It’s Football Season: What does football and construction ......•Football - “More sport than...
Transcript of It’s Football Season: What does football and construction ......•Football - “More sport than...
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It’s Football Season: What do football and construction firms
have in common?
Copyright 2019 Albin, Randall & Bennett
Starting Lineup
David V. Jean, CPA, CCIFP, CExPPrincipal, Albin, Randall & Bennett
• Football - “More sport than business, but it’s still a business” -Coach Bill Belichick
• Players• Construction firm
• Owners, employees
• Subcontractors and
• Surety and agent
• Insurance agent
• CPA \ Attorney \ Banker
• Does your team have the most experienced players?
Business is a Team Sport
• Football teams never skip the draft
• More important than ever to strengthen the bench
• Be prepared for growth and unexpected losses
• Opportunities to improve team performance
• Dedicate significant time and resources to develop leaders
• “Talent sets the floor, character sets the ceiling.” – Coach Belichick
Continuing the Draft
• Football teams always emphasize the fundamentals
• Accurate job cost system• Construction accounting software• Financial management reporting
• Timely, accurate, business intelligence
• Documented systems, polices and procedures• Next person up mentality• “Patriots Way” - culture
• Project management systems• Formalized and standardized
• Training and safety systems• Risk management• “There are no shortcuts to building a team each
season. You build the foundation brick by brick.” – Coach Bill Belichick
Fundamentals: Blocking and Tackling
• Morning huddle• Safety – Tool Box talks
• Production goals
• Material handling
• Site conditions
• Subcontractor coordination
• Field access to job information• Mobility
• Plans
• Documents
• Budgets
• Technology
• Biggest time wasters on job site – waiting for work and instructions and executing the wrong instructions (rework)
Communication
• Fumble – game changer
• No different when estimating hand off project to project manager
• Formalized process
• Job strategy meeting
• Key areas to communicate • Construction risks -CPM
• Contract provisions
• Site conditions
• Safety issues
• Owner's expectations
• Scheduling
• Plans and documents
• Budget
The Handoff
• Football coaches practice every conceivable situation to prepare their team
• Safety environment and site conditions
• Critical path disruptions
• Loss of key supplier, subcontractor, project manager
• Accidents \ catastrophes
• Bidding environment
• COVID?
Situational Awareness
• SWOT analysis
• Short-term and long-term business strategies • Differentiation is a
challenge in a competitive environment
• What is your value add?
• In-game adjustments• Adaptable and flexible
• Culture driven
Game Planning
• Players, coaches, owners, GMs
• Construction owners and key employees
• Training and coaching
• Develop your bench
• “Stretching”
• Incentives to retain employees
• Work environment
• Upward mobility
• Contingency plan
• Comprehensive exit plan for owners
Replacing Your Star Player
• Know your job cost numbers
• Labor and overhead costs
• Gross and net profit margins
• Break-even
• Key Performance Indicators (KPIs)
• Bank covenant ratios
• DSCR
• Tangible net worth
• Months in backlog
• Performance factors
• Surety capacity
• Track bid win work and spreads
Analytics
• Post job completion review• Budget vs. actual
• Production
• Personnel issues
• Subcontractor management
• Customer satisfaction
• Formal process for jobs above a certain limit
• Safety incidents
• Identify successes and failures• Action steps
• Accounting, estimating and project management• Feedback loop
• Self-improvement process
Watch film
• Who?• Customers, architects, engineers,
subcontractors, vendors, bankers
• Customer satisfaction surveys
• Newsletters
• Profile successful projects
• “Quotes”
• Public relations
• Project portfolio
• Community involvement
• Social media• “I don't Twitter, I don't MyFace, I don't
Yearbook,” – Coach Bill Belichick
Cheerleaders
THANK YOU !!
Questions ?
David V. Jean, CPA, CCIFP, CExPPrincipal, Albin, Randall & [email protected]