The Differentiating factor  

The Differentiating Factor

When Charles Paquin became president and CEO of Resun in 2003, he discovered the modular space provider was struggling to find its identity. For the most part, the company followed in the footsteps of its larger, more experienced competitors, and emulated what they did. To better position the company in the marketplace, Paquin knew Resun had to forge its own path across the competitive landscape. Following a thorough assessment of the strengths and weaknesses of the organization, the administrative team recognized Resun was uniquely suited to differentiate itself from the competition with its turnkey solutions and higher levels of service. "We set an objective to become the market leader in that sub sector of modular space-- turnkey facilities and larger facilities," Paquin said. "We developed our entire business strategy around that. It entailed how we're organized, our information systems, our marketing plans, how our sales team is managed and focused, and all of our backroom operations."

Turnkey solutions

Through the organizational assessment in 2003, Paquin and his team highlighted the strengths that differentiate the 200-person company from the bigger competition. Resun's value-added services include a needs assessment that helps its customers design their modular facilities. The company then passes the plans along to the factory where the new modular unit will be constructed. While the building is being built, Resun handles all of the necessary site work. The company then transports the individual modules to the job site, connects the units to finish the building, and performs all final site work such as exterior finish and landscaping. According to Paquin, Resun's turnkey solutions provide two significant advantages over traditional construction. First, Resun accelerates the construction process. As the foundation is being poured and utilities are being connected, the modular building is being built at the factory. By simultaneously conducting these two steps, Resun can save its customers up to 40% in construction time. The company also offers its customers flexibility. When a modular building is no longer required for the reason it was built, Resun can dismantle, relocate, reconstruct, and reconfigure the modular space to resolve the client's newest space needs, or the needs of another client. "We work with our customers to really develop a building that includes a floor plan and mechanical systems that meets their needs," Paquin said. "Our service goes beyond the building-- it's in the delivery, set up, and installation. That's where the value add comes in. Add in the leasing options we provide, and we're truly a one stop shop for modular space needs."

Re-alignment

To capitalize on Resun's turnkey-service capabilities, Paquin and his administrative team first had to reorganize the business. In 2003, branch and regional division managers responsible for their own territories, including profit and loss, geographically managed the company. Paquin restructured Resun to create a more traditional, functional organization with a VP of sales, a VP of operations, and a VP of construction services. The goal, the chief executive said, was to align the organization and drive accountability. "We wanted true core competencies within each of our functions," he said. "As a regionally managed business, we never got the good cross pollination of expertise, processes, and systems. We really needed to standardize what we were doing well in particular segments and implement it throughout the entire business." Throughout 2004, the company worked almost exclusively on the reorganization, with the leadership team spending an estimated 80% of its time on the project. Resun's leadership set goals, identified metrics to evaluate performance, and began developing a system that would allow individuals to easily track their performance. The company established an internal Web site called My Resun. Any employee within the company can log onto the system and see the individual metrics that relate to their objectives. A sales person can see what their month-to-date or year-to-date productivity is, the number of deals that they've closed, and the deals that are pending. "It's individualized and continuously updated, so employees know what their goals are, and how they're progressing toward their goals," Paquin said. "And, perhaps most important, our reward mechanisms are based on their achievements. That really helps drive our employees to succeed." Reorganizing the company, setting goals, creating metrics to measure performance, and rewarding achievement have been critical in Resun's transformation into a market leader, Paquin said. Since the company made the transition in 2004, all key operating metrics have shown dramatic improvement, and the company is now generating more than $200 million in revenue. "Hiring the best people, giving them the tools to execute, and recognizing them--that's been the key to our success," Paquin said. "We've had a great three years with a lot of change, and our people have been amazing. And it's our people that will drive our success in the future."

More information can be found at http://www.resun.net

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