Challenges. Combating the Top

Transcription

1 From unrealistic client expectations to scheduling conflicts, there is no shortage of issues that can arise during a kitchen or bath installation. Sound project management can help keep any project in check. By Michelle Bowles Jackson * photos by Michael weschler Combating the Top Project Managem Challenges 14 KITCHEN&BATH INDUSTRY INSIGHTS Vol.2 Issue 4

2 ent 15

3 Anyone who claims it s not a challenge to ensure that subcontractors are well managed, keep client expectations in check, and stay within budget clearly hasn t been in the kitchen and bath industry for long. But a healthy dose of project management can help ensure kitchen and bath installations are completed with minimal bumps in the road particularly when dealers are working on overlapping projects. It all starts with a project plan that spells out the major tasks and resources needed to complete those tasks, says Mark Woeppel, president and CEO of Pinnacle Strategies, a project management consulting firm located in Plano, Texas. It s really important when managing multiple projects simultaneously to lay project plans side by side to do effective resource planning, he says. That means looking for resourcing and scheduling conflicts and planning accordingly. Cranbury Design Center s Charlie Rini and Angela Cavaleri discuss project plans with their designer. With that project management cornerstone in place, dealers are equipped to handle the major difficulties that can arise during an installation. Challenge 1: The Unhappy Client Improperly set or managed expectations can lead to unhappy clients. Timeframe expectations are particularly tricky, says Charlie Rini, partner at Cranbury Design Center in Hightstown, N.J. If we tell clients the project is going to last three months, they often expect it to be done in two, he says. 16 KITCHEN&BATH INDUSTRY INSIGHTS Vol.2 Issue 4

4 Quick Take n Manage client expectations through constant and clear communication. For example, give clients a detailed project schedule with start date, completion date and milestone dates in between. Then review schedule progress with them weekly. n Most project schedule risks can be managed by including time buffers to account for unexpected changes. For significant schedule risks, a backup project plan may be necessary. n Project scope increases are often a welcome addition, but dealers must assess how such expansions will impact the team s ability to complete the project on time and within budget. n Dealers can avoid cost overrun by specifying the exact make and model of the products to be installed. Rini combats the issue by giving clients a very detailed project schedule with start date, completion date and milestone dates in between. We monitor the schedule daily and review it with the client weekly, he says. Issues also arise when a client s design expectations aren t met on paper the design looks great, but when it comes to actually using the kitchen, something doesn t seem right to the client. To tackle this issue, Cranbury Design Center walks clients through CAD drawings projected on an 85-inch screen. The drawings are then reviewed at the client s home on a laptop. We use painter s tape to lay out the whole kitchen or the bath, Rini says. That way, clients can get a visual on the size of the drawers, the size of doors, where the refrigerator is, where the commode is, where the shower is. Finally, to ensure clients have realistic expectations about product application how cabinet doors open, how a shower works Cranbury Design Center maintains an interactive showroom complete with working appliances and displays. Challenge 2: The Thrown-off Schedule One of the greatest challenges for a kitchen or bath project is staying on schedule. No homeowner wants to hear a project will take three more weeks to complete than previously anticipated. And unfortunately, it s easy to underestimate the time it takes to complete tasks. To ensure the project schedule stays intact, Woeppel suggests including time buffers. That way, when unexpected things happen a granite countertop is dropped and damaged or the plumber is out sick for a few days the additional time can be absorbed. Woeppel suggests weekly homeowner meetings to review work completed and upcoming tasks for the next week. It allows you to manage future activity instead of reacting to fires, he says. Left: Charlie Rini, Cranbury Design Center Right: Cranbury Design Center walks clients through CAD drawings projected on an 85-inch screen. 17

5 To ensure clients have realistic expectations about product application how cabinet doors open, how a shower works Cranbury Design Center maintains an interactive showroom complete with working appliances and displays. Cranbury Design Center communicates with all project-affiliated trades on a regular basis to check on project status. that either presents an opportunity to speed up or slow down the project. Small scheduling conflicts are one thing; major conflicts are quite another. Weird stuff happens a key project team member is in the hospital for three weeks, for example, Woeppel says. You can t build in extra time for these completely out-of-the-ordinary events because they almost never happen. To manage abnormal schedule variations, he suggests creating backup project plans. For instance, dealers could have a backup supplier on call. The backup supplier might be more expensive and cost you some profit, but it will at least keep things moving, he says. During such a meeting, for example, a dealer may learn the homeowners will be out of town for a week; the project team could gain time on the schedule by increasing workload while the clients are gone. The whole point of having weekly meetings is to manage what comes next and get out in front of the homeowner, Woeppel says. Dealers find out information Challenge 3: The Unexpected Change Order An increase in project scope is good news in terms of profit but can prohibit the ability to complete the project as planned. We ll be working on a kitchen installation and the client will say, While you re here, can you do my bathroom, too? Rini says. Your initial inclination is to say, Sure, no problem. To Have a Project Manager or Not to Have Large or small, every project Cranbury Design Center takes on is managed by a dedicated project manager, Angela Cavaleri. Cavaleri works with all clients from the onset creating the initial project schedule and plan, accompanying homeowners on shopping trips, hosting weekly clients meetings, monitoring deliveries and making adjustments to schedules as needed. Via phone or , she also communicates with all project-affiliated trades on a daily or weekly basis to check on project scope status and any change orders. Angela keeps everyone in the loop, says Charlie Rini, partner at Cranbury Design Center. She keeps up the excitement level for clients and makes them feel reassured. Having Angela provide constant updates and moving things around as needed also ensures we complete projects on the dates we say we will. But the decision to hire a dedicated project manager depends on the level of service a dealer wants to provide and the level of schedule risk he or she is willing to take on, says Mark Woeppel, president and CEO of Pinnacle Strategies. If you re in a high-end market, clients likely demand a project manager and will pay for it, he says. If your customer base is more middle class, where you can t charge a premium, it might be more difficult to support a dedicated project manager. Software programs can support the work of a project manager. Any number of tools can help the team visualize the project, communicate with the client, identify resource conflicts and stay organized. Tools range from simple, inexpensive ones (Microsoft Excel, Microsoft Project or Basecamp) to sophisticated ones that are more of an investment (Compuware Changepoint, AtTask or 5pm). But software shouldn t be relied on to replace a project manager. A tool is just a tool unless you have a person who knows how to use it, Woeppel says. Software does not replace a project manager; it supports good project management practices. 18 KITCHEN&BATH INDUSTRY INSIGHTS Vol.2 Issue 4

6 NARI Launches Project Manager Program In early September, the National Association of the Remodeling Industry (NARI) launched the industry s first Certified Remodeler Project Manager (CRPM) education program. The program is designed to address the growing trend of remodeling companies using project managers to supervise projects rather than general contractors. The course was designed by experienced project managers so that participants can gain real-world knowledge on the subject. It will include teachings in project cost management, communication, project planning, quality assurance, recordkeeping and risk management. For more information, visit Project Manager Angela Cavaleri provides Charlie Rini and other team members with constant updates on projects to ensure they stay on schedule and within budget. But Rini has disempowered himself to offer that sort of approval. Only Angela Cavaleri, his dedicated project manager who tracks all projects large or small, can make that call (see To Have a Project Manager or Not to Have, pg. 18). We say upfront to the client, We don t have any issue adding things on, but they have to go through our project manager first, he says. When a scope increase arises, Woeppel suggests completing the original project before beginning any new tasks. Otherwise, you start diffusing resources and all the tasks take longer to complete, he says. If it s not possible to complete the original project first, it s a wise strategy to redo the project plan and contract so client expectations remain well managed. Challenge 4: The Cost Overrun Many time, cost overrun can be the easiest project risk to manage, Woeppel says. In addition to simply understanding what their true costs are, dealers can keep budgets in tact by clearly communicating to the homeowners exactly what he or she is getting as part of the project. For example, instead of telling a homeowner that his or her kitchen design will include a stainless steel dishwasher, dealers should be 100-percent clear on brand and model. The homeowner might be expecting a more expensive one than you are thinking, Woeppel says. It s all about communicating the exact brand name or type of equipment the customer is going to get. That gives you an opportunity to upgrade later. WP Perfect partners. Perfect partners. Exactly what you had in mind 19