| 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."
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