Fully Vested

Respect, Recognize, Reward

“Many people can stand up and say, ‘We’re so grateful,’ but when Iris said it, you almost got chills. You could see that everyone felt it.” —Bella Babot, HRI director of marketing and human resources

The occasion was one of HRI’s “trade partner appreciate dinners,” an annual event that Babot (who was then in the high-tech arena) had attended as a guest. She hadn’t met Harrell before that night and was “amazed to see the employees of HRI working together as this happy, well-oiled machine.” She was especially floored when Harrell spoke about the professionalism and customer service of each trade specialist. “She was just exemplifying gratitude,” Babot says.

Good trade contractors want to do high-quality, challenging work, of course, and HRI specializes in both. And they really value being paid quickly and well. “I’ll invoice them Tuesday and have a check by Friday, without discussion,” Camolinga says.

“Iris set a standard a long time ago: We truly value our trade specialists,” chief estimator Paul says. “And we work long and hard to make sure we get trade specialists who have the same philosophy as we do.”

Likewise, Harrell recognizes her team at every turn, in ways that range from her un-CEO-like practice of routinely thanking them for specific contributions to the company’s success, to a generous benefits program that includes the literal sense of ownership that the ESOP bestows. (Employees are 25% vested after two years and fully vested after five years.)

Most distinctive are HRI’s “cultural” rewards. The whole team selects an employee of the quarter and an “employee-owner of the year,” with the latter unveiled in a surprise, and frequently hilarious, video produced by Giammona. He’s also a musician, and when people hit their 10-year HRI anniversary, he writes and performs (with backup singers) an equally unique and funny “10-year song” at an all-staff meeting.

Develop Systems. Stick to Systems

“We used to call her ‘the overkill queen.’ Her thought process was: ‘What would my mom expect the house to look like?’” —Deana Bond, HRI chief production manager

Clean jobsites don’t just give comfort to clients; they symbolize a remarkable attention to detail that strengthens the loyalty of trade partners.

“They are very demanding but also extremely organized,” says Tony Fisher of Fisher Power and Data, which specializes in high-end electrical systems. “They organize every detail, from initial walk-through until the job is done.” That, along with a single source of contact for each job, lets his teams work more efficiently, at a lower price, than for companies that need more hand-holding.

A seemingly small but critical detail is protection of clients’ belongings. “They cover absolutely everything,” Fisher says. Painter Camolinga agrees. “A lot of contractors leave protections to us, or only go to a certain degree. These guys go above and beyond, way beyond dropcloths. There’s no cutting corners.”

Such meticulous attention to detail started in HRI’s first year with the establishment of “jobsite rules” — no swearing, no smoking, no radios, no dogs, recycle! — that even now differentiate the company from much of its competition. The company’s countless systems are evaluated, measured, and continually tweaked, yielding continuous improvement in efficiencies and client satisfaction.

There was the employee handbook (1987), followed by “pardon our dust” mailings, job descriptions, a mission statement, job calendars, ongoing client surveys, systematized hiring practices, 360-degree performance reviews, job handoff packages, safety procedures, quarterly all-staff meetings, weekly department and managers’ meetings, committees, and a meticulously crafted marketing plan that maps out everything from print collateral to educational workshops (for which homeowners pay $20) to a “networking schedule.”

Careful evaluation applies to building methods and materials, too. Though HRI is known for its high-end work — Harrell and Benson’s newly renovated home in particular is a model of advanced “smart home” technologies — Harrell prefers to try new things slowly, in connection with the proven. “I have made my team sufficiently cautious” of jumping on new bandwagons, Harrell says. “They want to be advanced, but they’re aware of liabilities.”

Paperwork and protocol logjam? To the contrary, “We have a saying: ‘Who else needs to know?’” Babot says. “Iris has a thing about overcommunication. She’s empowering, and she stands by us.”

Collaborate and Take Calculated Risks

“She’s very creative but has learned to keep her entrepreneurial instincts in check. She has strength and self-discipline, and is always willing to listen.” —Ciro Giammona, HRI general manager

While most of HRI’s systems are generic in function, some are unique reflections of the collaborative spirit that infuses the company. This is due in part to Harrell’s leadership style (her door is literally open to everyone) and in part to the ESOP, which by giving everyone a bead on the numbers, encourages innovation and continuous improvement from all.

One employee’s idea, for instance, was the “HRI Knowledge Base,” an intranet repository of ideas, sources, and lessons learned — easy for all to find when needed. The “People Power Board,” developed by Bond, maps out a three-week projection of “people needs,” accounting for every production employee and every job. The “Magic Barrel,” one for each lead carpenter, contains screws, nails, brackets, duct tape — “probably $1,000 worth of miscellaneous materials you might need” on a jobsite, Bond says.

There’s also “HRI University,” on-site educational programs held at least quarterly; strong support of job training and certifications (an astonishing 23 of the company’s 35 employees are Certified Green Building Professionals, for example); and training for and by trade partners as well.

And contracts, though sometimes 20 pages long, are written in narrative format — more like specific yet warm personal letters than legalistic documents. “We’ve found that clients don’t often read plans well because they have no training,” Paul says. “But if it’s a narrative, they will.”

More recently, HarrellCARE evolved from an idea that Giammona proposed a few years ago, when the company was so busy doing large projects that some smaller projects passed it by. “Ciro talked me into it,” Harrell says. “His thinking was, ‘Why do we throw this good fish back in the water?’” The economic slowdown served as opportunity to map out a system that enables HRI to do smaller jobs efficiently, profitably, and to its customarily high standards.

Collaboration also runs through all HRI projects. Production staff and trade partners participate in job planning from day one, for instance. And, despite having one of the most talented and award-winning design teams in the industry, “collaborating with clients is a philosophy,” Nowicki says. “If you engage the client in the design process, it’s a much stronger relationship.” The tagline doesn’t exaggerate: “We never forget it’s your home.”

Clients are fully aware of their valued role in the process. On a recent tour of several HRI projects, Harrell gestured to the beaming homeowner and matter-of-factly said, “She was lead designer. She had the vision. We just had to get it on paper. It’s really incredible to help someone achieve their dream.”

Be Authentic

“She’ll cut right to the chase, but in a loving way. She’s one of those people who tells you if you have spinach in your teeth, but she also tells you how beautiful the rest of your teeth are. She’s tough but uplifting.” —Michael McCutcheon, McCutcheon Construction

Harrell’s rare combination of blunt honesty and warmth encourages conversations that strengthen outcomes and relationships. “She pushes people; she doesn’t allow them to get away with anything,” Downing says.

“Honesty is always the best policy if presented in a loving way,” Harrell wrote, years ago, as one of her “10 business commandments.” She has always been open about her relationship with Benson, for instance, and while some people may never accept lesbians and gay men, her openness more commonly puts people at ease, and engenders trust and respect.

Another area in which Harrell’s honesty is an asset, perhaps ironically, is sales. Behind her charisma is a terrific capacity to listen and understand and never simply parrot what people think they want to hear. “She’s really good at assessing clients’ pain without coming out and asking about it directly,” Paul says. Thus, in presenting her recommendations, always in a way that makes people comfortable, Harrell might say, “I hear you, but I’m not sure that’s right.”

“Iris will draw a line; she expects the best from people,” Giammona says. “I think she sometimes has more confidence in people than they have in themselves.”

Likewise, her honesty extends to sharing information about her own business with other remodelers. “She is so forthright, so willing to share the good, the bad, and the ugly about her business — how they got to where they are and what’s helped her,” Downing says. “It gives her so much credibility so fast.”

BEHAVE FAMOUSLY

“Iris is a natural schmoozer. She’s modeling for the rest of us.” —Ciro Giammona, HRI general manager

Iris Harrell the person has long been synonymous with HRI the company and even its logo, an outline of an iris inside a purple H. She is well known in the South Bay area thanks to the company’s longevity and community outreach, which the media find irresistible.

Yes, HRI is a perennial winner of design and construction competitions (a forthcoming documentary even focuses on The Forever Home, the universal design concept embodied in Harrell’s and Benson’s home), and Harrell herself has won many high-profile awards for women business owners.

The company was also years ahead of the industry in holding homeowner workshops that let homeowners meet the HRI team. And who better to conceive of the wildly popular “Ms. Fix-It” home improvement workshops for Girl Scouts?

“She is the icon and the brand,” Babot says. But with Harrell’s eventual retirement, the goal is to transfer HRI’s ownership — and its public identity — to the rest of the team, and in particular to general manager Giammona.

“We’re entrenching ourselves in the community,” Babot says. A new ad campaign focuses on employee ownership, for instance. In addition, many HRI staff are on the boards of community and business groups; they are active in disease research and prevention organizations; they sponsor local music and arts events; they reach out to past clients and generally strive to put a positive public face on the company.

“We’re thinking long-term, and we are planting seeds,” Babot says.

Harrell approves. “Good businesses are built on awareness,” she says. “It’s all about emotional intelligence.”

—Leah Thayer, senior editor, REMODELING.

Click here to read about the 2008 Fred Case Award Winner.
Click here to read about the 2007 Fred Case Award Winner.