JOB PERFORMANCE INCENTIVES Fick says that performance-based incentives are the glue that holds his TQM program together, a way to give employees a stake and get everyone pulling in the same direction. “Having a bonus system tied to every job is critical,” he says. Gross margins have climbed 27% since the inception of the quality program at The Fick Bros. Roofing & Exterior Remodeling Co. That’s over and above the “humongous” amount in bonuses the company has paid out through the program.

Capizzi says that much of the excitement at meetings, and the initiative employees are willing to take, is due to recognition. “They’re chomping at the bit to grade the jobs and the people and to see the grade of the job financials because they’re getting a bonus,” he says.

Any incentive program must be logical, open, fair, and based on criteria that employees can control. Fick and Capizzi determine bonuses at the meetings and pay them almost immediately. Feurer handles bonuses in separate meetings, paying “Beat the Budget” bonuses weekly and an additional production bonus monthly if crews hit certain levels of installations. Frazier pays performance incentives based on quarterly net profit goals.

EXPECT CHANGES, BIG AND SMALL Get a TQM program going and you’ll quickly find it changes your business in ways both small and large. Programs can create “great camaraderie” between salespeople and installers, Gustafson says, when installers see that salespeople “truly care what their opinion is,” and are willing to act on it.

The Fick Bros. trimmed its geographic market area and began to focus on high-end slate roofing jobs. At an employee’s suggestion, the company added a masonry division for chimney work and ultimately added “exterior remodeling” to the company name.

Whatever the size or state of your company, Fick advises contractors to act immediately to create a quality system. “If I look at it now, I couldn’t figure out how we survived for 50 years before our TQM program,” he says. “I wouldn’t dream of going forward without it.”

Capizzi suggests one of the best things a contractor can do is to find a mentor who has been through the process. But, mentor or not, just do it. “Doing TQM, even if you have a disorganized company, is better than not doing TQM at all.” —Jay Holtzman is a freelance writer based in Jamestown, R.I.