Many say this business can be devilishly difficult. Between problematic retail customers, slow paying contractors, the difficulty finding good employees, and fierce price competition – it’s easy to understand how an owner can get frustrated. Yet, there are many shops that are very profitable.
Why is it that some shops struggle and some flourish?
If you ask this question of 10 people, you will likely get 10 different answers – and most of them will be correct. However, every one of those answers will have one key prerequisite to make them work. That prerequisite is solid management and strong leadership.
Rear Admiral Grace Hopper said, “You manage things; you lead people.”
Management
Some of the essential keys to good management are Goal Setting, Continuous Improvement, and Developing People.
Goal Setting
Good managers set worthwhile goals for the organization. They then break down larger goals into smaller, manageable targets, helping their teams understand not just what to accomplish but why it matters. This clarity fuels motivation and keeps everyone focused.
These smaller more manageable targets form the basis for individual and team objectives. Measuring progress against these objectives allows for real time feedback on performance. An effective manager will use the metrics and feedback as mechanisms to hold individuals and teams accountable for their performance. This combination of metrics and accountability form the basis for creating a culture of high performance – essential for the success of any organization.
Businesses with family members in key roles have a special responsibility to ensure that everyone is held to the same performance standards, regardless of family ties. Also, the so-called “Sacred Cow,” or an employee who is exempt from rules, can cause significant friction within the team. Both situations can set a precedent that undermines morale and productivity. A high-performing culture values performance over connections or other special conditions.
Continuous Improvement
Good managers are committed to continuous improvement, not only for themselves but for their teams and processes. They seek feedback, reflect on their own performance, and strive to enhance team efficiency and effectiveness. This commitment fosters a growth mindset that keeps the team dynamic and adaptable.
Establishing documented processes is foundational for efficiency and quality control. Documented processes help set standards, ensure consistency, and empower employees to work more independently. When the business operates with a documented framework, it can scale more easily, as new employees have clear guidelines and can get up to speed faster. Processes also provide measurable benchmarks, which are essential for tracking performance, setting goals, and driving improvement.
A common pitfall for businesses, especially smaller ones, is the lack of documented processes and procedures. An organization that functions on unwritten policies (also known as tribal knowledge) often finds itself in chaos. If there’s a lack of written procedures, confusion about policies and expectations is bound to arise. For instance, employees may frequently ask, “Didn’t we change that policy last month?”
Without clarity and documentation, mistakes become more common, quality suffers, and customer satisfaction drops. Without this documentation and standardization, the business ends up being totally reliant on the owner for all decisions. This exhausts the owner and limits the ability of the business to perform and grow.
Developing Talent
Good managers develop people. They invest in their team’s growth by providing training, resources, and mentorship. This focus on development helps employees gain skills, overcome challenges, and prepare for future roles, contributing to both individual and organizational success.
In a competitive industry like ours, employee development is crucial. Unfortunately, many businesses lack a structured training plan, relying instead on ad hoc methods like “just work with Bob because he’s our best sawyer.” While shadowing experienced employees has some value, it’s often insufficient on its own. Without structured training, new employees may not learn essential skills consistently, which can affect both quality and productivity. Over time, this can result in uneven performance across the organization. A business cannot expect excellent performance if it hasn’t properly trained its people.
A structured training plan ensures that every employee receives the same foundational skills and knowledge, and it helps them understand their role in achieving the business’s overall goals. Training should be complemented with a formal performance review system to provide ongoing feedback, set individual goals, and recognize achievements. This fosters a culture of growth and accountability, which ultimately drives company-wide success.
Leadership
Some of the keys to effective leadership are Vision, Inspiration, Empowerment, and Integrity.
Vision
Good leaders provide a clear, compelling vision that inspires people to work together toward a meaningful purpose. They articulate this vision in a way that connects to team members’ values and aspirations, creating a sense of shared purpose. By aligning the team around common goals, leaders give people a reason to invest their energy and talent.
Inspiration
Good leaders inspire by example and through their words and actions. They earn trust and respect through authenticity, consistency, and integrity. Their passion for the mission is contagious, and they inspire team members to go beyond what is expected, often encouraging people to see and reach their potential.
Empowerment
Good leaders empower their team members by giving them autonomy, trusting their judgment, and encouraging initiative. They avoid micromanaging, instead providing the guidance and resources needed for success. This empowerment creates a culture of ownership and accountability, where people feel responsible for their contributions to the larger mission.
Integrity
Integrity is the foundation of trust. Good leaders model ethical behavior, fairness, and transparency in all actions and decisions. They hold themselves accountable, admitting mistakes when they happen and setting a standard of responsibility for the entire team. This honesty reinforces credibility and creates a culture of trust.
While there are many correct answers to the question, “Why aren’t more shops successful?”, all of them require both solid management and effective leadership to deliver success. Without these traits in the management team, growth and profitability of the business will always be limited.
If you are struggling with your business or if you’re just stressed out or want to discuss the content of this article, visit my website and hit the SCHEDULE FREE CALL button or contact me at Ed@FabricatorsCoach.com. We’ll talk about your situation, and I’ll help you develop a plan to reduce the chaos, make more money, and get your life back, oh, and be more successful!
If you enjoyed this article and want to hear more from Ed on this and other key Fab Shop topics, check out our podcasts (www.fabricatorscoach.com/podcasts) and videos (search YouTube for Fabricators Coach).
This article is a reprint from The Slippery Rock Gazette, and can be found at:
https://www.slipperyrockgazette.net/index.cfm/pageId/5427/Countertop%20%20Shop%20Success%3A%20What%E2%80%99s%20the%20Secret%3F/
In addition to having run a countertop fabrication shop, Ed has also helped many fab shop owners become very successful. He is a seasoned manufacturing manager and coach who has helped hundreds of companies from single person startups to large international corporations. As a former business owner, he understands the responsibility to make payroll while also satisfying customers. Ed can be reached at Ed@FabricatorsCoach.com . If you want help implementing this tool, Schedule a Call with Ed. If you enjoyed this article and want to hear more from Ed on this and other key Fab Shop topics, check out our podcasts (www.fabricatorscoach.com/podcasts) and videos (search YouTube for Fabricators Coach).