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Week of December 6, 2004

Front Page

* Builders Meet With Fed Chairman as Market Conditions Turn Less Favorable
* Workforce Housing Problem Hits Close to Home
* Proposed Salmon Habitat Designation Follows Cost-Benefit Approach Advocated by NAHB
* Housing Snapshot

President's Message

* Participating on the Home Builder Research Panel Is Easy and Rewarding

Housing and Economics

* Eye on the Economy

Business Management

* You Can Become the Ritz-Carlton of Builders
* Tech Talk: It Doesn't Hurt to Convert — If You're Prepared

Seniors Housing

* Affluence, Amenities and Other Active Adult Trends to Note
* Take the Active Adult Bus Tour, Let Experts Review Your Plans at IBS

Builders' Show

* Structural Insulated Panels Stand Up to Hurricane Force in ‘So Small Showhouse’
* Make Your IBS Plans Now — and Save

Housing Finance

* Fannie Mae and Freddie Mac Announce Higher Conforming Loan Limits for 2005
* NAHB Task Force on Housing Finance Reform Seeking Input from Association Members

Small Builders and Remodelers

* A Clear, Concise Paper Trail Leads to Smoother Running Jobs

Green Building

* Entries Sought for National Green Building Awards

Environment

* Vigilance Advised as Effort Begins to Modernize Flood Insurance Rate Maps

Construction Safety

* OSHA Clarifies Fall Protection Requirements for Working From Exterior Wall Top Plate

Multifamily

* Ron Terwilliger Named Chair of Multifamily Leadership Board
* Sustainability of Current Condo Boom Among Topics to Be Examined at Pillars Conference

Women's Council

* Number of Women in the Construction Industry Grew 22%

Sales and Marketing

* SMI Magazine Wins Folio Award

Commercial Builders

* Adaptive Reuse Is a Profitable Alternative When Budgets Are Tight

Labor

* Student Chapter Job Fair at Builders’ Show Expected to Be the Largest Ever

Building Products

* New Technology Gives Home Builders and Buyers Easy Access to Warranty Information

Builder's Engineer

* Bad News Bearers — Friend or Foe?

Building News Coast To Coast

Association News & Events

* Grand Rapids Builders Lament Loss of Bill Zylstra
* Save 50% on NEBS Holiday Cards, Calendars and More
* Awards Programs Deadlines
* Calendar of Events

NBN Back Issues

 

Bad News Bearers — Friend or Foe?

How do you handle bad news about your company? The answer has everything to do with how successful you are or will be.

If your company was perfect, this wouldn’t be an issue, but your company, like mine, like everyone’s, is not perfect. Our companies make mistakes daily (hopefully small ones). We learn from our mistakes. We learn, that is, if we are astute enough to notice, and if not, only if someone alerts us.

So, when someone brings a miscue to your attention, do you embrace that person and thank them? Or do you proudly deny all, and berate them for insulting you?

Case in Point No. 1. I know a businessman, Phillipe Crappe, who owns a surveying company. Neither the company, nor Crappe has ever made a mistake. Even though countless clients, peers and jurisdictions have brought errors to Crappe’s attention, it is always someone else’s fault. And how dare they accuse! Crappe simply cannot be wrong. To his way of thinking, if he were to admit a mistake, people might think he was incompetent and not hire his company again.


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The reality is, as soon as Crappe’s clients learn this about him, they will not come back. I know I won’t, chiefly because Crappe is a liar. His firm does above average work, yet I will not use them, even if it means delays to my project. When things go sideways, and they will, I want a company to step up and take their due That’s how I conduct my affairs, it’s what I teach my kids, and it is what I expect of those I deal with. Anyone who is never wrong cannot be trusted.

Case in Point No. 2. A good friend of mine, we’ll call him Bobby Cheerful, owns a construction company. I’ve hired his company many times, but lately, their performance has been sub-par. I didn’t say anything the first couple of flub-ups, but when they screwed up a third time in less than a month, I knew a meeting was in order.

“Bobby,” I said to him on the phone, “we’ve got a problem I want to talk with you about.”

“Uh-oh,” he replied, his normally cheery voice edged with anxiety. “Okay, sure. But, uh, can you tell me the nature of the problem?”

“Well, your guys messed up a concrete pour. It wasn’t a big deal, but it’s not the first time. I know you haven’t been to the job site in a while and thought you ought to know what’s going on. What are you doing for lunch later in the week?”

“Tim, if we’ve got a problem, and it’s okay with you, I’d rather not wait until the end of the week. How about lunch today?”

“Well, I suppose so.”

“Great. See you at Rocket Rodney’s at noon. I’m buying.”

When we got there, Bobby had his project manager with him. After some pleasantries, I got right to the issues.

“Bobby, I don’t want you to take this the wrong way, but there have been enough problems with your company’s work lately that I would have a tough time recommending you.”

Those are words of doom to any business owner. Bobby’s perpetual grin was now gone; I had his full attention. I went into the specifics of the problems, sticking with my own factual observations. I avoided mudslinging based on he-said, she-said and hearsay. I felt it was also important for Bobby to know that I’d heard some of his other customers making similar complaints and that mine were not isolated incidents.

Bobby listened attentively, not once interrupting with excuses. When I finished, he explained what he thought were the problems and why they were happening. He and his project manager openly discussed methods already underway to correct the problems, as well as additional measures that would be taken. He was embarrassed, extremely apologetic and offered several times to make it right, whatever the cost.

Had Crappe been there instead of Bobby Cheerful, I wouldn’t have even been able to finish explaining the issues. Mid-discussion, our roles would have somehow reversed: I would have been the one lectured as to the vast and great improprieties foisted on Crappe’s staff by a world full of Evil Plotters and Incompetent Boobs (none of which could have possibly been his own) and that Crappe Surveying Inc. actually averted a major catastrophe on my behalf — how dare I complain! I should be grateful, instead, that the problems were soooo small and insignificant. Good thing this meeting never happened.

In summary, I will do business again with Bobby Cheerful because he stepped up to the plate and took ownership of his company’s problems. And more importantly, he took the necessary proactive steps to correct them. But Phillipe Crappe will never enjoy the privilege of learning how his company could do better, at least not from me.

Tim K. Garrison P.E. of ConstructionCalc.com has authored books and short courses and lectures on topics relevant to builders. Got a technical or management issue? E-mail buildersengineer@constructioncalc.comTim reads every one.

This column cannot be reprinted without permission from the author.

The views expressed in this article represent the personal views, statements and opinions of the author and do not necessarily represent the views, statements, opinions or policies of the National Association of Home Builders. NAHB does not necessarily endorse any of the views expressed by the author and NAHB is not responsible for any direct or indirect consequences arising out of the views expressed in this article.


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