If It’s Done for the Right Reasons
Over the past few weeks, we’ve been talking about business-building tools for construction companies. We’ve discussed how good tools and systems help us know what’s going on in our businesses.
The focus has been on what we currently call the Production Tracker and how it has changed over the years. What started as a simple tool for numbering construction projects eventually expanded into tracking projects all the way through production.
Change can be good if it’s done for the right reasons.
Sometimes changes need to be made to improve our tools. Other times, those changes can take a tool beyond what it was originally designed to do. That is why it is important to periodically and intentionally step back and review your tools and processes. Otherwise, you are just doing things because “that’s the way we’ve always done it.”
Doing business that way can leave you operating from the bottom of a rut.
The changes we made to the original Job List were good and necessary. The problem wasn’t the information we were adding, but that one tool was being asked to do the work of two.
Last week I shared that a good tool should have one primary purpose. Splitting the Job List into two separate tools was putting that principle into practice.
The goal wasn’t to create more work, but to create two better tools. One tool helps us understand how we’re doing before a project begins. The other helps us understand what’s happening after the project is signed.
The Proposal Tracker
The first tool is the Proposal Tracker.
This tool focuses on everything that happens before a proposal becomes a project. Instead of trying to manage the entire life of a job, it concentrates on the proposal process.
That allows us to answer questions like:
- How many proposals are we writing?
- What percentage of those proposals become projects?
- What is our average proposal amount?
- How many change orders are being proposed and approved?
Having this information in one place gives us a much clearer picture of how the sales side of our business is performing.
It tracks information such as:
- Proposal/Project number
- Customer name and project description
- Proposal amount
- Proposal signed or not
- Proposed and signed change orders
- Date signed
- Average proposal amount
The Production Tracker
Once the customer says “yes” and the proposal is signed, the Production Tracker takes over.
At this point, we’re no longer asking sales questions. We’re asking production questions.
- How much work is currently under contract?
- How much has been collected?
- How much work is still in production?
- When should projects be completed?
These are completely different questions, which is why they deserve a separate tool.
The Production Tracker includes information such as:
- Project number
- Customer name and project description
- Signed project amount
- Dollars collected
- Remaining balance
- Projected completion date
- Average job amount
Although each tool has its own primary purpose, they work together as one complete system. The Proposal Tracker helps us understand what’s happening before the sale. The Production Tracker helps us understand what’s happening after the sale. Together they provide a much clearer picture of what is happening throughout the business.
Every system should be reviewed from time to time. The question isn’t just, “Is this system working?” A better question is, “Is this system still accomplishing the job it was designed to do?”
For us, the answer was no.
Each tool now does exactly what it was designed to do and that’s what makes the whole system stronger. Will these tools continue to change? Probably. 😊
Change is inevitable.
The important thing in BUILDing your best business is to Be aware of where you are and your current situation. Then take the time to Understand what needs to change. Once you have that understanding, take Intentional action. Otherwise, nothing will change. As you move forward, continue to Learn and improve. That’s how you move closer to living the Dream.
Every business is different, and every business needs tools that fit the way it operates. If you have questions about these tools—or any others—we’d be happy to help. Feel free to schedule a free meeting or check out the tools already available in the Business BUILDing Toolbox.
This is us helping you BUILD your DREAM business!