Profitability Trends

When you are looking at your scoreboard, remember that industry average benchmarks and single points in time only tell part of the story.

D. Brown Management Profile Picture
Share

When you are looking at your scoreboard, remember that industry average benchmarks and single points in time only tell part of the story.

Scoreboard: Invoice and Graph representing Company Profitability and Trends.

Just like physical training, what really matters for your personal health is that you are consistently improving.

  • Graph your key metrics over the last five years and look for relationships.
      
  • Analyze your data and look for outliers to help the trends make more sense. For example, did you have one super good or bad job in a year that completely skewed the metrics?

  • Be cautious not to over-rationalize “outliers.” If you have a bad job every year, remember that is more likely to be part of the trend rather than due to an outlier. For example, Motorola had something like 24 consecutive quarters of “one-time” expenses. If they occur that consistently, they are regular expenses and not one-time expenses. Also, Motorola is no longer around. 
     
  • What do those metric trends look like if you project them another 2-3 years into the future?

  • Which metrics are trending in the right direction?  

  • Which metrics can you improve?  How?  


Want to talk about it? Contact us for a conversation.




Management and Leadership (Similarities and Key Differences)
A growing contractor requires both great leadership (right direction) and great management (right actions). The creativity required to attract, motivate, develop, and retain people are where management and leadership intersect.
Planning for the Continued Decline of the Deep Expertise Age Band in Construction
Strategies and tactics for contractors to thrive despite the 25% decline in the "Deep Expertise" age band between 2015 and 2030. There are no magic bullets but there are proven processes that have been used before.
Management System Improvements (4 Interlinked Phases)
Many improvements fall short of expectations because steps are skipped in the earlier phases. Following these four phases will result in faster overall adoption of the changes, better outcomes, and most importantly, development of the team.