Blog - Gangbox Incorporated

Ready, Aim...Grow!

noreply@blogger.com (The Gangbox Guys) — Mon, 18 Jul 2011 20:37:00 +0000

More contractors than ever are just "biting at the bit" to determine is the rest of 2011 and all of 2012 the years that we can finally start moving ahead in growing the company again. While this may sound a bit odd to many contractors I think there has definitely been some holding back by contractors to aggressively grow their business. If you and your company happen to fall into this area then let me suggest a few thoughts and ideas to resurrect that growth drive.

First, are you Ready to grow? If growing your business means just hiring more workers and buying more equipment then I would say that you are not Ready. To be "Ready" consider the following items:

* Do you have an updated marketing plan for your growth?

* Do you have a clear idea as to the needs for services in your area?

* Have you gathered your company and crew leaders together to discuss what preparations need to be made for equipment, processes, and people?

Certainly, the previous questions are important and they are not the only questions that should be raised but they do get you started.

The second point is to Aim. To Aim I mean, do you have a clear direction as to where you will be attacking? How will you support your efforts? Do you have the capital to update your company's image, equipment, professionalism, etc.? To Aim is also to have your market plan prepared and also your business plan. Your business plan keeps a balanced look at your overall efforts moving forward.

For many contractors, there has been a lot of scratching out a living over the past few years. However, a surprising number of contractors whom I've worked with over the same years have been quite effective at taking advantage of other contractors who have made poor decisions or have simply gone out of business. True, most of us have never bid work for as low a profit margin as we've experienced over the past 3-5 years but even this has forced many of us to greatly improve our quality both in work processes and preparation.

Is it possible to grow? YES! Don't accept a defeatist attitude; be firm and confident as you move forward. Develop your plan; stick to your plan; and move forward in growing your business with some of the new techniques, approaches, and allowances that we've acquired over the previous few years.

Barring any new catastrophic decisions by our friends in Washington, look seriously at Readying your Aim and push the throttle forward. It's time to break out of this construction funk and once again get this country moving forward.

Give it your best!

The Gangbox Boys

Like A Good Neighbor.....

noreply@blogger.com (The Gangbox Guys) — Thu, 09 Jun 2011 17:49:00 +0000

Several years ago I planted a tree in my yard. Well, actually, the tree-selling company planted it for me. But I told them where to put it (the tree, that is).
The tree hadn't done well the first year, so I had the tree-selling company (now the tree-advice-giving company) take a look at it. They said that it needed more water, and that I should put a 2-foot-radius circle of mulch around it. So I did what they asked to save both the tree and the warranty.

One Friday evening later that summer as I was loading inner tubes and flippers in the car to head to the pool, my neighbor was watering some shrubs in his front yard. I gave him the neighborly "How's it going?". He answered "Good." Then he continued...."Say, Bob, you know this tree you put the mulch around? Well, the mulch is over on to my property a bit." I walked over to look down what I believed to be the property line and said "I guess maybe it is." (it was about 6 inches over the line). There was a pause in our short conversation and he replied "You know, it doesn't really matter to me, but if someone else were to move in to this house someday, they might say something about it".
With a smile, I told him I was getting ready to leave, but that I would take care of it in the morning.

Early Saturday morning I got out a shovel and the wheelborrow and prepared to remove the mulch. Before I got to the tree, my neighbor came out of his front door. He began to apologize for bringing up the mulch issue and said that the tree and the mulch looked great...just leave everything as it is. I assured him that it wasn't a big deal and would change it, but he insisted and after a short back-and-forth, I agreed to leave it as it was.

Some friends of mine commented that they wouldn't have been able to be that accommodating, that they would have "told him where to go". If I wanted to escalate the issue in to a conflict, I suppose I could have. But after our short Saturday morning conversation, we continued to get along well and it was never mentioned again. We continued to have very neighborly relationship. That probably would have not been the case had I "given him a piece of my mind". It wasn't a big deal, although it may have seemed to be a big deal to him on Friday night. Maybe he had a bad day at work. Maybe he gotten some bad news. I don't think that someone having a bad day should change a relationship.

A good friend of mine uses the motto "Treat everyone like a neighbor that you like". I think we need to keep that in mind in the workplace and on the jobsite. When there is a tense or confrontational situation, think of how you would interact if this was a next door neighbor that you really liked. Emotionally escalating a confrontation usually ends with heels dug in, hard feelings, and no real resolution.

Oh, and my neighbor also pointed out that my underground sprinklers were about a foot over the property line also. Hey, how else am I supposed to make sure the mis-planted tree gets enough water?

Why Winners...Win!

noreply@blogger.com (The Gangbox Guys) — Thu, 26 May 2011 02:12:00 +0000

We love winners! And if the individual, or team, was not expected to win that makes it doubly sweet and appreciated. When a winner "repeats" or "three-peats" then there is a mad scramble to determine how such a consistency in winning was accomplished. Let's address a few reasons why winners...win!

1. Winners are Focused!

No surprise here, right? As a construction leader you never expect to "lose." You set your sights high, you communicate those sights clearly, and you remind yourself and others to remain focused on the objective.

2. Winners Expect Challenges & Prepare Accordingly!

No winner expects to go unchallenged. Everyone wants to knock off the best. It's the same in construction. If you think your competitors are not working to "take you out" then you are greatly mistaken. Even good competitors will not give you a break when it comes to trying to outsell you, nicely informing your customers that perhaps your not quite the construction company that they are. Winners expect this and prepare new strategies, provide new services, and take fresh steps to presenting excellence in new and innovative ways.

3. Winners Work Earlier, Harder, and Later!

It continues to impress me when I read of outstanding athletes who, when others are relaxing, are working out, watching more film, perfecting techniques that are already "All-Pro." To be a construction "winner" you must get up earlier to get your day off to the best start possible. You must make more sales calls, do a better job pre-planning your projects, read more prints, know more technical information, and out strategize the competition. And, you must simply work later into the night working to make sure your "troops" are ready for the next day, having all of the resources they will need to work without any downtime.

4. Winners Prioritize Health & Mental Wellness!

i've yet to meet a true champion that didn't take care of their body and mind. To be a champion you must be at prime condition both physically and mentally. it's the same for construction leaders. Take the time to get your sleep and to eat healthy. Eating your way through fast-foods and consuming large quantities of "adult beverages" may appear to be macho when you're young but in time you will become fat, slow of movement physically and mentally. Now, not everyone is capable of working out 2-3 hours a day, we don't have that kind of time but we must condition our bodies to be strong and healthy so that we can outlast our competition. Strong minds make for better strategy making, better leadership, and better decision making when the heat is really turned up.

5. Winners Simply Never Quit!

A winner may get beat but they don't quit on themselves. They learn from their losses and are quick to make good adjustments to get back on the winning track. When construction winners lose a bid to another construction company they contact the customer and ask about their reasons for not selecting them. They don't do it angrily but with a sincere interest about determining if their choice was based on price, presentation, etc.

6. Finally, Winners Plan to Win!

This almost sounds too simple yet this is exactly what great winners plan. Every winner studies their competition and plots their course of effort accordingly. Similarly, construction winners recognize their competition; what their bidding tendencies are and what concessions they'll offer the customer. Then, the winning makes the appropriate adjustments and "goes for it." It isn't always pretty but it is what is needed to get the work.

Winning is not for everyone. Many contractors and construction leaders are only too quick to place the blame on others when they don't get that job they were hoping to win. That's the big difference between contractors who simply compete from those who truly plan to win. You must do your homework, paying close attention to the "little things" that can take you off your game and stay focused on how to win.

Read about winners. Read about athletes, military leaders, great politicians, business leaders, and don't forget those unheralded winners like high school teachers and coaches, and perhaps the greatest winners in our lives, our parents. Study these folks and look to your own efforts and what you an do to sharpen your edge when it comes to developing that winning habit.

The Gangbox Boys!

Preparing Your Crews

noreply@blogger.com (The Gangbox Guys) — Fri, 08 Apr 2011 01:36:00 +0000

This past year my wife and I moved our home of twenty-six years and moved about eleven hours south to be close to our kids. Because we had accumulated a lot of "stuff" over the years we decided to hire a moving company to pack us up, load us up, and move us in to our new home. Boy was I impressed with the boys who showed up to do the work.

First of all, they arrived about 30 minutes early and began getting organized. Each of the four workers appeared to have their own role to play and they wasted no time in executing their role. One worker laid out the different size of boxes across our driveway; another worker placed all the tape and cutters in another specific area; the third worker began lining out all of the blankets and cloth wraps that would be used; and the fourth worker, the supervisor, asked to come in and review the house layout and compare what he saw against what was on paper. This took about 20-30 minutes but man when they started to execute they got going with a lot of clarity and energy.

The demonstration by a bunch of movers, not exactly known as the smartest workers in the world, demonstrated just powerful planning and preparation is to getting good work accomplished. If a crew of movers can demonstrate such excellence in preparation certainly we can move our crews in this same direction.

When you prepare your crews for daily work consider a few of the following techniques.

Give your crews the "big" picture. This normally involves a print, diagram, and pictures of the job site.
Create a list of all the tools, equipment, safety items, etc. that will be needed to complete the job right the first time.
At the end of each day perform a short but specific maintenance check to identify any used item that needs repaired or replaced.
Be sure that the crew has directions to the job-site; contact information; and all the critical information about any odd portion of the work that will require a bit more attention.
Clarify the roles of each crew member so that they each understand what to do.
Give the crew the clear job expectations covering quality, productivity, safety, and the time allowance for the job.

Preparing your crew is not just driving to the job site and then sort of rolling into the job. A crew that is prepared waste less time. They hit the job-site running, get moving at a faster clip, and usually maintain a better pace of work throughout the day.

Spend the time up front to prepare your crews for completing a job and watch your productivity and profitability begin to climb!

Contigencies

noreply@blogger.com (The Gangbox Guys) — Tue, 29 Mar 2011 14:16:00 +0000

My son had a birthday party last Saturday afternoon. Our plans were to have what we referred to as "one of those big outdoor bouncy things" for the kids to play in. With March weather being what it is in the midwest, cold temperatures and snow flurries changed our plans. The party of 12 young kids was now going to be indoors.

We had thought about this possibility leading up to the weekend, but were still not as prepared as we could have been. I believe our subconcious mind was telling us we would have great weather and not to worry too much. Coming up with several hours of activities for kids with short attention spans is a challenge, even with the best planning and preparation.
Two minutes into the first activity, three kids came up to me and said "I'm bored". Fortunately this was not the norm, and the others seemed to enjoy playing in a room full of balloons just fine (some of the balloons even had air in them).The day worked out and everyone seemed to have a good time - even Mom and Dad. But it reminded me about the importance of truly having contingency plans.

To often, whether at home or at work, we don't really plan for contingencies as thoroughly as we should. And the lower the chance (in our minds) of something happening, the less time we spend thinking about alternatives. Even if there is only a 10% chance of a certain event or interruption happening, we need to have a plan for that situation just the same as if there were a 50% chance of it happening. The 10% that we don't plan for is often what ends up costing us 30 or 40% in lost time and money.

As it turned out, our project (birthday party) seemed to be a success, but our customer success measurements (enjoyment by the kids) may have been even higher with a little more thought on the contingency end. There would definitely have been less anxiety on the part of the project managers. When the parents began to show up for their kids, there was a scramble to find their shoes in the big pile by the door. After all the kids were gone, my son's shoes were the only pair that remained. When he tried to put them on he observed that while they were exactly the same make and style of shoe, one was considerably smaller. Someone had gone home with a wrong shoe. It wasn't until Sunday that we also noticed they were both for the right foot.

What is Ignorance Costing You?

noreply@blogger.com (The Gangbox Guys) — Mon, 07 Mar 2011 13:36:00 +0000

There was a bumper sticker years ago that I saw that stated, "If you think education is expensive, try ignorance!" I know the bumper sticker exist because I've got a copy of it framed in my office. While this sticker was no doubt more directed at our public education process it also speaks to the very heart of most of us in construction.

If there were ever a time to be educating workers it is today. Why? First, most observers of our public education system claim our kids are not getting the education that they were twenty to forty years ago. Second, more of our workers are coming from non-agriculture backgrounds where many workers in the past were schooled on the basics of mechanics and fixing things. Third, a greater percentage of our construction workers will be retiring over the next 3-5 years per our own government statistics on the aging workforce. Fourth, it is even more costly to find the "right" employee in today's increase of poor performers who may have been laid off from other companies.

When I challenge contractors about the need for educating their workers to their tasks, roles, and how to be more professional in their conduct I often get back, "I don't have time to train." My response to that is...you don't have time not to train. Briefly, consider how many days you may not have your guys working due to inclement weather? For many contractors that might add up to 2, 4, 6, even more days a year. Some, if not all, of these days could be used for training. The problem isn't that we don't have time for training but rather we are not prepared to train!

Commit today to educate your workers. Take just one task that most of your workers may be struggling with such as the proper handling of material or how to operate a piece of equipment. Might even be the proper pre-work maintenance checks on tools and equipment. Whatever it might be gather your thoughts, write down a few notes, and on the next rainy day spend 1-3 hours training your folks on the needed skill.

Educating your workers is actually quite inexpensive if you are reading for it! Get ready!

Positive Discipline

noreply@blogger.com (The Gangbox Guys) — Thu, 03 Mar 2011 15:48:00 +0000

My wife, Beth, and I often discuss issues that we deal with in our careers - mine in construction leadership and hers in elementary school counseling. She talks about handling various sitiations children often find themselves in, and I'll relate stories about how construction leaders have handled various issues on the job site with their employees.

It's always interesting to me that the methods that are used to modifiy children's behavior are often quite similar (if not exactly the same) as the methods that we want to see employed by our construction leadership. I believe most people out in the workforce want to do a good job, and the reasons they may not are vast and complex. But how we deal with our people, teach them, and discipline them is going to directly impact the quality of work we get from them.

Dr. Jane Nelsen has written several best-selling parenting books on positive discipline, and Beth has this quote of Dr. Nelsen's hanging in her office:

Where did we ever get the crazy idea that in order to make children do better, fisrt we have to make them feel worse? Think of the last time you felt humiliated or treated unfairly. Did you feel lik cooperating or doing better? Children do better when they feel better.

The same goes for adults. Think of the last time (maybe long ago) that a supervisor embarrassed or demeaned you, even if it wasn't in front of anyone else. Did that get you excited about giving your best? Did you look forward to getting up the next morning and heading to work? In the high-pressure construction world, we often overlook how our leader's behavior affects our employee's behavior. If we want to get best from our people, we have to treat them like they are the best.

Planning is for Winners

noreply@blogger.com (Brian McMurray) — Tue, 20 Jan 2009 06:00:00 +0000

I've just completed a two day visit with an incredible contractor. They are not very large in revenue this past year; they did a little more than five million dollars in sales. However, what they made would easily be envied by many contractors, no matter the size.

Looking deeper at the reasons for their prosperity it was glaringly obvious. They control their expenses! How? The answer is even more simple...and obvious. They PLAN!

Each Monday morning they hold an employee wide meeting that reviews and reminds each crew as to their work schedule for the week. In front of everyone each crew provides their strategy to get the week's scheduled work completed. Normally this type of meeting is attended for crew leaders, estimators, schedulers, and owners. Not at this company, everyone is there. In fact, members of each crew actually provide the strategy and execution plans for the week.

The second obvious aspect of planning is what is completed for each project completed. Each morning each crew meets to discuss what is needed for that day. No truck leaves the yard until every truck and worker has exactly what they need to complete that day's work. At the conclusion of each day the crew then reconvenes to discuss what happened during that day of work and then discussion about what will be needed the following day. The crew leader takes notes, if needed, on each meeting.

Now, many contractors hold meetings such as described in the previous paragraph. What then makes this contractor's effort unique? Quite honestly, it is the amount of detailed thinking and planning that takes place. Let me briefly share some of the critical components of successful planning that is embraced by my contractor friend.

First, the plan for the day's project(s) is documented. Each day the crew leader documents specifically what the particulars for that day are, including:

Material need

Labor need

Equipment/tools need

This is merely the beginning. Next, the crew discusses:

What preparation is needed?

Who will complete the preparation?

What is the method or process that will be followed to execute the project?

Confirmation of understanding of the prints or drawings?

For many contractors, the previous questions may appear to be overly simple and assumed. My experience with contractors however leads me to believe that the leaders may in fact raise these same questions however they are most often raised inside the leader's head. Most crew leaders do not discuss this information with their crews. This is a tactical mistake that leads to misunderstanding and a waste of worker's time on the job site.

Another final effort that is practiced by contractors really on their "A-game" is the allowance of questions to be raised by the crew workers, the very people who will be executing the plan. Engaging your crew in the planning phase of any project, no matter what the size of the project is, will breed greater attention to details, more focused energy on getting the needed results, and actually reduce wasteful costs due to workers lack of knowledge or understanding about the project needs.

In review then let me outline what you need to do to make planning more of a positive and effective tool and technique.

Document your plans for each project. (Don't assume anything by anyone!)

Engage the actual workers who will be completing the scheduled work in the planning discussion.

Ask the same questions for each project, such as:

What are the Material, Equipment/Tools, & Labor Needs?

What preparation must be accomplished prior to starting project?

How can I best position my crew to complete the work in the most cost effective and quality manner?

What contact(s) must be made with the client, other contractors, suppliers, etc.?

Are our copies of drawings/prints complete? Any changes needed?

Conduct a "Post Mortem" on each Project. Discuss lessons learned, needed adjustments for the next project.

There really isn't anything unusual or extraordinary about the four point outline. What is unusual and extraordinary are the contractors who are disciplined to practice their planning efforts consistently, no matter the size of the project. Contractors cost themselves greatly when they pay little to no attention for planning on smaller jobs. It is often the smaller jobs that can cost you the most!

Planning is more than simply scheduling future work. It is the methodical breakdown of everything that will be executed to complete the project that moves a contractor from average to superior. For my money, focus more on planning and you will see greater return for every dollar spent!

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Building Value for an Exit Strategy

noreply@blogger.com (Brian McMurray) — Tue, 13 Jan 2009 06:00:00 +0000

Jack had owned and operated his pavement maintenance company for almost twenty-nine years and with the exception of a few lean years in the early eighties had witnessed his company's growth each year. He and his wife, Jerri, had put two kids through college, one that had joined them in running the business after they graduated. After two years the "kid" was beginning to get a feel for the financial aspects of the business. Jack and Jerri were beginning to wonder if this wasn't the right time to start thinking of turning the reins over to their son.

If you are a little gray around the temple this scenario is probably all too familiar. If you are just beginning your upward path in ownership this same scenario will become familiar, maybe earlier than you might imagine.

In this article I would like to give you a little taste of what we will certainly discuss further at the National Pavement Exposition 2006 in Charlotte in my workshop by the same title as this article. For a business owner, the second most important objective to accomplish after running a profitable business is to insure that their exit strategy from their company is done seamlessly, without even a faint dip in production, loss of invaluable people, and profits.

There are three simple "laws" to building value for your exit strategy that I want to present in this article.

1st Clarify Your Life's Purpose/Mission
2nd Define Critical Roles & Responsibilities
3rd Entrust Your Company to Knowledgeable People of Character

Clarify Your Life's Purpose

It is extremely vital to your own mental health that you are clear about what you "want to do with your life." Having a plan for the next part of your life is smart and life saving. Many contractors go crazy when they finally leave their business think that retiring to golf, fishing, traveling, or taking care of grandkids is going to satisfy their thirst for satisfaction. I know because I've been engaged with many pavement maintenance contractors who have struggled with letting go of their business.

Before you ever begin to plan a transition you must come to grips with what you will do to occupy your time once you've really exited your company. You can always fish, travel, etc. Heck, you can do that before you exit. No, you must begin to consider what more with your life do you want to develop. Let me share a few brief examples of what some of my retiring friends have done once they left their construction business.

Served on boards in a consulting position.

Provided business advice to small company owners.

Joined a ministry that engaged their business knowledge or construction experience.

Acted as a trainer for their company of new employees.

Moved into a "business development" role for the business.

Now, not all of the possible roles to move to require a full week of work. For many owners they want to keep the taste of competition fresh in their spirit without knocking themselves out for forty to sixty hours of work each week. Based on my observations of many pavement maintenance organizations having an experienced veteran around for advice giving or simply just listening can strengthen the overall productivity of the business.

If part of your purpose is to remain connected to your company it is just as important that you realize just what role you will play and the contribution you intend to make. That leads us into the second law to consider enforcing upon yourself.

Define Critical Roles & Responsibilities
You will do more harm than good for those left behind to lead your company if you do not define the critical roles and responsibilities of those individuals. Even if it doesn't appear that there will be much of a turnover of people it is still good business acumen to sit down well before you exit and clarify who will be doing what, when, where, and how.

If your son or daughter will be taking over the reins of the business then it is very important that you assist them in spelling out what their job will require. Likewise, it will be helpful to your child that other leadership positions in the company are well defined. This effort is especially beneficial if many of the other leaders in the company had been hired and led by you over the years. These employees will only naturally feel some remorse with your departure about having to deal with "Jr."

Once you have defined critical roles and responsibilities for the company it will be good to have the people represented by the roles to meet and discuss openly. This will facilitate a better understanding as to what the new chapter in their life will read like. It will also assist your son or daughter in positioning what they will want and need from those individuals in the positions defined.

Should you remain in some capacity for the company then you need to be very clear as to what your role and responsibilities will be. For example, if you had developed good relationships with bankers then perhaps you might continue to operate in this capacity for a period of time. If you handled relationship control with material vendors but feel that your successor should handle this important duty then you must be clear in your role going forward not to allow the material vendors to complain to you when your son or daughter do something they (i.e. vendor) do not like.

If your spouse has been the book-keeper and intends to exit with you then you will also want to tighten up their new role. It is very common to have the spouse, who for twenty-nine years made the deposits, called on late payments, corrected payroll mistakes, etc. find it difficult to walk away. This must be clearly defined as well or there will be a quiet rebellion brewing by those left behind to take over book-keeping tasks.

Entrust Your Company to Knowledgeable People of Character
Our third law seems obvious yet often the exiting owner is blinded by old ties or quite fears that their son or daughter may not quite lead the business as they once did. This can lead to the owner entrusting key positions to individuals who might have the best interest of the exiting owner in mind but not necessarily that of the owner's replacement.

It is vital then that key positions, including that of the actual replacement for the exiting owner, be filled with people who are bright, knowledgeable, a good "student," and one of unquestionable character. This effort must also be just as strictly followed for the selection of the owner's son or daughter.

One of the most difficult decisions a parent might make as a business owner is recognizing their son or daughter for the strengths and weaknesses they possess. If the son or daughter simply lacks the needed skills, knowledge, or worse, questionable character, the parent/owner has no business positioning their child in the chair to run the business.

As challenging as this situation might be the parent/owner would be better off dealing honestly and upright with their son or daughter about their decision to hire or promote a non-family member to run the business. The child, or children, might yet work in the company but with clarity of purpose and commitment to being a positive contributor to the future success of the company.

Building value for your exit strategy certainly involves additional components than the three we addressed here but we'll address those in my workshop in Charlotte. For now however, realize that it is often the people side to the exit strategy that often causes the greatest heartburn or hard feelings. Be clear about your direction, purpose, and set out a clear path for those who will be taking your company forward.

See you in Charlotte!

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Business Development for Painting Contractors

noreply@blogger.com (Brian McMurray) — Tue, 06 Jan 2009 06:00:00 +0000

Of the items listed below, select those that define business development.

Placing advertisement in local newspaper

Yellow page ad

Buying sports tickets to give to customers

Joining the local Chamber of Commerce

Speaking at your trade association's monthly breakfast

Creating new "point of sell" materials

Sending out direct mail pieces on your business

If you selected all of the above then you are right. Business development engages all of the items listed above. However, if this is the extent to your business development effort then you need to grab an entirely new perspective on business development.

Business development is not just marketing, sales, or advertisements. Business development is the strategic approach that you need to take that sets out a plan on how you are going to grow your business. Business development is not just hiring more estimating professionals. Certainly you may need more people estimating but this alone is not business development.

Briefly, business development is the strategic approach that considers and aligns all of the disciplines known to help grow ones painting business, no matter whether you are a painting contractor, manufacturer, or materials provider.

The strategy involved with business development requires focused attention that looks to dig deep into the community, examining opportunities that need your firm's products and services. Contractors can hire a talented sales and marketing manager, experience success, and still not maximize all the best potential work that is available. Likewise, you can spend a huge amount of money on advertising your firm and realize some terrific returns in business and still not have a real clear focus on where the better business is located or know who the "players" are for your future success.

Let's take a brief peek at each of the components listed above. A few of the components have been combined due to the more common understanding of the items and to the brevity needed in this article. (For more information on any of the items please contact me.)

Marketing, Sales, Advertising
These three are combined due to greater familiarity most owners and leaders have with the three items. Should your business have a marketing strategy? Yes! Should you look for ways to enhance your sales? Yes! Should you spend money on advertising? After a review of where to spend your money...YES!!

However, each of the three items is better leveraged after some of the other components are in place and providing greater information and insights into your market opportunities.

Research
This component engages research of your competitors, growth areas of your market area, demographic studies of forecasted growth by industry type, and even the study of what outside investors are considering your market area.

Spending time and money on research is perhaps the best investment you can make. Research is also not as expensive as you might think. First of all, there is ample information available on the Internet. Also, most of your local colleges and universities are full of students who are either interested, or available, to do research for you due to class projects. Even if you have to pay a college student to research, the cost is often little more than minimum wage.

Several companies provide reams of information at a cost that is often more than justified by you winning just one or two jobs a year coming from the information you acquired from the company. Not to plug just one organization but McGraw Hill's Dodge Report can be a great source of enlightenment for an annual fee. There are other groups out there as well, all providing information that can point your strategic attention to a particular market or industry type.

Benchmarking
You need to track your sales efforts. This can include tracking how many bids you complete, how many you win, and the dollar value of each. You might also track how long such sales cycles are to determine the amount of time that is involved. You should track all of this by geographical areas, industry types, and by range of dollar amount.

The benchmarking comes to play by being able to compare your current numbers with past numbers. This can begin to point you into decisions based on your company's successes and failures and point to where you need to focus your firm's sales, marketing, and advertising dollars.

Community Involvement
Business development also considers where in the community the organization should be more active. Should we sponsor a soccer league for children? Should we be part of the fund raising effort for a local hospital? Should we serve on a local board that can open up doors to our company?

These and other questions should always be reviewed. Community involvement suggests that we should be considering more personal involvement with local banks, schools, hospitals, volunteer organizations, country clubs, etc. You can't do everything but you should be involved with the entire networking process. Business development is really opening up the right doors and establishing the right relationships that can profit the company.

Public Relations
Related to marketing, public relations focuses on how to make your company more visible. The effort might be as simple as placing an announcement in your local newspaper about the newly hired chief financial officer for your company or as complex as paying for radio advertisement about your newest office grand opening.

Public relations examine all the means to getting the word out to the public or your potential client base about your company. Public relations can also be maintained through newsletters and seasonal gifting to current clients.

Internal Resource Alignment
Perhaps the most overlooked component of business development. Business development should regularly consider who is on staff, what the strengths are of the company, and then look for means to leverage those resources to help grow the business.

One quick example will help here. I have regularly worked with contractors who proved without a doubt that their field leaders, whether superintendent, supervisor, or foreman were terrific with clients. Customers would actually take the time to write notes of great appreciation about the professionalism experienced with the leader and their crew. Yet the contractor did little with such feedback, sometimes not even letting their leader know.

If you have terrific field leaders, utilize them in your business development. Build them into your sales efforts. If you do billboards, get their faces up on the board. Leverage such strengths in your overall plan to grow the business. Don't underestimate what new prospects will appreciate knowing about the very people who will be performing their work.

Business development done right is huge. It requires more than just a few hours a year about deciding whether we're going to "buy baseball caps, coffee mugs, or pens." It is an entire discipline that when exercised appropriately, can open the door to greater business opportunities than any contractor can imagine.

It is important to regularly assess the "differentiate or die" position. Business development is that division in your business that is best situated to assist you in making sure that your business is unique and presented in that fashion to your market place.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Giving Your Company a Plan for Success

noreply@blogger.com (Brian McMurray) — Tue, 30 Dec 2008 06:00:00 +0000

John is a typical contractor. He's up and out early in the morning and in late at night. While his wife keeps the books for the construction business she has a little business on the side, a health club for women. Together they have raised two boys; one is in the construction company while the other is in college with no plans to enter the profession of his father.

What makes John typical is that he is hardworking, liked by most of his workers and customers, stays busy most of the year, and seems to always be looking to expand his company but just hasn't found the right time or needed amount of resources. When John asked me to help him grow his business the first question I asked was, "Do you have a business plan?" John's answer was consistent with most contractors, "I've never had the time to develop one." Typical!

Taking your business to greater achievements without a business plan is akin to taking your family on a vacation to no where in particular and not realizing when you have arrived at your destination. OK, OK, maybe that is a bit dramatic. The only saving grace about the failed vacation trip is that you probably didn't flirt with financial disaster. Conversely, you are clearly raising the likelihood of such a financial catastrophe if you do not have a business plan for your company.

I have been working with contractors (like the fictitious John addressed above) for more than twenty years and it continues to amaze me how many contractors are working, some very successfully, on borrowed time. This statement should not intimidate you as much as it should motivate you to pull a plan together for your business that provides direction, believable action steps, and measurements to assist in the "map reading."

While there can be much to include in building a business plan, let me share with you the three primary sections. First, there is the direction that the company sets out to follow. The direction certainly embraces the vision of the contractor for his or her business. Questions such as, "Where are we going? What markets do we want to move into? and, How big do we want to become?" are all questions that should be honestly discussed and answered within this first section.

Business planning looks at the future through more quantifiable lenses. It incorporates a strategic focus, i.e. "Where are we going?", and puts more tangible steps in place. Most of the better contractors I work with have a burning desire to quantify where they are going to direct the company. They set financial objectives, they specify the markets they want to dominate, and they set targets of accomplishments that objectively state where they are going to be at specific points in the future. This might also include how much volume of production they want to contract for during the year such as total yards of concrete poured or finished or square feet of formwork or perhaps how many pavers to install on a weekly or monthly basis.

The direction set out by the business plan should clearly state what markets will be entered or maintained, what resources will be needed to meet the market objectives including the type of workers and equipment, and what the financial requirements to secure such resources will be. The financial requirements will require the creation of a budget, something that many contractors wait way too long to create.

Once the direction is developed it is then critical to create action steps to bring the plans to life. Thus a second section of the business plan is the section that most contractors have little problem creating. This is the tactical effort that most contractors are more comfortable committing to. The key here is to create action steps that are believable. Believable does not suggest that the steps should be easy, but rather, that the steps are justified due to the amount of experience, type of resources, and a method for deployment that the leaders all understand and are committed to.

One brief example of action steps in place might be the decision to add another service to your business. For instance, let us look at a flatwork concrete contractor who is adding concrete counter tops to their field of services. The action steps might include the following list of items.

Identify best market for concrete counter top opportunities.

Review current clients with potential for concrete counter tops.

Determine needed expertise for forming, pouring, and finishing counter tops.

Determine needed tools and equipment for concrete counter tops.

Set realistic goals for concrete counter top revenue for first three years. (Determine optimum profit potential.)

Purchase needed equipment and tools.

Hire needed workers for selling and producing concrete counter tops or train existing employees to do.

Look at marketing strategies and needed marketing budget to support new sales.

Make the monitoring of concrete counter top revenues, gross margin, etc. part of the company's overall effort to monitor business.

The actionable steps outlined above are completely different than how many contractors make the decision to add a service. Far too many contractors make the decision on the fly, almost as a knee jerk response to one customer that has a need. While there are spontaneous decisions to add a service that work out, such decisions more often leave a contractor having purchased tools and equipment that are rarely used in the future.

The third section of a business plan requires more consistency on the part of the contractor. Reading the financials for a business has become a recognized need for successful contractors. More than reading their Profit & Loss Statements or studying their Balance Statements, successful contractors incorporate this third business plan component to create monitoring processes that measure the success of their business objectives. Once again it will take some very practical measurements that can be easily tracked.

While you can measure just about anything you want, consider the following targets that might signal if your business planning efforts are taking the company in the right direction.

Gross Profit for each job completed.

Percentage material use against estimate.

Percentage hours worked against estimate.

Percentage bids won against bids created.

Percentage bids won against goal per market type.

Overtime hours worked versus overtime hours budgeted.

Customer call-backs versus customer call-back target.

Each target above should be quantified if possible. Certainly the items addressed above can be. However, there may be other signs of a growing business that can be difficult to measure. For instance: Does the customer like our company? If so, how much? How will our construction success positively impact our future growth? How can we determine if our customers would purchase more services from our company?

The questions just shared are important to address but admittedly difficult to measure. However, the successful contractor seems to find the method to determine what those answers are and then determine a way to incorporate such feedback into their future plans for success.

For many measurable items, there should be targets created on a weekly, monthly, quarterly, and annual basis. Targets need to be clearly and regularly communicated to the workers who most impact the results. Remember, what is not regularly discussed is quickly forgotten.

Effective business planning requires focused attention by owners and their senior leaders. It is more than simply putting some goals out there and then making a mad scramble to reach the goals. Business planning forces leaders to think more logically, methodically, while also allowing enough wiggle room for adjustments and changes throughout the journey.

If you have never developed a business plan start working on developing yours as soon as possible. There really is not a bad time to create your business plan. You will find however that reviewing and updating your business plans in the future should be done in preparation for each new business year.

If you are a business plan user already don't be limited by what you've already done but rather look to expand the impact that your business plan can have on your business. The more you understand your business the more effective you will be at making better decisions and preparing your business to be led, even transitioned to future leaders and owners.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Casualties of Construction

noreply@blogger.com (Brian McMurray) — Tue, 23 Dec 2008 06:00:00 +0000

Visiting with a contractor recently I was reminded of some of the not so fun things that contractors and construction leaders must do. The not so fun things like letting a long-term employee go due to their growing poor performance, or having to hold a customer accountable to what was agreed to in a contract, or to not allowing an employee to take off a few days due to your schedule needs even after you had OK'd their time off.

I call these examples, and certainly others that might be more painful or uncomfortable the "casualties of construction." These are not illegal, immoral, or unethical type of events but just decisions that a leader is confronted with that has to be confronted or addressed.

The realities of construction casualties reminded me how important it is for an owner or leader to have a good handle on their values, their view of business, and their realistic outlook on making their business successful. Let me share a few insights into what many effective contractors do to handle some of the more unpleasant decisions that must be made.

1. First, be True to Your Personal Mission
No owner or leader can feel like their "life's mission" or purpose is being trashed. A leader must be firm, not arrogant, in their commitment to treat people with respect and to understand that not everyone else in their world will agree with their mission. That's OK, let the others in your life construct their own mission.

2. Develop a Strategic Plan on Running Your Company
Even non-owners who are still leaders need a clear view of how they want to lead their organization or their part of the organization. I love the Old Testament perspective of this insight which says "Where there is no vision, the people perish." Most "followers" in our companies are drawn to leaders with a vision and a plan. Having such a strategic plan keeps you grounded and provides a reminder when things get cloudy.

3. Communicate Honestly, Objectively, and as Accurately as Possible
This is a toughie for many leaders. How do you tell that employee who has been with you for twenty plus years that their performance just isn't making the grade? This is tough! However, it is important to line out to any employee what the need is and how they are doing compared to what is needed. It is important to be honest and just as critical to be objective. Objective feedback suggests that you consider all sides to the issue. Allow others to provide feedback that may not always agree with your perspective. Just allowing others to sound off to you can strengthen their respect for you. Finally, being accurate is the last critical piece. No one likes to be given the wrong information for any reason. Accuracy implies that you are separating the myths from facts.

4. Deal with Confusion or Concerns Professionally and Promptly
It is amazing how strong the rumor mill can be in most construction companies. I've seen just as much confusion in a small company of ten to fifteen employees as I have a company of five hundred. What employees don't understand or are confused about often becomes fodder for the expansion of rumors. When such confusion is present it is the leader who must address this head-on. State the truth and facts as clearly as possible. If the confusion or concern has a touch of confidentiality built in then certainly be sensitive to the confidential issue but if there is no issue here, then clarify the confusion and move on.

Dealing professionally and promptly suggests that you never assign blame to an individual, that is, at least publicly. Stay calm and collected. Don't let the confusion or problems of others rattle your emotional cage and begin to lower your own behavior to less than professional. Such demonstrations often leave the leader looking guilty of covering up some point of interest to others.

5. Look to Turn Problematic Situations into Positive Turn-about
This doesn't require that you be an eternal optimist but it will require that you consider what good can come out of a difficult situation. For instance, a better than average worker quits your firm and those who worked with the individual are uneasy about the immediate future. Immediately consider sharing with those left behind of the opportunities that now exist for someone to step up or for some new approaches to be considered that may have been resisted too in the recent past. Many employees are drawn to the leader who just doesn't put a positive spin on a bad issue but is proactive enough to say, "OK folks, let's quit feeling sorry for ourselves, roll up or sleeves, and get with the program!"

Certainly a leader deals with thousands of decisions a day, certainly in the span of a week. And the manner in which you, as the leader, respond to each and every opportunity is the chance to make a well thought out and prepared decision. I often refer to construction owners and leaders as quarterbacks who must be prepared to "audible" at the line of scrimmage if faced with a defense that poses a problem to success.

You are the quarterback. The "defense" facing you consists of the daily problems and challenges that you must adjust to in order to put your crew or company in the best position to win. Like a quarterback you don't have all the time in the world to react. You must respond in a timely manner with the best "play" possible to reinforce to your followers that you understand the situation and have the best corrective action possible to execute.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Building Alliances

noreply@blogger.com (Brian McMurray) — Tue, 16 Dec 2008 06:00:00 +0000

All contractors, at some point, realize that they cannot do it all. As a small business gains in reputation and builds a strong customer base it becomes even more critical that over scheduled work gets completed...on time.

This situation, while a nice problem to have, requires creativity in meeting customer needs. Such creativity might include looking at building alliances with area competitors to assist you in meeting work schedules. Sounds crazy? Don't say yes just yet!

One elementary mistake that many contractors make is that they seldom say "NO" to a customer's request to complete work. While most contractors think it foolish to turn down work, they are often guilty of promising too much when they do not have the resources to meet the customers needs.

When a contractor takes on so much work that they cannot meet the time needs of the customer they are setting themselves, and their customer, up for a great disappointment. Work that is delayed can become a huge eye soar to the customer, giving them little reason to send work a contractor's way again.

Most contractors want to increase their market share, and turning down work doesn't allow you to dominate your market area...right? Well, since you are probably not interested in learning how to turn work down let's turn our attention to an effort that can sustain your market presence and satisfy your customer's needs. Let me warn you however that this effort, if not followed correctly, can have just as negative result as simply turning down potential work, maybe worse.

Building alliances with other contractors should begin long before you are overbooked with business. Developing a professional relationship with other contractors allows you the opportunity to assess the work ethic, customer focus, and attention to quality that competitors possess. While you may find it difficult to talk openly with competitors, your effort will pay huge dividends later when you are engaged in meeting all of your customer's demands.

What does building an alliance with other contractors look like? Perhaps the tips presented below will enable you to build positive alliances with other contractors in your market area.

Tip #1: Keep a running log of competitors who perform professional work. In your daily travels and interactions within your market area, take note of the work done by competitors. Most good contractors do this anyway but often fail to keep an active log of the competitors and their performance results. Keep a camera in your vehicle and take pictures of such work. You may be able to use such pictures later if ever that competitor is performing work for you.

Tip #2: Invite your competitor to breakfast or lunch. Initiating this tip sends a message to your competitor that you are not threatened by them; that you do not view them as "the enemy" but instead a competitor whom you respect. Such an effort may surprise you both to how open and honest your conversation can be. Often, owners can exchange viewpoints with each other that might be impossible to get from an employee.

Tip #3: Ask your competitor about their commitment to quality, customer satisfaction, and accountability. While every contractor can talk the quality talk, ask your competitor what they have done internally to accomplish such results. Share your own struggles to improve your organizations approach to quality, the customer, and accountability. If you do not get an aggressive response initially, don't fret, it may take your competitor a little while to realize that they can trust you.

Tip #4: Inquire from your competitor whether they would be interested in fulfilling some of your work under your company's name. You should only broach this tip when you have established a relationship with your competitor that is based on trust and understanding. Keep in mind, many contractors are not especially gifted in marketing or selling. Such a contractor could be a perfect match for you if you are strong in such areas.

Building alliances with competitors can be good business for a fast growing business. Such relationships can strengthen your strategies for growth while also meeting your customer's needs. However, several items need to be understood between you and your competitor if a strong alliance is to exist.

First, it is important that your competitor realizes that it is your company's name that is on the line. While they may have equipment with their company name stenciled on it, their workers must realize that it is your company's reputation that will be on the line.

Second, there must be a commitment made by your competitor not to solicit additional work behind your back. Likewise, you must be committed to not talk negatively about your competitor to a customer. Admittedly this issue will be difficult to monitor. However, this is where an alliance must prove itself if any forward movement between the two companies is going to exist.

Third, you must be crystal clear about instructions and requirements that will be met in order to fulfill the job. You must personally take full responsibility to ensure that every piece of information about the job is made clear with your competitor and that their workers fully understand the job needs. You may need to spend extra time monitoring the first few jobs with your competitor until both parties reach a comfort level with each other.

Finally, both parties must realize that even with great communication problems and mistakes may still be made. As tempting as it may be to hold payment for the completion of a job over the competitor's head, this tactic will not build positive and trusting relationships. You must realize the cost of involving others, realizing that your own crews can cost you money in rework.

Approached carefully and thoroughly, building alliances can be a positive experience for you and your competitors. Such relationships can often lead to you taking on even greater amounts and diversity of work than you could normally handle. As you prepare to grow your business, take a personal inventory of your firm's strengths and weaknesses. When you consider your future growth don't overlook your competition, they just might be an answer to improving some weak area within your company that could strengthen your market presence.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

The High Cost of Poor Hiring

noreply@blogger.com (Brian McMurray) — Tue, 09 Dec 2008 06:00:00 +0000

Hiring workers is a costly enterprise for most contractors. In my years of experience I have found most contractor's problems lie in three key hiring areas: recruiting, screening, interviewing, and making the final decision. I'll address each area in hopes of equipping you to be more effective at making your next hiring decision.

Recruiting Candidates
Traditionally, many contractors use some or all of the following techniques to finding good workers.

Place description in the "want ads" of local newspaper.

Post job-opening notice on boards at grocery stores, retail stores, post office, etc.

Place a job opening sign in the window of company building.

Alert local job placement agencies of employee need.

Involve current workers to refer other potential employees to you.

Depending on the position in need any of the above techniques might be adequate. However, if you are not locating enough good candidates then consider a few creative alternatives.

Post your job position needs on the internet. This is a less expensive effort and a surprising number of bright applicants may find your posting.

Offer a "signing bonus." Money talks and people who may be on the fence in a current job might seriously consider your organization if there were an incentive.

Contact local schools. Get to know the local high school "shop" teachers and career professionals in vocational schools, and colleges or universities with construction management degree programs.

Contact local manufacturing and service organizations. Contact the firm's human resource manager to find out about any soon to be retiring employees.

Create your own "job fair." Hold the job fair on a Saturday morning or late Saturday afternoon to draw the employed but interested candidates. You'll need to follow-up quickly to secure the serious candidates.

Screening Candidates

If your recruiting efforts produce candidates you will then begin to pursue separating the "chaff from the wheat." The screening process begins when you first lay out what you want in the position you are hiring for resulting in a job description that outlines the actual work roles, skills and responsibilities.
Once you have formalized your screening needs and requirements you then must learn how to read "through the lines" of applications and resumes. There are a number of red flags of caution that you should raise when you see the following items on an application or resume.

Missing dates of employment.

Inconsistent dates of employment.

Overlapping dates of employment.

Past salary/hourly rate that is higher than expected.

Job titles that are bigger sounding than what job really required.

Lack of consistency in any one industry; hopping around from one industry to another.

Little growth within job career.

Your job is to sniff out such concerns and to confirm the existence of what is right, accurate, and can be confirmed when you check references. You should then develop questions or "proof statements" that address any concern from the application or resume that you will use on your interview.

Screening a candidate's application and/or resume is an important step that should be followed by screening the candidate over the telephone. You can save yourself a lot of wasted time interviewing in person by first calling the candidate.

When you speak to the candidate on the telephone, ask questions that concern you from the application or resume. If the application/resume looks to be in good order, ask the candidate why they want the job and what proof they have that reaffirms them as the best candidate.

Listen to their response to detect if they are stumbling, timid, or confident. Interviewing a candidate first by telephone can often help you focus more on what is said rather than on their appearance. Getting a picture in your mind of the candidate based on their verbal responses may allow you to focus more on their skills and experience.

Candidate Interviews
Avoid making hiring decisions based on one interview alone. No matter how busy your building year is, don't hire the first "warm body" that applies. This is where many contractors lose their shirts on making poor hiring decisions. Here is a simple three-step interview process that you can use immediately.

Step 1: Review application and resume and call candidate on telephone to conduct first interview focusing on basic information from application and/or resume.
Step 2: Select candidates from Step 1 and schedule interview in person with you and others focusing on what they can do and the skills they possess.
Step 3: Select best candidate from Step 2 and bring in for second live interview focusing on what you do and why they believe they are capable of doing the job. Use their past job situations to prove that they are the best candidate.

There are simply no secrets or shortcuts to screening in the best candidate. Having a strategy in place and utilizing the best questions is important to screening in the best candidate. Let's now look at some actual questions to use when interviewing candidates.

As we shared earlier, the first interview can be conducted over the telephone. Consider the following questions and proof statements for the first interview.

Step 1 Questions & Proof Statements

I notice that you have had several jobs in the past 3-5 years. Can you explain why you have changed jobs so often?

This job requires a commercial license. Do you have yours? Is there anything that would prevent you from securing your commercial license?

Do you have any problems being at work, if you are hired, on-time and to work the hours this job will require?

I will need at least two work references. Do you have two individuals that I can call to discuss what type of worker you are?

Briefly explain to me why you want this job and what I should expect from your work performance.

Part of this job will require you to make cost decisions. Tell me of your experience in making such decisions.

The second interview should be conducted at your place of work or a location that is free from distractions. The purpose of the second interview is to dig a little deeper at the skills and experience of the candidate. Use the following items on the second interview.

Step 2 Questions & Proof Statements

List for me the skills you possess and that I would observe when you are at work. Now, for each skill you listed, tell me how often you used each skill.

What are your top three to four developed skills? How did you acquire the skills and how effective are you at the skill?

Teamwork is very important at our organization. Tell me how you fit in as a team player at your last job.

It can get pretty heated during the day with guys getting mad at each other. Tell me about the time you got the most upset with other workers and how you handled your anger.

The final interview should be to take any loose ends in the previous two interviews and bring greater clarity or closure. It is a good time to call any job references that they have given you prior to this third interview. The feedback received may invite you to follow-up with the candidate about an area that has not been discussed. Your job is to determine whether they are the best matched for the job.

Step 3 Questions & Proof Statements

Lay out for me how you performed your last job. Take me through how you organized your workday.

One of your references shared with me that you did a good job of thinking ahead before completing a difficult or complex job. Tell me about the toughest job you had to complete and how you figured it out.

Why should I hire you? Tell me what I will get in you. Give me both the good and the bad.

What improvements did you make in your last job? Did any of the improvements save your last boss money or wasted time? Explain to me what you did and how it saves money or time.

The advantage of three interviews is that you have time to detect if anything changes in the candidate's attitude and responses. A multiple interview process sends the signal that you are very careful about whom you hire.

The Final Hiring Decision
After all the interviewing it still comes down to making a decision. For some contractors fortunate enough to have more than one solid candidate, the dilemma of choosing the right candidate can be nerve racking.

Before making the final hiring decision, consider the following items.

The candidate selected should possess the minimum skill requirements for the job.

The candidate should reflect the type of attitude you want and will accept in the job.

The candidate's personality should match the needs of the job.

The candidate should have a proven track record for learning and improving.

The first consideration listed above should be no problem. Of course you want a minimum level of skills to already be possessed by the candidate, even for beginning level general laborers.

Can you make a hiring decision based on the attitude that a candidate displays or lacks? Yes! If the candidate comes across to you as obnoxious, a "know it all," or apathetic, these are all reasons that may prevent you from hiring the candidate. Work to find out what kind of attitude the candidate has displayed at other jobs.

The third consideration listed earlier addresses the personality of the candidate. While you will never find the perfect personality match, it is possible to align candidates with the personality considerations in a job. Understanding what personality traits would be best in a job can enable you to better match the right candidate with the right job.

Assuming that your company and industry are constantly changing it is important to hire people who have some desire to learn new skills and acquire greater knowledge. Ask the candidate what they have learned to date and what more they need to learn if they are going to stay in the industry.

Do not allow the lack of available good candidates tempt you to lower your expectations and standards. There is nothing worse than hiring the wrong candidate too early rather than patiently seeking the better candidate.

Hiring would be a lot easier and a lot less costly if we could read the minds of candidates or look into the future to determine if a candidate was going to work out. Unfortunately most of us do not possess such skills or talents. Yet utilizing some of the considerations addressed in this article can help you to make better hiring decisions.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Effective Crew Management

noreply@blogger.com (Brian McMurray) — Tue, 02 Dec 2008 06:00:00 +0000

Too little is written to help those who lead the front-line crews toward being better managers of their crews. Notice the word managers rather than leaders. Why the difference?

Leadership is critical to construction, including concrete focused businesses. We need leaders who can motivate, inspire, direct, and coach today's workers. However, just as critical to the overall success of any work crew is the need for the crew to be organized, disciplined, quality based, and timely in their work efforts.

This latter description of efforts falls under the umbrella called managing or management. It is the act of fulfilling the duties necessary to empower or enable the workforce to be at the job site on time, to have all their tools and equipment and to ensure that their materials arrive just in time. Therefore, let's look at a few critical components of effectively managing a crew toward more profitable results.

#1 Management of Direction
There are several components to management that we could begin with but let's look at the need to understand the needed direction of a project that a crew must follow. Direction represents both where the schedule is leading us to accomplish as well as what direction the work crew is heading. The schedule is simple enough but should be clearly understood by the manager (I.e. Superintendent, Project Manager, Supervisor, or Foreman) to understand the length of time involved for the upcoming project or projects. Likewise, the manager needs to fully understand the direction of their work crew. This suggests that the manager understand what their latest performance efforts have produced and are they prepared/capable of taking on the upcoming schedule of work.

#2 Management of Time
Time management is of prime concern to any manager. Time management forces a manager to consider how to best utilize the clock so that vital work efforts are scheduled, complied with, or completed. It requires the manager to work to have the crews prepared with the needed resources to complete the needed work. Job files are clear to read and have the most recent and accurate of information. Tools and equipment are also prepared for working conditions and placed in the appropriate holding spaces to prevent any wasted time looking for either equipment and tools or equipment and tools that work.

#3 Management of Resources
We just referred to working to ensure that needed tools and equipment are ready for our work crews but it is the management of those items that requires the manager to be on his or her toes. This effort therefore requires that the manager develop and manage an inventory management system to guarantee that needed tools and equipment is always available. Then, a preventive maintenance program should be installed that the manager can support that will guarantee that the available tools and equipment are in working order every time the crews need to use the items. Many construction companies fail in the management of their resources and thus spend thousands of dollars a year in crisis management "fix-ups" or wasted time looking for available substitutes from leasing companies or friendly competitors who will give them a "loaner."

#4 Management of Finances
Perhaps the lease effective managing that is completed by construction leaders is the management of their project finances. Managing finances requires that a manager understands what the budget for the job or project is; that is, what the estimated costs and expenses are for labor, equipment, tools, and materials. Managing your finances requires that you know what your labor rate is for your working crews. In other words, how many square feet of formwork can they build in an hour as a crew? Or, how many cubic yards of concrete can your crew pour and finish in an hour? If your work crews are producing at a slower rate of production than was used for the estimate you will find it difficult to make money. Likewise, if your crews are producing at a faster rate than was used for the estimate, then you should see greater profits from the production effort, barring any problems with quality or safety.

#5 Management of Quality
All construction companies say that they do quality work but few actually manage the process to achieve quality. Effective management of quality requires that the manager recognizes any existing work processes or procedures that were developed to produce good results the first time. This is very critical for construction companies as doing things right the first time guarantees a higher profit margin on work produced. Therefore, the manager should be diligent about making sure that the crews are organized and have everything that they need before leaving the yard each morning, that they are following proper site work preparation, work flow, and safety processes while at the job site and, that they are staging the job and their vehicles at the end of the day for what they will need to do when they begin early the next day. The manager's time spent here will often produce quantifiable results on the very next job.

#6 Management of Coordinating Schedules
Most construction companies recognize that there are several specialty sub-contractors at work at the same time and at the same spot on the job site at any given time. Therefore, the wise manager builds this into their knowledge and looks to coordinate their own work crew's schedules with those other crews who will be at the job site. Too many crews have been prevented from working on a given day only because their manager failed to contact other managers to confirm arrival, starting, or completion times. Such an oversight can cost a work crew precious time completing their own work and prevent them from achieving the profitable performance results they were hoping to realize.

Certainly the six management components listed in this article should help broaden the scope of any construction superintendent, foreman, project manager, project engineer, or supervisor. Again, let me stress, moving our construction bosses to be leaders is critical also. I should know as I have written about or provided leadership based training and education to thousands of construction leaders over the past twenty years. However, I still find that many of these same leaders are horrible when it comes time to really planning out their work crews day, week, and month. Just because a leader is gifted with inspiring others to do the hard things in construction doesn't necessarily mean that they are fully capable of putting a job file or schedule into their workers hands and have their crew members understand what they are scheduled to complete.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.

Are You Holding Spring Training?

noreply@blogger.com (Brian McMurray) — Tue, 25 Nov 2008 06:00:00 +0000

With professional baseball players reporting to Spring Training camp, the baseball season is just a few short weeks away. While I'm not a huge baseball fan (they all make too much money except Mark McGuire and Sammy Sosa) I still get a little excited to know that I can read the sport page and have a few more things to read besides the problems of Mike Tyson or the dramatic antics of Dennis Rodman.

Actually, the interesting thing about all professional sports is that each team conducts some form of pre-season schedule. For four to six weeks, sometimes more, the highest paid athletes in the world are brought together to learn the basics of their sports all over again.

Now, this still makes me laugh at the thought of Roger Clemens learning how to throw his 99-MPH fastball again. Or consider that some coach, making $50,000.00 a year, will be telling Mark McGuire that he is moving his front foot too much or that he is dropping his elbow when we swings the bat.

While it may funny to have supposedly professional athletes learning the basics all over again, it does point to a common truth. Unless an individual is constantly at the peak of their performance, it pays to revisit the basics from time to time.

If your contracting business is seasonal, I strongly suggest that you bring your employees in early and review all of the job roles and processes that they will paid to execute flawlessly. Start with the basics of teaching them, again, what the tools of your trade are and how they are to be properly used.

Even if your business is not seasonal, bring your employees together on a quarterly basis and have the employee demonstrate proper handling of tools or equipment. Invite local suppliers or manufacturing representatives in to your organization and instruct on the best use of material, or tools, or equipment maintenance.

Spring training is also a chance to assess the talent represented by your employees. Create your own spring training to review strengths and weaknesses of your employees. Target needed training issues and develop a plan to provide the needed training and education for your people.

While assessing your employees also decide who the leaders are among the group. Decide whom the morale problems are going to be and meet with them, spelling out in very specific ways what you will accept and will not accept from them. Educate your people on the values of your organization; how important the customers are; what they can do to make more money.

I recall a story about the great football coach, Vince Lombardi. It was said that he often began his first day of football "summer" camp by introducing his players to what a football was and how it is to be handled when playing the game. Can you imagine a room full of professional athletes having their coach say, "Gentlemen, this is a football."

Another story I recall is told of the great college basketball coach John Wooden. It was part of his first few days of basketball camp to personally instruct his players on the right way to wear sport socks and to lace a basketball shoe. Coach Wooden realized that a great many injuries result form sprained ankles and blisters on the bottom of player's feet. Emphasizing even how to lace a basketball sneaker provides a clear picture of how serious Coach Wooden was about doing the little things right…the first time.

So, there you have it! Do you think a "pre-season" camp would be helpful to your employees? If you do not think such a time would be beneficial, look back at the past six-month's performance. How did you fare? What mistakes were made…again and again? Take these issues and hold your own "spring training." Who knows, you might just begin a season where you see every record you've every set be broken!

Conflict Resolution for Construction Crews

noreply@blogger.com (Brian McMurray) — Tue, 18 Nov 2008 02:44:00 +0000

It's inevitable. A seasoned superintendent, an impatient foreman, and a "no-it-all" project manager begin heated discussions on the best approach that will give their project a jump ahead of the schedule but will incur more cost than was budgeted. Words are thrown out seemingly to first drive home a point of experience but the words quickly get heated and are soon miss-interpreted as "incoming". Within just a few minutes these three construction leaders are almost moved to a physical altercation. The superintendent storms out of the trailer, after kicking over the water cooler, the project manager heads back to his room to email his latest complaint about the situation and the foreman finishes his cold cup of coffee and eases on back to his crew convinced that he is the only right thinking leader on the job.

This scenario is repeated hundreds of times a day across the country construction sites. Whether your construction company builds mammoth hospitals or whether you operate a small specialty trade flatwork company, the same potential for conflict exist. But how do we resolve such conflict that can damage relationships, sabotage performance, and leave fewer profits in the end?

Conflict must first be understood before it can be resolved. Briefly, conflict is inherent in any work environment where there is more than one individual at work. It's just human nature to consider personal preference over the opinion of others. In the construction industry, there is no shortage of workers and leaders who feel that their way of performing, making decisions, or addressing other individuals is superior. It takes a willingness to listen to the "other side" to prevent conflict or to resolve differences.

So, what is the source of most conflict within a construction crew or project? Generally speaking, most conflict begins when there is a difference between two opposing points of views or between the two individuals who hold those views. The opposing views might be based on different opinions or they may be based on different interpretations of some single source such as the interpretation of a drawing, a budget, a procedure, or regulation. No matter the source type, a conflict develops when there are differences.

Before we review some solid conflict resolution techniques, let's be fair to the topic of conflict. Not all conflict is bad. In fact, if the two "parties" engaged in the conflict are mature, much improvement can come out of diverse opinions and experience. It would be fair to say that many of the best solutions on most construction sites, among even the most emotional of crews, probably came as a result of some momentary conflict.

Now, let's consider key steps to resolving conflict.

First, recognize that conflict is normal.

Seek to understand the "root" of the difference.

Strive to keep cool heads from heating up.

Consider personal "baggage" that some individuals may be carrying.

Remind those involved with the conflict of the desired business result.

Brainstorm for possible solutions that support reaching the desired result.

When necessary be very clear about the "non-negotiables."

Come to an agreement, without pulling rank if possible.

If agreement is reached, follow-up with conflicting parties to test adjustment.

If agreement is not amicably reached, senior leader makes decision and communicates needed action to involved individuals.

Let's briefly address each of the steps.

First, recognize that conflict is normal.
Conflict is as natural to construction employees as breathing. Remember, not all conflict is bad!

Seek to understand the "root" of the difference.
Conflict often arises due to misunderstandings. Always get clarity on the issue at hand. Seek to get to the real root of the confict; allow the different parties the time to fully explain their perspective. Work to have conflict parties to both agree to what the root issue is that is causing the conflict.

Strive to keep cool heads from heating up.
Cool heads typically come to resolution sooner and that means less time is wasted on disagreeing. If "temperature" is rising, call a time-out, separate for a short time before reconvening. Bring a little humor into the situation without making fun of those who are in conflict.

Consider personal "baggage" that some individuals may be carrying.
Some conflict parties simply can't let go of past wrongs done to them or some past negative experience that they have always carried with them. Considering a person's "baggage" doesn't mean not holding individuals accountable but it often explains why some folks take a particular negative approach or position that can contribute to conflict.

Remind those involved with the conflict of the desired business result.
When conflict happens many individuals become selfish or self-serving. It is very critical to remind those involved, if necessary, that "it's not about them." the ultimate result must achieve the desired business result even if it means that one or more parties must give up something. This step isn't as much "cold" as it is realistic that construction is a business and as a result not everyone gets their way all the time.

Brainstorm for possible solutions that support reaching the desired result.
Eventually the conflict parties must brainstorm for possible solutions. The effort here must stay focused again on the desired business result… "What is the best decision for this situation?"

When necessary be very clear about the "non-negotiables."
There is little reason to get all chaffed about what cannot be changed. Maintaining conflict over federal, state, or town requirements for building makes little sense. Whatever the "non-negotiables" are for any situation that is experiencing conflict should very clearly be communicated and recognized.

Come to an agreement, without pulling rank if possible.
If the conflict is between a boss and employee the temptation is to have the boss pull rank and force the conflict resolution. While there may be a need to do that it is always better to have the conflict parties, no matter their rank and relationship to each other, come to a mutual resolution effort. Rank pulling often leaves one party the "loser" and looking to get revenge.

If agreement is reached, follow-up with conflicting parties to test adjustment.
Whenever conflict is reached it is wise to follow-up with those parties involved to see how they are adjusting to the resolution and what issues may still exist. Following-up also reinforces to both parties that the conflict, although uncomfortable, produced a better than expected result.

If agreement is not amicably reached, senior leader makes decision and communicates needed action to involved individuals.
While this step is not desired it may represent reality. If the conflict must go to a higher power to resolve then the senior leader had better be very clear about what is expected and what the consequences will be if a resolution is not supported or maintained. This is the least desired step to take but at times it may be the only final step that can be taken.

I've tried to present some additional ways to resolve conflict that may not always be formally taught. While conflict is quite normal for construction crews it does not mean that we as leaders should not address the conflict and look for positive and proactive means to resolve conflict. Certainly conflict within a construction crew, like within any relationship between people, leads to communication bread downs and lower productivity.

Brad Humphrey and Bob Dusin are partners at Gangbox Incorporated, a training and consulting company that targets the construction industry. They work with all aspects of the construction business - job planning, job costing, sales and leadership development. For more information about Gangbox Incorporated go to http://www.gangboxinc.com.