I need a realistic view point on management...

[Rush2112]

Hello,

I work for a mechanical contractor. I am the son of the father that owns the company. I am not the "normal father's son" as I have started working here 18 years ago (basically since high school) and am now managing the commercial construction division which oversees about 50 employees and 10 million in sales - growing every year. I have not gotten anything given to me, rather, I have worked hard to earn respect and maintain humbleness and intelligence in all of my dealings.

I am not an owner in this company. My father owns 100%. I report to a general manager. She was hired on about 5 years ago. She is not construction literate, but thinks she knows what needs to be done. Often times she will ignore my recommendations or input.

In the department, we have a construction manager (oversees the PMs), two project managers, 5 trade project supervisors (similar to superintendents), a few foremen, a host of journeymen, and a few apprentices. The office support includes a CAD technician, admin assistant, estimating assistant, and an estimator in training.

Lately, we have had a problem with submittals and shop drawings not being done correctly and constantly getting rejected, schedules not being followed, and a lot of PM issues with things not happening when they are supposed to happen. My research indicates that the PMs are overloaded rather than incompentent. They are not catching the details. I am tied up in estimating constantly since my estimating team is young, requires training, and lacks experience. We are currently soliciting for a Sr Estimator with little success.

My construction manager has been with the company for over 10 years and is an asset to the company. But I think his sights are set on retirement (which may be less than 5 years away). I wonder if he has it in him to continue oversight of the PMs and these problems. And it does not appear like he is interested in being proactive, rather he seems to be reactive.

I am looking for input into the following...

1 - I am a manager. I don't seem to have the tools to ensure success. It seems like I am always on the verge of failing. What is important to me is regular and consistent good performance - both in the office and field. I have asked the GM and the owner for permission to hire another PM and a PM assistant, to which the answer is no to the PM, but possibly to the PM assistant (they want to review the PM tasks and see if they are delegating enough of their duties). Quite frankly, I am burning out in this position and don't think I can keep going. Does anyone have any first impressions as to whether we are a typical mechanical company relative to the number of management positions (ie are we light, heavy, or ok)? Any other words of advice to deal with this situation would be helpful.

2 - We had a financial review the other day - these occur monthly. Our bottom line stinks and the owner was pretty upset about it. I would like to know if anyone can point me in the direction of a website or information that I could use to compare how typical we are in this area? In other words, for the amount of sales we perform, what should our bottom line read?

Of course, all of this continues to make me believe that I do not want to be here any longer. I would like to find a job as an estimator - that is what I really like to do. Our state is a small atmoshpere and I don't think I could go anywhere else and work - my integrity won't allow me to work for my dad's competition. Therefore I would have to move out of state - something that I really don't want to do. I am being pretty brief in all of this (despite the lengthy posting). Anyway, any feedback would be much appreciated.

Rush2112

[Rich]

I've worked for one of the larger GC's out there and hence have worked with some very large mechanical, plumbing, and electrical contractors in the nation. One job we had an HVAC contractor where his bid was around 9 million, electrical was close to that as well. What I noticed was that no matter who was at the helm (they had changed several PM's on that job due to work volume in other locations) they always had excellent submittals and met the schedule. I sat down with one PM one day and asked how they did it. As you know when new people set foot on a jobsite with no prior knowledge it typically takes some time to get in the groove. He said "process". And looking back at the company that I worked for it was all about process. We setup every job internally the same, all the forms were the same, schedules were generally the same, submittals were dealt with the same, etc..etc.
Now to put this HVAC company in perspective they had 4 people on that one job full time. One GM, one PM, one office engineer, and a field supervisor. Then 2 engineers that worked part time on the job at their main office. Then of course the field personnel actually performing the work. The GM was split between several jobs so was only there during monthly walk through inspections. It was really nice to deal with this company because I only had to meet with one of 2 people - Super for field issues and OE for office issues.
So I wouldn't necessarily look at number of people (although that may play a major role and I'm not trying to downplay that aspect) but look at the process of how things get done.

[Rush2112]

Rich,

Thanks for taking the time to respond. You bring up some very good points - I agree about process...we need some more of that.

Mike

[homebild]

Resign and start your own firm.

That's my advice.

You appear to have all it takes.

Luck

[LNoahs7777]

Resign and start your own firm.

That's my advice.

You appear to have all it takes.

Luck

This is good advice.
You seem like a very intelligent man.
You need to have a business you can call your own.

I hope it works out.:p

[homehelper]

Rush 2112,
I thought Rich gave a good reply. It was an example of the importance of a SYSTEM. That should be your focus - not running out on a sinking ship. If you're in your mid thirties, your dad will probably retire (or at least semi-retire) in the next 5 to 10 years and you will take over an ESTABLISHED firm rather than struggle with a start-up firm. Of course their are other factors to consider - single or with family; current cost of living and if you can afford to carry a new company until it's self sufficient. If it was me - and it once was - I would make what you have work better.

This is what I would do. First, make a list of the problems. Also think about, and list the solutions you think might fix the problems (but don't mention those to anyone). Second, schedule a weekend meeting with the key people in the company that represent a cross-section of office and field. Make it a Saturday, away from the office - your house, or rent a conference room at a hotel. Let everybody know that it will be 4 hours long and arrange for food and refreshments.

It's your meeting. Start with a frank explanation of the problems - just like you did in your post. Explain that this is a brainstorming meeting to develop ideas to solve the problems. The only parameter to set is that your goal is to develop a SYSTEM which will work regardless of the personnel involved (as suggested by Rich). Have a very open discussion - no such thing as a bad idea. Formulate as much as you can. If you can't finish in one meeting, schedule a second.

Put together a system that works and you will win the respect of everyone involved - including your father. When the time is right, you will be in charge of something that works and makes money. By the way, a subcontractor like yourself should be making about 33% before taxes.

If you have any questions, contact me - I've been there.
Good Luck!!

home helper
www.continuous-home-improvement-help.com.

[rabmark]

process management is a great approach, you can manage it. you can't manage people...

but I like the other advice too, do your own thing!!

My father was in a similar position to you, however not the son. For all it was worth and all his labors and sacrifice. He got hosed. Thats the short story. After 13 yr in business Im finaly wising up and putting together a B-plan, and with the help of SCORE, hoping to finally get it right.

I can understand your feelings about putting a knife in someones back and how distasteful the thought is. However, you have nothing here except stress and sacrifice. On the other hand I'm betting you have a family of your own who your responsible to to be the best you you can.
Its time to stand up, and be heard. Produce your B-plan and show it, the powers that be will accept it or not. If not you gave them first refusal and fair warning. Then set out and show them how its done and feel great about it.

"It is not necessary to change. Survival is not mandatory."
--W. Edwards Deming