Strong Teams Win! Bring Your Team To Peak Performance BECOME A BUILDER OF CHOICE OKLAHOMA HOUSING SUMMIT Cox Convention Center August 26, 2015 8:00 9:30 Charles C. Shinn, Jr., Ph.D. President, The Shinn Group / Builder Partnerships
Strong Teams Win: Bring Your Team To Peak Performance! In today s housing industry with qualified workforce shortages, it is imperative to have a dedicated team all pulling in the same direction. The team needs to have unity of purpose working for common goals, functioning in an efficient and effective manner to obtain consistent and reliable results. Expand your understanding of the word team to include company employees, trade contractors, and suppliers to have an engaged, dedicated and motivated team to become highly profitable.
Building the Team What is a Team? Together Everyone Accomplishes More A Group of People working together towards a Common Goal Team Building helps a Group function as a Unit Increase Morale, Trust, Cohesiveness, Communication & Productivity Mutual Respect of Each Team Member Mutual Support Collaboration Open Communication
Building The Team Understand each Team Member s Goals & Objectives Stressing Common Goals & Objectives Build it right the First Time Get on a clean, ready job site as scheduled Perform a Quality, 100% Complete Job Leave the Job and NOT have any Repeat Trips This is a WIN-WIN-WIN for the Builder, Staff, Trade Partner, Tradesman, and Supplier Everyone makes money
Building The Team Each Team Member needs to understand their Interdependency Work hard to develop a productive team Being considerate of the other team members needs The success & profitability of each team member depends on the team being efficient and effective Builder, Trade Partner, Tradesman, Supplier & Staff
Team Destroyers Lack of Focus De-motivational Environment Jealousy Cynicism Lack of Recognition Inconsiderate Team Members
Management s Responsibility Creating and Maintaining an Environment in which People can accomplish Goals Efficiently & Effectively Environment needs to be: Consistent Reliable Efficient Effective Instill Discipline Engage the Whole Person Not just the Physical Being Mind & Body
TRADE CONTRACTOR SHORTAGE
Trades in short supply Painters Flooring - Flooring - Interior HVAC Electricians Plumbers Drywallers Insulators Roofers Masons Framers Foundatio All Trades 0% 20% 40% 60% 80%
Days added 25% 20% 15% 10% 5% 0% 0 1-5 6-10 11-15 15-20 20+ Other
No Builder is Short of Trades Your Housing Market Has a Trade Labor Shortage Enough Trade Labor in Market to: Produce How Many Homes This Year What Percentage of those home do YOU build The Challenge is to have them want to work for you Trades are Reluctant to Hire Every Year there is a Shortage of Trades At Peak Construction Activity Trades will NOT staff up for Peak
Annual Shortage of Trade Contractors Trade Contractor Availability Home Building Activity
Apply the Builder of Choice Principles How do you NOT share in the market shortage Become the: Builder of Choice
BECOMING THE BUILDER OF CHOICE
Become the Builder of Choice in your market It is an Honor bestowed by the Trades and Suppliers You MUST Earn it You must Manage your company to Create and Maintain an Environment which will allow Trades and Suppliers to Accomplish their work Efficiently and Effectively Your company must be Consistent and Reliable You must instill Discipline
Results of Applying Builder of Choice Principles Have an Adequate Supply of Trades & Suppliers Trades will want to work with your Company Want to be a Member of your Team Will work for LESS than for other builders Will be MORE Profitable Suppliers will want to supply your Company Typically have FIVE or more Price Points You will be on the Best Price Point Many times Better than the Larger Builders
Builder Partnerships awarded the first Builder Of Choice Award in 2015 to recognize builders who have demonstrated leadership in their management of relationships with trade contractors and vendors in their local markets. The Builder of Choice Award (BOC) was created to provide builders with third-party validation and certification from a credible source to demonstrate their commitment to excellence in working with suppliers, trade contractors and other organizations that support the home building process. Recipients received recognition at the 2015 IBS. This award does more than offer recognition to quality builders: it provides builders with an economical and reliable third-party verification of their commitment to excellence in working within their local market. As a time when labor is becoming more and more scarce, this is something every builder can use. Application Deadline: November 1, 2015. BECOME A BUILDER OF CHOICE IN YOUR MARKET
Builder of Choice Award Recognizes builders who have demonstrated leadership in their management of relationships with trade contractors and suppliers in their local markets Provides third-party validation and certification from a credible source to demonstrate commitment to excellence Judged by the Trade Partners & Suppliers 10 Categories 68 Questions
Builder of Choice Award Winners Noblesville, IN LaGrange, GA Burlington, MA Uniontown, OH Hunstville, AL
WHAT DO THE TRADE CONTRACTORS WANT?
What Do The Trades Want Honesty Organization Leadership Professionalism Decisive Decisions On Time Job Sites No Dry Runs Clean Job Sites Ready Job Sites Current Detailed Plans Follow Up Adequate Lead Times Confirmations Accurate Estimates and Purchase Orders
What Do The Trades Want Fairness Consistency Good Communications Integrity Responsibility Accessibility Proper Material On Job Site To Be Listened To Problem Solver Reliable Construction Schedules Respect Recognition Steady Pay
BUILDER OF CHOICE PRINCIPLES APPLIED TO TRADE RELATIONS
Characteristics of Builder of Choice Management Well Managed Organization Team Builder Motivator Leader Communicator Organizer
Well Managed Organization Policies, Procedures & Rules Trade & Vendor Contracts Clear Scopes of Work Checklists Organized Job Sites Job Site Work Rules Clarifies the Working Environment No Ramrod mentality
Well Managed Organization Empower Trade Partners Trust the Trades No micro management Honest Fair Dealings with Trades Approachable Not Dismissive Open Minded Consistent Deals with Incompetence Firmly
Well Managed Organization Detailed Accurate Lot Specific Plans Accurate Purchase Orders Reliable & Accurate Schedules Accurate Detailed Specifications Few Change Orders during Construction Pay on Time
Team Builder TEAM: Together Everyone Accomplishes More Cooperative Team Approach Part of Company Just like an Employee Respect the Trades Everyone is Contributing Sharing both Good and Bad Let Trades Participate in Issues affecting them Encourage Trade Cooperation
Team Builder Stress Interdependence of Trades Introduce Tradesmen to each other Ask for Same crews Consistency Less requirement for education Facilitates team work Develop a Social Network Everyone Knows Each Other Lunch Area on Job Site
Team Builder Quarterly Trade Partner & Crew Breakfast Mission Statement Goals and Objectives Review of Last Quarter Forecast of Next Quarter New Initiatives Open Questions & Answers Establish a Trade Council Allows for Trade Input Mutually Discuss Initiatives & Issues
Motivator Motivation is getting someone to do what you want them to do, when you want it done, the way you want it done Because they want to do it. Motivation is self-motivation You must put yourself in their shoes Why is it in their best interest
Motivator Provide a Positive Work Environment Communicate, Communicate, Communicate Create a No-Blame Culture Encourage Initiative Set High Standards Lots of Compliments Praise in Public Criticize in Private
Motivator How do they fit into the picture What is their contribution Why are they important Respect Everyone on the jobsite Express your Appreciation for Job Well Done Recognition Thank You does amazing things Letter to the Boss Newsletter Feature Article Full Page Ad in Newspaper
Motivator Allow Trades to discuss what Demotivates them Correct Systems that cause Demotivation Feedback on Performance Quarterly Review Social Events Picnics Sports Teams Lunch with the Trades Trade Recognition Events
Leader Professional Organized Positive Mental Attitude Enthusiasm for the Job & People Fair and Consistent Expectations Set High Standards Non-Threatening Environment No-Blame Culture Encourage Initiative Friendliness
Leader Teacher Train/Train/Train Help them grow Help them make Money Listener Firm but Fair Integrity Live by your word
Communicator Clear Instructions Have them repeat in their words Plenty of Advanced Notice Adequate Lead Times Confirmations Construction Meeting Web Portals
Organizer Consistent Work Organized Job Site Organized Construction Flow House Community Company Performance Standards Job Site Meetings
Schedules Communication Tool Improves Communication with Trades & Suppliers Improves Coordination among Trades, Suppliers, & Superintendents Reliable and Accurate On Time Not Constantly Moving Schedule Cascading delays Lose a day = Lose a week Minimize Delays and Confusion
Schedules Make sure job site is ready for trades Job Ready Checklists No Dry Runs Master schedule Centralized Notification Watch trade contractor loading levels Avoid conflicts and overloading Don t compete with yourself
Schedules Make sure each trade completes activity Before leaving job Scopes of Work Job Complete Checklists Even Flow Construction Sales are Seasonal Production should be Consistent
Job Site Clear Expectations and Work Rules Efficient Effective Reliable Consistent Organized Keep Crews Productive Appropriate Materials Ready Job Sites
Job Site Clean Job Sites Consistent Work Few Fill-in Orders No Dry Runs No Repeat Trips No Fill-in Orders
BECOMING THE EMPLOYER OF CHOICE
The Employer of Choice Unity of Purpose Mission Statement Lots of Reinforcement Lack of Chaos & Confusion Standardize Processes & Procedures Clarify the Environment Remove Obstacles, Confusion & Uncertainty Positive, Motivational Workplace Environment Open & Frequent Communications Morale Boosting
The Employer of Choice Fair Treatment and Understanding of Employees Non-Threatening Workplace Environment Clear Objectives & Directives Guides Performance Clarifies Expectations High Standards of Performance Instills Pride Realistic Stretch Goals People like to be Challenged
The Employer of Choice Encourage Employee Initiative No-Blame Culture Give Employees a Complete Job with Measurable Results Don t over Specialize Jobs Reward & Recognize High Performance More effective than punitive measures for bad work What you reward is what you are going to get
The Employer of Choice Poor systems account for 85% of all Underperformance Allow people to talk about what is demotivating Correct the De-motivators Delegate Appropriate Authority Authority Responsibility Accountability Self-Management Complete Job Control Control their Destiny
The Employer of Choice Unity of Command People work best for One Boss. Provide Feedback on Performance Pay Attention to the Social Needs of Employees Enjoy the Comradery Social Events
The Employer of Choice Systems Necessary to Clarify the Working Environment Organization Chart Job Descriptions & Position Guides Policies Procedures Work Rules
Benefits of Applying Employer/Builder of Choice Better Performance of Team Less Management Effort Higher Morale More Loyalty Less Staff Turnover Higher Quality of Homes Better Pricing from Trades & Suppliers
Benefits of Applying Employer/Builder of Choice Higher Quality Trade Partners More Options Fewer Delays On Time Deliveries Higher Profits No Shortage of Trades & Suppliers
Questions and Comments Please contact: Charles C. Shinn, Jr., PhD Builder Partnerships 7325 S. Pierce Street, Suite 203 Littleton, CO 80128 303.972.7666 cshinn@builderpartnerships.com
Intensive Management Education Opportunities Production Management Learn how to streamline processes, increase efficiencies, and cut costs in your production department to significantly increase your profits September 14-16, 2015 Denver, Colorado Purchasing, Estimating, and Job Costing Improve your bottom line by as much as 5% - Good estimating and purchasing is critical to obtaining superior profitability September 23-25, 2015 Chicago, Illinois February 10 12, 2016 Atlanta, Georgia The Superintendent s Job Front Line Manager Increase overall profitability and customer satisfaction through a strong focus on building the house right the first time: on quality, on budget, and on time. October 15 17, 2015 Chicago, Illinois February 18 20, 2016 Atlanta, Georgia Managing for Profit Managing for Profit is an intensive seminar designed to put you on track to improved profitability. November 4 6, 2015 Chicago, Illinois March 2 4, 2016 Atlanta, Georgia
Managing for Profit Packed with information to help you gain control of your company and improve profitability. Topics covered during the course include how to: Set achievable, profitable goals across the organization Determine what profit is reasonable for your organization Use simple management tools to increase gross margin Successfully integrate management systems, including accounting, estimating, purchasing and job costing for improved performance Effectively evaluate and control operating and construction costs Monitor your performance through the use of breakeven analysis, variance analysis and other key management techniques Maximize capital utilization to increase the value of your money
The Best Most Reputable Manufacturers in the Industry A sampling of the manufacturers we have in the Builder Partnerships program Contact us to participate Email: monica@builderpartnerships.com Phone: 303.972.7666 Fax: 303.972.7667 www.builderpartnerships.com
Builder Partnerships awarded the first Builder Of Choice Award in 2015 to recognize builders who have demonstrated leadership in their management of relationships with trade contractors and vendors in their local markets. The Builder of Choice Award (BOC) was created to provide builders with third-party validation and certification from a credible source to demonstrate their commitment to excellence in working with suppliers, trade contractors and other organizations that support the home building process. Recipients received recognition at the 2015 IBS. This award does more than offer recognition to quality builders; it provides builders with an economical and reliable third-party verification of their commitment to excellence in working within their local market. As a time when labor is becoming more and more scarce, this is something every builder can use. Application Deadline: November 1, 2015. BECOMING THE BUILDER OF CHOICE
Builder of Choice Award Judged by the Trade Partners & Suppliers 10 Categories 68 Questions
Builder of Choice Award 2015 Recipients Five companies were named Builder of Choice award winners, recognizing the strength and quality of their trade and supplier relationships. Bedrock Builders, Noblesville, Ind. Dan-Ric Homes, LaGrange, Ga. Northland Residential, Burlington, Mass. Wayne Homes, Uniontown, Ohio Woodland Homes, Huntsville, Ala.
Our team covers all areas of the builder organization. Featured areas of expertise include: Assistance with Value Engineering and Material Take-offs Quick, reasonable land valuation / project forecasts In-house customized training programs Specific market research / intelligence Evaluation of key performance ratios Advisory on how to cut costs, sell houses, and pay loans Virtual Advisory Board (hourly coaching-consultation) to help cut costs, sell houses, and develop, monitor and conform to strong financial plans Contact Emma Shinn at eshinn@theshinngroup.com to discuss service options.
Questions and Comments Please contact: Charles C. Shinn, Jr., PhD Builder Partnerships 7325 S. Pierce Street, Suite 203 Littleton, CO 80128 303.972.7666 cshinn@builderpartnerships.com