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Systems Journey
These are the best of times and the worst of times. Lots of leads, lots of projects but not enough staff, difficulty getting overbooked subs when you want them and even some material shortages. It's likely that everyone in your company is feeling stressed and stretched. What's the answer?
A key part of the answer is greater systematization of your work process - which will reduce on-the-spot decision-making, reduce training time, create predictable delivery, free up owner time, clarify who's responsible for what task and generally reduce errors. That's the good news. The bad news is that you and your staff need to free up a couple of hours each week from working IN your company so that you can work ON your company. And you might find it frustrating to learn that systematization is a process, a journey that never ends. You will get the basics in place and then be tinkering — if you're smart — with improvements forever.
A system is simply a standardized process for creating consistent results by insuring that the same things are done the same way every time. Your systems answer the question "what is the company way to do this?" Much of what distinguishes your company from the next is your operating system. For instance, let's take your change order process. Here are just a few of the questions that get answered by your standardized process:
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Do we even have change orders? Do we charge extra for changes to the specs?
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Are they written?
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What format are they written in?
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What if there is no additional cost? What if there is a credit?
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Who is responsible for writing, pricing, getting the homeowner okay on the change order?
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Do others have responsibility for notifying that change order generator that the owner is considering a change?
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How do we collect the extra money and refund the credit?
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Do we charge to generate a change order? Is there an administrative fee?
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How does the bookkeeper know there is a change order to the contract?
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Do we include the impact changes make on job schedule in our notification of the owner?
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How do we get information on approved change orders to the field, subs, suppliers?
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How do we get broken down change order cost information into our job cost system?
Most major systems (such as the change order example) can be broken down into manageable sub-systems. For instance you might decide that just getting all changes documented in written form is the first step. You'll decide what that form will be, how many copies will be needed, who will handle it and then train everyone. And, very importantly, you then want to give folks time to make it a habit before the next part is designed. Once that is done, you can add additional steps to the system.
Here are the 9 key steps to designing a new system or improving an old one:
1. Assemble the appropriate team. As owner, don't write systems. Get those who have to deal with them to design a system that will work.
2. Decide what snags, problems we want the system to solve. What is the goal of the system if it works perfectly?
3. Review how you now handle the tasks you are trying to better systematize. Decide what is working and what is tripping you up.
4. Research how others are handling the process. You may have contractor buddies you can call, ask on message boards, check out articles, books, and your local association resources. Since your employees have worked a myriad of other jobs, they may know how other companies have successfully handled the problem area.
5. Brainstorm the system the team thinks will best achieve your goal and work for the client.
6. Test it on a small scale (one job?) and get feedback as to how it works.
7. Rework/redesign the process to eliminate any snags.
8. Implement across the board as "the company way."
9. Reinforce/reward/discipline the system into full usage.
Having slain that dragon, you are now ready to hunt and slay the next unruly area of your company with your strongest weaponry -- your ability to develop and implement systems.
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Remodelers Advantage Inc.
535 Main Street, Suite 211
Laurel, MD 20707
ofc: 301-490-5620
fax: 301-498-6869
Info@RemodelersAdvantage.com