The Garrison Report #2006-9

A Time for Change

Special Note: With this issue of The Garrison Report we are starting our fifth year. We thank all our loyal readers for their support.

I've reported many times that the consensus within the construction industry is that conditions have deteriorated over at least the past 10 or 15 years. What's needed is a turnaround. In an article by Rosabeth Moss Kanter on company turnarounds, she explained that organizations that are successful in turning themselves around exhibit three characteristics: improved communications, increased collaboration and greater respect for all stakeholders. This is certainly sound advice for the construction industry. No individual or single company is responsible for causing the conditions that exist within the industry. However, unless each person accepts personal accountability for the problems they face, they will never get them fixed.

For example, while no company can eliminate the labor shortage within the construction industry, your company can implement policies that create a working environment that workers find attractive. If you accomplish this, your company will be able to attract more than its fair share of high-performing workers. There are certainly benefits from improving the overall image of the construction industry, but if workers don't believe your company is attractive, the industry image will not matter.

High Performance Is Free!

One of classic business books is Quality Is Free by Philip Crosby. In his book he explains that by doing things right the first time, and therefore eliminating the cost of going back and fixing them, the cost of implementing proper quality controls is paid by the savings. While Crosby was focusing on the quality of the product, the author would venture to say that same philosophy applies to the management process within an organization.

To get managers to focus on the issues, Crosby developed a series of questions about quality control. To evaluate your company's current management processes, the author has adapted a few of Crosby's questions to management issues. To learn where your company is positioned, answer the following questions:

  1. Which of the following five answers best reflects your company's management understanding and attitudes?
     
   

a. No comprehension of how your management practices affect the company's performance with regard to industry challenges. Management and employees tend to blame outside sources for the problems.

b. Senior management recognizes that effective management techniques may impact the industry challenges but is not willing to provide the money or time to make the necessary changes.

c. Senior managers go through management training programs to become more effective managers, and management supports the process.

d. Management participates in dealing with the challenges facing the industry. Managers recognize their personal role in continuing the improvements.

e. Management considers effective management techniques as an essential part of the company system.
   
  2. Which of the following five answers best describes how your company handles problems?
     
   

a. Problems are fought when they occur; there is often no resolution; there's usually inadequate definition of the problem; there's a lot of yelling and accusations.

b. Teams are set up to deal with the immediate problem, but no long-range solutions are solicited.

c. Problems are faced in an open manner and are resolved in an orderly way with the necessary corrective actions effectively communicated.

d. Problems are identified early. All functions are open to suggestions and improvement.

e. Except in the most unusual cases, problems are prevented.
   
  3. Which of the following five answers best explains how your company implements improvements to the construction industry challenges?
     
   

a. Your company has no formal organization to manage or understand these challenges.

b. Your company relies on the obvious motivational and short-range efforts to correct problems. In essence, if the employees work harder, the problems will disappear.

c. Your company uses only one of the many processes that are designed to eliminate or minimize the impact of problems, such as Six Sigma.

d. Your company's management is effective in following up with the company processes that are used to address problems to insure the suggestions are implemented.

e. Your company attitude toward maximizing its management effectiveness is a culture.
   
  4. Which answer best indicates how you would summarize your company's reaction to industry challenges?
   
   

a. Your company doesn't understand how the industry problems impact your company.

b. Your company accepts that industry problems are inevitable.

c. Through effective management techniques, your company is identifying and resolving the challenges facing the industry.

d. Problem prevention is a routine part of your company's operation.

e. Your company knows why it doesn't have problems.
   
  Crosby further identified five classifications of commitment or understanding in confronting the management challenges. The letter preceding the classification matches the letter before each answer. Therefore, you can easily compare what classification your company falls into by matching the answers to the above questions. The five classifications are as follows:
   
    a. Uncertainty
b. Awakening
c. Enlightenment
d. Wisdom
e. Certainty
   
  Below, the author adapted Crosby's descriptions of the five classifications on quality to a description of management style.
   

 

Uncertainty

When companies experience uncertainty, they don't comprehend the impact of their management activities on what appear to be industry problems; instead they blame others for the problems. For example, low profit margins might be blamed on the belief that buyers care only about price. Uncertain companies live in the present and don't look to the future; they simply respond to today's problems. They attempt to inspect production problems away instead of eliminating the underlying causes for the failures. One obvious example is hiring a subcontractor with a poor performance track record because his price is lower. Of course, it's difficult for companies to admit they are uncertain, but look at your track record. If you are constantly being surprised by project problems or industry problems, then you are uncertain.

Awakening

When companies begin to awaken, they realize that their actions can impact the results. However, they just can't seem to take action. The company executives may begin to realize they need to sell value but are waiting for buyers to take the first step. In other words, they just aren't committed to making the effort. Instead they wait for others to take the initiative. This creates follower companies, not leaders.

Enlightening

The enlightened company has started to make a transition. A new attitude prevails. Usually the first notable change is the relaxation of tension. In these companies, communication is open and people collaborate and respect each other. Another important change is management's commitment and full support for this approach to business.

Wisdom

Companies in the wisdom phase experience active participation in the entire program by their managers. Everyone walks the talk and works hard to learn more about the process of being an effective manager. While it takes years to master this approach, those in the wisdom phase are clearly on their way.

Certainty

Companies in the certainty phase have arrived. These companies simply don't expect problems to occur; in fact, they are almost astonished when they do occur. This is not because they are naive, but because they have looked ahead to solve the problems before they occur. This is the only true way to achieve high performance in a consistent manner.
Next month's report will explore what it takes to reach the certainty phase. In the spirit of this search for certainty, the author is now offering a new program that addresses these issues. It can be found at www.ncs30.com. The box below describes a specific issue this program is addressing this month.

 

* * * * * THE END * * * * *

Previous: The Garrison Report #2006-8
Next: The Garrison Report #2006-10

original site by jack out of the box designs inc. | © Copyright 2010 Ted Garrison | Site Map