12/01/2023
How a lumber and building materials dealer improved their competitive position in the market by adding a Director of Operations to implement continuous improvement and establish a more metric-driven culture.
EXECUTIVE SUMMARY:
This full line lumber and building materials dealer needed an operations leader that could drive an operational turnaround. Misura Group recruited a young, humble building materials expert with a history of success implementing process efficiencies and metrics measurements to increase operational performance.
The impact:
Within the first 90 days, the new hire:
Improved their cut, pack, and laser mark production from 700 board feet per hour to 1000
Increased profit from a $500k loss to trending a $1m profit
THE CHALLENGE:
MARKET TRENDS
A full line lumber and building materials dealer with 8 locations across the west coast, serving tract production home builders, had fallen behind the market trends and needed an operational turnaround to improve their competitive edge.
INDUSTRY EXPERIENCE
Typically hiring leaders from outside of the industry, they recognized the need for building materials expertise, specifically a lumber operations specialist that could implement process efficiencies and a more metrics-driven culture.
OUR SOLUTION:
BUILDING MATERIALS OPERATIONS EXPERT
Based on the presented challenges and company goals, Misura Group developed the following scorecard for the position:
Proven experience in the lumber and building materials industry
History of creating operational success with measurements and accountability; operational turnaround
Production builder customer focus
Team leader – capable of mentoring and developing talent
The top candidate had a history of success creating a team culture where everyone rolls up their sleeves and contributes to success, no matter the title. A young and hungry yet mature and humble professional, they had the proven ability to implement metrics measurements and accountability to increase performance.
WEEKLY COMMUNICATION
The Misura Group recruiting team had weekly check-in calls with the client hiring team to stay on track. This best practice helped everyone remain on the same page throughout the recruiting and interviewing process, most notably allowing the team to act quickly when the candidate was also under consideration for a plant manager position at a different local company.
THE RESULTS:
The initial focus was on automation, implementing KPIs, and increasing bd feet per hour. Taking a culture that was more sales than operations-focused and finding ways to get better for free – get material in the right place, get the inventory closer, expand the load building area.
FINANCIAL IMPACT:
In the first 90 days, the location’s board feet per hour improved from 700-1000, and profit increased from a loss of $500k to trending $1m.
CULTURAL IMPACT:
The Black Belt leader laid the groundwork for implementing 5S. The employees want change and improvement; they see that leadership is concerned about removing the obstacles for them, which has created a lot of momentum for continuous improvement.
WHAT THE CLIENT HAD TO SAY:
“It was clear immediately that the hire was fitting in quite well and contributing quickly - which is just what the organization needed. We are pleased with the initial results and look forward to working with Misura Group again in the future.”
WHAT THE CANDIDATE HAD TO SAY:
“I enjoy working here and am happy I made the right decision. I have a great boss who knows the industry very well and is not afraid to make tough decisions, plus has trust in me to make tough decisions. I am getting a lot of great feedback from the yard already; the people enjoy being more efficient and having the autonomy to make improvements.”
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