Post on 17-Dec-2015
Measurements Role of objective measurements in management Growth without measurement Foundation
Measurement Tools JPP Accounting program Xactimate
Database program Purpose
Measure job status and progress Track sales and estimates Track marketing and link to jobs
Accounting Reports Balance Sheet
What you owe, what you own and capital investments
Key ratios Current Debt to Equity
Key Measurements Job Costing
By individual By job type In progress Completed
Sales By job type By individual Compare to goals
The King! Cash
Weekly cash projections A/R Reports weekly at least Measure turns and compare to goals Collect from a position of strength Manage and budget capital purchases Where do profits go?
Managing the Cash Crunch Start with a budget Short cuts and Let cash drive your plan Buy or sell to business weakness Equity partner Banking relationship Cash dance
Strategies for Speeding Cash Ask and Collecting from strength Types of jobs Have a cash plan for jobs and implement
All have some downside Close jobs Manage the schedule - Deposits and deductible
Billing and invoicing Profitability Subcontractors and materials
Banking Relationship Reality of cash in restoration
A/P and payroll - 30 days or less
A/R 40 days and over depending on the company
Banks Where is there money?
Understand your financials - esp Balance Sheet -the bankers do
Accurate and timely financials
Won’t lend $ when you need it Track record and consistency Relationship built on trust
Your Banker - Your Partner Educate on Business
Growth plan and strategy Vision Risks Margins and potential What you will do with the funds Difference from the construction industry
What do you want? Use your loan - dedicated funds
Not for capital purchase Operational cash
30 days revenue 80% of current receivables
Capital Expenses and Cash Stick to your budget Understand the ROI Rent Lease Bank Financing - not operating line
Accountability Subjective vs Objective Clear Expectations Be accountable for your communications
When, where and how do measurements take place
Sales Start with a goal - definition Individual Division and work type Include change orders and supplements
Review every week Sales meeting
Invoicing Focus on Revenue generation Complete jobs timely Measure weekly Leads to cash generation and profits
Quantifies production
Customer Service Most important measurement in company
Start with training and strategy - Strategies for Success class
Post job survey Progress calls Visit jobs - Trust but verify Quantify measurements and celebrate success
Gross Profit Budget Measure in progress Accounting function Weekly in progress Monthly completed jobs Sort by estimator and job type
Improving Margins Travel Materials Shop time Poor project management Completion Not always the estimate
Accountability Clear expectations Frequent feedback
Formal Informal
Fair and consistent Based on Objective measurements
Accountability Tools Put resources toward opportunity rather than problems
Coaching for performance Be fair, timely and consistent Should not be a surprise
Putting it all Together Timely and accurate measurements Clear communications Accurate timely information Cannot growth without good reporting
Build your company around a good office manager
Know your baseline numbers Know the industry expectations