NBN Online for the week of April 11, 2005

(Plain Text Version) for full graphical version, click here.

In This Issue:

Front Page
Land Shortage Shapes Strategy of Multifamily Builders
Condos Hot While Rental Market Warming Up
Nation's Building News Will Not Be Published Next Week
Subscribe Your Employees to NBN for Chance to Be the Next Winner of a Digital Camera
President's Message
NAHB Is Your Business Partner
Coast to Coast
Home Builders Association Launches Liability Insurance Company
Politics & Government
GSE Debate Continues on Capitol Hill
Arizona Voters to Decide on Mandatory Sprinklers
City Prices Out Minority Home Buyers in Texas
Economics & Finance
Eye on the Economy
Business Management
Change Order Strategies That Can Make You Money
Seniors Housing
Universal Design ― Satisfying a Growing Market
Multifamily
Pillars Awards Honor Excellence in Multifamily Housing
Remodelers
What’s Your Specialty? — Really
May is National Home Remodeling Month
Sherry Schwab — April Remodelor™ of the Month
Education
Booming Condo Market Commands Attention at Pillars
Education Calendar
Construction Safety
OSHA to Inspect Construction Sites on Weekends
Tips
Builders’ Tip: Cutting Engineered Joists
Sales
How to Get ‘The Look’ in Your Model Home
Design
Best in American Living Award Design Competition Now Open
Legal
IRAs Exempt From Bankruptcy Creditors, High Court Rules
Labor
Mississippi Celebrates First Project CRAFT Graduates
Job Training Initiative Beginning in Four States
Building Products
Special Theater Created for Sick Children in Florida
Builder's Engineer
The Soy Sauce Incident
Association news
Builders Celebrating New Homes Month This April
Jacksonville Builders Star in ‘Extreme Makeover’
Builder, Associate Named New Jersey Legends of Housing
Endowment Awards $100,000 Grant for Residential Construction Program
Get GM Discount on More Than 80 Vehicles
Help Tsunami Survivors Rebuild Their Homes
Calendar of Events

The Soy Sauce Incident

The guy in line ahead of me had the same idea as I did: lunch to go from Chin’s Teriyaki. He got to the counter, received his Styrofoam box, and reached over to grab two or three soy sauce packets.

“That will be 20 cent extra per pack,” the young Asian gal behind the counter said in broken English.

The guy, we’ll call him Vinny Veinbulge, looked to be a construction worker, probably not the most sophisticated fellow you ever met. At the thought of having to pay extra for a penny’s worth of soy sauce from a teriyaki joint, he looked up, astonished. A vein in his neck suddenly bulged noticeably. “Scuse me?” he said. “You mean I gotta pay extra fer soy sauce?”

“That right,” came the innocent reply. “Manager’s order.”

Now another vein, this one in his forehead, was pulsing largely. He replied, “Well, is any included with my meal, inside the box?”

The gal picked up on his growing anger and struggled to keep her composure. She replied nervously, “No, but we do include one tub teddiyaki sauce.” She then pulled a small plastic tub of brown fluid from inside his Styrofoam box. “And this one free.”

Now Vinny’s face was flushed red. “Lemme get this straight. I’m spendin’ six bucks on Chinese food at a Chinese restaurant, and you’re gonna charge me sixty cents extra for a nickel’s worth of soy sauce?”

The gal fretted noticeably, avoiding eye contact. “Sorry mister, that manager’s order. I no can change.”

“Well then, you can tell your manager to take his lousy food and his soy sauce and [blankity-blank-blank-blank].”

He then spun and stalked out empty handed, no fewer than 15 purple veins pulsing wildly across his face and neck. 

The poor Asian gal was shook up, nearly in tears. I approached the counter and with a gentle smile said, “Is the to-go order for Garrison ready? By the way, I won’t be needing any extra soy sauce.”

She managed a grin, appreciative of my attempt at levity.

This little scenario illustrates several important business lessons: 

  • Penny-wise but pound-foolish. Everybody knows soy sauce packets cost money. But the cost doesn’t even register compared to the cost of losing business. Vinny won’t be back, and he’ll undoubtedly tell all his buddies about his experience. This is akin to a contractor being overly frugal with nails; or a consultant obsessing over paper and pencils. Certainly, those cheapskates among us are inclined to counter, “Waste Not, Want Not,” a valid point.  However, there is a balance, and if you must err, err on the side of “Don’t Sweat the Small Stuff."

Put this concept to work for you. An architect I know has a reputation for unresponsiveness and mediocrity. Yet he is always slammed with business. Why?  Mochas, that’s why. He generally brings or offers to buy coffee, lattes, mochas, donuts, lunches, etc. Plus he is a really nice man, very well-liked on a personal level. He understands that cheerfully spending a few pennies here and there reaps serious dollars down the road. Many times, the deciding factor of which contractor or consultant to hire comes down to who is the nicest.

  • Give Employees a Little Autonomy. As soon as Vinny’s first vein bulged, the Asian gal should have backed down and showered him with as much soy sauce as he could stand (figuratively, of course). Instead, however, she dared not break her boss’ smallest rule. A construction industry parallel could be a framer who’s been instructed to install joist hangers a certain way, but comes upon a situation where he could save lots of time getting the job done differently, but doesn’t. This principle could apply to anything:  placing rebar, shoveling ditches, filing daily reports, you name it. There are always 10 ways of doing something; employees should have enough freedom to choose the best way. 
     
  • Check In. I seriously doubt the owner of Chin’s will find out about the Vinny incident. Yet he was likely working the grill just one room away. I bet if he had witnessed the incident, being a smart businessman, he would have recognized the folly of his rule and changed it. Bosses should check in with employees regularly, and more importantly, encourage open, two-way communication. Frequently, it is the employee — the one in the direct line of fire — who first notices problems. She should not be afraid or intimidated to take them upstairs.

 

Tim Garrison of ConstructionCalc.com, is a professional engineer, author and software producer for the building industry. Send e-mail to buildersengineer@constructioncalc.com. Tim 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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