Regional Perspectives

#alburywodongachange

Change Sponsor: Inspiring and empowering through servant leadership that honours people.

Regional businesses have experienced their fair share of disruptive change over the past 2 years. In a series of profiles, Albury Wodonga business owners reflect on some of the impacts they faced and what they did to steer their businesses through disruptive change. In this profile, we meet local building entrepreneur and change sponsor, Rick Leeworthy from Hadar in Wodonga.

April 22, 2022

Rick Leeworthy left school at 14 because he was desperate to get outdoors and start working for his dad. His father was a second-generation plumber and Rick followed in his father’s footsteps by qualifying as a registered plumber at 18, the youngest ever in Victoria at the time. Once licensed, Rick started his own plumbing business and although he loved the industry, he wanted some more visual job satisfaction and therefore started building townhouse developments on the side in his hometown of Yarrawonga.

“In those days, the industry wasn’t as regulated as it is today, and builders could easily pull the wool over the client’s eyes. I often found myself in the middle between the builder and the client as there seemed to be a vast gap between what the builder promised and what the client expected.” In 1995, Rick established his building company Hadar, with the goal of returning honour to his profession. Today, Hadar builds over 200 high-end homes per year.

Hadar is an ancient Hebrew word that means honour. “I’m not Jewish, but it perfectly represents who we are and how we want to operate as a company. We honour the trust our clients put in us. We honour the responsibility of creating a home for their family, and for their future. We honour the communities we build in, and the difference we’re making to our region. We honour the careers and the livelihoods of our own people. We’ve won many awards that recognise our work, and yet our proudest moment is when we hand over the keys. A home to love is why we’re here. It’s our purpose. It’s our passion. It’s our honour”.

And so, with honour at the centre of everything Hadar does, honour was the way Rick and his leadership team also went about managing the impacts of COVID on their employees, clients, and suppliers. It was also quite important to Rick that Hadar didn’t just survive COVID but emerge thriving from the challenges of this pandemic and the supply and skills shortage engulfing the industry.

Can you tell me a little bit about how you steered the business through some of the impacts of Covid?

"When Covid hit, Hadar didn’t have any HR resources, so Rick employed a People & Development Manager and empowered them with a budget to reach out to team members and support them.

Some people needed more flexibility with their family, others needed some financial support for a counsellor or some assistants with a gym membership or some Pilates sessions etc. The goal was to find out what our staff needed and support them where possible.

"I figured if I couldn’t change government policy, but we could make people feel loved and supported, and we’ve still got these things in place today. It’s been a game changer for us even though it didn’t solve everything. Some people are still finding it challenging, so I continue to encourage everyone to share their concerns, and work towards a solution together."

"We also invested in technology and platforms to help our staff continue working remotely, and innovated how we delivered services and communicate with clients. For example, we implemented:

  • DocuSign, which automated the entire agreement process,

  • Introduced virtual tours of all our display homes online, and

  • Implemented an app called Buildertrend that lets us send clients a weekly video highlighting the progress on their home."

"We’ve made it a policy to over-communicate – to both employees and clients. We changed our monthly staff email updates to a video – people seem to love it! I also started sending clients a regular video update of the current challenges within the industry and what we were doing as a company to work through these issues to keep their home progressing."

Managing to keep trades working on building sites was a slightly different story. In addition to Covid, supply chain issues and a massive skills shortage has also impacted the indistry hard. "We got on the front foot, called our trades and sub-contractors into the office and asked what what support they needed to keep our homes moving. We then contacted our suppliers and put our orders in early (sometimes up to 6 months in advance). This meant our builds are taking about 8 months to complete, a great outcome in a difficult climate."

“In the last 12 months, the cost to construct a home has increased by 24%. Many were negotiated as fixed price contracts, and this has placed builders under enormous strain. There will probably be another 12 months of pain in the industry as the boom in demand for homes combined with massive skills shortages work their way through the system.”

What was the hardest - most challenging - aspect of this?

The biggest challenge was managing through the COVID mandates within our industry. "It felt like the Victorian government gave us a loaded gun and effectively said sack everyone who doesn’t comply with the vaccine mandate."

"In 35 years of business, the last 2 years have been the toughest I’ve ever experienced because I care about people and try to respect their beliefs and opinions whether I agree or not." Rick said it was tough watching people struggle not only with the mandates but also with the added burdens of home schooling and stay at home rulings etc."

Whether he agreed or disagreed with the government mandates, Rick's wanted to honour people and their beliefs, but on some days it was tough navigating around the challenges and responsibility of being an employer.

  • "How do you tell an employee of 18 years that their job is in jeopardy due to government mandates?

  • What do you say to the wife of another employee, who’s crying because they’re planning to have a baby the following year and she doesn’t want her husband to get vaccinated until they fall pregnant?

  • How do you comply with all the rules and honour your staff and their beliefs?

  • How do you navigate through governmental changes - which seemed to change every other day, and weren’t all that clear – and manage through the practical stuff, ensuring everyone is being heard and their opinions respected?"

The one-size-fits-all rules were also impractical - and often made absolutely no sense at all - in our industry. The classic example was having to apply the same density rules as cafés when there’s probably only ever 2-3 people on our building sites (30 square home) at any one time.”

“We worked hard to honour everyone’s position, but sometimes it was a juggling act to continue employing people that weren’t allowed on building sites. Fortunately, we didn’t lose any employees.”

Did it ever reach the point where it felt like “it’s too much”?

“Yes. I love my work, but during Covid I often felt stressed. One night about 12 months ago, I told my wife, ‘I hated my job’ and she said she’d never heard me refer to my work as a job before. And, of course, it wasn’t that I hated my job, it was that I was working 70-80 hours a week trying to solve the unsolvable.”

Often business owners experience thoughts and feelings that lead to negativity and a self-defeating mindset. Have you ever experienced this, and how did you manage it?

"I’m a strong leader with a disposition to lead from the front. This is underpinned and sustained by my faith in God, inner strength, and an extremely loving and supportive wife, but even so, as a leader I’ve struggled at times."

“People often think leaders are invincible, but it’s not true, however, there’s a fine line between slumping and letting it get to the point where people think, ‘you’ve lost the plot’, and showing the type of vulnerability that leads to more openness and trust as other leaders’ feel empowered to step in and provide cover.

When I realised I had been neglecting my own needs, I opened up to my leadership team, letting them know I was struggling and a bit uncertain about some things. The support that flowed back to me was amazing, and suddenly those who I’d been propping up, were supporting both me and their colleagues. From that emerged a genuine support and collaboration, galvanising the rest of the organisation. I saw that I didn't need to suffer alone, and that showing my own vulnerable had an extremely powerful impact, drawing us closer as a team.

What specific things have you done to manage yourself through challenging times?

"I’ve always been pretty good at switching off regardless of what's going on at work. I knew I wasn't coping when my two coffees a day and ocassional glass of wine gave way to five coffees during the day, 2 glasses of wine in the evening, and then a sleeping pill before bed."

When Rick saw that his habits were unhealthy, he started working on refilling his physical, emotional and mental tank. "I knew I had to detox and also started working out most days. There was a lot I couldn’t control, but I could work on myself and my body, which helped me bounce across the top of the waves rather than ride them all the way up and down."

Did you introduce any new initiatives, or new skills and competencies?

Rick believes in continuous improvement and innovation, and often use a racing track analogy to highlight that we need to be working on the next generation carburettor, engine, exhaust system while the car is still running around the track.

"Normally, we apply this sort of thinking to our house designs, however, during Covid we applied it to the company and embarked on a re-brand. With Covid described as 1-in-100-year event, and with everyone concerned about their jobs, I thought it was important to clarify who we are, why we do what we do, and what differentiates us from others so that we’d come out of Covid ‘hitting the ground running’."

It may have seemed a counter intuitive to do but undertaking a rebrand while everyone was working from home and open to change, proved to be a good move. I thought some of the longer term employees would resist but people were open to it.

The rebrand – which took about 18 months – took people’s minds off Covid and put it onto the process of recreating our future. “I wanted people to feel engaged and involved and to own it – and they did. It pulled the team together and helped future-proof the business and prepare us for our next season of growth.”

“I’d like to say I did it this way deliberately to inspire people, but to be honest, their reaction and whole hearted commitment was a by-product, which exceeded all my expectations. Most importantly, it showed me that they wanted to be a partner in the business and a valued team member - not just employees clocking on and off.

I drew a lot of energy and joy from seeing my people really invest in the process especially since dealing with people during Covid has largely been an exhausting process.

Pictured: Rick Leeworthy, Managing Director, Hadar

What has it been like for your employees and clients, and how did you support them?

Rick says it’s been extremely hard for our staff, but he thinks they’ve all been amazing. "Some are still tired, and some of this is because of the current challenges in the building industry, which means everyone is extremely busy."

"When I look back over the years, I’ve never seen our clients and people as fatigued emotionally and mentally as has been the case over the last 2 years. I’m hoping things will settle down now, but in the meantime, we’ll continue to maintain the same level of support to help us get through whatever challenges lay ahead."

What have you learned about yourself or had some key insights around?

Five things:

  1. The need for self-care and that I can only help the team when I’ve got energy to give - when I was younger, I would have exhausted myself, supressed my own needs, and then reacted like a grumpy dad rather than a great leader. It's about shifting the balance to look after them by looking after me.

  2. I’m extremely grateful to have a wife who’s my friend – and lucky that also happens to be a professional counsellor.

  3. The need to stay humble, be open to learning and knowledge.

  4. The need to value and support my team because afterall they are Hadar - without them we couldn't have done what we have done to get through the difficult times.

  5. Leaders, particularly the strong ones, can often rush ahead and steamroll their teams to get things done, but that’s not leading. I want to lead by empowering rather than drive by squeezing. And I’m also motivated to continue to drive innovation and change, focussing on how to do things better and quicker.

Finally, do you have any tips for other business owners & leaders navigating change?

Rick offers these tips:

  1. Surround yourself with good mentors.

  2. Don’t operate like an island - get your head out of your own business to connect and collaborate with like-minded business owners, if just for encouragement. It will keep you going, result in more support, and lead to fresh ideas and alternative perspectives.

What are your top tips for managing disruptive change?

Rick Leeworthy has shared his top tips, and we'd love to know your best tips for navigating disruptive change.

Please share your tips by completing our survey.

Once the survey is closed, we'll consolidate the responses and report back in an upcoming blog.