LEARN from your Failures

If you have been in business for more than a few years, and have run into a problem job, I am speaking to you.  If you have not had the misfortune of getting stuck with a contract that is impossible to profit from, then you need to keep reading; the process of biding jobs correctly has the power to save your bottom line.  The most important thing about a bad job, is learning how to avoid the same pitfall again…and again.  For many years, a business can coast along with some small failures and successes; coasting leads to complacency and a false sense of security.  Taking your eye off of the planning process and letting inertia run your business, is a recipe for dangerous problems, and can lead to projects that have the potential to stop growth in their tracks.

The first step in dealing with a catastrophic contract (project), is surviving it; regroup and make a plan to focus on completing the tasks directly in the path of future survival.  The second step is moving back so that the problem does not block the road to future success.  The two most costly mistakes in dealing with difficult jobs are ignoring them and/or letting them consume you and allowing them to block future progress.  Without the ability to continue profitable operations, a blind focus on the problem can cut off any other profitable operations, leading to reduced cash flow.  The most important thing is to find a way to solve the issues you are faced with, without cutting off continuing work.  This process can be especially challenging when the solution takes up valuable time and manpower that is needed for profitable projects.  Balance is the key to future recovery.  In some situations, downsizing or cutting back might be necessary; be cautious and review your overhead, making sure that the cost of the solution can be covered by other ongoing projects.

USE FAILURE TO BUILD A FOUNDATION FOR FUTURE SUCCESS.

In the beginning, do not analyze the problem, only the solution, while you are in the middle of solving a difficult situation.  When the problem is past, there will be time to figure out what went wrong so that meaningful changes can be put in place to avoid future issues.  Use the moment to work through a solution that will not only make your customer satisfied, but will leave you operational and functional at the other end of the solution.  Many of the best repeat customers come from handling bad projects in a responsible professional way.  Easy jobs rarely lead to new knowledge; difficult projects always lead to a better process that can be used as building blocks for future projects, processes, and success.  Turn the wall in front of you into a gate; let the process teach you how to succeed in the future, and what solutions work best.

Never give up on your future and always keep in mind that there is opportunity on the other side of the wall (problem).  Look for the gate/opening and work hard to get through it; on the other side is a better future.

Experience is the best teacher, and ignoring past mistakes can extinguish future goals and success.  After completing a troubled project, take some time to analyze the the steps that led to the problem, and the measures taken to correct it.  Take some detailed time with all of your team members to discuss avoiding the same issues and come up with solutions that can be turned into profit on future projects.

• Take a detailed look at the project from the bidding stage forward.
• Identify the problem or problems
• Review the steps taken to resolve the issue
• Make a detailed list of solutions
  • Decide if Similar projects will be eliminated from your bid list
  • Alter your process of estimating similar projects
  • Fine tune your solutions – make recovery easier on future problems
  • Do not file your solutions away – make meaningful changes immediately
• Inform your WHOLE team of the problems and solutions – keep a visual reminder of the project so that it will motivate your team to stay aware of avoiding costly mistakes.

Team members need to feel confident that leadership has identified what lead to project problems, and has resolved the issues; they also need to be a part of identifying future hurdles.  It is important for every member of the team to keep a lookout for anything that could trip up success.  Many times, management cannot see the issues early enough to make appropriate changes; by keeping everyone on watch, many small issues that can lead to major problems, can be avoided.

Stay positive, executive confidence can make or break a problem when your whole team is in the trenches fighting for a resolution.  Keep on task and do not let your team give up on future projects; those projects will be the catalyst for future success.  When the walls are closing in, never forget that there is a solution to every problem.  As a leader, it is your responsibly to guide them down the path to a better place.  If you can keep your team on task without loosing faith in the future, then the very worst situation can lead to a stronger future.

Make meaningful changes, and make them visible.  It is important to let your team and your customers know that, by identifying the problem, change can make your company better.  Let your team be part of the solution and take ownership in real change; listening to suggestions, and using them for the final solution will build a stronger bond with your team.  When leadership lets the whole team be part of the solution, real change has a better chance of success.  Keep sight of past success and do not change the things that makes your company a unique commodity; the goal is to make things better, not to reinvent yourself.  If you want real long term success, it is important for your company to have an identity; do not let corrections change the things that your customers like best about you.

Don’t let Problems Define you, let them shape your future; If you are already successful, you can use them to make you stronger.  If you are just starting out, you can learn from the experience.  Never let them discourage you from your dreams.