Leadership Lessons for Managers: Learning from Jobs That Did Not Go Well

If there’s one thing I’ve learned in the construction business, it’s that not every job goes according to plan. Sometimes, despite everyone’s best efforts, a project falls short. The key to growing your business is not just accepting that things went wrong but understanding why they went wrong and what you’re going to do about it. That’s where a pay-for-performance culture can really shine, as it gives you the opportunity to learn from your mistakes and improve.

The Power of Feedback in a Pay-for-Performance Culture

One of the core principles of pay-for-performance is that it invites feedback—real, honest feedback. When your team knows their bonus is tied to the success of the project, they start to care a whole lot more about why things didn't go well. It’s no longer just your problem as the owner; it’s theirs too. They have skin in the game.

In a traditional setup, workers might shrug off issues and say, “Well, that’s not my problem.” But when they're in a pay-for-performance model, suddenly it is their problem. If a project goes sideways, they want to understand what happened because it affects their bottom line. This shared investment in the outcome means you start to get real, actionable insights from your crew.

Dig Deep Into the Details

When a project doesn’t go as planned, you need to dig deep into the details. For example, maybe the cabinets were a quarter-inch off, or the paint wasn’t quite right. In a typical setting, these issues might go unnoticed or unreported. But in a pay-for-performance culture, your team will not only notice—they’ll want to understand why it happened.

Was it a measurement error? A delay in getting the right materials? Did someone miss an important step along the way? Whatever the issue, you’ve got to get to the root cause. This is where you can start to identify patterns, pinpoint areas for improvement, and prevent the same mistakes from happening in the future.

Addressing Systemic Issues

Now, let’s say you have a situation where the problem wasn’t even the fault of your workers. Maybe the issue was with the manager who kept ordering the wrong materials, or maybe the crew kept getting sent to the wrong job site. It’s frustrating, and it's costing everyone money.

The first step is to recognize that these are systemic issues, not individual failures. You’ve got a procurement problem that’s affecting the team’s ability to earn their bonuses. And believe me, your workers are going to be the first ones to tell you when something like this is going on. Why? Because it’s costing them money now, not just you.

Traditional management might say, “Well, that’s just how it is,” but that’s not how you build a high-performance culture. You’ve got to take ownership of these issues, fix the processes that are broken, and ensure that your team has what they need to succeed. This might mean sitting down with your supervisors, your suppliers, or your delivery teams to figure out why materials aren’t arriving on time or why orders are consistently wrong.

Creating a Culture of Accountability

One of the most powerful aspects of pay-for-performance is that it creates a culture of accountability. And this accountability goes both ways. Your workers should feel pressure to perform, but so should you. If they’re not hitting their targets because something outside their control went wrong, you need to address it—and fast.

It’s not just about holding your workers accountable; it’s about holding yourself accountable too. When you make it clear that you’re in this together, your team starts to understand that you’re all working toward the same goal. They need to know that if the job doesn’t go well because of something you did, you’re going to take responsibility, just as you expect them to do.

Engage Your Team in Problem-Solving

When things go wrong, involve your team in finding the solution. They’re the ones on the ground, dealing with the challenges every day, and they often have the best insights into what’s going wrong and how to fix it. Create an environment where they feel comfortable speaking up and sharing their thoughts.

Ask questions like, “What do you think went wrong here?” or “How can we avoid this in the future?” By engaging them in the problem-solving process, you’re not only showing that you value their input but also empowering them to take ownership of the solution.

How to Handle the Frustration of Missed Bonuses

Let’s talk about frustration—because, let’s be honest, there’s going to be some when bonuses are missed. If your workers aren’t getting their bonuses because of factors outside their control, it can be demotivating. It’s critical to address this head-on.

Be open and honest with your team. Let them know that you’re aware of the issue and that you’re working to fix it. Explain what steps you’re taking to ensure that this doesn’t happen again. This transparency builds trust and shows your team that you’re committed to their success.

Make Adjustments and Learn

Every job that doesn’t go well is a chance to learn. Was it a scheduling problem? Were the materials wrong? Did you underestimate the amount of time or labor required? Whatever the issue, use it as an opportunity to make adjustments.

Create a process for debriefing after every project—successful or not. Sit down with your team and review what went well and what didn’t. Encourage them to share their insights and suggestions for improvement. This is where you’ll find those golden nuggets of wisdom that will help you avoid the same mistakes in the future.

Data Is Your Friend

In a pay-for-performance model, data is your best friend. You have real-time feedback on what’s working and what’s not. If a job isn’t going well, the data will show you why—whether it’s a scheduling issue, a material shortage, or a skills gap. Use this data to make informed decisions and course-correct before it’s too late.

By tracking performance metrics, you can quickly identify trends and address problems before they become bigger issues. This proactive approach not only helps you learn from the jobs that didn’t go well but also ensures that future projects run more smoothly.

Feedback is Also Your Friend

Learning from jobs that didn’t go well is an essential part of building a successful construction business. In a pay-for-performance culture, you have the advantage of a team that cares about the outcome just as much as you do. They want to understand why things went wrong, and they’re motivated to find solutions.

By fostering a culture of feedback, accountability, and continuous improvement, you can turn every setback into an opportunity for growth. Take the time to dig into the details, address systemic issues, and involve your team in problem-solving. When you do, you’ll not only learn from the jobs that didn’t go well but also set your team up for success on the ones that do.

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