Ep.277 - Contractor Grading - Integrated Production Control System Series

Are you sure everyone will elevate on your project site to the needed standards for continuous improvement? In this Integrated Production Control System series episode on accountability, Jason unpacks the contractor grading system and why continuous improvement can only happen in stable environments. You'll learn the BSRL research lab story (graded all contractors with non-subjective criteria like foreman on time to huddles, deliveries on time, areas clean, everyone except electrician started C/D/F, all raised to A/B grades, owner's VP said "project felt like going to Disneyland"), why clear is kind and unclear is unkind, the Psycho-Cybernetics story about self-image and mental set points, why you need to stop playing "buddy buddy" or "savior" with trade partners (they need connection, relevance, measurement, not favors), the Bowl concept (grading system becomes the bowl so everyone addresses the problem instead of you using emotional currency), and why if you don't think it's good to hold others accountable, you're probably not accountable yourself.

What you'll learn in this episode:

• Continuous improvement requires stable environments: Definition of lean—(1) respect for people/resources, (2) stable environments with flow that bring problems to surface, (3) total participation through visual systems, (4) continuous improvement and fanatical quality; can't have continuous improvement without total participation, can't have total participation without stable environments, can't have stable environments without respect for people

• BSRL contractor grading story: Graded all contractors with non-subjective criteria (foreman on time to huddles, making commitments, deliveries on time, areas clean/organized, crews have quality info, weekly safety reports); everyone except electrician was C/D/F when started grading, all contractors raised to A/B grades (one came from F to C), owner's VP said "coming to my project was like going to Disneyland"

• Cannot implement great system without grading: "If you do not implement a grading system, you will not achieve the results you want. I would rather you not tell people you're using the integrated production control system unless you're using a form of grading. You cannot implement a great system if you don't grade your contractors."

• Everyone wants clear expectations: Nobody wants you to fail, they're testing to see if your leadership is real; when people badmouth you and tear you down, they're waiting to see if you fall; eventually they'll say "thank you for staying strong, I wanted to believe in strong leaders"; need higher mental set points, imagine the project you want and the leader who'll get it there, then become that leader

• Stop playing savior with trade partners: Don't play "buddy buddy" or do favors expecting favors back; trade partners need connection (real human level), relevance (how they're relevant to project), and measurement (see what winning looks like), not savior relationship that doesn't get sustainable results

"The grading system becomes your bowl. Everybody's looking at the grading and they're not looking at you. When you don't have a grading system, you're using your own emotional currency to influence people to perform. That takes a lot of effort and mental and emotional strain. Why not get that disassociated from you and associated with team goals so everybody can mutually hold themselves accountable?"

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Also, here are links to our YouTube Channels:

· Jason Schroeder YouTube Channel: https://www.youtube.com/channel/UC4xpRYvrW5Op5Ckxs4vDGDg

· LeanTakt YouTube Channel: https://www.youtube.com/c/leanTakt

· LeanSuper YouTube Channel: https://www.youtube.com/channel/UCzQDevqQP19L4LePuqma3Fg/featured

· LeanSurvey YouTube Channel: https://www.youtube.com/channel/UC-Ztn3okFhyB_3p5nmMKnsw