Install Field Operational Systems to Produce Consistent Results!
by Marcy Marro | 3 June 2019 12:00 am
Good People or Good Systems?
As a general contractor and developer, I make it a priority to visit our job sites on a regular basis. Before we had an organized and systemized field operational system in place, almost every time I went to the job site, lots of things were going wrong and I would find many things I didn’t like. Some team leaders and crew members did things their own way, while others asked me how I wanted it done. This reliance on good people instead of good company procedures and systems caused lots of field problems and lost profits. As I didn’t have enough time to inspect everyone’s finished work product before we turned it over to our customers, lots of call backs, long punch lists and ongoing maintenance became normal.
No Field Systems = No Controls!
Our overall company goal is to make every project a success for our customers and us. We pride ourselves on quality workmanship and on-time completion at the right price by providing full value and full service. This was difficult to deliver without good systems in place unless I was everywhere making sure things were done correctly. This got out of control as our company grew from five crews to over 25 projects under construction at a time.
Think of the worst project you’ve ever worked on. What went wrong? Many of these problems can be solved by making it an overall company priority to get everyone on the same page doing things the same way. The real problem is a lack of written company field operational systems. When you don’t have company standards and systems that are clear and written, you rely on each person to try and do it the way they think is best. This doesn’t ensure consistent performance and results.
Create a “DO Manual”
The hardest part about creating field operational systems is determining where to start. First, keep the big picture in mind. Your ultimate goal is to get everyone in your company doing business the same way. Eventually you want to have a company “DO Manual,” which clearly shows how you want your field crews to do the required work. Each field operational system must be drafted and formalized on an 8 1/2-inch by 11-inch piece of paper inserted into three-ring binders distributed to your crews.
Everyone will receive and follow this company “Do manual” outlining your field operational systems. This acts as your ongoing training manual to be used in your training program and referred to prior to working on a particular stage of projects under construction.
As you visit job sites, start identifying things that go wrong on a “Fix-It” list you carry around with you. Also put things on the list you know are key to the success of your projects.
What Do You Need to Fix?
Identify things you know will ensure every project will be a success. Create a “Fix-It” list and divide the items into these categories:
- Field systems
- Project management systems
- Financial systems
- Estimating systems
- People systems
- Leadership systems
- Equity and wealth systems
In every category prioritize what problem areas cost you the most money, grief and time to fix. For most companies, 20 operational systems in each category will solve 80 to 90 percent of the recurring problems you experience in a growing company. Assign teams based on who works in what area, choose things, and let them draft solutions and systems that will work companywide.
To get started, ask everyone in your company to start a “Fix-It” list. Get them to identify what systems, guidelines, and procedures will ensure their projects will be successful and meet the overall goals and objectives. Look for systems that produce the same results every time, guarantee on-time schedules, deliver quality workmanship, improve productivity and enhance profitability. These written and formalized systems will become your playbook.
An example of a field operational system is:
Project Field Start-Up Meeting
- Hold meeting on-site prior to job starting
- All subcontractors must attend
- Meeting led by superintendent, foreman
- Review project goals and objectives
- Issue all subcontracts for execution
- Issue complete plans and specifications
- Review project schedule
- Discuss anticipated problems
- Shop drawings and submittal system
- Review quality standards
- Review job and safety rules
- Discuss required permits and inspections
- Review payment procedures
- Insurance requirements
- Change order procedures
This field start-up meeting system ensures every project gets the full attention of all involved. By holding it on-site, everyone sees the job site and can anticipate potential problems. When the field superintendent or foreman leads the meeting, this forces them to be ready and prepared to discuss the project from start to finish. By clearly outlining the payment, shop drawing and change order procedures, and approval requirements, this reduces misunderstandings. Note: this is a mandatory meeting for all subcontractors and suppliers who are a part of this project. Without attendance, you’ll never get their full attention and they will not meet the project goals you want.
Without systems in place, you are at the mercy of your people, subcontractors and suppliers to do a good job. Systems allow you to reduce field problems and get your jobs built right the first time. The reason your projects don’t finish on time is because you haven’t made scheduling, meeting and communication standards a priority.
To build an excellent construction company, make it your priority to create, draft and implement field operational systems to minimize problems and maximize profits!
George Hedley, CSP, CPBC, helps contractors grow and profit as a professional business coach, popular speaker and peer group leader. He is the author of “Get Your Construction Business to Always Make a Profit!” and “Hardhat BIZSCHOOL Online University” available on his website. Visit www.hardhatbizschool.com[1] for more information.
- www.hardhatbizschool.com: http://www.hardhatbizschool.com
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