By Gregg M. Schoppman, FMI
As one of the largest industries worldwide, there is no shortage of great organizations that outperform year after year. More importantly, there are a few firms that build a strong legacy of performance with a team that not only has created a superior culture but serves as a magnet in their market, geography and niches. The competition looks at these industry icons and often seeks to capture their “lightning in a bottle.” In fact, case studies, articles, books and exposes work feverishly to distill the attributes and strengths into some practical formula that can be replicated. Alas, there are many firms that try to assimilate ideas on concepts and ultimately fail to create enduring organizations. They look for the secret recipe through business gurus and technological innovations, only to fall short.
Colantonio is a firm that has the secret recipe and more importantly recognizes the simplicity of its ingredients. This organization has grown from $20MM in the midst of the worst economic crisis in United States history to over $65MM. More important than the revenue growth is the ability to drive consistent best of class financial performance which is reflected in approximately three to four percentage points higher than industry average margins. Success begets success and Colantonio understands how important it is to become the magnet for talent and one of the most attractive firms in their marketplace, in the eyes of the competition and the consumers. The most fascinating aspect of this business is not some complex algorithm or technological gamechanger that created competitive advantage. In fact, the simplicity of Colantonio’s strategy is its genius. As much as Fran Colantonio would like this to remain a trade secret, the simple fact is that his team follows the following recipe
- Smart bid science
- Superior client relationships
- The people
One mantra that Fran focuses on diligently is setting the tone right from the start. “You only have one chance to make a great first impression, so you need that impression to be favorable for you! Every day you are making a first impression on someone. The only difference between a good first impression and a great first impression is the amount of effort you are willing to put into it.” This is just one element of this successful firm’s recipe. There are plenty of successful strategies and it is hardly a one-size-fits-all. However, many firms search for the answer as if it was the Holy Grail in some far enchanted land. Colantonio found the secret and it was no further than their own doorstep.
Smart Bid Science
When times are good, there never seems to be a shortage of work. In fact, for most contractors, there is often more work in the market than they can adequately and profitably construct. More often than not, there is often poor decision making or decisions based on emotion when it comes to “what to build.” Bid science is not some complex algorithm that supersedes the business development within a firm. Rather, it is making the right decisions about what to bid and how to bid. Colantonio not only subscribes to this foundational mantra but more importantly has made it a critical aspect of their strategy. For instance, the organization’s strategic perspective is focusing on the “dirty jobs.” This is not a nod to Mike Rowe’s famous documentary series but rather an embodiment of projects that are not simple and often have many complexities. Consider a strategy that doesn’t focus on the easy “lay-up shot” but the wicked half-court three-pointer. While many managers would love the easy project, Colantonio focuses on the unconventional projects where they can leverage their superior construction acumen to solve client problems, deal with ambiguity and finish strong. The key takeaway is this organization’s strategic commitment to be a proactive problem solver. This sounds trite but how many firm’s steer clear of the dirty work and view it as unnecessary risk. If everyone is “doing it” it is certainly hard to shed the commodity moniker that hangs on many contracting organizations like an albatross. The science is having a strategy and more important discipline to hold to that strategy, is the key takeaway.
Superior Client Relationships
Chasing projects versus chasing relationships. Many contractors make the mistake of targeting projects and view these as “one-offs” rather than one step in a life-long relationship. Additionally, there are many firms that view themselves as customer-centric but lack an affinity for making it happen. For instance, being safe, finishing on time and responsive are hardly proprietary actions and are probably more along the lines of achieving minimal customer expectations rather than “creating raving fans.” Colantonio not only strives for superior service they are fanatical in their obsession to track specific customer feedback metrics. The leadership of the firm actively solicits feedback on their performance. The proof is in the numbers – Colantonio has a 98% favorability rating and over 70% of the clients have become serial buyers. Most importantly, they integrate this feedback into their operational model to create lasting change. How many organizations ask for feedback and fail to act? This only serves to frustrate customers and drive them quicker to the competition.
To drive superior customer service, Colantonio begins their project with a healthy dose of homework. According to Fran, “We do our homework long before we meet with owners. For example, we went in for an interview with a public school and while we were responding to the RFQ we went online and searched for each committee member. We also found all the committee meetings were recorded. We viewed all 36 meetings to find the ‘hot buttons’ so we could tailor our interview and responses to each concern the committee had. After the interview the committee asked how you knew so much about our project?” Taking it one step further, the organization uses this information in how they deliver their projects successfully. More importantly, managers and superintendents never hide the truth. While it is challenging, these associates ensure they tell the customer what they need to hear and not what they want to hear. In the end, each Colantonio customer feels as if they have a customized solution suited to their needs and not some canned proposal that serves as “one size fits all.”
The People
Regardless of how far the industry pushes towards improving technologies, the most important building block is the people. Once again, many firms give this lip service and fail to capture the mind and souls of its associates. Colantonio is not the largest firm nor are they a household name like many construction institutions. However, the firm not only focuses on raving fans amongst their customer base but also internal raving fans. Loyalty in the industry often appears fleeting but Fran Colantonio has repeatedly demonstrated his commitment to his team, even when the short-term solution seems to be the best fiscal response. When asked about his decision to retain team members during a short-term lapse in backlog, Fran said that our associates have families, mortgages, bills, etc. It is one thing to stare down a recession, but it is another to help loyal associates through several weeks while a new series of projects are beginning. Many executives see the income statement and balance sheet as dogma while Fran realizes the importance of human capital, especially in an industry that seems to always struggle with finding talent. Colantonio’s “Golden Rule” is straightforward and genius. Treat others like you would want to be treated, whether in the boardroom or field. Another easy concept to grasp but maintaining this mantra for 40 years, requires the diligence of a master.
Many of these same team members have been with Colantonio for many years which has enabled them to drive their brand further and deeper. Additionally, the firm has often become a magnet in their geography – while they do not hire cavalcades of people, they make sure they have the right person. These new associates become indoctrinated in this new culture, one that creates a certain level of viralness. Once again, success begets success.
There is no shortage of recipes for success. More importantly, there is hardly a patent or copyright on Colantonio’s model. However, fakers abound, and many firms fail to replicate this because they lack the discipline and wherewithal to execute. Colantonio’s secret is one that all organizations would be wise to adopt.
About the Author
As a principal with FMI, Gregg specializes in the areas of productivity and project management. He also leads FMI’s project management consulting practice. He has completed complex and sophisticated construction projects in several different niches and geographic markets. He has also worked as a construction manager and managed direct labor. FMI is a unique and fast-growing firm of professionals passionate about creating a better future for engineering and construction, infrastructure and the built environment throughout North America and around the world. For more information on FMI, please visit www.fminet.com or contact Schoppman by email at gschoppman@fminet.com.
