Research Methodology & Findings

2007-2010 Strategic Plan

Phil Fitts, Chairman

Mike Carpenter, President
Research Methodology & Findings

In developing the three year strategic plan, three primary steps were undertaken. The first was a series of focus groups seeking the opinions of our core constituencies, general contractors, subcontractors and suppliers and associates. Participants were asked to describe ABC; what value it delivered; what the greatest obstacles to success are; and what ABC could do to make their business lives easier. Below are common themes from the focus groups and recommendations from our consultant.

Common Themes

• ABC is a central voice, a provider of training, and a political watchdog for the industry.
• ABC could/should take an active role in influencing schools and tackling the negative industry reputation.
• Finding talent is a problem for all members.
• A greater impact on the school system could be felt throughout the industry.
• The industry “negative halo” adversely affects all members
• ABC training is good, but attendance is down.

Recommendations for ABC based on focus group feedback

1. Concentrate on becoming the premier one-stop shop for a limited agenda with measurable results. Peter Drucker said that organizational excellence can be achieved by answering two questions:
   

First – what business are we really in? Not as easy as it seems. Kodak
doesn’t sell film, they sell memories. Disney is not in the theme park
business, they’re in the fantasy business. FedEx is not in the overnight
package business, they’re in the information business. What business is
ABC really in? If you know the answer, you can create alignment top to
bottom.

Second – How’s business? Drucker maintained that most companies
spend far too much time measuring themselves against a host of
benchmarks, mostly designed to measure performance against competitors
instead of against customer expectations. The key to organizational clarity
is choosing no more than 3 measurements to determine how effectively
your company is performing. The numbers can be shared with everyone.

1. Consider making that limited agenda focus on improving member performance. While risky, if current and prospective members can connect the dots between membership and improved profitability, there’s incentive to join.
   
2. Take on the talent deficit. Consider finding a predictive tool that measures skills, reliability, and the ability to follow through. Make it available to contractors andsubs either as a value-add or for a fee.
   
3. Make some heroes. People are drawn by the success stories of others. How about developing some “hero” stories about a couple of contractors (members, of course), subs, and suppliers who have been helped by ABC and can show measurable results? The stories can be used consistently in print, media, and in front of groups. The same concept can work in changing the perceptions of school guidance counselors and students. Why not profile a number of young people who have entered the construction industry and made excellent money – more than their peers. The only way to change perception is with compellingly presented facts.
   
4. Provide tiered support to member groups. Right now subs and suppliers have the most to gain from the ABC meetings. Consider offering social opportunities for networking, but content opportunities for contractors that reach beyond the social context. Perhaps your sponsors can pay for external speakers that would draw attendance.
   
5. Choose your best training deliverable and offer it on-site as a Just-In-Time solution. Develop a story that measures the impact of training on the bottom line to encourage contractor participation. Or develop a self-contained package that can be administered on-site by the contractor.
   
6. If legislative affairs is part of the answer to the “What business are we really in?” question – go full bore. Present a legislative annual agenda, why it’s important, the extent of its bottom-line impact, and what each member needs to do to get involved. Let members present the updates throughout the year so they have skin in the results.
   

8.Educate the public on the magnitude and reach of the industry. Your group, coupled with the Memphis Area Homebuilders must impact an enormous chunk of the Memphis economy. The message can include:

• Size of economic opportunity
• Extent of community outreach - an opportunity to counteract the “white-guy” perception that’s been created by the press
• Lives that have been improved/changed
• Benefits to taxpayers
  

The second step was to implement the first recommendation, which was to determine “What business are we really in?” and “How’s business?” A focus group with members of the Executive Committee, which is comprised of the officers of the organization, met with a facilitator in November 2006. The groups determined the following:

What business is ABC really in?

Membership performance

How’s business?

Measurements:

1. Contractor revenue (% increase in profitability)
2. Number of people choosing construction as a career
3. Local market share (% of local contractors as ABC members)

Finally, a strategic planning conference was held at the FogelmanExecutiveCenter, in January of 2007, in which any member of ABC was invited to participate. Doug Curtis with ABC National facilitated the meeting of 35 individuals. Through nearly eight hours, the group assessed the chapter’s strengths, weaknesses, threats and opportunities; discussed industry and chapter trends; and pondered the future of the chapter 5 years and 10 years from now. The group then identified through voting the top five areas of focus for the chapter and discussed strategies and tactics for addressing those issues.

The primary areas of focus are:

• Increase participation by contractors
• Retain 95% of membership
• Grow and train the available construction workforce
• Improve the image of the industry
• Be a leader in political advocacy

Analysis

What is particularly comforting in the review of the results is that each step in the process, which included different stakeholders, yielded the same conclusions. As a result, we can have confidence that the primary areas of focus for the chapter are those issues and areas identified. The matrix on page 9 shows the relationship between the common themes and recommendations from the initial focus groups, the business we are really in and the performance measures and the primary areas of focus identified in the planning conference.

Vision & Mission

At the advice of our consultant and facilitator, the vision and mission statements have been revised. The previous statements were deemed to be too long and not memorable or inspiring. The previous vision and mission and the newly proposed vision and mission are below:

Vision

Previous Vision

The West Tennessee Chapter will be the authority for construction, the center for political action for the industry, the leader in craft, management and safety education, the source for training and developing emerging construction businesses, the advocatefor diversity and ethics and the voice of the Merit Shop throughout the Mid South.

New Vision

The authority on all things construction.

Mission

Previous Mission

The West Tennessee Chapter promotes and defends the free enterprise system through strong, diverse growth in membership, providing its members and their employees with relevant business development and educational opportunities, effective political advocacy and furthering the positive image of the construction industry.

New Mission

Improve member performance.

Strategic Areas of Focus

Increase Contractor Involvement

There was consensus at every level of the planning process that the success of the association depends on the role of contractors, especially general contractors, in the organization. Contractor participation (or lack of) was described as an “opportunity” a “threat,” a “wish” and “what we could do better.”

Several themes underscored the point of contractor involvement. For suppliers and associates that comprise approximately half of the organization, contractor involvement means more opportunities for new business. For contractors the themes were about remaining true to the mission of ABC to serve contractors, interaction with peers and ensuring that the value-added products and services included the needs of contractors. The following actions are recommended to increased contractor involvement.

□Develop programming (speakers, continuing education, etc.) exclusively for contractors

□Improve relationship and involvement with AIA

□Establish peer groups for contractors

□Improve the quality of ABC’s bid list and the information provided

□Establish partnership with Sparks Bureau of Economics to provide data to contractors

Retain 95% of Membership

Historically, the chapter’s retention has exceeded both the average and median nationally. In addition, the chapter has been recognized on two occasions in the last five years for retaining 90% of the members. However, the sentiment around this priority seemed to be about making ABC something people want to be a part of rather than feeling pressured or obligated. This area goes directly to the heart of the business we are really in – member performance. In other words, improving member performance and adding value will result in greater membership retention. These are the recommended actions:

□“Make some heroes” i.e. tell the success stories about how ABC has helped individual members

□Visit every member, every year

□Recruit Board members and active members to serve as ambassadors

□Consider rejecting some candidates for membership. Membership should not be automatic just because the check will clear.

□Don’t worry about size of organization. Worry about quality of members.

□Become the place for industry information and resources

□Negotiate more local discounts on construction and business related products

□Develop member specific benefits. One size no longer fits all.

□Deliver services and benefits at members offices and jobsites, instead of making them come to us

□Make safety training easier for contractors and suppliers. Focus on lowering MODs and lost time accidents

Grow and train the available construction workforce

Anxiety about the availability and quality of the workforce was evident throughout the data collection process. Whether in focus groups or at the planning conference or in subsequent surveys the quality and availability of the workforce is what keeps our contractor members awake at night. Underlying this fear are the shrinking numbers of students coming out of high school with an interest in construction and an education establishment that tries to prepare every child for college. To address these issues, the following steps are recommended:

□Launch a new craft training program beginning with carpentry

□Create training for superintendents and foremen

□Utilize existing space at ABC office as training location

□Hire experienced, full-time Director of Education

□Customize curriculum of all courses for the needs of contractors in this marker

□Advertise for, screen and place workers with member companies

□Develop online job bank for contractors and potential employees

□Develop strong relationships with local college instructors

□Develop strong relationships with local vocational instructors

□Have strong presence at career fairs

□Seeks grant opportunities to train the underemployed

□Continue management education offerings, including leadership training

□Discontinue ABC electrical apprenticeship program

□Bring Construction Career Days to West Tennessee

Improve the image of the industry

Directly related to workforce issues is the generally negative view of the construction industry. ABC is also impacted by confusion between residential and commercial construction. The general public does not distinguish between the two types and negative publicity about residential spills-over to the commercial construction industry. Additionally, the immigration debate has led to misinformation that suggests contractors prefer to hire cheap immigrant labor to avoid paying fair wages. ABC can strive to improve our industry image in the following ways:

□Educate public on the magnitude and reach of the industry

□Launch partnership with If I Had a Hammer

□Increase community service activities and volunteerism

□Promote the accomplishments of individual member companies

□Create a Certified Quality Contractor programs and strongly encourage contractors to participate

□Draft and implement a marketing plan for the organization

□Develop high-quality local industry publication

Be a leader in political advocacy

Political advocacy was not a top concern in any of the data collection sessions. However, ABC was regularly referred to as the “voice for the industry.’ Legislative affairs was something identified more than once as something ABC is known for and something that we do well. Also, because the passage of legislation or promulgation of government rules and regulations can directly impact the bottom line, being a leader in political advocacy continues to be a critical function of the association. Here is the recommended approach:

□Continue elected officials reception annually

□Raise $50,000 annually for ABC PAC

□Elect pro-ABC candidates to the Memphis City Council

□Draft regular report on local, state and national issues

□Develop recognition program for those officials that go beyond call of duty for ABC

□Develop annual legislative agenda and detail bottom line impact

□Increase member involvement in grass roots advocacy.

1

Action Plan

Strategic Area of Focus:Increase Contractor Involvement

GOAL / STRATEGIES / WHO / WHEN / BUDGET
Develop programming (speakers, continuing education, etc.) exclusively for contractors / Appoint task force of active contractors to advise staff on appropriate programming
Survey contractor members in person or by mail about specific needs
Based on data, develop invitation only offerings for contractors / Mike Carpenter
Mike Carpenter
Erin Murphy
Staff & Task Force / March 07
April 07
May 07 / Not for task force, but for programs
No
Yes
Improve relationship and involvement with AIA, CSI and BOMA / Schedule once per quarter social or meeting with AIA Board and leadership
Continue and improve Outstanding Architect Awards
Sponsor AIA design awards
Cross-promote AIA events and products
Do more to highlight architects & owners at Excellence in Construction Awards
Pursue joint trade show with CSI / Mike Carpenter
Staff & Task Force on Awards
Mike Carpenter & Executive Comm.
Mike Carpenter
Mike Carpenter
Erin Murphy
Mike Carpenter
Board Members / July 07
April 07 task force
March 08 for awards
August 07
April 07 & on-going
November 07
Begin April 07 / Yes
Yes
Yes
No
TBD
No
Establish peer groups for contractors / Review peer group structure and rules with ABC National
Seek input from other chapter about successful peer groups
Establish quarterly meetings for trade-specific peer groups
Track participation in ABC using national database and supply data to peer groups about their peer companies who do not participate
Schedule peer group-specific programming for quarterly meetings / Mike Carpenter
Mike Carpenter
Erin Murphy
Mike Carpenter
Erin Murphy
Erin Murphy
Cindy Robbins
Mike Carpenter
Erin Murphy
Peer Group Leader / March 07
March 07
June 07
June 07
September 07 / No
No
Yes
No
Yes
Establish partnership with Sparks Bureau of Economics to provide data to contractors / Meet with Dr. John Gnushke to determine possibilities
Consider contractor-exclusive meetings, publications or e-newsletters about local economic trends / Mike Carpenter
Mike Carpenter
John Gnushke / March 07
April 07 / No
TBD
Improve the quality of ABC’s bid list and the information provided / Establish task force of regular bid list posters to make recommendations / Mike Carpenter
Cindy Robbins / May 07 / No

Strategic Area of Focus:Retain 95% of Membership

GOAL / STRATEGIES / WHO / WHEN / BUDGET
“Make some heroes” i.e. tell the success stories about how ABC has helped individual members / Develop specific examples and seek permission from members to use stories.
Incorporate “heroes” into recruitment and retention marketing tools / Mike Carpenter
Mike Carpenter / April 07
October 07 / No
TBD
Visit every member, every year / Divide list by zip code for efficient visits.
Draft four questions survey to gather on-going data / Mike Carpenter
Erin Murphy
Mike Carpenter / March 07
March 07 / Yes
No
Recruit Board members and active members to serve as ambassadors / Assign specific members to Board members for periodic contact. Base the assignments on relationships and lack of activity / Mike Carpenter
Erin Murphy
Board of Directors / April 07 / No
Consider rejecting some candidates for membership. Membership should not be automatic just because the check will clear / Require Board of Directors to discuss and approve every application
Create guidelines for a model member / Board of Directors
Membership Committee / May 07
May 07 / Yes (May result in fewer members)
No
Don’t worry about size of organization. Worry about quality of members / Revive Most Wanted membership campaign and focus on small number of high-quality prospects
Adjust bonus structure for Erin to reflect new recruitment strategy
Create incentive for membership committee members who “reel in” most wanted
Take focus off of size of chapter and learn to be content with quality / Erin Murphy
Steve Haynes
Membership Comm
Mike Carpenter
Erin Murphy
Mike Carpenter
Steve Haynes
Membership Comm
Membership Comm
Board of Directors / April 07
March 07
April 07
On-going / Yes
Yes
Yes
Yes (May need to rely heavier on non-dues sources of revenue)
Become the place for industry information and resources / Create task force to compile list of needs & desires
Create online database for information
Market available resources as well as image as authority / Phil Fitts
Mike Carpenter
Staff
Watkins Internet
Mike Carpenter
Public Relations Comm / September 07
January 08
January 08 / No
Yes
Yes
Negotiate more local discounts on construction and business related products / Identify local vendors with “hot” products and approach about affinity programs / Mike Carpenter / On-going / No
Make safety training easier for contractors and suppliers. Focus on lowering MODs and lost time accidents / Physically take clicksafety demonstration to contractors
Encourage STEP participation
Seek grant opportunities that will pay for safety training for contractors / Mike Carpenter
Erin Murphy
Safety Committee
Safety Committee / June 07
November 07
April 07 / No
No
No

Strategic Area of Focus:Grow and train the available construction workforce