A Value-Added Year
2020 – What a year?!!! – filled with threat, uncertainty, confusion, and conflict; negative emotions that usually lead to poor management decisions. Our New Year’s resolution here at Let’s Talk Business is to leave the negativity of 2020 behind and approach 2021 with positive thoughts of building companies that are profitable, resilient, flexible, respected, bottom-line-centered construction concerns.
In 2021 we will focus on adding value. Whether you are a $50 million or $500 million company makes no difference. We will examine the best management practices that apply to every functional area of construction from procurement to personnel to marketing to financial management, engineering, operations and legal matters. Our objective is to enhance the quality of all construction enterprises; to add value.
What We Will Cover
We will be looking at construction company functions from our traditional categories:
- Getting the work
- Doing the work
- Accounting for the work
However simplistic these designations may appear they clarify the functional facets of highly complex construction organizations.
Getting The Work
In marketing or procurement, we’ll examine:
- Profitable contract execution – Too often in the past, contracts were biased in favor of the owner, assigning most of the risk to the contractor. Because of the competitive environment, contractors tended to accept terms that were only marginally attainable thereby shouldering most of the risk. In 2021, we will discuss new methods of contract negotiation that assign risk equally to parties concerned.
- Procurement & Project Delivery – Here we will focus on owners and their ability to get the best vendor teams to compete for their work.
- Estimating for profit – Veering away from “low-bid” competition, estimators will learn to prioritize profitability rather than sales.
- Limiting growth – Construction Professionals will find ways to grow their business without sacrificing profitability or capital stability.
- Managing overhead (in response to top line growth) – Flexibility is the magic. We’ll show you how.
- Matching capital capacity – Banking/Surety Relations – Never, ever run out of cash.
Doing The Work
- Building effective teams – We’ll examine how to recruit, train, and motivate a quality organization.
- Managing cash flow – Getting paid on time – a complete change in “beliefs” is required.
- Technological literacy – Embracing and utilizing new building technology – key to competitive position.
- Relationships (with designers and owners)- No more low self-esteem.
- Managing Risk – From design, to bidding, to contracting, to building.
Accounting for the Work
- CFO Inclusion in top management – The first step in professional management
- Balance sheet management – The keys to the survival kingdom
- Reporting – Using the P&L as a guide, not a report
- Cost accounting – The magic of matching costs to revenue
Welcome to 2021
The outline above is where we’re going in 2021. We are certain the quality of construction concerns measured by profitability, stability, and longevity can be dramatically improved by changing long-held, unexamined management beliefs. We invite you to come along with us and focus on adding value to your company.
Welcome to a positive 2021.