Competency and Compensation

A large part of sustainable growth for contractors is being able to effectively leverage people with a narrower set of skills to still deliver the same level of value-add to the customer.

D. Brown Management Profile Picture
Share

This support structure is called “Enabling Bureaucracy” and is a combination of management time, control systems, QA/QC, workflows, training, etc.

Leadership Tools: Graph representing Value-Add and Compensation with Quantity of people in the workforce, ability to manage ambiguity, and skill level and execution.

As contractors grow they need to refine their organizational structures, workflows, job descriptions  and their talent processes to support this growth.

These support structures must be built over time and integrated with the contractor’s growth strategy.  Once effectively in place these support structures will produce a more scalable organization that can actually deliver the same value-add to the customer at a lower total cost providing a competitive advantage. 

These systems are slow, painful and costly to put into place.  The recruiting focus of a contractor must be in alignment with the levels of support structures they have in place.  Netflix defines this quite well in their culture slide deck and book.  

Are your support structure capabilities and recruiting in alignment?  

If not there will be excessive stress on the team combined with lower profitability.  This just means you are at one of the inflection points on the business growth cycle.




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.
Percent Planned Complete (PPC) - Calculation Example
Yoda would be the perfect coach for managing schedules on projects: “Do or do not. There is no try.” This is the heart of Percent Planned Complete (PPC) and the weekly cycle of continuous production improvement.
Capacity Expansion as a Strategic Decision
"Capacity expansion is one of the most significant strategic decisions faced by firms, measured both in terms of the amount of capital involved and the complexity of the decision-making problem." - Michael Porter (Author of Competitive Strategy)