Process Improvement and Cycle Times

When contractors grow inefficient processes usually get substantially more inefficient dramatically changing the Return on Investment (ROI) model.

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Saving 5 minutes per cycle for something done 100 times per month is only worth $6,000 over a couple years. At 1,000 cycles per month it’s worth investing up to $60,000 to make the process more efficient.  

Management Tools: Graph representing Saving Seconds Adds Up with Increased Cycle Times.

Where are your opportunities?

Too many times as contractors scale they look primarily at the technology tools and get poor results. One factor often underestimated is the investment in rolling out the new standards versus just the cost of the technology

Corbins Electric and NOX Innovations are really good at is looking at the whole workflow, talent, culture and technology. They give a great example of this with their purchasing process improvement.  

Everything stated here seems easy enough but is VERY difficult to execute consistently.  The team at Corbins has done an amazing job balancing high-level strategic direction, culture and process streamlining.  They are also great about sharing with their peers in the industry.




How Do You Prioritize?
This customer-first; projects-first focus is great in the earlier stages of development but starts to impact sustainable growth over time.
Setting the Conditions for Success
The contractors that will continue to grow profitably in the future are those that master talent development. Leaders must (1) setup the conditions for success with their team and (2) lead by example when it comes to their own development.
Over and Under Billing Metric Trend
No amount of excellence in collections will help you get close to 100% if you are continuously under-billed on your Work-in-Progress (WIP) as a whole.