that site managers are excellent technical professionals, but have no tools to manage flows or profitability in real time. The site's supply chain is reacting to events: materials arrive too early, creating congestion, or too late, bringing work to a halt.

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The solution:

A practical, on-the-ground approach. We deploy a solution combining learning design and operational support:

1. Managing flows in a healthcare environment: introduce just-in-time deliveries synchronised with the hospital's activity windows to ensure service continuity.
2. Financial management training: teach site managers to read a project P&L and connect schedule adherence with margin protection.
3. Supply chain resilience: secure critical supplies through renegotiated framework agreements incorporating logistics flexibility clauses.

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The outcome:

Back under control. The project was delivered with a final delay of just 15 days, recovering 2.5 months. Operating profitability, initially forecast at 2%, rose to 4.5% by eliminating additional costs from emergency logistics and penalties.

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