Making Better Decisions The Right Way!

Words: George Hedley

Do you struggle to get key employees to accept more responsibility? It is frustrating when your team looks to you for guidance on every decision. And when you empower them to decide, mistakes can occur. How do you foster greater accountability without compromising your project outcomes?

The Challenge Of Delegation
In my early years as a leader in a growing construction firm, I sought to encourage my project managers and superintendents to make decisions independently within clear guidelines and boundaries. I delegated critical tasks such as awarding subcontracts, ordering materials, approving change orders, and working with the project owners. Over time, I placed increasing trust in their judgment. However, I recall how this approach backfired when a project manager agreed to contract terms that seemed harmless but later resulted in substantial financial setbacks. A client held us accountable for clauses that expanded our work scope unexpectedly, revealing that the manager had not fully grasped the contract's legal ramifications.

The Pitfalls Of Blind Trust
This experience prompted a critical evaluation of our delegation processes. I uncovered several issues stemming from our overly trusting environment. Some project managers failed to include complete scopes in their subcontracts, leading to costly overruns from unrecoverable change orders. Others did not accurately review employee timecards or manage vacation time properly. Some approved expense accounts without examining invoices closely, and instances of financial misconduct surfaced among employees.

These situations illustrate how employees can develop a sense of entitlement over time, especially when they feel trusted. Little actions, such as telling subcontractors to go ahead on added work without signed change orders, not making sure ordered materials can be delivered to the job per the schedule, or not enforcing your company policies like mandatory weekly project manager jobsite visits and project owner meetings, will definitely get you into financial trouble over time.

Implementing A Protection System
To address these challenges, we reinforced our written company standards, systems, and policies, ensuring they applied universally without exceptions. Our new system required collaborative decision-making for significant financial commitments and transactions. Specifically, every contract, change order, estimate, or payment of more than $2,500 required approval from both the project manager and a senior manager or me as president.

Involving a second set of eyes in crucial decisions helps catch errors and promote accountability. For instance, when a subcontract is awarded, the project manager reviews all proposals and selects the best option. They then present their selection for approval from a senior manager, ensuring that all bases are covered before proceeding. This additional step greatly reduces cost overruns and project complications.

Empowering Decision-Making
To boost responsibility among your team, provide a decision-making framework that encourages autonomy while ensuring oversight. A formal line of command and clear levels of authority are mandatory to be successful. Implementing a structured review process for critical decisions allows employees to feel empowered while safeguarding the company from mistakes.

By investing time in developing these systems, you can enhance accountability and ultimately increase profitability. If you are ready to refine your approach to management and foster greater responsibility within your team, reach out to get a free workbook on this subject.

Together, let’s ensure that two heads really are better than one in your construction business.

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ABOUT THE AUTHOR
George Hedley CPBC is a construction certified professional business coach, consultant, and speaker, He helps contractors increase profits, grow, get organized, systemize, and move to the next level! He is the author of “Turn Your Construction Business Into A Profit-Making Machine!” available on Amazon.com. To schedule an introductory coaching session or get his free e-newsletter, email GH@HardhatBizcoach.com. Watch his videos at youtube.com/@HardHatBizCoach or download online courses and get his contractor templates at hardhatbizcoach.com.

Making Better Decisions The Right Way!

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