Analysis
Doug Strohmeier
Manager of Business Development
Doster Construction
This paper holds my personal
impressions from Doug Strohmeier’s presentation and class discussion on 29,
September 2000. The topic of that
discussion was: “What is Strategic Planning?” The
following paragraphs are my impressions or thoughts on the topic that I found
most meaningful to me. Italicized
statements are those which Doug spoke on.
A strategic plan is a plan of
action made of goals and objectives that a company wishes to pursue and achieve
for the purpose of company growth or prosperity.
I have heard the term of strategic planning but I never hear of one really being created or implemented in such a way that a company or organization really puts it into effect. After reviewing Auburn University’s strategic plan it was apparent just how complex and painful the plan was to read let alone try to monitor and implement.
The
overriding impression was that a good plan should be concise, clear, and short
so goals are manageable and an evaluation can be conducted quickly and
accurately.
It is important and
encouraged to bring in a third party consultant to help formulate a new
strategic plan.
I do not know how easily the President and CEO would accept this because of the sensitive information that must be given to the consultant. The CEO, if not humble and truly interested in positive change, would find this to be a slap in the face towards the way he or she has conducted and led the company so far.
I do believe it is an excellent idea to break away from the old, stagnate way of things to reach a new direction and breath of fresh air. A consultant would also break down negativity between coworkers as well as diminish the rivalry of “sides” and get to the heart of an issue in a timely manner.
The
Role of Business Development at Doster Construction and Doug’s System for
Quantifying His Productivity.
I was
interested in learning about Doug’s personal goals and his steps at
documentation and analysis of “productivity”.
Doug was able to quantitatively express his work so he and his boss could
measure his performance. He did
this by analyzing how many phone calls were made, how many leads were made and
followed, and his phone call time was categorized as “productive” or just
coffee talk. This takes confidence
and a drive to work hard. It was a
great time to learn about his business development practices in researching the
markets, the trade journals, networking, and then formulating ways to network
with key personnel to court the company for a possible construction contract.
Doug was willing and able to express that
his company is a positive and enjoyable work environment without making it sound
like a “sales pitch” or marketing theme.
His enjoyment of the company indicated to me
that Doster Construction is a good company in the sense that the culture is
positive and light. I also enjoyed
learning about Doug’s’ background and career steps as the doors opened. It was interesting to hear about his experiences in the field
and then having his boss ask him to change paths into business development.
That is a large responsibility and shows the talents and ability of Doug
were positively portrayed to the boss.
During
our class discussion, one problem area was in the implementation and evaluation
of success. We often would ask how
do you earn buy-in with employees as well as form a system of evaluation that
really works? An article by John F.
Schlegel in Association Management deals with linking performance assessment to
the strategic plan. In the article
Mr. Schlegel describes tips for evaluating accomplishments of a company.
To
achieve key objectives throughout the company, the plan must be based on
performance. This type of performance based goal setting is common with
all businesses and the strategic plan should include every employee.
Leaders can then rely on performance-based criteria that are directly
connected to the strategic plan for evaluation.
In
today's challenging business environment, companies must become more
strategically focused if they expect to be successful. Leaders must begin to
view departments as serious businesses operating on performance-based criteria
that demonstrate strong accountability to fellow personnel within the whole
company. Simplicity is the key to
success. Writing the
strategic plan in a format that makes it easy to read, implement, and evaluate
is the first step. The only way the
strategic plan will work is based on how well the plan ties the work of the
company back to the plan. For example:
1.
Ensuring a process for defining strategic direction and priorities.
2.
Allocating resources (dollars, volunteer time, staff time) against these
strategic directions and priorities.
3.
Evaluating effectiveness and efficiency of the association's people,
systems, and strategies in terms of achieving the defined strategic direction
and priorities.
Leadership must lead by example and fully participate in the implementation process by setting goals that are performance based and expect a full evaluation of their performance. (Schlegel, Association Management. P. 75).
One final note: Although it is very difficult
to formalize a good strategic plan, they must be done for the vision of a
company in order to create a set of goals that is company wide but department
specific. Yet, just creating the plan is only the beginning.
Steps must be put in place for mangers to monitor the progress and
ability of the company to meet the goals and then use the plan as a benchmark
for evaluations.
Director of Commercial Lending
SunTrust Bank in Columbus, Georgia
This paper is my personal impressions from Jerry Coleman’s presentation and class discussion on 28, November 2000. The topic of the discussion was: “Commercial lending in the construction environment.” Having never sat and listened to a banker speak about lending and construction; I found this to be a very enjoyable topic. The following paragraphs are my impressions or thoughts on the topic that I found most meaningful to me. Italicized statements are those which Jerry spoke on.
SunTrust
Bank is the 10th largest bank in United States
Just
hearing Jerry say this makes a person sit up and take notice of what he has to
say. Of all the banks in the United States I would not have
guessed that SunTrust is one of the largest.
If a potential borrower
applies for a loan with a project that is estimated to be greater then $750,000,
SunTrust hires a third party consultant to review the plans and specifications
as well as monitor the project should it proceed.
I have been researching other entry points into a construction-related career so this idea of a third party construction – finance consultant is exciting. It is a good idea to bring in someone unbiased and able to go through the purpose and scope of the project with the ability to critique and offer suggestions without alienating the relationship of the bank and borrower. This becomes very important when dealing with long term or repeat clients. It is good to know that the bank chooses to do this not only for the bank’s benefit bur for the construction company as well. SunTrust is committed to helping the business succeed so creating this system allows the contractor or developer to eliminate problem areas before it becomes a serious issue.
It
was also noted that the borrower would pay for this service. At first I thought this would cause some hesitation, but in
reality the contractor or developer will only be purchasing a tool for producing
a better product.
Banks
are expanding into the role of financial service provider.
Banks
are no longer just the holder of people’s money in either a savings or deposit
account. Banks are now offering
life insurance, investment products, and mutual funds, bond issues and other fee
earning services in addition to the standard interest earning services of old.
Banks are also becoming more sales oriented, creating new services to
help their customers. I believe
this is partly caused by the deregulation of banking across state lines as well
as Internet banking. People can
really shop the nation for the best banking services or lowest interest and so
location is really not a factor. Researching
banking practices I did come across an article that indicates more banks will be
setting up branches in all big cities for helping large corporate clients. These banks have also begun to offer personal mangers for
each big client to ease the hassle of banking across many states.
This
is an interesting topic because of the recent stock market boom.
Banks now offer “one-stop” shopping for money matters and I think
they go hand in hand. The interesting thing is that banks are generally safe,
constant slow growth institutions and investing in stocks and mutual fund
portfolios allows clients a higher rate of return but at a greater risk.
I am unsure if I would use my bank for my investment services because of
this difference. The banks are there to be consistent and strong for eternity,
while I view investing as a short term, quick benefit kind of business.
My impression of the banking industry is of strong financial people who
are great at managing money safely, so that means the bank must overcome this
impression and hire a new type of employee.
The
flip side to this is banks have to get into this industry because everyone is
beginning to invest and demand a higher rate of return on their assets.
If the stock market really crashes it will be interesting to see how
quickly people go back to the bank.
Another
perspective on banking is the difference between large national banks and
smaller community banks. Due to
numerous large bank mergers such as SunTrust and Web-based banking many new
small sized banks are left scrambling to provide personal care for clients in
hopes of attracting more holdings. Memphis,
Tennessee is one city where this is occurring.
Community banks in the city have created on the spot personalized
service. These small banks rely on
people-relationships and will go out of their way to help.
For example, one local contractor was unable to complete his withdrawal
from his bank in order to pay his subcontractors.
As he was walking into a wedding on Saturday he called the bank and his
banker took the time to arrange for the draw and proper payment of the
subcontractors. It would be
interesting to find out how larger banks would have handled the situation (Flam,
27, August 2000).
Smaller
banks are in the position of necessity to offer this type of practice because
every dollar counts where as a large bank’s holdings are much larger and it
can be more passive with customer service.
At larger banks, there will be several layers of management between
customers and the people who make the decisions for the loan application.
I see smaller community banks being more willing and able to foster
personal relationship and help with a start up contractor or smaller sized
contractor to better manage his capital. To
me contracting is all about communication and relationships.
SunTrust Bank looks for the business or key person to have an equal amount of capital for what one wants to borrow.
Mr.
Coleman indicated the conservative nature of SunTrust but it still struck me as
cold in a way. It makes sense for
banks to choose this strategy if they are not interested in that type of growth
or business. Speaking with Mr.
Robert McDaniel from Compass Bank of Auburn gave me another perspective of a
more sales oriented bank. He mentioned that a contractor or developer must have
at least 20% to 30% cash on hand for the project.
SunTrust Bank did not put too
much stock or weight in the business plan.
They required a plan to be produced for review but it was not such a big
deal. Cash was key.
That
was different then what I have always been told, but it makes sense that all
business plans will look good so cash is still the key indicator of how serious
the person is in starting the project. It
was made clear that SunTrust is a bank with a reputation for solid performance
and constant but slow growth. I got
the impression that ones money is safe with them.
I believe that is why many retirees have used this bank in Florida.
The bank is in the business
to earn money but the bank operates on a very small margin so precautions are
taken to ensure success of repayment.
It was
my impression that banks made too much money and were able to always do so. When I look around a community to see what is being built, it
is usually a new bank building. I
never stopped to think of the minimum interest that banks earn, but now I see
why financial services have become a larger part of the banking industry.
Banks are looking for fee income earnings as well as the earnings from
interest.
One
final note: Jerry was very informed about the construction system and the risks
involved. I enjoyed learning about
construction and finance from an experienced person outside of the building
science classroom.
Senior Project Manager
Brice Building Inc.
This paper includes my personal
impressions from Mike Waller’s presentation and class discussion on 28,
November 2000. The topic of that
discussion was: “What does a project manager do? What is a project manager’s typical day?”
The following paragraphs are my impressions or thoughts on the topic that
I found most meaningful to me. Italicized
statements are those which Mike spoke on.
Creating a start up checklist
and finding the first key items that need shop drawings and fabrication should
be priority one with all project managers, or the whole project will be delayed.
Long term procurement items
and other prefabricated materials is key to the overall success of a project
remaining on time. It was my
impression that Mike has a checklist of sorts, written or memorized; that he
follows for every project he manages. Thinking
far ahead to get orders and shop drawing started is a very important issue and
he stressed that failing to start the shop drawing process for key items such as
hollow metal frames and rebar will delay the project in days that can never be
made up. I agree with his views and
it was good to hear an experienced project manager give us some tips for
success.
Most of the paper work
happens in the first few months of the job.
This statement caught my
attention because I always think past the initial scope statements and contract
writing negotiation and view a project mangers time being spent with change
orders, pay requests, daily reports, and scheduling along with meetings.
So having a system in place that allows a project manager to complete the
paper work in an accurate yet efficient manner is key.
I think it would be excellent if a checklist could be created that we
took with us to our potential employers that would help us better serve the
company. Gaining experience is
really the only way to learn the art of writing scope statements and contract
negotiation but maybe one assignment in this class could be used for writing a
few scope statements from a set of specifications given to us by the speaker.
Remember to check the financial situation of the owner.
Having heard numerous times
in class the importance of liquidity in the contacting business it was
refreshing to hear this statement made by an industry professional as well.
As I continue my education in building science it has become apparent
just how much risk is involved with a relatively small margin for success.
I think in the years past that more people just went with a handshake or
word of trust system yet as always there are bad apples out there.
It should be the goal of any construction company to offer a quality
service for a fair price and checking the financial situation of an owner is
just good business practice.
I thought Professor
Williams’s statement on “bonding the owner” is quite a good idea.
A contractor’s business is dictated by the amount of capacity the
bonding agent will allow. Even more
important is the initial bonding relationship and gaining that first bond
agreement. I believe contractors can offer more then just building
expertise today. Contractors must
have knowledge of finance, management, and productivity that most owners are not
fully appreciative of. By asking an
owner to show us his or her financial situation should actually put the owner at
a higher trust level with the contractor. Builders
want to build, and build well. They
deserve to be compensated for their skills.
Asking for assurance of capital from the owner is just another way to
show commitment to the job.
Bring the architects in when
you are ready to begin, they will let you know what is important to them and he
or she might show you some things you missed in the specifications.
Try and find the design intent.
Having
a strong interest in architecture and the design profession I thought this was
an excellent statement especially from a builder.
At Auburn and often in the industry there are too many people who have no
appreciation for the designer’s intent or care and it should be important to
the builder to create a close working relationship with the architect on each
project. Not only to gain better
insight on the project by finding out what is really important to the architect,
but just to gain a better understanding of what type of person the architect is
will help the building become a successful reality.
This relationship will allow the communication lines to be more effective
as well as making sure that the builder and architect releases the stereotypical
animosity between each profession. I
thought Mike’s story about “no cut tile” was excellent.
The reason for this is due to the first impressions that come to mind
such as “the architect is going over board” and “the architect has no real
common sense”; but like everybody he wants to have his or her work
appreciated. The architect is going to be sensitive to the portion on which
special care and time was spent to make the drawings perfect for the builder to
follow so finding out what is important to the architect will allow the whole
project to proceed with everyone appreciative of the other.
Remember such items as fire
stopping. This item is rarely
mentioned in specifications but will not pass inspection with out it.
Again, this statement was
good to hear from someone who has the experience to know the trouble areas in
specifications. This would be a
perfect item to include on a project manager’s checklist.
70% completion is a milestone
when everybody is on the job and things begin to go wrong.
Make sure to order millwork as well at this point.
What I really enjoyed most
from Mike’s presentation was his ability to communicate what his duties are in
a friendly and honest manner making him interesting and enjoyable to listen to.
That to me is a skill that cannot be taught, only desired.
Mike was giving us tips for success for us to take into consideration
when making a “new project manager checklist.”
Be willing and able to
delegate authority and decision making to get the job done and keep your sanity.
Many times in class the
professors have discussed contractors who were unable or unwilling to delegate
and eventually the company suffered. It
is a skill that a true leader must possess. Once projects become more complex and multi-project
management becomes a standard practice the ability and necessity of delegation
will be the benchmark for a successful project manager.
I believe that as potential managers we must gain the tools of the
profession and then begin to manage people who have experience and knowledge of
those tools to produce a quality product.
People entering their new
building will only look at the finishes and make their judgments.
You can never please everybody.
This is a very true
statement and I am sure everybody who works in a service industry where others
use the end product will experience this type of criticism.
I have dealt with this briefly in design classes as well as during my
construction internship. It is difficult for people to not take criticism personally
and so easy to want to show the people just how much work and time went into the
project to reach the point where people could view the painted walls and color
of the carpet. Yet, the
finishes are what effects the users senses so builders must remember to take
extreme care in the finish quality as well as have the interior designer or
architect work with the people before choosing a concept that is out of touch
with the users.
During
the discussion I began to think about the question “how does one gain these
types of tips for success? And “are there programs or products to help a
student learn more about the working world of a project manager?”
After
thinking about those two questions I began to research the Internet for articles
on Project Management just to see if there are resources to help someone create
a checklist for success. I was able
to find some very interesting educational tools available.
For
someone interested in individual, out-side the classroom teaching; MCI
Systemhouse and Thinking Tools Inc. now offers software called Project Challenge
that is a game-like training tool. The program simulates activities that can
take place when setting up a typical client-server project, such as design,
analysis, development and the deployment stages. Project Challenge allows the
user to play the role of project manager, with a viewpoint from behind an office
desk. The user can then choose the level of hostility, which they wish to
operate in, depending on their own experience. The level of hostility reflects
the scope of the project, how flexible the deadlines are and how tight the
budget is. At the top of the computer screen a picture of a ship lets the user
know how well they are doing, the ship is either sinking or smoothly sailing.
Project Challenge is available for $1,495 for a multi-user single site version,
and $20,000 for a site license.
Although
this software is geared toward technology engineers and project managers, the
software company may be interested in developing a true building construction
product. At the very least the
original could be used as a stepping-stone for industrial or design / build
projects within a building science program.
I envision a lab time be included with the project management course that
would take each student through a full project.
What interests me most about the software is the ability to incorporate
stress levels as the complexity of a project increases
(McGee, InformationWeek, 11/11/1996).
One
other educational tool for project management training includes a very
interesting process. Purdue
University has established a Project Management Office (PMO) within their
building construction and contracting curriculum.
A large classroom was retro fitted to appear as a typical construction
office and students must operate and manage a real-life project while working
for this company.
Stephen Schuette, head of Purdue's Department of Building Construction and
Contracting, states "We have replicated all the things that a construction
company does, as far as even constructing the project, through various courses
in the curriculum, for example, the freshman class is currently constructing a
steel-framed building while the junior class provides field supervision on the
project. The senior class conducts the project management assignments in the new
PMO Laboratory office”.
Programs like Purdue's are designed to fill a management need in the
construction industry by developing project management skills. Many companies do
not have the expertise to set up advanced computer applications for use in
construction. Mr. Schuette
concluded his interview with "We see the PMO Laboratory as being one of the
primary roles of our curriculum" (Building
Design & Construction, April 1995).
One final note: Mike left me with the impression that he is very talented and able for his job but made the work sound overwhelming and stress filled to the point that I am cautious of the quality of life issues that are part of the job.