RESULTS
Business Results
The following measures provide the information needed to determine our level of success. Cash flow, profit margins, and margin performance are included in bullet number one below.
- Identify Gross and Net Margins: review financial success builder by builder, job by job, using job cost system.
- Low overhead strategy measures: #of homes per crew; # of homes per super; $ volume per employee; net target of double digits.
- Low cycle time strategy measures: identify touch time for each trade and set goals that deliver reduced cycle time.
- High quality: meet or exceed QA standards inspection 1st pass 100%.
- On-time performance: start and complete on-time, every time; no variation.
- Clean & safe jobsite: 5’ perimeter clean prior to start; visual inspection by BBS super (random sampling); clean jobsite at day’s end; visually inspect as many as possible.
- High yield productivity: trend charts on cycle time by crew, home, trade.
- Employee satisfaction: develop an informal “commitment” check; develop a formal annual employee survey.
- Material usage: audit material per plan and adjust accordingly. Production and Estimating focus.
- Competitive advantage: measure jobs won vs. jobs lost.
- Waste reduction measure: measure material usage by crew and product and set targets to reduce annually.
Reviewing performance using graphs with a 12-month trailing layout in all areas possible will help us identify trends. Identifying trends will help us determine normal business cycles versus special cause situations that require a different action to improve our results.
We are currently developing a scorecard layout to effectively communicate our measurements to the Bundled Builder Solutions, Inc team and our customers. We will use this scorecard to identify trends today that we can improve but also to capitalize on successful trends for future performance potential.