tiletrade

How To Have A Successful Project

Isn't that a compelling statement? Wouldn't it be great if you could read a couple hundred words here and the answer was apparent? Well, let's face it, the obstacles to success are many and varied. The best advise that can be given here is probably incomplete and has to be generic in nature. But here are a few things to consider:

1. Are you being asked to take on more than a tile or marble project? That is, are there further constraints or project goals? I am thinking of LEED requirements for green building practices. Also, XBE requirements for social justice and equality as a goal. Both could be valuable goals that stand alone as worthwhile, but both are separate and unrelated to proper installation of stone or tile. These goals and the effort required take up valuable management time, sometimes delay payments, and generally confuse the primary goal of achieving a properly installed marble or tile system. These sorts of issues can zap profits. Consider them carefully. Perhaps other projects would be better candidates for your time and energy. 
2. Aligning your skill sets as an organization with those required. If you have highly skilled installation crews you can tackle complex work. If not, focus on what your crew can correctly accomplish. It's okay to push the limits a little at a time, but if they can't float out mud walls, don't sell that sort of work on a large project. 
3. Don't work for slow payers, or accept cash terms from suppliers, unless you have the cash on hand to finance the work. Pay attention while bidding to these issues, not after award.
4. Are the bid documents so convoluted that you seriously question the integrity of the designers? Are they deliberately trying to confuse the bidders in the hopes of injecting errors into the process, with themselves as the arbitrators? It's a sad reality today, whether deliberate or through sloppy documentation. 

Sometimes what looked like a great opportunity at first simply isn't. It may be better to pass on certain 'opportunities' and look for success rather than simply work. It's always a balance, especially in lean times. If you do take on some of these secondary project attributes, at least know it and weigh the cost. 

Managers - Visit the Jobsite

Most of my work is in the office. That wasn't always the case. I try to remember that while I'm working at an estimate, returning phone calls, and getting another cup of coffee, that our people are out on jobsites. They are working in marginally acceptable environments, safety is always a concern, and they are the front line for our business. What they do is either making or breaking our business plans.

I think that it's critically important for managers to get out to the jobsites frequently. Even with good site supervision in place, the people on the job are going to feel a tighter bond to the company when the Project Manager knows them. I would go so far as suggesting that the President of the company visit jobsites with the Project Managers on a routine basis. The work done installing the tile, marble, or terrazzo is our service. All of management needs to be aware of the work while it is underway. Just as important are the people who do that work. Focus on appreciation first, and if there are issues evident while visiting the job, upper management ought to speak to the Site Manager in charge. These visits are to encourage quality, company-wide goal achievement, and personal recognition for the people who do the work.

Realize that the Site Manager, the tile installers, and their support crew are both capable and interested in success as well. Draw on their positive energy and desire to make a difference.

Perceptions and Customer Sentiment

I wonder if you have recently thought about how you appear in the marketplace? What do you think that your potential customers think about when they think of you and the services you provide? If you've been in the business for a while that could be a disquieting thought. Jobsite issues, late deliveries, and quality concerns might run through you mind. How much negative baggage you have depends upon the time you have spent in the market and how your company responds to issues. Problems occur for the best companies; it's what we do with those problems that matters.

More than likely, if you are running a successful business, the issues have had some effect, but your management team has mitigated a lot of the concerns. Your customer is also in the construction business and understands that things don't always work as intended. What you do to keep that customer from feeling any negative effects of a problem means everything to them. So, you probably have plenty of scars from the battles, but also, you likely have respect for your ability to take responsibility and effective action while under fire. All of that crisis control only gets you back to a neutral position though. How do you get a positive viewpoint?

Because this is so important, it would really pay to be able to answer this sort of question with conviction and information that backs the conviction up. You really ought to know what the customers think of your organization. Also, and this is key, your company ought to be shaping that thought process.

Advertising agencies call it branding and have all sorts of ways to influence a customer's perceptions, behavior, and attitudes. In the tile and marble industry we usually can't afford an elaborate advertising campaign. But that doesn't mean that the idea of shaping perceptions and attitudes is unimportant. Rather, it means that this is an undeveloped opportunity to exploit. The ability to change sentiment in a positive manner could reap significant rewards, over time it could change negative views, and change neutral attitudes toward positive sentiment, and can help closes sales, increasing revenue.

One simple way to communicate a message concerning your business is by adding information to all of your written correspondence with the outside world. The idea is to send messages about your value proposition to customers and vendors; tell them why they ought to work with just you. Include a newsletter or a brochure with new invoices and correspondence. Add PDF files of your message to outgoing emails that showcase your marble shop for example, or your latest and greatest project.These are simple and effective ways to demonstrate your abilities to everyone. Use photographs to help tell the story.

Another important way to add credibility to your message is by publishing White Papers concerning individual technical issues. The subject of these White Papers are those that would help the customer to understand some unique part of the business. A White Paper should be informative, it should address a specific topic, and most importantly it should solve a specific problem for the reader. Importantly for you, it should present your company as a solution to that problem but subtly, don't over do it. Avoid talking about your interests; talk about the problem and solution that concerns the customer. Help them to solve their problems and to feel more knowledgeable. Your message is absorbed while accomplishing that goal.

If you send out email promotions, don't start spamming the people that you hope to influence. Consider starting a campaign based upon permissions from your customers. Use email to forward proposals, along with your marketing messages, all in PDF format. Use informative file names. Use color and photo images to grab attention. Use hyper-links within the email message to get people to visit your company website, and develop content within your website that makes it compelling. This will not happen overnight. Continually add information to your site that will help your clients. Adding MSDS sheets and product literature for your primary installation materials would be a benefit, and would also help your managers in their daily activities. A section for the afore mentioned White Papers makes good sense, and information about your people and their contact information are good uses for a page within the website. Don't just limit the website to a sales pitch. No one is going to want to stop there more than once to see that. A website needs to have compelling content that is updated with some frequency.

If project opportunities are appearing less frequently, and competition is up, wouldn't the positive messages discussed make sense? If you haven't done this sort of thing before, these are opportunities available to you at relatively low cost. So why not start? A single message, or a modest campaign by email, even within your current mailings, is a low cost way to create positive sentiment for your business.

If you need some inspiration, then look at what companies like Starbucks or Apple Computer have done with marketing messages. These companies get premium dollars for their products; products similar to those sold by many of their competitors. Their distinct difference is one of image, and a desire on the part of their customers to do business specifically with them.

Proposal Letters 1

A lot of my associates are afraid to add information to the bid documents when forwarding a proposal. I myself like to write a proposal letter that answers most of the customers questions, and that adds other useful information to get them talking with me. Also, I like to add certain ‘Clarifications and Qualifications’ to this letter. If I’m pushing my luck, I’ll only add the absolute fewest that I can. But sometimes it’s easy to see that the bid documents are not good, and you need to eliminate issues. On a large project I might include 15-30 numbered statements to say what I am bidding and what is not included.

I usually add a statement to the effect that, “These statements are not intended to limit your ability to manage the work in progress correctly. We are simply attempting to fully describe our proposal and to eliminate as many outstanding questions as possible as you consider our proposal.”

You can’t always qualify your proposal, but when you can it helps to avoid disagreement later. Try to get your proposal letter bound as an attachment to the contract agreement. After all, it is your proposal.

Also, add an attachment that shows your work if you can. Today with emails and PDF file attachments it’s not too difficult to add a lot of information that can showcase who you are, and what you do.

tiletrade – The Book

As I have previously posted, I'm thinking of ending my writing here in this weblog. I've written now for a few years and have gotten most of the information that I wanted to write out and published. Much of it is now scrolled off in the archives and from time to time I've pulled an article out and freshened the content, but that isn't really adding to my body of work. So I'm thinking that it's time for me to pull the more meaningful articles together, do a thorough edit and re-write, and publish the information in a manner that puts the important details into their correct context.

I like writing here. I like the idea of simply putting a paragraph or two on the site about some relatively insignificant matter. It's almost like using a notebook, except that I'm sharing the thoughts with all of you. It's often recommended that you ought to 'write what you know'. Well frankly, I've done that regarding estimating. Now it's time to write a more wide ranging subject. I always feel like I'm cheating a little when I write about fringe issues, as related to estimating and management.

Another thing that's changed for me is the amount of time that I'm actually estimating. My projects have become larger and larger, and I both estimate and then manage the work. My time doing estimates is therefore becoming more infrequent, while my management time is increased dramatically. Honestly, I don't think that there is any shortage of information concerning management of projects. The real shortage of information was with regard to estimating in our industry.

We're doing millions of dollars worth of business, and for the most part, the estimators are self-taught, or are taught in-house. There is just a ton of opportunity to do better. That betterment would be to the advantage of everyone in the industry. Contractors would make more money, the vendors would be paid more promptly, and the quality and professionalism of the industry would increase dramatically. There are many attempts to teach installation and techniques. There are almost none that deals with the estimating process. It's the life-blood of the operation, in my opinion, since without a good estimate the project and the business simply doesn't function correctly and may wither and die.

Well that's a tangent from my topic today. You can tell that I still feel strongly about the subject. I hope to enjoy the process of getting this subject into a book format. It's sort of like a how-to for making money in the tile and marble business. Installation is vitally important obviously, but getting the right quantities and hours estimated, and pricing that work correctly are really the main point for any contracting business. Getting paid appropriately is why we work afterall.

An Update About My Writing

It's been a while since I've posted. The Airport project is going along without too much trouble. We have just gone through a problem with the granite. The supplier wasn't as diligent as we expected and they allowed some off shade granite to slip through to the job. They've been here for the last couple weeks sorting the stone as a result. That's almost over now. There are some other things that I'd like to write about, but I think that it would be a breach of trust to do so.

I've written about this before, but it's an important issue. The fact is that I'm somewhat inhibited in what I can post here simply because I don't want to divulge information that my employer would not want published. It's sometimes a matter of competitive information and sometimes parts of our business are just private, and nobody's business. I respect that and try to write about generic issues that affect all tile and marble contractors and that aren't specific to my immediate work. It's a challenge though to write in an interesting way while not including current events. I don't always succeed, I am sure.

The information that I write about estimating and management is fair game though. If my competitors were to embrace the information that I publish we would all be better off. They would be able to increase profits and we would end up with a more rational bid environment. The work would go for a more appropriate price – likely a higher figure. But it would be a fair value for the work provided. I don't think that anyone wins when bad estimates are generated. So I feel that it's appropriate to write and discuss methods that generate higher profits throughout the industry.

I'm not sure how much longer I plan to continue posting to this blog. I feel that I've written much of what I wanted to publish. I am thinking of putting this all together into a book. There are programs that can generate a book from blog entries. That might be interesting.

I'll try to post a little more frequently in the next while, and will advise you if I intend to stop posting concerning estimating and managing tile and marble commercial projects. I'd probably leave the site up for a year or so afterwards anyway.

Three Precepts for Estimating and Pricing Projects

Let's think about the things that matter to any business. What matters most and what matters beyond that?

I think that it comes down to this:

1. NET PROFIT: Any business needs to generate a return on investment – a profit. I continue to write about profit and while I get a lot of interest in techniques for estimating, I don't have very many comments or emails about achieving a profit, that is, as a concept for estimating. It's either crystal clear already, or it's not being focused upon enough by the readers. Nothing else matters nearly as much! It doesn't matter if we produce quality tilework or safe working conditions without a profit. We will not be in business for very long if we aren't able to produce a net profit return for all the effort.
2. CONTAINING RISK: This concept is also big. It's related to profit in the sense that if you run over the budget because of poor estimates, installation failures, or poor craftsmanship, then profit eventually suffers. But the concept of risk also can apply to safety concerns, the company brand and image – the potential for tarnishing of the company's reputation, damaging relationships with clients, vendors, bankers, and bonding agencies, as well. Creating a risk aversion is necessary to sustained operational success.
3. YOUR VISION FOR THE COMPANY: Maybe there is something bigger, but let's face it, if you aren't able to create a business that reflects your own values and principles, then why bother; you might as well work for someone else. Hey, it's your business. Run it to suit your ideas about customer relationships, product/service selections, and qualities that matter to you. Just remember that what you decide really has to sell. If not, you can't sustain the operation.

I don't know; it seems like many floor covering and tile contracting entrepreneurs are unable to maintain this focus. There are too many distracting issues, and no shortage of concepts that do not match your own value system. If you can't find a way to adequately address these three precepts fully, then there isn't a business plan anywhere that can keep you on track for success.

So when you estimate work, price it, and publish your proposals, are you thinking of what will occur, or is the only thought about generating more opportunity and more revenue, and more momentum. Those are certainly useful, but without the three key precepts above, they will not be enough. Revenue without sustaining profits is simple cash flow – very important, but insufficient to sustaining an organization. One mistake in risk management and the lack of profit to draw from becomes abundantly clear. At that point you are no longer making the decisions and your vision is moot. You just need to get back to profitability before you lose more, and before the cash flow slows down.

This is why estimating and pricing the work is so fundamental to the business.

Writing with my MacBook Air

I am writing this using my MacBook Air. Over the last couple of weeks I have been getting used to it and becoming familiar with the differences between Windows Vista, Windows XP, and Mac OS X. Really that’s only partially true. What I’ve spent the most time on is the differences in the application programs Mac vs Windows versions. I’ve been trying to get a grip on the different Apple programs vs. Microsoft programs, for such things as writing and spreadsheet work particularly. I am impressed that there are such good choices between the two companies. I could be happy writing in Word: Mac 2008 or Pages’08; either suits my purposes.

The MacBook Air has a great screen. It’s bright and crystal clear. The colors are superb. The keyboard is great too. I have one problem and that has to do with the track pad. I have a right thumb that apparently has been lazy for the last several decades and wants to rest in the new oversized area claimed by the track pad. I’m trying to retrain myself. It’s not easy. Is that a design flaw?

For the moment at least I am going to be writing in Word 2008. Having looked at Pages’08 and a couple of other notebook programs, I’ve settled on Word 2008 for simplicities sake primarily. I plan on porting the words written here on the MacBook to my Dell desktop. My intention is to maintain my blog files on the Dell. Also, I intend to do the graphical formatting there as well. While the Mac has been noted for graphical work and is the choice for graphic layout and artistry, my needs are simple and I have a system that I like using Word 2007 on my Windows Vista PC. Doing layout on the MacBook Air laptop is not as easy for me. There I am working without a mouse, and with the smaller screen etc. of the laptop. I purchased the MacBook Air (MBA) as a writing tool, because of its thin form factor and elegant design, not to do page layouts and photo editing.

I am sticking with writing, emailing, and surfing the web on the MBA. That’s what I planned, and it works very well at those assignments.

The tools that I write with are probably not important to anyone reading my thoughts here at tiletrade. I won’t be writing about this much more. I just think that the MacBook Air is a new sort of tool and worth a few lines for many who might be considering it. It uses previously available technologies available to all of the computer makers and taken them and created a special tool. Certainly they have found ways to innovate as well, but for the most part this laptop is about realizing that less can be more.

The idea when designing laptop computers has been to include all of the legacy ports, a way to print, and a way to put new files into the computer. If it didn’t do all those things well it was a flawed system. But another computer handles all of those functions in my scheme. That was Apples basic idea. I simply move files from the MBA to the desktop computer sometime after creation. That matters because it keeps the MBA free from the clutter and weight of access ports, drive bays, and the added circuitry to run it all. Even the hard drive is relatively small at 80 gigs. Many people have been critical of this lack of ports and the limits of the hard drive and that sort of thing. They miss the point. I think that the MBA was designed for working like I have described. It’s a tool that adds mobility to the overall system, but doesn’t abandon the idea that some work is better done at a desk.

There are a lot of ways to use this sort of tool beyond writing, as I use it. Doing spreadsheets as I do in my pricing work is one reasonable application. I myself haven’t gotten into that so far simply because I don’t usually leave my desk when pricing projects. I’d rather use my 22” wide screen desktop screen to do spreadsheets if the choice is between the two systems. Also, my eyes aren’t as good as they were years ago. When I am writing I increase the Zoom level to 200%. That isn’t as easy to do with spreadsheets, where you want to see the full view of the sheet you are working upon. Bigger is better with spreadsheets views.

So in summary, in a sense I use the MacBook Air similarly to the way that I use my scanner. It’s there to add functionality and to amplify my master system. I can write and surf to my hearts content using it anywhere. Later, I can port, sort, post, print, scan, and store what I want on my more robust desktop system; the one with all the ports and wires, and the large hard drive.

You would need to handle the MacBook Air to understand the ‘why’ of this fully. There’s quite a difference. More than the specs for the system compared to others would imply.

Time Management Skills

Here is a good article: "11 Solid Ways to Improve Your Time Management Skills" - Written by Tim Bridge of PersonaDev.com.

http://www.dumblittleman.com/2008/02/11-solid-ways-to-improve-your-time.html

Airport Photo – Just One for Now

Yesterday I promised a few pictures of the new airport project. I regret that now. The photos that I have are not really very helpful. I have a lot of photos showing concrete and not anything that are going to be appropriate for this weblog. This photo was a good one simply because the light was coming in the window at just the right moment. This glass tile and porcelain tile is located in the public restrooms.