A couple of years ago, I learned about a modular ADU startup founded by two college friends. One had an MBA. Neither had any experience in construction or production, so they hired someone they knew who had been the General Manager of a large farm supply manufacturer to help them start the factory.
The three of them began putting together business and marketing plans like they were taught in college. Those plans called for a Sales Manager, a Production Manager, a Purchasing Manager and an HR person. Any other management position would be covered by the founders and their new GM until the factory got on its feet.
After two months of hiring management and meeting with everyone for many hours a week, they had put together a plan to help them build a factory and begin producing ADUs.
But that’s when the wagon’s wheel began to wobble and fall off. There wasn’t much they could agree on so they brought in a consultant, recommended by me.
The consultant listened to their plans and talked with all parties and asked to speak with the two founders alone. He told them that they needed to bring in a startup team with modular construction and marketing experience, decide who their target market was and told them nobody starts a successful factory with managers that have no production or construction experience.
In the end, the two founders fired the consultant, went ahead with their original plan and ran out of money before they even bought the land for their factory.
The moral of the story is that building an efficient management team is a critical endeavor for any startup and even an existing modular factory. This team will lead the company toward its objectives, serving as the guiding force behind achieving its goals. The process of building such a team is multi-faceted and deliberate.
Firstly, it is essential to start by defining what you want the management team to achieve. Every member’s role and responsibilities should be clearly outlined, ensuring that the objectives align with the organization’s overall goals and vision. Identifying the necessary skills, knowledge, and expertise for each role within the management team is paramount. A balanced mix of technical skills, industry knowledge, leadership abilities, and strategic thinking is crucial.
Before scouting for talent externally, it’s prudent to identify potential candidates within the organization, if this is an existing factory, who could be a good fit. If the required skills and expertise are not available internally, extending the search externally becomes necessary. A priority should be placed on finding individuals with experience in modular production, who have proven leadership abilities, considering their capacity to inspire and motivate others, make decisions, solve problems, and communicate effectively.
Cultural fit is another significant aspect to consider. Candidates should align with the company’s culture, values, and mission, as this is vital for team cohesion and overall job satisfaction. In building the team, aiming for diversity is beneficial. A team with varying perspectives, backgrounds, and experiences fosters creativity, innovation, and better decision-making.
Conducting rigorous interviews is a step that can’t be skipped. Utilizing behavior-based interviewing techniques helps assess past behavior and performance. Situational and case-based questions are instrumental in evaluating decision-making skills and problem-solving abilities. Additionally, conducting thorough reference checks and speaking with former colleagues, supervisors, and direct reports can help verify past performance, work ethic, and interpersonal skills.
The modular construction industry is relatively small compared to the overall construction industry and everyone seems to know each other personally or through modular conferences and LinkedIn. A few well-placed calls for references will yield who you should call to fill your new management team.
Once the team is in place, investing in training and development programs enhances the skills of the management team. Encouraging continuous learning and professional development is essential. Facilitating team-building activities and workshops can help foster strong relationships and trust among team members. A focus on open communication, collaboration, and constructive feedback helps build a cohesive team.
After the formation of the team, it’s important to set clear expectations and establish both short-term and long-term goals. Regularly reviewing progress and adjusting goals as necessary is key to staying on track. Empowering team members by giving them autonomy in their roles and holding each accountable for their responsibilities and deliverables encourages a sense of ownership and responsibility.
Recognizing and rewarding the team’s achievements and contributions fosters motivation, job satisfaction, and loyalty. Finally, conducting regular reviews of the team’s performance, dynamics, and efficiency and identifying areas for improvement helps optimize processes and workflows.
Have you noticed that so far, you haven’t been assigned much to do except organize, control, evaluate and report? Guess what, as the owner, that is the most demanding and important job in your business.
By meticulously following these steps, an organization can build a management team that not only aligns with its goals but also significantly contributes to its success.
Building a successful team is an ongoing process, and it’s vital to continually assess, develop, and support the team members to ensure sustained efficiency and effectiveness.
CLICK HERE TO READ SEPTEMBER’S ISSUE
Gary Fleisher, the Modcoach, author
