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Growth Strategies for Professional Contractors
Using technology to Drive Growth and profit
Presented by Rob Johnson
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Who Is Sage?
Sage is the business management software company truly focused on the
needs, challenges, and dreams of small and medium-sized companies.
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Key Industries Sage ServesIn North America
Manufacturing Distribution Real Estate
HealthcareNon-ProfitConstruction
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Impact on Revenue
• Fewer jobs to bid
• Lower margins on jobs
• Increased competition
• Customers go under
• Or, seek cheaper alternatives
• Or, Defer work
Impact on Cost
• AR gets stretched
• Bad debt goes up
• Cost of Sales go up
• Inventory turns go down
• Inventory write-offs go up
• Equipment sits idle
• Employee morale goes down
The ‘downturn’ impacts business
How can technology drive growth & profitability?
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So what, and who cares?
How can
technology improve my business performance?
Profits
Costs
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McKinsey: The Impact of a 1% Improvement
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Fixed Costs Variable costs Volume Price
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Operations
• Removes redundant data entry
• Shortens the timeframe to turn data into useful information for management.
• Reduces printing time and costs
• Improves workflow velocity
• Minimizes mistakes
• Improves employee productivity, performance, and job satisfaction
How can technology help my business?
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How can technology help my business?
People
• Employees are more productive and profitable.
• Higher job satisfaction reduces turnover.
• Tech driven innovation lowers accident rate.
• Fewer ‘human error’ mistakes
• Allows more ‘effective time’, as apposed to ‘non-effective time’
• HR & compliance issues
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Money
• Greater visibility into cash flow
• Better risk management
• Bonding
• Process payables faster
• Shorten time to bill and get paid
• Growth in revenue without growing cost
• Manage costs better
• Easier to analyze job performance
How can technology help my business?
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Marketing• Provide better image of
organization• Better communication with
customers• Execute marketing campaigns• Develop new markets• Reach more targeted
customers • Better analyze efficiency and
effectiveness of marketing activities
• Improve visibility into customer
How can technology help my business?
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Sales
• Win more work
• Win better work
• Improve personal productivity of estimators/salespeople
• Develop consistent processes across organization
• Forecast potential & backlog opportunities
• Win/Loss Scorecard analysis
How can technology help my business?
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Customers
• Communicate more effectively
• Make it easier for them to do business with you
• Improve reaction times to client issues
• Standardize customer interaction processes
• Centralize all customer contacts into a central location
• Classify, profile and analyze customers
How can technology help my business?
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Leadership & Management• Standardize aligned goals• Reporting ‘best in class’ metrics• Company identified ‘goal
metrics’• Improved ability to
communicate strategy • Better use of company
resources• Better decision making;• More efficient use of time by
making facilities available for longer working hours
• Allows for office decentralization so as to reduce rental costs.
Journal of Construction Research, Vol. 6, No. 1 (2005) 1{13 c World Scientic Publishing Company IS IT TRAINING IN CONSTRUCTION INDUSTRY USEFUL?
How can technology help my business?
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“Adversity is a fact of life. It can't be controlled.
What we can control is how we respond to it.”
Author Unknown
Famous quote
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You have a choice
• Hunker down
• Shed costs
• Don’t spend a dime
• Ride it out
• Hope for a miracle
• Look for new markets & opportunities
• Buy marketshare
• Go on a corporate diet
• Upgrade tech
• Prepare for the upturn
• Sharpen the saw
OR
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1. Perform an technology audit
2. Implement a paperless environment
3. Apply technology to strategy
4. Get Mobile
5. Ramp up Business Development
Five Things you can do
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1. Do people actually use the information?2. Where are the redundant data
processes?3. Is everyone in the organization properly
trained?4. What productivity tools could be
implemented?5. Where can we use technology to
innovate – and create differentiation?6. How do we improve our customer
connection?7. How do we reduce drag in operations?8. How do we improve our ‘time to
decision?’9. How do we reduce risk?
Perform a Technology Audit
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Get more value out of your current IT investment
Improve your employee performance
Improve competitiveness of the organization
Technology Audit - ROI11
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Implement a Paperless Environment
• Automate your Invoice processing
• Implement Document Imaging
• On-screen take-off
• Electronic RFI’s, RFP’s, P.O.’s, etc
• Electronic data warehousing
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Paperless Invoice Processing
Your BusinessRules
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Paperless –Return on Investment Improves operational velocity
Improves A/P approval turn-around time
Bill customers sooner
Approvers save time and gain control
Easier audits
No lost or mis-filed invoices
No photocopying
No overnight shipping
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Strategy Execution
“Knowing how to plan and execute, while overcoming ‘today’s surprises,’ is the most foundational capability any organization can have.”
- Gary Harpst
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I.DECIDEWHAT’S
IMPORTANT
Strategy
II.SET GOALSTHAT LEAD
Plan
III.ALIGN
SYSTEMS
Organize
IV.WORK
THE PLAN
Execute
V.INNOVATE
PURPOSEFULLY
Innovate
VI.STEPBACK
Learn
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Six DisciplinesSix Disciplines
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33
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The Problem with Strategy Execution
You consider your health issues and you determine that doing nothing could result in the following;
• Lack of energy• Poor Self-esteem • Fear of High School reunions• Possible health complications
You’re this one
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27
33 You buy a treadmill
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What Happens Next? Not Much
Actually, there is no R in the Return on Investment in technology if you don’t actually use it.
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"A half-baked strategy well executed will be superior to that
marvelous strategy that isn't executed very well."
--Allan Gilmour, vice chairman, Ford Motor Co.
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Etrak 700 series treadmill horizon - $800 (readville)
Date: 2009-03-04, 3:57PM EST
etrak 700 series horizon bearly usedlike new $800 cash only we aremoving and dont have the room toexpensive to give/through awaygreat investment for someone whocant get out to exsersize 1000-1200at dicks sportung goods
again great condition never had aproblem have more pics if need be10 incline 10 speed awesomeworkout mp3 / ipod ready built inspeakers
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NordicTrack E3800 Treadmill - $900 (Tyngsboro)
Date: 2009-03-03, 2:10PM EST
Gym Quality treadmill,
Computerized Workouts, Pulse
Sensor, Aromatherapy Bottle
Holder, Water Bottle Holder,
Book Holder, Fan, Key/Clip,
Calorie Counter, Distance
Display, Speed, Grade %
Time/Pace, And much more,
Like New. Hardly Used
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Six Disciplines Program Components
1. Repeatable Methodology
2. Accountability Coaching
3. Systems/technology
4. Shared Learning
RepeatableMethodology
Accountability Coaching
Execution System
Shared Learning
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Six DisciplinesSix Disciplines
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Go mobile Direct field access to update
information, approve invoices, bill customers, streamlines processes
Facilitate Customer Self-service reduces costs
GPS improves fleet management
Handheld access for job and time costing reduces errors & saves time.
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Mobility applied in construction
Project Management
o Capture field notes on electronic floor plans and distribute the information in real-time to all involved
o Streamline work list, punch list and other field processes to increase productivity and enhance work quality
Collaboration
o Enables effective and continual communication among owners, contractors, and architects, crucial to complete projects on time and within budget
o Problems that took days and weeks to resolve now are cleared up within minutes
Supply Management
o Monitor construction materials continuously to prevent supply shortages and associated project delays
Risk Management
o Reduce litigation risk through standardized documentation including field reports, safety inspections, work lists, punch lists, schedule updates and many other critical field activities
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Ramp up business development
• Get a CRM system– Automate your marketing programs
– Improve your sales effectiveness
– Reduce ‘time to close’
– Reduce errors
– Track customers information
• Get all over the WEB
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• Focus your greatest strengths on your highest potential opportunities
• Define and blueprint your ‘ideal customer’
– Demographic
– Geographic
– Psychographic
SIC Annual Geographic Construction Ownership Associations CPACode Revenue footprint type Group Firm
Develop a niche’55
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Improve your visibility• Create an outreach
program. • Develop a in-reach
program. • Expand your web
presence.
Get your website noticed– Website Grader:
www.websitegrader.com– SEO - Duct Tape Marketing
Local Profilewww.ducttapemarketing.co
m
Give them a reason to come back– RSS feeds– Zift Solutions:
www.ziftsolutions.com– Blogs: www.technorati.com
Create online networking community
www.linkedin.com
55
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Final Thought
• Technology is a lot like a treadmill. Huge ROI potential, but you actually have to use it.
• Invest in an Technology Audit
• Focus on improving what you already own.
• Invest in strategy execution
• Ramp up business development
• Look for additional technology that will support your strategy, and you’ll implement.
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Next Steps
• To get the Presentation, go to: www.linkedin.com/in/robjohnson38
• Go to www.u-s-i.com and request a technology audit.
• Go to www.sixdisciplines.com and buy a copy of Execution Revolution