Wednesday, December 17, 2008

The Old vs. The New

FabTech is undergoing many changes. We have been in business more than 15 years. The company has grown steadily using few systems and formal processes. We are at the tipping point where the “old way” is giving way to the “new way.” Now which way?

Like many start-ups, our company developed many habits over time to deal with the challenges of serving customers while controlling costs. Communications are never a challenge when there are only 5 or 6 people in a business. Everyone knows what everyone else is doing. Forms, process flow, quality checks, lean manufacturing and other tools are just built in. The challenge comes with success. When you go beyond 10 people in any venture, you need to put some formal processes and tools in place.

FabTech has tripled in size over the last few years. We have added staff on the plant floor and in the office. We have grown market share and our capabilities. The challenge is making the transition from “seat of the pants” to “organized and accommodating.” The market is demanding ever more speed, quality and flexibility from us. Glaziers are getting that pressure from general contractors who are getting it from architects and owners and so on and so on and so on.

Fortunately, we have a good crew of old hands and new blood. The veterans have been pretty open to the new ideas. Sure, there has been some gnashing of teeth when some of the old ways get tweaked. This has been minimized with the launching of profit sharing for all associates. Funny how a little cash for success can get everyone rowing in the same direction.

The price of putting some formal processes and tools in place is well worth it. In the chaotic world of commercial construction, those who are better, faster and less expensive win. Others better watch out!

Do you have any stories about transition stages in your business? If you are willing to share challenges, solutions or anecdotes, let me know. I am sure others would enjoy reading some war stories.

A quick shout out to Paul Bieber. He is another blogger for USGNN. I had the pleasure of meeting Paul at the Glass Expo Midwest. We had a great discussion about the industry and our backgrounds. It was very enjoyable to get to know Paul a little better. He really knows the market and how to run a glass business. Thanks Paul for the lunch and the company. You can check out his blog here.

I hope everyone has a great Holiday Season. Stay safe and enjoy the time with friends and family.