Key Performance Indicators Workbook

Transcription

1 Key Performance Indicators Workbook SMACNA Page 1 of 9

2 KEY PERFORMANCE INDICATORS MAXIM CONSULTING GROUP OVERVIEW OBJECTIVES Identify ways to integrate people, process, and technology Identify best practices Develop long term solutions with scalability, flexibility, and significant business impact Build value for your organization Page 2 of 9

3 BEST PRACTICES Creating competitive advantage for contractors Define Best in Class Competitive landscape Increasing global competition Volume orientation Excess capacity Poor value propositions and lack of differentiation Escalating complexity and sophistication CASH FLOW Metric Cash receipts less cash disbursements Represents Cash Position of project Project Cash Position rolled up to Business Unit or Enterprise level LABOR PRODUCTIVITY Labor Productivity = Earned Hours / Actual Hours > 1, beating estimate < 1, behind estimate Value Provides insight to underperforming projects and tasks Supports cost to complete forecasting CPM MANAGEMENT Key indicators Schedule variance in days Variance as a percent of remaining schedule Performance against plan Proactive vs. reactive Identification of opportunities and risks Coordination of trades Mitigation of claims Page 3 of 9

4 CPM MANAGEMENT (CONTINUED) What value does it provide? Organizational credibility Communication and collaboration Effective resource utilization Actionable opportunities Identify, quantify and communicate changing conditions to all project stakeholders Make better project decisions Competitive advantage CASH DEMAND Calculation components Cash collected or provided by operations Why is this important to you? Best of class contractors are liquid Key component of financial management Superior project management produces strong cash flow WORK IN PROCESS (WIP) Page 4 of 9

5 WORK IN PROCESS (WIP) (CONTINUED) Key elements to monitor Margin preservation % complete Change orders Unexecuted commitments Key Metrics Margin Preservation Cumulative variance Period variance % Complete Cash billed and collected less cash paid to date Change Orders Costs incurred on pending changes Unexecuted Commitments Buyout status Tool to control the outcome of our projects Identify project cash flows Understand and capture impacts associated with change orders Buy out of project risk Identify actionable items What value does it provide? Stability in profit margins Improved cash flow Risk mitigation Increased stakeholder satisfaction Tool to control and predict outcome of projects BACKLOG Metrics Contractual revenue less earned revenue Contractual margin less earned margin Months of SG&A Page 5 of 9

6 BACKLOG (CONTINUED) Pipeline Execution of business plan Monitor margin performance Hit rates Impact on pricing decisions Resource management What value does it provide? Project pricing implications Tracking business plan vs. actual Resource management Strategic project acquisition Proactive management of business PROJECT DELIVERY SCORECARD Qualitative measures Provide a weighted scorecard Feedback on critical success factors Identification of opportunities for improvement What value does it provide? Opportunity for self evaluation Feedback to senior management A way to measure our qualitative performance Identify compliance with processes and procedures What value does it provide? Improved productivity Better quality Safer projects Employee retention Performance metrics Training and development opportunities Page 6 of 9

7 KEY PERFORMANCE MEASURES Cash Demand CPM Management WIP Backlog Project Delivery Scorecard WHAT DO I DO? Better Solution Identify internal champion Identify needs Use outside resources Fully integrated business solution Typical Solution Legacy Software Boxed Software Disparate systems Excel spreadsheets CONCLUSION Integration of people, process and technology Long-term endeavor Commitment to continuous training Capital investment Providing people with the necessary time An integrated solution and commitment offers a higher return Page 7 of 9

8 SPEAKER BIO Michael J. McLin Michael McLin Managing Director 100 Fillmore Street Fifth Floor Denver, CO Tel: Mob: Fax: Professional History Navigant Consulting Inc., Director ( ) FMI Corporation, Consulting Team Leader ( ) Fischbach and Moore Electric, Inc. Project Executive ( ) Sturgeon Electric Company ( ) Education Masters of Business Administration Boston University Graduate School of Management BS in Construction Management Colorado State University, Fort Collins, CO Michael McLin is the Managing Director at Maxim Consulting Group responsible for leading the business and guiding the strategic direction. Michael works with construction related firms of all sizes to evaluate business practices and assist with management challenges. Having worked in the industry, Michael has developed a practical and objective perspective to solving business challenges. Areas of specialization include: organizational assessments, strategic planning, project execution, productivity improvement, prefabrication, peer groups, and training programs. Mr. McLin is a nationally recognized, dynamic public speaker and published author. Michael is also an experienced peer group manager having consistently run groups whose membership represents some of the largest, most sophisticated contractors in the U.S. He has led electrical, mechanical, dry wall, fire protection, and heavy-civil and general contractor peer groups - both union and non-union. With expertise in many facets of the business, Michael is adept at utilizing tools and analysis available to the peer groups to identify opportunities and challenges within an organization. His structured approach to running peer groups ensures all members have an opportunity to learn and grow. PROFESSIONAL EXPERIENCE Mr. McLin s experience in the construction industry spans nearly two decades. He has worked for various contractors as a laborer, operator, CDL driver, foreman, estimator, asset manager, assistant project manager, project manager, and project executive. His project experience includes some of the most complex construction projects undertaken in the U.S. with nearly eight years on Boston s $14.6BB Central Artery / Tunnel Project. Page 8 of 9

9 Stephane McShane Stephane McShane Associate Director 100 Fillmore Street Fifth Floor Denver, CO Tel: Mob: Fax: Professional History Maxim Consulting Group Associate Director (2011-current) Turnupseed Electric Division Manager ( ) A-C Electric Company Inc. Division Manager ( ) Gates Electric Company ( ) Stephane McShane is an Associate Director at Maxim Consulting Group responsible for the evaluation and implementation processes with our clients. Stephane works with construction related firms of all sizes to evaluate business practices and assist with management challenges. With a large depth of experience working in the construction industry, Stephane is keenly aware of the business and, most specifically, operational challenges firms' face. Her areas of expertise include: Leadership development, organizational assessments, strategic planning, project execution, business development, productivity improvement, and training programs. Mrs. McShane is an extremely motivational and inspirational speaker, mentor, and teacher. Her ability to create confidence and desire among your work groups is extremely effective. PROFESSIONAL EXPERIENCE Stephane possesses the rare combination of talent from being in the field as an apprentice, electrician, foreman, then working her way through each operational chair within a successful electrical construction firm. Her ability and drive defined her to be "best in class" at each position held. This is what makes her so effective at operational and organizational assessments today. There isn't a position operationally that she hasn't successfully conquered from being an estimating trainee through executive management. She has led her teams to become the undisputed leaders in their markets. Page 9 of 9