The (Flaming) Andy Grove Principle

The (Flaming) Andy Grove Principle

Last week in Puerto Rico at the AGC National Convention, a common theme permeated nearly every keynote speech, breakout group, and CEU-studded session: the labor shortage.


Not enough craftworkers.
Qualified craftworkers, to be more specific.


As the construction industry heats up, the pressure to land more work is being replaced by fear—there’s not enough labor to complete the work in backlog.


There are 2 broad activities to consider here:

Talent Acquisition: find new people.
Talent Retention: keep the people you already have.


Common sense, right?
Maybe, but it’s easier understood than practiced.


Last December, a client posed a question that I’ve been unable to shake: “Do you know how much it costs our business to hire 800 people, so we can staff 400?


I didn’t.
And he didn’t tell me.


To ease my troubled mind, I created what I call The (Flaming) Andy Grove Principle, after the CEO Hall of Famer from Intel . . . and some flames my graphic designer recommended.

Two premises drive The (Flaming) Andy Grove Principle:

1. There are only two ways to improve performance: Training and Motivation.
2. Acquiring new talent is significantly more expensive than retaining the talent you already have.


The Andy Grove Principle is called such because Grove coined Premise #1: “There are only two ways to improve performance: training and motivation.”

If you disagree, take it up with him.

It would be like arguing with Don Shula about the ’72 Dolphins roster, but hey—do what you gotta do.


Premise #2 says finding, hiring, and training new employees sucks an incredible amount of capital, talent, and time out of an organization.


So what can we do?

We focus on retention—keeping the talent we already working for us.


How do we do that?

Well, you’ll need to change how you do things.

For starters, you cannot ignore your Spanish-speaking workers anymore. These are the “qualified craftworkers” everyone needs, so quit making jokes about La Migra, Ted Cruz, or the guy from CHiPs.

Furthermore, English-speaking managers will need to coach better.

Better coaching requires better communication.

That is where the model starts—Coaching and Appreciation. Talented workers crave feedback and want to improve. Communicating small words of appreciation (Bien hecho, gracias. :: Well done, thanks.) and coaching (“Mira aquí. :: Look here.) can go a long way.


You cannot outsource leadership on your job.
It’s your job.


Active coaching and appreciation leads to higher levels of engagement and motivation. You’ll see craftworkers stop waiting to be told what to do. They’ll proactively search out ways to work smarter and solve their own problems.

When the workers doing the work bring their whole mind to the task at hand, new ideas lead to continuous improvement.

Continuous improvement leads to positive performance—unsurprising because the craftworkers are trained well and motivated.

It’s The (Flaming) Andy Grove Principle.
It’s the principle that reduces expenses.

Looking for a place to start?

Start with Appreciation.
It’s one of the deepest human needs.

Use these:

  • Bien hecho.
  • Fantástico.
  • Excelente.
  • Muy bien.
  • Gracias.


A few small Spanish phrases of appreciation will change things immediately.

And change is good.

While everyone else is complaining about a labor shortage, continue to train and motivate your people. Then watch as they attract even more talent.

Talented people want to work with other talented people.


Common sense, right?
Maybe, but it’s easier understood than practiced.

For más ideas on becoming a Hispanic Employer of Choice, visit our new website: www.redanglespanish.com

Nick Greco

Insurance & Risk Professional

9y

Great post Bradley Hartmann... Too many companies live by the motto that "anyone can be replaced." That may be true,to an extent, but at what cost? Understanding how to bridge the communication gap and possessing the ability to identify and keep great talent is what separates the good companies from the great companies.

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Jacque (Jack) Cox

HÖRMANN- Northeast Territory Sales Manager-German Engineered/American Made - Commercial/Residential/Industrial-Overhead Doors/Impact Traffic Doors

9y

Great stuff! So many projects getting " value engineered" . Quality guys can make more money elsewhere and not have so many contract loopholes to deal with. Many contractors taking on these jobs risk their entire companies by trying to make a living in this field.

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Bradley Hartmann

CEO at Bradley Hartmann & Co., Host of The Construction Leadership Podcast

9y

Thanks Juan! You're right—treating our teammates with respect & appreciation is one aspect of the business we fully control.

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John Wayhart

Insurance & Risk Management Executive Zero Accident Culture®️Consulting services

9y

Outstanding message. Simple, concise and it's all right in front of every employer ..

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Mark Mitchell

Building Materials Sales and Marketing Growth Consultant. Win and keep more customers to grow your sales

9y

Great post Bradley

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