Work Conversion Cycle and Backlog Run-Off

A contractor can’t truly focus on the bigger strategic issues until they have a predictable backlog of work.

D. Brown Management Profile Picture
Share

If a contractor doesn’t have a solid market strategy and organizational structure in place it’s very difficult to build a consistent backlog.  

Leadership Tools: Construction Work Conversion Cycle and Backlog Run-Off

For construction leaders this is not a problem to solve but rather a paradox to manage rigorously through iterative improvement cycles. 


  1. Assess your market strategy and refine. This is the most highly leveraged decision you will make. Get plenty of input to help you see different perspectives but once you decide then act relentlessly.  
  2. Look at your organizational structure and determine what will best support your strategy.
  3. Create a scoreboard around your backlog similar to the one shown that includes existing work, a foundation (if applicable) of service & special projects and a methodology of forecasting your pipeline. 
  4. Develop a cascading set of objectives and key results that support your market strategy along with the lead measures you can manage weekly.  
  5. Execute as if your company depends on it - it does.  Go back to #1 to revisit at least annually.  

Do your management systems including technology integration allow you to have this level of visibility? 

Do you have a good mix of work with short, medium and long work conversion cycles?  

Do you have a foundation of service and special project work?

Can you see out 12 months in advance?  18? 24? Set a goal and stretch. The longer out you can see the stronger your foundation for sustainable growth. 


Learn more about how we help contractors develop a predictable backlog of work allowing for sustainable growth




Resource - Equipment Fleet Management for Contractors
Construction Equipment Economics should be required reading for all all owners, senior leadership, and managers of estimating, operations, equipment, and accounting for contractors with equipment fair market value (FMV) exceeding $1M. 
Retirement Onboarding - The Ideal Lifestyle for the Retiring Contractor
Work-life balance has probably mostly been work. Now is the time to see that work-life balance is really all about life.
Always Do the Math and Build Your Own Models
You will learn more in the process of building and refining your own models than you will in just reading 1,000 headlines. How much time do you spend developing your own models as a mechanism to learn?