| Summer 2006 |
Construction Advisor
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Benchmarking Basics:
Keys To Improving Contractor Profitability
Benchmarking is a tool that can be effective in assisting an
organization to obtain a greater understanding of its processes and to
achieve better performance. Benchmarking uses comparative analysis to do
the following:
- Measure the effectiveness of the processes an organization uses in its
activities, and
- Identify areas best targeted for improvement
Repetitive benchmarking shows a company how effective its improvement is over
time. Benchmarking shows that companies benchmarked in the bottom 25% are
achieving profit levels at one-tenth of those achieved by the top 25%. The key
is to identify the critical success factors. In the construction industry, these
are cost, scheduling, safety, and quality.
We can help companies develop benchmarks in these areas that are effective in
improving a company's bottom line.
Editor's Note: A well-run collections plan makes a significant
contribution to positive cash flow. Bober, Markey,
Fedorovich & Company frequently works with clients on matters such as
this. Please call your partner / manager contact if you would like assistance in
this area.
The Construction Advisor is produced
quarterly by Bober, Markey, Fedorovich
& Company's Construction
Services Team. If you would like additional information about the services that
we can provide to construction companies and contractors, please call or
email our team leader, Dale A. Ruther, CPA, CIT at (330) 762-9785 or dale@bobermarkey.com.
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