Transcript
WEBVTT
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What is going on L&M family.
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I'm here you know I'm going to be a little selfish here because this is really kind of friend time my buddy, mr Jerry Alberti we connected on LinkedIn.
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He's out there making ways, figuring it out, learning how to best serve people, with all of the decades of hands-on experience he has in the construction space.
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He's the founder of Pro-Ax and he's out there serving growth-minded contractors on how to improve their operational performance, and so I'm hoping he'll give me a couple nuggets that I can apply to my weird business.
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But before we get to talk to Jerry, I want to give a shout out to our L&M family member, ms Melissa Williams.
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Melissa shot me this message and it lit up my day.
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She said I've made it to the pool planning section of your training course and it's definitely the type of info I needed to start implementing lean tools.
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Melissa says I've made it to the pool planning section of your training course and it's definitely the type of info I needed to start implementing lean tools.
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It's very informative from a practical.
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Here's what you need to do, standpoint and also there's how you facilitate the doing.
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So far it's been very helpful.
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Melissa, I appreciate you investing the time to like, click and listen to me, jam my jaws about something that I'm maniacal about, and I'm very glad to hear that it's helping you and the rest of the L&M family out there.
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Send me a note, send me a thought and also, I'm going to say it multiple times, but go and follow ProXL's YouTube channel, because Mr Jerry is the talent, the face, the energy behind that channel, and so let's get to know Mr Jerry.
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Jerry, how are you doing?
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Brother Jesse?
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Awesome man, awesome.
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It's always great to talk to you.
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We always have good conversations.
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I think we met like almost two and a half years ago, something like that.
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Yeah, you know, I was thinking about it this morning.
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I was like I know we had.
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I was in South Carolina and I can't remember why.
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I was there for a conference or something and you and I were on the phone and I can't remember why I was there for a conference or something and you and I were on the phone and I just remember when we had that conversation I was like man, like this dude's down, like he's good people, and here we are.
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You know our lives have been evolving along the way.
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Right.
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Yeah, man.
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So I definitely want to make sure that our listeners out there get to know all the cool things that recently launched.
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I also want to make sure they learn a little bit about your business and how it is you're serving and some of the things you've learned along the way.
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But before all of that, what are, like, the important juicy nuggets that people need to know about you, mr Jerry?
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First and foremost, I always knew I was going to get into construction.
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Man, construction always.
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It was always.
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And what's crazy is that nobody, except for my grandfather, who I never met nobody in my family was in construction.
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Oh really, as a young kid I just started building things around my house.
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As a really young kid, like my father always knew to keep scrap wood around the house because he knew I was probably going to take apart something that was not supposed to get destroyed.
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So he always kept that scrap wood for me to build something.
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And, long story short, I grew up down the block from a trades and technical high school.
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I started off in a trade and then I transferred to architecture and then I went to college for engineering.
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After three semesters I transferred out of engineering, I went to architecture and then I started working in the civil world and I started working with all engineers again.
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So it's been going on and forth, and after 20 years of working for self-performed GCs, I broke away.
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And here I am, I'm consulting and I'm helping contractors build and grow highly profitable businesses.
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You know, that's always my goal.
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It's an interesting trajectory and I love it because actually I was like I ain't doing construction, like I still have a negative reaction to the smell of lumber, because I remember helping my dad doing residential construction.
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And now I was 10, 11 years old, I wanted to be watching cartoons and dad was like nope, we're going to work, and so it left a bad impression.
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Anyways, fast forward, I'm in it.
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But you knew, you just said, like you knew, out of the gate you wanted to be in construction.
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I love that.
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Your pop said we need to get some scrap here, otherwise this guy's going to tear the house apart.
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I'm the youngest of three boys.
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I was the only one who really helped him around the house, painting and doing things.
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It was just something that I love to do.
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I love to work on my hands, but I took the technical side, I took the management side of things.
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Yeah.
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So what was it about working?
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Or what is it about working with your hands?
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taking some raw material and creating something that gets you fired up.
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I think it was the instant dopamine hits and the instant sense of accomplishment when you build that.
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It's instant, like that.
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I read a couple of months ago that you know, although there's a lot less people getting into trades which is changing with the generation Z but trades also have the highest sense of accomplishment as well, I think, because every day you leave and you go home and you fix something on a daily basis, and I think that's what it was for.
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Yeah, absolutely.
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You get to turn around and say I did that or damn it.
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I kind of dogged it today.
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I'm going to need to pick it up tomorrow.
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Right, right, right.
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You had those success metrics.
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You know every single day, Right exactly.
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Yeah, man, oh, that's awesome.
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And say okay.
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So you went to technical high school, went to college, went from engineering architect, kind of bounced around, what was it that helped you, like figure out how, which direction to bounce in those early days?
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It's just sticking to something, making a decision.
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I'm going to try this out.
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Try the engineering.
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It was too mathematically involved for me.
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You know, I always felt like the only route to go was structural engineering or something like that.
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I said, no, I can't do this.
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I want to be out in the field.
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I want to be around the equipment.
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You know, the greatest part about my career a big blessing in disguise was I was always a hard worker and my supervisors noticed that right.
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And when you find the young kid who's willing to work, they want to grab you and they want to put you on their jobs, right.
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So my first position was as an estimator.
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Then, after a year, I went out to the field.
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Then I was an assistant super and I quickly started going up the ladder really quickly.
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I made a post on LinkedIn about I developed a book and every new operation.
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I tracked everything that I did on every new operation and that book became like my Bible.
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It's actually right next to me.
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To me it's worth gold man.
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It's really worth a lot of money and I've been developing it for 21 years now and every new operation I just tracked everything as I went one year, two years, three years and as I would get back to that operation, I knew probably better than my supervisors what I needed to do to get that operation going, to do the thing.
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Yeah, and I went back to this book and I just kept.
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You know I was moving up the ladder really quickly.
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Anyways, I went from assistant super to super, assistant, project manager to project manager.
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Then my supervisors pulled me into the office.
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I was supposed to be in estimating for two weeks.
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Two weeks turned into five years when some miscellaneous couple months stints out in the field to go help out and of course I got the night shifts right.
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So I was going out like that and I was just estimating and then I went back out to the field and this time, when I went went back out to the field, I ran the jobs.
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I was the number one guy.
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So I estimated jobs.
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I went out to run the jobs that I helped get and the next thing you know, I just I started off with the $10 million jobs and I went to the $20 million jobs and I went to the $50 million jobs and then I started making moves from one company to another and then I went back to estimating and then every company that I made a move with they did different kinds of work.
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So if I was working on highways and bridges, and the next thing you know I was doing foundation work, and the next thing you know I was commercial work.
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I was dealing with commercial, I was dealing with roofers and glazers and and I was dealing with door schedules.
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So I got a really good background, man, and that and that's my story.
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You got a wide spread of experience in like multiple facets of construction, Because it's interesting, right, Like I say construction and I'm thinking commercial construction because that's my background People that aren't in construction they assume I'm talking about residential construction that doesn't include like civil, heavy civil bridges, infrastructure type construction or there's so many different facets and you got, I'm really interested.
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So you got the book.
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Do you have a title for that book?
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Your compilation?
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I actually once upon a time did have my construction Bible on it, but I took that out.
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Now I'm estimating project management info.
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I should probably name it something.
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I think there's something there.
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Jerry, I really think there's something there.
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Now, I used to have a list.
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It wasn't a book, it was a few pages long, maybe six pages, and my title for it was the oh shit list.
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Because what I did was when I went and started a new project as a plumbing foreman, the things that kicked me in the face, I would write that down, right.
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Anything that like eventually, whatever caused me like a real bad pain in the butt, emergency.
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Like man, I need to write that down because it's predictable.
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Floor drain, simple example the first time I ran a project they were pouring concrete.
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On Friday I got the plans.
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On Monday I had to get my sleeves and embeds in for the pour.
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So I jumped through my butt, figured out how to do that.
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We did it.
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And then the superintendent came to me on Thursday afternoon.
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He's like, hey, where are your floor drains?
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And I'm like, oh man, let me call.
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I call the PM.
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Hey, we need the floor drains.
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Well, the floor drains had three, four week lead time on them because they were special, fancy floor drains, guess what.
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They're not going to be in the pour.
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My GC wasn't happy.
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We had to box it out.
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That was one of those oh shit moments, and so I knew for the next job order, the floor drains first, because they have a longer lead time, like simple dumb things like that.
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That was my list.
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It was not as detailed as what yours sounds like, and so here's my question about that when did you get the idea or the practice to write down the steps of the different roles and the different companies that you were working with?
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Where did that habit come from?
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So I was always good with budget control.
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That to me, I think is one of my superpowers is I really understand what's going to go wrong a couple of weeks down?
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the line.
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I always understood the money aspect of projects.
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I always understood the concept.
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I remember the first super I worked for.
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He said Jerry, if you make every decision as if it's your money that you're spending, you'll do just fine in this business.
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You'll do just fine in this business and that stuck to me.
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That stuck to me.
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So, as I started gaining experience, after a couple of years the office used to have me track productions.
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Naturally, track productions when you're doing.
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I was in the first half of my career.
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I was on multi-hundred million dollar jobs.
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So there was a lot of productive work right.
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There wasn't like little Mickey Mouse work here and there.
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It was very productive.
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So for the rookie or the aspiring leader out there, when you say track production, can you give us an example of what that looked like?
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Right?
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I was just going to explain how that looked for me.
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Right In productive work.
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So when you're doing 15, 20, 30 shifts or something, I would track the average of three days, sometimes five days, of how much labor we spent, what the production was per day, of what the quantities were right.
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So the problem is quantities, what materials we used, what equipment we used.
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I would put I would have put an associated cost to that and I would come up with the average.
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I would also cost to that and I would come up with the average.
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I would also know and then I would come up with the average, you know, based on what the office wanted what was the unit cost, what was the cost per quantity?
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What was the unit cost or how many man hours it took to do one unit I like to work with how many units per shift and what was the unit cost, right?
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Yes, so that always made the most sense to me.
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So as I was doing that, I built up on that on my own, without anybody asking.
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I said you know what I got, the real juice of this operation.
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So now I started adding to it.
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I started doing exactly what you said.
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What went wrong on each day?
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What do I need to be careful for?
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What were the means of egress that actually messed up that production?
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What was the weather?
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So I just started to expand on that and actually on several of those procedures I actually wrote down what arguments happened on the project.
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So I really got crazy with it and it works.
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It just works.
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So it started off with hey, jerry, can you start tracking costs?
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Here's how you track a cost, and that's really important, that I should add.
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The first company I worked for was really good with training the youth.
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It was really good.
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The senior people were there for many years.
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It was a fantastic work, culture and nobody left.
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Nobody left, matter of fact, I'm going to take it a step further no-transcript to leave you oh man.
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You know I'm going to give good money too.
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Yeah, I'm going to double down on that because I've seen it.
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You've seen it out there, now that you're out there servicing multiple clients, I've seen it over and in the organizations that have leaders that and I'm going to add a delineation there that have leaders that invest in developing their people, they don't have a person an attraction or retention problem.
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They don't, they have others.
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They're focusing their efforts on other things.
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And the reason I point at leaders is because I've had the fortune of working for some amazing organizations that had amazing resources to help people develop and grow their careers.
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Now, when I was a foreman or an installer, I had my bosses, my foreman or superintendent.
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They wouldn't sign me up for the training because they wanted me on the job site.
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They would raise hell because I had to leave to go to the training.
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And so just the organization having the training ain't enough.
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They need to have leaders that understand the value of getting their people, equipping their people with new ideas, new thinking, new tools.
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And in one situation, specifically my boss at the time, Wesley Baker.
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He came in.
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He said you're going to be our trainer, put the training program together and it's mandatory and the guys are going to come in during the day.
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We're not doing this after-hours stuff anymore.
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I said whoa?
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He said and I know you're not going to like this part I need a list of the guys that don't come to the training, not the guys themselves.
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I need to know who their supervisor is.
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And I was like, oh, that's interesting, Well, supervisor is.
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And I was like, oh, that's interesting, Well, guess what?
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The first training they missed.
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I sent them the list.
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Them guys came to the next training because he made it clear to their direct supervisor that you don't get to pull them out because you got a delivery coming.
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You need to plan and accommodate for that.
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These guys are going to be in there once a week or whatever it was you plan for that.
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There's no reason for them not to be in this training.
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I said, oh my God, Like.
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Anyways, just want to say that for the folks out there that are looking to build their program, to reiterate what you said, Jerry, if you invest in your people, you don't have a retention problem and you don't have an attraction problem, and the leaders the like down the cascade of the organization, when they understand that it is necessary, they will make it happen.
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Sorry, I didn't mean to blab so much, oh no it's so true.
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That's what kept me on board for so long with my first company.
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So there you go.
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Yeah, man.
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Do you ever think like how did I get so lucky to end up these organizations and these type of great leaders?
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Because so many people out there in our industry don't.
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Yeah, I think it's a little luck.
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You know, I think it really is a little luck.
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I knew nothing.
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I knew nothing.
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I always wanted to get into commercial.
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I always wanted to get into either residential, I wanted to get into commercial.
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So I needed to take one more class my last semester and it was Wednesday mornings.
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I needed to miss, and most commercial contractors didn't want me to miss the Wednesday morning, so this one contractor was okay with that and you know, it's just.
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I mean, there you go.
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The rest is history and I'm so happy that happened.
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I still talk to the guy that hired me and said Jerry, you know it's great you went to college, it's great that you got a degree that's related to construction.
00:16:54.076 --> 00:16:58.567
But I'll be honest, everything you do from here on out, you probably didn't learn in college.
00:16:58.567 --> 00:17:08.490
It's up to me and he was the vice president he says it's up to me for you to go from where you're sitting on the other side of this desk to put you on this side of my desk.
00:17:08.490 --> 00:17:14.266
And it goes right back to what you said it's up to me to train you to be the next vice president in this company.
00:17:14.266 --> 00:17:32.451
And he knew nothing about me, jesse, and that was the leadership that trained me for 14 years before I started getting my entrepreneurial itch and I started making moves not knowing that I had my entrepreneurial itch, which is another oh dude, we're going to get to that, no doubt, no doubt, cause I know that itch.
00:17:33.060 --> 00:17:48.270
But before we go to the entrepreneurial itch because I feel like I have like a special VIP front row seat to see what you're doing because we started talking about it way back when and seeing it evolve and grow and see make a shift in a move, I absolutely love it.
00:17:48.270 --> 00:18:18.325
But before we get there, you mentioned that you were estimating, you were estimating for five years and the tracking production, which I will go to the grave saying that's where it's at, when you understand your production rates, your install rates whether you've like factoring in the dollars is easy, that's just multiplication, but what you understand, the job was estimated to move X amount of square feet per hour and this is how many people you have doing it.
00:18:18.325 --> 00:18:22.413
So this is how many you should be moving and this is what you're actually moving.
00:18:22.413 --> 00:18:28.909
That data right there will transform your business because you can make decisions to align them and improve that.
00:18:28.909 --> 00:18:30.351
Decisions to align them and improve that.
00:18:30.371 --> 00:18:33.335
Now, in the time you spent, I get to see your post.
00:18:33.335 --> 00:18:40.259
You post.
00:18:40.259 --> 00:18:45.307
There seems to be a common thread about the disconnection between estimating and operations and I'm wondering the book Jerry's Bible.
00:18:45.307 --> 00:18:56.424
How much of the content in your notes in that book would help people understand the value of the connection between estimating and operations.
00:18:56.644 --> 00:18:58.609
To me, it all starts in estimating.
00:18:58.609 --> 00:19:01.845
Right, and obviously we're in the construction business.
00:19:01.845 --> 00:19:07.601
That requires an insane amount of cash flow and as business owners, we need to make profit.
