Case Study - Growing Pains Create Havoc
Off and running, this construction services company experienced what every business dreams about: early success; a growing client list; strong cash flow, and high profitability. Unfortunately, this success also created havoc for the three partners.
As the company grew beyond a small, easy-to-manage operation to a company with 40 employees, the partners were not prepared to handle the challenges that accompany a growing staff.
Because the company had loose employee policies and procedures in place, and failed to address its outdated operating systems, it seemed the only thing on the fast track was discontent. This sour atmosphere put a strain on relationships both inside and outside of the company. Put simply, the company was like a speeding train running out of control. But there was good news: the partners knew they needed help and reached out to the ABEL Business Institute.
ABEL Adviser Identifies 4 Major Challenges
- Outdated and Inefficient Operations: Because the business continued to operate just as it had during its start-up and early growth stages, team members were spending more time completing tasks and projects than they had in the past. Frustrated and stressed-out, morale was sinking fast.
- Hiring for Skills: Instead of focusing on character and attitude when hiring, management focused on a candidate's skill set. As a result, a few "rotten apples," those who lacked people skills and made poor team players, were hired. This had a devastating effect on the company's values and principles.
- Lack of Appropriate Polices and Procedures: Because of loose policies and procedures that were rarely enforced, when a new employee was hired, a double standard of rules emerged. For instance, an employee who was with the company during its early years could continue the practice of leaving the office to run an errand, while the newest hires were forbidden. To the newer employees, this was a blatant case of management playing favorites. The resentment over this and other acts viewed as favoritism added more fuel to a company dealing with low morale.
- Lack of Strategy and Direction: Because the partners were constantly putting out fires and operating in a perpetual reactive mode, there was no time to focus on the future and strategically plan how to manage the growth of the organization. This constant chaos created stress among the partners and stoked the flames of discontent throughout the company.
ABEL Adviser Solutions
- Business Operations Updated: After assessing and analyzing business operations, the ABEL adviser helped the company maximize its resources and minimize waste. Reorganizing workstations so the people in one department were together, instead of scattered throughout the office, allowed employees to actually function as teams. In addition to improved communication and greater accountability among the team members, this simple change ushered in a new sense of "family" and loyalty throughout the company.
- Hiring Strategies Refocused: To stop hiring mismatches, the ABEL adviser pointed out the benefits of shifting hiring practices to focus more on the leadership potential and personality of a candidate, and less on the raw skills required by the position. After identifying base skill sets for each position, the ABEL adviser worked with the company to develop an interview strategy that focused on the qualities that make a candidate a good overall fit for the company. In addition, new employees received skills training after they were hired. This practice showed employees the company cared about them. By making the employees feel more appreciated and connected, they, in turn, were more productive.
- Standard Policies and Procedures Implemented: To end the resentment and bitterness among the employees over how differently they were treated, the ABEL adviser assisted the company in developing and implementing companywide policies and procedures that were specific and relevant to the company's culture and applied to everyone. By leveling the playing field, a new sense of fairness emerged. With the new policies and procedures in place, morale improved. Now, instead of dealing with disgruntled employees, management could focus on other aspects of growing and improving the business.
- Strategic Planning Implemented: With an organizational structure in place and the major kinks worked out, the company leaders were spending less time reacting to situations and spending more time focusing on the overall strategic direction of the company. The ABEL adviser set up a schedule that included monthly strategic meetings for the partners and bi-weekly management team meetings. This renewed focus on strategic planning continues to improve the company's operations and drive growth.
Results
With all of these changes, a leaner, more efficient company has emerged. Most important, these changes brought about a stronger sense of teamwork and accountability companywide. When people feel appreciated and believe in the purpose of their work, they become committed to the company's vision. By creating an atmosphere of mutual trust when little existed, the employees are proud of their work, and the leadership is focused on the growth of the company instead of its survival.
