Recently, members of the Schneider Downs Construction Industry Group attended the National Industry Conference in Las Vegas.
The conference encompassed a wide range of topics from auditing, tax, industry trends and etc. One particular session I attended was titled “Achieving More Intellectual Construction through Data Analysis.” Its emphasis was that with experience and data, your organization can make better decisions.
Here is the workflow and descriptions demonstrated in this course:
- Analyze the situation – What are the objectives of the decision and the data? An important note is to consider what improvements would look like.
- Benchmark – Start internally with historical data rather than using external data. Identify the best in class in your organization.
- External data – Look for organizations that provide benchmark data. Be cautious, to ensure that you are comparing comparable data and size.
- Set key performance indicators (KPI) – Use and teach them as part of your financial data. Integrate them into your evaluation and assessment.
- Process – Make it a routine to have the data easily assessable and take action.
From this format, one can establish a wide range of KPI such as:
- Monthly forecast
- Profit by PM, region, job size
- Labor productivity, efficiency
- A/R collections by PM
- A/P payments by PM
I think this a good start as the basis to look at your organization’s data to identify opportunities.
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