Allocation of Management Resources

Most new initiatives that contractors try often fall short of expectations due to poor management time allocation during start-up.

D. Brown Management Profile Picture
Share

We work with a lot of contractors and rarely see truly bad ideas or teams that truly can’t execute.  

Management Tools: Time Allocation for New Initiatives.

The more common problem is usually management resource constraints; especially at the critical executive leadership level.  When a new idea (or problem) comes up the best management talent can see both the mountain top, the mountain and the path to success very clearly.  

Moving from a new idea into a sustainable system managed mostly by others is the challenge.  Make sure you prioritize management time effectively on the initiatives that will have the biggest impact.   

  • Allocate enough time for truly developing the concept ensuring that the team that will be start-up and long-term management are fully in alignment.  This ALWAYS takes longer than expected
  • Allocate 2-4X that much time for heavily managing the PDCA cycle in the first 3-6 months spending a lot more time Planning, Checking and Adjusting than Doing.  This will ensure smooth scaling and easier routine management.

Learn more about how we help teams learn to execute better 




Making a Contractor Less Risky
There are two major things that will control risk and variability for the ownership.
Cash Flow - 18 Tips to Improve Cash Flow Scoreboard
Construction contractors can use these 18 specific tips to improve their cash flow scoreboard.
Valuation Math - Growth Pays
All other factors being equal, a contractor that can accelerate growth after the purchase will -- in most cases -- be able to pay for the business quicker.