Facility Solutions: Manage Your Way to Growth

The difference between a new headquarters that facilitates credit union growth and a project that drags organizational performance down often relates to project management. Our March column addressed how developing a strategic occupancy plan, assembling the right team and stress-testing project plans impact organizational growth. Now we turn our attention to the need for strong management.

Executives must identify up-front how the project will affect their work priorities and those of their staffs from start to finish. A common complaint is, “We had no idea how much of our time would be involved. The project set back several other scheduled initiatives.” Work with your facility consultant and/or architect and contractor to create a master project schedule and insert individual staff resource requirements throughout the process.

An additional tool is a responsibility matrix, which spells out all the tasks involved at each step of the project and the people who take primary, support, input and approval responsibilities. Developing this matrix may sound like a lot of work, but it can avert resource allocation disaster.

The credit union should provide a single point of contact, or project champion, from start to finish for an HQ project. Some credit unions hire an outside project manager for a big HQ project so their staff can focus on running the organization. The monthly costs for a project manager can range from $4,000 to $20,000 based on the size of the project.

Here are additional recommendations for effective management of HQ construction, along with notes on the impact on organizational growth:

Build internal and external buy-in. Gather input from all staff on their desired workplace experience, and recognize their contributions. All staff directly involved with the project must be part of the team selection process as they will be communicating directly with each outside service provider. When firms make their presentations, request that the key players lead the meetings rather than sales representatives or company executives. These are the people who will do the work, spend a great deal of time with your staff and influence the final product. Impact on growth: Reduced staff stress and focus on building the credit union.

Insist on clarity. If you are spending millions on a project, you need to understand what you are getting for that investment. The architect’s contract must clearly define what tasks are included and excluded. For instance, if the architect is providing interior design, does this include furniture selection, signage design and graphics? The contractor’s contract should be based on the American Institute of Architects agreement between owner and contractor. The contractor’s contract should be reviewed by the architect and your attorney. Impact on growth: No local contracting issues that make for bad relationships or news coverage and on-time delivery to the community.

Put your brand behind all project decisions. Brand embodies the soul and purpose of your credit union. If you do not have a strong brand, you should not move forward with an HQ project. If the brand is not strong, well articulated and understood by staff and target markets, million-dollar decisions are being made without a solid foundation. It is worth stepping back for a short time to analyze your current brand and image. The culmination of this project should convey a story that directly and logically links your brand to every decision. Pretty is easy; good credit union design is based on creative and rational brand translation. Impact on growth: On-brand architecture and a unique member and staff experience is a gift to the community that helps sell the credit union.

Be transparent on your progress. Share meeting notes online with relevant parties. Your facility consultant, project manager and/or architect can monitor and report on work compared to milestones. A 24/7 camera on the job site allows staff to observe the work in progress; this camera can even serve as a marketing tool if you’re willing to post the feed on your website.  Impact on growth: The project is more likely to come in on time and on budget with regular monitoring, and you can build excitement for the project among staff and members.

Celebrate and continue to innovate. Occupying your new HQ should be an occasion to celebrate and educate staff and managers about the features of their new work environment. A staff audit conducted two weeks after occupancy can help perfect the workplace experience. Impact on growth: Staff live the brand and express their excitement in their interactions with members in person, on the phone and through technology. Staff clearly understand the brand and have a positive story to share with family, friends and others in the community.

It is easy to get so bogged down in project details that you miss a massive marketing opportunity. Building a new headquarters is a huge event. Sharing your story at every step of the project enhances the credit union’s community presence and illustrates success. The story begins when you purchase the property, and new chapters unfold with planning, renderings of the building and interior, groundbreaking, regular updates on construction, periodic events and, finally, a grand opening that lives up to the brand. As they say in the news business, “This story’s got legs.” Impact on growth: High-visibility, low-cost marketing opportunity to connect with target communities and express the credit union’s unique brand and success.

By itself, building a new headquarters will not accelerate growth. However, a purposeful approach to refine the business plan, nurture a strong brand message, stress-test financial assumptions, engage staff and members, and manage the process can have wide-ranging impact on organizational growth and performance over the life of the building.

Paul Seibert is an independent consultant under Paul Seibert Consulting, Seattle.