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START Faster and Smarter ©

One expert in the construction industry has found that the least productive hour of the workday is the first hour.  In that first hour important decisions are often NOT made, there is failure to insure critical maintenance has been applied to equipment and tools, and field leaders, in a hurry to get going, fail to review critical project plans and documents.

Every contractor knows first hand the real action starts at the “front-lines,” where actual crews and leaders execute project plans.  Yet this is where we lose too much firepower, productivity, and precision after hard fought jobs have been estimated, won, and pre-planned.  Sure there are always surprises on projects, but the contractor who can prepare his or her crew leaders to consistently follow a sequence of preparation steps will empower their crew leader, and their crew members, to perform “No Bad Jobs!”

Ok, let’s consider a sequence, placed in an easy to remember order, which will raise your crew’s ability to hit their daily numbers.  Let’s jump START your workday! 

START is an acronym that you can teach your crews in fifteen minutes.  The secret isn’t the ease in which they learn START, it’s building it into a daily commitment for them to adapt and execute each new day.  Here we go…

Schedule Your Day

Sounds almost too simple but it’s sadly not completed every day, much less by the crew.  Sure, many contractors may have their crews meet in the “shop” each morning and the Supervisor may talk to the Foremen about their day’s efforts.  That’s good and needed.  Yet seldom does the actual Crew Foreman sit down and actually line out just what he intends to have his crew work on for the day, much less set any targets that need achieving. 

The Crew Foreman, hopefully working with a formal one or two week “look ahead,” should focus 15-20 minutes each morning working through his plans for that day specifically.  Enlisting his Lead Man or several members from his crew will bring even greater insights to the days needs and thus, improve performance.  This process allows the crew to leave the shop more confident about what they are doing, what they will need to complete their work, and how much work will need to be completed.  (Please read some of my previous articles about job site planning and use of a look ahead for more information.)

  • Look and Review the “Super” Schedule
  • Identify the “Times of Need” to Be On-site
  • Involve the Entire Crew/Team to Discuss That Day’s Plan
  • Crew Leader Prepare Their Decisions to Make That Day
  • Break the Day’s Plan into “4 Quarters” For Greater Attention & Faster Adjustment

Take Daily Inventory

This second action directs each Crew Leader to insure that their trucks, trailers, and workers have exactly what they need to complete their work.  Leaving the yard without every piece of equipment and tool secured and confirmed is a leading reason why workers fail to achieve needed production rates and targets.  Waiting for the company’s “hot truck” to bring something from the yard because the crew did not inventory the missing shovels, or oil cans for the equipment is simply a waste of time and drives profit margins south.

An inventory list should be created for work crews that list all of the equipment and tools, materials, safety equipment, etc., needed for each project.  For many contractors, this can a list that remains constant as their crews may perform the same type of work each day.  However, such consistency of work often breeds complacency among the crew members, each thinking someone else got the needed tool or component needed on the job.

There may other forms of needed inventory for field leaders to employ such as the requirements for a particular customer involving an inventory of what is needed to complete at the site, a list of contact information, and a list of what workers have been cleared to work on the project due to security requirements of the customer, i.e. Clearance documents needed to perform work on a military base. 

In short, any inventory list for any reason is too simple not to create.  Possessing an inventory list doesn’t guarantee your workers producing quality results but it sure makes it easier for them to achieve needed results by first insuring that they have the needed tools of their trade in their possession when leaving your company’s yard.

  • Use a Quality Audit Document that Lists Non-Negotiable Process to Follow
  • Implement a Daily Inventory of Trucks & Trailers AND Confirm Needed Items are Secured Before Leaving Yard
  • Push the “Star” Process: Assign Crew Members to Provide Extra Attention on Quality, Safety, Tool/Equipment Preventive Maintenance, etc.

dailyAsk Questions Daily

In the rush to get going every morning there is usually little time to solicit questions.  Crew Leaders often feel the need to just get the crew out of the office and to the job site.  But more questions may need to be asked prior to leaving than after the crew has arrived at the job site.

Simple questions such as…

“Who is setting up the chalk lines today?”

“Where are we going to park the trucks today?”

“What area of the site are we going to begin working today?”

“Do we need to bring any extra forms or anchor bolts today?”

…all seem to be innocent enough but are too often asked later rather than earlier.  Crew Leaders need to be asking their workers and company senior leaders questions before start-up and their employees need to be free to ask questions each morning to insure that we’re all on the same page.  A work culture that appreciates asking questions, sometimes the most important question at the right time, is a culture that will perform tasks better and do more things right the first time.

  • All Supervisors Ask Daily Questions of Their Foremen to Insure All Bases are Covered
  • Make Daily Use of the “Process Book” of SOPs for Every Major Work Process Company Executes; Get Sign-off from Users
  • Lead “Process Book” Questions, Especially with New Employees Or Employees Not Performing Well
  • Circle Back to Your “ADHD” Workers to Insure They Understand

Review Documentation Daily

There seems to be more documentation today required for the simplest of projects than ever.  Big or small, your Crew Leaders are often the holders of copies of blue prints, CAD renderings, OSHA and DOT documents, Weekly “Look-ahead,” city or county permits, customer requirements and contact information, location and contact information for local material plants and suppliers, and Standard Operating Procedures or “SOPs,” to name a few. 

For the contractor performing larger sized projects with the crew operating out of a job site trailer, the need and reasoning is still the same.  Important project documentation needs to be identified in terms of what is to be reviewed and completed daily, weekly, or monthly.  Our Crew Leaders can simply not omit reviewing needed documentation. 

  • Identify “Needy” Foremen and Lead Them to Review Their Daily Documents
  • Inspect Training Plans for Employees Needing Extra Training & Support
  • Crew Leaders to Engage Other Reliable Crew Members to Assist in Reviewing Documentation for Inventory, Tracking Crew Hours, Quality Audits, Safety Inspections, etc.
  • Regularly Assess What Crew Foreman Needs What Accountability and Support for Greater Performance & To Build Foreman Mental Retention

Train Your Workers…Daily

If there is one action every Crew Leader must be fast to start it is to increase the effort to train and educate their workers.  At no other time have we observed so many employees joining the construction industry with so few skills for their trade.  Thus, it will be incumbent on the Crew Leader, supported by their Supervisors, to make every day a “class room” of learning. 

Suddenly every start, stop, and restart has a teachable moment.  Rather than take the job back from the new employee, Crew Leaders must take that extra one to five minutes to explain the “Why?” behind a particular technique while demonstrating the “How to.”  If there is one daily effort that more Crew Leaders will employ it will be that of training and educating their workers.

  • Crew Foremen to Be Highly Active to Train…Even More Active than Performing the Work Personally
  • Supervisors to Redirect Crew Foreman When a Wrong Step Has Been Taken; Crew Foreman Redirecting Their Crew Members When a Wrong Step Has Bee Made
  • Engage Recently Taught Employees to Train Another Worker…ASAP!
  • Slowly Add Little Pieces of Responsibility to Workers
  • Drive the Non-Negotiable Importance of Safety & Job-Site Cleaning Along with Technical Training
  • Refuse Mediocrity… NO BAD JOBS!

Like my Crew Leaders from Packer-land have begun to do, initiate your own frontal assault on making your project teams and field crews more productive.  Gone are the days that we just hope that by pure badgering of our workers things will begin to get better.  It takes too long to wait out that method and it also risks losing potentially long-term employees who will give up too soon before a more organized approach is implemented.

Look, to START faster and smarter takes exactly those items shared above.  Why wait for the performance to improve when you can START right now!

May you have a great START to productivity records this year!

 

Brad Humphrey

The Contractor’s Best Friend ™

 

I want to dedicate this article to a great concrete contractor and his many field Foremen and Supervisors up in Packer country.  In their desire to be better, they challenged me to raise my own efforts to create an easy to follow reminder for field leaders when beginning each new workday.  The bullet points presented below for each START activity is provided by these fine construction leaders.  Thanks guys for inspiring me to develop START, and may your efforts help other current and future construction leaders overcome their own challenges!

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Building Value for an Exit Strategy

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. 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:

  1. Clarify Your Life’s Purpose/Mission
  2. Define Critical Roles & Responsibilities
  3. Entrust Your Company to Knowledgeable People of Character

1.  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.[pullquote]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.[/pullquote]

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.

2.  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.

3.  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.

[pullquote]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. [/pullquote]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. 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.

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Brad Humphrey, President & Founder, Pinnacle Development Group