Contractor Scoreboard - Disciplined Execution

As contractors get larger it becomes more challenging to keep everyone aligned around the strategy and the key measures of success.

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To keep your scoreboard improving on all key measures you will need to develop some operating rhythms and feedback systems that align every functional area and team member effectively. 

Book: 4 Disciplines of Execution by Chris McChesney, Sean Covey, and Jim Huling. KEY RESULT (Desired Outcome): Move project cash metric from 0.87 to 1.1 by the end of the year. LEADING ACTIVITIES (Creating the Outcome) Negotiate favorable change, billing, retention, and payment terms with the customer. Load the Schedule of Values (SOV) and “Sell” it to the customer within 10 days of award. Get all open changes approved by billing cut-off. Progress bill at least monthly targeting 1.2X.... 4 more....

All businesses have faced this challenge throughout history as they have scaled. There is no single prescriptive tool that will work for every contractor. Study what other companies have done and how the body of knowledge has evolved over time then develop systems that work for you.

Below are some resources that are all interrelated going back to the 1950’s:

  • Management By Objectives (MBO) / Management By Results (MBR):  Peter Drucker’s original codification of these principles.
  • Objectives and Key Results (OKR):  A disciplined quarterly process including stretch goals cascading from the company level through individuals.
  • 4 Disciplines of Execution (4DX):  Continued building upon the body of knowledge by the team at Franklin-Covey.

 

Cash Flow is only one metric of the broader Contractor Scoreboard.

For maximum impact it’s important to develop an integrated system that works for your company.  It must tie together everything from your strategy through your individual functional area business plans all the way into job descriptions, individual performance feedback and the interviewing process for new team members.  


Contact us to discuss the many tools and systems further


Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

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