The Construction of Culture & Change

In this episode of Membership IQ, host Sarah Sladek sits down with Christy Beatty, Vice President of Chapter Services and Member Engagement at the Associated General Contractors (AGC). Christy discusses the pressing challenges facing the construction industry—chiefly workforce shortages and generational shifts—and how AGC is adapting to meet member needs in a rapidly changing environment. She emphasizes the growing importance of workplace culture, onboarding, and retention strategies to attract and keep younger generations like Gen Z. The conversation also explores AGC’s digital transformation and embrace of virtual engagement, the shift from traditional member services to becoming a problem-solving business partner, and the organization’s adoption of the Entrepreneurial Operating System (EOS) to create clarity, accountability, and strategic focus. Ultimately, the episode highlights how associations must evolve to stay relevant, innovative, and impactful.

Transcript

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(Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome back to another episode of the Membership IQ. This is where you go to get smart about membership. I'm Sarah Sladek, your host, and today I have in studio with me, Christy Beatty from Associated General Contractors. Christy, welcome to the podcast. I would love if you would just give a little intro about who you are, what you do in your day-to-day. Sure. So, my name's Christy Beatty. Thank you, Sarah, so much for having me. I work with the Associated General Contractors. I'm the Vice President of Chapter Services and Member Engagement. We have 88 chapters here at AGC. Our members are commercial contractors. They build the infrastructure of America, and I work very closely with all 88 chapters and their staffs. We are very fortunate in that all 88 of those chapters have paid staff, and across the network of chapters, we have about 650 staff, so my team here at AGC really works very closely with the chapters to make sure that they are being successful in the work that they do to support the members and support the industry. Yeah. So, for our audience, I have known Christy for quite a while, and AGC's work is, when you think about construction and kind of building our cities and our infrastructures and all the things, it is such a huge industry, and I know workforce is a big concern. We'll talk about that a little bit today, but here and now, your organization, it does a lot in the course of a year. You've experienced a lot of change. Workforce is just one piece of it, but I'm just curious, what right now is currently really top of mind for your organization, and what's the burning platform, so to speak? What are you spending a lot of time thinking about, talking about? Well, we are spending a lot of time talking about workforce. It is a topic that we've talked about for the better part of 20 or 30 years. It is an issue that's not going away. The perception of the construction industry, let's face it, mamas and daddies don't necessarily want their kiddos. The idea of digging ditches and being out in the elements and being cold, especially on a day like today, is not all that appealing to lots of parents. What we are seeing when it comes to workforce is that we're seeing a lot of young people who are more open to the trades and more open to the idea that they don't necessarily need to go to college to get a college degree, and they can be quite successful with a job in the construction industry. Workforce is definitely very top of mind. Not only are we looking at the recruiting aspects, but we're looking at how do we build cultures inside of member companies that young people are going to want to stay in. The younger generation, the things that motivated the older generation are not the things that the Zs are looking at. The younger generation is much more interested in culture. They're much more interested in how are you onboarding me. I don't want you dropping me into the deep end of the pool, which full disclosure, the construction industry has been really not so good at. They tend to drop you into the deep end of the pool, and you have to figure out how to sink or swim. The need for cultures to change so that we can retain young people is really important. The other issue that I think is something that a lot of industries are affected by, and that is the changes in technology and the impact of AI. It is something that we are looking very closely at. How can we better support our member companies, especially smaller contractors who are really trying to figure out how they sort through all of the options out there? What does AI mean? How can it allow me to work smarter and better? What are the risks? How do we need to protect our companies so that we don't open ourselves up to cyberattacks? Yeah. Wow. Okay. I want to tie it. Let's go back to the generational conversation for just a moment, because I do recall when I first did some work with AGC, what feels like yesterday, but it was several years ago. Time has flown. But at the time, the hot topic was, uh-oh, millennials are entering the workforce. What is our industry going to do? How are we going to recruit and retain them? Now, here we are. Another generation is now in the workforce a few years in Generation Z. I am curious, what have you seen or have you really observed a significant difference between what it was like when millennials came in to construction and when Gen Zs are coming in? Yeah. So, you know, I think that, you know, honestly, there was a lot of, for lack of a better word, maybe some complaining about millennials, you know, and labeling of millennials instead of maybe leaning into some of the skills that they bring to the table and helping them get to a place because they, let's face it, they are going to be the future leaders or they're becoming now the leaders of these organizations. I do think companies learn some things based on some of the mistakes that they made with millennials. And they're starting to realize that, you know what, we were told that millennials were not going to behave the same way that the Xers were. And now we have this whole new generation of Zs in the workplace. And I think companies are waking up to the fact that we've got to do a better job of onboarding. We have to explain, we have to have a mission and a vision for our company. And we have to be articulating that because young people are not even going to come through the door. They're not even going to come through the door and have a conversation with us. The millennials were at least willing to have the conversation. But I think companies have really learned something from their experiences with millennials. And I think Zs are, they're pressing on some of those things even more. And as we've seen the workforce issue get more stark over time, it is, you know, it's all about economies, right? I mean, when you look at, I can't bid work. I can't take on more projects because I don't have enough workers, which is going to impact my bottom line. I mean, it really is a business decision. It's really, if I want to be successful and I want to grow my business, then I'm going to have to do some things differently. Right. And that's what we're hearing as part of that conversation. Right. Yeah. I feel like the millennials were a little bit of a warm up and it took some time for people to accept that change is happening. And now they're a little more receptive to Gen Zs, but yet we've come that much further. Gen Zs are even, you know, holding organizations even more accountable. So something that I have just kind of observed of AGC as well as other associations, you know, it used to be you were a membership organization and companies joined because they wanted to be part of this organization. But I'm starting to think, and I'm so curious to hear your perspectives on this, that you're not just membership in the services of membership anymore. You're kind of morphing because as you mentioned, well, we got to figure out workforce. We got to help with the pipeline. We got to help with AI. And now all of a sudden, AGC is like, you know, having to think about solving some really big challenges for members. So am I right in saying that that transitions happen? And if so, how is AGC helping? What are some of the services? How are you how are you dealing with this new role? Yeah, so you're right. I mean, things are moving so quickly and change is happening and there are some really, really big issues to help the industry solve. One of the things that we're doing and, you know, I think associations across the board have been kind of slow to do this. And it's a mind shift. It's a mindset shift, if you will, in thinking about the association as more of a business and being in the, you know, solving problems and setting goals and targets and measuring things in ways that, you know, I think associations do a lot of really good work, but oftentimes it's a lot of activity. And because we're not measuring it, we don't really know if we're focused on the right things and we're making the impact that we need to. And business owners these days, unlike some of the members of the past that I think where you were leading to this, Sarah, is that they joined because it was the right thing to do. They were affiliated because of the member services that we offered. That's not good enough anymore. And if we're not solving problems for our members, if we're not helping them grow their business, if we're not saving them time and money and creating efficiencies, they're going to go somewhere else. And there are for-profit businesses out there that are competing with us more and more and more every day. We're no longer in the, hey, we've got information for you business and this is the only place you can get it. I mean, those days are long gone. And so we really have to shift our thinking and shift the way in which we are engaging with our members. And I'll give you an example. You know, it's no secret that young members are not as likely to show up for meetings and events, right? And one of the things that COVID did, which right now seems like it's so far in the rear view, but one of the things that it forced associations to do was to get better at virtual engagement. Right. And because we are an industry that is so boots on the ground, literally, and so in person, you know, I think that that some of our some of our chapters, for instance, thought that, you know, going back to everything in person was the answer. But what we've realized that if we want to engage the Z's and we want to bring them along so that they engage with the association, we have to build virtual communities. So one of the big projects that we have going on right now is we are going through a big digital transformation here. We were using one AMS for probably 20, 25 years. We now are coming into the 21st century with much better technology, much better ways in which we're going to be able to engage in a virtual way. And we've COVID taught us so much and we already were on a track and continued a lot of the work that we did during COVID to engage virtually. But this is going to take us to the next level, I feel like. And if organizations are not digitally ready, they're going to be way, way behind. And we knew that. And that's why we're making some of the changes. We're also looking at piloting some virtual engagement ideas. You know, the idea of you have to be committed to this thing and this project or this initiative, we've gotten in the mindset of in order to be innovative, and let's face it, we have to be, we have to try new things. We're going to fail more than we're going to succeed. But if we're not failing, we're probably not trying hard enough. And so we're going to be piloting and have already started piloting some virtual types of engagement just to see if they will stick and see if they're things that the younger generation and all of our members are really looking for. Yeah, you just dropped so many little tips in that answer. Like, you know, and and I so yes, there's that transition of going from we're a membership organization. We're just kind of here. Our doors are open to now we're in the problem solving business and we're helping members and the profession be more successful. There's also, you know, thinking about the transition of what that means. Yes, you're so you're thinking more about your deliverables, but that requires internal change. And so you're encouraging your your chapter leaders and members to be open and adaptive to change. I am just so curious whether you want to comment on you as a leader or on your team at AGC as leaders. How have you managed to have this, you know, lead leadership in a time of change, this transition and to get out of your comfort zones and try new things, be comfortable with failure, all the all of that. So we we were we're really handed some change here at AGC. We have a new CEO, a new CEO in the organization. We also have been we've been working from what I'll call a business plan for the last several years. And frankly, we haven't done a lot of strategic planning. Now, these these business plans that we work from really have been kind of a guide for the organization. But we have recently made the decision to really look at doing things differently. And we're going to start using a system that really was built for for-profit companies. But it's called EOS. It's Entrepreneurial Operating System. Yes, I'm very familiar. I love it. Yes. So we are moving to that model. We realize that it's going to have us working in very different ways. And it's going to, I think, clarify our mission. It's going to clarify the goals. It's going to you said early on that in a course of a year, we do so much and we do we do a tremendous amount. Part of the challenge in that, and I think other associations can commiserate with this is we're not very good at killing things. We're not very good at saying no. And before you know it, we've piled all these things onto the plate. And before you know it, we're not doing any of it as well as we could be. And we realize that. So this EOS, I think, is going to help us focus. It's going to create more accountability and that our hope is that we are also going to engage our chapters. We already have a really great relationships with our chapters. We see them as partners. And we are this this new way of working, if you will, and moving the ball forward is going to help us engage our chapters and and we will work toward that flow down so that our chapters are also successful because as a national organization, we are a federated organization. We rely on our chapters to be successful in order for the brand to be successful. And so in partnership with our chapters, as we roll this new way of working out and we share these goals, we're we're planning for them to be common goals so that we're all headed in the same direction. And we're focused on instead of a hundred things, we're focused on five to seven things that we decide we're going to do really, really well. Yeah, that's a huge shift. And that is hard for so many associations. It gets to be about quantity and the pressure to do more and more and more as opposed to quality and really focusing in on a niche. And and so you have mentioned numerous transitions really within this little talk, whether we're talking about technology or generations, management, leadership, you know, thinking about purpose of the organization, direction of the organization, just wow. So I'm curious if you have a tip for our audience on how to keep your community together and moving alongside you in a time of such tremendous change. So I think the key really is to be transparent and to communicate, communicate, communicate, communicate. So often I think that we make the mistake of, you know, we get so busy doing the work that we really forget to talk about the mission. We forget to talk about and bring everybody back together and remind people of what we're focused on. And it really that's the one thing about this new system that we're going to be working with. I think that's going to help us is to clarify the mission. It's going to clarify the goals. It's going to have us talking about the same things in the same way so that there are common themes. And, you know, when you have members who are confused or they're wondering why you won't work on this little pet project, you're able to really kind of be transparent about what the goals are and what you've set out to do. And it and it also gives you permission to say no to some things. And I think that is huge for associations. I think because of the way because we have boards and they're volunteers and we are service minded. Okay, we just people who are drawn to this work, you have to be service minded. And what comes with that is oftentimes wanting to please. And so we want to say yes, we want to say, but I think this is going to allow us in a very strategic way to say no to some things and explain why these other things are the right things to that we're working on. Yeah. And to have that those checks and balances and really kind of a decision making model and to have that vision to be so incredibly clear. I can imagine that it helps you to breathe a sigh of relief in a way and to say it is okay to let some of these things go right. It is. It is. I mean, I'm super excited about it. Okay. And, you know, as a leader, it's giving me the tools that I have not had in the past to be able to do some of that saying no, that letting some things go. I think that for us, you know, I just met with my team. We talked through this. I'm super excited. They have lots of questions. And I told them, I said, one of the things that I think is going to be the hardest is letting some things fall by the wayside and realizing that some of the things that we do are not really having an impact. And it's okay to let them go. You know, one of the pieces of advice I would give to folks that, you know, when you're adopting anything like this, I anticipate, Sarah, over the next couple of years, it's going to be really messy. It's going to be kind of messy for us. But I'm excited about it because I see the vision of where we can be as an organization three to five to ten years from now. And the impact that we can have will be so much greater. So before we adjourn, I'm just curious, if vision is becoming more clear, are you willing to share one little aspect of that, like something that you're excited about creating down the road or that you anticipate will happen down the road? Yeah. So, you know, because I work so closely with our chapters and we rely on them to be successful. One of the things, a tool that we developed about five years ago that has been such a and has been so wonderful in helping the chapters really kind of have a north star. And that is a chapter self-assessment. It is completely optional. We don't force our chapters to fill it out. It's more of a carrot, if you will, than it is a stick. This year is the fifth year that we've, it's a benchmarking tool. It really allows them and I use the metaphor of looking in the mirror. It allows them to look in the mirror and gauge really along just a short list of KPIs. Things like, are you growing as an organization? Are you retaining your members? What's your retention look like? Really getting to know their numbers. Is their revenue growing? Do they have enough money in the bank for reserves to be a viable organization if another COVID rolls around? So, taking that information and really challenging our chapters now to push the envelope and identify some big, hairy, audacious goals for their own organizations. So, that they're growing membership and to be thinking in different ways than maybe traditionally they've thought. Are there opportunities for mergers with other organizations? There's a whole world of way in different ways in which an organization can grow. And so, we're challenging. This allows us to really, you know, open up the conversation as we've done this self-assessment. And now that chapters have had a chance to really look in the mirror. And now that they understand their numbers and they understand the data. And they're very competitive people by nature. It's allowing them to focus. To focus on the things that need attention and to upskill and get the right people in the right seats to move the goals and the mission and the vision forward. Yeah. And that's really powerful. I was just having a conversation with an association prior to our time together here. And they were telling me about this big campaign they're doing. And it sounds amazing. But then I asked, how are you measuring your success? And it was, it was crickets. It was like, well, we're just, we're not really. And, you know, like you said earlier, I think there's a little bit of a culture in associations in the past because people joined readily. It was the right thing to do. And you were able to do some of these things just for the heck of it. We're just going to keep having these banquets and events. And we're just going to keep having these conferences or we're going to do these campaigns. But we're not actually thinking like a business. And so what you have shared here and what AGC is doing. I think that is going to align you for tremendous success. And I think a lot of associations could learn from your example. Great. Well, thank you so much. It's been talking, talking through some of this. Yeah, I'm excited about 2025 and all the opportunities and things to come. I think it's a very bright future, even though there's a lot of disruption happening. There's so much opportunity to really be the place where contractors come to solve their problems. Yeah. Oh, absolutely. I cannot wait to see what happens for AGC next. And so you have to promise to be on the show, like maybe this time next year or sometime down the road. I want to do a check in and say, OK, Chrissy, how did you do it? What happened? Because this is good stuff. I'm very excited for AGC. So thank you for being on the Membership IQ. And thanks to our listeners for tuning in. We'll see you next time.