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.




Project Value Stream (PVS) - The Extended View
The degree to which contractors understand and fully integrate their Project Value Stream (PVS) internally and externally determines their ability to grow sustainably and profitably.
Rockstars, M&M's, Safety, and Contractor Growth
As projects and contractors grow in size and complexity, it is impossible for leaders to be everywhere and see everything, yet they are 100% accountable for the outcomes. Leverage simple indicators like a rockstar to quickly identify areas of concern.
Communicating as a Leader
Leadership is about the ability to influence and align people. And that is largely about effective communication and consistent actions.