THE CONSTRUCTION PARTNER OF CHOICE
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HOW TACON REDEFINES ETHIOPIAN CONSTRUCTION WRIT TEN BY
DA LE BENTON PRODUCED BY
S TUART IRVING
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Through a companywide transformation and world-class service delivery, TACON is the Ethiopian construction partner of choice
A
s a proud member of the TAF Group, Tekleberhan Ambaye
Construction PLC (TACON) is a team of innovative, committed and engaged professionals who strive to deliver and exceed on the diverse expectations of all its stakeholders. While engineer Tekleberhan Ambaye Fanta made his name as a philanthropist and businessman, the construction
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company he established in 1993 served
average growth rate of 167%. The
as a springboard for the group that has
service segment of the company has
now become one of the leading diversi-
also grown to provide a full line of
fied Ethiopian business firms.
infrastructure development services,
Over the course of the last 25 years,
including among others: construction
rapid growth and an ‘obsession with
of highways and airport runways; civil
performance and speed’ has seen
works of railways and water projects;
TACON certified as an efficient and
massive earthworks; specialist pile
renowned Class One Ethiopian General
foundation excavation services; and
Contractor (GC 1).
industrial plants.
Over the last seven years, the
But what is the secret to this
company has seen its annual revenue
success? For Seifu Ambaye, Chair-
increase by 1,167%, maintaining an
man and Chief Executive Officer, it w w w.t a c o np lc. com
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has been a drive for total client satisfaction as part of a major strategic transformation. “Since I took up the post of TACON’s Senior Deputy General Manager in 2010, I embarked on a radical transformation of the company’s strategy, ushering in a new era of project management and internal efficiency,” says Ambaye. “With the technical support of Ernst & Young (EY), the TAF Group has recently formulated a growth strategy that aims to gain competitive advantage and demonstrate institutional effectiveness through growth goals in the areas of financial, customer and market and internal processes.” The unmatched growth of TACON is very much characterised by a mixed bag of both solid opportunities and substantial challenges. Through time, Ambaye came to realise
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“ With the technical support of Ernst and Young (EY) the TAF Group has recently formulated a growth strategy that aims to gain competitive advantage and demonstrate institutional effectiveness through growth goals in financial, customer and market and internal process” — Seifu Ambaye, Chairman and Chief Executive Officer, Tekleberhan Ambaye Construction P.L.C. (TACON)
that the company was marching too quickly to the extent of outgrowing existing capacity. This, in turn, created notable difficulties in meeting the growing expectations from clients for timely delivery of projects, including an inability to shoulder the burden of contractual and financial commitments. “If these challenges, coupled with internal pressures such as ineffective leadership, traditional construction service delivery methods, highly politicised behaviour and lack of
CLICK TO WATCH : ‘TEKLEBERHAN AMBAYE CONSTRUCTION (TACON) P.L.C. FULL DOCUMENTARY’ 106
systems continued to prevail, the
aforementioned internal pressures,
growing malaise would reach an
the company needed to act.
unbearable point,” he says.
“We adopt a project management
“The growing demand placed upon
philosophy that revolves around
the company by its key stakeholders
collaborating with all stakeholders and
allowed us to transform the business-
engage in integrated project delivery,
es of TACON and the TAF Group at
creating detailed activity and resourc-
large as a way-out strategy.”
es plans to meet the client’s scheduled
Tacon identified a number of key
implementation timelines, track project
drivers for this transformation. From
progress and fine tune deviations, closely
the government’s push to develop
monitoring the quality and cost-efficiency
competent local contractors, clients’
of operations thereby completing and
shift in focus towards the timely
delivering the projects on-time,”
delivery of quality projects, to the
Ambaye explains. w w w.t a c o np lc. com
“The result is that we take pride in the
cial, public, educational, residential,
promising outcomes, thus our clients
multi-purpose, health, research and
can always be assured that only the
financial buildings, as well as industrial
most experienced and qualified people
plants and recreational facilities.
are serving them, all the time.” Amongst TACON’s diverse client
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For Ambaye, TACON’s completion of these contracts represent far more
portfolio is a number of government
than enhancing physical infrastruc-
organisations. Over the course of its two
ture; they are implemented exceeding
and a half decades of operation, TACON
clients’ requirements and done so with
has worked with governments to
high quality and value with the view of
undertake numerous complex commer-
ultimately improving the livelihood secu-
rity and economic self-reliance of
philosophy: ‘Counting on Our Human
local people. “From our perspectives,
Capital’ and this is something that
the significance of the completion of
Ambaye continues to drive.
works under contract goes beyond the
“We firmly believe that the company’s
culmination of the traditional client-
prime asset is our human resources,”
contractor relationship,” he says. “In
he says.
fact, our approach has been instru-
“As an organisation we strive to
mental in allowing TACON to become
ensure that everyone has adequate
a company of choice of the govern-
opportunity to understand and be
ments of regional countries.”
committed to take responsibility for
TAF Group was created with a core
their own continued development
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“ The result is that we take pride in the promising outcomes, thus our clients can always be assured that only the most experienced and qualified people are serving them, all the time” — Seifu Ambaye, Chairman and Chief Executive Officer, Tekleberhan Ambaye Construction P.L.C. (TACON)
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needs a promote lessons learnt inside and outside the companies; as well as to innovate, improve and recommend better ways, among others.” These beliefs in the human resources saw TACON establish a Centre of Excellence in 2014. Accredited by the public regulatory bodies, the courses offered by the Centre of Excellence are designed to develop the necessary knowledge, skills and attitude of the trainees meeting relevant Occupational Standard (OS) and remain 111
instrumental to increase the productivity, performance and profitability of the construction industry participants and other institutions. As TACON looks to the future, Ambaye is mindful of the need to strike a balance between short-term goals and long-term ambition. “Our short-term goals are to embark on formulating a strategy that combines internal growth by using the company’s capabilities to develop their own businesses as well as re-engineering operational systems and service delivery processes,” he says. “To achieve the objectives embodied in our overarching vision and
112 mission statements, the leadership will continue to invest in human capital; review the project management and supply chain practices in order to eliminate all service delivery that falls below industry standards. This will allow TACON to continue to stand tall above others in the industry.�
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CMC MICHEAL ADDIS ABABA ETHIOPIA T +251 116 500 000 www.taconplc.com