the 2011 u.s. construction industry talent development report

Knowledge • Expertise • Relationships

TALENT DEVELOPMENT REPORTThe 2011 U.S. Construction Industry

Knowledge • Expertise • Relationships

Copyright 2011 FMI Corporation

CONFIDENTIAL: The information and data in this report are strictly confidential and are supplied on the understanding that they will be held confidentially and not disclosed to third parties without the prior written consent of FMI Corporation.

To request additional copies of The 2011 U.S. Construction Industry Talent Development Report, contact Ashley Sisk at 919.785.9242 or via email at [email protected]. For additional information, please contact Ken Wilson at 919.785.9238 or via email at [email protected].

TABLE OF CONTENTS

Introduction .......................................................................................................................... 4

Survey Respondents .............................................................................................................. 5

Workforce Demographics/Trends ........................................................................................... 6

Preparing for a Changing Workforce ...................................................................................... 7

Finding and Retaining the Best Talent .................................................................................... 9

Psychological and Other Assessments .................................................................................... 12

Establishing an Ethics Culture ............................................................................................... 13

Core Competencies ................................................................................................................ 15

Strategic Thinking vs. Strategic Planning ............................................................................... 16

Hot Trends in Training ........................................................................................................... 18

Training Budgets and Expenditures ........................................................................................ 19

Hours of Training ................................................................................................................... 21

Measuring Training Results .................................................................................................... 22

Job Descriptions, Performance Standards and Compensation ................................................ 24

Talent Development Practices ................................................................................................ 27

Emotional Astuteness ............................................................................................................ 31

Developing High Potentials ................................................................................................... 35

Succession Planning .............................................................................................................. 37

Employees Leaving/Retirement .............................................................................................. 40

Best of Class — Interview ...................................................................................................... 41

THE 2011 U.S. CONSTRUCTION INDUSTRY TALENT DEVELOPMENT REPORT

4

Introduction

The “Great Recession” has significantly affected today’s business environment.

Companies trimmed budgets, reduced overhead spending and “right-sized” to a much

leaner and meaner version of themselves. Companies also put talent development on

hold while they tried to survive. As the economy turns around, emerging trends show

that economic demands on human capital will continue; a multigenerational workforce

is the norm, and business alignment is critical to survival. These new realities make it

even more critical to employ solid talent development strategies moving forward.

For more than 15 years, FMI has distributed surveys to construction firms

nationwide in order to identify current training and development practices,

challenges and trends that are influencing the construction industry. FMI’s 2011 U.S.

Construction Industry Talent Development Report examines the challenges, concerns

and innovations having an impact on the construction industry in the past year. In

addition to the data collected from our survey respondents, we have included articles

featuring emotional intelligence, development of high potentials, ethical compliance

and best practices in the industry. Companies should use the results of this survey as

a guide when considering training and talent development practices. We hope the

information contained herein will help you understand how your company compares

to others and where it stands to improve on these important issues.

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Survey RespondentsWe sent surveys nationwide to more than 4,000 construction firms of all sizes and specialties. General contractors made up 71% of the

respondents, followed by construction managers (14%) and engineering (6%). Forty-four percent of the responses were from firms with

revenues between $100 million and $499.9 million, which is very consistent from our past surveys. Also consistent with previous surveys

were the number of employees at season peak, with almost half of the respondents employing 100-499 workers.

Contrary to previous years, more than half of the respondents (56%) were presidents, chief executive officers or vice presidents. Previous

years’ respondents included mostly training and human resource directors. These figures indicate that since our last survey in 2007, the

economy has certainly shifted, and the C-suite has become even more proactive with its approach to the development of its employees.

Primary Type of Work

6% Engineering4% Other3% Heavy/Highway/Utility2% Architecture1% Specialty Trade71%

General Contractor

14%

ConstructionManager

Role of the Respondent

Annual Construction Revenues

Number of Employees

11% 500 - 999 8% 1,000 - 1,999 5% 2,000 or More

49%100 - 499

28%

Fewerthan 100

8% Owner5% General Manager5% Chief Operating Officer4% Other2% General Manager2% Training Director

32%

VicePresident

25%

President/CEO

15%

HumanResourceDirector

5% Less than$25 Million

44%$100 Million to $499.9 Million

21%

$50 Million to$99.9 Million

15%

$500 Millionor More

15%$25 Million to$49.9 Million


6

Workforce Demographics/TrendsEighty percent of survey respondents who were in management or supervisory positions indicated that they were white, not of Hispanic

origin. This number continues to decrease over surveys conducted in previous years, proving that the demographic makeup of the con-

struction workforce continues to change as we push further into the millennium.

In 2007 women held 10% of management /supervisory positions in construction. That percentage has not changed in the past four years.

The number of women working in the trades, however, has increased to 8%, up from 5% in the last survey.

What are the current percentages of the following race/ethnic groups in management/supervisory and technical/craft positions?

AfricanAmericanor Black

Asian orPacificIslander

Hispanicor

Latino

White, notof Hispanic

Origin

Other

5%2%

11%

80%

2%

% of Total Response

What are the current percentages of the following race/ethnic groups in management/supervisory and technical/craft positions?

Percentage of Women in

Supervisory Positions

5%

7.7%

5%

10.1%

% of Total Response

Percentage of Women in

Technical/Craft Positions

MedianAverage MedianAverage

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Preparing for a Changing WorkforceThe makeup of the U.S. workforce continues to change. Several years ago, our primary concern was the quickly approaching retirement age

of baby boomers and the diversification of the workforce with respect to gender and race. The “Great Recession” has changed everything.

The oldest baby boomers turn 65 this year. Previous standards suggest that they can retire, but that is not necessarily happening right now.

They are finding that they are not just taking care of themselves, but are also responsible for the welfare of their parents and even their

adult children who return home after college to look for work. Many baby boomers are finding that they have to continue working just

to keep up with their 401(k). However, tenured employees continue to leave the industry, taking with them valuable experience, business

contacts and years of knowledge that is difficult to replace.

Either way, companies must restart any succession planning they may have put on hold during the recession, if they want to ensure that

they will have an adequate supply of talented employees in the coming decades.

We asked how organizations are preparing for a changing workforce, and at least three-quarters of those who responded indicated they were:

� Promoting internally to key positions (84%)

� Training to improve performance in specific competencies (78%)

More than half of the respondents indicated they were preparing for a changing workforce by:

� Providing internship/co-op programs (72%)

� Employing “best practices” to retain key talent (70%)

� Networking with community and industry groups (64%)

� Establishing core competencies by position (61%)

� Increasing recruiting efforts at schools, colleges and/or universities (58%)

� Identifying current gaps in core competencies (53%)

� Increasing recruiting for experienced industry talent (50%)

Veterans(born before 1946)

5.2%

37% 38%

19%

% of Total Response

Baby Boomers(born before1946-1964)

Gen-Xers(born 1965-1980)

Millenials(born 1981-1999)

What percentage of your company's workforce falls into the following generational categories?


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Which of the following is your company doing to prepare for a changing workforce?

84%

% of Total Response

Promote internally to key positions

Train to improve performance in specific competencies

Provide internship/co-op programs

Employ “best practices” to retain key talent

Network with community and industry groups

Establish core competencies by position

Increase recruiting efforts at schools, colleges and/or universities

Identify current gaps in core competencies

Increase recruiting for experienced industry talent

Develop project competencies needed in the next five to 10 years

“Poach” employees from other firms

Recruit in nontraditional labor pools

Offer phased retirement or contract work for retiring employees

Other

78%

72%

70%

64%

61%

58%

53%

50%

45%

21%

21%

15%

1%

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Finding and Retaining the Best TalentWe asked respondents what recruiting strategies they were using to recruit the best talent. Seventy-seven percent of respondents reported

that they were using internships and co-ops, exactly as it was in 2007. Internships are usually a win-win situation for both the employers

and the interns, as they allow both parties to see how the job fits.

The National Association of Colleges and Employers’ (NACE) 2011 Internship and Co-op Survey found that employers expect to increase

internship hiring by about 7% this year and co-op positions by nearly 9%.

The bigger question for us is, How many of those internships and co-ops are materializing into full-time hires? According to NACE, compa-

nies are making full-time offers to interns 67% of the time. After one year on the job, new hires recruited from an employer’s own internship

or co-op program are retained at a rate of 75.8%. In comparison, 60.7% of new hires recruited without any internship/co-op experience

were still with the company after one year. However, when we look at those same hires after five years, 55.1% coming from an employer’s

program are still at the firm, while only 44% of hires without an internship/co-op experience remained.

The benefits of hiring former interns include increased retention rate of new employees, reduced training periods and improved personnel

selection by using actual on-the-job performance as a real measurement of future success.

To stay ahead in the talent war, effective recruitment of rising stars is essential and often requires aggressive tactics. Maintaining a reputation

of being an employer of choice is one way to attract talent. This may be achieved by making a concerted effort to brand and market the

company’s image and publicizing this in targeted media outlets, on websites, etc. Furthermore, the sooner good candidates are identified

and hired, the less the company has to spend on advertising, interviewing and selection costs.

This, of course, leads us to ask what companies are doing within those first five years to attract and retain talent. Seventy-nine percent of re-

spondents stated that being an employer of choice was their top strategy, followed closely by providing comprehensive benefits and rewards

(59%), and providing training/learning opportunities (56%).

Digging deeper, we were incredibly impressed with some of the strategies that companies are using across the country to promote talent

development and retention. Here are just a few of the best practices across the industry as stated by a few of the respondents:

� “There are so few of us left after the last three years that we are all cross-trained into all other jobs.

In order for the company to succeed, everyone must perform. In order to keep the benefits employees

like, the company must succeed.”

� “Accessibility of upper management mentoring and having fun in a not-so-fun industry.”

� “Clearly indicating that we promote from within and that it’s talent, not seniority, that gets you there.”

� “Hire the right people, pay them well. Recognize their achievements and allow them to grow

and make mistakes they can learn from.”

� “We encourage our employees to rotate through positions – project management, field

supervisions, estimating, etc. Broad exposure increases their knowledge of the business and

keeps things interesting and challenging for them.”

� “Work with employees individually and give them an opportunity to be what they want

to be; helping them get there.”


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Interestingly enough though, very few, if any, companies reported using strategic onboarding practices (0%), building the position/hiring

practices (11%) or providing clearly defined career paths (15%), even though 70% of companies did report that a career path was offered.

What are the dangers of not practicing these approaches as it relates to attracting and retaining talent? Anytime an employee “fails” to per-

form, then we can assume that other employees put into that same situation could fail as well. Said another way, anytime there is any failure

in your firm, there should be immediate action taken to put systems or procedures in place that will mitigate the risk of the failure to occur

again. You can think of it almost like an OSHA violation. We certainly wouldn’t want a repeat occurrence.

Make sure that each employee position within your organization has clearly defined roles and responsibilities and that he or she knows

exactly what is expected. While a defined career path may not be an option, communicating with your employees about their current

role in the company and next steps is important. Regardless of the size of your firm, you should always have job duties and performance

measurements in writing. It is actually very frustrating for employees to work in an environment where they are not sure of their duties

and limitations. Boundaries that are not clearly defined are painful, so do yourself and your employees a favor and make sure that even the

“assumed” duties are clearly in writing.

Which of the following is your company using to recruit the best talent?

77%

% of Total Response

Internships/co-ops

Job postings on your company’s website

Internal employee referral program with incentives

Online recruiting tools (e.g., Monster.com, Careerbuilder.com)

Professional recruiters

External referrals

Association job boards

Job postings in professional journals

Other

68%

63%

59%

59%

44%

28%

24%

9%

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The top-three strategies companies focus on to attract and retain talent

Does your company offer carrer paths?

70%

YES30%

NO

79%

% of Total Response

Being an employer of choice

Providing comprehensive benefits and rewards

Offering training/learning opportunities

Giving market-competitive compensation

Establishing clearly defined career paths

Maintaining a diverse culture

Building the position/hiring practices

Providing strategic onboarding practices

59%

56%

55%

24%

15%

11%

0%


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Psychological and Other AssessmentsWe were interested in learning if companies were still using or planning to use psychological and/or other assessments as part of their hiring

strategies. Sixty-five percent of respondents said that they used job knowledge tests as part of their selection process, an increase of 13%

since 2007. This was followed by personality profiles such as Myers-Briggs®, DiSC or the Predictive Index (49%), integrity/ethics surveys

(43%) and work/job samples (26%).

Job knowledge tests directly measure the knowledge and skills needed to perform job tasks. These tests are based on an analysis of the tasks

that make up the job. Job knowledge tests can be constructed to measure knowledge of machine operation, budgeting, scheduling or any

other knowledge needed to perform the job. Job knowledge tests are best used for applicants who have some on-the-job experience and

serve as useful selection, promotion and placement tools.

Organizations conduct employment testing to help select, promote or place employees with the goal of predicting future job behaviors and

choosing the best applicants in terms of their future job performance. Traditional hiring practices include examining résumés, checking

references and conducting interviews. The subjective nature of evaluating résumés and answers to interview questions makes these prac-

tices less reliable, and the legal ramifications for employers providing references has made these methods less useful. Including an objective

measure of performance, such as a psychological assessment, in combination with other recruitment tools, can greatly improve a company’s

chances of hiring the right people.

Does your company use any of the following assessments as part of the interview/hiring process?

6%

% of Total Response

Job knowledge (e.g., financial, technical, industry)

Personality (e.g., MBTI, DiSC, Predictive Index)

Integrity/ethics

Work sample/job sample

Customized assessments

Interview by a third party

Other

65%

49%

43%

26%

21%

14%

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Establishing an Ethics CultureThe construction industry has an image problem. In 2004 FMI conducted a survey of 270 owners, architects, construction managers con-

tractors. Sixty-one percent of survey respondents thought that the industry was “tainted” by unethical acts. Furthermore, it was noted that

there was a systemic failure within the industry to prevent unethical behavior: 84% reported that they had experienced, encountered or

observed construction industry-related acts or transactions that they would consider unethical in the past year. Most of you would agree

that this perception has not changed much in seven years. The economic downturn has only made it worse. More companies are living in

the “gray,” pressing beyond their own ethical comfort zone just to stay in business. Apparently, the potential for financial loss or gain is a

strong incentive for companies, and the individuals within them, to take a detour from the ethical, straight and narrow way. The fact is that

no one “wins” when ethics are violated. An individual company’s near term gain only hurts the industry at large, and, worse, it forces many

more to compete at a lower common denominator. This kind of competition will only continue to bring the whole industry down. The

challenge going forward is to establish clearer ethical standards for the industry and use them to elevate our reputation. We all need to do

something to change the perception of the industry we are responsible for. We are guilty by association, unless we can start to PROVE that

the construction industry, our industry, is ethical.

Making ethics tangible FMI spoke with 20 CEOs and compliance managers at leading design and construction firms to establish a picture of the ethics and compli-

ance initiatives currently in practice. Interviewees had in some cases been with the same firm for decades and were associated with long-

established ethics programs; in others, they were shaping a relatively new ethics program. It is worth noting that all participants reported

ongoing refinement of their corporate policies and practices regarding ethics, and that all had fashioned the associated collateral – code of

conduct, code of ethics, employee handbook, training modules, scenarios, etc., through a largely internal process.

Following is a list of best practices FMI has extracted from the interviews:

� Ethics starts at the top – the leader must champion ethics policies, practices and attitude.

� Keep your ethics policy simple and tie it back to key values.

� Get buy-in from everyone in the company.

� An ethical culture starts with hiring the right people.

� Ethics can be taught.

� Review, monitor and report ethics behavior.

� Take action on ethical violations.

Ethics policies are rarely mentioned when contractors speak of their success, though ethics has become a defining issue for the design and

construction industry. Driven in part by regulatory pressure, ethics programs are gaining prominence within firms whose leadership have

made it a priority and throughout the industry, supported by associations like the Construction Industry Ethics and Compliance Initiative

(CIECI), the ABC and the AGC. The establishment of “effective” ethics policies also provides strong evidence that the company is striving

to be ethical, and that, in turn, raises the bar for the industry. It also provides a passive defense against undetected incidents of unethical

behavior and reduces company liability when an ethical breach occurs. Companies need to start talking more about their ethical successes

and begin to do more to prove that they truly care about being ethical.


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Specifically, ethics and compliance programs must begin by:

� Establishing standards and procedures to prevent and discover wrongdoing

� Providing for periodic risk assessments

� Ensuring corrective measures are carried out

� Promoting periodic communication and awareness of the ethics code

� Providing an effective training program for ethics education

� Providing and advertising an anonymous hot line for reporting breaches of conduct

Most firms use a combination of a code of conduct, ethics and compliance policy, and annual training to communicate the basics of their

ethics program to their employees. It is FMI’s experience that the greatest return on investment is realized when the program is embedded

in the corporate strategy. Your company’s safety program is probably a good model to copy. Like safety, your ethics programs must eliminate

and mitigate risk. A program that calls attention to company goals, clarifies the company’s direction and issues clear directives for staff can

be galvanizing, especially during times of thin margins, reduced backlog and low morale. These policies are not just for the executives of

the company, but they need to be pushed down and reinforced all the way down to the field level and beyond, just like safety is today. It

is not just a moral issue. It is a business decision. There are real dollars associated with unethical behavior. Tangible losses take the form of

fines and litigation. Intangible losses are the result of a bad reputation and are realized over time in the form of higher subcontractor costs,

rejected change orders and lost opportunities. Ethical violations are costly. A great ethical reputation is priceless.

Breathing life into these programs so that ethics permeates the culture of a company is the true challenge and test of superb leadership. The

firms that make the commitment to build a vibrant ethical culture will take the first steps toward countering the negative perceptions that

others might have about their company and the industry as a whole. They will also pave the way for other companies to create formal ethics

programs, thus raising the bar for the entire industry.

Does your company have a formal code of conduct in place?

YES NO This is BeingConsidered

81%

12%7%

% of Total Response

YES NO This is BeingConsidered

67%

20%

12%

% of Total Response

Does your company have a formal ethical compliance program in place?

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Core CompetenciesWe asked respondents to rank the top-five core competencies that are most predictive of success in their organization. Effectively commu-

nicating was the top-ranked core competency, followed closely by leading others, operations, strategic thinking and business development.

We also wanted to know which competencies were the hardest to develop for field managers, project managers and senior managers.

For field managers, effectively communicating, strategic thinking, coaching and mentoring, and leading others were the top-three competencies

hardest to develop. The list changed slightly for project managers and senior managers. While effectively communicating, strategic thinking,

and coaching and mentoring were still three of the most difficult to develop core competencies, business development also topped the list.

It is not surprising that effectively communicating, strategic thinking, and coaching and mentoring others were the common denominators

among the three groups. In particular, effectively communicating envelops every other competency on the list. It is essential to building

relationships, and one’s ability to communicate ultimately determines job success.

Top-Five Core Competencies That Are Most Predictive of Success

EffectiveCommunication

LeadingOthers

Operations StrategicThinking

BusinessDevelopment

48%

Most Predictive

36%

17% 14% 12%

Communication StrategicThinking

Coachingand

Mentoring

LeadingOthers

TeamBuilding

98%

Most Difficult

75%

62%

50% 50%

Top-Five Most Difficult Competencies to Develop for Field Managers

Field Managers


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Top-Five Most Difficult Competencies to Develop for Project Managers

Project Managers

Communication StrategicThinking

BusinessDevelopment

Coachingand

Mentoring

LeadingOthers

82%

Most Difficult

77%74%

66%

58%

Top-Five Most Difficult Competencies to Develop for Senior Managers

Senior Managers

Coachingand

Mentoring

StrategicThinking

Communication BusinessDevelopment

LeadingOthers

78%

Most Difficult

77%72%

63%

47%

Strategic Thinking vs. Strategic Planning Highly successful strategy flows when a company understands its core values and purpose. While many organizations develop a strategic

plan every three to five years, great leaders integrate strategic thinking into their everyday decisions and actions. This relationship between

strategic planning and strategic thinking is significant, but often misunderstood.

Strategic PlanningDoes a strategic plan really create value? We know from our experience in the industry that those firms that take the time to think about the

long-term future facing their organizations tend to achieve superior financial performance. However, is it the strategic plan itself that drives

these organizations into viable opportunity areas, or is it actually the leadership teams’ ability to think strategically that guides their firms

to the top?

To succeed in the construction industry, a leadership team must be excellent negotiators, skillful at the systematic management of business

and project processes. Unfortunately, the process-oriented nature of our industry often relegates development of strategy itself to a process

exercise that, once completed, has limited impact on the success of the company.

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Strategic Planning: Limitations and PitfallsThe labels “strategy” and “strategic” mean different things to leadership teams across our industry. Many executives view strategy formation

as a process that results in a plan document with some good ideas, but those executives do not expect to find game-changing solutions to

the long-term challenges their organizations face.

The strategic planning process is further challenged when it becomes so routine and tactically oriented that the participants involved do

not stretch their thinking. Often, participants act to avoid controversy and conflicting ideas when engaging in the process. Their thinking

becomes the status quo, and few strategic insights emerge.

How does an organization avoid simply going through the motions of strategic planning? Great strategy drives value in construction firms

in many ways. When done thoughtfully and intentionally, a strategic plan aligns the time, energy and attention of an entire organization

toward opportunities supporting the firm’s collective aspirations for the future. Another less celebrated function of the strategic plan is in-

forming leaders what not to do, what markets they should stay out of, projects to pass on and opportunities to let go.

Strategic Thinking DefinedHow do the best firms arrive at the foundational elements of their strategies? The answer lies in strategic thinking. One of the key value

drivers that we have discovered through these myriad interactions is that the most effective organizations have strategic leaders who:

� Compile, analyze and organize information and market intelligence in a way that supports fact-based decision making.

� Think dispassionately and objectively about the factors and forces shaping the business environment in which they operate.

� Focus and rely on both instinct and market intelligence, which allows them to spot market patterns and opportunities in advance

of the competition.

� Challenge the status quo and continually seek to incorporate outside insights into their view of the future.

� Solicit input and insight from key stakeholders in their organizations and use this information judiciously to look for gaps between

internal perceptions and market realities.

One common misperception about strategic thinking is that great leaders solely use instinctive "gut feel” to make strategic decisions. In fact,

the most effective strategic thinkers combine intuition, developed through years of experience, with the highly rational ability to scan the

environment for data, revealing patterns that uncover opportunities others do not see.

During the boom years, many industry firms found themselves confusing their ability to ride an industry wave with the ability to think

strategically about their company and markets. The sinking tide of our national great recession has exposed many of these companies, and

many more will be exposed as the construction industry adjusts to a permanently changed environment. The organizations that will not

only survive, but also prosper in our new normal are those that are investing deeply in developing strategic thinking in the next generation

of leaders.


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Hot Trends in TrainingOver the past few years, we have looked at some of the latest trends in training and development and have highlighted topics such as

blended learning, online coaching, simulations and mini-360 feedback, just to name a few. This year we offer some insight as to how the

industry has changed since the recession.

Outsourcing and SpeedIn years past, construction firms hired training companies to create comprehensive training plans for their companies. These types of pro-

grams will become less popular, as many companies have brought training back in-house; however, we will see more selective outsourcing

around specific training processes, topics and technologies.

On the other hand, time is money. People want information fast, and companies want employees who are peak performers faster than their

competitors. Considering the increasing competition for work, speed to market is even more critical to the success of a business. How fast

can you get relevant content developed and available to learners? How fast can the learner then have access to the content? How fast can you

get him or her from the learning stage to the expected performance level? These are all questions that companies will need to think about

in the next year, and they may need help implementing a strategy.

ChunkingLearners are demanding training content that is easier to consume, read, interpret and apply. Creating content will be less about packing

a “course” and more about delivering information just in time. As a result of the Internet, people want information in smaller, consumable

chunks that answers their questions when they need answers. Resources such as articles, press releases, white papers and competitive re-

search reports, in addition to short Web-based training modules, will see increased demand.

Web 2.0According to Jobville’s 2010 Social Recruiting Survey, 73% of employers are using social media sources, such as LinkedIn, Facebook, Twitter,

YouTube, Podcasts, instant messaging and blogging, to recruit. These applications, commonly referred to as Web 2.0, were not developed

for learning purposes; most people use these applications for social purposes, such as gaming and communication. However, the basic

mechanics behind social media are very similar to those in high-end Content Management Systems (CMS). Therefore, we will continue to

explore ways to utilize social media in the context of training. We can already think of social media as an extension of our current commu-

nications etiquette. Learning portals will no longer be a place just for tracking, scheduling and reporting of training activities, but a place

for collaboration and conversation.

The biggest question for most construction firms is, How is social media relevant to my business, and how do we start using it? Organiza-

tions must start by implementing a strategy:

� Decide your objective. Establish a few social-media-related goals.

� Identify a champion. If you want to be successful with social media, someone has to lead the way.

� Consider your employees. Update your communications policy to include social media (computer, email, Internet,

blogging, etc.) and offer training for employees.

� Invest in technology. Consider bringing laptops into the field or utilizing smart phones. Make technology accessible.

Experiment with using social media for recruiting, training and other company projects.

� Be transparent. This is the hardest part, but the greatest reward. Social media builds relationships. Relationships have

influence. Influence grows your business and your brand. Brand grows your market share.

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Training Budgets and ExpendituresWe asked how many people prepared a yearly budget for training activities and 81% indicated that they did. This number has slightly decreased

from our 2007 results (82%). We also asked what percentage of your company’s payroll was spent on training, and this came to 3.3%.

According to the American Society of Training and Development’s (ASTD) 2010 State of the Industry Report, the 3.3% figure is slightly

higher than what other U.S. companies are spending. In the ASTD Report, training expenditures were determined for three groups of

respondents – those who responded to their survey (Consolidated), large Fortune 500 companies (Forum) and organizations from their

Best Awards program (BEST). As the chart below shows, ASTD projected that companies would spend between 1.91% and 2.15% of their

payroll on training in 2009, which is slightly less than what we are seeing in the construction industry. However, we expect these numbers

to increase slowly over the next few years as the market continues to recover.

Average Direct Expenditure as Percentage of Payroll (Without Benefits and Taxes)

2002 2003 2004 2005 2006 2007 2008 2009

2.4

7 %

2.0

5 %

2.2

0 %

2.8

6 %

2.0

9 %

2.7

2 %

2.2

0 %

2.9

7 %

2.7

0 %

2.1

9 %

2.1

6 %

2.3

3 %

1.9

1 %

2.1

5 %

2.2

2 %

2.3

1 %

2.3

2 %

2.3

3 %

2.1

5 %

2.2

4 %

2.1

4 %

ConsolidatedForumBEST


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Does your company prepare a yearly budget for training activities?

81%

YES

19%

NO

How has your training budget changed as a result of the Great Recession?

73%DOWN

27%UP

How much does your company spend annually PER PERSON on training for each of the following employee groups?

Average Spent Per Person

Trade/Craft Personnel

Field Management Personnel

Project Management Personnel

Senior Executives/Business Development Personnel

$7,040

$7,252

$11,333

$12,098

However, when we asked how your training budget has changed as a result of the “Great Recession,” we found that 73% of companies have

decreased their budget.

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Hours of TrainingWe asked how many hours of training per person were provided annually to senior executives, project managers, field managers and trade/

craft personnel. The actual time spent in training for each group ranged from four to 22 hours per year. This is below the average published

in ASTD’s 2010 State of the Industry Report, which for BEST companies reported an average of 32 hours per employee.

How does your company determine individual training and development needs?

One of the most important responsibilities of all managers is to ensure a productive workforce by providing continuous development of all

employees under their direction. This includes the ongoing ability to meet changing work requirements on a just-in-time basis. In 2007

results indicated that 86% of respondents determined their training and development needs based on individual requests. Since then,

results have shifted, with a direct focus on performance. Seventy-six percent of those surveyed this year, an increase from previous years,

indicated that they determined training and development needs for their employees through performance appraisal discussions. Seventy-

five percent of the respondents were determining these needs through managers’ observation of job performance. We found that employees

may not always be aware in which areas they need further development, nor are they aware of how their training requests coincide with

overall business strategies and organizational needs. Therefore, we believe this trend in determining individual training and development

needs is positive.

On average, how many hours of leadership training do the following positions get per year?

Project ManagementPersonnel

20

16

4

Field ManagementPersonnel

Trade/Craft Management

Personnel

22

Senior Executives


22


Measuring Training ResultsCompanies must recognize the importance of continuously evaluating their training. How does an organization know if its training and

development objectives and goals are being met and having an impact on the company’s bottom line, if it is not measuring the effectiveness

of those initiatives along the way? Companies should measure their effectiveness in producing the learning outcomes specified when the

training was planned and indicate where improvements are necessary to make the training even more effective the next time it is needed.

Several years ago, we explored the use of Donald Kirkpatrick’s four levels of evaluation, adding a fifth level to include the return on invest-

ment in training dollars.

Level 1: Reaction – How did the participants feel about training?

Level 2: Learning – What knowledge, skills and/or attitudes (KSAs) did the participants gain as a result of training?

Level 3: Behavior – Have the participants applied what they learned on the job?

Level 4: Results – Did the training and transfer of training impact the company’s performance?

Level 5: Return on Investment (ROI) – Was the training worth the cost?

We asked survey respondents what metrics their company uses to evaluate the effectiveness of the training you provide. Forty-one percent

of respondents indicated that they were monitoring reaction to the training programs through program evaluations, which is important,

because if participants do not respond positively to the event, they will probably not be motivated to learn beyond. Thirty-six percent of

respondents are evaluating the effectiveness of training through the assessment of new skills and knowledge gained during the training

76%

% of Total Response

Through performance appraisal discussions

After observing job performance

As a result of individual requests

Through informal discussions with managers

As part of the overall business planning process

From the results of 360 degree feedback

Through review of learning needs following organizational change

Through data analysis from performance appraisals

From formal written or electronic surveys

Other

75%

72%

61%

44%

28%

22%

16%

11%

1%

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program. There are a variety of ways to obtain these types of metrics, such as pre- and post-tests, observations and input from supervisors.

Unfortunately, it is much harder to measure whether training has an impact on organizational performance (in any industry), as proven by

our results indicating that 40% do not track ROI for training. ROI is tricky to measure, due to the many aspects of training to be taken into

account, some of which are very difficult to quantify at all, especially in precise financial terms. The actual cost of training may be easier to

identify, but the benefits are often harder to pin down.

Organizations are under increased pressure to justify all of their expenses. Because they invest in the training and education of their em-

ployees, they expect a return on their investment. Training initiatives should produce the desired learning outcomes, or else they are not

favorable to the organization as a whole and need to be either remodeled or discontinued. We then asked how your company tracks the

return on investment for employee training. The good news is that 43% of those surveyed are looking at changes in job performance before

and after training, thus measuring Kirkpatrick’s third level of evaluation.

41%

% of Total Response

Program evaluation

We do not track ROI for training

Assessment of new skills and knowledge gained during the training program

Impact of new skills and knowledge on company performance

Transfer/implementation of new skills and knowledge of the job

Return on investment of training dollars

Other

40%

36%

35%

29%

7%

1%

43%

% of Total Response

Changes in job performance before and after training

Employee satisfaction surveys

Employee turnover

Knowledge tests

Needs assessment for later re-training

Speed of internal promotions

Other

38%

26%

11%

9%

7%

6%

Which of the following metrics does your company use to evaluate the effectiveness of the training you provide?

How does your company track the return on investment of employee training?


24

Job Descriptions, Performance Standards and CompensationWhen we asked, “What are your company’s three main reasons for creating job descriptions?” 69% of respondents cited “Establish Perfor-

mance Standards” as the main purpose. See the following chart:

We would like to explore the relationship connecting job descriptions, performance standards and compensation.

Job Descriptions

Job descriptions fulfill several functions:

� Provide realistic job previews and general duty descriptions for job postings

� Allow external matching for salary survey benchmarking

� Define important skill-based performance dimensions

How important are job descriptions, and who should write them? It would seem that writing job descriptions is generally an unpleasant

task, assigned to a summer intern. However, our survey results revealed that department/division heads are mostly responsible for writing

job descriptions, followed by human resources and direct supervisors. Note that only 4% of companies do not have job descriptions.

What are your company's three main reasons for creating job descriptions?

69%

% of Total Response

Establish performance standards

Organizational structure and design

Establish career paths

Assign employees to appropriate jobs

Succession planning

Recruiting

Legal defense

Salary survey exchanges

We do not have job descriptions

Other

55%

52%

38%

18%

17%

10%

9%

5%

5%

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Incumbents, who know their daily tasks best, write about 16% of job descriptions. Be cautioned that assigning job description writing as-

signments to incumbents may result in voluminous prose to justify all critical tasks that the incumbent performs. Perhaps this is why mostly

managers write job descriptions: Their point of view may contain desired job dimensions beyond those exhibited in current incumbents. In

addition, companies create many job descriptions in time of need, like last-minute job postings or performance reviews.

What are the key characteristics of job descriptions? Most job descriptions should contain the following elements:

� Job title

� Job summary

� Fair Labor Standards Act (FLSA) status

� Reporting relationships

� Principal duties and responsibilities

� Minimum qualifications

� Working conditions

� Disclaimer

� Date created

� System identifier number

The listing of job duties should summarize the top-10 to -15 responsibilities and does not have to be an exhaustive list of every task. You can

find construction professional, engineering, design and executive job summaries at www.analytical-consulting.com and craft job postings

that contain descriptions at www.birddogjobs.com.

Who is responsible for writing/updating job descriptions?

65%

% of Total Response

Department/division heads

HR personnel

Direct supervisors

Job incumbents

We do not have job descriptions

Other

64%

48%

16%

4%

4%


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Performance StandardsGood managers direct the work of their employees, set performance

standards and provide progress corrections and, ultimately, feedback.

There is a management myth that the best managers are “hands-off,”

empowering and do not interfere in the work of their employees. The

reality is quite the opposite. The best managers communicate with their

employees every day and stay immersed in the work. This is not mi-

cromanaging. Micromanagers insist on one way of doing things and

act as puppeteers to their workforce. In a healthy working manager/

subordinate relationship, a focused manager can provide direction and

still allow employees to decide the best way to accomplish tasks.

It is said that people leave managers, not companies. Bad manage-

ment is endemic because most managers have never received training

on how to manage. A stellar employee can become an incompetent

manager quite easily. Picture the new manager who judges employee

performance on how he or she used to do the job instead of comparing

to performance standards. A downward spiral can result when a com-

petent employee is unable to meet the invisible performance standards

of the new manager, who is comparing the employee to the manager’s

own methods and speed of completing work. At some point, the man-

ager gives up and converts from supporting the employee to finding

ways to remove the employee. In kind, good employees may retaliate

against the manager by giving up, doing minimum work, transferring

out of the department or reporting the manager to human resources.

In a worst-case scenario, good employees leave the company and join

your competitors. If the employee does not provide candid feedback

in an exit interview, the company might believe that competitors are

offering more money, when the real problem is management. Then the

cycle repeats.

Job descriptions can assist managers and are effective tools for defining skill-based performance dimensions. Why does the job exist, and

what are the key tasks that need to be completed? A job description can answer these questions. How much work and how fast does it need

to be done? A manager can provide clarity to these questions, based on the project at hand.

If there are strategic company objectives, these objectives should manifest themselves in the job description and performance dimensions.

For example, if safety is a core value, then one of the job description items could be, “Maintain safe work environment at all times by uti-

lizing company-provided safety equipment, reading Material Safety Data Sheets (MSDS) and reporting all accidents and spills.” In other

words, “Wear your helmet, read the directions first and tell the boss when there is a problem!” A good performer will read this and act it out;

a good manager will reinforce these behaviors and remind employees of lapses, and good performance will be maintained. Note that written

standards do not carry meaning if a manager does not reinforce and coach to these standards. These standards must be demonstrated daily,

not only at an annual performance review.

Link to CompensationThe foundation of job duties is the job description, and performance standards tie to these descriptions. Managers reinforce performance

standards, and employees perform. Cash compensation (or lack of) is the reinforcement to the employee for performing to standards.

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Unfortunately, the merit increase is the blunt tool used most commonly to “pay for performance.” With merit budgets averaging 2 to 3%

these days, there is not much room to differentiate performance. FMI’s 2010 Salary Increase Survey showed that low performers received

an average merit increase of 2.6%, and high performers received 3.8%. That spread is not enough to distinguish high performers from low

performers. In behaviorist terms, the system lacks a penalty for shirking job responsibilities and lacks significant rewards for stellar perfor-

mance. In the end, employees may view merit increases as cost-of-living increases to keep up with inflation.

General increases provide the same annual salary increases to an employee population, regardless of performance. For example, all salaried

employees receive a 3% annual increase. See earlier comments about “lacks a penalty and lacks significant rewards.” At least this reward

system is honest and does not attempt to distinguish performance with a shallow rewards budget.

The best tool today to distinguish performance is an incentive compensation plan. Incentive compensation is a powerful tool because target

incentives are significant, can have significant upsides and, therefore, can provide significant rewards to top performers. There is typically

a funding mechanism, and performance measures can be tiered at the corporate, business unit and individual level. When constructing

incentive plans, we use the following design principles:

� Include no more than three general performance measures (individual measures can consist of an “index” of measures)

� Include no less than 20% weighting on any single performance measure

� Weight the individual performance measure the most

� Assign target incentive awards utilizing market data vs. assigning the same target percentage to all jobs

For example, while entry-level employees might have a 5-8% target bonus, a midlevel project manager may have a target bonus of 10-12%.

The power in these plans is in the leverage of the plan. A target incentive award at 10% can become a 20% award at excellence levels of

performance. Therefore, a high performer could earn 20% if the company and the individual exceeded goals. Poor performers might earn

only the company portion of the bonus or even nothing. The advantage to the company is that incentive earnings are one-time payments

and do not increase fixed costs permanently, as merit budgets do.

Although job descriptions, performance standards and compensation are intricately linked, each should be addressed separately and then

compared to assure they are consistent with company policies.

Talent Development PracticesWe asked what practices your company used in the past year to increase employee performance and development. Looking at the top-five

responses to the question, more than 50% of respondents conducted annual performance reviews, held formal in-house classroom training

and formal classroom training by outside vendors, conducted personal development plans and provided Web-based training.

Annual Performance ReviewsEighty-three percent of the respondents said they conducted annual performance reviews with their employees, consistent with previous

years’ surveys. These reviews are critical and help to develop individuals, improve organizational performance and feed into business plan-

ning. Beyond the performance review, a performance culture is one in which employees are motivated to perform at the highest levels of

their ability, with resulting excellence in organizational outcomes. Assuming that you are hiring and retaining employees who possess ad-

equate skills and fit the culture, there are three primary components to developing and nurturing a performance culture, including:

� Setting clear, realistic expectations

� Providing feedback regarding how effectively people are meeting those expectations

� Ensuring appropriate consequences for behaviors and/or outcomes


28

When asked what type of performance evaluations their employees receive, nearly two-thirds of respondents indicated using supervisory

ratings, and more than 50% are using informal meetings between employee and his or her supervisor or mentor. Either way, the perfor-

mance review process should not be viewed as a discrete event that is provided to an employee by a manager at year-end, but rather as a

continuous cycle, equally owned by both individuals that should be revisited at key intervals during the year. The goal of such continuous

conversations is that neither participant will be surprised at the annual assessments communicated at the end of the performance period.

Many supervisors find it helpful to hold regular informal meetings throughout the year, so that management is better-informed, training

and development needs are more quickly identified, and lines of communication stay open. And, if the employee is exceeding expectations,

new goals may be set then.

TrainingInterestingly enough, formal training conducted in-house and by outside vendors made the list of top-five ways companies plan to increase

employee performance and development. These two did not make the list in previous years, but we are excited to see them back on the list,

as many companies took a break from formal training programs due to the economy. According to the American Society of Training and

Development’s (ASTD) 2010 State of the Industry Report, although many companies across the country faced some of the worst economic

conditions in recent history, business leaders continued to dedicate substantial resources to employee learning and development in 2009.

In fact, they estimate that U.S. organizations spent $125.88 billion on employee learning and development. Nearly two-thirds of that total

was spent on internal learning while the remaining amount was allocated to external services.

Personal Development PlansEmployees at more than 50% of the companies that responded to the survey are creating personal development plans. The personal devel-

opment planning process is an extension of the performance review process in that it allows the manager and the employee to identify and

advance towards reasonable developmental goals necessary for his or her personal and professional growth. One of the advantages of these

plans is improving performance and enhancing knowledge by promoting a climate of continuous learning and professional growth. Some

employers use them as part of the performance review process, while others keep personal development plans separate. Personal develop-

ment plans give employees the responsibility for their own personal and professional development by allowing them to monitor and guide

their careers. They enable an employee to look at where they are now, where they want to be, and how they can get there.

Web-Based TrainingA remarkable 50% of companies who responded to this year’s survey plan to offer Web-based training over the next year to increase em-

ployee performance and development. Web-based learning has become increasingly popular over the past few years as companies begin to

realize the benefits, including reduced travel expenses, less time away from the job and just-in-time training. To take Web-based training,

all you need is a computer, a Web browser and access to the Internet via wireless or high-speed connection.

Certain topics are more conducive to learning through a self-paced, Web-based delivery format. They do not require as much interaction

with others as do some management and leadership subjects. Unfortunately, there are still obstacles to effectively delivering Web-based

training in the construction industry.

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Which of the following practices does your company plan to use in the next year to increase employee performance and development?

83%

% of Total Response

Annual performance reviews

Formal in-house classroom training

Formal classroom training by outside vendors

Personal development plans

Web-based training

Coaching

Regular meetings of the entire workforce

Mentoring programs

Team-building activities

Continuous professional education (CPE)

Profit sharing for nonmanagerial employees

Peer review/360 degree feedback

Professional/executive coaching

Job rotation/cross training

Staff attitude/climate surveys

Train-the-trainer training

Action planning (individual)

Developmental work assignments

Action planning (team)

Knowledge or skill-based pay

Self-directed teams

Group or team-based compensation

Other

54%53%

51%

50%46%

44%

44%44%

38%

33%

30%29%

28%

27%25%

24%22%

15%

12%

10%

6%

1%


30

Which of the following is your company using to mange the performance of your employees?

30%

% of Total Response

Routine performance evaluations

Employee involvement in training anddevelopment opportunities

Incentive compensation

Structured coaching/mentoring programs

Career path planning

Professional development plan for each employee

Other

20%

11%

20%

11%

7%

1%

What type of performance evaluations do your employees receive?

74%

% of Total Response

Supervisory ratings

Informal meetings between employee andhis/her supervisor or mentor

Collaboration between employee and his/hersupervisor on a professional development plan

Objective measures (e.g., costs, time, etc.) oftheir performance

360 degree multi-rater performance appraisals

We do not currently conduct performanceevaluations for our employees

Other

58%

34%

44%

28%

4%

2%

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Emotional IntelligenceAs the United States and global economies struggle to break free from the challenges of the credit crisis that began in 2008, companies are

looking for new and innovative ways to attract, train and retain the necessary top talent. Participants in the FMI Talent Development Survey

identified strategies to sustain and grow their talent capabilities that hinge on a critical leader competency: emotional intelligence. The term

emotional intelligence often garners strange looks from the ranks of experienced leaders within the construction industry, but once leaders

understand what emotional intelligence is, the skill set is recognized as a critical need within firms. Emotional intelligence can be stated

as an individual’s ability to recognize and leverage emotions to achieve necessary goals. Simply stated – people skills. If your organization

works with people, then this topic is important to you.

Almost everyone working in the construction industry longer than a day has experienced the pressure that results from the convergence of

demands on schedule, price and quality. Without a doubt, construction is a highly competitive industry; leaders at every level are forced to

respond to demands that push them to the breaking point. Leaders who have difficulty managing emotions or lack sensitivity to the emo-

tions of others inevitably have an adverse effect on the teams they lead. The inappropriate responses can vary widely from leader to leader,

but may include explosive outbursts, unproductive comments and isolation. These types of responses are typical of leaders struggling with

developing their emotional intelligence skills.

Employer of Choice Anyone?Most respondents to the FMI Talent Development Survey identified “Being an employer of choice” as the key strategy to attracting and

retaining talent. If an organization’s employees are forced to deal with leaders inside the organization who cannot effectively manage their

own emotions in this demanding environment, then how can the organization claim to be an employer of choice? Marlin Company’s 2007

Attitudes in the American Workplace poll found that “Nearly 20% of U.S. workers are aware of a threat or verbal intimidation. Eleven per-

cent report being aware of an assault or violent act, which is up from 9% in 2000.” (The Marlin Company, 2011).

It is more important today than it has ever been for leaders to clearly define what behavior is acceptable and what behavior is not acceptable

from members of the organization, particularly for the leadership team. The adage that people do not leave companies, they leave managers

is appropriate today, and top talent will always be able to find a job at another firm if they are dissatisfied with how they are treated in their

current organization. Outlining behavioral boundaries and setting the example is one of the best ways to prevent problems before they arise

by identifying guardrails to keep leadership consistent and positive throughout the organization.

Looking for a Few Good LeadersAs more companies promote internally to prepare for the changing workforce and strive to be employers of choice, the pool of top-tier talent

is likely to decline. It will be critical for companies to identify, select and develop internal candidates to maximize their potential for greater

levels of responsibility. A key component of that development will be in skills related to leading and managing people.

Respondents to the survey identified the top-two core competencies that are predictive of success as effective communication and leading

others. Both of these core competencies are dependent on a leader’s people skills. The skills necessary to prepare for any communication

come from the emotional intelligence skills, such as empathizing, recognizing critical relationships, understanding conflict and exercising

self-restraint. Leading others is dependent on an individual leader’s ability to manage the relationships of people to gain more as a team

than each person could do individually. Striving to increase performance among the team members requires a great deal of interaction, and

the effectiveness of that interaction is dependent on how the individuals work together. Effective teamwork relies on individuals and lead-

ers within the group maintaining an understanding of the social situations and actively managing the relationships to achieve the positive

results.

Effective communication and leading others are not only the top-two skills predictive of success, but also two of the top-five skills identified

as the most difficult to develop in team members. Strategic thinking, coaching and mentoring, and team building are the remaining three.

One extremely insightful comment from a survey respondent highlighted the importance of assessing a leader’s emotional intelligence: “We

work hard at identifying and helping our people develop their Emotional Intelligence. This concept is, in our view, the most reliable predic-

tor of success.”


32

Daniel Goleman argues in the book “Primal Leadership”

that emotional intelligence is a better predictor of suc-

cess than intelligence, because intelligence is screened at

so many levels. People must demonstrate intelligence in

school to be successful. Intelligence is necessary to learn

well on the job and perform technical tasks. Because

intelligence is easy to assess when a person is early in

his or her career, other skills become the discriminators

between successful and highly successful individuals.

However, early in a person’s career, he or she is typically

an individual contributor, having to get along with one

or two other people who are typically a boss or supe-

rior. The direct-report relationship generally expects the

employee to work within the rules given. As that person

is promoted and developed, the necessary people skills

become more important and those who have stronger

emotional intelligence skills rise above their peers be-

cause they have an additional beneficial skill set that the

company can rely on to produce results.

Even though the core competencies of emotional intel-

ligence or people skills are often identified as the most difficult to develop, as indicated by the respondents in the FMI Talent Development

Survey, they are critical and well worth the investment. Building an individual’s capabilities to lead and manage people with emotional

intelligence will promote an organization’s goals to become or remain an employer of choice as well as develop internal succession talent.

Developing Individual Leaders With Emotional IntelligenceThe first step to establishing an environment which fosters a leader’s

growth and development in emotional intelligence is to establish a per-

sonal and organizational understanding of self-awareness. FMI’s Center

for Strategic Leadership developed the Peak Leader Model to assist lead-

ers in understanding behaviors they should exhibit to achieve peak per-

formance. At the center of the model is World View, which is defined as

a set of beliefs and assumptions we hold consciously and unconsciously

about how the world operates and how we operate in the world. An in-

dividual’s experiences have contributed to his or her World View.

If a leader exhibits a behavior such as losing control of his or her emo-

tions in stressful situations, attempts can be made to correct the behavior

with feedback or training. While this type of training is often successful

for technical skills, it is typically less successful with behavioral skills and

emotional intelligence. However, if the individual can become self-aware

of the cause of this behavior, then he or she can intentionally tackle the

primary issue that causes the unacceptable behavior. The outer layer of

components of the Peak Leader model contain the leadership behaviors

that an individual exhibits when he or she is leading at his or her peak.

LOW

Management Skills

Interpersonal Skills

HIGH

Imp

ort

an

ce

Field Level Executive Level

Technical Skills

HIGH

RelativeImportance of Skills

Direction Strategically

W

ithin

T

alent

Follow Through

on Others and Inspire

Resou

rces

Focus Motivate

A

lign

Execute and

Lea

d

Develop Set

Think

Personal Values and Attitude

s

WorldView

PeakLeaders

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Understanding what is at the core of World View is a skill displayed in the Peak Leader behavior of Lead Within. The Lead Within behavior

of the Peak Leader model encompasses the steps necessary for an individual to gain increased self-awareness. Leadership begins with an

understanding of personal mission. What is the primary driver or measure of success for an individual over his or her professional career?

Identifying a personal mission helps to build guiding principles that a leader can use to develop a deeper self-awareness and an assessment

of what current strengths can be leveraged, what weaknesses need to be shored up, and what areas require development for success in his

or her personal mission. Leaders who perform effectively at the Lead Within leadership trait are perceived as stronger leaders because they

act with authenticity and consistency from a stronger sense of self-awareness.

Lead Within

� Self-awareness

Pursue awareness of personal attributes (strengths, weaknesses, leadership effectiveness, etc.) by soliciting feedback

� Personal disciplines

Maintain physical, emotional, financial, spiritual and relational health and balance

Sustain a hopeful and optimistic outlook

Continuously seek opportunities for personal and professional growth

� Personal mission

Create and live by a statement of guiding principles and beliefs informed by personal values, passions,

strengths and empowering vision.

� Personal character

Display honesty, authenticity, integrity and tenacity in words and actions.

� Those who Lead Within perform the following actions: Live by a defined personal mission and stay true to their personal values

Display sincerity and authenticity in relationships

Effectively manage personal stress lever

Demonstrate awareness of personal strengths and weaknesses

Take advantage of opportunities for personal and professional growth

Personal reflection is only one tool that leaders and organizations can use to develop self-awareness. Another critical tool for developing

self-awareness is the effective use of feedback. As leaders progress in nearly any organization, they typically become more isolated and re-

ceive less candid feedback. Without feedback, a leader is limited to what he or she already knows about himself or herself. Any strengths or

weaknesses not already known typically remain hidden longer without the assistance of others, highlighting areas where a leader is demon-

strating effective leadership or where he or she may need to improve. Constructive feedback is based on an observable situation, delivered

in a timely manner and received openly. If a leader can clearly recall the situation that he or she is receiving feedback on, understand how

his or her behavior affected the situation, and is open to exploring alternatives to the original behavior, then the feedback can help a leader

develop into a more effective leader. Receiving feedback also helps a leader develop his or her self-awareness of strengths and weaknesses

to create a more accurate and honest assessment of capabilities.

One tool for feedback is a personal assessment. A common tool is the 360-degree assessment. The 360-degree assessment provides a leader

with feedback from a wide spectrum of interactions – direct reports, supervisors, peers and others who have experience and knowledge of

a leader’s performance. Other assessments, such as the Myers-Briggs Type Indicator, which builds an individual’s awareness of personality

preference and how that affects his or her leadership style and behaviors, can be used to develop self-awareness in particular areas. It is with

this increased awareness through feedback and reflection that a leader has the most opportunity for growth and development, especially in

areas of emotional intelligence where there is no financial report or dashboard metric to rely on to measure performance.


34

Creating the Organizational EnvironmentThe organization can assist in developing emotionally intelligent leaders by performing some of the same activities that individual leaders

are required to perform. The top-performing organizations have a clear understanding of how the organization operates, acceptable behav-

iors and unacceptable behaviors. Strong cultures develop from a deep understanding of what is at the core of the organization. Answering

tough questions, such as why the organization exists and what makes one company different from another, can start conversations that lead

to clearer hiring and promoting decisions and ensure the leadership team is aligned behind a unified culture. Going beyond the company’s

core values, a clearly defined vision of the future and strategic goals can help leaders create inspiration within the organization and develop

a level of emotional influence over the company. Both of these components go into effect at an organizational level to develop a strong sense

of team and shared experience, propelling the performance of the individual as well as the organization to new heights.

Assessing Your OrganizationEmotional intelligence is a critical competency for any member of a team and only grows in importance as the individual progresses through

his or her career and gains greater levels of responsibility. The impact of a leader is multiplied throughout the organization, and that impact

can be positive or negative, depending on the leader’s performance. Are your leaders developing the necessary levels of self-awareness to en-

sure that they reach their full potential? Does your organization have a clear and consistent understanding of what behaviors are at the core

of the company? Leadership is primarily about harnessing the emotions of the team to achieve a goal greater than anyone could accomplish

alone. Without the highest level of emotional intelligence, the chances of reaching your goals are greatly diminished.

References

The Marlin Company. (2011). Poll Results. Retrieved from http://www.themarlincompany.com/site/page/137

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Developing High PotentialsFor the past few years, companies have downsized, right-sized and left-sized to hang on during the down economy. According to the 2009-

2010 U.S. Strategic Rewards Report by Towers Watson, 36% of top-performing employees say their company’s situation has gotten worse

in the last 12 months, and the number who would recommend others take positions within their company has declined almost 20%. The

employees that were left behind have been hanging on, watching and waiting for the job market to turn around. Now that the effects of the

“Great Recession” seem to be receding and employers are hiring, high potentials are considering their options.

Avoiding turnover completely is unlikely, as it is not always easy to increase salaries or benefits. In some cases, a little turnover is welcomed,

especially in the case of low performers. Unfortunately, losing talented high-potential employees can affect the bottom line.

We asked if your company has a formal process to develop high-potential employees? Comments indicate that the process of developing

high potentials exists, but results show that only 38% of companies have a formal process. Furthermore, when asked if this was part of a

structured management succession process, 71% of respondents said no.

The cost of losing talented and high-potential employees should not be underestimated. Companies should certainly be cognizant of the

immediate replacement expenses, including recruiting, hiring and training a replacement, but the long-term cost of losing a high potential

is difficult to calculate. In fact, the true effects of the loss may not be felt for years until it limits the organization’s ability to win work or

conduct business.

Fortunately, there are several ways for construction firms to develop and retain their top talent.

1. Identify the employees worth keeping. Organizations tend to have three types of employees: team players, technical ex-

perts and high potentials (or top performers). Companies must identify their high potentials and tell them that they are valued. In all

likelihood, they know it, others inside and outside of the company know it, and they expect to be treated differently.

2. Create development plans. Leadership development plans should be created at all levels of the organization from field leaders

to senior executives, but in particular for high potentials. These plans should include the competencies required at each level of devel-

opment and a way to measure success along the way.

3. Determine current employee engagement level. Although the main concern here is high-potential employees, compa-

nywide employee morale and engagement are important since they affect the culture of the organization. One way to find out your

current engagement level is by partnering with your human resources department to conduct a companywide employee engagement

survey. These tools can provide useful information regarding commitment to the organization, concerns about advancement, desire

for learning and development opportunities, and the degree to which employees feel connected to the organization.

4. Stretch employee development. In addition to formal and intentional learning opportunities, look for ways to stretch high

potentials on the job. Examples of this might include special projects that take advantage of a unique skill set or temporary assign-

ments that allow the employee to demonstrate competence beyond his or her current position.

5. Make learning a priority. Is development reflected in your company’s core values? If you want to attract and retain top

performers, it has to be. Organizations that value, promote and reward leadership development are much more likely to retain the

employees who are worth keeping.

6. Have informal and regular conversations with your keepers. Don’t wait until the annual performance review to ask

employees how things are going. Regularly meet with your high potentials in a casual environment. What are we doing that’s work-

ing? What can we do to improve? What are you working on right now that makes you excited to come to work each day? What are

you interested in doing next?


36

7. Allow boomerangs. No matter how proactive you are about retaining key employees, every firm loses top-performing employ-

ees. However, goodbye doesn’t have to last forever. Social media makes it easier than ever to keep in touch with company alumni.

Keeping those doors open may mean that a past top performer rejoins the organization at a later date.

Whatever you decide to do, talented employees are just too valuable to let them walk out the door. Best-of-class employers will provide

development opportunities to retain that talent.

What are you doing to develop your high-potential employees?

� “High potentials are identified within the first three to five years of employment. They are given specialized training that exposes

them to different aspects of the business earlier than they would normally receive if allowed to progress through ‘the system.’ This

training spans several years. Candidates are constantly evaluated and removed or added to the program as they progress through

their careers. The benefits of this program are that the person is more quickly identified and developed, and it allows the company

to focus training dollars where the most benefit could be realized.”

� “Identify high-potential people, tell them and then carefully select various work experiences with development in mind, and

promote and increase salary at a faster pace.”

� “Our Talent Management process includes a talent review whereby all employees are ranked and their strengths and weaknesses

discussed, with a development plan then prepared for each individual. This process identifies high performers, and they are

included in a leadership mentoring program, whereby each individual is assigned to a company leader to be mentored for one year

with quarterly reporting on results, things learned, etc.”

� “We have a leadership development program that targets high-potential employees who are part of the succession process. More

than 50% of our current senior management of the company has participated in (or is currently participating in) this program.”

62%NO38%

YES

Does your company have a formal process to develop high-potential employees?

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Succession PlanningThe future for the construction industry will be marked by significant leadership transitions over the next few years. The influence of the

baby-boomer generation (born between 1946-1964) as a dominant force shaping the industry will begin to fade as the boomers gradually

transition out of their roles.

The leadership transition process is a key component of a design firm's leadership-development plan and the firm's overall strategic plan. Yet

the transition from one leadership or management position in the firm to a higher level is often difficult. Leaders- or managers-in-transition

often find that their fondness for familiar duties, perspectives and work habits are hard to let go, hampering their ability to assume new

responsibilities.

Is it part of a structured management succession process?

71%NO

29%YES

76% of owners50 or older planto retire in thenext 10 years

48% of thoseowners are

currently working onsuccession plans

make up 40%of today’s workforce

Babyboomers


38

This phenomenon will continue to cause a surge of challenges and opportunities, including:

� Transferring ownership to a new generation of leaders

� Capturing and embedding the cumulative knowledge of outgoing employees

� Developing intentional, purposeful succession plans

� Growing high-potential employees' ability to lead versus manage and think strategically versus operationally

� Preserving organizational culture so it can be propagated for future generations

� Shaping business models to meet the demands of a volatile and uncertain market

Succession planning is an essential component of a firm’s leadership-development plan and overall strategic plan. The best-performing

companies are those that recognize the coming reality and prepare thoughtfully and intentionally with a line of sight to their envisioned

future. In fact, considering the state of the economy, planning for a smooth transition is even more critical than in previous years. Without

identifying new leaders to fill the gaps of those who resign, retire or are released from their positions, business performance will likely suffer.

For several years, succession planning has been top of mind for many firms within the construction industry. Unfortunately, the economic

crisis threw retirement and leadership-development plans of many construction firms into disarray. Now that the shock is over and recovery

strategies are in place, it is time to put leadership transition plans back on track. In fact, based on the survey results, it is evident that most

companies realize that a failure to move succession plans forward is much too large a risk to gamble. Ninety-two percent of the respondents

said that their organization has a well-defined plan for its executive leaders, an increase of 6%. This was followed by 66% who were planning

for senior managers, 39% for project managers, 21% for field managers and 5% for experienced trade and craft personnel.

Succession planning is an ongoing, systematic process and should be tied to the organization’s strategic plan. In other words, the details of

your succession plan are dependent on what the business wants to be in the future. Succession planning includes identifying, assessing and

developing talent to ensure leadership continuity and must allow for unforeseen and constantly changing business needs. It must reflect the

way a company wants to evolve in the future by aligning with strategic objectives and goals. Careful succession planning now can make all

the difference in retaining key talent and ensuring your firm’s ongoing profitability and success.

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The planning process will differ from company to company, but there are some steps an organization should take to assess its leadership

pipeline, as outlined below:

1. Commit to the plan from the very top and link it to your vision, values and your strategic plan. The

key to success for any succession management program is the support of senior management. Succession planning should be an in-

tegral part of business planning. Establish program policies and priorities, clarify roles of different groups, prepare an action plan and

communicate progress on a regular basis.

2. Identify future leadership requirements. The ability to forecast business and leadership needs, by projecting your future

work requirements, will be necessary to prepare your future leaders. It is impossible to grow talent if you do not know where you are

going.

3. Assess the organization and internal candidates. There should be some system in place, even if informal, to identify

potential future leaders and assess their abilities. This will not only elevate high potentials but also identify any gaps in the organiza-

tion. Assessment can be done in a variety of ways, including 360-degree feedback, performance reviews, personality assessments,

interviews and informal discussions.

4. Generate a list of essential competencies. An organization needs to know what skills and competencies are required by

its leaders in order to succeed. Forming a focus group or committee made up of people throughout the organization is one method

to better understand core competencies and personnel requirements. Another approach is to interview those who currently hold the

leadership positions you are planning for.

5. Provide developmental opportunities. Once you have identified potential leaders and the essential competencies required

for the position(s), it is time to start preparing them for the leadership roles and to begin closing developmental gaps. Development

Develop and implement the

succession plan

1

2

3

4

5

6

7

Commit to the plan from the very top and link it to your vision, values and your strategic plan

Identify future leadership requirements

Assess the organization and internal candidates

Generate a list of essential competencies

Provide developmental opportunities

Evaluate progress


40

can occur in a variety of ways and may include formal mentoring, coaching and skills training. High potentials must be held account-

able for their own development, but it is essential that they be given the time and resources to do so.

6. Evaluate progress. Integrate succession planning into the performance review process. By doing so, immediate supervisors have

important input into the process and are evaluating current-year performance as well as future succession potential concurrently. This

in turn will improve the performance review process by making it more focused and efficient.

7. Develop and implement the succession plan. It is very important to continue evaluating your succession planning pro-

cess to assess how well it is working and to make any necessary changes or improvements. The only way to know whether the plan is

effective is to establish a system to track results. This is especially true for companies that are downsizing or are going through major

changes.

Even if all of these steps are closely followed, leadership transition is never easy. Managers transitioning must make a conscientious deci-

sion to let go of their routines so they can focus on the demands of new responsibilities. People frequently have a desire to take on a new

challenge, but they don’t necessarily want to let go of what they consider familiar tasks. As a result, transitions often take much longer than

necessary, so it’s best to start as early as possible.

Employees Leaving/RetirementThe good news for the companies surveyed is that only a little more than 12% will be losing their top executives in the next five years, and

that number declines when looking at senior managers (9%), project managers (9%) and field managers (11%). However, just over one

quarter of the respondents expect their executives to leave in the next 10 years. These numbers declined slightly for field managers (20%),

senior managers (18%) and project managers (18%).

One thing worth noting is that while millions of baby boomers are eligible to retire this year, many will not be able to because they have

not yet met their financial goals in order to retire comfortably. According to the American Association of Retired People (AARP), many baby

boomers lost money in the stock market, others just didn’t save enough, and 34% of American workers have saved nothing.

What percentage of the following groups will you lose to attrition or retirement in the next five and 10 years?

Executives SeniorManagers

ProjectManagers

FieldManagers

Other

12%

% of Total Response

26%

9%

18%

9%

18%

11%

20%

7%

13%

5 Years10 Years

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Best-of-Class Practices at MoretrenchMoretrench is a nationally renowned geotechnical contractor, officially incorporated in 1931. Headquartered in Rockaway, N.J., and with

locations throughout the U.S., it has been a respected and trusted name in the civil, environmental, construction and geotechnical engineer-

ing communities. Since 1999 Moretrench has been a 100% employee-owned company.

FMI had the opportunity to speak with Art Corwin, president, CEO and chairman, about his approach to talent development at Moretrench.

FMI: When did you come to the realization that people development was a priority?

Art: I am currently president, CEO and chairman of Moretrench and have been with the company for almost 33 years. As I look back,

I was being groomed for this position before I ever knew it. In the early 1980s, I developed a relationship with Bob Lenz, the chairman

and CEO at the time, who exposed me to things that I was not ready to contribute yet, but which would be helpful later on in my career,

such as discussions to acquire a significant company at the time. I was also put on the Moretrench board of directors early in my career

for exposure.

So I saw firsthand the importance of people development and I have tried to continue that philosophy at Moretrench. I encourage our

managers and vice presidents to bring young people with them to important meetings, purely for exposure and understanding about how

the world goes around. I have to stress to managers that even if it does not necessarily make economic sense or it’s a hassle, young people

need exposure, so that when they’re managers they will know what to do and how to handle things.

FMI: Is this part of the mentoring program mentioned on Moretrench’s website?

Art: No, this is more informal and has been going on for quite a while. We started a formal mentoring program approximately six years

ago, and it is still a work in progress. The concept is good, but our execution of it could use some work. Some of the mentors we have are

phenomenal because they enjoy doing it. Others consider it a burden and often come up with reasons why they could not meet with their

mentees. Like I said, it is a work in progress, and we have not given up on it; but it is not yet as effective as we think it could be.

We also have formalized training. Most recently, we had a business session off campus using FMI’s Construction ProfitAbility™, an intensive

and interactive simulation that gives participants the experience of running a construction business. It was extremely successful, engaging

and fun, and our people got a lot out of it. One of the interesting things about it is that it is limited to 24 participants. We had to pick the 24.

Some were excited that they were picked; some people were disappointed that they were not. But there was no question among the 24 that

were chosen that we consider them the future of Moretrench. Part of what I wanted to accomplish in addition to the training was a sense of

camaraderie and bonding, which happened after the session with some social activities, such as dinner and drinks.

FMI: What skills do you think your future managers need to improve in order to be successful?

Art: People, people, people skills – that is the key. Managers need to know how to motivate, encourage and develop people. People skills

are primary. Financial skills are secondary. I do not mean the nitty-gritty of how we calculate payroll taxes on employees or things like that. In

fact, one of the things that we try to convey to our young people here is that success is not defined just by getting a job or a project done – it

has to contribute to the financial well-being of the company as well. We are in business to make money. So people need to understand why

we do what we do and what we are trying to accomplish, which is both excellent client relations with technical success, but also financial

success.

FMI: What is the average age of these future managers you are developing?


42

Art: I would say mid-20s to late 30s. This is an important point. As I mentioned, I have been with Moretrench for a long time, and our

most difficult years were in 1994-1995. At that time, we had a leadership change and a couple of demanding and ultimately poor proj-

ects, and we were really on the ropes. We made some major changes during those years, and one of them backfired – we stopped hiring

young people for the rest of the decade. We are paying the price of that today, in that we lack people with 10-15 years of experience. We

will not make that mistake again under my tenure. As difficult as the recession has been since 2008, we have not stopped hiring young

engineers. We think it is vitally important to bring in new young talent constantly. Also, the recession has caused us to evaluate people

who have four to seven years of experience to see if they have a long-term future here. Even if they are not bad or if they do not do their

jobs poorly, if they are not going to be the future managers and leaders of this company, we ask them to move on.

FMI: What sort of metrics do you have in place for these evaluations?

Art: I almost want to say that the lowest metric is technical skills, because all of our employees seem to have them. We are typically able

to recruit “hot shots,” and certainly after they have been here a couple of years, we know if they have the technical skills to succeed.

The truly important metric is the ability to work with others. We obviously take into account hard work, dedication, loyalty and ownership,

and also whether they are able to accomplish the projects or the assignments they are given.

We also have planning meetings with the managers, and when they are all asking for the same three to four people, we know that those

people are the up-and-comers because everybody wants them.

FMI: This must require a significant investment. How can you justify this expense during these challenging economic times?

Art: As I said, I was there when we did not hire young people to bring along, and we paid the price for it. We are not willing to make

that mistake again, so we are continuing to hire young people and we are investing in training. We spent a significant amount of money

on training that we think is necessary and worthwhile.

One of my pet projects as president of the company has been that I believe that everyone in our organization – everyone, myself included –

should get two days of training each year on something, pretty much on anything they’d like. There are 250 workdays in the year, so why

can’t you put two days, or less than 1%, of your time into learning something new? When you put it in that perspective, who wouldn’t do

that? And I really do not get hung up on what the training is – just go learn something. Learning anything helps to do your job better – it

just does.

FMI: How are you accomplishing your objectives for your training and development process?

Art: It is difficult to measure, but I would tell people that if there was such a thing as a talent meter, ours would be on the almost full

side. That is because of the 2008 recession, when we eliminated those that we did not think had future potential. The people who are

left are extremely talented. During our formal and informal annual reviews, I personally make it a point to reinforce that fact with our

up-and-coming potential people. It’s a lesson I learned from a former vice president at Skanska. We have many young hot shots that we

have all of these great plans for, but the only problem is we forget to tell them, and the next thing we know is they are going to another

company. “What do you mean you’re leaving? You were destined for greatness.” And they say, “Gee, I wish somebody had told me.”

We saw this with another contractor recently, where fortunately he was able to get the gentleman back. He had this person pegged to be a

senior vice president and never told him. This person never saw himself going anywhere, so he moved on to another company. His superiors

went crazy and when they ultimately got him back, they asked, “What were you thinking?” He responded, “Well, you never told me I had

43

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any future here – I saw myself doing the same thing, over and over.”

So I go out of my way to make sure that high-potential employees realize that we consider them an important part of our future. You do not

have to be specific about what exact role they may fill – all you have to tell them is, “I look forward to you being here for a long time; you

have tremendous potential and you will have a very rewarding and successful career at Moretrench.” That’s all they need to hear.

FMI: You have a robust internship program – how many of your high potentials come out of that?

Art: Probably 70%. While we’ve always had interns, we started a serious internship program about 10 years ago. We’re a firm of 500

or so, and it’s not unusual for us to have eight to 12 interns. It’s costly – if we have 10 interns at $1,000 a week for 10 weeks, it comes to

$100,000. But out of that, we offer more than half of them jobs. Some of the interns are with us for two or three years, so when we do

offer them a position and they accept, the interview process is over, questions on whether they will work out are over, and we know we

have someone that we’re willing to invest time and money in going forward because he or she has already proven his or her potential.

Does it always work out? No. We also had interns who, at the end of their internships, decide that this is not what they want to do. Well,

we’ve just saved ourselves a mis-hire.

The other thing I find with interns is that they are relatively inexpensive and you get a lot of work out of them. We save certain tasks for

interns to do over the summer that need to get done but nobody on staff really has time to do. You can assign an intern to do it, and he or

she will be very excited about it. A useful, worthwhile assignment gets done cost effectively.

FMI: It is such a win-win situation for everyone involved. Tell us about your vision for developing the next generation of leaders for the

Moretrench organization.

Art: As I mentioned at the beginning, I am president, CEO and chairman, which makes this an exit position, because the next stop for

me is out the door. My role now is such that I should leave and no one should know that I left. Then I will have been successful in de-

veloping the next leadership of Moretrench. It is very important to me to develop not just my individual replacement but also the whole

team that comes after me.

I started one interesting leadership development process several years ago. In senior management meetings, we put name cards in front of

everybody. If your name card was on red paper, it meant you’re halfway done with your career, and if it was on green paper, it meant you’re

less than halfway finished. When we sat down, we said, “Whoa, way too many reds and not enough greens. We need more green people at

this table – the next future leaders of the organization.”

We are in the midst of another exercise right now where we’re asking, “What’s the company going to look like five years from now?” We’re

not talking about a strategic plan of how we are going to get there, but just what Moretrench is going to look like in five years and who the

potential people will be to fill the organizational chart as we then see it. We have five years to make sure those people are where they need

to be. It is clear some are going to be there in two years, so we’re good there. In other positions, we don’t even have the right people in the

pipeline yet, then we forget and five years from now have to move to get them in immediately. This exercise identifies areas where we need

to concentrate on recruiting.

FMI: In addition to the internships, where else do you recruit?

Art: We have excellent relationships with many of the local universities, including the heads of the civil engineering departments who

understand what we do as a company. This has developed over time. They will send us prospective candidates. There have been years

when they have not sent anyone because they don’t feel they have what fits what we need, and that’s why we have an excellent relation-

ship. When they say they are going to send us a candidate and he or she is your person, we go through the interview process, but it’s

pretty much a done deal because if they feel that strongly, we’re going to hire him or her.


44

We also hire from recommendations from our own people. We’ve picked up some very talented people who had been downsized by com-

panies that had no other choice but to let them go.

FMI: Thank you for sharing some of your best practices in developing your workforce.

ConclusionBy now you’ve likely gone through a workforce reduction, a compensation adjustment or both. As companies begin to position themselves

for future growth in the face of an uncertain economic recovery, we are also faced with some strategic decisions. In order for construc-

tion firms to remain viable and successful within a new economy, they must continue to invest in their human capital. Organizations that

strategically address the need to develop talent through recruiting, hiring and retaining, training, development and delivery, performance

management, career pathing, succession planning and evaluation will maintain a competitive advantage.

References:

Patel, Laleh. (2009). “2009 State of the Industry Report.” American Society of Training and Development.

“2009/2010 U.S. Strategic Rewards Survey.” Watson Wyatt Worldwide and WorldatWork

Ashley R. Sisk, SPHRTalent Development Consultant

As a consultant with FMI, management consultants to the construction industry, Ashley Sisk works with a wide range of fi rms across the construction industry to improve the effectiveness of human capital within their organizations. In particular, Ashley works with management level employees to enhance the skills they need to oversee projects and business units. She is passionate about developing construction professionals and aims to create learning environments in which all employees’ talents can be fully utilized and valued.

Prior to joining FMI, Ashley worked with the Center for Creative Leadership to develop an enrichment program into an outlet for employees to “bring their whole selves to work.” The program developed employees personally and professionally as well as gave employees a forum for sharing their ideas, which were then used for further research and marketing opportunities.

Ashley believes that employees are motivated to perform to their full potential when the organization invests in their careers.

Ashley holds a bachelor’s degree in psychology and leadership studies from Peace College, and is a Certifi ed Human Patterns Administrator.

Tel: 919.785.9242Fax: 919.785.9320Email: [email protected]: www.fminet.com

The following FMI consultants have graciously contributed their time to The 2011 U.S. Construction Industry Talent Development Survey. We would like to thank Ashley Sisk as the project manager and each of the coauthors for making this year’s survey a success.

To request additional copies of The 2011 U.S. Construction Industry Talent Development Report, contact Ashley Sisk at 919.785.9242 or via email at [email protected]. For additional information, please contact Ken Wilson at 919.785.9238 or via email at [email protected].

46

Sal DiFonzo, Managing Director

Sal DiFonzo is the managing director of Analytical/FMI, management consultants and

investment bankers for the engineering and construction industry. Analytical is the salary

survey arm of FMI, which focuses on compensation benchmarking and consulting. Work

with clients includes organizational design, sales compensation, executive compensation,

corporate incentive compensation and base pay strategies.

Prior to joining FMI, Sal founded Upside Solutions, a compensation consulting fi rm.

He also spent seven years in sales management in the fi nancial services industry. Sal’s

experience also includes compensation positions with increasing responsibility at Fortune

500 companies Eli Lilly and U S WEST, progressing to director of compensation and

benefi ts at Honeywell International.

Kelley Chisholm, Editor

Kelley Chisholm is the editor and project manager of FMI Quarterly and FMI’s annual

U.S. Markets Construction Overview. She manages the design and production of

each publication. In addition, she has published numerous articles on training and

management related topics in a number of national trade publications and scholarly

journals. Kelley also manages FMI’s construction blog, where she edits and writes posts

on timely issues in the A/E/C industry.

Prior to becoming editor, Kelley was a talent development consultant with FMI, and

worked with construction fi rms nationwide to improve the effectiveness of their people.

In this role she conducted needs assessments; developed, designed and facilitated training

programs for project managers and executives in the construction industry; and created

metrics to measure learning.

www.fminet.com

Matthew W. Kennedy, ConsultantMatthew Kennedy is a consultant with FMI, management consultants and investment bankers for the construction industry. Matt consults with clients in order to build enduring organizations through establishing a foundation of strong leadership performance and depth of talent.

Matt is passionate about helping individuals develop their leadership abilities to lead their teams and their organizations to excellence. He is also focused on helping executives develop a bench of succession-capable talent. Matt serves as an instructor at FMI’s Leadership Institute, a four-day program in which participants examine their unique leadership styles and learn how this style affects others.

Andrew Patron (Andy), Senior Consultant

As a senior consultant with FMI, Andrew Patron’s (Andy) primary focus is on the evaluation, creation and implementation of training programs designed to develop leadership, project execution, organizational and operational excellence. He also works with clients to help them manage their succession planning process and strategy implementation. Andy’s enthusiastic approach draws from his real-world experience, leading and managing people and improving work process in many industries, specifi cally in construction.

Andy brings a 25-year history with private and public sector owners and contractors. He started his career as a management engineer; analyzing operations, studying work process fl ow and creating industrial engineering solutions for a national healthcare provider. Andy later went on to manage the planning, design and construction of their major medical facilities. He has been responsible for the day-to-day operations of a residential builder and he has a practical understanding of the unique fi eld challenges that exist within the construction industry. He has also been a worldwide project manager for a Fortune 100 information technology company, and understands the complexities of working across continents and cultures.

About FMIFMI is the largest provider of management consulting, investment banking and research to the

engineering and construction industry. We work in all segments of the industry, providing clients

with value-added business solutions, including:

Strategy Development

Market Research and Business Development

Leadership and Talent Development

Project and Process Improvement

Mergers, Acquisitions and Financial Consulting

Compensation Data and Consulting

Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers

innovative, customized solutions to contractors; construction materials producers; manufacturers

and suppliers of building materials and equipment; owners and developers; engineers and architects;

utilities; and construction industry trade associations. FMI is an advisor you can count on to build

and maintain a successful business, from your leadership to your site managers.

www.fminet.comCopyright © 2011 FMI Corporation

Notice of Rights: No part of this publication may be reproduced or transmitted in any form, or by any means, without permission from the publisher.

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the 2011 u.s. construction industry talent development report

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