Competency and Compensation

A large part of sustainable growth for contractors is being able to effectively leverage people with a narrower set of skills to still deliver the same level of value-add to the customer.

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This support structure is called “Enabling Bureaucracy” and is a combination of management time, control systems, QA/QC, workflows, training, etc.

Leadership Tools: Graph representing Value-Add and Compensation with Quantity of people in the workforce, ability to manage ambiguity, and skill level and execution.

As contractors grow they need to refine their organizational structures, workflows, job descriptions  and their talent processes to support this growth.

These support structures must be built over time and integrated with the contractor’s growth strategy.  Once effectively in place these support structures will produce a more scalable organization that can actually deliver the same value-add to the customer at a lower total cost providing a competitive advantage. 

These systems are slow, painful and costly to put into place.  The recruiting focus of a contractor must be in alignment with the levels of support structures they have in place.  Netflix defines this quite well in their culture slide deck and book.  

Are your support structure capabilities and recruiting in alignment?  

If not there will be excessive stress on the team combined with lower profitability.  This just means you are at one of the inflection points on the business growth cycle.




Four Levels of Integration and Optimization
Operational excellence must be a major component of every contractor’s strategy and baked into their daily behaviors. Optimizing at each of the four major layers requires different levels of thinking, technology, and time span.
Cash Flow Myth 4 - That's What Our Bank and Credit Line are For
Fact: Banks will only finance a portion of your cash flow needs. They will have specific requirements related to how much working capital you need to have invested of your own.
Cash Flow Tip 15 - Contractual Compliance
Compliance with Contractual Requirements to avoid getting your payments held. Each contract, including the specifications, will have specific requirements for what you need to do each billing cycle to get paid.