Construction Genius

I welcome Jeff Hoopes, Chairman and CEO of Swinerton Builders, back to the show to discuss his approach to leading a multi-billion dollar ESOP company, why the structure of his executive team encourages healthy conflict, and how Jeff is striving to leave a legacy of teaching his employees how to make money, build wealth, and be part of a wonderful company. Click the link to listen to our first interview: Strategic Insights into Growing a Thriving Multi-Billion Dollar Construction Company Main takeaways: What it means to be a servant leader. How Swinerton's ESOP structure influences Jeff's leadership. The structure of, and relationship dynamic within, Swinerton's executive team The power of rejecting "yes men" Swinerton's approach to succession planning Show Notes: A little of Jeff's personal history (Bay Area real estate was expensive, even in the 1980s). How Jeff built wealth within Swinerton's ESOP structure through sweat equity Superintendents at Swinerton retire with $1m in shares. Growing Swinerton into a top 10 commercial builder in the United States. How the ESOP structure influences Jeff's servant leader approach. Why Jeff turns down other companies when they offer to buy Swinerton. How Swinerton navigated and increased profitability during the Great Recession. Keeping your ego in check: Surround yourself with people who can say "no" and tell you that you are wrong Swinerton's succession planning matrix. The "four legs" of a successful executive team: Operations, Business, Finance, Sales How the executive team engages in open debate, prior to emerging with a fully supported agreement of how to proceed. Filtering the executive team culture through the Area Managers. The value of having a diverse executive team representing the field and the office. How long-term, 30-year relationships, influence the executive team's leadership. The difference between a short-term "dictatorial" leadership style, and long-term servant leadership. Jeff's goal of making the young people that work for Swinerton wealthy, and giving them the business as a gift. How Swinerton supports people during tough personal circumstances. The importance of patience in realizing the rewards of the ESOP structure. How the ESOP structure impacts strategic decisions. The danger of using an ESOP as an exit strategy for the first generation of owners, and not as a long-term wealth building mechanism for all employees. Why ESOPs fail. Jeff's desired legacy: Teaching his employees how to make money, build wealth, and be part of a wonderful company. This episode is brought to you by The Construction Leaders Dashboard. The Construction Leaders Dashboard is one of the simplest and yet most powerful tools for leaders in construction companies of all sizes. Construction companies use this tool to get clear on strategic priorities, recruit new field and office talent who are aligned with the mission and values of the firm, and as a development planning tool to develop the next generation of leaders. It will empower you to: Focus on what matters, so that you spend your time doing the things that have the most impact with clients. Make sure that everyone in the organization is aligned, accountable, and contributing equally to the company's growth and success. Attract, develop, and retain future leaders who can continue to move the organization forward. To instantly download your copy of the dashboard, go to: https://www.ericanderton.com/cld

In this episode we cover three things. The Wisdom Silos The Danger of Silos How to Use Teamwork to Win the Battle Against Silos Inspiration for this episode comes from Chapter Five, "Cover and Move", of "Extreme Ownership: How U.S. Navy SEALS Lead and Win", by Jocko Willink and Leif Babin. Check out Jocko's Podcast What is a silo? An isolated grouping, department or team that functions apart from others. 1. The Wisdom of Silos Breaking down into different function and different projects allows for Concentration… leading to higher productivity Consistency… each day I know what I'm doing and what's required Accountability… I know who to go to when issues occur etc. Which leads to higher performance (safety, quality, speed) But you have to realize that intentionally or unintentionally the silos can create challenges that hinder the overall effectiveness of the team…. 2. The Danger of Silos Us vs. them Long term grudges Hoarding resources Refusing to communicate Rejoicing when something goes wrong (The enemy is not within) Myopia or shortsightedness distant objects blurry, close objects clear It's not intentional Not understanding the needs of the other parties Miss out on opportunities to improve Not sharing information Not working together Not understanding one another 3. How to use teamwork to win the battle against silos: Above all realize that it starts with the leadership Establish and communicate a Clear mission and vision for the company, each department and each project See Episode 10: How to Clarify Your Company Vision (And Why It's Vital to Your Success) | Ep 10 Map out your organization structure and develop Peer to Peer Relationships Establish tours of duty for aspiring leaders Have the senior leaders "show their faces" in different places In executive meetings: Allow advocacy but come to an agreement Don't air dirty laundry with outside parties Watch your personal bias Don't allow "step-children" Stay humble Leading a Construction Company is Challenging It is common for construction company owners like yourself to struggle with getting each employee contributing equally to your organization's success. Despite your best intentions, it's tough for you to find time to break down the silos that exist in your business between the field and the office, and to get everyone to take accountability for the production, quality, and safety goals of each project. These issues not only create stress and frustration for you, they cost you money. I have worked with construction company owners for over fifteen years, and have developed a short assessment which will quickly identify the specific leadership areas you need to work on. To take the assessment click this link: https://www.ericanderton.com/construction-leadership-assessment/

Mark Bley has worked in the Construction Industry for over 30 years. He has been on Dome Construction's staff since 1981 and has been President & CEO since 2008. Before becoming President & CEO, Mark acted as Project Manager on Dome Construction's staff for 24 years. His work experience prior to joining Dome includes heavy construction and electrical utility construction and design. To keep young, Mark has mentored 7 boys through Urban Services YMCA Building Futures programs. He is strongly committed to giving our youth every opportunity for their future. Both he and Dome Construction are sponsoring Urban Services Empowerment to Employment (E2E), Genesys Works, and Immaculate Conception Academy and All Stars workforce development programs to assist our youth to become productive. He is on the Board for the All Stars Project. My interview with Mark covers his "prodigal son" beginnings in the construction industry. How he returned and thrived at his father's company by building unique projects for companies like Genetech that he found interesting and challenging. We also explore how Mark avoids the traditional top down command and control leadership model that many construction companies use, in favor of pushing power out to a variety of construction groups that are responsible for developing and executing their own business plans that integrate together into the overall business plan of the company. Finally we hit on Mark's advice for growing a construction company, his perspective on mistakes, and what Mark is doing to prepare his business to be passed onto the next generation. Show Notes: Mark's "Prodigal Son" beginnings. How building the first large scale Genetech project hooked Mark back into construction Mark's personal pursuit of projects that interested him. Taking responsibility for Dome's pharmaceutical construction group. How Mark leveraged his personal insight of pursuing interesting projects into growing the company as President and CEO. Structuring Dome into groups (based specific industries) and allowing the groups to determine their destinies. Combining the goals of the individual groups with the overall company goals. The positive aspects of avoiding "command and control" leadership. Moving from industry specific groups to client specific groups. The goal of perpetuating the business to the next generation by delegating responsibility, teaching business planning, and allowing people to pursue projects that interest them. How moving away from a "command and control" structure makes the company more dynamic and efficient. Mark's outlook on mistakes: It's not a failure, it's something we tried and didn't work We are committed to learn from it We make sure the whole company benefits from the learning opportunity How to grow your construction company: Encourage people to pursue projects and clients that interest them Use a common set of metrics that everyone understands and that everyone is accountable for Praise people's accomplishments Mark's San Francisco restaurant recommendation: Coi Additional Links: Dome Construction Mark Bley's LinkedIn Profile This episode is brought to you by The Construction Leaders Dashboard. The Construction Leaders Dashboard is one of the simplest and yet most powerful tools for leaders in construction companies of all sizes. Construction companies use this tool to get clear on strategic priorities, recruit new field and office talent who are aligned with the mission and values of the firm, and as a development planning tool to develop the next generation of leaders. It will empower you to: Focus on what matters, so that you spend your time doing the things that have the most impact with clients. Make sure that everyone in the organization is aligned, accountable, and contributing equally to the company's growth and success. Attract, develop, and retain future leaders who can continue to move the organization forward. To instantly download your copy of the dashboard, go to: https://www.ericanderton.com/cld

3 Ways to Prepare for An Effective Problem-Solving Meeting Accurately Identify Problems Pick the Team Make the Rules Highlights Include The source of problems Product Process People Using metrics to surface problems Lagging indicators Leading indicators Get your facts straight prior to a meeting Get diverse voices in the room Limit the number of participants to between 6-10 Make the ground rules Focus Participate Don't be a jerk Prior preparation is one part of running effective problem-solving meetings. If you'd like to learn more about a meeting framework that I've used with construction companies for over a decade, click download my FREE (short) report: Kick-Ass Meetings In the report, I break down, step by step, a simple and powerful method to address your toughest challenges and build an action plan to overcome the problem in less than an hour. I know you'll find it extremely useful.

Action Items from the Interview: Three ways a contractor can ensure a successful partnering project: Understand the expectation of the client Understand the project risks and how to mitigate them Establish yourself as a trusted business advisor Three action steps when passing a construction business to multiple siblings in the next generation Build healthy relationships between siblings Help each individual find their niche Do your best to keep a healthy separation between work and family Highlights of our conversation include: The unique history of the Ghilotti family building in Northern California Distinguishing Ghilotti Brothers from other Ghilotti construction companies The key to a successful partnering project How to enhance the partnering process Managing the difference between being an entrepreneurial construction company and having institutional public agencies as customer Applying the philosophy of partnering in the private sphere The challenge of involving subcontractors in partnering Mike's plan for generational succession How to manage the expectations of the next generation How to handle sibling rivalry How Mike takes into account the different personalities of his kids The example of the Coors Brewing company Finding a niche for each of the children in the business Mike's back up plan if his kids don't end up taking the business over Mike's favorite place to eat: Marine Joe's in Corta Madera California (Ask for Paul Della Santina and get the cheeseburger) About MikeAs President, Mike's overall responsibility for the company, from bid estimate review to project completion. coordination of company resources and personnel. Utilization of management staff, monitoring department function, project schedules and job cost performance on a company-wide basis. About Ghilotti Bros., Inc. Ghilotti Bros., Inc. is a leading general engineering contractor in California. A strong complement of dedicated employees and a family-owned heritage, now in its third generation, GBI is excited about its future outlook in continuing its 100 year legacy in the Bay Area. GBI has always prided itself on being at the forefront of the industry, keeping an edge on the competition. Throughout its history, there has been a constant principle that has guided their way: "Earn respect by doing a job well, treat employees with courtesy and respect, and do good work for the community," as enumerated by our founder, James Ghilotti." Show Links: Ghilotti Bros., Inc. Mike Ghilotti To learn more about the partnering approach to construction visit: International Partnering Institute Marine Joe's Restaurant This episode is brought to you by The Construction Leaders Dashboard. The Construction Leaders Dashboard is one of the simplest and yet most powerful tools for leaders in construction companies of all sizes. Construction companies use this tool to get clear on strategic priorities, recruit new field and office talent who are aligned with the mission and values of the firm, and as a development planning tool to develop the next generation of leaders. It will empower you to: Focus on what matters, so that you spend your time doing the things that have the most impact with clients. Make sure that everyone in the organization is aligned, accountable, and contributing equally to the company's growth and success. Attract, develop, and retain future leaders who can continue to move the organization forward. To instantly download your copy of the dashboard, go to: https://www.ericanderton.com/cld

"A real leader is somebody who can help us overcome the limitations of our own individual laziness and selfishness and weakness and fear and get us to do better things than we can get ourselves to do on our own." David Foster Wallace Accountability is holding people responsible for their actions (and outcomes) appropriate to their competency, authority and within their realm of responsibility. This Episode Covers: How to lay the foundation for successful accountability How to have an accountability conversation The benefit of accountability Highlights Include: 00:02:20 The definition of accountability 00:02:38 The winning mindset of successful construction leaders 00:03:22 Why accountability is necessary 00:04:42 The team aspect of construction 00:05:46 The foundation for successful accountability 00:06:59 The "Peter Principle" in construction 00:14:31 How to have an accountability conversation 00:18:31 The frustration one of Eric's clients had with accountability 00:20:17 The consequence of a lack of accountability 00:21:48 Why don't we hold people accountable? (Fear plays a big role) 00:22:40 The benefits of accountability 00:27:24 How to get into action This episode is brought to you by The Construction Leaders Dashboard. The Construction Leaders Dashboard is one of the simplest and yet most powerful tools for leaders in construction companies of all sizes. Construction companies use this tool to get clear on strategic priorities, recruit new field and office talent who are aligned with the mission and values of the firm, and as a development planning tool to develop the next generation of leaders. It will empower you to: Focus on what matters, so that you spend your time doing the things that have the most impact with clients. Make sure that everyone in the organization is aligned, accountable, and contributing equally to the company's growth and success. Attract, develop, and retain future leaders who can continue to move the organization forward. To instantly download your copy of the dashboard, go to: https://www.ericanderton.com/cld

Alecia Wilmeth is the V.P. and General Manager of Alston Construction Company in Northern California. Alston is an ENR top 100 contractor, corporately based in Atlanta, GA. Alecia started her thirty-year career shoveling dirt on the job site. She has been a foreman, Superintendent, Project Engineer, Project Manager, and now VP and General Manager. Highlights of our interview include: 00:01:04 Alecia's rough and tumble West Texas roots 00:02:50 Her "horrific" first day on a construction job site 00:03:53 Why she rose in just three months to running the job site 00:04:59 How Alecia survived the recession in the 1980s 00:06:28 The one skill that set Alecia apart, and enabled her to excel 00:08:41 How she succeeded by concentrating on performance, and staying away from politics. 00:09:25 How she handled her shift of role from Project Engineer to Project Manager by focusing on responsibility and accountability 00:10:48 Thriving in the "Great Recession" by combining Superintendent and Project Manager roles 00:14:14 Alecia's move into senior leadership 00:17:33 How Alecia is mentoring young women to succeed in construction 00:21:10 The benefit of working in California, the state at the leading edge of societal change 00:22:39 Alecia's perspective on the discomfort some men feel with her being in a leadership role 00:25:36 Alecia's focus: not leaving a "legacy" of projects built, but rather of lives impacted. 00:28:04 Alecia's favorite restaurant: Rey Azteca in Carmichael, California Other Links: Alecia Wilmeth Alston Construction This episode is brought to you by The Construction Leader's Dashboard. It's is one of the simplest and yet most powerful tools for leaders in construction companies of all sizes. Construction companies use this tool to get clear on strategic priorities, recruit new field and office talent who are aligned with the mission and values of the firm, and as a development planning tool to develop the next generation of leaders. It will empower you to: Focus on what matters, so that you spend your time doing the things that have the most impact with clients. Make sure that everyone in the organization is aligned, accountable, and contributing equally to the company's growth and success. Attract, develop, and retain future leaders who can continue to move the organization forward. To instantly download your copy of the dashboard, go to: https://www.ericanderton.com/cld

In this episode, we cover three things. Causes of problems on construction projects The Road to recovery from failure The benefit of taking complete responsibility The inspiration for this episode comes from "Extreme Ownership: How U.S. Navy SEALS Lead and Win", by Jocko Willink and Leif Babin. Highlights: [00:02:06] Definition of Extreme Ownership [00:03:52] The Cause of Problems on Construction Projects [00:08:30] The Road to Recovery from Failure: [00:16:04] What to do if someone isn't performing: [00:20:59] The benefit of leaders taking complete responsibility [00:20:59] The Danger of leaders admitting mistakes [00:27:48] Specific next steps [00:29:03] A FREE resource to help you solve problems: www.ericanderton.com/kam The Cause of Problems: Poor Planning Poor Communication Poor Execution The Road to Recovery from Failure: Take Ownership personally, Acknowledge Failure publicly Develop a plan to win If someone isn't performing: Is it a moral issue? Train and Mentor Keep loyal to team and mission The benefit of leaders taking complete responsibility Gain the respect of the team Build trust Clear the path to addressing the issue Action Items: Ask: What problems are plaguing you? Project Based Process Based People Based Commit: Take responsibility Tell the truth Ask for help Act: Gather the team Get ideas Build an action plan If you need help running meetings download a FREE short report Kick-Ass Meetings: www.ericanderton.com/kam

Peter Tateishi, CEO of Associated General Contractors of California (AGC of California) joins Eric for a fascinating exploration of the mission of his organization. Founded in 1920, the Associated General Contractors of California is the premier organization of choice for both experienced and next generation construction and contracting professionals. Peter has been the CEO of the AGC of California since January 2018. In that time, he has been instrumental in helping the membership shape a Mission Statement that expresses the conviction that the Construction Industry is foundational to the success of California. Join Peter and Eric as they discuss: The state of the Construction Industry in California How AGC of California members are actively creating opportunities to build and strengthen California How, by shaping policy, improving industry relationships, and developing the workforce, the AGC of California members are making a significant positive contribution to the world's 6th largest economy. Highlights include: [00:02:21] The Mission of AGC of California [00:03:19] The Construction industry is vital to California [00:05:03] How the Construction industry impacts California's future [00:07:43] Planting the flag in 2018 for the "No on Prop. 6" [00:08:53] How AGC member companies strengthen California [00:09:46] The unique and varied career opportunities that Construction provides [00:12:34] How Peter's experience in politics influences his approach to shaping policy [00:16:13] Project Labor Agreements, and how AGC is getting involved with Municipalities and Labor. [00:22:36] The difference between "Workforce Development" and "Developing our Workforce" [00:23:39] Build California: A new AGC program (launching Summer 2019) aimed at changing the perception of the Construction Industry in the eyes of those who influence future generations. [00:27:41] How the Construction Industry gives people an opportunity to experience challenge, teamwork and camaraderie. [00:29:19] What Construction leaders can do to lend their voice to the promotion of the industry. Links: AGC of California Website AGC of California Mission Statement: We believe the construction industry is vital to the success of California.Together, our members actively create opportunities to build and strengthen our state.We are passionate about shaping policy, improving industry relationships, and developing our workforce.Peter Tateishi

In this episode of Construction Genius, Eric sits down with Tim Murphy, CEO of the Sacramento Regional Builders Exchange. Their conversation focuses on how to solve the construction industry's talent shortage by shifting society's often-misplaced emphasis on a four-year college degree as the only barometer of success, and by emphasizing the opportunities in the trades now available to young people who may not be best served by the traditional college route. Highlights include: [00:00:21] A story about Tim's nephew, who pursued a certificate in welding and found enormous success. [00:02:32] Parents' roles in perpetuating the college emphasis, which doesn't serve all young people. [00:04:50] The social capital college graduates achieve with diplomas from schools like Harvard and Yale, and the need to recognize construction as an integral element to our nation's success. [00:07:50] The ability to pursue a career in the trades and quickly be debt-free and financially successful. The increasingly urgent need in the construction industry for skilled labor. [00:09:23] Programs offered by the Builder's Exchange that introduce and mentor high school students interested in pursuing a career in the trades. [00:13:11] A story about Eric's son finding satisfaction in building his own IKEA bed. [00:14:46] A realistic path to career success in construction [00:16:37] Information on Cap-to-Cap, a local initiative bringing together business leaders and politicians in Washington D.C., to explore ideas for investing tax dollars back into the community. [00:17:42] The need for more workforce training funding and opportunities. [00:19:09] The often-unexpected benefits of a career in trades, like more time to spend with family. [00:22:11] Tim's favorite local restaurant! Links: Tim Murphy LinkedInSacramento Regional Builders ExchangeCreate Mentoring ProgramDesign Build Competition Other Links:If you are an owner or hiring manager for a construction company of over $20m in revenue, and would like to explore how you can use the ProfileXT assessment to improve recruiting and developing talent go to www.ericanderton.com/contact, and fill out the form. I'll get in touch with you within 24 hours. About SRBX:Founded in 1901 and serving 1200 member companies, the Sacramento Regional Builders Exchange is the construction industry's oldest and largest association in the region. The Exchange's members include area contractors and subcontractors, suppliers and industry support organizations. The Sacramento Regional Builders Exchange serves the industrial & commercial construction industry by providing education programs, safety programs, bidding information, political advocacy, networking opportunities, and other related information and events for the construction industry within the greater Sacramento Region. Through our Sacramento office we serve Sacramento, Yolo, El Dorado, Placer, Amador, and Alpine Counties.