development – Page 34 – Pinnacle Development Group

[AUDIO] The Casualties of Construction

Every contractor deals with daily problems and challenges that must be adjusted to in order to put his or her crew or company in the best position to win. Like a quarterback in football, construction leaders 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.

Learn more in today’s Learning While Listening podcast, “Casualties of Construction.”

[TRANSCRIPT]

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.

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.

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.

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.

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.

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 will be presenting eight different seminars at the upcoming World of Concrete 2008. Plan on attending one or more of Brad’s sessions and find more secrets and techniques to being the best leader you are capable of being!

Colby HumphreyNovember 28, 2016Leadershipbrad humphrey, Construction, development, leadership, training

[AUDIO] Speeding Up Sales

Speed is the name of the game for every contractor. You don’t have speed you don’t have a future. Speed demands that everyone “raises their game” to the next level of excellence. Focus on making your entire sales process faster and you’ll not only raise your sales revenues this next year, you’ll also see a rise in margins that you can begin getting due to better cost controlling and job efficiency by your field crews.

Learn more in today’s Learning While Listening podcast, “Speeding Up Sales.”

[TRANSCRIPT]

When contractors tell me they need more sales, my first question is always, “What is your current cycle time for your sales process?” That is, how much time is there between making the initial customer contact and closing the sale? After they tell me they don’t make calls riding on a Harley Davidson (I actually heard this once), most contractors either guess at the amount of time or just simply admit they don’t know.ow many of you, as you drive through at McDonald’s, expect to hear, “Please pull forward and we will bring the food out to you.”? The answer is never. For several years, fast food chains actually had a space reserved for you to wait, and they would run the food out to you. Why don’t you see this any more? Because consumers hated it. They didn’t expect to pull forward and wait. They came to a fast food restaurant to get their food, well, fast.

To increase sales, you must decrease cycle time. You must eliminate all the little distractions and hurdles that can prevent you from experiencing sales at a faster clip. As market research has proven, speed kills – the competition that is, AND builds greater sales revenue potential for you.

Though many factors affect sales, speedier delivery of estimates is the single best way to increase sales. Why? There’s an old cliché, “the early bird gets the worm.” This is no less applicable for the contractor. Come on now, if you are first to respond to a customer’s request, first to address their special needs, first to get your proposal in their hands, and first to ask for the order, your percentage of successful closings will increase dramatically. Why? Because customers like contractors who display a sense of urgency, calling back within twenty-four hours, show up when you say you’ll show up to inspect the property, and get an estimate in the customer’s hands so they can make a decision.

As a past commercial contractor, I aimed for responding to a customer’s call within the day it came and 48 hours turnaround from call to providing an estimate. Did our business hit this target 100%? No, but we were consistently under this number, and over 40% of our bids averaged under 24 hours. This speedy delivery resulted in a much higher acceptance rate than when we didn’t have a standard.

How do you achieve faster cycle times in the sales process? Here are 10.5 rules and guidelines to guide you to turn estimates faster, and increase sales.

Set a goal for cycle time. As simple as this may sound, the goal should be the driving factor in forcing better customer service, scheduling of estimates, job costing and estimating capabilities, etc. Measure the goal on a weekly basis and post results. Talk about cycle time with your staff. Help them see how critical this goal is and how they personally impact the cycle time. Remember, speed kills your competition!

Develop an estimating system that is user friendly for both the estimator and administrative assistants. On simpler jobs, estimators can measure the quantities and then hand the task over to an assistant to finish preparing the estimate. Even if the estimator wants to look it over, it saves estimators’ time, allowing them to focus on more difficult or comprehensive bids. The real key to this effort is to have prepared templates and formats set up on your computer for quick access. Having this advantage can cut your actual preparation time for estimates in half!

Assign someone in your office to group prospect appointments together and make an efficient route for estimators/salespeople, whenever possible. Too much time and gas expense is spent daily by estimators who are horrible time management people. Plus, when times are a bit slow, poor performing estimators will stretch out distances between calls to incur less rejection with the excuse that they are spending all day in their truck. Have your inside person knowledgeable about locations in your market area and to take the lead on when to have estimators make their calls. This will force more communication between estimators and office staff.

Know your costs for your more routine, and simpler, products and services. You shouldn’t have to perform a lengthy process for bid development on these items. While each job may contain that one area that will tricky to paint due to architecture challenges or city requirements, you need to have already developed what might be the square foot price for basic walls, ceilings, exterior doors, etc. This requires you to develop and update a database with job costs, something small paint contractors often lack or leave undeveloped.

When dealing with residential or smaller commercial jobs that can be estimated quickly with the prospect, use a pre-printed contract form. I have seen many contractors lose work because they want to send their standard packet in the mail. When you have a school system building administrator with the authority to sign a work order AND school starts in less than a week, trust me, you had better have a standard contract available to close the deal!

Don’t lose the opportunity to close a sale (especially true for residential work). This builds nicely on what the previous point addressed. If you do not always carry pre-printed contracts that can be manually completed at the customer’s location you will have a tendency not to close the sale when the customer may be most receptive. Remember, sales is both identifying and meeting customer needs BUT the faster you can do that and clearly ASK FOR THE ORDER you’ll lose out to other contractors who are hungry. Also, often the impulse close of a sale rewards you with a higher premium price and better margin. Remember too, you can always send the formal proposal at a later date, if you didn’t close immediately.

Engage today’s technology. Equip your estimators with laptops and portable printers, so the estimates can be printed within minutes of developing the take-off numbers. Again, this may apply to the more simple of jobs but it still must be embraced or you lose out on closing situations. Also, if you and your estimating people do not have e-mail get it done ASAP. More and more customers, residential and commercial are quite adjusted to using e-mail correspondence and in some cases may even prefer its use.

Fax or e-mail the proposal back to the prospective client. In some cases, mail can take 5 or more days to arrive. Electronic mail or faxes allow you to advise the client immediately. The formal contract and subsequent company material may not be needed. Depending on the prospect you may still want to hand deliver some of the proposals but remember that most of your prospects respect those contractors that respect their time.

Have a local courier hand deliver the contract. For larger projects that require documentation that is too lengthy to be faxed, a $ 9.00 to $12.00 delivery fee is much less than having the estimator drive across town. It also impresses the client, as it can usually be delivered within four hours. Again, this effort should be used primarily for the larger jobs, the more demanding prospect, or the prospect whom you can impress with your urgency.

Generate your estimates by computer. Developing all estimates by hand is at least 40% slower and, frankly, is unprofessional in this day and age. Have pre-printed paragraphs and task descriptions that can be integrated into your proposal or attached. Don’t be fooled by software marketed as providing you with all the “bells and whistles” you’ll ever need. There isn’t a contractor’s estimating system yet that is perfect for every contractor. Study the available systems and find the system that is best for contractors and that allow the user (that’s you) to modify and tailor the system to their organization. Spend a few extra bucks and contract with an IT savvy kid who can help you work the bugs out of the system you install.

10.5

Double-check the correct spelling, address, and title of the prospect. This is just a basic rule of thumb that can literally cause you great embarrassment and or loss of sales. Don’t allow your mail to wander around a large company or be undeliverable due to poor investigative work on your part.

Knowing the rules isn’t enough. You must commit to implementing as many as you can. They will increase your sales and image with the client. Fast cycle time reassures the client that you have effective systems and processes to meet their needs.

Need further proof? One of our clients who enacted speed into his cycle time reported a 30% increase in sales this past year. We have had hundreds of contractors experience similar results by simply speeding up their sales process. Interesting also is the fact that many of these same contractors have admitted that the other areas of their company have improved. Why? Because when sales escalate, schedules become tighter and the amount of time between jobs is condensed. And when there is less time between jobs your workers are forced to find more creative means to deliver a job on-time, at or below estimate, and a superior quality of the first time.

Best of luck to speeding up your selling effort!