NewsBreak! Articles > August 3, 2011

CAROLINAS AGC CONNECT

The following is a condensation of remarks made by Mark Hood, Chair of the Board and Cynthia Mills, President & CEO at the Highway Heavy and BUSS meetings this summer.

Mark Hood:

As I mentioned in my installation remarks in January, a quote from Edward Deming resonated with me as I considered our Board's work to create a sustainable future for Carolinas AGC and the Carolinas Chapter of ARTBA. "It is not necessary to change. Survival is not mandatory." At our recent Highway Heavy meeting, a speaker shared another point, which also seems apt - "If you don't like change, you'll like irrelevance even less."

I shared with you that this year we are looking at everything from our financial viability to our governance structure to leadership selection to engaging the next generations, to questioning who we are going to be as the lines blur between contractors and specialty contractors.

Our board is doing exactly this, and we are continuing to wrestle with hard questions as our daily experiences as contractors remind us that times have permanently changed. In our May Board meeting, Cynthia asked us for as definitive an answer as we could give regarding when stability would return to our midst. Unfortunately, the consensus was 2014, which financially for Carolinas AGC means 2016.

There is no doubt that with dwindling resources, mergers and acquisitions, lower volumes, and companies going out of business, this has a direct impact on Carolinas AGC. Bottom line, we cannot be all things to all members. This is forcing us to take a look at our core competencies and to decide what we are going to continue doing and what we will stop doing; to consider what new endeavors we must undertake in order to be relevant in the future, to use technology where possible, and to plan aggressively.

You have seen big changes already as we closed five plan rooms last fall and repurposed resources. There will undoubtedly be other major changes as we go forward, because we are committed to being selective about providing the member services and activities that give all of our members the most value in return for the investment, to keeping a positive legislative and regulatory environment in place in the Carolinas, to supporting a pro-employee, union free work environment, and to positioning our industry for strength in the coming years. In a moment, Cynthia will be speaking to you about the process that is being used to determine our future.

Today, I want to make sure that we all recognize that as members, we will get the most out of our trade association based on how much we individually commit to giving to our community. I know that I am speaking to the choir today, but I want to ask you to consider several things that you can do to improve Carolinas AGC and ARTBA.

The strength of Carolinas AGC and ARTBA lies in our membership. While we have a staff that is dedicated to working on our behalf, it is always more influential to have a colleague speak with a colleague about the benefits of being a member of the industry's association.

I have a moral bias that if you are going to be in a profession or an industry, you have an obligation to be a part of, and to support, the community of professionals who are working to improve the quality of that profession or industry. It is our job as members to influence our peers to join Carolinas AGC and ARTBA. Our staff may be paid to open the door, develop the marketing, and to try to recruit - but it is really our job to build the base of our community. And so, I ask you, this year, to make at least one in-person call upon a colleague that you know should be a member who is not. Now, you may think that to not have a competitor in the fold is an advantage for you. I propose that, in fact, a competitor who is not a member is gaining an advantage from all the work that we are doing without paying for it.

The second request I would make of you is to consider how we gain influence in creating a favorable business environment. While we may not be in love with the political process, it works based upon two factors - votes and money. Our state sessions are ending, which means in NC, the legislators can start asking for money. It never ends in SC. The bottom line - we need as many CAGC members as possible so that when we go to the Capitols, we represent in mass considerable numbers of votes to our legislators, including all of our employees.

Secondly, we need to contribute to the campaigns of those who will support the construction industry. The best way to do that is by giving to our PACS - and that means the AGC of America and ARTBA national PACs and either the NC or SC PACs. A choice not to participate in the political process is a choice to allow things to happen TO us. We may not always like the outcomes, but not having a seat at the table is also a decision we make - just like choosing not to vote. This year, I ask you to contribute and to vote. Make it a cost of doing business and a commitment to your company, your state, and your country.

Lastly, I ask you to communicate. We can only be responsive to what we know about. Your needs as members are changing, and we need to understand your predictions for what you will need from your trade association in the future that may be very different from what has previously been provided. That doesn't make anything we have done in the past wrong. It simply means that something different is needed in the future. Our greatest successes will come from keeping a conversation open between our members and those who are charged to govern the association. I personally invite you to communicate with me whether in person, by phone, or email. This is your association, and it will be as strong and useful as we choose to make it together.

And now, Cynthia, our President & CEO, will provide us with some additional updates on the work we have undertaken this year.

As Mark alluded to, we are not resting on our laurels. Carolinas AGC has earned a reputation over the years for leading the way, and we intend to maintain that reputation. However, doing so may take some very different forms in the future as we respond to changes in the generations, an industry that continues to negotiate a crisis, and an association that no longer has the robust resources it enjoyed over the last two decades. As you go, so does Carolinas AGC.

And so, we have begun our new journey to find the vision for the 21st century. Proverbs reminds us "where there is no vision, the people perish." I have kept this on my desk for years and was staggered when I walked into one of our members' offices to find that it was the first thing you see in large letters on their wall too.

In order to find our way, it requires involving you and evolving our staff beyond the skill sets and understandings that made us successful serving you in the past. We began our process last fall engaging the leadership staff in retreats that initiated much greater communication and shared understandings and began to shape a teamwork format that will enable us to be responsive to your future needs.

This spring, those same staff members have been involved in significant data gathering. We have collated tremendous amounts of information about our competitors - yes, associations have competitors both for-profit and not-for-profit - and we sought out associations that we may need to consider as future partners. The media has been interviewed in order to understand what brand has been assigned to us, how we can influence our future brand, and to what extent we are currently availing ourselves of press opportunities. We then began talking directly with you. Forty calls were made to members who were representative of the various construction divisions considering company sizes, geographical locations, and generational distinctions so we could dig deep on your answers and gather critical insights.

The Board of Directors began its strategic conversations at the May Board meeting - dedicating one day to orientation to the governance processes they will use to lead and starting to get some of the biggest issues facing us out on the table. We held facilitated focus groups with members from all five divisions, along with a District Chair and Vice Chair teleconference focus group. In addition, the primary contact for every company for whom we have an email address received a link to an on-line survey so that our entire community can be part of designing the future. We're asking you to dream with us to see what you would design for your association if we were starting over with a blank slate. The results of your feedback will tee up the Board of Directors strategic planning session in September when they will map out a robust future based on your input.

Meanwhile, we have also been putting new technologies in place at the Carolinas AGC office, which will allow us to serve you better individually, in your construction divisions, and via the internet. Improvements will begin to be seen more directly in 2012, as we have a significant leap to make to get there.

Our relationships with both AGC of America and ARTBA continue to deepen as we all work closely together to maximize value to you, minimize duplication of efforts, and to increase our staff's interactions with the many resources that are available to us as a Chapter. I recently attended the annual AGC of America Executive Leadership Council meeting and led a session on Marketing and the Value Proposition for chapters around the country. I also serve on a national ARTBA Council.

Lastly, I want to assure you that there is no grass growing at Carolinas AGC and ARTBA. There are constant reviews of the manner in which we are using resources, significant cuts in expenditures have been made and are continuing to be evaluated. The staff is fully aware of what you are going through and is being directed to respond in kind as they analyze how they spend their time, what they can stop doing, and what they should be considering in supporting you.

Times may not be easy, but I will share with you my response to my colleagues who have questioned me about why I chose to join a construction association during such a difficult time. My perspective is that it is when people must face the daunting task of responding to an unexpected set of circumstances that there is the greatest opportunity for creativity, reinvention, and dreaming more astounding leaps than at any other time. I trust in your ability to do that, and I look forward to partnering with you to create a relevant and dynamic association in response to the new journey that we are on together.