Operational Motivational Plan

Operational Motivational Plan Organization's Motivational Plan I am President, and CEO of a small geneal contracting company. We are a medium size company for our market, with 20 employees. We operate in the residential, and commercial markets, specializing in higher end residential new construction and remodeling projects in neighborhoods which typically display homes of $250,000.00 or more. Tradesmen in this industry are independent, and perfectionistic. The craftsmen on our staff are some of the most talented carpenters, masons, and painters in their fields.

The company has received recognition as "One of the Top 100 Residential Contractors in the Nation" three times out of the last 5 consecutive years. However, in the past 16 to 24 months, company gross margin has been eroding, and staff moral has begun a consistent downward slide. The site managers are dealing with construction time overruns and wrong / not enough materials on the jobs. These occurrences are becoming weekly, and at times daily, which is adding non-budgeted expenses to materials, labor, transportation, and supervisory oversight.

The site managers (3 are employed in the company) job descriptions include performing the company project estimating, and serve as front line communications staff for new lead referrals / potential customer contacts. As their time requirements on the existing job sites increase, the company's ability to secure future work contracts is being threatened. After conducting a SWOT analysis, this motivational plan has been developed by company site managers, and the president. This plan takes into consideration: Changes to implement in overall corporate mindset, goals, and perspective.

Changes in management style for the site managers. Changes in site management responsibilities by creating the position of job foreman, which will include specific responsibilities, and job specific incentives. Creates an incentive program that affects every staff member. Changes in Company Mindset The mindset of this company has been that the top priority was to perform construction projects, to the highest level of quality, satisfying the customers' desires in every aspect, and do so in the shortest time possible.

Recognizing that these goals often create opposing views between the site manager, and tradesman, and customer, a fourth balancing priority has been added to the company mission statement. The company will seek to create meaningful employment for the worker on the site, which will allow for personal growth, and empower the worker to reach significant personal goals. The first way the company can foster this change is to offer reimbursement for successfully completed college level, or trade school training courses.

More specific elements of these changes affect work site staff, and are detailed in Job Foreman and Incentive Program sections below. Changes in Site Managers / Estimators Job Responsibilities The site managers will be entrusted in the everyday decisions which cannot be resolved by the job foreman. He will source materials, arrange delivery, handle day-to-day communication with the customer, and sub-contractors. These decisions have been routed to the president, hindering the manager's role as decision maker.

Rather than daily review of details, a single weekly review will be scheduled of every job, at which time major decisions which cannot be resolved by job foreman, of site manager can be made as a group. The final evaluation of the site manager's performance will change from day-to-day oversight, to a summary review of the financial performance of each project. The manager will be held accountable, and rewarded for reaching, and exceeding the financial goals of each project. Foreman Position New position of foreman will be established.

One tradesman will be assigned to this position for each project. This person will be involved in every stage of the project, will be responsible for communicating with the office staff the material and crewing needs on a daily / weekly basis. This position will carry a salary bonus, over and above the existing wage scale. The Foreman will be given budgeted labor, and material information. The new incentive program will offer financial rewards to the foreman for the overall job performance.

The communication of these new goals will be handled by the site managers, thus facilitating his role as communicator. Company Incentive Program This program will have 3 levels, and is designed to encourage each tradesman, to make decisions on a daily basis that inevitably will reward him personally, and create a team environment within the groups of tradesmen which work together. Rewards for individual job performance.

For every job that is successfully completed above the company gross margin goals for that project, the foreman will share in the surplus profit, receiving 5% of the additional profit as a financial bonus. These will be paid monthly, one month after the job closes, and final profit calculations are completed. Rewards for Site Manager's Performance.

Each site manager will have sales goals in terms of "Gross Margin" x "Gross Sales." (GM$) This reflects that the 3 site managers are responsible not only for supervising a given dollars in company revenue, but also stewarding that revenue to create a specified amount of gross margin. Some of the company's projects are consistently lower margin, and higher volume, while custom homes are management intensive, slow to complete, but produce high revenues. This incentive program will be paid to individual site managers for the accounts they supervise.

Any (GM$) over and above the manager's budget will be shared by the company. This bonus will be a 2% of the additional GM$, paid quarterly to the site managers on business closed in the prior quarter. Finally, all employees will be invited to participate in an annual profit sharing program. This program recognizes that the performance of the company depends on that of each member, each day. 25% of the GM$.