THE TURNAROUND TEAM - Skanska
THE TURNAROUND TEAM - Skanska
THE TURNAROUND TEAM - Skanska
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coast tocoast<br />
An Employee Magazine for <strong>Skanska</strong> in the U.S. 2007 / Issue 03<br />
Second Avenue Subway<br />
Taking a Big Bite out of the Big Apple… Again<br />
Working in<br />
the Heat<br />
Advice on Staying Safe<br />
<strong>THE</strong> <strong>TURNAROUND</strong> <strong>TEAM</strong><br />
The Future Looks Bright for USA Civil West in California
<strong>THE</strong> GROWTH OF SKANSKA’S EXPERTISE<br />
Dear Colleagues,<br />
In this issue of Coast to Coast, you’ll notice that<br />
we moved safety up to the front of the magazine.<br />
Th is is to show how important it is to our people,<br />
our company and the industry.<br />
But if there is a common theme to this issue, it<br />
is growth: young people growing in the company,<br />
the changes at our civil operations in California,<br />
and the growth of our expertise in healthcare. In<br />
a way, it’s also about maturity and the value of<br />
investments that we take care of over time – the<br />
Second Avenue Subway in New York is a great<br />
case-in-point. Th ese are inspiring stories – the<br />
kind that make me proud to work for a company<br />
like <strong>Skanska</strong>. I hope you’ll feel the same.<br />
Johan Karlström<br />
Executive Vice President, <strong>Skanska</strong> USA<br />
CONTENTS 2007 • ISSUE 03<br />
04 SAFETY<br />
Main Story: Tips for working in the heat and<br />
how Daimon Perez at <strong>Skanska</strong> USA Building<br />
manages to keep his team cool<br />
06 OUR PEOPLE<br />
Main Story: Th e fi rst class of <strong>Skanska</strong>’s new<br />
Executive-to-Leader program is about to go<br />
back to school<br />
page 07<br />
10 FOCUS<br />
18 NOTES<br />
Main Story: How one <strong>Skanska</strong> company<br />
made a dramatic comeback<br />
Main Story: Th e future looks healthy for one<br />
of the nation’s − and the world’s − largest<br />
builders of hospitals<br />
coasttocoast<br />
Publisher<br />
Johan Karlström<br />
Editor<br />
Cole Ruth<br />
Contributing Editors/Writers<br />
Anneli Andersson<br />
Tom Crane<br />
Caroline Bucquet<br />
Karen Diemer<br />
Allyson Orfan<br />
Terry Kufl ik<br />
Shana Bitterman<br />
Printer<br />
Dolan Wohlers<br />
COAST TO COAST is the quarterly employee<br />
magazine from <strong>Skanska</strong> USA. Subscribe<br />
free of charge by sending an email to:<br />
coast2coast@skanska.com<br />
COAST TO COAST is printed on FSC certifi ed<br />
environmentally friendly paper.<br />
Feel free to copy from the magazine or quote us, but<br />
please name the source.<br />
No responsibility is taken for unsolicited material,<br />
though you are welcome to send your ideas and<br />
suggestions to the editor at: cole.ruth@skanska.com<br />
CONTRIBUTE TO COAST TO COAST!<br />
If you have a story you’d like to see covered in COAST<br />
TO COAST, or one that you’ve written and want to see<br />
published, contact the editor at: cole.ruth@skanska.com<br />
Working in the Heat 04<br />
Symptoms & Precautions 04<br />
The Ladder to Leadership 06<br />
Great Boss Initiative 07<br />
Larry Martocci 08<br />
Peter Roche 09<br />
The Turnaround Team 10<br />
Wave of the Future 14<br />
Second Avenue Subway 16<br />
A Healthy Future 18<br />
<strong>Skanska</strong> Healthcare Facts 19<br />
Front Cover: Tim Boyer (left ) and Don Reiter of <strong>Skanska</strong> USA Civil West California District<br />
“Does a strong health and safety program<br />
make a difference?<br />
Ask your family.”<br />
Darin Ferguson, Health and Safety Manager<br />
Two years ago, <strong>Skanska</strong> set a new goal for safety: zero accidents. It’s an ambitious<br />
target, but Darin Ferguson is dedicated to achieving it. “Safety and productivity go<br />
hand in hand,” he explains. “So do safety and quality. But the most important thing<br />
is protecting our people.” To do this, Darin and his colleagues use a combination of<br />
anticipation, communication and preparation. “We anticipate potential safety issues<br />
and deal with them before they become accidents,” he says. “We also instill this<br />
philosophy from day one.” It’s a way of working that’s attracted clients who share<br />
our values and made <strong>Skanska</strong> an employer of choice nationwide.<br />
www.skanska.com
SAFETY<br />
SAFETY TIPS FOR<br />
WORKING IN <strong>THE</strong> HEAT<br />
There are many factors that lead to heat stress and exhaustion. Over-exposure to sunlight can cause<br />
premature aging of the skin, wrinkles, cataracts and skin cancer. But heat-related illness and death can<br />
be prevented by taking the necessary precautions. With an excellent track record for heat safety we<br />
spoke to Daimon Perez, , <strong>Skanska</strong> Caribbean’s EH&S Director, Director and found out his hot tips for staying cool.<br />
What are some techniques you have used in order to<br />
mitigate the heat on <strong>Skanska</strong>’s construction sites in<br />
Puerto Rico?<br />
We have canopy-covered oasis spots available throughout<br />
the project sites where the workers can get away from the<br />
sun and hydrate themselves. In addition to water we have<br />
Gatorade, since replacing electrolytes is very important<br />
to keeping the body hydrated. We encourage the use of<br />
sunscreen and wearing long-sleeve shirts to protect the skin.<br />
Daimon Perez<br />
What advice would you give a fi eld supervisor to proactively identify<br />
potential heat-induced crises?<br />
Communication is key. Ask workers how they are feeling and do not just<br />
listen to their words. You can pick up a lot from body language, tone and<br />
whether or not what they are saying makes sense. It’s vital to be aware of who<br />
is at greatest risk and what actions can be taken to prevent an incident from<br />
happening. Encourage them to take fi ve minutes every hour to hydrate and<br />
get out of the sun, and remind them to reapply sunscreen. Many people have<br />
never seen what sun-poisoned skin and dehydrated bodies look like. It can be<br />
useful to carry a picture around to show people.<br />
Can you recall in your experience any particular heat-related scenario<br />
that was unexpected or extreme?<br />
I was working at a site where there was sand on the ground, and the refl ection<br />
from the sun was so intense that we had to wear special sunglasses and make<br />
sure everyone was covered up from head to toe. We all expect the sun to shine<br />
down on us, but this particular time it was coming from all angles which<br />
required us to use extreme care not to be critically aff ected. ◆<br />
For more information on heat safety, contact Daimon Perez at<br />
Daimon.Perez@skanskausa.com<br />
KNOW <strong>THE</strong> SYMPTOMS PROTECT PROTECT YOURSELF YOURSELF<br />
HEAT EXHAUSTION<br />
Headaches, dizziness, light-headedness or fainting<br />
Weakness and moist skin<br />
Mood changes such as irritability or confusion<br />
Upset stomach or vomiting<br />
HEAT STROKE<br />
Seizures or convulsions<br />
Dry, hot skin with no sweating<br />
Mental confusion or losing consciousness<br />
BLOCK OUT HARMFUL RAYS<br />
Cover up — wear light and breathable clothing,<br />
even long sleeves<br />
Always use sunscreen and make sure to reapply<br />
it often<br />
Wear a hat — a wide brim hat that covers your<br />
ears, eyes, forehead, nose and scalp<br />
Wear UV-absorbent sun glasses<br />
Limit your exposure to the sun<br />
TAKE PRECAUTIONS<br />
Drink plenty of water before you get thirsty<br />
Take T frequent, short breaks in a cool spot<br />
Eat smaller meals before work activity<br />
Avoid caffeine, alcohol and large amounts<br />
of sugar<br />
Sometimes medication and heat do not mix.<br />
Check with your healthcare provider before<br />
working in warm conditions<br />
4 coast to coast coast to coast<br />
5<br />
SAFETY
OUR PEOPLE<br />
<strong>THE</strong> LADDER TO LEADERSHIP<br />
New Program Launched to Develop Top Managers<br />
As school resumes this fall, a new class of<br />
students will begin their fi rst term in the<br />
Executive-to-Leader program – <strong>Skanska</strong>’s<br />
new leadership development training for<br />
senior management in the U.S.<br />
For several years, <strong>Skanska</strong> has off ered a leadership<br />
training program based in Lausanne, Switzerland. Th e<br />
program, called STEP, has trained the ranks of some<br />
of <strong>Skanska</strong>’s top global managers. With continued<br />
expectations for the outperformance of the U.S. market,<br />
a new program has been designed especially for senior<br />
management in the U.S. Th e program is called “Executiveto-Leader”<br />
(or, E2L), and is aimed at 250 managers<br />
within the three U.S. business units (Building, Civil and<br />
Infrastructure Development).<br />
Th e E2L leadership development program focuses<br />
on four primary areas: 1) People Leadership –including<br />
Teamwork, Great Boss and Connect-the-Dots; 2) Business<br />
Landscape; 3) Innovation; and 4) Change Management.<br />
“E2L will be an intense learning<br />
journey and we hope that it will set<br />
the stage for the direction of future<br />
management and development for<br />
<strong>Skanska</strong> in the U.S.”<br />
Th ough the program is designed to help our top<br />
management grow into industry leaders, E2L is also<br />
designed to foster networking, encourage the sharing of<br />
best practices and provide innovative ideas across the<br />
three U.S. business units.<br />
Th e program, which consists of 10 days, spread over<br />
two separate weeks, will be run with the help of Th e<br />
Ken Blanchard Companies along with professors from<br />
IMD (a top-notch international business school). E2L<br />
will provide participants with an opportunity to put key<br />
learning into practice by working in teams on actionlearning<br />
projects. Th e results of these real businessrelated<br />
issues will then be presented to the Business Unit<br />
Management Teams and U.S. EVP, Johan Karlstrom. Th e fi rst session of the<br />
“Executive-to-Leader” program begins in November of 2007 and will conclude<br />
the 2nd week of February.<br />
Program Director Jagoda Palider is excited that <strong>Skanska</strong> is offering this<br />
top-caliber educational program: “We anticipate that E2L will be an intense<br />
learning journey,” she says, “and we hope that it will set the stage for the<br />
direction of future management development for <strong>Skanska</strong> in the U.S.” ◆<br />
For more information on the E2L program, contact Jagoda Palider at<br />
jagoda.palider@skanska.com or by calling 718-746-2278<br />
GREAT BOSSES AT SKANSKA<br />
Making <strong>Skanska</strong> a Better Place to Work<br />
LINDA MONTGOMERY Group Director of Project Accounting<br />
<strong>Skanska</strong> USA Building, Atlanta, GA<br />
“ Having Linda as a boss means having someone who believes in hard work and<br />
dedication, yet understands that people have lives outside of their jobs too. Linda<br />
is someone who never stops encouraging improvement and who rewards even<br />
the smallest success. She is knowledgeable and confi dent, but open to change and<br />
leads by example. Her guidance and encouragement is appreciated from all who<br />
work under her. Linda takes time to help, to listen and to mentor, which makes<br />
<strong>Skanska</strong> a better place to work.<br />
”<br />
LARRY GREENE Senior Project Manager<br />
Federal Law Enforcement Training Center Dormitory, Artesia, NM<br />
“ In my 36 years in the industry I have never seen anyone as focused and<br />
dedicated as Larry Greene. I’m constantly amazed at his level of commitment and<br />
his impeccable work ethic. Since the beginning of his tenure he has set the standard<br />
for his team, by being the fi rst to arrive at the work site and for the most part,<br />
the last to leave. Larry is never too busy for the team and is prepared to give his<br />
undivided attention at a moment’s notice. When decisions are made by the team,<br />
he’ll stand fi rm behind them. Our team is stronger and can approach every task<br />
with confi dence, largely due to the strength and leadership exuded by Larry.<br />
”<br />
KEVIN LYONS Superintendent<br />
Triborough Bridge TB-64B Project, New York, NY<br />
“ Th e teamsters Local 282 site drivers of <strong>Skanska</strong> Koch commend Kevin Lyons<br />
for informing us and helping us on a day-to-day basis with our job duties. Kevin<br />
is always open to any suggestions that might expedite or improve a specifi c job in<br />
GEORGE E. PATAKI VISITS SKANSKA<br />
Left to Right: Doug Fried, Amando Madan, Governor Pataki, Karl Reichelt, William Allen and Peter Lundstrom<br />
OUR PEOPLE<br />
which we are involved. He is quick to make safety our number<br />
one priority and will go above and beyond to make sure the<br />
equipment we operate is not only working properly, but is also<br />
safe. It is a pleasure working for Kevin and <strong>Skanska</strong> Koch and<br />
we all hope to have a long career with them both.<br />
”<br />
DO YOU HAVE A GREAT BOSS?<br />
Not all bosses are this bad. Do you have a story about<br />
your good boss? Tell us what makes your boss great!<br />
Email: coast2coast@skanska.com<br />
Th e <strong>Skanska</strong> ID offi ce in Alexandria, VA, hosted a<br />
prominent guest when former New York State Governor<br />
George E. Pataki paid a visit on May 24. Governor Pataki,<br />
who recently completed 12 years of service in New York and<br />
holds presidential aspirations, is a champion of the Public-<br />
Private Partnership approach to funding infrastructure. He<br />
now works for an international law fi rm that specializes in<br />
infrastructure project fi nance, and he is traveling the globe<br />
advocating PPPs. Pataki is highly familiar with, and very<br />
complimentary of, <strong>Skanska</strong> given our record of project<br />
delivery in the New York Metropolitan Region. ◆<br />
6 coast to coast coast to coast<br />
7
OUR PEOPLE Employee Focus Employee Focus OUR PEOPLE<br />
A BRIGHT NEW HIRE AT<br />
SKANSKA’S NOR<strong>THE</strong>AST DIVISION<br />
Larry Martocci, Future Graduate of the Core Competency Training Program<br />
Manhattan College has turned out some of New York City’s brightest engineers<br />
and <strong>Skanska</strong> makes every eff ort to recruit them. One such all-star is Larry<br />
Martocci, who graduated from the college in 2004 with a degree in civil<br />
engineering. Larry already knew the ropes at <strong>Skanska</strong> because he was an intern<br />
for the Northeast Division for more than a year prior to graduation.<br />
Two years aft er Larry was hired on a full-time basis, <strong>Skanska</strong> started the<br />
Core Competency Training Program (CCTP). Th e program takes young,<br />
bright, new hires and places them in six diff erent rotations of six months each<br />
with the aim of teaching them as much as possible about the construction<br />
industry. Larry was part of the fi rst group to be involved in the program. His<br />
fi rst rotation took him to the FDR Drive Rehabilitation project as assistant<br />
superintendent under John Crecco, where he was responsible for concrete and<br />
coordination of subcontractors.<br />
At his second stop, Larry worked with Mo Azeem as an engineer on the precast<br />
alternative for the enfl uent channels at the Paerdegat Basin CSO.<br />
From there, Larry was assigned to estimating where he worked with Pat<br />
Ward. “Pat could have given me a lot of grunt work to do, but he gave me work<br />
that was just as important as what everyone else was doing,” said Larry. For<br />
instance, Larry got to work on diff erent bids, which he gave him the chance<br />
to meet people outside the northeast, “Meeting people like Wade Watson and<br />
Tony Taddeo was a great experience and gave me a good idea of the diff erent<br />
career paths at <strong>Skanska</strong>.”<br />
Getting exposure to various jobs has also confi rmed Larry’s desire to be<br />
a superintendent. “I enjoy working outside, I like working with the clients<br />
and being involved in the decision making process. Civil<br />
engineering is practical and you can see the results of your<br />
work, and you’re building something that’s useful to the<br />
community. Not many people get to experience what that’s like.”<br />
“Not many people my age in<br />
this industry can say they’ve<br />
had the experiences I have.”<br />
Larry’s three-year stint in the program ends in October<br />
on the Dey Street project, where he is currently doing safety<br />
rotation. Looking back, he recognizes the unique advantage<br />
of participating in the Core Competency Training Program<br />
– especially how he’s been able to learn so much in such a<br />
short time span, but for that he gives most of the credit to his<br />
fellow employees. ◆<br />
For more information on the Core Competency<br />
Training Program, contact Larry Martocci at<br />
Lawrence.Martocci@skanska.com, or call 212-233-9301<br />
SETTING <strong>THE</strong> COURSE FOR YOUNG PROFESSIONALS<br />
Peter Roche, Project Manager and <strong>Skanska</strong> Young Professionals Co-Founder<br />
Peter Roche began his tenure at USA Building long before he was hired as a<br />
full-time employee. As an intern in the estimating department and on project<br />
sites, he developed a great rapport with his colleagues and was keen to seek<br />
employment within the company aft er obtaining his degree in construction<br />
management. “I had the opportunity to work with great people during my<br />
internships, so it was an easy decision to accept a full-time position,” he says.<br />
“We have great people in leading roles<br />
who could serve as a tremendous resource<br />
and support for our young professionals…”<br />
As a Project Engineer in the Boston offi ce, Peter was required to attend a<br />
series of management meetings. It was in these meetings that he was inspired to<br />
create an offi cial program that would enhance the involvement of young people<br />
like himself in the company. Aft er submitting a mission statement with fellow<br />
engineers, Andy Felix and Susan Burgard, the <strong>Skanska</strong> Young Professionals<br />
(SYP) was brought to fruition.<br />
Now, several years later, the program is still going strong. At bi-monthly<br />
meetings, members tour <strong>Skanska</strong> job sites or a guest speaker is invited to<br />
Peter Roche (far right) and a team of <strong>Skanska</strong> Young Professionals<br />
discuss engineering-related subject matters. Peter feels that<br />
these activities are a great way to increase communication.<br />
“Most of our young professionals are dispersed amongst<br />
diff erent project sites, so they don’t have many opportunities<br />
to interact with their peers in the company,” he states. “Being<br />
a part of SYP is a great way to enhance the work environment,<br />
develop a strong network of employees and maintain our<br />
professional development.”<br />
While Peter and the other founding members have<br />
resigned to let a new group of volunteers take the reigns, his<br />
participation in the program is far from complete. “Even<br />
though I stepped down from my role as a leader, I remain a<br />
mentor to the three who currently run the group and act as<br />
their liaison to <strong>Skanska</strong>’s upper management,” he says.<br />
As for the future of the <strong>Skanska</strong> Young Professionals, Peter<br />
would like to see the concept utilized throughout the U.S.<br />
business units as well as internationally. “We have great people<br />
in leading roles who could serve as a tremendous resource and<br />
support for our young professionals,” Peter adds. “As I see it, the<br />
opportunities for young employees at <strong>Skanska</strong> are endless.” ◆<br />
For more information on the <strong>Skanska</strong> Young Professionals,<br />
contact Peter Roche at Peter.Roche@skanskausa.com or<br />
by calling 617-574-1530<br />
8 coast to coast coast to coast<br />
9
<strong>THE</strong> <strong>TURNAROUND</strong> <strong>TEAM</strong><br />
How one <strong>Skanska</strong> Company Made a Dramatic Comeback<br />
Chad Mathes, VP/Estimating Engineer; Joe Nogues, CFO; Eric Taylor, Senior VP; Jock Yeager, VP of Plants; Tony Bagheri, VP/Operations Manager<br />
In December of 2005, Yeager <strong>Skanska</strong> was<br />
losing $1 million a month in equipment costs.<br />
The company, which had once been a family<br />
business with a strong local reputation,<br />
had been struggling under the combined<br />
leadership of seven different owners. Morale<br />
was low and even long-time employees<br />
were ready to quit. Then in January 2007,<br />
the company started reporting a profi t – and<br />
those numbers show no sign of changing.<br />
Johan Karlström recounts how, in early 2006, his belief in the<br />
Riverside team led him to boldly tell a group of stockholders<br />
that Yeager <strong>Skanska</strong> would break even for the year. At the<br />
time it seemed like a long-shot. Later, at the 2007 USA Civil<br />
management meeting, Johan thanked the team for not only<br />
proving him right, but for exceeding all expectations.<br />
At USA Civil West’s California District, they unanimously<br />
recall the day that Stu Graham positioned David Eastwood at<br />
the helm. Although it would be easy to attribute the turnaround<br />
to one man, it took everyone to bring about the change. As<br />
Senior VP Eric Taylor, who is now leading the division, says<br />
“Who’s the most valuable player on the team? Th e team.”<br />
COAST TO COAST EXAMINES FIVE DIFFERENT BUSINESS<br />
DECISIONS THAT WERE KEY IN <strong>THE</strong> <strong>TURNAROUND</strong><br />
CHOOSE YOUR PROJECTS CAREFULLY<br />
One of Eric’s mottos is: “Not having a job is better than<br />
having a bad job.” It’s a lesson his team learned the hard<br />
way. In 2004, Yeager <strong>Skanska</strong> bid on 140 projects. As VP/<br />
Estimating Engineer Chad Mathes recalls, “We were bidding<br />
on anything and everything – with an average contract value<br />
of 3.6 million.” Th ey were bidding on projects outside their<br />
geographical area, outside of their core expertise, and for<br />
which they did not have the right staff .<br />
Changing the way the company approached future bids<br />
was critical. In 2005, the company bid on only 40 jobs with<br />
an average contract value of 9 million. “It takes the same<br />
amount of staff to build a 3.6-million-dollar project as it does<br />
a 9-million-dollar project,” says Chad. “With a limited number<br />
of qualifi ed project personnel, we get a better bang for our<br />
buck. We’ve become smarter in the way we look at our jobs.<br />
We are more organized and have processes and procedures<br />
for estimating and bid reviewing. We also joined the rest<br />
of USA Civil in using the estimating program from Heavy<br />
Construction Systems Specialists (HCSS).”
FOCUS FOCUS<br />
KNOW YOUR EQUIPMENT<br />
Despite the cost of maintaining old equipment, the company continued to<br />
do what it had always done: they took old equipment back to the shop for<br />
repairs. Th is procedure made sense on the surface, especially when the cost of<br />
new equipment is formidable. However, with the endorsement and monetary<br />
support from USA Civil’s senior management, they implemented a system called<br />
Total Process Reliability (TPR).<br />
According to Equipment Manager, Jeff Buckmaster, when they started the<br />
program, there was a lot of disbelief that the system would be worth its cost.<br />
“It required a suspension of disbelief,” says Jeff . “But aft er a year and a half, we<br />
could see that it was paying off .”<br />
Jeff explains how TPR helped them revamp the maintenance plan by<br />
managing costs, setting up repair processes, upgrading the tools, and<br />
revamping and cleaning the shops. Th e TPR system allowed them to track<br />
maintenance costs by the week – instead of by the month. Suddenly, it was<br />
obvious where they were fi ghting a losing battle. As diffi cult as this decision<br />
was, they scaled back the maintenance facility staff and ramped up on new<br />
equipment. Today, with this valuable program intact, they are actually making<br />
money on equipment.<br />
MANAGE YOUR ASSETS<br />
Th e California District owns asphalt and concrete plants, and rock-crushing<br />
plants capable of turning four-foot boulders into sand. Most of these plants<br />
are mobile, and are set up alongside job sites in order to furnish the jobs with<br />
David Eastwood, second from left , confers with members of the estimating team<br />
material. But the company also owns two stationary asphalt<br />
plants in Coachella and Barstow. Before the turnaround,<br />
some of the plants were under the leadership of 39-year<br />
veteran Kenneth “Butch” Dahlke. However, the largest of the<br />
commercial plants, Coachella, located in the desert, was not<br />
benefi ting from Butch’s watchful eye. Left unattended, the<br />
Coachella asphalt plant was fl oundering.<br />
During the turnaround period, there was talk of selling<br />
the stationary plants. Fortunately, both Jock Yeager (VP of<br />
Plants) and Butch, recognized the value of these assets and<br />
asked the new management to give them a chance. Once David<br />
Eastwood gave the green light, the Plants Division’s newly<br />
hired crew refocused their energies on tending to needed<br />
repairs. Additionally, Jock put business practices in place which<br />
led to the fi nancial outperformance of the Coachella Plant.<br />
Th e Barstow asphalt concrete plant is a vintage plant from<br />
1959. “Th ey still build plants this way, but there are a lot of<br />
upgrades you can make to bring a plant into the 21st century,”<br />
says Butch. In addition, government policy requires that<br />
the plants be able to handle a new asphalt substance called<br />
Superpave. Until the turnaround period, the company had not<br />
been willing to spend money on upgrades. But now the plants<br />
meet the standards of future legislation and are prepared to<br />
make even better asphalt with a low environmental impact.<br />
Butch is quick to give credit to his boss, Jock. According to Butch, “Under<br />
the old management, we weren’t watching the numbers. No one noticed that we<br />
were selling our rock for much less than competitors down the road.” Driven to<br />
see change, Jock reevaluated the numbers for their bids and today those plants<br />
are making money.<br />
Th e team also realized that setting up older equipment was taking them three<br />
weeks, while at the San Sevaine project, they were able to pull self-contained<br />
plants directly off a trailer. “With the new portable plants, there are no wires,<br />
no generator, and within 2-4 hours you’re up and running,” says Butch. Th e<br />
company now has two of these timesaving rock-crushing plants and may invest<br />
in another.<br />
GET SAFETY AND COSTS UNDER CONTROL<br />
VP/Operations Manager Tony Bagheri points to another key aspect of the<br />
turnaround: “Cost management was not a priority,” he says, “Some jobs<br />
were managing their costs, while others were not.” Today the jobs send their<br />
quantities in on a weekly and sometimes daily basis in preparation for quarterly<br />
forecasting. At their recent Temple Avenue project, improved cost management<br />
led to thinking outside the box, better working relationships with the owner, and<br />
getting paid for change orders. Tony feels that with pre-planning, knowing the<br />
risks and good cost management, the company will continue to prosper.<br />
Everyone in Riverside agrees that being a profi table company goes hand<br />
in hand with being a safe company. “When a project is going well,” says<br />
Tony, “morale is up and people look out for one another. Th ere’s a natural<br />
correlation.” A good safety record, in turn, can save you money. Just ask Wendy<br />
Harris who spends most of her time investigating claims – yet another way to<br />
get on top of your costs. As of this year, the team has experienced only one lost<br />
time incident and workers compensation claims are down from 940,000 in<br />
2006 to 75,000 in 2007.<br />
BELIEVE IN YOUR <strong>TEAM</strong><br />
Although they have a new executive team, the Riverside players of today are by<br />
and large the same as those you would have found there a few years ago. Th e<br />
obvious diff erence is that now they are united behind the common goal – that of<br />
going “from worst to fi rst.”<br />
To introduce the new executive team, the offi ce held an open house and<br />
invited the competition. As anyone who enters the newly remodeled offi ces can<br />
vouch, from the moment you enter the door, you know that you are at <strong>Skanska</strong>.<br />
“As an international company, we need to set the standard,” says Eric. “With<br />
Above: Tony Bagheri and Eric Taylor; USA Civil West equipment yard; San Sevaine Project; Prado Dam Project<br />
STAT SHOT<br />
USA CIVIL WEST — CALIFORNIA DISTRICT<br />
Location<br />
Contact<br />
Personnel<br />
Riverside, California<br />
Tel: 951-684-5360<br />
130 on Staff / 570 in the Field<br />
our no-nonsense approach and candid honesty, we know we’ll<br />
continue to attract and cultivate the best employees and the<br />
best clients.”<br />
Just a few short years ago, Tim Boyer, Chief of Structures,<br />
gave his two-week notice. In spite of Tim’s positive demeanor<br />
it was hard for him to overcome the negative atmosphere that<br />
prevailed aft er Yeager had been purchased. “In the old days, to<br />
work at Yeager, you had to work your butt off ,” says Tim. “Th at<br />
work ethic attracted the best people in the industry. Th ere was<br />
a saying when I was growing up that if you were going to take<br />
on a task and do it well, you had to Yeager-it. ‘Son, you gotta<br />
Yeager-it,’ my dad would say.”<br />
Th e same week Tim handed in his two-week notice, Sal<br />
Mancini and Johan Karlström came to Riverside. Th ey came to<br />
tell the Riverside team that they were listening and supporting<br />
them 100%. It was enough to make Tim decide to give <strong>Skanska</strong><br />
a chance. Now he says that the teamwork that went into the<br />
turnaround has made the company better than ever. “Today I<br />
tell my team that we were going to <strong>Skanska</strong>-it – and everyone<br />
understands exactly what that means.” ◆<br />
12 coast to coast coast to coast<br />
13
FOCUS FOCUS<br />
WAVE OF <strong>THE</strong> FUTURE<br />
The Next Generation of Leaders Takes the Stage<br />
A combination of declining enrollment in engineering schools<br />
and an even fewer number of engineers entering construction<br />
has the company’s leaders wondering: what will the next<br />
generation of <strong>Skanska</strong>’s leaders look like? Coast to Coast spoke<br />
with some of these up-and-comers at Stu Graham’s Connect the<br />
Dots Roadshow in New York and here is what we learned.<br />
POSITIVE FEEDBACK<br />
Nichol Luzardo, an Estimating Engineer at USA Building,<br />
says, “<strong>Skanska</strong> is doing an amazing job tying all of our<br />
branches into one entity. Putting everyone’s experience<br />
together will give us a great opportunity to grow.”<br />
“I hold the <strong>Skanska</strong> brand in high esteem,” adds USA<br />
Building Project Engineer, Manny Cruz. “Our company is<br />
fi lled with knowledgeable people who go the extra mile to<br />
Joseph Belgrave<br />
do things the right way.” As a contributor to the construction management<br />
process, Manny is tuned in to <strong>Skanska</strong>’s ability to meet the demands of the evercompetitive<br />
industry.<br />
With design-build ventures like the Meadowlands stadium, Manny is<br />
confi dent that the company is headed in the right direction. “Th ese ambitious<br />
projects will give us more exposure to the general public,” he says.<br />
PROPOSED RECRUITMENT INITIATIVES<br />
In today’s market, young individuals in search of employment are attracted by<br />
unique incentives.<br />
Fostering recruitment initiatives is an important matter to many of our<br />
young employees. Robert Reid, a USA Building Estimating Engineer, suggests<br />
instituting a company-wide rotational training program, in which young<br />
engineers spend a few months in each business unit learning about design,<br />
development, safety, etc. “Th is will expose young people to the diff erent aspects<br />
of construction,” states Robert. “It also provides inexperienced engineers with<br />
an opportunity to hone their skills in their desired fi eld.”<br />
At present, internships are an essential off ering among industry leaders.<br />
When asked about recruitment tactics, <strong>Skanska</strong> Koch Assistant Project<br />
Manager Rebecca Clark feels that the intern program is the most eff ective.<br />
“Th e nature of the work is so specifi c that it’s a good way for students to get a<br />
good idea of what we do. It provides great exposure and a great opportunity<br />
to mold younger individuals.” Others throughout the company are supportive<br />
of providing internships that encourage college students as prospective<br />
<strong>Skanska</strong> employees. Hiring interns is a recruitment initiative that promotes the<br />
involvement of undergraduates who are pursuing a career in construction.<br />
PLANNING FOR <strong>THE</strong> FUTURE<br />
As young engineers gain experience in the fi eld, the company will need to pay<br />
heed to their know-how in order to continue its momentum. Many employees<br />
have valuable suggestions that can sustain advances that have been previously<br />
established. With the construction of environmentally friendly projects like<br />
Colonial High School, Providence-Newberg Hospital and others, Assistant Safety<br />
Director at USA Civil Northeast Claire Hyde believes that <strong>Skanska</strong> could push<br />
the green angle because the market is more aware and involved in this now.<br />
In the next fi ve years, <strong>Skanska</strong><br />
will need to hire 16,000<br />
employees just to maintain our<br />
current size. As baby boomers<br />
retire, the company and indeed<br />
the whole industry have high<br />
hopes for the next generation.<br />
“Promoting our involvement in the innovative engineering concept of going<br />
green could set <strong>Skanska</strong> apart from the competition in the eyes of the American<br />
public,” says Claire.<br />
In an industry that is just beginning to see change in terms of women in<br />
the workplace, <strong>Skanska</strong> is taking the initiative. Rebecca has already noticed<br />
a signifi cant change as far as diversity in the workplace. To advance this<br />
development, she thinks establishing “an Internet-based female network would<br />
be eff ective. It would help female employees easily contact and communicate<br />
with one another.” Jessica Miller, a USA Civil Engineer in CCTP, believes<br />
another key to keeping women in the workforce is to off er a daycare program<br />
for women with young children. “Th en there wouldn’t be such a fi nancial<br />
burden placed on them to fi nd a babysitter,” she adds.<br />
During the coming years, this new generation will have an impact on the<br />
direction of the company. And while Jessica’s input might seem radical for the<br />
construction industry, one thing is clear: in order to attract and retain the next<br />
generation of employees, the company will need to change with the times. ◆<br />
Dan Murphy and Sharvil Patel<br />
14 coast to coast coast to coast<br />
15<br />
Maria Bootsma<br />
Rebecca Clark
FOCUS FOCUS<br />
SECOND AVENUE SUBWAY<br />
USA Civil Prepares to Take a Big Bite out of the Big Apple… Again<br />
New York City’s fi scal crisis may have halted progress<br />
on the Second Avenue Subway in the early 1970s, but<br />
this time around our team is determined not to let their<br />
involvement be derailed.<br />
In 1973, Slattery <strong>Skanska</strong> (now <strong>Skanska</strong> USA Civil Northeast) took on one<br />
of the largest construction projects in New York City – the Second Avenue<br />
Subway. At that time, Business Unit President Sal Mancini served as a<br />
superintendent on the job site, “I was in charge of the installation of the<br />
retaining structure for the enclosed coff erdam for the subway structure,” he<br />
says. “I was also responsible for the underpinning of nearby buildings that<br />
were aff ected by the excavation.”<br />
Sal’s team had just begun construction on the lower Manhattan portion<br />
of the subway line when the city ran out of funding. “At the time, I had no<br />
idea that the next leg of the system wouldn’t be built,” states Sal. Th e massive<br />
relocation of city residents to the suburbs further impaired the sluggish<br />
economy, leading to New York City’s insolvency. Consequently, building<br />
of the Second Avenue subway was suspended with only three segments of<br />
tunnel completed.<br />
Th e project was put on the back burner until the Metropolitan<br />
Peter Mesbah, Mike Attardo, Rob O’Neill, Vinny Evola, Del Razmjou, Rory Neubauer and Alaeden Jlelaty<br />
Transportation Authority (MTA) initiated a new set of design<br />
work. With the gears in motion, <strong>Skanska</strong> and its joint-venture<br />
partners J.F. Shea and Schiavone Construction were awarded<br />
the contract this spring. Th e 337 million fi rst phase tunneling<br />
contract comes more than 30 years aft er the fi rst team worked<br />
on the job. Sal is confi dent that fi nancial support will not be a<br />
concern again. “A good portion of the Second Avenue Subway<br />
already has funding and the next section will come out for bid<br />
this summer.”<br />
Th e project is set to be constructed in four phases, with<br />
the fi rst stage expected to take three years to fi nalize. Upon<br />
completion, the Second Avenue Subway will include a twotrack,<br />
8.5-mile line with 16 stations along Second Avenue from<br />
125th Street to the Financial District in lower Manhattan.<br />
Stations will have a combination of escalators, stairs and in<br />
compliance with the Americans with Disabilities Act, elevator<br />
connections from street-level to station mezzanine and from<br />
mezzanine to platforms.<br />
From the get-go, Rory Neubauer was the perfect fi t for<br />
Project Director. Coming to New York from the New York<br />
Avenue Project in Washington D.C., he is no stranger to<br />
working in challenging environments while under the watchful<br />
eye of a demanding client and public. “We’ve barely begun<br />
work and there have already been a lot of media inquiries<br />
about the project,” he says. “I’m sure it will only intensify as we<br />
really move into full swing.”<br />
He has worked in other major cities before, like Los<br />
Angeles, San Francisco and Boston, for their public<br />
transportation providers, but concedes that residents in New<br />
York City are far more reliant on their mass transit system<br />
than anywhere else. “It’s really exciting. Th is is the fi rst major<br />
subway project here in a long time and it will have a dramatic<br />
eff ect on residents,” Rory comments. In fact, the line is slated to<br />
carry 200,000 weekday riders, which will considerably reduce<br />
congestion and delays on the Lexington Avenue Line, and more<br />
importantly, it will spur economic development in the form of<br />
housing and retail.<br />
“It gives us all a feeling of<br />
pride to know that we’re a<br />
part of building history.”<br />
With the budget crisis behind them, the team is focused on<br />
constructing New York City’s fi rst major subway since the Sixth<br />
Avenue Line, which opened to the public in 1936. “It gives us all<br />
a feeling of pride to know that we’re a part of building history,”<br />
Rory says proudly. “I expect to be here for a long time.” With<br />
the 7 Line Extension, East Side Access and Fulton Street Transit<br />
Center in New York City’s pipeline, Rory and his team just may<br />
be sticking around. ◆<br />
For more information on the Second Avenue Subway project,<br />
contact Rory Neubauer at Rory.Neubauer@skanska.com or by<br />
calling 212-792-8010<br />
Eliot Spitzer at the 2007 Second Avenue Subway Groundbreaking Ceremony<br />
KEEPING TRACK<br />
Second Avenue Subway Timeline<br />
NYC BOT proposes to build the Second Avenue line<br />
from Houston Street to the Harlem River for a cost of<br />
86M. Lines are expected to be in service 1938-1941.<br />
In October, the Wall Street stock market crashes.<br />
Construction falls behind. Th e Depression is hurting<br />
the city. Cost estimates for Phase I were too low by as<br />
much as 100%. New proposed opening date: 1948.<br />
Second Avenue Subway now estimated at 504M.<br />
Th e new R11 “million dollar train” is unveiled as the<br />
prototype train for the Second Avenue subway.<br />
Th e Korean War starts, driving up material costs.<br />
Th e Metropolitan Commuter Transportation<br />
Authority is founded.<br />
MCTA changed to MTA. Second Avenue subway<br />
will cost 220 million for a two-track line from 34th<br />
Street to the Bronx.<br />
On October 27, groundbreaking held at East 103rd<br />
Street and Second Avenue, 68 years to the day aft er<br />
the opening of the IRT.<br />
Construction activity begins on three intact sections<br />
of the subway. A fourth section has utility relocation<br />
work performed, but all excavation is fi lled in.<br />
<strong>Skanska</strong> USA Civil step in to fi nally fi nish the job.<br />
16 coast to coast coast to coast<br />
17
A HEALTHY FUTURE<br />
<strong>Skanska</strong> Healthcare Center of Excellence<br />
“Healthcare construction spending in the<br />
U.S. has been increasing at a double-digit<br />
rate in recent years and will continue to<br />
grow at that pace until at least 2010,” says<br />
Joey Hatch, Chief Operating Offi cer, <strong>Skanska</strong><br />
Healthcare Center of Excellence (COE), based<br />
in Nashville, TN.<br />
<strong>Skanska</strong> has had a major presence in this sector for more than 20 years and was<br />
ranked for the fi rst time this year as the number one construction manager in<br />
the U.S. by Modern Healthcare magazine. With nearly 1 billion in revenues<br />
in 2006, healthcare now accounts for one-fourth of <strong>Skanska</strong> USA Building’s<br />
revenue − making it the company’s largest market sector.<br />
“<strong>Skanska</strong>’s success is attributed to many factors,” says Steve Gressel,<br />
Senior Vice President of <strong>Skanska</strong>’s COE. “We have over 500 specialists in this<br />
sector with superior technical competency, a hard work ethic, and a great<br />
understanding of healthcare clients. We have experienced leaders in preconstruction<br />
services. We are also in the right geographic markets, with 22 of<br />
our 26 U.S. offi ces working in healthcare.” Joey adds that “<strong>Skanska</strong>’s timing has<br />
been ideal with regard to the unprecedented demand for these facilities, with<br />
43 billion in planned construction starts for 2007. And our momentum was<br />
solidifi ed by the creation of the Healthcare Center of Excellence.”<br />
Formed in 2002 and based in Atlanta, the COE allowed <strong>Skanska</strong> to create a<br />
central focus for its nationwide healthcare expertise. “Th e COE has aggressively<br />
marketed the <strong>Skanska</strong> brand to key decision-makers. It provides assistance to<br />
offi ces on business development, marketing and staffi ng, oversight of major<br />
projects, pre-construction, cost benchmarking, training and peer review, and<br />
assures that lessons learned and best practices are shared company-wide,”<br />
says USA Building, Andrew Quirk. Th e top-notch training program, which<br />
Above and Opposite Page: Homestead Homest Hospital, FL<br />
began this year, was created by Mariya Stimson, the <strong>Skanska</strong><br />
Healthcare COE’s Training and Recruiting Manager, with<br />
the assistance of a team of 50 professionals from various<br />
healthcare disciplines.<br />
<strong>Skanska</strong> has recently completed a number of showcase<br />
projects, including Providence Newberg Medical Center in<br />
Newberg, Ore., the fi rst LEED® gold-certifi ed hospital in<br />
the U.S., and Homestead Hospital in Homestead, Fla., one<br />
of the fi rst Category 5 hurricane-resistant buildings in the<br />
U.S. Facilities on the horizon for <strong>Skanska</strong> include specialty<br />
hospitals, outpatient centers and medical offi ce buildings.<br />
<strong>Skanska</strong> executives have been tapped to speak at industry<br />
events, such as the ASHE conference, which took place<br />
in February in San Antonio and the Healthcare Design<br />
conference, which occurs in November in Dallas. <strong>Skanska</strong>’s<br />
own national healthcare conference will take place in Tampa<br />
this October, with a focus on lessons learned and best practices<br />
relating to the fi rm’s work at Tampa General Hospital. ◆<br />
FAST FACTS<br />
SKANSKA HEALTHCARE<br />
Last year, year <strong>Skanska</strong> completed<br />
$2 billion<br />
worth of healthcare work globally.<br />
<strong>Skanska</strong> moved from #3 to #1 this year in<br />
Modern Healthcare’s ranking of top 20<br />
construction management companies.<br />
Since 2000, <strong>Skanska</strong> has managed the<br />
construction of at least 140 of the nation’s<br />
healthcare facilities.<br />
ACROSS <strong>THE</strong> SPECTRUM<br />
Northeast Methodist Hospital, TX<br />
Duke University, NC<br />
Tampa General Hospital, FL Providence Newberg, OR<br />
18 coast to coast coast to coast<br />
19<br />
NOTES<br />
<strong>Skanska</strong> performs healthcare work for a variety of clients and<br />
purposes, public and private, on a nationwide basis. Below is a list<br />
of some of our clients.<br />
Academic Medical Centers<br />
At Duke University, University of Massachusetts Medical School of<br />
Research, Shands Healthcare at the University of Florida, Hospital of<br />
the University of Pennsylvania, University of Washington and others.<br />
Hospital Systems<br />
Catholic Health Initiatives (CHI), Carilion Health System, HCA,<br />
Kaiser Permanente, Sutter Health System and WellStar Health<br />
System to name a few.<br />
Community Hospitals<br />
In Florida, New York, Massachusetts, Connecticut, California,<br />
Ohio, Kentucky, Oregon, Michigan and many other states.<br />
Medical Research<br />
For the Centers for Disease Control and Prevention, the National<br />
Institutes of Health (NIH) and St. Jude Children’s Research Hospital.
“When you consider what<br />
these soldiers faced, this project’s<br />
tight timeframe was no challenge—<br />
it was an honor.”<br />
The new Center for the Intrepid in San Antonio was built as a monument to honor<br />
our soldiers and to provide advanced rehabilitation for those who sustained<br />
catastrophic wounds. As a Marine Corps veteran, <strong>Skanska</strong> Project Manager Mike<br />
Shaw understood how important the facility was to the service men and women<br />
returning from the Middle East and their families. Funded by more than 600,000<br />
Americans, the center needed to be completed within budget and on time, in just<br />
14 months. So Mike and the <strong>Skanska</strong> team created a strategic plan to get it done.<br />
www.skanska.com<br />
Mike Shaw, Project Manager, <strong>Skanska</strong> in San Antonio