Process Improvement Archives - PowerTips Unscripted

Ep.67: Kicking Off Slippage Awareness Month with Tim Faller

June 12, 2019 Remodelers Advantage 00:26:49

Here at Remodelers Advantage we set aside the month of June to focus on an issue that plagues most service-based businesses, but can be a critical metric in looking at the success of a remodeling firm. This is our third annyal “Slippage Awareness Month” and this year you’ll see content submissions from our consulting, sales, and production experts here at R/A. Enjoy!

Every remodeling business owner wants to add more money to the bottom line. Reducing slippage is the lowest-hanging fruit to pick in your quest.

In this episode, Tim Faller talks to Victoria and Mark about reducing slippage in your remodeling company. Slippage occurs when your estimate is lower than the real costs of the job. Reducing it takes a change in mindset throughout the organization.

For 17 years, Tim has worked with hundreds of remodeling companies to improve profits by creating smooth, efficient production systems. As a Senior Consultant and Master of Production for Remodelers Advantage, Tim’s field and business ownership experience is vital to his additional role as facilitator for Owner and Production Manager Roundtables Groups. He’s also a published author and popular industry speaker, Tim is co-host of The Tim Faller Show, a weekly podcast focused on “Improving The Bottom Line Through Production Training.”

The biggest challenge in reducing slippage is getting your whole team involved in the effort. Tim says slippage is too often brushed off with “It is what it is.” That’s where the change in mindset comes in — the attitude should be “It is what we make it.” Slippage is controllable, but it takes a company-wide awareness and work to corral it through realistic and accurate estimating, job scheduling, and building in time to de-bug a job before it starts. He talks about the ways to reduce slippage in your processes, including:

Finding the slippage
The perfect planning process
Building in time, and how much
Developing a critical eye, not a critical attitude
Why realistic estimating geared to your team is key
Why you need long-term, short-range, and daily planning
Killing schedule creep for better net profit
Building extra time into the schedule
Figuring out days-per-job overhead
Controlling the client
Doing change orders properly
And more …

Cutting slippage is possible — and will make a big difference in the health of your business.

Ep.64: What Healthcare Can Teach Remodeling about LEAN with Liz Moisan

May 15, 2019 Remodelers Advantage 00:26:58

Toyota pioneered the LEAN manufacturing system, and we know — houses aren’t cars. But neither are people, and the LEAN concept of continuous improvement is used by hospitals too.

So even if remodeling isn’t brain surgery, we can learn a lot from how LEAN has been applied in healthcare. You can get some of the best help with your business by looking at how other industries use continuous improvement.

In this episode, Liz Moisan talks to Victoria and Mark about using LEAN principles in healthcare and how it can be applied to remodeling. She says Kaizen or LEAN principles give you a common language for things we already know, creating a foundation to move forward.

Liz is a product innovation specialist at Virginia Mason Medical Center in Seattle, and has been a practitioner of the Virginia Mason Production System since 2008. She teaches, facilitates, and works to continually evolve how Kaizen is applied in a health-care setting. She’s married to R/A Roundtables member Matt Moisan.

The hospital employs daily Kaizen, so even the smallest roadblock can be eliminated, as well as higher-level applications. She shares some real-world examples, including cutting down on waiting times for patients (yay!), working with vendors to get what the hospital needs when it needs it, The Five Ss, and how to look at a particular process to improve it, including:

Where to start
Staying true to the tools
Identifying and eliminating waste in processes
The evolution of continuous improvement
Breaking the status quo and getting buy-in
Understanding supply and demand for materials
Onboarding new employees in LEAN principles
Training at the management level
Finding the “rock in your shoe”
When and why to get help
And more …

Here are those two books Liz recommends for getting started understanding the Kaizen principles:

If You Would Like to Learn More About LEAN For Remodeling…

Consider attending our online course, “LEAN For Remodelers” where our “LEAN Guru” Doug Howard helps you improve your profits & grow your business by mastering continuous improvement through LEAN. This 6-session class, meets weekly & is a combination of online instruction and hands-on exercises, in a virtual classroom setting. Classes start on July 10th, so click here for more information & registration.

Ep.61: How I Revamped My Design Process with Chris Fox

April 24, 2019 Remodelers Advantage 00:27:03

Systems and processes rarely scale when your business grows. So you have to go back and create new ones that will — at least for now. Your design process is no different.

When hiring a new or additional designer, it may be time to revamp your process in preparation for that new team member.

In this episode, Chris Fox talks to Victoria and Mark about what he found when he dove deep into his company’s design process. He learned so much from his examination that he created a new self-guided training plan for designers that doesn’t require constant oversight and management by supervisors.

Chris is the founder of Fox Home Innovations in Manhattan, KS. Chris started this company during his junior year of college and ran multiple projects and crews while completing his degree in entrepreneurship from Kansas State University. In school, he met Matt Carlson, who later bought into the company. Today, they both run the organization with Chris focusing on sales and design, while Matt is the general manager.

The old design process was often on the fly and not totally repeatable at all times. They had nothing to train to or repeat when it came time to hire another designer. There was no time to train, either, because everyone was so busy. Chris details what they did and how they did it, including:

Evaluating the process you’ve got
Creating a trainable, repeatable process
Building in the details
How to create a training document
The time it takes, and why to take the time
Involving your whole team
The significant changes it made
What the onboarding and training looks like
Creating teachable moments
How to boost competence and confidence
And more …

The process is working well, so Chris plans to use it as a model for onboarding and training new hires for other roles throughout the organization as it grows.

Ep.58: How LEAN Principles Have Improved My Business with Paul Kowalski

April 3, 2019 Remodelers Advantage 00:29:32

We’ve talked about LEAN before on the show with our own experts, but you may wonder what it looks like in the real world. Today we’ll hear about using LEAN in the remodeling business from an award-winning design-build company that focuses on residential remodeling.

In this episode, Paul Kowalski shares his experiences in applying LEAN in his business with Victoria and Mark. His company recently implemented the process, and he says the results have already been eye-opening.

Paul Kowalski is the owner of PK Builders in Charlotte, NC, and a member of our Remodelers Advantage Roundtables group. PK Builders has a team of eight, including Paul, with four Project Managers, an Estimator, and a Draftsman.

PK Builders was experiencing growing pains in 2018 — bottlenecks in the design-build process, some cash-flow issues, higher overhead, so they called in Doug Howard for help. Paul says it was intimidating at first, but soon becomes second nature to look for ways to speed up processes. It started with 16 feet of paper festooned with sticky notes detailing steps in the design process. They began by diving into the design process, and he discusses how they did it, including:

Explaining it to your staff
Sharing in chunks
Finding the hiccups
Why the people closest to the work have the best feedback
Getting over the intimidation factor
Timelines and swim lanes
Not including time for revisions
Building in collaboration up front
Unintended consequences
And more …

Paul and his team are deep in the LEAN process, and excited to see what their future brings, including how it affects their positive cash flow. They’ll be looking at the Production process as their experience with LEAN continues. We’ll check in with Paul on how it’s going in the future.

Here’s that 16-ft. piece of paper!

Getting LEAN

See the video Paul talks about outlining LEAN principles from the Food Bank For New York City on YouTube.

If you want to learn more about LEAN, and download the free process mapping tool, go to leanremodeling.com.

Ep.51: Deploying the Elam Ending in Your Business

February 13, 2019 Remodelers Advantage 0:17:01

We’re getting esoteric today — applying a sports concept to business. Not too long ago, Mark read an article and shared it with Victoria about fixing something that’s broken in basketball — the intentional fouls at the end of the game to stop the clock.

Nick Elam is a Mensa member and basketball superfan, who was frustrated by the stop-and-start slog the end of close games as the team behind tried to get ahead by stopping the clock in the final minutes.

In his Elam Ending, the game clock is turned off at the first whistle with four minutes or fewer remaining. The teams then play to a target score equal to the leading team’s score plus seven points. The first team to meet or exceed the target score wins. It effectively stops the need to intentionally foul.

So what does all this have to do with the remodeling business? Fair question.

You may need to change your rules, you may need to change your strategy. When the rules that make your business work start hindering it, what do you do?

Look at the frustration points and think creatively to figure out whether your rules need to change. Maybe your change order process works perfectly until the final weeks of the job, and then it all goes sideways. Think about changing the rules of the game for those changing circumstances.

Let us know what rules or processes you’ve changed or amended through creative thinking. Let us know in the comments. No harm, no foul. See more about the Elam Ending in Sports Illustrated, and here’s a link to The Basketball Tournament’s wiki and how it has implemented it.

Will You Be at KBIS or NAHB’s International Building Show?

Victoria, Mark, and Steve Wheeler, RA sales director, are on the speaker’s panel at KBIS.

Victoria’s sessions:

The Most Important Numbers You Must Know!

Room N226
Session Number 2.2
Tuesday, Feb. 19, 2019
10:30 – 11:30 am

How Do You Compare? Performance Metrics of the High Performers

Room N226
Session Number 5.5
Wednesday, Feb. 20, 2019
9 – 10 pm

Steve Wheeler’s session:

Delegation — How to Get Your Employees to Think and Act Like an Owner!

Room N230
Session Number 8.7
Wednesday, Feb. 20, 2019
3 – 4 pm

Mark’s session:

Website Punchlist! Blue Tape Walkthroughs of Attendee Websites

Room: N227
Session Number 8.4
Wednesday, Feb.y 20, 2019
3 – 4 pm

If you’re going to attend, and want Mark to dissect your site, just send him an email!

We’re also having an informal meet-up on Wednesday, Feb. 20, at 5 pm. Meet us in the bar at the Hard Rock Hotel — we’d love to see you. Drop us a line about that or any other times you might like to chat: Victoria@RemodelersAdvantage.com or Mark@RemodelersAdvantage.com.

Ep.42: How and When To Hire a General Manager with Aaron Enfinger

November 28, 2018 Remodelers Advantage 00:31:40

As companies experience growth, there are tipping points where changes need to be made. One of those points is when you realize you need additional management for the organization. Many remodelers are considering adding a General Manager, but are unsure how it will work in practice.

The Cleary Company of Columbus, OH, reached this tipping point in the Development Department in the Fall of 2016. The company was changing rapidly, adding staff, and stressing the existing systems in place. Things were getting bogged down. Owner George Cleary promoted Aaron Enfinger from Production Manager to GM to step in the gap. He’s currently wearing both hats while searching for his successor as PM.

In this episode, Aaron talks to Victoria and Mark about his experiences in taking over his new role and what it’s meant for the company. While Aaron oversees the operations, George has more time for business development and long-term planning.

The decision to add an overlay of management was caused by three factors, says Aaron. The staff was stressed by the workload, they were having trouble getting projects through the different phases of the job, and steps were being skipped in previously reliable systems because of the rush to get jobs to production. He talks about what his job entails, and some of the challenges, including:

Keeping the owner in the mix
How to not overload a GM
Managing people outside of your own job experience, like designers or marketers
Creating new positions to help streamline processes
Why to hire from within (if you can)
Working with the owner (or CEO)
The benefits of a walking meeting
Small picture vs. big picture thinking
And more…

As promised in the podcast, here’s the link to Aaron’s appearance on The Tim Faller Show, where he outlined his approach to creating a master schedule to control the flow of jobs through the pipeline.

Extreme Makeover: Business Edition

As Mark and Victoria mentioned in this episode, the Extreme Makeover: Business Edition, Jan. 29-30, 2019, is filling up fast — and Super Early Bird Pricing ends this Friday, November 30th.
Click Here for More Information & Registration

Ep.41: Using Virtual Reality to Grow Sales and Profits with Chris Katkish

November 21, 2018 Remodelers Advantage 0:28:30

Virtual reality creates immersive environments in real time. For remodelers, that means your clients could preview and even “walk-through” their projects to see if they like what they’re seeing.

Guest Chris Katkish says VR can help remodelers streamline their sales and design process, trim the length of the sales cycle, and boost production efficiency by reducing change orders. All of which leads to more sales and more profit.

In this episode, Chris talks to Victoria and Mark about using VR technology to help clients confidently make decisions more quickly in the sales and design process.

Chris is the general manager of InSite Builders and Remodeling in Bethesda, MD. The three owners of InSite have partnered in a company called Limitless Virtual Reality, which enables CAD designs to be viewed in VR.

InSite uses VR as a visualization tool to get concepts across to homeowners. Even if you’re using 3D modeling, they’re still viewed in 2D, and seeing it on screen isn’t the same. VR immersion allows clients to experience the space and see what they’re buying before its built. Chris talks about the ways remodelers can use VR in their businesses, including:

When to bring VR into the sales process
Building in the charge for the VR design
How your 3D model becomes a VR environment
The equipment you’d need — and how much it may cost
Real-world examples of how VR speeds up client decisions
How to use it with Project Managers and Trade Partners
And more…

Victoria and Mark also spitball ways to use VR in your marketing. The pace of technology is fast — and VR is the newest tool on the scene. If you’ve got ideas or opinions on how VR may affect the remodeling business or your business, let us know in the comments below.

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Ep.29: How to Build an Award-Winning Company with Jeremy Martin

August 15, 2018 Remodelers Advantage 00:34:44

Success in the remodeling industry is all by the book for Jeremy Martin. That goes for the 50 books he reads per year, and the systems and business processes he institutes and uses at his company. And most importantly, those two factors culminate in “The Book” — the three-ring binder filled with details and documentation that has powered his company’s growth.

Jeremy talked with Victoria and Mark for our live podcast in June — and if you missed it, take this opportunity to catch up. You’ll hear insights and tactics you can put to work for your own company immediately.

A principal with RisherMartin in Austin, TX, Jeremy founded the company with partner Chris Risher. Jeremy graduated from the University of Texas with an engineering degree and went to work at Fortune 500 giants like IBM and Intel. Jeremy combined his corporate experience with his love of building and launched his home building career in 2001. He’s an RA Roundtables member, was recognized as a “Rising Star” by NAHB, and was in the “40 under 40” lists for Professional Builder and Professional Remodeler. With Chris, he was named the 2016 Fred Case Remodeling Entrepreneur of the Year, and was a finalist for the RA Impact Award.

Jeremy’s time with huge companies gives him a different perspective on the remodeling business, and he’s applied the lessons learned at businesses with 60,000 employees to his now 10-person company. “You have to think big to get big,” he says. “But don’t expect that growth to be linear.”

Learn how RisherMartin finds their ideal clients, gets an average of $1 million per job, and how they hire, along with:

Setting intentional time on the calendar for big picture thinking
Troubleshooting the most treacherous part of the remodeling business
The secret to a healthy business partnership
How to strive for continuous improvement
Selling the fixed-price model
And more…

You’ll also get to hear Mark admit his man-crush, and find out what Victoria’s theme song would be. You can learn more about RisherMartin on the company’s website, which devotes a page to The Book — that’s how important it is to their success.

In today’s episode, Victoria mentions a slide that was available during the Live Episode back in June, for those of you who are interested in learning more about Roundtables… Below is a copy of that slide, click to see a larger version.

Ep.28: The Dos and Don’ts of Implementing Technology with Donny Wyatt

August 8, 2018 Remodelers Advantage 00:33:18

Technology is critical to boosting efficiency and ensuring scalability for remodelers and builders, but tech isn’t the answer to everything. It’s hard to know where to start, and what problems tech can solve for you. Too often, you purchase an expensive program, people don’t use it, and it gets shelved.

In this episode, Victoria and Mark talk the dos and don’ts of tech with Donny Wyatt, the founder and CEO of CoConstruct, a web-based project management system for custom builders and remodelers.

Back in 2005, Donny was a homeowner who had a typical, but frustrating, building experience, and used that inspiration to create a web-based system to help custom builders and remodelers serve their clients better. Today, CoConstruct has been named the No. 1 software of its type by SoftwareAdvice and Finances online. Donny leads a team of nearly 100 employees serving 5,000 customers across North America and beyond.

The biggest key to successfully implementing a software solution is to start small, advises Donny, and pick one or two key problems to solve. Then use your sales skills to get buy-in from your team, concentrating on one or two key players — a driver and a curmudgeon. Donny tells you how to do that, as well as:

Figuring out what problems you need to solve
How to get past the human speedbumps
The positive side effects of the right software
Why a tech problem may really be a leadership problem
Using tech to make your clients’ experiences outstanding
When to keep going through a puddle
And a whole lot more…

This is lively episode packed with information you can use today. You can learn more about CoConstruct with just a click.

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Ep.27: How I Quadrupled My Revenue with Todd Jackson

August 1, 2018 Remodelers Advantage 00:40:56

Growing your company requires thinking big, developing innovative strategies, and taking risks. If you do it right, the results can be huge. Todd Jackson did it right, and quadrupled his revenue.

In this episode, Victoria and Mark talk to Todd about how he achieved that success, and the details and work behind the big numbers.

Todd is the CEO and president of Jackson Design & Remodeling in San Diego, CA, and a long-time Roundtables member. During the recession of 2007-2009, he developed and adopted strategies that got the company these amazing results in the next decade.

Learn how Todd not only weathered the downturn, but put systems in place and doubled-down on his marketing to power his company when the economy bounced back. He talks about the importance of creating a culture that celebrates success, as well as:

The key advice he got from another Roundtables member
Why his salespeople love their lower commissions
How his showroom drives profits
His strategy to cut the design process from months to weeks
Financing vs. cash
The awesome power of wearing slacks
And more…

There’s no one magic bullet, but a cohesive mix of strategies, calculated risks, and goals that will speed a remodeling company toward exponential growth. Click through to see more about Jackson Design & Remodel.

You don’t want to miss this episode!

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