When Scovell and Wolfe joined forces in 1989, their emphasis was spec remodels, and basic logic dictated who would do what. Scovell, who had been a loan officer at a bank, handled finances and sales. Wolfe, who had been an appraiser and had done spec remodels before, found the homes and spearheaded their design and construction. Their roles later reversed as the company matured, with Scovell overseeing sales and production, and Wolfe managing finances and administration.
Until earlier this year, Durosko oversaw production at Sun Design and Gallagher managed sales and design. Then the two implemented some organizational shifts and effectively traded places. Gale says that this flip was courageous as well as smart. “They said, ‘you know, we both have to learn the other part of the business.’ They recognized that they would both bring a whole different perspective” to their new responsibilities.
It’s especially critical that all partners understand their company’s finances, Case says.
Communicate Openly Successful partners talk about the business on a regular basis, but that’s only half of what’s needed, Gale says. “There should be frequent communication on two levels. The first happens all the time, when you talk about how the business is doing and make sure that you have the tracking and measurements necessary.”
Less common but equally critical, she says, are “how are we doing?” discussions of the partnership itself — issues that don’t always appear on the bottom line. “Make this a check-in at the start of the partner meetings,” she suggests. “Ask, ‘Are the ground rules still working for us? Are there any things that I’ve done that might have upset you? Is the partnership healthy?’”
Durosko and Gallagher meet every other week for a two-hour owners’ meeting, where they discuss all areas of the company and establish their respective goals and deadlines. Among other points of check-in, they also discuss issues that they might not completely agree on. “It’s important to make sure we get on the same page,” Gallagher says, rather than send conflicting messages to their staff.
Communication ties everyone together at Legacy Construction, Olson says. Not only are there regular meetings, but meeting agendas are maintained on the corporate server, where all employees have access to them. On the rare occasions when he and Shaurette disagree, Olson usually backs off. “I decided that since I’ve placed my trust in him to oversee day-to-day operations, it’s in my best interest to defer to his judgment,” Olson says. “There’s something to be gained in his making the decision. And he’s going to have to live with it sooner than I am.”
Wolfe and Scovell also pick their battles. “If one person feels extremely passionate about something, you defer,” Wolfe says. “It’s like a marriage; you know what the hot buttons are, and what not to press.” (But sometimes, he notes, “you press anyway.”)
Silver Bullet’s culture of communicating goes back to its partners’ days as art students at the University of Minnesota. “We would put our art on the wall and everybody would critique it,” Welton says. “That’s kind of how we do things here. We all have respect for someone else’s point of view.” Streich agrees. “Critiques are a long-standing part of a fine arts education, and I guess we absorbed the tradition pretty deeply.”
When they disagree, they “hash it out” in private, Streich says. “Facts are very, very important to us,” he adds. “If Gary says, ‘I think we should do this and these are the facts as I see them,’ he can sway me. The way I see it, this is not life or death. My ego isn’t tied to this.”
Should conflicts persist, successful partners agree there’s an issue and ask for help. As with marriage, Case says, “if you’re stuck, bringing in a third party to mediate might keep the partnership from going down the tube.” Sources of help can include independent peers, business mediators, and local universities. “But,” Case adds, “you both have to be in the room.”
Trust But Verify Successful partners “can’t be looking over each others’ shoulder all the time,” Case says. Establish your respective areas of oversight, be accountable to one another, then get out of the other’s way. “Trust is a big element of our partnership,” Streich says. “I may be questioned, but I know I’m not going to be second-guessed. It’s the same for Gary: I may question him, but I’ll never second-guess him.”
At Sun Design, Gallagher notes that he, Durosko, and their key managers “run with their responsibilities” and are authorized to make decisions independently.
“If you don’t have that level of trust and respect, you shouldn’t be partners,” Olson says. “In order for each person to make the strongest impact, they have to know they have the support of their partners.”