Jim Fowler is CEO of Novo Construction, a minority-owned business and commercial contractor based in Menlo Park, California. The opinions are the author’s own.
The construction industry is a cornerstone of the American economy, shaping the nation’s physical environment. However, it lags far behind in diversity, equity and inclusion.
While some in the construction industry may overlook the importance of DEI, the business case is compelling. A McKinsey Study 2020 highlighted that companies with a diverse workforce are 35% more likely to financially outperform the national industry average. This is because diverse and inclusive companies excel at serving their workforce, communities and customers.
I have seen this truth firsthand. As the CEO of NOVO Construction, a certified minority business firm, I have drawn on my experiences as a first-generation Chinese-American to build diversity into our company’s DNA.
Jim Fowler
Permission granted by Novo Construction
Many only pay lip service to inclusion. However, at NOVO we point to it as a key driver of our growth. We started as a team of three right when the dot bubble burst in March of 2000. Today, we are proud to employ over 300 people.
I truly believe that the decision to seek diversity among our leadership team, partner with community organizations that support DEI, and advocate for diverse subcontractors are the main reasons why we are now among the top construction companies in the Bay Area’s largest and largest interior tenant improvement contractor.
The proactive approach is not easy. But, we’ve found that the rewards far outweigh the effort when you use the right strategies. Here are five suggestions that can help your company succeed in its own DEI efforts:
Articulate your purpose. Pursuing DEI is crucial for ethical and business growth reasons. My heritage shapes Novo Construction’s diversity strategy, which is rooted in relationships. After my father’s death when I was 19, his colleagues mentored me, emphasizing the power of fully utilizing individual talents in business and life. Articulating your “why” for DEI ensures leadership support and effectively conveys its importance to the entire workforce.
Prioritize diverse collaborations. My journey to CEO was shaped by the unwavering support I received from others and the belief that fostering customer relationships and community engagement are paramount. At NOVO, these principles drive our commitment to exceptional customer value and a vibrant and diverse work culture.
Prioritizing inclusive hiring is an essential element of our strategy. Thus, half of the leaders of NOVO Construcció are women. In addition, through our “NOVO for Change” initiative, we collaborate with organizations such as Girls Garage, which aim to promote female representation in fields like ours. Embracing these diverse partnerships enriches our community and broadens our spectrum of talent.
Promote education and responsibility. Diversity training and accountability are vital to addressing bias in the construction industry. My father taught me the value of taking a hands-on approach to leadership, and the managers and executives at NOVO Construction are always willing to roll up their sleeves and get the job done alongside their teams.
We offer ongoing training on unconscious bias, cultural understanding and inclusion. Ensuring accountability is crucial; without repercussions for inappropriate behavior, it will persist.
Leverage employee resource groups and mentoring. Mentoring plays a critical role in fostering unity among employees with shared experiences, informing leadership about the needs of minorities, and shaping impactful policies and events. The knowledge and wisdom of my mentors have been fundamental to my career. At NOVO Construction, our mentoring initiative, led by our DEI Director, Sarah Garcia, pairs underrepresented staff with experienced leaders, facilitating their career advancement.
Encourage diversity beyond your immediate team. DEI extends beyond company leadership to subcontractors, vendors and suppliers, forging a network of companies with aligned values. Prioritize diversity in your supply chain by establishing clear selection criteria.
We are auditing our list of subcontractors to verify various partners and their certifications, and through proactive outreach we have added over 100 diverse subcontractors to our supply chain. As industry leaders, we support our diverse partners, making sure they don’t feel too small for major projects. We provide advice and often segment offer packages, enabling smaller businesses to participate effectively.
The construction industry is at a crossroads, with an opportunity to reshape its future by embracing diversity, equity and inclusion. Remember that inclusion efforts must be ongoing and fully integrated into your company’s values and practices. By embracing DEI not just in word, but in deed, the construction industry can unlock new opportunities for growth, foster innovation and create a more resilient and prosperous future for all stakeholders.
