Plexus Consulting Group    Success Stories

Oregon-Columbia Chapter of Associated General Contractors (AGC)


Oregon-Columbia Chapter of Associated General Contractors (AGC)
9450 SW Commerce Circle
Suite 200
Wilsonville, OR 97070
503.682.3363
[www.agc-oregon.org]
Contact: Craig Honeyman, Executive Director

CEO: Craig Honeyman
Budget: $2.6 Million
Staff Size: 30







Plexus Consulting Group, LLC
1620 Eye Street, NW
Suite 210
Washington, DC 20006
Phone:  202-785-8940
Fax:      202-785-8949
Email:   info@plexusconsulting.com


Vital Stats

The Associated General Contractors, Oregon-Columbia Chapter, has served as the voice and choice of the commercial construction industry in Oregon and Southwest Washington since 1920. With more than 1,100 member companies, AGC is the only trade association representing the full range of commercial construction from industrial to building, from heavy highway to multi-family residential.

The Challenge | The Solution | The Processs | Measurements & Results | Lessons Learned

The Challenge

How to maintain and refine AGC's "open management" culture after a leadership turnover?

In 1998, AGC experienced profound program and personnel changes that posed a credible threat to the organization. While AGC survived and ultimately benefited from the experience, it served to highlight the need for team empowerment and inclusiveness. While AGC's leadership had always emphasized the importance of a management style that fosters trust and empowers employees to achieve optimal performance by giving them the "freedom to fail," it was critical to ensure continuity of this management mindset and to communicate the message consistently throughout the transition.

The Solution

To continue the association's tradition of inclusiveness, respect, candor and full participation in leadership-management-staff interactions.

With a human resource staff of two and 30 employees, AGC has developed a close-knit organization and internal communication patterns that foster an open environment. When Craig Honeyman joined the organization as Executive Director in 1998, he continued the tradition and developed several new programs to strengthen AGC's inclusive management culture.

The Process

"The door is always open."

AGC is a small organization with an even smaller human resource department (two employees) focused on: administration, maintenance and update of the association's human resource manual and handbook, helping to hire and manage employee turnover, and providing human resource assistance and referrals to member companies.

Over the years, AGC's human resource team has helped to implement a variety of simple, basic and to some extent informal programs and policies that have strengthened the association's open management environment and collaborative decision-making model. While these programs are not documented extensively, they work:

  • New employee's interview and orientation
  • Open access to important information affecting the association
  • Team-building and staff networking
  • Supplemental insurance
    Sensitivity to addressing "hot issues"
  • Development of cross-functional teams
  • Promotion from within
    Board/staff collaboration
  • New workplace flexibility
  • New Employee Interview and Orientation


Beginning with the first interview, AGC informs prospective employees about the association's management style so there are no surprises. Each new employee meets individually with the Executive Director, who reinforces the open door message from day one. The new employee orientation furthers that message and assists in the employee acclamation process.

Management Meetings
AGC's internal communications evolve around e-mail, the intercom and face-to-face meetings. Six core managers head six departments, and each manager is assigned one-two direct reports and clerical staff as needed. AGC holds a core managers' meeting each Monday at 8:00 a.m., with rare exceptions due to scheduling conflicts, to discuss big picture, hot topic, general policy and sensitive issues. Once a month, managers meet in turn with their core teams to share association news, to update employees on department activities and to set the agenda for upcoming executive committee and board meetings.

Team Building
Also, AGC hosts a staff networking lunch every month to develop camaraderie and to foster a team atmosphere. Each lunch is followed by a non-threatening team-building exercise that incorporates a training element and gives employees an opportunity to share information about themselves, their accomplishments and disappointments.

Benefits
To enhance the existing benefits package and to make it more attractive to current and prospective employees, AGC signed on with a new 401K provider to broaden the selection of available investment opportunities. AGC also makes AFLAC supplemental insurance coverage available to employees and from time to time, sponsors safety seminars on topics such as:

  • Women's safety
  • Fire Safety
  • Emergencies
  • Hot Issues

Whenever a "hot issue" emerges, AGC staff determine the most appropriate form of communication to address the issue, whether by e-mail or face-to-face discussion. AGC places a premium on low-tech discussions for resolving sensitive or otherwise complex association management issues.

Training and Cross-Functional Teams
AGC teams senior employees responsible for by-law driven business councils and standing committees with junior staff who are interested in the specific council or committee in order to:

  • Motivate employees
  • Provide cross-training
  • Keep work interesting
  • Facilitate succession training
  • Develop and enhance skill set

Also, AGC has developed a tradition of "putting its best talent on the job," regardless of job descriptions. AGC assembles cross-functional teams on a regular basis to address a variety of association challenges. For example, an interdepartmental staff committee was responsible for the planning and execution of the association's $400,000 remodeling project.

Promoting From Within
AGC promotes from within as much as possible. Managers are sensitive to the need to hire and retain good people, in particular because the association cannot provide the more lucrative incentives offered by industry.

Board/Staff Collaboration
When AGC hired Honeyman in 1998 as its new Executive Director, two staff people, the human resource manager and most experienced core manager, joined the Board's hiring committee to provide input and advice on the selection. The AGC board continues to value the input of seasoned staff that possesses a thorough understanding of the association's needs and culture.

'New Workplace' Options
AGC's rule of thumb regarding new workplace options, such as telecommuting, is to be as accommodating as possible. Senior AGC staff members are allowed to telecommute as needed, and while AGC does not actively promote this as a primary work-style, it is allowed on an ad hoc basis as and when it makes sense for the employee and the association. Similarly, AGC policy is to be as tolerant as possible in addressing child-care concerns. AGC employees have the option of working 6-hour "full-time" days in post maternity situations. AGC is also open to the concept of job-sharing when opportunities arise.

Measurements & Results

While some organizations "talk the talk" but don't "walk the walk," AGC is viewed by managers and employees alike as a rewarding and comfortable place to work. The open workplace model results in:

  • Respect and good collaboration among colleagues
  • Close working relationships supported by the association's physical infrastructure
  • Optimal attention to achieving the association's mission


Overall, AGC's commitment to fostering an open management style has resulted in high employee retention and an environment devoid of the tension that often accompanies a more political management model. While there has been some turnover, this has been driven by "good reasons." For example, AGC applauds the fact that member companies hired several former employees. In a few isolated instances, AGC hired employees that were used to working within a more hierarchical, control-oriented framework and could not readily acclimate to the association's flat organizational and management style.

Lessons Learned

"Empower people, train them and get out of their way."

According to Honeyman, AGC's preferred management mode is "to have employees work hard out of loyalty rather than fear. It works better." By maintaining and fostering open lines of two-way communication, AGC has learned the value of empowering employees to communicate and to address problems head-on to avoid spinning out of control. Employees know that they can candidly ask for the resources they need to do their jobs without fear of reprisal from managers committed to unrealistic expectations. Because they are free to make their concerns known to core managers and to the CEO, AGC employees are empowered to make the most of their resources.

"Mistakes are OK. We don't shoot the messengers."