PCG Connect
from Performance Contracting Group, Inc.
1PCG Series: The Origin Story
Jason Hendricks and Pat Roth dive into some of the behind-the-scenes conversations, business-case examples, and industry anecdotes that helped shape the 1PCG announcement. The entire conversation is based on questions YOU submitted.
Episode Notes
/Transcript
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This was my personal favorite question and a shout out to, Brian Capp, longtime listener, first time questioner in Phoenix. Who is better looking, Pat or Jason?
Jason Henricks:Easy.
Pat Roth:Depends on how many cocktails you gotta do.
Mel Renfrow:Hi. Welcome to the 1PCG podcast. I am Mel Renfro. I work in strategic development and marketing, and I am gonna be your host today. So back in August, we heard about 1PCG for the first time.
Mel Renfrow:I was fortunate enough that I was able to be in a q and a session where I got to ask some questions to get a little bit more details around 1PCG and what that means exactly. So we wanted to afford everyone else that same opportunity. So today, I have roped Pat and Jason into the studio here, and we've taken questions from all of you, and we are gonna find out a little bit more about what 1PCG is and what it means to the rest of us. Us. Okay.
Mel Renfrow:So let's dive right in. Welcome to the studio. We haven't named this officially yet. We're still working on on a good name for it. I can tell you the very first studio, which was in the old training building, literally was in an old, janitor's closet.
Jason Henricks:It's a little bigger?
Mel Renfrow:It's a little bigger than that. We called that one the shoestring studio. So, moving on up, the next studio, which was in the building next door, it was great because it was right on the other side of the bathroom, so we could hear things flush in the middle of that. So a little bit better than that one too. So we're getting in the podcast business here.
Mel Renfrow:When we think about communication, that's one thing we're always trying to get better at and we're trying to extend the footprint. So this is another way that we can communicate. We all know we have the email thing down. As a company, we have a lot of windshield time where people are driving around from job sites to job site and to branch. So, hey, this is another way that, we can get out there.
Mel Renfrow:And I know, Jason, you're a big podcast fan.
Jason Henricks:Yep.
Mel Renfrow:Right?
Jason Henricks:Yeah. I think, hey, whether it's email, whether it's video, whether it's, you know, in person podcast is just another medium that we could connect with our folks. So, hey, it's not for everybody. But I think there are people that enjoy, you know, like you said, when they're driving in between, you know, either home and office or between job sites. I think it's a great opportunity to plug in and just kind of catch up on what's going on, whether it's for a company or whether it's for a a area of interest.
Jason Henricks:And I think it's just another opportunity for us to communicate and connect with our folks.
Mel Renfrow:Agree. You listen to any podcast, Pat?
Pat Roth:I've listened to some podcast. I wouldn't say I'm a regular, but I've enjoyed the ones I've done.
Mel Renfrow:Yeah. My favorite is Smartless. Either of you guys listen to that? Haven't heard Smartless. It's good.
Mel Renfrow:It has Jason Bateman, Sean Hayes, and Will Arnett. We tried to get the 3 of them here today, but you have me and Andrew.
Pat Roth:You got us instead.
Jason Henricks:This is what we get.
Mel Renfrow:You have me and Andrew. Okay. So this is the debut episode. We're gonna be doing so it's the 1PCG podcast.
Pat Roth:Okay.
Mel Renfrow:We're gonna do a series. We asked people to send in some questions today. Some of those I know you have the answers to, some of them you don't. And that's why we made it a series. But first, let's get to know the 2 of you a little bit better.
Mel Renfrow:So the first time I met you, Pat, was in Indy. You were the GM and I was an admin trainer. But you started you grew up in Michigan, and this is your first and only employer. Right?
Pat Roth:Well, I've had jobs. I used to work at a video store.
Mel Renfrow:You did? Which one?
Pat Roth:It's called Video Choice. It was a little bit before Blockbuster. I mean, I was kind of the manager there.
Mel Renfrow:Big deal. Big deal.
Pat Roth:It was it was kind of a big deal.
Jason Henricks:Kinda was it VHS or beta?
Pat Roth:We actually were competing. Okay. My boss at the time believed Betamax would actually win, and they went out of business. They did. Of course.
Pat Roth:But, yeah, it wasn't good.
Mel Renfrow:I worked at National Video, so we we can talk offline.
Pat Roth:Yeah. You know, we had 4 stores and it was a great time. So any movies between, like, 8389, I'm an exceptional, critic and can offer you many suggestions.
Mel Renfrow:There we go. You know some trivia answers too there, I'm sure. Okay. So you graduate from Michigan State?
Pat Roth:Yeah. In 94, I interviewed with Mick Matthews. One of 2 interviews, I had a job offer to go work for a homebuilder in Columbus, Ohio, where I'd done my internship, got an offer from PCG. I think there was 4 of us at the time that came to work for PCI out of Michigan State, out of construction management program, and, started in Austin, Texas. Spent a couple of years there.
Pat Roth:I was in the cleanroom business working on some major fabs and went to Dallas for about 5 years, did an overseas assignment with our joint venture partner, Aardmak in Madrid, Spain, and then went to Indy. I was there for 13 years. So I did clean rooms my first 7 years, then learned the drywall business about my 7th year.
Mel Renfrow:So how long had you been here before you thought, hey, I have a shot at the leadership group?
Pat Roth:I don't know. I probably thought when I it's like the day I started, I'd be on leadership
Mel Renfrow:correction. You interviewed. Hey, Mick.
Pat Roth:Yeah. It's it's interesting. The patience you need to get, how long you need to stay and consistency of producing and just getting better
Mel Renfrow:Mhmm.
Pat Roth:In your positions. Being where you're at and delivering where you're at, I think is really important. And then the rest of it kinda takes care of itself. So maybe when I was about halfway maybe 10 years ago
Mel Renfrow:Yeah.
Pat Roth:You probably start thinking about, well, about 10 years ago, probably.
Mel Renfrow:It's probably a dream that's when you realize, like, wait a second. This this could actually happen for me.
Pat Roth:Yeah. So you
Mel Renfrow:said there were 4 of you that started in Michigan State at the same time? Any of them still here? Nope. Nope. Nope.
Mel Renfrow:Outlast, just like Survivor. Right?
Pat Roth:Brad Depew was 1 semester after me. K. And Rich Jadlowski. So pretty close.
Mel Renfrow:Pretty close.
Pat Roth:Yeah. And Dennis Pappas was about a year, year and a half behind me.
Mel Renfrow:Okay.
Pat Roth:So we got quite a few from that little group.
Mel Renfrow:Yeah. That's really cool.
Pat Roth:And if I missed anybody, I'm sorry. Staters. Yeah. Staters.
Mel Renfrow:Okay, Jason. How about you? Bill picked you up at a Starbucks. True or false? True.
Mel Renfrow:True.
Jason Henricks:True. Yeah. So mine is probably a less traditional route. Never in my wildest dreams that I thought I'd be in Lenexa, Kansas or certainly, the role that I'm in, for PCG. But, yeah, I mean, my my, my background was was heavily, in athletics, and, and I graduated from the University of Arizona with a finance degree.
Jason Henricks:So a little different route getting here, but it was, it was basically baseball or bus for me until, that train kind of ran out.
Mel Renfrow:So majoring in finance, what were you thinking? After the baseball, after you retired from the majors.
Jason Henricks:Yeah. So it was actually, I wanted to graduate with a finance degree, and then I actually took the LSATs. I was gonna go to law school, and then I ended up getting drafted to, to play for the Expos organization and then, you know, I guess the rest is kind of history from there.
Pat Roth:I just like to clarify, I did not get drafted. So I was a I was an unrestricted free agent.
Mel Renfrow:Oh, okay. I'll mark that question off. That was that was one I had up here. Okay. So let's go back.
Mel Renfrow:So the birth of an idea here. Have you have either of you heard of the marathon effect at all? No. Okay. So this is, William Bridges wrote a book called Managing Transitions, and I heard about it from Jim Laughlin with MDA when he was here for Timberline.
Mel Renfrow:So it's a metaphor when you're thinking about change or anything new initiatives. So, think about the Boston Marathon. I you might be shocked. I've never personally ran in the in the Boston Marathon.
Jason Henricks:I'm thinking about it, though.
Mel Renfrow:Yeah. Yeah.
Jason Henricks:No. You running in the Boston Marathon. Oh, for sure.
Mel Renfrow:For sure. It's on my bucket list. Yeah.
Pat Roth:Oh, we can sponsor you. You're smart.
Jason Henricks:So Maybe National Video could, but
Mel Renfrow:Yeah. I'll look that up. I oh, national video.
Jason Henricks:Hey. You never know.
Mel Renfrow:You never know. So okay. So think about the Boston Marathon. All the elite runners, they're they're at the front. They're at the very beginning of the starting line.
Mel Renfrow:And the rest of the participants, so the amateurs and the people that are just gonna jog, you know, they're back in in, in the race. So when the gun goes off, the fastest and most experienced people begin first. And that's you guys. You're the senior leader. So when you're thinking about this idea of 1 PCG, you've had it for a while.
Mel Renfrow:You've started the race. At this point, you know, you're the early adopters. And the rest of us, we haven't quite even gotten to the official starting line yet because, as you know, there's a lag. So when you think about it, we're all in the same journey. We're all starting at the same place.
Mel Renfrow:We're all gonna end at the same place, but we're at different phases and we have different perspectives of what's going on. So you've been sitting with this idea for a while, where the rest of us, we're just getting started. And I think that's a really good metaphor to think about these things because so often, and I do this myself, when I come up with an idea, even sometimes by the time I even say it out loud to people that I work with, I've thought through all of those things. And when I start answering questions, I answer it thinking that they understand what I understand. So when we go through these questions, I just think it's a really good way to think of it, like, the rest of us that are still cold back on the starting line here getting ready to go.
Mel Renfrow:So where did it start? This whole where did the idea begin? So what was the main motivator for the change, and how long has this been percolating? So
Jason Henricks:I guess I'd go back to probably, like, the the summer or the fall of 18, and that was probably the first time that Pat and I talked, about it, and and, you know, again, much like, much like you're talking about, with just, you know, this whole marathon effect, he and I kind of experienced that same process. Right? I had already kind of been thinking about some of this stuff, and, and now you're in the process of 1, how do you communicate it, and then 2, how do you then start rallying people and and, getting some momentum behind that thought and what it could be before you even say, okay, well, this is what we're doing. So that was kind of the first time it it was, I guess, communicated to to more than just myself. You know, at that point in time, I had, you know, talked to Bill somewhat as well, and got his some of his thoughts on it.
Jason Henricks:But, you know, it really kinda started around that point in time, and it was largely centered around succession planning as we were trying to, you know, kinda chart the course moving forward. But I think up to that point in time, it was I I think you could say, well, there were always points in time, at least in my mind, where I thought, you know, why why is it this way? And there's certainly a lot of historical, and institutional things, legacy sort of items that kinda underpin our structure as it is today. But as you start kinda questioning, okay, well, why is it that way, or what benefits us from keeping it this way, or moving left or right, you know, I think it's just a it's a great whiteboard exercise, and, you know, maybe for many of the the people listening, it's one of those things that, hey, there's some things that just never make it off the whiteboard, and there's some things that kinda take it to the next step, and then you get a little bit more comfortable what it could be or couldn't be, and then it just progresses. So
Mel Renfrow:Okay. So it started as succession, and then, you know, then it seems like, okay, it's gonna solve some of these other challenges that we're having too. So when Jason came to you, Pat
Pat Roth:Yes.
Mel Renfrow:Were you like
Pat Roth:Where's the easy button?
Mel Renfrow:Yeah.
Pat Roth:No. We were not we were not in agreement probably when the idea first percolated. I think part of that is where we were on our journey probably. Like, the idea makes sense. But at the time we were I think interior was doing maybe $700,000,000 a year.
Pat Roth:And I had a lot of ideas that with the HDL group. It was my I think I was only about 18 months into the role. And I think Tom had was just going into his role. And it was like, we already have a lot of change going on. Mhmm.
Pat Roth:So and I consider PCI, like, the perfect machine, so to speak. It was already perfect in its own imperfections almost Yeah. That you it's really it is dangerous, right, to mess with something that has generated the kind of outcomes for our employees. So I started with the pros and cons. That's kinda how we did it.
Pat Roth:We we worked through some of those, and then we had this explosive growth over the next couple years. Both divisions setting records, strength, recruiting, hiring the most people. And then the more and more we see these joint ventures and different things happening that are creating these opportunities, you get to a point of like, okay, we feel strong enough about the groups that we're ready to maybe tackle something new and what does that look like? And then you start kinda white boarding the idea that this could actually work and it makes sense. So it just I think the best part of getting to somewhere is actually having those disagreements along the way.
Pat Roth:Yeah. And I think not being prescriptive around every single thing that's gonna happen with 1PCG because we don't want to make every decision from the very top. I think there is we need the ideas to come back up and that's why we are not jumping in like it was gonna be like, hey, we announced it next month. It's happening. I mean, we this year was intentionally left open for us to work through the transition.
Pat Roth:So it didn't overwhelm the leadership, the people in the branches. So I think that was an intentional deal.
Mel Renfrow:Yeah. For me, personally, it makes me feel better hearing, you know, that you guys were cautious about it and, even there was conflict there, you know. But I I do like we can't yeah. The machine wasn't broken, so to speak, but you also have to evolve. So it seems like it's the right the right time to go through all of this.
Mel Renfrow:So when you think about besides succession, and you mentioned joint ventures and some other things, were there any other major motivators behind it?
Jason Henricks:Well, I think there was a couple of things that just really stood out. We had some some client meetings and, you know, you you kinda sit down with long standing clients and you think, okay. Well, there are so many things that we, you know, connect around whether it's core values, whether it's employee ownership, whether it's just a long standing history with the 2 firms, and then to sit down and actually hear from their leaders, like, well, we don't actually realize that you are in all of these locations and we don't actually realize that you do all of these things. It's a head scratcher a little bit, you know. And so you're wondering, okay.
Jason Henricks:Are we doing the best we possibly can to really align with our customers. And and I I take that more from a global standpoint because certainly all of our businesses are well connected in their local markets. But when you think about about, call it, 70% of our of our annual revenue is generated from our top 25 customers year after year after year. And so some of those are either national clients or regional clients. And are we effectively aligning with them, communicating with them, So they we we and they can understand how can we set up more mutually beneficial relationships and opportunities in more markets.
Mel Renfrow:So you you are already going down this road, but I remember was it McCarthy you went down to Texas and you were meeting with them? Can can you share that story?
Jason Henricks:Yeah. Yeah. It was it it was, I guess it was last November. Pat, Rick, who else was there? Sean Burnham, Ron Stafford, and, we had a great conversation.
Jason Henricks:Recent succession as well. So we had their CEO and their
Pat Roth:and a couple of their regional presidents.
Jason Henricks:So for McCarthy, a lot of our work is done in the California and So for McCarthy, a lot of our work is done in the California and Southwest region, but they have a couple of other regions that we don't do a lot of work with them. And those were the leaders that it it was kinda like, oh, wow. We didn't actually recognize, one, you're here, and 2, you do all of these things. And so it was a great opportunity for us to kinda share that and for us to have more localized connections with them to say, okay, if we want to make it more of a of an impact and have a bigger footprint with you in said market, well, then, how do we connect those people together? Because as Pat said, we don't want it it to be okay.
Jason Henricks:It's all through Kansas City, and that's how it goes. How do we kinda facilitate connection with with our customers or what have you at a local level where that can actually get driven to a point of execution?
Mel Renfrow:Yeah. That's an eye opener because, you know, that story specifically, McCarthy, how long have we been doing business with them?
Jason Henricks:25 plus years.
Mel Renfrow:Yeah. And I know, Bill had a personal relationship for years years with their president. So if they don't know everything that we do It's
Pat Roth:this is not a one off story.
Mel Renfrow:Right.
Pat Roth:We we we basically had a internal corporate setup that was our external facing setup Mhmm. Like, for our customers. They we set up our internal deal and we just mirror it externally. I mean, if you go to Super Bowl, they don't walk around and go, yeah, we're at the ISS Super Bowl party. They're at the performance contracting group outing at March Madness.
Pat Roth:It's not we're at the interior division outing. Our customers know us as PCI. And when you try to explain that, they're like, what? You guys do what again? It's kinda like PCI, PCG.
Pat Roth:Right? Does this give us the best opportunity to win, to win more often, and to create the most opportunity for the employees, irregardless of what group they're in today?
Mel Renfrow:Yeah.
Pat Roth:How do how do we look at a market as more holistically around the Seattle market, the Bay market, Knoxville, wherever market you're at, this should be like, wow, we're not in this sliver of product lines anymore. We have an opportunity maybe to invest in some new ideas, to work across branch lines, to to empower leaders to seize more market share or create more opportunity for the people. So it's we just had a lot of stuff that's been around since 1950. Yeah. I mean, we have been around a while.
Pat Roth:I know people don't know, but we were, you know, Owens Corning, PCG in 87. You know, we're 34 years in now as an organization, and basically everything came out of the OCF model. Mhmm. And so you have to examine your model, like, in spite of all our success, if we were going to make a change, now is the time to make a change because we are so successful. We can afford to have a couple stub our toe here and there.
Pat Roth:So
Mel Renfrow:Yeah. It's just a way to get our name out there even more. Like, when I would travel all the time, I'd be, you know, on the plane and people would ask where I worked flying out of Kansas City, I'd say, yeah. I work for the biggest construction company you've never heard of here in the Midwest. And so, I think this will change part it's already been changing, I feel like, just getting our name out there and and, being more marketable.
Jason Henricks:Well, I guess, you know, Pat mentioned a couple of, of our existing markets, but I think where it also continued to challenge us is when we are looking at when we were gonna go to Denver. Right? And it's just like, well, how are we gonna set this up? Right? And it it should be more outward facing.
Jason Henricks:Right? The market and the clients. Right? Why do we wanna be there? And who and how are we going to service it?
Mel Renfrow:Mhmm.
Jason Henricks:Instead of, okay. Well, we need an interior office and we need an ISS office. And then, you have these, you know, silos that get, you know, kind of created in more of the traditional model which is probably not the most effective and efficient way to actually go to market, in a new location.
Mel Renfrow:Makes us more scalable.
Jason Henricks:Certainly.
Mel Renfrow:I thought I thought you were inhaling to
Pat Roth:I I was gonna say something, but then I think that's gonna be your next question, I think.
Mel Renfrow:Go ahead.
Pat Roth:That was zoning in on you.
Mel Renfrow:I I I I'm not picking up on the wavelength. I was gonna switch. So what were you gonna say?
Pat Roth:No. I think it's just when you look at the markets and you look at how we're trying to set it up, if we can work more together Mhmm. And that all the leadership of, you know, whether it's the HTL, the ISS ops is now the OLT. The operations leadership team is what we're gonna be called. We all sink or swim together.
Mel Renfrow:Yep.
Pat Roth:We might have regions, but there is no that group has a vested interest for for success around the total, whether it's the northwest California, Central or East. I mean, it's how do we grow each one of those regions? And you asked was there a big reason we are at capacity
Jason Henricks:Yeah.
Pat Roth:In our current model. I think we looked at, hey, how do we cover, you know, the entire country with 5 interior VPs and 3 ISS VPs and plus the regional managers. We are at our limit with based on what we could actually handle the way we were actually doing it. Yeah. And by splitting it up, it actually gives us ability to bring up more leaders.
Pat Roth:Right? There's actually gonna be more positions available to to advance your career. And it's gonna create more opportunities for people who to to really shine as an entrepreneur in markets where maybe they didn't have access to this or that. But this whole thing is going to create the basically, the next setup that we need or organizational structure to basically leap forward. I think, like Lee Smithers said, hey, you guys could do 4,000,000,000 at some point and it won't be that far away.
Pat Roth:This kinda gets us set up. And for us, it's gonna be more at total resources and where can we get the most out of people versus where this is where I work, I can't work anywhere else, meaning, like, I can't pivot over here because I don't have access to to some of those things. So if you pay attention to the org charts that we put up, you'll see that we have our top 6 product lines have experts in every one of those regions and we start interplaying those around the type of clients we wanna work for, you see how you could flip this pretty quick to expand it.
Mel Renfrow:Okay. I'm right. I'm making a note here so we come back to that. But I think let's go into some of the questions because I think you've piqued a lot of interest there and, you know, different things you were talking about, like opportunities for roles and, you know, expansion and all of that. So we sent out, an email asking people if they had any questions, to ask you today.
Mel Renfrow:So thank you to everybody that responded. And I'm gonna go through some of those. They they went through themes. So, Jason, I think it was in your video, you you talked whenever you introduced the concept, you talked about how there's really 3 phases to 1PCG. The first is the initial rollout.
Mel Renfrow:So we're we've done that. We're in the middle of that. The next is the transition phase, and then we're gonna, you know, move into the post transition phase. So that's that's kinda how I have set up all the questions that came that came in. And again, you know, hey, you don't have everything figured out now, and that's okay.
Mel Renfrow:So if you don't know, say you don't know. And that's, again, that's why we made it a series so so we can come back and and share those things as they they come to the surface. So, thinking about the initial rollout, you already alluded to it. You said there's gonna be this awkward year, and and we're we're living it right now. So what can we expect over the next year?
Mel Renfrow:And when when will we find out some more of the specifics? And is there anything that you can share today that you didn't know, the last time whenever you were recording the video?
Jason Henricks:Wow. That's a that's a pretty broad one right there. Yeah. I think both Pat and I can probably add to this. I I guess, globally speaking, I wouldn't call it an awkward year.
Jason Henricks:Year of of trying to get our feet underneath us. Yeah. You know, you you come off of a record year like we just had and, you know, now, you're kind of balancing this parallel path of, well, we still have to execute on fiscal 22 plan and while not trying to get ahead of us too much on what 23 is gonna look like. But we need to do some planning in the background to be able to kind of flip that switch, if you will. So, yeah, there's certainly a lot more, I think, intention around, you know, when we have meetings, how can we have a joint session and whether that's a, you know, an in person session, whether that's a dinner, you know, an opportunity to have a happy hour together.
Jason Henricks:How do you just naturally start breaking down some of those self imposed barriers that we have as we kind of look ahead and say, okay, well, hey, in that June, June, July timeframe, you know, that's really where there will be a lot more, I guess, much more of a look as to what it's going to be. Up until that point in time, I think we're, you know, you some of the stuff's just gonna happen in the background. While we look ahead, I know Pat's been Pat and and Rick have been working on schedules and kind of how all of that interaction is gonna kind of look. But, yeah, I think it I think this is an excellent forum for us to continue to communicate and get out and answer some of the questions that people have. Now I think this is a great setup for us, you know.
Jason Henricks:I mean, what we want is for people to have an opportunity to raise their hand. What we don't need is after 15 months, you know, you have, you know, a 100 questions sitting out there that people wish, hey, I wish I would have an opportunity to ask and I never did. This just provides them an opportunity to do so. And as things kinda get released or more, you know, more, more of the known becomes known, you know, we'll have, you know, several of these. You said it was gonna be a series.
Jason Henricks:I think that's a great idea and we'll continue to answer and and address any questions that we have up until the point of of kind of flipping the switch. But, I I think there's just gonna be more opportunity for us to to connect and and to be more comfortable about all of the opportunities it's gonna create as opposed to thinking about what it used to be and what it's not.
Mel Renfrow:Sure. Well, hey, for, Tracy in Wisconsin, I I stole that from Smartless. That's that's for the listeners out there that might not know. So HDL is the leadership team for the interior division. ISS Ops is the leadership team for the ISS division.
Mel Renfrow:So I think you're having separate meetings maybe early in the calendar year and then around June, you're that's when that, OLT, the operations leadership team, when they merge, that's when you're having your first official
Pat Roth:joint. The the first meeting we're gonna have is we're gonna be at the same place. We're gonna have strategic development's gonna do some some, joint sessions around, hey, team building and some things like that as working through change as our group because, hey, we gotta build our own norms again and kinda start over. But a lot of us have been together during the d twelve
Mel Renfrow:Sure.
Pat Roth:Era 10 years ago, so we're not starting from a a baseline of 0. I think there's a lot of trust already, between the groups. So we're gonna work together in January and then in June we will, we'll have our 1st combined meeting, which is actually kind of the beginning of the handoffs. If you're losing a branch or gaining a branch, we'll start kind of that process there. And then that's where the change is gonna happen in business planning and, each new senior VP will have their own week of business planning in, I think, the 3rd week of July is on the calendar.
Mel Renfrow:Okay.
Pat Roth:And then from there, we've kind of, you know, August, we approved the business plans for 23, and then October 1, the reporting structures change. But really that handoff is kinda happening in June, July, August. But, hey, as much as we want to change stuff, you know, a lot of that is it's happening above the branches, so that that reporting structure is getting changed. And our intent is that we have to deliver a result and be consistent with how we handle our clients, our customers, securing work, being safe. You know, at the branches, I mean, we are not trying to disrupt the branches, you know, that much really in 22.
Pat Roth:I mean, we're trying to hey, we got some new VPs, some new reporting structures, but that's no different than what we have all the time. We always have those transitions of people retire, you have a new, reporting structure. But at the end of the day, if you believe that we're trying to hire we we only hired 70 people last year, we needed a 100. We need as many good people as we can get throughout the entire organization. And this was never none of this was made to save money.
Mel Renfrow:Right.
Pat Roth:It was made to trampoline us forward, accelerate us forward, to create more opportunity for everybody.
Mel Renfrow:Right. Good deal. Okay. So let's go into the transition phase and had a lot of questions in here. The the biggest area I would, I categorized it as having to do with geography or structure.
Mel Renfrow:So what can or should people expect where there's an ISS and an interior branch in the same location? Are we gonna be combining those together?
Jason Henricks:I think the the short of it is, largely no. I mean, I I would hate to, you know, try to misrepresent it and say, well, hey, nobody is gonna be affected or no branch is gonna be affected. I would tell you largely, how we look today is how we need to and want to look moving forward. You know, as we start working through business planning in 23 or, you know, down the road, and as we start looking about what are the needs of those markets and how do we best attack in, you know, the needs of those markets or the clients that we service. Hey, we gotta look at are we set up appropriately or not?
Jason Henricks:And if and if we need to make a change, then we need to make a change. To me, whether it's 1PCG or whether it's how we're set up today, we should always be doing stuff like that. Right? Are we set up appropriately in this market? If we weren't here, would we wanna be here?
Jason Henricks:Right? Are we working for the right people? Do we have the right talent in the building? Are we executing on the right product lines? Right?
Jason Henricks:All of those things, I think, are independent of the the the change to one PCG. But as Pat said, I mean, our intent is for us to continue to grow, and this is just really that trampoline effect to come off of it. So whether it's from a safety standpoint, whether it's from a branch resource standpoint, hey, we have, today, we have $300,000,000 more in backlog than we did this time last year, and we want to and will continue to grow responsibly, and we are gonna need talented people across this country to do it. And I think you can really see the opportunities that get created when we say, okay. Well, it's really not about this branch or that branch.
Jason Henricks:It's more about here's the opportunity, and how do we best tackle it as an organization? And we're pulling together resources from across the country, to really execute on these high profile and mega JV opportunities, which is to the benefit of all of our employee owners.
Pat Roth:Yeah. Yeah. We intentionally did not try to make those branch decisions at the leadership group level, like this business should be combined with this business or any of this stuff. I think that needs to organically happen through the business planning process to be the most beneficial for all the people involved and to be right for the market. But what I will say is, when you think about where we're at, we have, like, 6 branches that are I think they're in the same
Mel Renfrow:The share space or No.
Pat Roth:They don't share space. They're in the same MSA, which is your statistical area, like, through the Census Bureau. So one of the things we've been talking about is, hey, would we actually have like, if you have a branch number, you're probably gonna have the same branch number. We're we're not trying to blow all that up. It might change, but if you have a, you know, a business, like, we're not gonna, like, oh, you need to sign out of your lease and pay a $1,000,000 so you can move over to this other office, and we're gonna combine it.
Pat Roth:We're not gonna make decisions just to combine the business. I mean, 2 record years for both divisions. A lot of success. We're not looking to, like, let's just start jamming everything together or breaking stuff apart. I mean, we have a lot of successful going concerns that we need to continue doing that.
Pat Roth:But where, hey, it makes sense for us to be together. We we might be together in the future. But what we aren't gonna do is, hey, we wanna go to Atlanta. Interior is not gonna open a new office in Atlanta Right. Because we're already in Atlanta.
Pat Roth:Right? We're gonna look at things more. How would we do this as efficiently as possible?
Mel Renfrow:I think that's a a relief. At the end of this, we're gonna have some, like, rapid fire, myth busting, like, some of the things that I've heard people talking about. But that was that was a major concern of a lot of people. Like, hey. If there's 2 branches in the same area, does that mean that it's automatically under kind of this geography thing.
Mel Renfrow:Nope. Let's move on, mister geography thing. Nope. Let's move on. Mister finance category is
Pat Roth:Thank you. I'll go ahead and pick
Jason Henricks:that one.
Mel Renfrow:Yeah. Yeah. Yeah. I I also have a baseball question for you. So financial reporting or the goals.
Mel Renfrow:So let's talk bonus structure. Is there any any change for now? No change to the bonus structure?
Pat Roth:The traditional current schedule will apply to both branches or both the existing. Traditional ISS branches will have their term schedule, Ontario will have their term schedule. And if and when, hey, those become tighter, more merged, more close together, other product lines are added. We will evaluate that at the bonus committee to make sure it's fair and equitable. But in general, if you have a chance to make a lot of money in your bonus program, you should still have a lot you know, the same opportunity next year and going forward.
Pat Roth:Like I said, we're not trying to save money.
Jason Henricks:Yeah. Yeah. And the threshold schedule is already the the same. Right? So there's really no change.
Jason Henricks:Yeah. There is no change to, you know, what you what your ability to earn at a at a branch level is today. You will have that same opportunity tomorrow.
Mel Renfrow:So when you look at the big joint venture projects where everyone, you know, that this came up like we're will pass throughs go away, basically. So when you look at setting up a job, if there's 2 different branch numbers there and they're both working at you know, they're trying to get as much margin as possible to hit their numbers for their bonus, How does it encourage is there something that might encourage, those joint ventures? I can remember it's been a long time ago. But when I was in the branch, it feels like one branch always feels like the other branch is, benefiting more than they are. Are there any plans there of where that will work?
Pat Roth:I mean, I think the way we're doing it now, which is the general managers are mostly working out the deals based on the resources they have available to put into the equation to make the job work. I think it's it's been pretty transparent. I I really appreciated, the teams working together and and that's that doesn't really change. I mean, I don't, you know, we can't go do a $100,000,000 projects without 4 3 to 4 branches being involved. I don't really see that changing.
Pat Roth:Yeah. So, really no change with with that and, you know, I think it's mutual agreement. Hey, you get what you put into the deal. There's no there's no freebies. Nobody should get a freebie or a long term entitlement.
Pat Roth:You know, you have to earn it, keep earning it, and evaluate each job on its own.
Mel Renfrow:Yeah. But I
Jason Henricks:think that incentive, I guess, that you maybe you were going at, I think the incentive is you you have the ability to be part of jobs that you may not otherwise be afforded the opportunity, whether it's not in your market or what have you. And now it's kinda opened the door to, I think, a lot more possibilities Mhmm. Outside of maybe your natural geographic area.
Mel Renfrow:It's true. So financial reporting question here. So will it impact financial reporting in any way? This came from a corporate accounting. So besides just creating where it can roll up by the region now, when the 4 regions as other than that, any major changes there?
Pat Roth:Nope. No. We will the one thing we are looking at is having a one level, like a MSA tracker, which would be able to roll up all those branches
Mel Renfrow:Mhmm.
Pat Roth:Into a market. Because we do a lot of studies. We get a lot of studies from McGraw Hill that show total construction spend, like, in in a region, and we are probably going to have designators that are like Bay, you know, Seattle, for total
Mel Renfrow:Right.
Pat Roth:That would have multiple branches roll up, like, just like we do now. Mhmm. But I think we as an organization need to be able to see, are we growing against the market trend or are we shrinking against the market trend based on where the spend is going as a total? And how do we deploy our resources the most efficiently to secure as much opportunity for the group? So I think that's one area we're looking at of just we did an analysis, we met with the carpenters a couple weeks ago and, it was really fun to actually put something together that wasn't talking about what we do in which division.
Pat Roth:Yeah. We just treated them like, get rid of that. We're just gonna just we're performance contracting. We either have an office in this market or we don't. Don't even talk about what product lines we do and we're not gonna do any of that.
Pat Roth:So when you actually start hitting all those, it's like a footprint, it just, out of the top 50 markets, I think we're in about 36 of them. Dang. Which is pretty cool. But we only do, you know, ISS and about 14 of them. We do drywall and about 22 of them.
Pat Roth:And they're not all overlapped. So it was it was pretty interesting to see the carpenters perk up about, like, oh, we didn't know you guys were here. We need to get you connected with with these guys. And, are you gonna be doing scaffold over there? Or whatever it was.
Pat Roth:It was just
Mel Renfrow:Yeah.
Pat Roth:It was kind of interesting to see, you know, what the opportunity was.
Mel Renfrow:Yeah. The lens just got much wider there.
Pat Roth:It got a lot simpler. It actually got simpler instead of bifocals. I was looking through the periscope or whatever
Mel Renfrow:you said.
Pat Roth:Yeah. You know?
Mel Renfrow:Instead of those glasses, a monocle?
Pat Roth:Yeah. It's like a more of a monocle because, you know, we always have to do that. Well, what do you do? Okay. Well, you need to call this person, but if you need this, call that person.
Pat Roth:We'll have to work through all of kinda how that shakes out. Mhmm. But I think as the more we're performance contracting and if you were traditionally in the installation ISS and somebody called you, you're like instead of saying, oh, I don't we don't really do that, we can say maybe, yes, we do. And you call your partner and you forgot a way to go do that work. Does that does that make sense?
Mel Renfrow:Yeah. Yeah. It does make sense. It's it's exciting when you think about it in the in those terms, like what's out there that we haven't even realized yet. So okay.
Mel Renfrow:You guys up for a break?
Jason Henricks:Let's do it.
Mel Renfrow:Okay. We'll be back.
Pat Roth:Alright. Thank you. Thanks.
Mel Renfrow:Hey. Did you know Ceridian Dayforce is now live? With Dayforce, you have digital access to your relevant HR, payroll, and benefits information anytime and anywhere. Dayforce makes it easy to view your earning statements, enroll in and select your benefits, request paid time off, access your tax withholding forms, and even update your personal information. Salaried employees can access Dayforce through the all apps page of their Office 365 account.
Mel Renfrow:If you have any questions about Dayforce, please contact the service desk by phone or submit a sharehold request. And now let's go back to the podcast. Welcome back from break. As I was washing my hands, I realized my sweater was on backwards the entire time, and nobody told me. So the second half is gonna be much more in sync because I'm
Jason Henricks:You're just gonna feel different?
Mel Renfrow:I am. A whole new me. I think
Pat Roth:I interview better on I think I'm a better interview on the, like, a Friday. Really? Thursday. Yeah.
Mel Renfrow:Okay. Why is that?
Pat Roth:Don't you, I I just feel like Monday's gotta get cranked up, you know?
Jason Henricks:Yeah. Case of a Monday. Yeah.
Mel Renfrow:It's a case of a yeah. Case of a Monday. I have a case,
Pat Roth:but I was just kinda like, if I had to rate my performance, like, a kind of scale, I would say Mondays would be one of my lower rated days.
Mel Renfrow:Okay. Good to know.
Pat Roth:But I'm I'm really this is fun.
Mel Renfrow:Yeah. I'm having a good time. You, Jason?
Jason Henricks:I'm good. I'm good.
Mel Renfrow:You look like you're having a blast. I know. I'm just giving you trouble. No. It's it is fun.
Mel Renfrow:So let's go into the next set of kind of the next, theme that we had that came across had to do with roles and career paths. So you started talking about this a little bit earlier, Pat. You were talking about how this is kinda, like, open it open things up as far as, career path goes. And so, you know, one question that came in, it's like, what would the org chart look like at the branch level for, like, duplicate position? So this is projecting into the future.
Mel Renfrow:Say you do have a market where it does make sense to kinda roll things up. What would that look like? Would you still keep and this is all theoretical. Right? Like, superintendents, would you have multiple superintendents, BAs, things like that?
Mel Renfrow:And then there's a second part to this question. And would product lines somehow play into that?
Pat Roth:Well, first part would be, hey, on a needs basis, I think we have to figure all that out. I don't think, like I said before, we weren't looking to smash businesses together and eliminate positions. So I think if we start with that and work forward to, hey, we need as many good people as we can get. Mhmm. I think we need all the good people we have.
Pat Roth:Okay? Right. So I would leave it at that. I think if you're a high performer and you've done well with the company, you're still gonna do well with the company. Okay?
Pat Roth:Now whether a title changes or something happens or we need somebody to go do something else, that'll all be part of the process of how we go through business planning and how this thing evolves over the next 3, 4, 5 years. I think it's not gonna be like, hey, we press this button and all of a sudden, like, it's just everything is perfect.
Mel Renfrow:Right.
Pat Roth:So I guess I would encourage people to be open minded and and, continue doing what you're doing. We need everybody.
Mel Renfrow:Yeah. I agree. And, hey, sitting where I sit and the things I help with with the leadership development portion is, you know, sometimes you have really talented people, maybe they don't, wanna move or whatever and they get stuck behind somebody just because they're the same age and the other person got there first. I think this is where it's really gonna open up some of those opportunities for people.
Pat Roth:What's the second part of your question? I think you had part 2.
Mel Renfrow:Oh, that was like 3 minutes ago. I forgot. No. It was, so just around product lines, if there would be any organization around, product lines. I I think you talked about that a while ago.
Mel Renfrow:Like, within the region, would you have product line experts? Or
Pat Roth:Once again, you have to deliver 22. We have to keep delivering in 23. So you're still gonna have people that are kinda they play in a product line space because that's their expertise. Sure. But I do believe we can be more diversified around being able to have multiple skills.
Pat Roth:Maybe you have ability to learn new skills, new product lines, you know. So we can put put you where you can generate the biggest benefit. You have the greatest opportunity.
Mel Renfrow:Mhmm.
Pat Roth:So do I believe, hey, you could do drywall and scaffold? I have a lot to learn. We have a lot to learn. How does all that work? I mean, we don't we're not expert in everybody else's division.
Pat Roth:So, you know, I've talked with Rick, you know, Rick Sefton. But, hey, I need education. Where where are my opportunities so I can learn? Because it is different businesses. It's different customers.
Pat Roth:So I think you need to be sensitive to that and not just rah rah, like, it's just gonna be fine. Everyone can do everything. Yeah. No. So you are gonna have people that, like, I'm an expert in the industrial insulation.
Pat Roth:I'm an expert in Cusco ceilings. I'm an expert. But if that market tanks, I'm smart enough, capable enough, I'm a you know, I know people, I know how to strategize and have relationships, and I can transfer those skills over to this. I think that's where we're trying to expand those opportunities is you don't need to be stuck in these slices all the time.
Mel Renfrow:Right.
Pat Roth:I think we can leverage those talents to do more.
Mel Renfrow:Mhmm. I agree. So there were a couple questions that came in, around the controllers. Believe it or not, they were not from controllers. So just asking, what will it look like?
Mel Renfrow:So let me find it here. So when you think about the controllers, have have you broken down any of of those? Like, right now, it's by division or by, you know, between interior and ISS. So will those cross pollinate.
Pat Roth:Division do
Jason Henricks:you wanna answer that one? I think what they've kind of roughed out right now is that instead of 4, you'll have 2 division controllers, that will kind of lead all of the controllers, in the various regions.
Mel Renfrow:Okay.
Jason Henricks:Without kinda going through, hey, here's what the northwest and California and central and the east is gonna look like. We will have 2 division controllers, and then based on the talent that we have in the buildings today, then that will get distributed out to, the various regions. But, hey, there's this isn't this isn't a, an opportunity for us to, you know, kinda turn these people's world upside down. So people that are already in existing businesses or working with existing businesses, I think a lot of that, much like what we're seeing on the operation side, is gonna stay the same. Could there be some, you know, change?
Jason Henricks:Hey, instead of having this branch, now you have that branch, and you're we're gonna swap with, you know, between these two controllers. That's certainly probably gonna happen. But for the most part, people are gonna stay, you know, aligned with the businesses that they've continued to work on. But, hey, I think it's a great opportunity for, whether it's them, I I think all of our people. I think it just is gonna open up our eyes to a lot of different opportunities, and, you know, Pat mentioned just let's stay open minded.
Jason Henricks:Let's think about what what it can be, and what role I can play in in making, you know, PCG the best it possibly can.
Mel Renfrow:So we had a couple, questions come in just around operations. So here's a good one. If our scope of work involves multiple disciplines, will one project manager be in charge of all operations for that particular project, or will it involve managers from the different branches? I think we're kind of already seeing this out on the joint venture projects.
Pat Roth:Yeah. I think, hey, where we have one branch type, like, Europe, we don't have multiple branches. Yeah. It's gonna be one branch will run that job, and somebody would come in that either has the expertise to support that product line or it'll be part of their existing deal, like, where you have, I don't know, maybe there's a drywall job or where you have a big scaffold portion, I would think you would almost operate like we're operating now, right, where scaffold expertise would come in to do their work and to drive while people would do their work and maybe it's a subcontract relationship, you know, pass through. I don't the fundamentals of how you actually do all that in the field, you know, the application of it, I think is not really gonna be that much different than what it is today.
Pat Roth:I think if you looked at what was presented on the org charts, right, when we did the video and Mhmm. Nobody's we didn't change anything in the branches, right?
Mel Renfrow:Right.
Pat Roth:We didn't, like, move GMs. Okay. You're gonna move from you're moving from here to this office or Sure. We tried to keep that. If you are making if you're a successful business and you're doing well, we're not trying to disrupt that.
Pat Roth:What we're trying to do is get the structure to have the same people at the same table working together for a region.
Mel Renfrow:So how does it work for the people out there that haven't that don't work at branches that have been involved with these big projects? So So when you think about Altium or or, like, Tesla, how does it work? Do you have, like, a main project manager that kinda runs the show then the all these other, you know, the branches they report up to that person? That's Correct. Okay.
Pat Roth:We set up a project org chart for every job. So it it would be the same thing, like, there's some major opportunities come out that I think we would love to get, you know, where traditionally would maybe just be a cleanroom job or I think there's opportunity for cladding. I think there's opportunities for IMP. I think there's opportunities for scaffold. I think there's potential opportunities for us to get mechanical installation involved.
Pat Roth:So how does all that work? Well, you certainly don't wanna set up 5 trailers out at the job site and have 5 different product line managers. You need leadership. Leadership is goes across all product lines.
Mel Renfrow:If you
Pat Roth:get the right leaders, we'll figure out all the technical aspects, you
Mel Renfrow:know? Right.
Pat Roth:Which is right? We we we talked about this in a big job in Arizona. It's like, we're not gonna operate with, like, 3 different branches operating on their own. We that is gonna go we're trying to put some of that behind us and think about more of how do we be as efficient as possible to go to market so everyone can play bigger than what they can today?
Mel Renfrow:Well, I think we're already doing that. Like, I how I referred to those projects, I called them by the project name, not the branches that were involved in those big Uber projects. Right?
Pat Roth:So so when you talk about technical expertise, right, like, somebody asked a question about project managers. Mhmm. Okay. So if I'm a project manager, Jason's a project manager, right, and we have 3 scopes, one of them I don't really understand, but that other branch provides the foreman for that other scope that I don't understand. That's how you cross pollinate and how you play bigger.
Pat Roth:Like, I don't have to know everything, but if I had people on my team that know this scope here, then I can go do this work.
Mel Renfrow:Right. And it sounds like too, more than ever, relationships are gonna be important. You know, when you talk about who's gonna be that lead PM, it's gonna be somebody that has a relationship with the customer or, you know, the players involved. So yet another reason.
Jason Henricks:And and this isn't new. I mean, you you think about, hey, when masthead went out to GlobalFoundries. Right? And and where where masthead was the only rigging
Mel Renfrow:Mhmm.
Jason Henricks:Right, branch that we had. Now, all of a sudden, we have PCI rigging. Scaffold has been up to GlobalFoundries. Right? We used to have, you you know, the this IMP business was kind of, I guess, blocked in Tampa.
Jason Henricks:Insulated metal panels. Yeah. So but it it was kind of just hidden down in Tampa.
Mel Renfrow:Mhmm.
Jason Henricks:Right? And so, you have a business that must plus or minus $20,000,000 a year. Right? We're doing over a $100,000,000 a year in that product line because we've been able to expand the technical expertise and the talent base across the organization. And we probably have certainly more than a $100,000,000 in opportunity that we have in backlog yet to work and certainly future opportunities.
Jason Henricks:So again, it's more about how do we create more opportunity for not only the company, but for all of our people.
Pat Roth:Mhmm. So, yeah, when you think about, hey, What is it gonna be? What where are these answers coming from? What have you decided? That's why we have a year to do this.
Pat Roth:I think we mentioned that earlier is, hey, you look at a state, you what you wanna see is leaders from both current divisions getting together in a room and what are we doing right now? What would we like to be doing in 5 years? And how do we actually get there?
Mel Renfrow:Right.
Pat Roth:Right? That that's where you get ownership of, hey, we kind of set some guidelines, like, hey, we need to know by 2025, we'd like to be here as an organization. How we get there? That's the general managers and the the talent and the branches and the regional managers, VPs, kind of, they gotta build their plan that works for their market. Right?
Jason Henricks:Right.
Pat Roth:So whether it's Texas, California, northwest, the northeast, page central, there is a play in all these markets. We could write them down. Right? And kinda like, hey. We'd like to go here by 25.
Pat Roth:Kinda set some guardrails. And then from there, you have to build that you have to go through the process. Right?
Mel Renfrow:Mhmm.
Pat Roth:So we'd like to do more work in Texas. And this is a simple one than, hey, we got great business. We have 4 businesses there. Right? Dallas, Houston, 2 in Austin.
Pat Roth:Mhmm. Well, we'd like to do more work in Houston. We'd like to do more work in Dallas. We'd like to what does that look like? Well, I don't know exactly how it all looks.
Pat Roth:I have an idea. But what you look for is, hey, all the leaders, you're doing 200. How does that become 500 in 4 years?
Mel Renfrow:Yeah. How
Pat Roth:do we collectively work together as a team to get there? Those are gonna be, like, the most fun things and then you start putting those little puzzle pieces in place, one at a time, because we're not in a hurry. Right? We're not Right. We are not gonna be in a hurry.
Pat Roth:We're gonna make strategic decisions that protect the company and yet keeps moving forward.
Mel Renfrow:Just basically exposing more people to those conversations where it was just at the leadership group level where you were having to talk about strategy and opportunities to cross pollinate. Now we're just taking it deeper into the organization. When you think about the future, we already talked about HDL, ISS ops. Are we gonna combine both divisions have innovation teams? Are we gonna be combining the innovation teams?
Jason Henricks:Yeah. I think I think that's a logical first step. You know, again, we we have 2 groups working in parallel paths trying to solve some of the same problems or many of the same problems. So those are the things that again, how do you bully how do you bring together the collective talent and the collective expertise, and entrepreneurial spirit to say, hey, what is best for the organization?
Mel Renfrow:Mhmm.
Jason Henricks:And really kind of eliminate some of these self imposed barriers that we've created. So, yes. Right? That's a great opportunity to kinda kick this thing off.
Mel Renfrow:K. Let's talk about customers or, you know, external optics, I guess. So what this is a really pressing one, one I've been wanting to know. What is the plan for customer events like Super Bowl, March Madness?
Pat Roth:Yes.
Mel Renfrow:Yes and yes?
Pat Roth:Yeah. We're still gonna have those events. We're we will have to sit down and reimagine what they look like. You know, we can't have 700 people or 500 people at one event. So we might just have some regional plays there, or, maybe we need to find a new golf course for March Madness that can host 36 holes.
Pat Roth:I know there's a will be a huge desire to do both.
Mel Renfrow:Mhmm.
Pat Roth:I think we'd like, the interior people would like to go to Super Bowl, and I think there's diocese people that would like to go to March Madness. You know what? There won't be either division, it'll just be PCI and maybe you get to choose and I don't have all the answers, but that'll be a fun one, I think, to to imagine what that could be.
Mel Renfrow:Yeah. And that had happened just to very small scale where you already had people because it made sense for their customer or the timing or whatever. Yeah.
Pat Roth:Yeah. So I think their event has over 200 to ISS's Super Bowl event's, like, 250. Yep. And I think the interior event, March Madness, about a 130. So we're gonna do those events, but they might just look different.
Mel Renfrow:Okay.
Pat Roth:Is that good? And I hope that's exciting for everybody because, I mean, I think they're those have been great events for both both groups and we're not changing those or canceling them.
Mel Renfrow:Yeah. I think people will be happy to hear hear that. So, thinking about the customer. And so what is the plan? A lot of this is just internal.
Mel Renfrow:Right? But what is the plan? How are we gonna market this externally or our way? And and what what's the timeline? What's kind of the strategy there?
Jason Henricks:I don't think there is a concerted effort to say, okay. Well, now we need to make sure we communicate to all of our customers that we're 1PCG. Right? We're not changing our logo. Right?
Jason Henricks:We we still are this is more of an internal play. Right? And it it's really around trying to create energy around alignment collectively inside this organization, so we can better attack externally and better service, the markets and the clients that we have great relationships with or clients that we wanna build relationships with. So PCI, PAS, Masthead, all of those brands are they will continue to be the driving force of of Performance Contracting Group. And so it's not like, hey.
Jason Henricks:Now all of a sudden, we're just all PCG. No. Where you are PCI, or where you are Masthead, or where you are PAS, you will continue to to represent those brands, and continue to find ways to grow those brands.
Mel Renfrow:K. That was a question that came in. So nobody has to throw out their swag if it has PAS or masthead or, you know, on it. So we're not switching.
Pat Roth:No. I think your website might look different.
Mel Renfrow:Sure.
Pat Roth:I mean, we haven't met we have a meeting with the marketing department
Mel Renfrow:in a
Pat Roth:couple of weeks. We're gonna start just kind of what can it be, what will it be. I mean, proposals, I know, hey, we got contracts, master contracts. We got, hey, how to how to stuff get routed through. Like, we have different software we use sometimes.
Pat Roth:We have different colleges where we recruit at. We have, like, recruiting is exciting because now they're just gonna be Yeah. You're gonna go work for performance contracting and a market. You don't get to really choose what division you're gonna be. Right?
Pat Roth:Mhmm. So I think it's just gonna be a little simpler. And then I think we're gonna be really keen on, hey, what product lines do we service nationally? And really in our marketing, thinking about our brands that travel really easy, our product lines that travel, like, hey, whether it's, you know, the scaffold, I think, has some capability to travel with the cleaner business, the rigging business. We have some businesses that it's hard to travel, like, hey, the drywall business isn't like you can just pick up and go
Mel Renfrow:Sure.
Pat Roth:You know, 8 hours away and do drywall. So I think we're gonna be more intentional around local you know, we had that slogan, local presence, national footprint. I think that was those were really nice words, but I don't think we ever really played the national part. I think if you look at the IMP stuff that's going on and the clean room business, and we are leveraging that national footprint. So I think that's gonna be a big focus on our hey.
Pat Roth:When you clear the noise out, like Jason said, I think 5 product lines are, like, 80% of our business. The rest of it is just stuff. Right? If you can really look at the top five that drives the results of the company, Which one of those can we do for every customer anywhere they wanna take us and and really plan to that?
Mel Renfrow:K. So we know there's not like a mass market email going out to vendors and customers like, hey, we're 1PCG, but what effects or what will what is the goal that will be visible externally? Even though this is an internal thing, what are you know, you've you've touched on it here and then, but what do you want to be visible to our external partners after this one PCG?
Jason Henricks:Hey, I think certainly stronger alignment, better communication, or more effective and efficient communication, different product and service offers offerings. Right? I think all of those things would kinda be tip of the spear. We don't we we aren't wanting to create confusion for our customers. Right?
Jason Henricks:We're trying to simplify that that touch point or those those communication points for for them and certainly for us. I mean, we we don't need to make it harder on ourselves, than it already is, and we certainly don't need to make it harder for them.
Pat Roth:Yeah. We don't wanna manage around a bunch of exceptions. Yeah. We do this, do that. But we will have to figure some things out where we have a big offices for both divisions in the same spot, that that will be an interesting what phone number?
Pat Roth:How does it show up on the website? How are we gonna do all that? I we don't know yet. I've been thinking about it all week. I really have.
Pat Roth:Yeah. Because I was like, I don't know what we how do we actually who am I if I'm in a branch? I don't know, you know, what I was this, what am I not? And the only thing I came up was, I am PCI.
Mel Renfrow:Yeah.
Pat Roth:And we're going to take all comers and, you know, whatever market opportunities come in, we'll get them to the right buckets. And if we could keep it simple like that, that, you know, I know we weren't together for 20 years, but we're together now and I'm gonna help you and you're gonna help me, I think we'll we'll be in a good spot. Even though I don't know exactly how it's gonna work yet Well I think it's gonna be we'll figure that out.
Mel Renfrow:Yeah. And you're not deciding it in a vacuum either. No. Which is good.
Jason Henricks:No. But and but I think also, you know, the reason why we we we went to the operation team level and above is because that's that is how we, you know, better connect our company together. Right? And it kinda goes back to, you know, we we have always touted that one one stock, you know, one dividend, one one opportunity. Well, this really plays to that.
Pat Roth:Mhmm.
Jason Henricks:Right? So how do we grow the total for everybody?
Mel Renfrow:K. Let's move into post transition. Get in the hot tub time machine. You're gonna go 10 years in the future.
Jason Henricks:There's a
Pat Roth:He just got out of the store. Yeah.
Mel Renfrow:There you go. I knew we'd get to some of those movies, Pat. So what does it look like? What's the ultimate vision of okay. We're past the transition.
Mel Renfrow:We figured out all these little details. What does it look like for us?
Jason Henricks:Well, I I think I think having an environment where we don't put these self imposed limitations on us, that we can actually move around a little more freely. We can really unlock the the talent and entrepreneurial spirit of our of our company, our people, our branches. You know, Pat touched on it. Yeah. We report on 25 product lines, but the top 6 generate 80 plus percent of our total revenue.
Jason Henricks:So, when you look at your market, you know, I think that just opens up opportunity for us to expand. What are we doing here? Right? What can we do here? And not be, well, we've only really done this, so this is all we will continue to do.
Jason Henricks:You know, I mean, hey, in Atlanta, or in Houston, or in Dallas, we we only do 3 of the 6. Mhmm. Can we do the other 3? Now, how do we actually go about doing that? We're not gonna solve that here in Kansas City.
Jason Henricks:That's where the local leaders and the regional leaders are gonna help us solve that. But it's really kind of unlocking these territorial divides that we've kinda had and just saying, okay, well, what do you want it to look like? And then having the ability to actually execute on that and not run into a a roadblock, say, oh, well, actually, that's that's the other division, so we can't do that.
Pat Roth:Yeah. We had a meeting with the the international carpenters last last week, and we walked through what we're doing, and they're really excited, right, about these opportunities where they're not currently doing maybe some work. So really, what does it look like? It's at every branch, like, metropolitan area can service our top 6 product lines. And what's the pace on how quick that happens?
Pat Roth:I mean, starts with the managers in those businesses and, hey, what what we can afford to invest in and how quickly we can acquire talent. And, not every market, you know, they say there's horses for courses. Right? Yeah. Our model doesn't play in every single market and sometimes you're gonna have to accept that, hey, We it just doesn't work.
Pat Roth:Okay. Fine. We're moving on. But, yeah. So we have there's quite a few things going on that are gonna be springboards for us.
Pat Roth:I think it's pretty exciting. I mean Yeah. For both sides. So
Mel Renfrow:I agree. So okay. We're gonna go into Mythbusters. Mythbusters. Rapid fire questions.
Mel Renfrow:So these are some of these were questions that came in. Some are just kinda, you know, word on the streets and things I've heard. Some of these you've already answered, but I'm gonna ask them again so to reiterate them.
Pat Roth:Just like to confirm we had the right answer the first time?
Mel Renfrow:I I would have told you you were wrong the first time. Wrong. Wrong. Okay. So, down and dirty quick here.
Mel Renfrow:So are we going by PCG now, or will we still be known as PCIPAS and masthead around town?
Jason Henricks:Around town, PCI, PAS, and Masthead.
Mel Renfrow:There you go. Will the branch names change, or will they stay the same?
Pat Roth:Same.
Mel Renfrow:Same. Well, you talked about ISS, Bay ISS earlier. So there might be some where we're but that's that's all internal. Right?
Pat Roth:Yeah. You're just gonna be Bay Area.
Mel Renfrow:Yeah. I
Pat Roth:don't know. Like I said, that's the one I we haven't I haven't quite figured out. Richmond.
Mel Renfrow:Richmond.
Pat Roth:Like, when you answer the phone, what do you say?
Jason Henricks:I was Virginia or? Go for Pat.
Pat Roth:DC. And I'm like so
Mel Renfrow:Okay. Is ISS getting phased out with more emphasis on interior? No. No. Are any product lines being eliminated?
Pat Roth:No. No.
Mel Renfrow:Will pass through jobs go away?
Jason Henricks:No. Probably not.
Mel Renfrow:Will GMs and senior VPs have larger authority limits for bid proposals and contracts?
Pat Roth:In progress.
Jason Henricks:But that that is really independent of 1PCG. That's just the size and scope of of the organization and the projects that are, I guess, more prevalent in in the marketplace today.
Mel Renfrow:So that that's me pandering. I knew that wasn't one PCG, but I know people have that question, so I squeeze squeezed it out.
Pat Roth:Well, I mean, it's a fine line between accelerating that, that deal and having your foot on the brake a little bit to make sure that we all know what we're signing up for and that there's a little bit of it's not to slow you slow people down, sometimes it's to give you cover that you're not out there on an island taking out a bunch of risk that maybe you made made a few mistakes. Right?
Mel Renfrow:Right.
Pat Roth:So those those authority limits, I guess, like, Top Gun, right, they're they're there for your safety
Mel Renfrow:Mhmm.
Pat Roth:And the safety of all the shareholders. So we do evaluate, like, I just sent in the request with my recommendations to Jason, what, last Thursday. So every October, we go through the authority limits to see based on how many bids have we done, how many things are going on, so on and so forth, and can we should should it increase based on the size and scope of the organization? Because what what you don't wanna do is just be inundated with so much reviews and everything else that you can't even look forward to what your next thing is you should be working on. Right?
Pat Roth:So we're in a little bit of a slight tipping point there probably with just workload and how big the organization's getting. But we have the ability to look at, like, bid volumes and, like, sizes of projects and that's what we're analyzing to see what it looked like from 5 years ago.
Mel Renfrow:Yeah. Well, that's good. Once a year, you're taking a look at I think the connection piece was, hey, if you're gonna have people that are overseeing more scopes of work that they're not the product line they're not familiar with, are they being put in the position when they do the bid review? I think that was where they were going with that.
Pat Roth:I do believe everybody's learned how to do bid reviews. Even if they weren't experts, they didn't come up. And I mean, there's a lot of people that didn't do clean rooms that are doing great jobs. There's a lot of people that weren't in insulation that have learned that business. You learn pretty quick.
Pat Roth:Mhmm. You know, the the how to do a bid review and then these scopes. And I think that'll be the same here. You'll have your mentors. I mean, hey, if you're getting a branch that you're not familiar with, you know, it's like you just turn the keys over and never talk to the person again.
Pat Roth:You're gonna that person is going to be your wingman to or wingwoman to top
Jason Henricks:There we There's another top gun. I love the top gun.
Pat Roth:Yeah. That's right. So so you're the one. I am the one. We were inverted.
Pat Roth:Inverted.
Mel Renfrow:What were you doing up there? Were you sad? It was pushed back. It was supposed to come out in December. They pushed it back to next May.
Mel Renfrow:Top Gun 2.
Pat Roth:It's May now? Yeah. Diane upset, actually.
Mel Renfrow:Yeah. Me too. This was my personal favorite question and a shout out to Brian Capp, longtime listener, first time questioner in Phoenix. Who is better looking, Pat or Jason?
Pat Roth:Easy. Depends on how many cocktails you got in your hat.
Mel Renfrow:Okay. I'm gonna so I wanna thank you both first for coming in and sitting down and having this conversation. I think it's gonna be the first of many, potentially.
Jason Henricks:I think so. Yeah. I've enjoyed it. Thank you, Mel.
Mel Renfrow:Yeah. You're not off the hook yet, though. We're gonna do some those were rapid fire that had to do with the questions that came in. So these are just personal rapid fire questions. Are you ready?
Pat Roth:Thanks.
Mel Renfrow:Okay.
Jason Henricks:Are we both answering the same question, or are you gonna kinda volley back and forth?
Mel Renfrow:We'll we'll see on how you do.
Jason Henricks:Okay.
Mel Renfrow:Okay. I'll go I'll I'll direct it though. So, Jason, what was the first concert you attended? Pearl Jam. Oh, good one.
Mel Renfrow:When?
Jason Henricks:My freshman year in college. Okay. Nice. Pat?
Pat Roth:U2. Sophomore year in high school.
Mel Renfrow:Is that Rattle and
Pat Roth:Joshua Cherie.
Jason Henricks:Yeah.
Mel Renfrow:Where?
Pat Roth:Silverdome. Oh my god.
Jason Henricks:Are you gonna No. Are you gonna light a lighter right now? I feel like
Pat Roth:Somebody was lighting a lighter in front of me. I can tell you that.
Mel Renfrow:I am very, very close. So what was the most recent concert that you went to?
Pat Roth:Harry Styles with my
Mel Renfrow:dog. Too? In Chicago?
Pat Roth:I was in Where'd you go? In Dallas.
Mel Renfrow:Okay, Pat. What's your critique of the show? Did you have a good time?
Pat Roth:It it was I would say the value per minute was not as high as I would have liked because it was a lot of money and it was only, like, 90 minute show.
Mel Renfrow:I would I
Pat Roth:thought it was too short. I was kinda like, really? That's it?
Mel Renfrow:Yeah. I would pay what I paid for my ticket to sit behind you to watch you at a Harry Styles concert.
Pat Roth:Quick answer. Imagine me buying the tickets, walking down and getting to my seats and seeing that they have a cameraman right in front of my seat. How did that go over?
Mel Renfrow:Did you write a did you write a letter? Okay. What was the most recent concert that you went to?
Jason Henricks:It's been a while. Probably Dave Matthews.
Mel Renfrow:Like, 1997 a while?
Jason Henricks:No. No. This was, like, probably mid probably 2,007, 2008. It's been a while it's been a while. I haven't been to a concert in a while.
Mel Renfrow:K. This is this is a good one. What is something people often get wrong about you? It's a tough it's a tough one, isn't it?
Jason Henricks:I thought these were like rapid fire. That's like deep thoughts.
Mel Renfrow:Testing your mental agility here.
Jason Henricks:It's 0 right now.
Pat Roth:No. I would say that probably the people that I that I think I get along with the best, we probably didn't get along with good in the beginning. Okay. I don't know what that answers, but all my best friends from college, like, we couldn't stand each other, like, the first few times we met and then somehow we're 25 year friends. So probably, bark is worse than the bite maybe?
Pat Roth:I don't know what the Yeah.
Mel Renfrow:What the
Pat Roth:thing is, but I don't know. It's just
Mel Renfrow:Means you're open. I take it as you're open, like, once maybe your opinion is open to change there. Right?
Pat Roth:Yeah. So I'm probably pretty guarded in the beginning and then kinda see how the water is maybe Yeah. Before you jump in.
Mel Renfrow:Yeah. Come up with anything, Jason?
Jason Henricks:I guess what I would say is that, I would hope that people realize that my intentions around, are around the winning in the spirit of the we. This is, you know, really about, you know, how do we make the organization better? And, yeah, I guess that's what I would say. There's really no agenda besides that. Just how do we win?
Jason Henricks:How do we win?
Pat Roth:Yeah. I think the legacy is is, hey, every group has a legacy, like, something that, you know, whether it's they bought the company from OCF or we became an ESOP or whatever. I mean, I think, hey, I'm gonna be really proud to have been part of maybe setting the next Mhmm. Being part of the next next chapters of the organization after I leave, I think it makes sense. I think it'll be good for the organization and the people.
Pat Roth:But that is, you know, some of that is like, are you leaving it better than you found it? And if you believe you are, then I think that's something we're fighting for.
Mel Renfrow:Agree.
Pat Roth:On the journey because it it there will be some bumps in the road.
Mel Renfrow:Absolutely. Okay. You've had a really crap day. You've had it. So, what what do you do to unwind at the end of the day?
Mel Renfrow:Pick 1. Wine, book, movie, workout, other?
Jason Henricks:I'd go for a run. I mean, if it was, just, hey, I had to kinda go let off some steam
Mel Renfrow:Mhmm.
Jason Henricks:And I was just kinda by myself, that's what I'd do. I'd go for a run. So if I'm with a group of people, yeah, I'd certainly go belly up to a bar and have a couple of drinks. So
Mel Renfrow:I thought you're gonna say other karaoke.
Jason Henricks:No. That's after the, that's after the bar.
Mel Renfrow:How about you, Pat? Do you need to hear your choices?
Pat Roth:I mean, I'd probably have a beer or 2, but I like to go for walks. I like to go on my boat. Like, I don't know, there's so much stress. Sometimes you just at some point, there's always something going on. And I guess you just kinda become you keep used to it, I think, that there's always things that aren't going perfect.
Pat Roth:Because if you if you tried to be perfect with how much stuff we have going on, you you'd go crazy. Yeah. Because control, you do the best you can and you really rely on the people around you that fill all those different, leadership support, technical aspects, and yeah, there's every day there's 5 fires burning with something. You know, I think one thing I learned from Bill Massey was compartmentalization. I'm always working on it, not trying to carry over the bad news from the morning session to the afternoon session.
Pat Roth:Right. So sometimes it's a challenge, but, I thought he was really good at that of just kinda being like, just I know he just found out about something that was not good and then like he goes and meets with SD or something and it's like, oh, hey, everything's great. And you know it's not everything's not great, but we're gonna put on we're gonna handle that and we're gonna handle this and we're gonna do it professionally. So
Mel Renfrow:That emotional wake you always talked about. Right? Okay. One professional thing that you're deeply grateful for right now.
Jason Henricks:Mentors.
Pat Roth:Yeah. The people that gave you a shot. I mean, mentors, your your your bosses, I think, I think, yeah, people that you worked for that gave you an opportunity to do more.
Mel Renfrow:One personal thing that you're deeply grateful for right now.
Pat Roth:My family and my health. I just turned 50 last week and feeling pretty good and excited about the future.
Mel Renfrow:Happy birthday.
Pat Roth:Thank you.
Mel Renfrow:I turn 50 this year too. Yep. We're half halfway. Right?
Pat Roth:I hope it's halfway. I don't know. Maybe not.
Mel Renfrow:I'm counting on it being halfway.
Jason Henricks:Well, I I didn't I didn't turn 50, but, You sure? I I am. I I am. But I I I would say the same thing with Pat. I mean, family and health.
Jason Henricks:I mean, I think the the best, the best title that, that we can have is probably, you know, husband, father. You know, it's hey. It's it's one of those great feelings when you walk in the house, and you are greeted by, you know, for the most part, smiling faces and people that really don't wanna hear largely about what happened at, at work. Right? It's just they're happy that you're home.
Jason Henricks:Right? Or they're happy they get to go have dinner with you or go to a movie or a concert. It's just that that time that, is so different and so special, when you when you have an opportunity to hang out with your family. So
Mel Renfrow:That's alright. Enjoy it. Your my oldest left for college. Yours is coming up. Right, Pat?
Mel Renfrow:So it's
Pat Roth:Yeah. We're we're we're negotiating right now.
Mel Renfrow:But it's weird. So when she comes home now, it's, full heart, you know, everybody's everybody's under the same roof. And so sometimes when you're in it all the time, you you forget that. So enjoy.
Pat Roth:So we're doing the budgeting. Like, well, how much you know, they don't really understand. I said, yeah, you need to I'm like, you know, if you wanna go in state, you're good. What are you gonna do if you wanna do this? And it's like, I don't I never really thought.
Pat Roth:I thought you were just gonna pay for everything. That's your problem, not mine. So I'm trying to do some I'm actually like a subcontractor here. I'm like, well, you know, if you spend less than I've saved, I'll give you maybe half of that, and you'll be off to a good start. But we'll see how it
Jason Henricks:goes. Very
Mel Renfrow:nice. Okay. That's it. You survived.
Jason Henricks:We survived.
Mel Renfrow:Was it episode 1. Episode 1. It's in in in the in the in the vault. So was it easier than you thought? I thought
Jason Henricks:it was great. Okay.
Pat Roth:I hope we answered the questions, and I hope you asked the questions you really wanted to wanted to ask.
Mel Renfrow:I did. Good. I did. I think there's gonna be, hey. As we move on, there might be some more.
Mel Renfrow:I think they're just gonna get more and more specific as we go along, and that's good. That's what we're doing this for. Great.
Jason Henricks:Thank you, Mel.
Pat Roth:Thank you, Mel. Thanks, Pat. Yep.
Mel Renfrow:Thank you. Well, thank you everyone for tuning in to listen to the very first one PCG podcast. This is a new way for us to communicate with you, and we are really excited about it. I would like to personally thank Brad and Andrew who, held my hand through this first podcast. And we're gonna be doing a lot more of these in the future, not only about 1PCG, but also on other topics and with other special guests.
Mel Renfrow:So with that said, we hope that you'll continue to, to tune in, and if you enjoyed this format, we would love to hear from you. You can email any of us directly or marketing atpcg.com. So signing off from Lenexa, this is Mel and we will catch you next time.