Post 12: People Problems Are Profit Problems
“If your team is confused, distracted, or underperforming—it’s not just a personnel issue. It’s a profit issue.”
Let’s talk about the silent killer of profitability.
Not pricing.
Not materials.
Not even bad bidding.
It’s people.
More specifically—unclear roles, unchecked behavior, sloppy communication, and lack of leadership. These “soft” problems have hard consequences. They eat margin alive.
Let me give you a real example.
💬 Meet Alicia: A Manager Doing Everyone’s Job
Alicia was a rockstar estimator at a growing pavement company. She knew the numbers, could walk a jobsite blindfolded, and had the trust of the crew. So when the company grew, they promoted her to ops manager.
Only problem? No one trained her how to delegate. She ended up quoting jobs, babysitting crews, fielding customer complaints, ordering materials, updating job logs, and fixing the printer jam in the office.
And you know what happened?
Projects got delayed.
Costs got missed.
Employees got resentful.
Alicia burned out.
This wasn’t an Alicia problem. This was a systems and leadership problem—and it was costing the company over $25,000 a month in overruns and rework.
Sound familiar?
5 People Problems That Are Wrecking Your Margins
Let’s name them—and fix them.
1. Vague Roles & Responsibilities
If no one owns it, no one does it.
✅ Fix: Create crystal-clear job descriptions. Not HR fluff. Real, outcome-based accountability. Everyone should know what they own—and what they don’t.
2. Underperformers Left to Linger
One weak link slows the whole team. And everyone knows when you’re tolerating dead weight.
✅ Fix: Address performance issues quickly. Coach first. Then correct. Then cut, if necessary. You’re not running a daycare.
3. Toxic Personalities
One negative employee will cost you more than any marketing mistake. Bad attitudes leak into crews, clients, and culture.
✅ Fix: Set cultural standards like you do production benchmarks. Gossip, disrespect, and laziness are profit-killers. No exceptions.
4. Overstaffing & Bloat
More bodies ≠ more productivity. In fact, more often than not, it just creates communication friction and slower decisions.
✅ Fix: Trim the fat. Cross-train. Build a lean crew that knows how to win together.
5. No Communication Cadence
If everyone is guessing what’s going on—you’re bleeding time and trust.
✅ Fix: Establish a communication rhythm:
Morning huddles
Weekly leadership syncs
Monthly 1-on-1s with your team leads
Short. Direct. Relentless.
Your Culture Is Your Profit Strategy
You don’t need a ping-pong table in the break room.
You need accountability.
You need clarity.
You need leadership.
Profit isn’t just built in spreadsheets.
It’s built in conversations. In expectations. In discipline.
That’s why when a client says, “I’m not sure why we’re losing money…”
We always ask, “Tell us about your team.”
This Week’s Action Plan:
Audit your team structure. Who owns what? Where’s the overlap or gap?
Identify your biggest people challenge. Is it a toxic hire? A weak manager? No accountability?
Make a decision. Leadership is not waiting. It’s acting.
Because remember…
People problems are never just “people” problems.
They’re profit problems.
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