Construction Business Owner, February 2008

One measure of success (there are many measures both financial and non-financial) is how well you do relative to others.  If you are in the top 5 percent of the field being measured in a positive statistic, by any metric, then you are considered best of class.  In order for contractors to be considered best of class, they must put the right technology to work in their business.

When should you consider creating a technology budget?  You should be creating a technology budget each and every year.  Whether we work in the construction business, the manufacturing business, professional services, etc., is irrelevant.  The fact is, we all are in “business.” All business operates on a foundation of many base systems that bridge all sectors.  One of those base systems is the technology used in our operations.  A strong business will invest significantly each and every year in technology.  The real challenge is first identifying which technologies our business needs, which specific software packages are best for those processes and at what point we need to incorporate that technology into our company’s operations.

Determine What the Business Needs

When we think of budgeting, we think of determining the dollars and cents of the matter in question.  Before we can determine the financial considerations, we need to first identify what the business needs.  Start with a management team meeting.  Get everyone around a table and share different perspectives regarding the needs of all users within the organization.  In addition to knowing what they each personally need, your management team may, often times, be aware of what your peers and competitors are successfully using.  It’s also good to know what your peers and competitors are using with little to no success and avoid those solutions. 

Interacting with your team members will also serve you well when your company executes any plans, since they will have been part of the process from the very beginning.  In addition to staff meetings, attend industry conferences (occasionally there are technology specific construction industry conferences), and poll other contractors regarding the systems they are using.  Most every construction industry conference is well attended by vendors selling a variety of applications to meet the various needs of your business.  If you cannot attend, consider sending your next in charge on either the operations or financial side of your business.  In addition to being able to quickly gain a general understanding of what is available in the marketplace, it’s a great opportunity to network with other contractors and learn what is working for them.  

Plan Appropriately

Once you’ve identified a specific need, remember with systems implementations, time is your friend.  These undertakings are significant, usually requiring your in-house personnel to take on important roles, tasks and responsibilities in addition to their normal day-to-day responsibilities.  Planning, as with many initiatives, is critical to the success of any technology implementation.  In order to effectively plan, sufficient time must be allowed and timelines created to ensure proper execution and allow for contingencies.  I would suggest you begin the process of investigation solutions to meet your various needs at least a year before you want to go “live” with a system.

 

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