An examination into organizational chemistry and why certain organizations thrive in perpetuity, reinvent themselves or become a one-hit wonder
By Gregg Schoppman, FMI
First, in full disclosure, the author is an enormous fan of Van Halen. Whether you are talking about the hits from the David Lee Roth years or “Van Haggar”, their catalog is absolutely amazing. There are probably a few readers that are asking the question “But what about the Gary Cherone years?”, to which the response is exactly the thesis of this piece. For the small minority that are asking “Who is Van Halen,” my apologies. On the flipside, the Rolling Stones have an equally amazing history that makes them one of the greatest rock and roll bands today. In fact, much to everyone’s surprise, the Rolling Stones still perform today, 58 years since they were formed. The fact that they perform today has less to do with their age and more to the point that there is a documented “toxic relationship” that exists between the lead singer and the lead guitarist. Rock and roll egos make for amazing stories. Lastly, you have the band from the 1980’s, Ah-Ha. While some rock purists would say it is blasphemous to include them in such a list with rock royalty, it is important to recognize that this alternative musical group won many awards and have often been attributed to revolutionizing the video music industry. Alas, this Norwegian one-hit wonder’s meteoric ascent was only matched by their descent back into obscurity. Sure, they stuck around until around 2010, but ask anyone to name one other song other that famous melody “Take on Me”, in their catalog and you would be hard pressed for an answer.
Whether it is The Who, Led Zeppelin, Oasis, The Black Crowes, or even BTS (just had to be sure you were still paying attention), strife, unrest and the clamor for the limelight seems as rock and roll as laser shows, tower speakers and pyrotechnics. Now before you think you opened to an article in Billboard or Rolling Stone, it is important to think about how the same chemistry in the greatest bands has some similarity to today’s construction organizations.
Consider this. Your organization is on top of the world. In addition to charting record volumes and appearing in all of the industry trade journals, the team has grown exponentially. With new personnel, there is an almost collegial tone, where associates mix it up as if every day were a pep rally. It doesn’t get any better than this. And then one day, someone leaves that happy family. And then another leaves. A project slips, failing to meet its budget or deadline, sowing seeds of discontent. A new manager hops on board but doesn’t seem to have that tribal knowledge of the others in the firm, forcing them to leave a short time later. Markets shift, confidence erodes, customers complain. One day, the team was winning “Best New Builder”, the next day, they are the discount contractor struggling to make payroll. What happened?
Ultimately, all companies evolve or devolve. Some adjust and pivot with the times, while others seek to find the same glory days as if it were lightning in a bottle. For others, that friendly, chummy environment bred complacency. Put another way, if you read the news about how great you are, you start believing it. So, is the theme to not have a harmonious environment and where managers and superintendents roam the hallways like divas? No, but there is something interesting occurring in some of our case study examples that bear mentioning.
The Rolling Stones
Not all teams have to get along all the time. However, they do have to get along enough to recognize the organization comes first. In fact, some of the greatest businesses have conflict on a daily basis. Conflict by itself is not bad. Lack of conflict resolution and the inability to foster a robust feedback system is bad. How often do firms stifle that constructive dialogue because they fear upsetting their fragile ecosystem? While Mick Jagger and Keith Richards may not have had a Kaizen event or brainstorming sessions to work out the kinks on “Sticky Fingers” or “Steel Wheels” they recognized that their greatness together far outweighed the pettiness of their individual egos. How many construction organizations are able to channel conflict in a constructive fashion, while overcoming those individual roadblocks?
Van Halen
Think of organizations that have been around for 50, 60, or even 100 years. During that time, regimes have risen and fallen, staff has turned over numerous times and they have had to stay relevant. Not every organization can replace a key leader and still be relevant in the marketplace. In some cases, they try too hard to hold onto their old persona without allowing themselves to grow and evolve. Van Halen managed to reinvent themselves amidst a transition of their lead man. With the risk of deteriorating into a musical diatribe, each lead singer had different strengths vocally and musically and the band managed to capitalize on those differences. Were they a starkly different band? Some would argue yes but they also managed to create amazing music that was complemented by those differences.
Well, it worked once at least. They tried to reinvent their band again, but it failed. Were they trying to insert a senior leader in a role that was simply a “plug and play”, hoping that the organization would adapt the new leadership with no discontinuity? Organizations have to be willing to adapt to change and worry about not wanting to shake things up simply to maintain a status quo.
A-Ha
Firms do not need to be enormous nor do they adhere to the norms of what others think they should be. If a firm is satisfied at being $25-30M, with some modicum level of growth, that is all that is important. Often, firms race to the top of the mountain, only to realize they were more content as a small or mid-sized firm. Would A-Ha have preferred to sell multi-platinum albums every year and make the Rock and Roll Hall of Fame? Possibly, but it is interesting that they still made nine albums after their groundbreaking debut. Firms create their own strategy and more importantly develop the business they want. While the market will dictate their commercial success, a firm can control their own destiny.
There is no perfect construction organization just as there is no perfect band. Firms are full of personalities, conflict and egos just like the rock and roll world. The keys are channeling conflict in the right direction, being adaptable to the skills and talents of the team and finding the place in the world that allows the organization to build according to their vision, not the vision others think they should be. In a world that is full of ABBAs (sorry ABBA fans), wouldn’t it be nice to be a little like The Beatles?
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.
