From the Desk of National FCA CEO | Anthony (Tony) Darkangelo

August 11, 2011

Conflict Resolution

Over the years I have, through reading books and seeking the advice of great mentors, learned that all conflict can be resolved in a five step pattern. Conflict will occur. It is up to our industry leaders whether the conflict is resolved. My experience affirms that when conflict is not addressed it festers over time. Of course conflict cannot be resolved unless both parties want it resolved, and that surprisingly isn’t a given.

In both my personal and business lives I have seen both those people who cannot function with conflict and those that use it as their daily fuel. Although I have conflict with myself daily (I should probably seek help for this), it takes two or more to get into conflict and it takes the same parties to resolve it. Mastering the ability to resolve conflict quickly without letting it fester will help a family, friendship, company and industry move forward.

Conflict cannot be resolved unless all parties desire resolution and are willing to sit down and meet face to face. This is a major point in resolving any conflict because you can’t recognize the unspoken cues of body language over the phone or via email. If both parties cannot agree to sit down, then most likely one party does not value the relationship enough to spend the time and effort needed to fix it. With these background agreements in place, here is the five-step pattern to resolve conflict:

1. Affirm the Relationship – I am here because I value your friendship more than I value the discomfort of confronting my hurt feelings.

2. Seek to Understand – Leadership guru Stephen Covey’s thoughts on listening are worth their weight in gold. They teach one to seek the others person’s feelings, thoughts and perspectives first.

3. Seek to be Understood – After understanding the other party, share your feelings, thoughts and perspectives in an effort to show the other party your views in an unaggressive manner.

4. Own Responsibility by Apologizing – Reflect where any, if not all of the conflict, is your responsibility and learn to respond differently in the future. A genuine apology not only validates the relationship but can do wonders in releasing hurt feelings.

5. Seek Agreement – After both parties have apologized and accepted responsibility for their parts in the conflict, seeking agreement means reuniting on the common vision that drew both sides together in the first place and agreeing that the cause is bigger than the conflict.

If you don’t understand the value of these five steps, let me simply say “conflict costs you money and time in both your personal and professional lives.” Yes resolving conflict takes some effort (everything worthwhile does), but when both sides continually work to resolve conflict quickly trust between the parties is increased.

Is it easy? No.

Is it worth it? Yes.

Be Safe - Tony

May 16, 2011

Enough Said

People who share a common direction and sense of community can reach a goal quicker and easier because they travel on the trust of one another. We all know that it is harder to do something alone than it is to do together.

I firmly believe there is a great benefit in taking turns doing demanding work. Sharing leadership and depending on others with the same cause, provides us with both a chance to lead, and an opportunity to rest.

March 15, 2011

The Compassionate Samurai

In reading The Compassionate Samurai by Brian Klemmer, many things in this book make me think about what it is going to take to increase market share in our industry. Klemmer defines a Compassionate Samurai to be someone with strong values who can absolutely make anything happen and yet whose whole life is about service. I get so fired up about the direction of our industry when I realize that this is the very definition of the National FCA Board of Directors and others that serve our industry through their participation. Klemmer’s chapters include commitment, personal responsibility, contribution, focus, honesty, honor, and trust, which in my opinion, are the attributes needed to move us forward.

In digging into the text of the contribution chapter on being involved and giving, I am more convinced than ever that we need to get more leaders involved on many different levels. Together, anything is possible.

I provided a few words from the book; I hope you enjoy.

Never Too Good To Be Involved
“Compassionate samurai sometimes get involved in giving on many different levels. Why? Because they’re interested in giving what is wanted, not in protecting their image. They don’t let their egos interfere with their being of service. They realize more than anyone that if they have a high or lofty position in life, it’s directly connected to their ability to serve people. Microsoft, Wal-Mart, Home Depot, and Sears all became major players because they established a precedent of serving people. That’s one of the reasons why these companies grew to be such giants.
Beyond financial gain, many of these business warriors realized that they too have to be service oriented-even on a personal level. That’s why you’ll find some of the most successful people in the world offering their time to humanity. They don’t just donate their financial resources; they give of their own time and heart. If you’re a compassionate samurai CEO of a major corporation, it’s nothing for you to be a CEO during the week and then help clean up a low income intercity neighborhood on the weekend.”

Giving What You Have Very Little Of
“…Give what you have very little of, not just what you have in abundance. Average people donate what they already have in excess. People who don’t have a lot of money sometimes say, “I’ll give my time or talent”, as if that excuses them from giving money. They’re ruled by scarcity. If what’s needed is hard for you to manage, that’s all the more reason for you to give it. Look at it as if it were a set of weights that you use to work out: the more you do what’s hard, the bigger the muscles in that area will be. You will increase your capacity to give.”

February 3, 2011

Why Do We Bargain?

It seems like a ridiculous question, but have we really lost sight of the purpose of the collective bargaining process?

In asking labor what their bargaining objective is, you will hear responses like “get a fair agreement for our members”, “get a fair days’ wage for a fair days’ pay”, and “to provide security and retirement.”

When asking contractors what their objective is, you’ll hear responses that include their need for profitability, flexibility, and productivity.

One cannot argue the importance of these issues and I for one could not go toe to toe with labor or management in suggesting that these matters are not important, as both have responsibilities to the parties they represent. However, (I love this word because it indicates I have great respect for the leadership that understands negotiation but allows me to provide an opinion that might be considered or shit on, either way it gets us to think) is not the real objective of our negotiations to provide an agreement that our customer will buy because of the value?

I know what you’re thinking. Our customers want price, period! Well maybe, but let's look at our own actions as customers. Did you buy your last house on price, your last car, you last television? While the initial answer may be yes, if you really look at it, you first figured out the quality of the item you wanted and then you tried to get the best price for that item. If you bought your house on price, you would have spent $20,000 on one in the intercity. If you bought your car on price it would have been a Yugo (do they still make those?) and the television would have been a mere 12 inches. The point is that customers first decide what they are looking for and then they expect to find the best price based on their expectations.

Is it possible that we have lost sight of our partnership coming together to negotiate an agreement that our customers will want to buy based on their expectations? We cannot be all things to all people, nor should we be. We will not be able to provide our services to those who want the Yugo or 12" television, but are we seriously considering an agreement for those that do want what we offer?

I would ask you to consider the following for your upcoming negotiations:

First, get with your labor partner and invite some of your owners, owners’ representatives, general contractors, or any customers that influence the decision on your selection and ask them what they need from you. Sure, they will spend 75 percent of the conversation on price and that needs to be considered, but listen to them, ask questions, and I am sure you will find other issues that we can help them with.

Second, with every item that by both labor and management plan to present, ask yourself, prior to presenting it to your industry partner, if you were the customer, does it provide value to you? If not, why present it?

Without a customer, nothing in the CBA matters.

November 30, 2010

Are You Ready to Hang?

As I travel for our industry’s premier event, the Finishing Industries Forum, I cannot stop thinking about the wonderful opportunity that exists for our industry, if we remember one thing - we must all hang together.

We no doubt have a daunting task in front of us. The unionized segment of the construction industry is thought of by many as too expensive, not flexible, and possibly, no more productive. If you’re like me, and this perception pisses, then read on.

Benjamin Franklin once wrote in an article on the creation of the first hospital "The good particular men may do separately, is small compared with what they can do collectively; or by a joint endeavor and interest."

With this thinking, Franklin was able to bring people together to complete the first hospital that continues to serve the public, over 250 years later. Our success is as simple as changing our thinking. We must remember that although we are in business for ourselves, we are not in business by ourselves. This is a true economic war we are facing and to survive, we must come together if we are going to continue to exist.

Franklin was also quoted at the signing of the Declaration of Independence, replying to a comment by John Hancock, that they must all hang together. "Yes, we must, indeed all hang together, or most assuredly we shall hang separately". Can you feel the noose around your neck?

We must continue to come together nationally and locally to further our industry. Are we going to always agree on our path? Of course not, but we must agree on our vision. The 55 delegates that signed the Declaration of Independence did not agree on all of the content, but they did agree on the end vision.

Just prior to signing the Declaration, Franklin delivered a passionate speech to assuage the mostly unhappy delegates. He said in part “I confess that I do not entirely approve of this Constitution at present...For when you assemble a number of men to have the advantage of their joint wisdom, you inevitably assemble with those men all their prejudices, their passion, their errors of opinion, their local interest, and their selfish views. From such an assembly can a perfect production be expected? It therefore astonishes me, Sir, to find this system approaching so near to perfection as it does; and I think it will astonish our enemies... I hope therefore that for our sakes, as a part of the people, and for the sake of our posterity, we shall act heartily and unanimously in recommending this Constitution."

It is time to come together with a common vision and make the choices necessary for our combined success. What is your vision with your local partner?

November 10, 2010

What is Leadership?

Is it taking responsibility and getting results, or is it defined by phrases such as commitment, perseverance, charisma, and integrity? These may be true, but do they go far enough?

Let’s take a look at some experts on the subject.

James Hunter: “… a skill of influencing people to work enthusiastically toward goals identified as being for a common good.”
Al Kaltman: “The successful leader gets superior performance from ordinary people.”
Dwight D. Eisenhower: “Leadership is the art of getting someone else to do something you want done because he wants to do it.”
Alan Keith: “Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen.”
Gary Wills: “Leadership is mobilizing others toward a goal shared by the leader and the followers.”

The insight is good, but John Maxwell gives a great definition in his book The 21 Irrefutable Laws of Leadership:

“Leadership is influence-nothing more, nothing less. True leadership cannot be awarded, appointed, or assigned. It comes only from influence, and that can’t be mandated. It must be earned.”

So what is influence? Nineteenth-century preacher and author Albert Barnes explains:

“Influence is that in a man’s known talent, learning, character, experience, and position, on which a presumption is base that what he holds is true; that what he proposes is wise.”

Compiling the information above, one could make a case that Leadership is the influence of others in a productive, vision-driven direction and is accomplished through example, passion, and character of the leader.

Why is this important to understand? Simply, it is going to take great leadership to turn our industry around. Although we are well on our way with great leadership in National FCA, the IUPAT, and all of our industry partners, it is still not enough. This industry needs you to:

Join us in a common vision-driven direction.
Be an example of influence. What you do speaks so loudly that what you say I cannot hear.
Be passionate. Leave no man the opportunity to assume your position.

In a recent meeting of National FCA’s Affiliate Executives from around the country, my good friend Clark Johnson simply stated “We can either wait for the market to come back or we can prepare for it to come back.”

Waiting is not an option. National FCA leadership needs to leverage your talent, character, and experience to help lead our industry further than it’s ever been. This is a great time to invest in yourself, into your industry.

The industry is counting on you!

October 5, 2010

Sick and Tired!

You have heard me say it before. “These may be the best economic times we have, to increase organized labor market share.” Don’t worry. If you haven’t, you will.

Let’s be clear, just because the economic window may be the best, does not mean that it is going to happen. We need to take advantage of the opportunity and make it happen. I recently attended a meeting with contractors from around the country and I heard the same message: “We are sick and tired of being sick and tired.” I am so fired up because this is the attitude that puts people into action for change.

Don’t assume this means that we are tired of being beaten around by the union and that we are not going to take this anymore. Success has nothing to do with that thinking; it has everything to do with leading our industry, going to battle, and getting results side by side with our industry partners. Easier said than done? Not really, if we focus on the major issues:

Confront the brutal facts of our current reality. Management and labor need to reach a common vision on the local level, set goals, and get to work. It works! Areas around the country that are doing this are getting results for their industry.

Never lose faith. Things will undoubtedly seem worse before they get better. So what? Each one of us looks for a beauty to save (now that’s one thing National FCA can’t help with) and a battle to win. Our Goliath is right in front of us and together we can win. If you are convicted in your destination you will get there.

Get the right people on the bus and the wrong ones off. When in doubt, don’t settle, keep looking. When you know you need to make a change, act. Put your best people on your biggest opportunity, not on your biggest problem.

Create a culture. Is it your culture to provide the best trained, educated, safe, and productive workforce in the industry? Find out what it is for your area and create it. If not, one will be created for you. How’s that working so far?

September 27, 2010

McDonalds with No Drive-Thru?

Last week, I was fortunate enough to be invited to the IUPAT grand opening of its new international headquarters that included a ribbon cutting ceremony and reception. Union leaders from the AFL-CIO, district councils, rank and file members, and Maryland Governor Martin O’Malley joined in the celebration. During the ceremony, IUPAT General President James Williams presented a $25,000 check, on behalf of the PATCH Foundation, to the Boys and Girls Club.

The IUPAT broke ground on the building of its new headquarters over a year ago and successfully completed it on time and under budget. Completion of the headquarters in Hanover, MD brings the IUPAT campus full circle as it joins its training center and new 36-room residence hall.

Now why do I tell you all of this? Well, some of it is simple. First, it is a great facility and we should be happy that our industry partners invested in the future of our industry. Key point – investing. Sometimes we lose site of the difference between an expense and an investment and start to convince ourselves that what we are doing is actually costing us money.

It’s true that the economy is not the greatest (news flash) and the best time to invest in yourself was 10 years ago, but the next best time is now! Second, if we are going to market our companies as having the best trained, educated, safe, and productive workforce, then we better make sure we have the facilities to execute and portray that message nationally.

Now for the not so simple part: Have you ever wondered why McDonalds became a great company and Jack-in-the-Box did not? Surely it must be because McDonalds produces the best hamburger on the planet. Not so, in fact what made them so successful is the system they created. Everyplace in the world you travel, you expect to get the same tasting meal even if the menu is in a different language. Every employee must go through proper training at Hamburger University.

Think about this concept and how it changed business. What if we applied this concept to our industry? What if every area in the United States and Canada sent their local instructors, on a consistent basis, to bring back the menu of success to the local level? What would happen if you opened a McDonalds and you did not put in a drive-thru because you did not feel it was necessary? Or, what if you did not want to open for breakfast because you did not like breakfast? It would fail!

Since we are not going to fail, we must continue to work with our industry partners and demand from each other the things necessary to provide our industry with a system of education, production, and professionalism that is expected from coast to coast. The National Training Facility is a reflection of not only our industry, but a reflection of each one of us. I know that in some areas, the training centers are incredible state of the art facilities, so they may not see the value of a national training facility. But, having the national system is vital to our future. Using it is vital to our existence.

September 15, 2010

Journeyperson Upgrade Training

The following is some of the best language that I have seen in a CBA on this issue. During negotiations, management and labor were frustrated that previous attempts at this language were not as successful as hoped. Previous language was tied to wage increases, which had many negatives, including a down economy that eliminated possible increases and the incentive to participate. Both management and labor understood that this was something that needed to be enforced by management and supported by labor. The following language will be enforced with fines from the Labor Management Cooperation Committee for any contractor hiring an ineligible employee and the Union will support by not placing or removing employees from the group referral list.

ARTICLE: Mandatory Journeyperson Upgrade Training

Section 1
Each journeyperson is required to annually complete one (1) safety and one (1) skill class, approved by the Local Labor Management Cooperation Committee. The District Council shall maintain a current list of completed coursework per member.

Section 2
In the event that a Journeyperson is not compliance with the continuing education requirements of this agreement, the journeyperson shall be immediately suspended from employment upon notification from the Union of the non-compliance. The employee shall immediately become ineligible for hire and shall not be placed or shall be removed from the group referral list (which he or she qualifies) as set forth in Article, Exclusive Hiring Hall of this Agreement.

Section 3
If following the end of any year an employer employs journeypersons who are not in compliance with the continuing education requirement of this agreement, the Contractor in violation of this Section will be subject to fines as outlined by the Local Labor Management Cooperation Committee.

September 7, 2010

Tentative St. Louis Area CBA

The Panting & Decorating Foundation of St. Louis and Painters District Council 2 have reached a tentative agreement on a new three year contract. Upon ratification from both side this week, the agreement will be effective from August 31, 2010 to August 31, 2013.

Tentative Agreement
Wages

Year One: Wage package freeze. Any money needed for the funds will come off current wage package.
Year Two: Wage package freeze. Any money needed for the funds will come off current wage package.
Year Three: Package to be increased three percent, based upon base wages as of August 31, 2012. Money is to be distributed to the funds only.

Language
Hours of Work

The employee may have a makeup day, at regular pay, for exterior work lost due to inclement weather with conditions.
4/10s applicable to all work.

Premiums

Spray - $2.00 premium for E-0 and E-1 per MPI (www.paintinfo.com)
Water blast - Premium eliminated
High work - Premium eliminated
Pressure Roller - Premium eliminated
Shift pay - $2.00 per hour, four-hour minimum, starting after 8:00 p.m.*
After four hours, the employee will be paid for actual hours worked.

*Four hours minimum will be waived for circumstances beyond the contractor's control.

August 30, 2010

Trust – The Key to Moving Forward

I have had the opportunity to work with many labor and management groups around the country. Many times, I am asked about different areas and my opinion on what makes good labor management relations. It took me a while to see it but there is no doubt that the common link is trust. If we can increase trust we can speed things up and reduce cost.

Trust was high when Berkshire Hathaway (Warren Buffett) and Wal-Mart agreed on a $23 billion Acquisition of McLane Distribution from Wal-Mart within a two-hour meeting. The complete deal was done in less than a month saving several millions on professional fees. If trust is low or even nonexistent, the speed of getting things done goes down which makes cost go up. Think about what happened to air travel after 9/11. Once trust was lost at the airports we took on tremendous cost in security and the amount of time one now spends at the airports.

Now more than ever, trust is more critical than ever, as this may be the greatest opportunity we ever have to move our industry forward and regain market share. Yes, you read that right. Think about it – even if we have a reduction of work due to the economic condition and we now only control 10 percent of the market share right now – that still leaves us 90 percent of the market to gain. Yes, 90 percent of the pie is ours if we want it. If we can build trust and focus on a common vision, a great opportunity awaits us.

August 10, 2010

Lowest Bidder

Here are two excellent quotes from John Ruskin, an English critic, essayist, and reformer (1819 – 1900). I was shocked when I read this as I thought the "lowest bidder" to be an issue of the 21st century. Obviously, I was way off and the issues that we face today are some of the same issues of the 1800s. If we really understand what he is saying, then we can provide value that is worth the cost. When you clearly provide the best, you can demand more.

"It is unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money — that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot — it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better."
- John Ruskin

"There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man's lawful prey."
- John Ruskin