Are We Actually Teaching Project Managers How to Run a Business?

I recently posted something on LinkedIn about how we develop Project Managers in construction. It reached nearly 90,000 impressions in just a few days and created a pretty interesting conversation, so apparently the question resonated.

The question was simple. When did you actually teach your Project Managers how to be Project Managers?

I'm not talking about teaching them Procore, how to submit a pay req, how your company processes a change order, or what you expect at the Monday meeting. Those things obviously matter. I'm talking about sitting down with them and explaining the business they are now responsible for helping run.

I've always looked at a construction project as a small business operating inside a larger construction business. It has revenue, labor, equipment, subcontractors, purchasing, cash coming in, cash going out, risk and hopefully profit when everything is finished.

We put a PM in charge of all of that, but how often do we actually explain how those pieces connect to the larger company?

A PM might know the project has a $25 MM budget, but does the PM understand what happens to company cash flow when a $300K change order sits unapproved for three months? Does the PM understand what missing labor production does to the profit everyone thought was sitting in the job? Does the PM understand why ownership cares so much about forecasting, or is forecasting just another spreadsheet accounting keeps asking for?

This is where I think we sometimes get training wrong.

We teach someone how to do a change order. That's important. But I also want that person to understand how that change order can make or break the project!!! BIG DIFFERENCE!!

Why does identifying it early matter? Why does pricing it quickly matter? Why does getting it approved this month instead of three months from now matter? What happens while the contractor is paying for that additional labor, material and equipment but hasn't been paid for the change?

Once someone understands that, the change order isn't just another task on a checklist. There is a business reason behind getting it done, and from my experience, that's where you start seeing a different level of urgency and ownership.

One of the first and best pieces of advice I received when I started in the field 24 years ago was, "Treat every day and every decision you make as if you're spending your own money, and you'll do just fine in this business."

That stuck with me, and I believe it's a big reason I was able to move up so quickly in my career.

Try This With One of Your PMs

Pick an active project and have a conversation without opening whatever cost tracking report you have (I hope you have something). As questions like these…

• Ask the PM where the project is making money and where it's struggling. 
• What are we owed? 
• What are you concerned about over the next 60 days? 
• Where are we using more labor than expected? 
• What decisions need to happen now instead of next month? 
• If this project finishes where you're currently forecasting it, what does that mean to the company?

Don't make it a test. Just listen.

There is a big difference between someone who can tell you what the report says and someone who understands what is actually happening with the business they are responsible for.

This Isn't Just About Project Managers

I'm using Project Managers because that's what started the LinkedIn conversation, but I approach training this way throughout a construction company.

Estimating is certainly a sweet spot for me after spending a large part of my career leading estimating teams and estimating billions of dollars of work. I don't just want an estimator knowing how to perform a takeoff and build an estimate. I want the estimator understanding what happens after the award when Operations actually has to build what was estimated.

The same applies to Superintendents, field engineers and other positions. Their individual responsibilities may be completely different, but I want them understanding how their decisions eventually connect to production, cost, cash flow and company profit.

That's really what separates the training I do from traditional technical training because it works and it matters! 

Teaching someone how to perform a task is important. Helping them understand why that task matters to the success of the project and the larger company is where you begin developing real role ownership.

And that's ultimately what most contractors are asking me for when we really get into the conversation.

Gerard Aliberti
Pro-Accel, Owner

EXCITING NEWS

Join our FREE Facebook Peer Group called Builder to CEO. I don’t know about you but I’m tired of the LinkedIn Algorithms and people fearing they’ll post something someone would reject. This peer group is built for ALL construction professionals both managers and owners. Let’s have meaningful conversations with the algorithm dictating who sees the post and without the fear of rejection. Looking forward to see you in the room! Link to page is here. https://www.facebook.com/groups/builertoceo

ALSO, check out the new updated website at www.pro-accel.com. We updated the training page, pricing, speaking, and more. 

Ways We Can Work Together

Role-Specific Employee Performance Training — Pro-Accel offers role-specific training workshops for Estimators, PMs, Superintendents, and Field Engineers focused on accountability, decision-making, and ownership. Reply if you want to talk about your team.

Fractional COO - I provide Fractional COO services for contractors who need stronger operational leadership but are not ready to make a $350,000 executive hire. I step into the role now, help get the COO work done, and build the systems, responsibilities, and expectations around the position. When the time comes to hire your full time COO, you will know exactly what you need, at a fraction of the upfront cost.

Bid Handoff Accelerator Process — A structured handoff system that closes the gap between estimating and field execution, dramatically improving project success.

Strategic Advisory — From organizational assessments to strategic planning and leadership development, we dig into how your business actually operates, identify where the breakdowns are happening, and build the systems and structure that drive real growth