Application Case Assignment 1

Introduction

McCarthy Building Companies was ranked in the top 10 of the top 125 companies in

2012. I believe that an innovative training program, tailored to the trainee, yearly training goals,

and a company culture devoted to training due to employee ownership of the company are the

reasons McCarthy is ranked in the top 10 companies for training.

Company Overview

McCarthy Building Companies is a company that has grown from a modest beginning.

The company was originally founded by an Irish immigrant, Timothy McCarthy, in 1864. Mr.

McCarthy began by building farm buildings in the Ann Arbor, Michigan area. For the first 138

years of existence, the company was family-owned but in 2002 became 100% employee-owned.

After 150 years, the company has grown to be one of the top commercial builders in the United

States (The McCarthy Story, 2016).

Training

McCarthy has an interesting approach to training its employees. Its training program has

earned the company a place in the Training Top 10 Hall of Fame in 2016. The employee owned

company has embraced a culture of continual training from the top down. Employees are trained

at every level through various programs. The company training is delivered by McCarthy Build

U, which is a training program that includes virtual classrooms, instructor-led classes, on the job

training, and mentoring. It is the consistent focus on training that has caused McCarthy to be a

top contender in the construction world for many years and for the foreseeable future (Staff,

n.d.).

According to Mike Bolen, McCarthy Chairman and CEO, Investing in our employees

personal and professional development is a direct investment in our future. (Learning and
Application Case Assignment 2

Development, n.d., para1). The company illustrates this belief through their extensive training

programs and requirements. The company has created an extensive support network, which

consists of a Manager and Team, Peer Group Resources, Subject Matter Experts, Local and

National Training, and the McCarthy Build U Learning Management System. The unique thing

about this system is it is tailored to the individual, rather than a one size fits all format. As soon

as you start with the company, you begin training. All new employees attend orientation at the

company headquarters in St. Louis where they are given the opportunity to network, meet partner

companies, become introduced to the company leaders, and gather information on the structure

of the company (Learning and Development, n.d., para. 3).

The training doesnt end at hiring. All employees are required to meet yearly training

goals. The company also continually looks to the future by trying to identify its top 10 percent

of performers and begin them in a management training program no later than their early thirties.

This causes a qualified workforce of upper level management candidates who can be used to

replace retirees. Another key feature of the training program is that all employees are required to

identify two individuals that could fill their job if they were promoted (Dervin, 2014). This leads

them to be fostering growth in other employees as well as themselves. This community approach

helps to ensure that all employees are properly trained for their job and future opportunities.

Competitiveness Goals and Objectives

The structure of the company causes it to be regarded as a premier commercial builder

and competitive player in the market place. The very framework of the company makes it a

winning solution. The fact that the company is 100% employee-owned means that every

employee has something at stake with every single job. Every employee knows that if they do a

bad job then they stand to take a hit to their personal wallet. This also means if they do well they
Application Case Assignment 3

can move up through the ranks. In 1978, Michael Bolen, a form carpenter, began work with the

company. He is now the first CEO in the companys history that doesnt bear the last name

McCarthy; even so he is dedicated to the company goal of continuing to be the best builder in

America (Zerndt, 2016).

He appears to be doing a great job considering the company brings in $3 billion in profit

annually and consists of 15 offices nationwide. With such a large company, one of the greatest

challenges is finding qualified workers. This challenge has directly influenced their training

program, and successful training has allowed them to use their own labor force for much of the

work. This is a unique approach in an industry where many jobs are subcontracted to other

professionals. The approach of using their own work force ensures that work is always

completed by workers who believe in quality work, and want to see the company achieve its goal

of being the best builder in America. The company projects a 20-25% growth increase in two

years, which will allow them to continue competing on the national level (Zerndt, 2016).

Another strategy that makes the company competitive is the pre-mortem. The pre-

mortem is a result of the companys goal to maintain a safe work environment. This is a type of

thinking that requires company leaders to anticipate what could go wrong and prevent it from

happening. In an industry that is rife with inherit risks, this is revolutionary thinking. It is not

that the company wants its employees to dwell on the negative, but rather it wants to promote a

safety culture that keeps all employees safe. Its this type of thinking and attitude that allows all

employees to return home to their families every night. This also produces better results for

clients, and industry partners by creating less lost work days, and fewer job shut downs (Derven,

2014).

Conclusion
Application Case Assignment 4

Training is the common factor to all of McCarthy Building Companys success and

awards. Well-trained employees will always perform at a high standard with fewer errors and

less material loss. A commitment to training and quality work are the key factors that have

caused McCarthy to become one of the top competitors in the commercial construction field.

They are an employee-owned company that is dedicated to continuing a tradition of fine building

by creating and training an ever-expanding work force. Only through this training could a simple

form carpenter rise through the ranks to become CEO of a national company. It is through the

creation of well-trained employees that the company is able to thrive, even during times of

economic downturn, in an industry that lacks stability. Employees who know how to

competently do their jobs will be able to uphold the company tradition of quality work and

continue to satisfy customers and business partners. These well-trained employees are also able

to foresee the outcome of events before they occur and take measures to prevent disaster.
Application Case Assignment 5

Sources

Derven, Ron. ( Summer 2014). Preparing Future Leaders at McCarthy. NAIOP. Retrieved from

http://www.naiop.org/en/Magazine/2014/Summer-2014/Business-Trends/Preparing-

Future-Leaders-at-McCarthy.aspx

Learning and Development (n.d.) Retrieved from http://www.mccarthy.com/careers/learning-

development

Staff. (n.d.) McCarthy Building Companies, Inc. Inducted Into the Training Top 10 Hall of

Fame. Retrieved from https://trainingmag.com/trgmag-article/mccarthy-building-

companies-inc-inducted-training-top-10-hall-fame

The McCarthy Story (n.d., para 1). McCarthy Building Companies Inc. Retrieved from

http://www.mccarthy.com/about/timeline

Zerndt, Zack. (March 3,2016) Contractor to Watch: McCarthy Building Companies. Concrete

Construction. Retrieved from http://www.concreteconstruction.net/business/contractor-

to-watch-mccarthy-building-companies_o