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.




Lean Principle - Kaizen (Every Detail Matters)
As contractors build their businesses, it is important to look at every detail from the first meeting with a potential customer through winning and building the project. This same attention to detail also applies to supporting operations and talent.
Incentive Compensation for Contractors - Risks
The highest risk with any incentive program is the lack of a well thought out and systematic approach to either administering or implementing the program.
Business Operating System
Contractors must have a clear vision with specific goals. It is the strength of the business operating layer of their companies that will keep them on track to achieve those goals.