Building Trust Through Open Communication and Transparency with Adam Smith, President of HB McClure

[: 00:00:00

But at at the end of the day, it is, it is people that make all these things go and and people matter.

So, it's pretty.

This is Lead with Culture. I am Kate Volman, and on this episode we're talking about strategies to create a coaching culture with trust and open communication. We all know how important communication is in an organization, but so many leaders aren't being intentional around putting processes in place to foster better communication.

Statistics show that 86% of employees and executives cite the lack of effective collaboration and communication as the main cause for workplace failures,

My guest today shares some really great ways that he and his team are creating spaces for people to foster effective communication, share their ideas, and grow together.

Adam Smith is the president of HB McClure he has transferred skills learned from being raised on a dairy farm and from a long wrestling career to the business world.

Please enjoy my conversation with Adam.

back to

[: 00:01:19

so before we kind of dig into everything, I wanted to hear your perspective on how do you view culture? Like how would you define culture and why do you feel like it's important in your organization?

[: 00:01:52

[: 00:02:31

HB mc?

[: 00:02:52

And, and from a simplicity perspective, we've tried to. you know, keeping that simple. I think supply chain and inflation has impacted our business. I don't wanna say differently, but it's definitely impacted our business. So that's been one of the challenges. And then it's also impacted the, labor environment. So it's, added a lot of pressure to wages, so it's, it's changed the game there and we've just had to make sure we're open to pivoting and, open to, changing the way that we're managing our business, the way that we're creating value for our business, and the way that, that we're, empowering our people to add value as well.

[: 00:04:41

but is there a specific time in your, in your role where you kind of felt, oh my gosh, I gotta figure this out. Like, how, how did you decide to make decisions, you, your leadership team, on the direction of the company, the communication of the team?

[: 00:05:17

was not in my current role in: 2020

lly evolved over time. In, in: 2015

s and with Global having over: 2200

[: 00:08:32

That's what happens when you're in those leadership roles. So you, as a leader, as you are coaching your people, What do you find are some ways that you have been able to become more of a coaching leader so that you can build, create that boldness not only for yourself, but other people in the organization?

[: 00:09:16

So we ended up creating what we call voice of the field. we took volunteers, we kind communicated the organization, Hey, this is what we're trying to accomplish. We're trying to create a feedback, a more direct feedback loop from our field employees directly to the leadership team. it started with three people.

and it was one from each department. And it quickly grew to six. And, and now we're on our second run through we're running six month, sessions essentially. So it, it's monthly for six months and, uh, it's really been. Pretty eye-opening, I think both for our field employees and for the leadership team.

But it's just opening a conversation with them to help them understand the things that we're working on, the challenges that we're having, and then kind of hearing the same thing from our field employees. And then that group from that committee is really their main charter then is, is being that liaison to the field, helping them understand what's going on. You know, we certainly haven't fully shown up there, but it's really headed in the right direction. And that's just kind of one example. we're starting right now a women's affinity group, it's around, we want more women in our business. We want more, minorities in our business.

So how, how do we do it? Well, we can just talk about it or we can. Make a change that that helps, women or minorities feel, feel empowered to be in our business, feel empowered to make decisions, and, different things like that improve employee voice. and they're also really exciting from a culture perspective.

And then they, they matter and they change our business. And you have to be open. It's a hearing, different perspectives, and you have to be open to really tough feedback in those tough conversations that you mentioned. But, uh, it's been a really, really fun experience going through those and seeing some of our field employees be like, you know, they kind of look at you and they're like, they're asking really great questions, and then they see something from a different perspective.

And then you see that going both ways and it's, it's been really impactful.

[: 00:12:21

What is, is this just gonna be another meeting? is leadership really gonna listen to us? Are there really gonna be changes? So talk about the conversations, especially in the beginning. Like if someone's thinking, Ooh, I might wanna implement something like that in my organization. What, what was that like?

How did you structure it? How did you get those first three people and then six people, and then what are those discussions look like?

[: 00:12:52

So we're trying to create some consistency around that. So this has been a great, great way to communicate those messages as well, because we. an employee from each location within our business. So then they can kind of hear that and then then take that back to their teams. it's been a really great way to provide input and to hear their feedback, to say, Hey, you know, we're thinking about this and we're sharing some numbers, and we're sharing thoughts and realities of what we're facing and getting their feedback.

it's been. A great experience to go through that with the team. but it really has become the, the voice of the field.

And, and again, it's not perfect, but. I feel really good, much better than I did eight months ago before we started it with, the amount of information that's going to the field and, coming back to the leadership team, as a result of, of these meetings.

[: 00:16:37

There's people that are, in one area of the business where the, the leadership team might not really understand the frustrations or challenges. And so when you give them that opportunity to come together and talk about those challenges, then everyone knows what's going on. And it could be the smallest, easiest fixes.

That's what I love so much, is that when you're opening dialog, there are things that can be easily changed that would make the culture that much better and the people that much happier.

[: 00:17:21

So, Tracking those changes is also pretty interesting. So we have another bucket on our teams page that, has all the things that we've kind of discussed and something like, we have our remote field service training for, that's our e r p that our technicians are. they're like, well, I don't know who to talk to if, if I have a problem.

You know, so that's on us, and we have the people that can help you or help our team members. But just showing them that information and then sharing it with the team, like, Hey, this is actually the point of contact. Like, yeah, this person can be helpful, but you know, this is the person that's responsible for this. And okay, now that we know this, now we've actually identified a single person that, that the group, Hey, this is the go-to. So that things like that also come from the group

I would love to touch a little bit on the ESOP and the decision to become an employee-owned company. Not only that decision, but then you know, how that impacted the employees.

[: 00:18:59

[: 00:19:02

[: 00:19:42

[: 00:19:47

ve come to now. I remember in: 2010

ing like, Hey, you know, it's: 3000

yees who have been here since: 2010

Where're Essent. Employees in the organization can nominate an employee for exhibiting a core value of that quarter. So we have four core values, so we do one per quarter. So we did this all last year. We're doing it again this year. and we've had some really awesome stories come through as a result of that game.

That, again, trust is our number one core value. it's tough because we have four core values. Always look at trust. Like if you don't have trust, you're probably not gonna have the rest. So it's trust team, great. And growth. so I, we always talk about trust is our foundational core value, but started with that. we had an employee in the office who, who was nominated, The education committee for our esop, views these without names and, and votes on the stories. So that's, that's essentially, it's pretty simple, but that's how we vote on the winners. so we were excited this first time. We, ended up voting for a 25 year employee who is our senior engineer, who literally that morning I had a conversation with one of. tight partners within the community with one of our general contractors, and they were just talking about George Peters as this guy who, you know, man of all things with George. We trust this guy, you know, he's smart and he does all these things, but we really trust him. And then, we have the core value game for trust. He wins it. And then, immediately after I tell him, Hey, we've got this a thousand dollars check for you. And he is like, well, I'm not gonna take that. I wanna do something for the field. Well, what we decided is we t throw a pizza party for the entire company on his behalf. So that was a really cool story. It was a little bit of a, you know, we don't expect everyone to, forego their, their check that they received. But we've had some really cool stories like that, and we've had three employees win when these. Three quarters and it's been really exciting and there's been some energy from there. But, uh, that was a little bit of a tangent on the the core value game, but it's still aligned with the type of culture that we're trying to create through the esop

[: 00:26:07

That they wanna do what's good. So I feel like that just creates that culture. it's less about the award, more about just this opportunity to give people that recognition. And it's not just from one or two people, it's from a group of people. that's a great way to kind of build trust and communication and culture within, within the team.

So anyone, can do that starting right now with their core. It might actually be an opportunity for some leaders to look at their core values, and they might not really have them solidified as much as you do

So I know you, you, you said you could talk all day about esop, which honestly it probably could be its own episode and just talking about the good, the bad, the ugly, everything.

I think you shed some light for, for some people, cuz I know it seems like a lot of leaders say, yeah, esop, we have to do it. And it's, it's great but it's good to also get the other side of it, which is some of the challenges that, that you might face when going through it.

And hey, it might not be the right decision for everyone to go through. So I think it's important to open up that dialogue and conversation. You obviously, care about your people. You have all of these really cool, Programs. You develop your team, you do e o s, which is great.

how do you decide what programs to implement specifically? I mean, we can even dig into Dream Manager, you know, how how was that decision to have someone on your team go through certification, become a dream manager, and run that program in the organiz?

[: 00:27:55

So I think just as leaders, you need to be, to be really open to changes in your business, to be open to changes with, people and, preferences and, customers and things like that. Where I wish I could tell you that, you know, I just sat back and, and came in and knew that, hey, this is what I wanted to do.

But really it comes through conversations like this. It comes through reading, it comes through, you know, discussions with people and with your network of different, different ideas. that could be helpful. And I think when, when they come up and they're aligned with your mission, vision, core values, I think that's really the core of the decision. Clearly there's, a financial component to that, but when you have people who, are fully bought in, and I'm not assessing that every single one of our people, are. Living, breathing our mission, vision, core values, but that's where we're headed. when that happens, they're gonna create results and, and you're gonna create something really special. And being a part of something special is, has been something that's important to me, whether it's been on teams that I've been in and my family and business. And we spend so much time at. So, you know, eight hours, 10, 12 hours a day. not being able to be in a situation where you can create impact and where you can enjoy that journey and where you can have fun doing what you're doing. there's a lot of things that, that aren't that fun, there's tough decisions to make as leaders and you know, we have plumbers that are crawling into sewage pits. You could view like, Hey, well I'm not gonna do that cuz that's not fun. Well, it's not so much about that.

Every single thing that we do every single day is fun. It's about enjoying the journey, being bought into the vision, and having fun with that process of just continually getting better and, and getting to that spot. Right. So, you know, some of these decisions, I would say are pretty easy, right? So the decision that, that we're gonna. You know, a couple hours a month, one hour face-to-face with, with our people from our field employees. it's a pretty easy one, right? I mean, it's aligned with our mission, vision, core values. It's aligned with continual progress, with transparency. so those are pretty easy. And I think it's just through, through conversations, you, you make progress and you create, a more positive future. the Dream Manager's a little bit different it would be a failure for me not to credit Bob for, uh, kind of being the initial person for that. Now, we had a conversation. He told me about it. I'm like, yeah, I'm in. Let's do it. again, it's the, the thing that has gone really well for me at HB McClure is, My personal mission, vision, core values is highly aligned with, with the mission, vision, core values here. Right. And I think if, if you're in a situation where you don't feel like that's happening, you know, whether it's you as a leader or, or you as an employee, that that's a really tough spot to be in. And, and I would encourage you to, to get into a spot where you feel like that is the case. But it, it has been the case for me.

And, and the dream manager is, is very aligned with. My view, of really anything's possible, right? So, the idea of, of creating goals, I mean, probably seems like I'm, uh, embellishing this story, but, when I was in fourth grade, I, I, there was a scroll in Mr. Robinson's class that we had to write down our goals. and that was really the first time that it, and I don't wanna say it, it didn't click for me then, but I had this goal of becoming a state champ and wrestling, and literally I had just started this sport then. I wanted to do that. I wanted to wrestle at Penn State. I wanted to be an engineer at, Penn State. And there were several other things on that list. But then, you know, you fast forward and I, you know, still have that sheet several of those things actually happen. But when you, when you're writing down your goals and you see. That's really what has allowed me to, to be able to focus and, and kind of dream big.

And, and this is really aligned with that. So I do it with my kids and we had done some form of, of goal setting prior to that, but this is kind of a different framework to, to help those conversations continue. I think that that makes it easy and, and it's really an exciting.

[: 00:32:39

And so, the opportunity to really talk to people about their dreams and what they wanna do is, is so impactful. And it sounds like you get to do that with the people that you work with. And you obviously, it's, you can tell the passion that you have for the work that you do, which is amazing.

And when you have that kind of passion, it just spills over into your team. Your team knows, like, they feel like, oh, Adam cares about me as an individual. Which is important. Especially cuz like you said, some of your guys are doing really tough work. They're not just sitting in an office,

[: 00:33:30

So them judging me and my actions doesn't really matter because they're not seeing it. So you, you also gotta be really disciplined as a leader to, to be out talking to your people and to, to really see what they're doing. I still need to get better at. and our people still need to get better at it.

But there's no doubt that, being genuine with, with your folks and, again, it's, you put it in different buckets, whether it's your work, your family, your community. But at at the end of the day, it is, it is people that make all these things go and and people matter.

So, it's pretty.

[: 00:34:27

[: 00:34:54

But, Kale has said, if you don't continually work, evolve and innovate, you'll, you'll learn a quick and painful lesson from someone who has I think as a leader, you, you've gotta continually, look at yourself and look at your business and challenge your business, and work really hard, to get better. so that's a quick quote that I think is really impactful. I. I actually just finished reading Atomic Habits, which is interesting because, it talks, I, I, it, it kind of challenges some of my views on goal setting. but I don't feel like it's necessarily a mutually exclusive proposition where it talks about, it's not so much about the goal, that that is what's driving performance. It's about how the people actually, run through that journey. and how they're disciplined about showing up every day. And, and that's really the difference versus the goal cuz so many people have a goal of say, you know, whether it's being a CEO or being a, a state champion wrestling or Olympic, medalist or something like that. But typically only one, one or a group of people, you know, actually get the opportunity to do that. So is it really the goal? Well, it's, it's more so about how they, go about putting themselves in the right environments and about being disciplined to continually work, evolve and innovate.

I think that we could talk at length for a couple of those, but I think that that's a pretty quick one

[: 00:36:40

it is the process. It is about showing up every day. You, we never, there's no like finish line, right? Like, you just keep going. You keep getting better, you keep growing. And what I love about some of the things that even you've said on this show is you've talked about ways that you.

Approached your team and you still say, I, I could get better at that. I could get better at that. And so I think that's an important piece too, because we can always get better at the work that we're doing. and, your team is lucky to have you as a leader, and I appreciate you taking some time to, to chat with us about what you, what you're doing over there, what you see as a good leadership and some of the, some of the things that you're doing at the organization.

you shared some really great resources for people to be able to take back and potentially implement with their teams, which is.

[: 00:37:29

Thank you for listening to this episode. I hope there was at least one idea from today's conversation that sparked your interest enough to take action to help you build a coaching culture and improve communication with your team. If you're interested in discovering how your team would rate the culture at your organization, we created a helpful resource.

It's our free culture assessment.

It'll only take about five minutes, and you'll receive a customized report which includes your overall culture score, as well as your score in each of the six immutable principles of a dynamic culture from Matthew Kelly's book, the Culture Solution. Get it at floyd consulting.com/culture. Thanks again for listening.

Until next time, lead with culture.