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Marketing Opinions - April 2004

Integrating Marketing Efforts into Operations
By Terry Kramer

Helping Hands

When construction companies initiate marketing and business development efforts, the other employees typically resent this new kid on the block. Everyone notices that not only does the Owner and Managers lend helping hands to promote this person's success, but this person expects everyone else to lend a helping hand, too. This does not normally sit well with Estimators, Project Managers, and Accounting personnel since they were originally thrown to the wolves and asked to figure out what their jobs should be. Where were their "helping hands" within the company when they needed them ?

To compound matters, the Marketing/Business Development Manager will announce within a relatively short period of time that marketing is everyone's job. Excuse me? Employees frown upon these comments because it appears that everyone should do their own work and that no one else has made their job tasks the common responsibilities of all company employees. What a way for a Marketing/Business Development Manager to get off on the wrong foot.

Salvaging the Marketing Function

In many ways, the behavior of the Owners & Managers is correct, as well as the request for assistance from all employees. It's just that it was handled all wrong and within the wrong timeframe. There is nothing so powerful within construction companies as motivating a large bloc of employees to rally against a Marketing/Business Development Manager. Employees frequently pull the rug out from under the promising candidates, especially when things are handled incorrectly.

How do companies get to that point where Operations personnel will help the Marketing/Business Development Manager? Despite significant resentment from most employees, the marketing efforts can still be salvaged, but it will take a concerted effort from the Owner & Managers to convince company personnel that marketing and business development activities are worthwhile.

With an employee backlash facing the company, the Owner & Managers must implement the following:

  • Culture: emphasize and establish marketing, customer service, and work acquisition activities as key components of the company culture
  • Bonus Program: connect individual employee behaviors to an incentive program that rewards and supports these cultural behaviors
  • Meetings: illustrate to company personnel in meetings how their behaviors impacted a contract, a sale, change order approvals, or repeat work
  • Strategy: convey importance to employees of how marketing, business development, and work acquisition activities factor into company's strategic success for backlog, market penetration, new market niches, and profitability
  • Organizational: creating an organizational matrix structure that places the Project Manager as the Team Leader on each project where even the Marketing/Business Development Manager will serve the needs of the PM and project team in regard to customer needs

    Benefits of Team-Marketing

    These approaches are effective and do work within construction companies. Before companies know it, employees are gleefully complying with the requests of the Marketing Manager. They start to notice the benefits of companywide involvement in marketing:

    1) there is a steadier flow of work which secures employment
    2) promotions are more frequent throughout the company and career tracking is discussed more
    3) the bonus pool appears to be increasing each year
    4) employees take more ownership of new projects, since they have assisted in acquiring the work
    5) customers are happier and freely give more repeat work to the company, without bidding for it

    There are some surprises to employees about marketing & business development activities:

  • marketing & business development efforts are harder than they look
  • there is a much longer lead time involved in projects than everyone had originally thought
  • the hours required to secure projects vary wildly from project-to-project
  • there is lot more information required to be provided to customers
  • the disappointment associated with projects derived from marketing is more personal than just hard-
    bidding a project without much personal contact with the customer

    What Are Companies Ideally Looking For?

    When marketing & business development tasks are finally accepted internally as standard business functions similar to estimating, project management, and accounting, companies should expect the following behaviors from Operations personnel:

    1) regular participation in presentations
    2) assistance in the preparation of conceptual estimates
    3) involvement in ongoing pre-construction meetings
    4) collaboration with estimators during the job on change orders
    5) meetings with the customer liaison throughout the job
    6) preemptive punch lists prior to customer walkthroughs
    7) actively seeking customer feedback at the end of the projects via surveys
    8) jobsite visits to new projects prior to the end of the current project

    It takes construction companies years to fully integrate a marketing & customer mentality into the heart of the company culture. There is usually internal resentment from the typical opponents of marketing but there are always a surprising number of key employees who defy the company's strategic intent. These personnel eventually realize that they do not fit into the new company scheme and then leave. The departures typically advance the cause of marketing further, as obstacles are removed.

    On occasion, a marketing culture can be so successful that non-marketing personnel lay claim to more work acquisition successes than the marketing & business development personnel do, but it is usually exaggerated. At the end of the day, no one cares who takes credits because marketing really is a team effort in the first place.

    Terry Kramer has been consulting to construction companies for 17 years. He can be reached at 480-443-0859 or www.k-advise.com

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